In a major boost to Democrats, Manchin and Schumer announce deal for energy and health care bill

By Manu Raju, CNN Chief Congressional Correspondent

Senate Majority Leader Chuck Schumer and Sen. Joe Manchin on Wednesday announced a deal on an energy and health care bill, representing a breakthrough after more than a year of negotiations that have collapsed time and again.

But it will face furious GOP opposition.

With a deal in hand, the health and climate bill stands a serious chance of becoming law as soon as August — assuming Democrats can pass the bill in the House and that it passes muster with the Senate parliamentarian to allow it to be approved along straight party lines in the budget process.

And while Manchin, a moderate from Democrat from West Virginia, scuttled Biden’s Build Back Better bill, the final deal includes a number of provisions Manchin had privately scoffed at — including on climate change.

While many details have not been disclosed, the measure would invest $369 billion into energy and climate change programs, with the goal of reducing carbon emissions by 40% by 2030, according to a one-page fact sheet.

For the first time, Medicare would be empowered to negotiate drug prices, something Democrats say would raise $288 billion, and it would cap out-of-pocket costs at $2,000 for drugs. It would extend expiring subsidies under the Affordable Care Act for three years.

To raise revenue, the bill would impose a 15% corporate minimum tax, while raising taxes on carried interest and raising another $124 billion through IRS tax enforcement. Democrats say families making less than $400,000 per year would not be affected.

Democrats say it would reduce the deficit by $300 billion.

The White House has signed off on this deal, a source told CNN’s Kaitlan Collins on Wednesday.

This story has been updated with additional development Wednesday.

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