Definition
Budget reconciliation is a special congressional procedure created to align laws with budget-resolution goals. In the Senate, qualifying reconciliation bills are protected from filibuster and can pass by a simple majority.
Political Dictionary
Reconciliation
Reconciliation is a budget process that allows certain tax, spending, and debt legislation to pass the Senate with limited debate.
Why It Matters
Reconciliation enables major fiscal legislation to advance without the usual 60-vote cloture threshold.
How It Works
A budget resolution gives instructions to committees, which report legislation. The bills are combined and considered under special rules, including the Senate’s Byrd Rule.
History
The process was established in the 1974 budget law and has been used for deficit reduction, tax changes, health policy, and other fiscal measures.
Example
Congress may use reconciliation to change tax rates or mandatory health spending.
Common Misconceptions
- Any policy can be passed through reconciliation.
- Reconciliation avoids all Senate rules.
- It can be used unlimited times each year.
Related Terms
Related Topics
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