Biden hails $700 billion Senate deal on climate, health, says it will lower deficit

By Michael Hernandez

WASHINGTON (AA) - US President Joe Biden hailed a deal Thursday to secure $700 billion for his top legislative agenda items, while acknowledging it does not include everything he wants but is the "strongest bill" that can reach his desk.

The president said the compromise bill, struck less than 24 hours prior, is "far from perfect," but called it "the most significant legislation in history to tackle the climate crisis and improve our energy security right away," and a "godsend" for American families.

“It will give us the tools to meet the climate goals that we've agreed to by cutting emissions and accelerating clean energy; a huge step forward," he said.

The agreement between Democratic Senator Joe Manchin, who has proven to be a stumbling block for the party on past efforts to pass key legislation, and the Senate leadership has come under fire from Republicans who say it will only exacerbate the US' already-soaring inflation.

Challenging the Republican's election-year messaging, Biden said the bill "will in fact reduce inflationary pressure on the economy."

"It's that will cut your cost of living, and reduce inflation, lowers the deficit and strengthens our economy for the long run as well," he said, adding that it will reduce the federal deficit by $300 billion. "My plea is: put politics aside, get it done."

Biden said the bill would not raise taxes for anyone earning less than $400,000 per year, and would instead require the US' largest corporations to pay a 15% minimum tax.

The bill is all but certain to face strong headwinds from congressional Republicans as it would symbolize a major victory for Biden and Democrats ahead of November's midterm elections. Republicans are hoping to seize on widespread economic discontent to take one or both chambers of Congress currently held by Democrats.

The bill, known as the Inflation Reduction Act of 2022, would put the US on the path to a 40% reduction in carbon emissions by 2030, Manchin and Senate Majority Leader Chuck Schumer announced Wednesday. It would do so by funding a series of energy and climate initiatives.

It would also allow Medicare, the federal health care program for seniors 65 and older, to directly negotiate prescription drug prices and would lower premiums for "millions of Americans" covered by the US' universal health care law, according to a one-page fact sheet.

A Senate vote is expected next week before Congress takes its annual summer recess.