Senator Joe Manchin (D-W.Va.) and Senate Majority Leader Chuck Schumer (D-N.Y) have come to an agreement on a climate, health, and tax package.
The deal struck on Wednesday (July 27) came months after Manchin vehemently shot down any chance that reaching a deal would be possible, citing concerns over inflation as his reasoning.
However, Wednesday’s deal also represents a fraction of the once $3 trillion package envisioned by liberal Democrats but still supplies House and Senate Democrats with enough fuel to tout it as a major win. Considering the Senate and House majorities are on the line, for Democrats, the package — agreed to 3 months before the midterms — could help soften the blow.
The deal forms part of a budget reconciliation package that Senate Democrats intend to bring to the Senate floor next week, where it will pass on a party-line, circumventing a GOP filibuster.
As part of the deal, $369 billion will be invested in energy-focused climate programs over the next 10 years, with $300 billion going toward reducing the deficit.
In a joint statement announcing the deal, Schumer and Manchin wrote, “After many months of negotiations, we have finalized legislative text that will invest approximately $300 billion in deficit reduction and $369.75 billion in energy
security and climate change programs over the next ten years.”
They added that the investments would be paid for by “closing tax loopholes on wealthy individuals and corporations.”
The deal — according to the statement by Manchin and Schumer — should reduce emissions by 40 percent over the next 8 years.
The plan is to raise $739 billion in new revenue through a 15 percent corporate minimum tax, empowering Medicare to negotiate drug prices, strengthening IRS enforcement law, and closing the carried interest loophole for money managers.