Following nearly a year of negotiations among Congressional Democrats and the White House, the Inflation Reduction Act of 2022 (IRA) passed in the U.S. Senate this afternoon by a vote of 50 to 50 with the Vice President breaking the tie. It will now move to the House where Speaker Pelosi has announced it will be considered on Friday, August 12th. The package was initially proposed as the Build Back Better Act, with the original proposal passing in the House of Representatives on November 19, 2021. However, Democrats hit roadblocks to passing the bill in the Senate. Senators Manchin (D-WV) and Sinema (D-AZ) expressed concerns regarding the size and costs of the package, especially considering rising inflation. After months of negotiations between Majority Leader Schumer and Senator Manchin, a deal was reached to reduce the federal deficit, reform prescription drug pricing, extend the American Rescue Plan Act (ARPA) Advanced Premium Tax Credit (APTC) subsidies for three years, make several tax reform changes, and invest in energy and climate change. The Manchin-Schumer deal was further modified to gain the support of Senator Sinema. None of the changes implemented to gain her vote impacted the health care provisions.
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