Senate Passes Inflation Reduction Act (Reconciliation Package) >>

August 8th, 2022

Yesterday, the Senate passed a sweeping economic package of Senate Democrats through the budget reconciliation process to combat climate change, address health care costs, and raise taxes on large corporations. The Inflation Reduction Act (Act) cleared the Senate by a vote of 51-50 along party lines with Vice President Kamala Harris casting the tie-breaking vote.

The package, which at times seemed to be completely dead, is the culmination of months of negotiations over President Biden’s domestic policy agenda with Senator Joe Manchin (D-WV).

Over the next decade, the Act is projected to raise more than $700 billion in government revenue, with much of that coming from a 15% minimum tax on large corporations and funds generated by an investment in tax collection efforts at the Internal Revenue Service to catch tax cheats. Other revenue-raising provisions include a 1% tax on stock buybacks and allowing Medicare to negotiate lower prescription drug prices. The Act caps out-of-pocket costs for seniors’ Medicare prescription drugs at $2,000 a year and allows Medicare to negotiate the prices on ten medications.

Specific provisions in the Act to benefit Tribal Nations include:

  • $272.5 million to Native communities for climate resilience and adaptation, including $12.5 million to mitigate drought impacts for Tribes and $10 million for Tribal fish hatcheries;
  • $150 million for Tribal home electrification;
  • $75 million for loans to Tribes for energy development; and
  • $20 billion in loan guarantees for Tribal energy development.

The House will return on Friday, August 12th, to clear the measure and send it to President Biden for his signature.

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