Senate Majority Leader Charles Schumer (D-N.Y.) and centrist Sen. Joe Manchin (D-W.Va.) on Wednesday said they had agreed to a $670 billion deal on Democratic priorities — weeks after Manchin seemingly had scuttled any chance of an agreement with hesitancy over inflation.
The new deal is a fraction of the more than $3 trillion deal once envisioned by liberal Democrats, but could give the party a big win ahead of the midterm elections when the House and Senate majorities are on the line.
The bill would invest $369 billion in energy climate programs over the next 10 years and $300 billion to reduce the deficit. It would be added to legislation to lower prescription drug prices and extend expiring health care subsidies.
The deal will be part of the budget reconciliation package that Senate Democrats plan to bring to the floor next week and pass on a party-line vote, circumventing a Republican filibuster under special Senate rules.
“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,” Schumer and Manchin announced in a joint statement. “The investments will be fully paid for by closing tax loopholes on wealthy individuals and corporations.”
The deal would raise $739 billion in new revenue through a variety of proposals, according to a one-page summary provided by the negotiators.
It would raise $313 billion by implementing a 15-percent corporate minimum tax, $288 billion from empowering Medicare to negotiate lower drug prices, $124 billion from strong IRS enforcement of tax law and $14 billion from closing the carried interest loophole for money managers.
It would spend $369 billion on energy security and climate change and $64 billion to extend health care subsidies under the Affordable Care Act.
It would allocate $300 billion to reduce the deficit.
Schumer and Manchin in their joint statement said the agreement will reduce emissions by roughly 40 percent by 2030.