The President of the United States, Joe Biden has signed a $700bn (£579bn) bill that aims to fight climate change and healthcare costs while raising taxes mainly on the rich.
The act includes measures to make good on decades of congressional promises to curb the price of prescription drugs.
The final version is more modest in scope than the $3.5tn package first envisaged by Democrats.
A flagship of Mr Biden’s agenda, the bill could provide a boost ahead of the mid-term elections.
The president hailed the bill as he signed it on Tuesday as the “final piece” of his domestic agenda.
The package invests $375bn to fight climate change – the most significant federal investment in history in the issue.
It is projected to lower US emissions by up to 44% by 2030, compared with the current US trajectory, which would lower emissions by up to 35%, according to an analysis by the Rhodium Group, a consultancy.
Biden said the measure was a “historic moment”, adding: “Every single Republican in Congress voted against this bill.”
But Republican Senate leader Mitch McConnell said the legislation “means higher taxes, higher energy bills, and aggressive IRS [tax] audits”.