The final vote was 220-207, along party lines. Four Republicans did not vote.
Now that the Democratic-controlled House has passed the bill, it will then go to Biden to be signed into law.
The final passage of the bill marks a historic moment for Democrats and gives the party a chance to achieve long-sought policy goals ahead of the upcoming midterm elections. It comes at a critical time as Democrats struggle to maintain control of a narrow majority in Congress.
It would raise over $700 billion in government revenue over 10 years and spend over $430 billion to reduce carbon emissions and expand health insurance subsidies under the Affordable Care Act, and use the rest of new revenues to reduce the deficit.
The House of Representatives acts after Senate Democrats approved the bill
In the Senate, the bill passed on a final, party-line vote of 51-50, with Vice President Kamala Harris breaking the tie.
Senate Democrats, who control only a narrow 50-seat majority, ultimately stood united to pass the legislation. And they used a special, inaccessible process known as reconciliation to pass the measure without Republican votes.
The passage of the bill in the chamber marked a major milestone for Senate Democrats, who had long hoped to pass a signature legislative package but had struggled for months to reach a deal that had the full support of the caucus. their parliamentary.
The passage in the Senate came after a long stretch of amendment votes known as “vota-a-rama” that lasted nearly 16 hours from late Saturday night to Sunday afternoon.
In the end, Republicans lined up to oppose the bill. Senate Minority Leader Mitch McConnell said in a statement that the bill includes “huge job-killing tax increases” and amounts to “a war on America’s fossil fuel.” The Kentucky Republican said Democrats “don’t care about the priorities of middle-class families.”
How the bill addresses the climate crisis
The nearly $370 billion clean energy and climate package is the largest climate investment in US history and the biggest win for the environmental movement since the historic Clean Air Act.
Analysis by Schumer’s office — as well as multiple independent analyzes — suggest the measure would reduce U.S. carbon emissions by up to 40% by 2030. Strong climate regulations by the Biden administration and action by states would be needed to achieve Biden’s goal of reducing emissions 50% by 2030.
The bill also contains many tax incentives intended to lower the cost of electricity with more renewable sources and encourage more American consumers to switch to electricity to power their homes and vehicles.
Major health care and tax policy in the bill
The bill would empower Medicare to negotiate the prices of some costly drugs administered in doctors’ offices or purchased at pharmacies. The Secretary of Health and Human Services would negotiate the prices of 10 drugs in 2026 and another 15 drugs in 2027 and again in 2028. The number will increase to 20 drugs per year for 2029 and beyond.
The controversial provision is much more limited than what House Democratic leaders have supported in the past. But it would open the door to fulfilling a long-held goal of the party to allow Medicare to use its weight to lower drug costs.
Democrats are also planning to extend extended federal premium subsidies for Obamacare coverage until 2025, a year later than lawmakers recently discussed. That way, they won’t expire until after the 2024 presidential election.
To raise revenue, the bill would impose a minimum tax of 15% on the income that large corporations report to shareholders, known as book income, compared to the Internal Revenue Service. The measure, which would raise $258 billion over a decade, would apply to companies with profits above $1 billion.
Concerned about how the provision would affect some businesses, especially manufacturers, Sinema has suggested she won changes to the Democrats’ plan to restore the way companies can deduct depreciated assets from their taxes. Details remain unclear.
However, Sinema rejected her party’s efforts to tighten the carried interest loophole, which allows investment managers to treat most of their compensation as capital gains and pay a long-term capital gains tax rate of 20% instead of income tax rates of up to 37%.
The provision would have extended the amount of time that investment managers’ profit interest must be held from three years to five years to take advantage of the lower tax rate. Addressing the gap, which would have raised $14 billion over a decade, had been a longtime goal of congressional Democrats.
In its place, a 1% excise tax on corporate stock purchases was added, raising another $74 billion, according to a Democratic aide.
CNN’s Alex Rogers, Ella Nilsen, Tami Luhby, Katie Lobosco and Matt Egan contributed to this report.