Reconciliation (budgetary process)

Extracted Attributes

• Type

  Special parliamentary procedure

• Purpose

  Expedite passage of federal budget legislation

• Exclusions

  Discretionary spending

• Significance

  Important role in US Congress legislation due to polarization and gridlock

• Key Restriction

  Byrd rule (limits extraneous policy, prevents deficit increase beyond 10 years, prohibits Social Security changes)

• Applicable Subjects

  Mandatory spending, revenue, federal debt limit

• Governing Legislation

  Congressional Budget Act of 1974

• Maximum Bills Annually

  3 (one for spending, one for revenue, one for debt limit)

• Passage Requirement (Senate)

  Simple majority (51 votes or 50 + Vice President tie-breaker)

Timeline

• The reconciliation process was created by the Congressional Budget Act of 1974. (Source: summary)

  1974-00-00

• The reconciliation process was first utilized. (Source: summary)

  1980-00-00

• The Consolidated Omnibus Budget Reconciliation Act of 1985 was passed using the reconciliation process. (Source: wikipedia)

  1985-00-00

• The Personal Responsibility and Work Opportunity Act of 1996 was passed using the reconciliation process. (Source: wikipedia)

  1996-00-00

• The Economic Growth and Tax Relief Reconciliation Act of 2001 was passed using the reconciliation process. (Source: wikipedia)

  2001-00-00

• The Health Care and Education Reconciliation Act of 2010 was passed using the reconciliation process. (Source: wikipedia)

  2010-00-00

• The Tax Cuts and Jobs Act of 2017 was passed using the reconciliation process. (Source: wikipedia)

  2017-00-00

• The American Rescue Plan Act of 2021 was passed using the reconciliation process. (Source: summary)

  2021-00-00

• The Inflation Reduction Act of 2022 was passed using the reconciliation process. (Source: summary)

  2022-00-00

• Budget reconciliation has come to play an important role in how the United States Congress legislates due to greater polarization, gridlock, and filibustering in the Senate. (Source: summary)

  Recent years

Reconciliation (United States Congress)

Budget reconciliation is a special parliamentary procedure of the United States Congress set up to expedite the passage of certain federal budget legislation in the Senate. The procedure overrides the Senate's filibuster rules, which may otherwise require a sixty-vote supermajority for passage. Bills described as reconciliation bills can pass the Senate by a simple majority of fifty-one votes or fifty votes plus the vice president's as the tie-breaker. The reconciliation procedure also applies to the House of Representatives, but it has minor significance there, as the rules of the House of Representatives do not have a de facto supermajority requirement. Because of greater polarization, gridlock, and filibustering in the Senate in recent years, budget reconciliation has come to play an important role in how the United States Congress legislates. Budget reconciliation bills can deal with mandatory spending, revenue, and the federal debt limit, and the Senate can pass one bill per year affecting each subject. Congress can thus pass a maximum of three reconciliation bills per year, though in practice it has often passed a single reconciliation bill affecting both spending and revenue. Policy changes that are extraneous to the budget are limited by the Byrd rule, which also prohibits reconciliation bills from increasing the federal deficit after a ten-year period or making changes to Social Security. Reconciliation does not apply to discretionary spending, which is instead managed through the annual appropriations process. The reconciliation process was created by the Congressional Budget Act of 1974 and was first used in 1980. Bills passed using the reconciliation process include the Consolidated Omnibus Budget Reconciliation Act of 1985, the Personal Responsibility and Work Opportunity Act of 1996, the Economic Growth and Tax Relief Reconciliation Act of 2001, the Health Care and Education Reconciliation Act of 2010, the Tax Cuts and Jobs Act of 2017, the American Rescue Plan Act of 2021, the Inflation Reduction Act of 2022, and the One Big Beautiful Bill Act.

Web Search Results

• Reconciliation (United States Congress) - Wikipedia

  Reconciliation is an optional part of the annual congressional budgetary process.( Typically, the reconciliation process begins when the president submits a budget to Congress early in the calendar year. In response, each chamber of Congress begins a parallel budget process, starting in the Senate Budget Committee and the House Budget Committee.( Each budget committee proposes a budget resolution setting spending targets for the upcoming fiscal year; in order to begin the reconciliation [...] Budget reconciliation is a special parliamentary procedure of the United States Congress set up to expedite the passage of certain federal budget legislation in the Senate. The procedure overrides the Senate's filibuster rules, which may otherwise require a sixty-vote supermajority for passage. Bills described as reconciliation bills can pass the Senate by a simple majority of fifty-one votes or fifty votes plus the vice president's as the tie-breaker. The reconciliation procedure also applies [...] The reconciliation process was created by the Congressional Budget Act of 1974 and was first used in 1980. Bills passed using the reconciliation process include the Consolidated Omnibus Budget Reconciliation Act of 1985, the Personal Responsibility and Work Opportunity Act of 1996, the Economic Growth and Tax Relief Reconciliation Act of 2001, the Health Care and Education Reconciliation Act of 2010, the Tax Cuts and Jobs Act of 2017, the American Rescue Plan Act of 2021, the Inflation

• What Is Budget Reconciliation — and How Does It Affect States?

  Budget reconciliation is a fast-track process that allows Congress to make changes to spending, revenues and the federal debt limit. It was established under the Congressional Budget Act of 1974 and is unique because it limits debate in the Senate, making it immune to the filibuster. This means reconciliation bills can pass with a simple majority vote (51 senators), rather than the usual 60. [...] Reconciliation begins when Congress adopts a budget resolution that includes “reconciliation instructions.” These instructions direct specific congressional committees to develop legislation that meets fiscal targets — such as reducing the deficit or adjusting tax and spending levels. The Congressional Budget Act limits the use of the reconciliation process. Reconciliation instructions can be given for three specific purposes:

• The Reconciliation Process: Frequently Asked Questions

  Reconciliation is a two-phase process. In the first phase, the House and Senate adopt a budget resolution containing reconciliation directives to one or more committees (also referred to as reconciliation instructions). There are three types of reconciliation directives: to change laws providing for spending, to change laws providing for revenues, and to change the public debt limit. [...] Once a reconciliation bill is on a chamber's calendar, the House and Senate consider it under the rules and expedited procedures enumerated in the Budget Act. Any differences between the House and Senate are resolved via conference committee or an exchange of amendments between the two chambers, or one chamber may adopt the reconciliation legislation of the other without any changes.

• What Is Budget Reconciliation? - Peterson Foundation

  Budget reconciliation is a powerful but complex process that begins when the House and Senate Budget Committees include instructions in their annual budget resolution for other committees to develop and report legislation that has specified effects on mandatory spending, revenues, or the debt limit. If only one committee receives reconciliation instructions, its reported legislation can move directly to the floor for consideration by the full House or Senate. If more than one committee is [...] Budget reconciliation is a powerful tool that lawmakers can use to adjust existing laws to guide the nation’s fiscal path. Reconciliation has been employed in times of narrow political majorities and as a practical workaround to enact controversial policies that otherwise would not make it through the legislative process. Regardless of which budget processes are used, lawmakers need to exhibit sound decision-making to preserve our most important programs and safeguard our fiscal future. [...] With narrow majorities in both Houses of Congress, Republicans recently made use of the budget reconciliation process to advance key pieces of their agenda. Reconciliation provides for expedited consideration of certain legislation; its use is particularly important in the Senate because it limits the time allowed for debate and prevents the inclusion of non-budgetary provisions. The reconciliation process avoids the potential need to gather 60 votes to end debate and, therefore, allows the

• Explaining Budget Reconciliation in Congress - AAPD

  The House and Senate must each pass a budget resolution every year. Reconciliation is the name for a fast-track legislative process Congress uses to address certain budget issues. Reconciliation addresses areas of the Congressional budget in which revenue (money the government brings in), spending, and federal debt levels need to be adjusted – or reconciled – for Congress’ final budget to work. Reconciliation is not the only process used for the federal budget, but it is an important one! [...] The reconciliation process was created 51 years ago by the Congressional Budget Act of 1974. Over the last 51 years, reconciliation has been used 28 times: 23 bills have been signed into law, four were passed by Congress but vetoed by the President, and one passed in the House but not the Senate. [...] Reconciliation has been used to reform benefit programs, create new ones, balance the federal budget, and enact significant tax reform. Most reconciliation processes have focused on reducing the federal deficit, but in some years, most recently in 2017 and 2021, reconciliation legislation has increased the federal deficit.