Late yesterday, Senate Majority Leader Sen. Chuck Schumer and conservative Dem Sen. Joe Manchin announced that they had reached a deal on legislation that would fund climate change initiatives, allow Medicare to negotiate on drug prices, and bolster the Affordable Care Act. Calling the legislation (snicker) "The Inflation Reduction Act of 2022" (obviously a sop to inflation-obsessed Manchin), the funding would come from closing loopholes for major corporations and wealthy individuals, without raising taxes on people making $400,000 or less. According to Schumer, the bill would reduce the deficit by $300 billion and cut Federal spending on prescription drugs by $288 billion. Significantly, the $369 billion committed for climate and energy projects could reduce carbon emissions by 40% by 2030. President Biden voiced his support for the legislation, after months of setbacks and Manchin's opposition to Biden's original, broader "Build Back Better" proposal.
Assuming all Senate Democrats support the legislation, the bill would be passed under budget reconciliation rules, which requires a simple majority vote only, and would go back to the House for consideration. The NY Times article reports that Manchin apparently agreed to the deal after getting a concession on a pet project of his:
"One possible clue to Mr. Manchin’s change of heart came in a line of his joint announcement with Mr. Schumer that they had secured a commitment from both Mr. Biden and Speaker Nancy Pelosi of California that Congress would approve a separate measure to address the permitting of energy infrastructure, potentially including natural gas pipelines, before the end of the fiscal year on Sept. 30.
That could ease the way for a project in which Mr. Manchin has taken a personal interest, the Mountain Valley Pipeline, which would transport Appalachian shale gas from West Virginia to Virginia." (our emphasis)
"Inflation Reduction" indeed. But we won't be churlish; if this legislation is enacted, it will represent a landmark achievement for Biden and Dems. Now, if they can just run on that major accomplishment and not blow it.
BONUS: the deal has the added schadenfreude of foiling "Grim Reaper" Moscow Mitch McConnell's pledge to obstruct it in conjunction with the superconductor bill, which passed the Senate yesterday.
(photo: Manchin and Schumer dealing. Patrick Semansky / AP)
