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US Democrats pass massive clean-energy, healthcare spending bill hoped to tackle inflation

US senator and coal baron Joe Manchin was a key sticking point in the bill's passage. (Reuters: Ken Cedeno)

The US Senate has passed a sweeping $US430 billion ($622.75) bill intended to fight climate change, lower drug prices, and raise some corporate taxes, in a major victory for beleaguered President Joe Biden.

After a 27-hour weekend debate and Republican efforts to derail the package, the Senate approved the legislation by a 51-50 vote along party lines, with Vice-President Kamala Harris casting the tie-breaking ballot.

Top Democrats say the legislation contains "the boldest clean-energy package in American history" to fight climate change while reducing consumer costs for energy and some medicines.

The bill will now be voted on in the House of Representatives and, if successful, could be sent along to the White House for presidential approval.

In a statement, Mr Biden urged the House to act as soon as possible and said he looked forward to signing the bill into law.

"The Senate is making history," an elated Senate Majority Leader Chuck Schumer said, after pumping his fists in the air as Democrats cheered and their staff members responded to the vote with a standing ovation.

"To Americans who've lost faith that Congress can do big things, this bill is for you," he said. "This bill is going to change America for decades."

But the Democrats have drawn strong criticism form Republicans over the legislation's $US430 billion in new spending, and roughly $US740 billion in new revenue.

If the bill passes it could come as a boon to both Democratic re-election campaigns and Mr Biden's public approval rating, which is flagging amid high inflation.

Bill passed through budget reconciliation 

The legislation is aimed at reducing carbon emissions and shifting consumers to green energy, while cutting prescription drug costs for the elderly and tightening enforcement on taxes for corporations and the wealthy.

US Senate Majority Leader Chuck Schumer celebrated the passing of the bill, remarking that it would change America for decades. (Reuters: Ken Cedeno)

Because the measure pays for itself and reduces the federal deficit over time, Democrats contend that it will help bring down inflation, an economic liability that has also weighed on their hopes of retaining control in the run-up to the 2024 presidential election.

Republicans, arguing that the bill will not address inflation, have denounced the measure as a job-killing, left-wing spending wish list that could undermine growth when the economy is in danger of falling into recession.

The Democrats approved the bill by using a parliamentary manoeuvre called reconciliation, which allows budget-related legislation to avoid the 100-seat chamber's 60-vote threshold for most bills and pass on a simple majority.

After several hours of debate, the Senate began a rapid-fire "vote-a-rama" on Democratic and Republican amendments on Saturday evening that stretched into Sunday afternoon.

Democrats repelled more than 30 Republican amendments, points of order and motions, all intended to scupper the legislation. Any change in the bill's contents wrought by an amendment could have unravelled the Democrats' 50-senator coalition needed to keep the legislation on track.

Despite broad support for lowering drug costs, the price of insulin — $US35 a month through private health insurance —fell outside of the reconciliation rules and Democrats were unable to muster the votes necessary to cap the costs.

However, the new legislation would still limit the cost of insulin for those on Medicare.

ABC/wires

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