What's in Senate Democrats' new health care, climate and tax proposal

Washington — Senate Majority Leader Chuck Schumer and Sen. Joe Manchin, a moderate Democrat from West Virginia, surprised Washington this week with their announcement of a deal on a spending package that aims to address health care costs, combat climate change and tackle the deficit.

An agreement on the plan has evaded Democrats for months, with negotiations coming in fits and starts as Manchin expressed concerns about new federal spending amid rising consumer prices. But a breakthrough emerged Wednesday with the Inflation Reduction Act, breathing new life into President Biden's domestic policy agenda.

While more narrow than the sweeping social spending proposal put forth by Mr. Biden last year, the president on Wednesday threw his support behind the deal from Schumer and Manchin, saying in a statement it will address high health care costs and inflation, and invest in the nation's energy security.