Climate law passes Senate
420 billion USD earmarked
The US Senate on Sunday approved a gigantic package of measures worth 430 billion dollars. In the coming years, this money will mainly be invested in climate measures. Medicines will also become cheaper and there will be tax advantages for companies with climate-friendly initiatives.
The law is officially called ‘the Inflation Reduction Act’. Among other things, the US will use the money to reduce CO2 emissions by 40 percent by 2030. In addition, Americans will pay less for necessary medicines and energy.
Also, Americans can apply for a subsidy for the purchase of solar panels and heat pumps. Companies that invest in clean energy and other climate-friendly initiatives can count on tax benefits.
After two days of debate, the Senators finally came to a vote on Sunday. It was fifty to fifty in the hundred-member Senate, but the vote of Vice President Kamala Harris was decisive.
“With this package, we are taking a historic step for the American people. It is time to look ahead to the future, and we do so with this decision,” said Chuck Schumer, the leader of the Democratic group in the Senate.
The bill must pass the House of Representatives one more time, but that is a formality. The Democrats have a majority there and will approve the proposal submitted by their party on Friday.
The passage of the bill in the Senate is a major victory for Democrats and president Joe Biden with the midterm elections just around the corner. Democrats will lose their majority in the House in November.