Democrats said they have finally reached a deal with US senator and centrist Democrat Kyrsten Sinema on a major $430bn climate and spending bill after facing several objections on the critical legislation.
Ms Sinema confirmed that she has agreed to “move forward” on the bill, which covers drug pricing, energy, environment, health and tax measures, provided the Senate parliamentarian gave her party the go-ahead to pass it throug budget reconciliaion, which Democrats intend to do despite objections from the Republican camp.
However, Democrats could only strike the agreement with Ms Sinema after they removed a provision closing what is known as the carried interest loophole, which allows partners at private investment funds to have their income taxed as capital gains, at a lower rate than income, according to the Tax Policy Center.
The chamber will convene on Saturday to vote on a motion, paving way for a debate on the bill in the House, Senate majority leader Chuck Schumer said on Thursday.
Known as the Inflation Reduction Act, the bill is a pivotal legislation for the domestic policies of the Biden administration and democrats ahead of the upcoming election battle in November for the US Congress leadership.
But the bill needed Ms Sinema’s nod for the breakthrough as Democrats could not risk losing support from even a single lawmaker.
The Arizona senator had been the only one yet to give her clearance as West Virginia’s Joe Manchin landed a deal with top Democrats last week and announced his vote for the bill as “great for America”. He effectively crushed an earlier version of the legislation last year.
Another worry for Democrats is Covid-19. Senators can only vote in person, making it mandatory for Mr Schumer’s a full caucus to be present and healthy to pass the bill.
Mr Schumer said that he believes he now has the votes.
“The agreement preserves the major components of the Inflation Reduction Act, including reducing prescription drug costs, fighting climate change, closing tax loopholes exploited by big corporations and the wealthy, and reducing the deficit by $300 billion,” he said.
Likely to be presented in the house by Democrats for passage next week, the bill and its contents have to be approved by the parliamentarian who will allow it to move forward through the process of “reconciliation”.
By doing this, Democrats can bypass the standard rule of needing 60 senators to agree to clear most legislation.
President Joe Biden has lauded the bill as a crucial step to help people save money on prescription drugs and health premiums.
“It will make our tax system more fair by making corporations pay a minimum tax,” he said on Thursday.
Additional reporting by agencies