On The Money — Dems’ big bill makes it out of Congress

Democrats just passed their mammoth tax, climate and health care bill, advancing key parts of President Biden’s agenda ahead of the critical November elections. We’ll look at just what’s inside the bill, a recent ruling on an Obama-era freeze on coal leasing on public lands, and more. 

But first, where will you find Schumer, sunflowers and a supermoon altogether? Check out The Hill’s photos of the week to find out. 

Welcome to On The Money, your nightly guide to everything affecting your bills, bank account and bottom line. We’re Aris Folley and Karl Evers-Hillstrom. Subscribe here.

Dems pass mammoth climate, tax, health package

House Democrats passed their sweeping tax, climate and health care bill on Friday, sending the $740 billion legislation to President Biden’s desk and securing a significant victory for Democrats less than three months before the midterm elections.

The bill, titled the Inflation Reduction Act, passed the House in a 220-207 party-line vote. Four Republicans did not vote, while every Democrat voted in support. 

• Passage through Congress marks the culmination of more than a year of negotiations among Senate Democrats on a spending package. The legislation will increase taxes on corporations, address climate change and bring down the prices of prescription drugs, all while lowering the deficit.
• The bill offers incentives to businesses and consumers to make cleaner energy choices, including utilizing lower-carbon and carbon-free energy, and it creates new programs that will bolster investments in climate.
• On the health care end, the measure will allow Medicare to negotiate lower prices for 10 high-cost drugs starting in 2026. By 2029, that number is expected to grow to 20 drugs. Additionally, the measure allows caps to be placed on some drug costs, but mainly for Medicare. 

Every Democrat backed the bill, including Rep. Jared Golden (Maine), the only Democrat to oppose an earlier, larger measure approved by the House that was blocked by Manchin in the Senate. He called it “common-sense legislation” and “fiscally responsible” in a statement prior to the vote.  

However, some progressive lawmakers had grumbled about the bill not being as expansive as they had hoped. 

The Hill’s Mychael Schnell breaks it down here. 
 

SEE ALSO: Here’s what’s in the Inflation Reduction Act, the sweeping bill impacting health, climate and taxes 

LEADING THE DAY 

Democrats’ signature economic bill puts $200 billion toward deficit reduction: analysis 

A sprawling Democratic economic package slated to pass Congress this week could contribute to more than $200 billion in cumulative deficit reduction, according to an analysis released by the Penn Wharton Budget Model (PWBM) on Friday. 

The analysis estimates the latest iteration of the bill, which is poised to sail out of the House on Friday after passing the Senate last week, would reduce the country’s non-interest cumulative deficits by $264 billion over the next 10 years.  

• The figure is $16 billion higher than a previous version of the bill, dubbed the Inflation Reduction Act,…