The U.S. House passed a $740 billion package Friday that raises taxes on large businesses, funds green energy initiatives, allows the federal government to set caps on certain prescription drugs, and doubles the size of the Internal Revenue Service to expand audits.
The measure, dubbed the Inflation Reduction Act, passed strictly along party lines, 220-207, with Democrats in support and Republicans opposed. In its analysis, the nonpartisan Penn Wharton Budget Model reported it would actually increase inflationary price hikes over the next two years.
The Senate added amendments to the measure on Sunday before passing it along party lines and sending it back to the house for Friday’s concurrence vote. The bill now heads to President Joe Biden, who’s said he would sign it into law.
This “is a robust cost-cutting package that meets the moment, ensuring that our families survive and that our planet survives,” House Speaker Nancy Pelosi, D-California, said moments before the vote.