After months of grueling negotiations, the Senate passed a $700 billion climate change and health bill, with President Biden achieving his first major legislative success after failing to advance his energy and transportation infrastructure modernization program in November. The bill includes the biggest spending the federal government has ever made to curb global warming. So the government is investing about $400 billion over the decade, offering incentives to consumers to switch to electric vehicles and electricity providers to choose renewables.

However, the Democrats were forced to grant exemptions requested by West Virginia coal mining Senator Joe Manchin. He called for new licenses for underwater mining in the Gulf of Mexico and off the coast of Alaska, as well as tax breaks for the installation of carbon dioxide capture devices that would extend the life of natural gas or coal-fired power plants. The federal government will offer $30 billion in tax credits for solar panels, wind turbines and batteries, $10 billion for electric vehicle factories, and $60 billion for investment in economically disadvantaged areas, among other things. Of particular importance to the Democratic Party is the section of the bill that allows the state health agency to negotiate the price of prescription drugs, saving several billion dollars in medical costs. Opponents of the article argue that this would deprive pharmaceutical companies of any incentive to pursue long-term and costly research. Democrats secured a partial revision of the tax code through the bill, despite strong opposition from Arizona Democratic Senator Christine Sinema, who won an exemption for investment products.