In an unexpected development, Sen. Joe Manchin, DW.Va., on Wednesday reversed his opposition to a broad obstruction-proof bill and announced he will support a package that includes major investments in drug pricing , as well as provisions to address climate change and taxes. about the rich
Manchin announced the deal in a joint statement with Senate Majority Leader Chuck Schumer, D-N.Y., after months of negotiations between the two appeared to break down recently. The deal represents a major breakthrough for elements of President Joe Biden’s agenda that appeared to be almost dead.
“The Inflation Reduction Act of 2022 will make a historic down payment to reduce the deficit to fight inflation, invest in domestic energy production and manufacturing, and reduce carbon emissions by approximately 40 percent by 2030,” Schumer and Manchin said in a statement. “The bill will finally allow Medicare to negotiate prescription drugs and lower health care costs for millions of Americans. Additionally, we have reached an agreement with President Biden and Speaker Pelosi to pass legislation of comprehensive permit reform before the end of this fiscal year. every member of the United States Senate to support this important legislation.”
Joe Manchin during a Senate Appropriations Subcommittee hearing in Washington, April 26, 2022.Greg Nash/Bloomberg via Getty Images
The two Democrats said the text of the agreement will be presented to the Senate floor Wednesday evening “and the full Senate will consider it next week.”
The legislation still needs the support of all 50 Democratic senators to become law, with no hope of winning GOP support. But Manchin, who represents a deeply conservative state, has been the biggest resister of a major bill for months, giving a version of the proposal a strong chance of passing the Senate.
It would also have to pass the House before reaching Biden’s desk.
According to a one-page summary, the bill will include $739 billion in new revenue through a 15% minimum business tax, prescription drug savings, added IRS enforcement and limit called interest tax reduction.
The bill will also include $369 billion in energy security and climate change spending and $64 billion in funding for the Affordable Care Act, for a total of $433 billion in spending.
There will be more than $300 billion in deficit reduction, the one-page summary adds.
In a statement of his own, Manchin refuted suggestions that he misled Democrats or backed away from items he said he would return. Democrats were furious earlier this month when Manchin suggested he would oppose including climate and tax provisions in the deal.
“Regarding my position, I have never, and will never, back away from solving the problems facing the nation we all love,” Manchin said in a statement. “I strongly support the passage of common-sense policies that reduce inflation and focus on the major challenges facing America today and in the future.”
He added: “For too long, the reconciliation debate in Washington has been defined by how it can help Democrats move forward.[‘] political agenda called Rebuild Better. Build Back Better is dead, and instead we have an opportunity to make our country stronger by bringing Americans together.”
