US House of Representatives passes Inflation Reduction Act in narrow vote
'It is a resounding victory for America's families starting at their kitchen table,' says Speaker Nancy Pelosi
The US House of Representatives passed the Inflation Reduction Act on Friday along party lines.
The legislation that passed in a 220-207 vote secured a huge win for President Joe Biden and the Democratic party months before the midterm elections in November.
"It is a resounding victory for America's families starting at their kitchen table," House Speaker Nancy Pelosi told House members. "Our Inflation Reduction Act is a robust cost-cutting package that meets the moment, ensuring that our families thrive and that our planet survives."
The Democratic party came together from all sides to praise the bill which addressed a multitude of issues beyond inflation, including taking aggressive action on climate change, lowering medical and prescription drug costs and reducing the national deficit.
The plan includes a record $369 billion in spending on climate change and energy policies projected to slash US carbon emissions by roughly 40% by 2030.
It also allocates $64 billion to reduce health insurance costs by locking in lower premiums under the Affordable Care Act, saving 13 million families an average of $800 per year.
The bill will also cap drug costs at $2,000 and allow the federal government to negotiate lower prices for prescription drugs.
It would be funded by imposing a 15% corporate tax on wealthy corporations. The plan also spends $80 billion to boost the Internal Revenue Service's enforcement and compliance divisions which are expected to yield $124 billion in revenue.
While the measure will not immediately affect rising gas and food prices, it does seek to reduce the deficit by $300 billion in the next 10 years, with total provisions of the bill estimated to raise $737 billion, as well as reduce the overall deficit by nearly $2 trillion in the next two decades.
The bill narrowly passed the Senate in a 50-50 vote with the deciding tie-breaking vote cast by Vice President Kamala Harris.
It now goes to Biden's desk to be signed into law.
