With a vote of 220 to 207, the U.S. House of Representatives passed the Inflation Reduction Act on Friday.
The Inflation Reduction Act manages to cut US greenhouse gas emissions by roughly 40 percent from peak levels this decade, according to independent analyses.
The bulk of the bill’s spending — $369 billion — goes toward building up domestic manufacturing of electric vehicles and clean energy technologies plus making homes and building energy-efficient.
the bill also spends $64 billion on healthcare subsidies to prevent insurance premiums from rising for people who buy their coverage through the public marketplace.
It will spread money all around the green economy, from $9 billion toward a program to retrofit homes to $20 billion to manufacture more electric vehicles.
The US remains the second-biggest climate polluter in the world after China and has released the most greenhouse gas emissions historically.
Democrats hope the legislation will help them at the polls in November, when voters decide the balance of power in Congress ahead of the 2024 presidential election.
Republicans are favored to win a majority in the House and could also take control of the Senate.
The bill's main revenue source is a 15% corporate minimum tax aimed at stopping large, profitable companies from gaming the Internal Revenue Service code to slash their tax bills to zero.