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 60-vote supermajority for passage. Bills described as reconciliation bills can pass the Senate by a simple majority of 51 votes or 50 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.^[1] 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.^[2]

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.^[3] 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.