House passes climate, health bill

The bill’s major component is $375 billion over 10 years to encourage industries and consumers to adopt energy-efficient consumption habits, like driving electric cars. It also includes giving Medicare the power to negotiate its payments for some pharmaceuticals in 2026 and capping beneficiaries’ out-of-pocket costs at $2,000 starting in 2025. The nonpartisan Congressional Budget Office said the bill would have a “negligible” effect on inflation. The House passed the bill Friday along party lines. The Senate already approved it, and President Joe Biden is expected to sign it into law.

What are Republicans saying about it? Some, including Sen. Lindsey Graham, R-S.C., say the bill will worsen inflation rather than slow it. The bill includes a 15 percent “corporate alternative minimum tax” that applies to businesses making more than $1 billion. Economists warn businesses will pass on those costs to consumers.

Dig deeper: Read Leo Briceno’s report in The Stew for more analysis of the bill.