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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 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.

In April 2021, the Senate Parliamentarian—an in-house rules expert—determined that the Senate can pass two budget reconciliation bills in 2021: one focused on fiscal year 2021 and one focused on fiscal year 2022. In addition, the Senate can pass additional budget reconciliation bills by describing them as a revised budget resolution that contains budget reconciliation instructions.[4] However, the Parliamentarian later clarified that the “auto-discharge” rule that allows a budget resolution to bypass a Budget Committee vote and be brought directly to the Senate floor does not apply to a revised budget resolution.[5] As a result of this ruling, a revised budget resolution would need to be approved by a majority vote of the Budget Committee before proceeding to the Senate floor, or deadlocked with a tied vote and then brought to the Senate floor via a motion to discharge. In a 50-50 Senate where committees are evenly divided between parties, this has the functional effect of requiring at least one member of the minority party on the Budget Committee to be present in order to provide a quorum for a vote. Considering the partisan nature of reconciliation legislation, it is highly unlikely that a member of the minority party will cooperate with the majority by providing a quorum on the Committee, thus practically limiting the majority of a 50-50 tied Senate to one reconciliation bill per fiscal year.

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, and the Inflation Reduction Act of 2022.

Process edit

Reconciliation process edit

Reconciliation is an optional part of the annual congressional budgetary process.[6] 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.[7] Each budget committee proposes a budget resolution setting spending targets for the upcoming fiscal year; in order to begin the reconciliation process, each house of Congress must pass identical budget resolutions that contain reconciliation instructions.[8] Other committees then approve bills that meet the spending targets proposed by their respective budget committees, and these individual bills are consolidated into a single omnibus bill. Each house of Congress then begins consideration of their respective omnibus bills under their respective rules of debate.[7]

The reconciliation process has a relatively minor impact in the House of Representatives, but it has important implications in the Senate. In contrast to most other legislation, senators cannot use the filibuster to indefinitely prevent consideration of a reconciliation bill, because Senate debate over reconciliation bills is limited to twenty hours. Thus, reconciliation bills only require the support of a simple majority of the Senate for passage, rather than the 60-vote supermajority required to invoke cloture and defeat a filibuster.[a][10] Senators could theoretically prevent passage of a reconciliation bill by offering an unending series of amendments in a process colloquially known as a "vote-a-rama",[b] but, unlike the modern filibuster, senators introducing these amendments must stand up and verbally offer the amendments.[12]

Though the reconciliation process allows a bill to bypass the filibuster in the Senate, it does not affect other basic requirements for the passage of a bill, which are laid out in the Constitution's Presentment Clause. The House and Senate still must pass an identical bill and present that bill to the president. The president can sign the bill into law or veto it, and Congress can override the president's veto with a two-thirds majority vote in both houses of Congress.

Byrd Rule edit

 
The Byrd Rule defines any reconciliation changes to Social Security as "extraneous"—and therefore ineligible for reconciliation.

The Byrd Rule, named for Senator Robert Byrd, was adopted in 1985 and amended in 1990.[13] The Byrd Rule defines a provision to be "extraneous"—and therefore ineligible for reconciliation—in six cases:[3]

  1. if it does not produce a change in outlays or revenues;
  2. if it produces an outlay increase or revenue decrease when the instructed committee is not in compliance with its instructions;
  3. if it is outside the jurisdiction of the committee that submitted the title or provision for inclusion in the reconciliation measure;
  4. if it produces a change in outlays or revenues which is merely incidental to the nonbudgetary components of the provision;
  5. if it would increase the deficit for a fiscal year beyond those covered by the reconciliation measure (usually a period of 10 years);[c] or
  6. if it recommends changes in Social Security.

The Byrd Rule does not prevent the inclusion of extraneous provisions, but relies on objecting senators to remove provisions by raising procedural objections.[15] Any senator may raise a procedural objection to a provision believed to be extraneous, which will then be ruled on by the presiding officer, customarily on the advice of the Senate parliamentarian: a vote of 60 senators is required to overturn their ruling. While the vice president (as president of the Senate) can overrule the parliamentarian, this has not been done since 1975.[16]

In 2001, Senate Majority Leader Trent Lott fired Parliamentarian Robert Dove after bipartisan dissatisfaction with his rulings, and replaced him with the previous Democratic appointee, Alan Frumin.[17]

Other restrictions edit

Congress can pass up to three reconciliation bills per year, with each bill addressing the major topics of reconciliation: revenue, spending, and the federal debt limit. However, if Congress passes a reconciliation bill affecting more than one of those topics, it cannot pass another reconciliation bill later in the year affecting one of the topics addressed by the previous reconciliation bill.[3] In practice, reconciliation bills have usually been passed once per year at most.[18]

Other restrictions have also been applied to reconciliation. For example, from 2007 to 2011, Congress adopted a rule preventing reconciliation from being used to increase deficits.[19]

History edit

Origins edit

Because of growing concerns over deficits and presidential control of the budget process, many members of Congress sought to reform the congressional budgetary process in the early 1970s. Charles Schultze, a former Director of the Bureau of the Budget, suggested a new process in which Congress would exercise greater control of the budget process by setting overall spending targets. Schultze proposed that Congress create a new type of legislation, the "final budget reconciliation bill," to ensure that the various budget-related bills passed by each congressional committee collectively fell within the overall spending targets passed by Congress. Schultze's ideas were adopted by Congress with the passage of the Congressional Budget Act of 1974, which established the reconciliation process, the Congressional Budget Office, and standing budget committees in the House and Senate.[20] Under the original design of the Budget Act, reconciliation was expected to apply to revenue and spending within a single fiscal year.[21]

Although reconciliation was originally understood to be for the purpose of either reducing deficits or increasing surpluses, the language of the 1974 act refers only to "changes" in revenue and spending amounts, not specifically to increases or decreases. Former Parliamentarian of the Senate Robert Dove noted that in 1975 Senator Russell Long convinced the Parliamentarian to protect a tax cut bill.[22] However, that bill was vetoed by President Gerald Ford. During the late 1970s, the process of reconciliation was largely ignored, in part because reconciliation could only be used during a brief window. In 1980, Congress amended the reconciliation process, allowing it to be used at the start of the budget process. Later that year, President Jimmy Carter signed the first budget bill passed using the reconciliation process; the bill contained about $8 billion in budget cuts.[23]

Ronald Reagan edit

 
Senator Robert Byrd.

Reconciliation emerged as an important legislative tool during the Reagan administration. A coalition of Republicans and conservative Democrats used the reconciliation process to pass the Omnibus Budget Reconciliation Act of 1981, which contained various spending cuts. In addition to bypassing the filibuster, the reconciliation process allowed Congress to pass these spending cuts through a budget resolution and a single reconciliation bill, rather than through the traditional method of passing several bills addressing each area of spending.[24] During the early 1980s, Congress passed reconciliation bills containing provisions that did not directly relate to the budget; for example, one reconciliation bill decreased the number of individuals on the Federal Communications Commission. In response, Senator Robert Byrd led passage of an amendment to strike "extraneous" amendments from reconciliation bills, and Congress permanently adopted the Byrd Rule in 1990.[25] The reconciliation process remained an important tool of congressional majorities even after the passage of the Byrd Rule.[19]

George H. W. Bush edit

During the presidency of George H. W. Bush, it was used to pass the Omnibus Budget Reconciliation Act of 1990, which reduced federal spending and increased federal revenue.[26]

Bill Clinton edit

After taking office in 1993, Democratic President Bill Clinton won passage of his proposed budget, the Omnibus Budget Reconciliation Act of 1993 through reconciliation. In 1996, he signed another major reconciliation bill, the Personal Responsibility and Work Opportunity Act of 1996.[19] In 1997, Congress passed the Taxpayer Relief Act of 1997, a reconciliation bill that reduced taxes and increased the federal budget deficit. The tax cut bill was paired with the Balanced Budget Act of 1997, which reduced spending, and the two bills were signed into law by President Clinton. In 1999, the Congress used reconciliation to pass the Taxpayer Refund and Relief Act of 1999, which represented the first time that the reconciliation process was used to increase deficits without a companion bill that reduced spending. It was vetoed by President Clinton. A similar situation happened in 2000, when the Senate again used reconciliation to pass the Marriage Tax Relief Reconciliation Act 2000, which was also vetoed by Clinton. At the time, the use of the reconciliation procedure to pass such bills was controversial.[27]

George W. Bush edit

Upon taking office in 2001, Republican President George W. Bush sought the passage of major tax cuts, but his party controlled only a narrow majority in the Senate. To avoid a filibuster, Bush and his congressional allies used reconciliation to pass the Economic Growth and Tax Relief Reconciliation Act of 2001 and the Jobs and Growth Tax Relief Reconciliation Act of 2003, two major tax cut bills that reduced federal revenues.[28] To comply with the Byrd Rule, the tax cuts contained sunset provisions, meaning that, absent further legislation, tax rates would return to their pre-2001 levels in 2011.[29] Portions of the Bush tax cuts were made permanent through the American Taxpayer Relief Act of 2012, though some of the tax cuts for high earners were not extended.[30]

Barack Obama edit

Democrats won control of the presidency and increased their control over Congress in the 2008 elections, and newly-inaugurated President Barack Obama and his congressional allies focused on passing a major healthcare reform bill in the 111th Congress. The Senate passed a major healthcare bill in late 2009 without using the reconciliation process; because Democrats had a 60-seat super-majority in the Senate, they were able to defeat Republican attempts to block the bill via the filibuster. While the House continued to debate its own healthcare bill, Democrats lost their 60-seat Senate super-majority following the death of Senator Ted Kennedy.[d] Following the loss of the Democratic super-majority in the Senate, House Democrats agreed to pass the Senate bill, while Senate Democrats agreed to use the reconciliation process to pass a second bill that would make various adjustments to the first bill.[32] The original Senate bill was passed by the House and signed into law by President Obama as the Patient Protection and Affordable Care Act (ACA). Subsequently, the House and Senate used reconciliation to pass the Health Care and Education Reconciliation Act of 2010, which contained several alterations to the ACA.[31] In 2016, Republicans passed a reconciliation bill to repeal parts of the ACA, but it was vetoed by President Obama.[33][34]

Donald Trump edit

After gaining control of Congress and the presidency in the 2016 elections, Republicans sought to partially repeal the ACA and pass a major tax cut bill in the 115th United States Congress. As the party lacked a 60-vote super-majority in the Senate, they sought to implement both policies through separate reconciliation bills, with the healthcare bill passed using the reconciliation process for fiscal year 2017 and the tax cut bill passed using the reconciliation process for fiscal year 2018.[35] Republicans were unable to pass their healthcare bill, the American Health Care Act of 2017, because three Senate Republicans and all Senate Democrats voted against it, preventing the bill from gaining majority support in the Senate.[36] With the defeat of their healthcare bill, congressional Republicans changed their focus to a separate reconciliation bill that would cut taxes.[37] Both houses of Congress passed a tax cut bill in late 2017, though the Byrd Rule required the stripping of some provisions deemed extraneous.[38] After both houses of Congress passed an identical tax cut bill, President Trump signed the Tax Cuts and Jobs Act of 2017 into law in December 2017.[39] Because of Byrd Rule restrictions, the individual tax cuts contained in the Tax Cuts and Jobs Act of 2017 will expire in 2026 barring further legislative action.[40]

Joe Biden edit

The American Rescue Plan was a $1.9 trillion economic stimulus package proposed by President Joe Biden to speed up the United States' recovery from the economic and health effects of the COVID-19 pandemic and the ongoing recession. He planned to pass it as one of his first bills into law through the 117th Congress.[41] First proposed on January 14, 2021, the package built upon many of the measures in the CARES Act from March 2020 and in the Consolidated Appropriations Act, 2021 from December.[42][43] The Parliamentarian of the United States Senate ruled on February 21 that a provision calling for a $15 minimum wage increase in the American Rescue Plan could not be considered under Reconciliation because of the Byrd Rule.[44] The bill was signed into law on March 11, 2021.[45]

List of reconciliation bills edit

The following bills have been enacted into law using reconciliation:[46]

Since 1980, four reconciliation bills have passed Congress, but were vetoed by the president:[47]

See also edit

Notes edit

  1. ^ Reconciliation is not the only legislative process not subject to a Senate filibuster, but other processes, such as trade promotion authority, only apply in narrow circumstances.[9]
  2. ^ The "Vote-a-Rama" does not conflict with the twenty hour limit on debate over reconciliation bills because that limit applies only to debate, and not to the process of voting on amendments.[11]
  3. ^ Currently, the Byrd Rule prevents an increase in the deficit beyond a ten-year "budget window." Some members of Congress have proposed extending the budget window to 20 or more years.[14]
  4. ^ Republican Scott Brown won a special election held to fill the vacancy caused by Kennedy's death.[31]

References edit

  1. ^ Davis, Jeff (January 19, 2010). "How Reconciliation Would Work". The New Republic. Retrieved August 4, 2019.
  2. ^ Reynolds, Molly E. (2022). ""A Free-Range Chicken that Can Run Wherever the Majority Wants It To": Budget Reconciliation and the Contemporary U.S. Senate". The Forum. 19 (4): 629–647. doi:10.1515/for-2021-2035. ISSN 1540-8884. S2CID 245802229.
  3. ^ a b c Reich, David; Kogan, Richard (November 9, 2016) [2015]. "Introduction to Budget 'Reconciliation'". Center on Budget and Policy Priorities. Retrieved July 18, 2017.
  4. ^ Senate Democrats can now pass more bills with 51 votes through budget reconciliation after parliamentarian ruling – Vox
  5. ^ "Democrats' reconciliation strategy dealt blow by Senate parliamentarian". Roll Call. June 2, 2021. Retrieved June 28, 2021.
  6. ^ Lynch (2016), p. 1
  7. ^ a b Jacobi & Van Dam (2013), pp. 30–32
  8. ^ Davis, Jeff (October 15, 2017). "The Rule That Broke the Senate". Politico. Retrieved March 29, 2019.
  9. ^ Reynolds (2017), pp. 6–8
  10. ^ Jacobi & Van Dam (2013), p. 25
  11. ^ Jacobi & Van Dam (2013), p. 31
  12. ^ Jacobi & Van Dam (2013), pp. 31–32
  13. ^ Heniff Jr., Bill (November 22, 2016). The Budget Reconciliation Process: The Senate's "Byrd Rule". Washington, DC: Congressional Research Service. Retrieved April 19, 2019.
  14. ^ Jagoda, Naomi (June 28, 2017). "Rift opens in GOP over budget strategy". The Hill. Retrieved March 29, 2019.
  15. ^ Jacobi & Van Dam (2013), p. 38
  16. ^ Young, Jeffrey (February 17, 2010). "Healthcare reform and reconciliation a bad mix, ex-parliamentarian says". The Hill. Retrieved March 2, 2010.
  17. ^ Rosenbaum, David E. (May 8, 2001). "Rules Keeper Is Dismissed By Senate, Official Says". The New York Times. ISSN 0362-4331. Retrieved April 24, 2017.
  18. ^ Jacobi & Van Dam (2013), pp. 30–31
  19. ^ a b c Matthews, Dylan (November 23, 2016). "Budget reconciliation, explained". Vox. Retrieved March 29, 2019.
  20. ^ Jacobi & Van Dam (2013), pp. 3, 26–28
  21. ^ Meyers, Roy T.; Joyce, Philip G. (2005). "Congressional Budgeting at Age 30: Is It Worth Saving?" (PDF). Public Budgeting and Finance. Vol. 25. pp. 68–82.
  22. ^ Dove, Robert (panelist) (March 12, 2010), Use of Senate Filibuster (Video), Senate Public Affairs Event, Washington, Connecticut: C-SPAN, event occurs at 0:50:00–0:57:20, Sponsored by the American Enterprise Institute
  23. ^ Reynolds (2017), pp. 84–85
  24. ^ Jacobi & Van Dam (2013), pp. 32–34
  25. ^ Jacobi & Van Dam (2013), pp. 36–38
  26. ^ Lynch (2018), p. 7
  27. ^ Keith and Heniff Jr. (2005), pp. 17–18
  28. ^ Jacobi & Van Dam (2013), pp. 40–42
  29. ^ Heniff Jr. (2016), pp. 15–16
  30. ^ Reynolds (2017), pp. 125–126
  31. ^ a b Jacobi & Van Dam (2013), pp. 43–45
  32. ^ Heniff Jr. (2016), p. 18
  33. ^ "Analysis | The budget rule you've never heard of that ties Republicans' hands on Obamacare". The Washington Post. Retrieved May 7, 2017.
  34. ^ "Congress Sends Obamacare Repeal to President for First Time". NBC News. Retrieved May 7, 2017.
  35. ^ Viebeck, Elise (September 20, 2017). "Why Senate Republicans are in such a rush this month on health care". The Washington Post. Retrieved March 30, 2019.
  36. ^ Pear, Robert; Kaplan, Thomas (July 27, 2017). "Senate Rejects Slimmed-Down Obamacare Repeal as McCain Votes No". The New York Times. ISSN 0362-4331. Retrieved July 31, 2017.
  37. ^ Reynolds, Molly E. (December 2, 2017). "Four lessons from the Senate tax bill". Brookings Institution. Retrieved March 29, 2019.
  38. ^ Faler, Brian (December 20, 2017). "Senate passes tax bill, teeing up final House vote". Politico. Retrieved March 29, 2019.
  39. ^ Wagner, John (December 22, 2017). "Trump signs sweeping tax bill into law". The Washington Post.
  40. ^ Everett, Burgess (April 17, 2018). "McConnell considering vote to make tax cuts permanent". Politico. Retrieved March 29, 2019.
  41. ^ "American Rescue Plan: Inside Biden's $1.9 Trillion Stimulus". SmartAsset. January 15, 2021. Retrieved January 16, 2021.
  42. ^ Luhby, Tami; Lobosco, Katie (January 14, 2021). "Here's what's in Biden's $1.9 trillion economic rescue package". CNN. Retrieved January 16, 2021.
  43. ^ Tankersley, Jim; Crowley, Michael (January 14, 2021). "Here are the highlights of Biden's $1.9 trillion 'American Rescue Plan.'". The New York Times. ISSN 0362-4331. Retrieved January 16, 2021.
  44. ^ Kapur, Sahil; Caldwell, Leigh Ann (February 25, 2021). "Senate ruling says Democrats can't put $15 minimum wage in Covid relief bill". NBC News. Retrieved February 26, 2021.
  45. ^ "Biden signs $1.9 trillion American Rescue Plan into law". www.cbsnews.com. March 12, 2021. Retrieved April 9, 2021.
  46. ^ Lynch (2018), pp. 2–3
  47. ^ Heniff Jr. (2016), p. 7

Works cited edit

  • Heniff, Bill Jr. (2016). "The Budget Reconciliation Process: The Senate's "Byrd Rule"" (PDF). Congressional Research Service.
  • Jacobi, Tonja; VanDam, Jeff (2013), "The Filibuster and Reconciliation: The Future of Majoritarian Lawmaking in the U.S. Senate", UC Davis Law Review, 47: 261, doi:10.2139/ssrn.2221712, S2CID 155763015, SSRN 2221712
  • Keith, Robert, and Bill Henniff Jr. The Budget Reconciliation Process: House and Senate Procedures. Washington, D.C.: Congressional Research Service, 2005.
  • Lynch, Megan S. The Budget Reconciliation Process: Timing of Legislative Action Washington, D.C.: Congressional Research Service, 2016.
  • Lynch, Megan S. (2018). Budget Reconciliation Measures Enacted Into Law: 1980-2017 (PDF). Washington, DC: Congressional Research Service.
  • Reynolds, Molly E. (2017). Exceptions to the Rule: The Politics of Filibuster Limitations in the U.S. Senate. Brookings Institution Press. ISBN 978-0815729969.

Further reading edit

reconciliation, united, states, congress, budget, reconciliation, special, parliamentary, procedure, united, states, congress, expedite, passage, certain, federal, budget, legislation, senate, procedure, overrides, senate, filibuster, rules, which, otherwise, . 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 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 In April 2021 the Senate Parliamentarian an in house rules expert determined that the Senate can pass two budget reconciliation bills in 2021 one focused on fiscal year 2021 and one focused on fiscal year 2022 In addition the Senate can pass additional budget reconciliation bills by describing them as a revised budget resolution that contains budget reconciliation instructions 4 However the Parliamentarian later clarified that the auto discharge rule that allows a budget resolution to bypass a Budget Committee vote and be brought directly to the Senate floor does not apply to a revised budget resolution 5 As a result of this ruling a revised budget resolution would need to be approved by a majority vote of the Budget Committee before proceeding to the Senate floor or deadlocked with a tied vote and then brought to the Senate floor via a motion to discharge In a 50 50 Senate where committees are evenly divided between parties this has the functional effect of requiring at least one member of the minority party on the Budget Committee to be present in order to provide a quorum for a vote Considering the partisan nature of reconciliation legislation it is highly unlikely that a member of the minority party will cooperate with the majority by providing a quorum on the Committee thus practically limiting the majority of a 50 50 tied Senate to one reconciliation bill per fiscal year 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 and the Inflation Reduction Act of 2022 Contents 1 Process 1 1 Reconciliation process 1 2 Byrd Rule 1 3 Other restrictions 2 History 2 1 Origins 2 2 Ronald Reagan 2 3 George H W Bush 2 4 Bill Clinton 2 5 George W Bush 2 6 Barack Obama 2 7 Donald Trump 2 8 Joe Biden 3 List of reconciliation bills 4 See also 5 Notes 6 References 6 1 Works cited 7 Further readingProcess editReconciliation process edit See also United States budget process Reconciliation is an optional part of the annual congressional budgetary process 6 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 7 Each budget committee proposes a budget resolution setting spending targets for the upcoming fiscal year in order to begin the reconciliation process each house of Congress must pass identical budget resolutions that contain reconciliation instructions 8 Other committees then approve bills that meet the spending targets proposed by their respective budget committees and these individual bills are consolidated into a single omnibus bill Each house of Congress then begins consideration of their respective omnibus bills under their respective rules of debate 7 The reconciliation process has a relatively minor impact in the House of Representatives but it has important implications in the Senate In contrast to most other legislation senators cannot use the filibuster to indefinitely prevent consideration of a reconciliation bill because Senate debate over reconciliation bills is limited to twenty hours Thus reconciliation bills only require the support of a simple majority of the Senate for passage rather than the 60 vote supermajority required to invoke cloture and defeat a filibuster a 10 Senators could theoretically prevent passage of a reconciliation bill by offering an unending series of amendments in a process colloquially known as a vote a rama b but unlike the modern filibuster senators introducing these amendments must stand up and verbally offer the amendments 12 Though the reconciliation process allows a bill to bypass the filibuster in the Senate it does not affect other basic requirements for the passage of a bill which are laid out in the Constitution s Presentment Clause The House and Senate still must pass an identical bill and present that bill to the president The president can sign the bill into law or veto it and Congress can override the president s veto with a two thirds majority vote in both houses of Congress Byrd Rule edit Further information Sunset provision Budget Act and the Byrd Rule nbsp The Byrd Rule defines any reconciliation changes to Social Security as extraneous and therefore ineligible for reconciliation The Byrd Rule named for Senator Robert Byrd was adopted in 1985 and amended in 1990 13 The Byrd Rule defines a provision to be extraneous and therefore ineligible for reconciliation in six cases 3 if it does not produce a change in outlays or revenues if it produces an outlay increase or revenue decrease when the instructed committee is not in compliance with its instructions if it is outside the jurisdiction of the committee that submitted the title or provision for inclusion in the reconciliation measure if it produces a change in outlays or revenues which is merely incidental to the nonbudgetary components of the provision if it would increase the deficit for a fiscal year beyond those covered by the reconciliation measure usually a period of 10 years c or if it recommends changes in Social Security The Byrd Rule does not prevent the inclusion of extraneous provisions but relies on objecting senators to remove provisions by raising procedural objections 15 Any senator may raise a procedural objection to a provision believed to be extraneous which will then be ruled on by the presiding officer customarily on the advice of the Senate parliamentarian a vote of 60 senators is required to overturn their ruling While the vice president as president of the Senate can overrule the parliamentarian this has not been done since 1975 16 In 2001 Senate Majority Leader Trent Lott fired Parliamentarian Robert Dove after bipartisan dissatisfaction with his rulings and replaced him with the previous Democratic appointee Alan Frumin 17 Other restrictions edit Congress can pass up to three reconciliation bills per year with each bill addressing the major topics of reconciliation revenue spending and the federal debt limit However if Congress passes a reconciliation bill affecting more than one of those topics it cannot pass another reconciliation bill later in the year affecting one of the topics addressed by the previous reconciliation bill 3 In practice reconciliation bills have usually been passed once per year at most 18 Other restrictions have also been applied to reconciliation For example from 2007 to 2011 Congress adopted a rule preventing reconciliation from being used to increase deficits 19 History editOrigins edit Because of growing concerns over deficits and presidential control of the budget process many members of Congress sought to reform the congressional budgetary process in the early 1970s Charles Schultze a former Director of the Bureau of the Budget suggested a new process in which Congress would exercise greater control of the budget process by setting overall spending targets Schultze proposed that Congress create a new type of legislation the final budget reconciliation bill to ensure that the various budget related bills passed by each congressional committee collectively fell within the overall spending targets passed by Congress Schultze s ideas were adopted by Congress with the passage of the Congressional Budget Act of 1974 which established the reconciliation process the Congressional Budget Office and standing budget committees in the House and Senate 20 Under the original design of the Budget Act reconciliation was expected to apply to revenue and spending within a single fiscal year 21 Although reconciliation was originally understood to be for the purpose of either reducing deficits or increasing surpluses the language of the 1974 act refers only to changes in revenue and spending amounts not specifically to increases or decreases Former Parliamentarian of the Senate Robert Dove noted that in 1975 Senator Russell Long convinced the Parliamentarian to protect a tax cut bill 22 However that bill was vetoed by President Gerald Ford During the late 1970s the process of reconciliation was largely ignored in part because reconciliation could only be used during a brief window In 1980 Congress amended the reconciliation process allowing it to be used at the start of the budget process Later that year President Jimmy Carter signed the first budget bill passed using the reconciliation process the bill contained about 8 billion in budget cuts 23 Ronald Reagan edit nbsp Senator Robert Byrd Reconciliation emerged as an important legislative tool during the Reagan administration A coalition of Republicans and conservative Democrats used the reconciliation process to pass the Omnibus Budget Reconciliation Act of 1981 which contained various spending cuts In addition to bypassing the filibuster the reconciliation process allowed Congress to pass these spending cuts through a budget resolution and a single reconciliation bill rather than through the traditional method of passing several bills addressing each area of spending 24 During the early 1980s Congress passed reconciliation bills containing provisions that did not directly relate to the budget for example one reconciliation bill decreased the number of individuals on the Federal Communications Commission In response Senator Robert Byrd led passage of an amendment to strike extraneous amendments from reconciliation bills and Congress permanently adopted the Byrd Rule in 1990 25 The reconciliation process remained an important tool of congressional majorities even after the passage of the Byrd Rule 19 George H W Bush edit During the presidency of George H W Bush it was used to pass the Omnibus Budget Reconciliation Act of 1990 which reduced federal spending and increased federal revenue 26 Bill Clinton edit After taking office in 1993 Democratic President Bill Clinton won passage of his proposed budget the Omnibus Budget Reconciliation Act of 1993 through reconciliation In 1996 he signed another major reconciliation bill the Personal Responsibility and Work Opportunity Act of 1996 19 In 1997 Congress passed the Taxpayer Relief Act of 1997 a reconciliation bill that reduced taxes and increased the federal budget deficit The tax cut bill was paired with the Balanced Budget Act of 1997 which reduced spending and the two bills were signed into law by President Clinton In 1999 the Congress used reconciliation to pass the Taxpayer Refund and Relief Act of 1999 which represented the first time that the reconciliation process was used to increase deficits without a companion bill that reduced spending It was vetoed by President Clinton A similar situation happened in 2000 when the Senate again used reconciliation to pass the Marriage Tax Relief Reconciliation Act 2000 which was also vetoed by Clinton At the time the use of the reconciliation procedure to pass such bills was controversial 27 George W Bush edit Upon taking office in 2001 Republican President George W Bush sought the passage of major tax cuts but his party controlled only a narrow majority in the Senate To avoid a filibuster Bush and his congressional allies used reconciliation to pass the Economic Growth and Tax Relief Reconciliation Act of 2001 and the Jobs and Growth Tax Relief Reconciliation Act of 2003 two major tax cut bills that reduced federal revenues 28 To comply with the Byrd Rule the tax cuts contained sunset provisions meaning that absent further legislation tax rates would return to their pre 2001 levels in 2011 29 Portions of the Bush tax cuts were made permanent through the American Taxpayer Relief Act of 2012 though some of the tax cuts for high earners were not extended 30 Barack Obama edit Democrats won control of the presidency and increased their control over Congress in the 2008 elections and newly inaugurated President Barack Obama and his congressional allies focused on passing a major healthcare reform bill in the 111th Congress The Senate passed a major healthcare bill in late 2009 without using the reconciliation process because Democrats had a 60 seat super majority in the Senate they were able to defeat Republican attempts to block the bill via the filibuster While the House continued to debate its own healthcare bill Democrats lost their 60 seat Senate super majority following the death of Senator Ted Kennedy d Following the loss of the Democratic super majority in the Senate House Democrats agreed to pass the Senate bill while Senate Democrats agreed to use the reconciliation process to pass a second bill that would make various adjustments to the first bill 32 The original Senate bill was passed by the House and signed into law by President Obama as the Patient Protection and Affordable Care Act ACA Subsequently the House and Senate used reconciliation to pass the Health Care and Education Reconciliation Act of 2010 which contained several alterations to the ACA 31 In 2016 Republicans passed a reconciliation bill to repeal parts of the ACA but it was vetoed by President Obama 33 34 Donald Trump edit After gaining control of Congress and the presidency in the 2016 elections Republicans sought to partially repeal the ACA and pass a major tax cut bill in the 115th United States Congress As the party lacked a 60 vote super majority in the Senate they sought to implement both policies through separate reconciliation bills with the healthcare bill passed using the reconciliation process for fiscal year 2017 and the tax cut bill passed using the reconciliation process for fiscal year 2018 35 Republicans were unable to pass their healthcare bill the American Health Care Act of 2017 because three Senate Republicans and all Senate Democrats voted against it preventing the bill from gaining majority support in the Senate 36 With the defeat of their healthcare bill congressional Republicans changed their focus to a separate reconciliation bill that would cut taxes 37 Both houses of Congress passed a tax cut bill in late 2017 though the Byrd Rule required the stripping of some provisions deemed extraneous 38 After both houses of Congress passed an identical tax cut bill President Trump signed the Tax Cuts and Jobs Act of 2017 into law in December 2017 39 Because of Byrd Rule restrictions the individual tax cuts contained in the Tax Cuts and Jobs Act of 2017 will expire in 2026 barring further legislative action 40 Joe Biden edit The American Rescue Plan was a 1 9 trillion economic stimulus package proposed by President Joe Biden to speed up the United States recovery from the economic and health effects of the COVID 19 pandemic and the ongoing recession He planned to pass it as one of his first bills into law through the 117th Congress 41 First proposed on January 14 2021 the package built upon many of the measures in the CARES Act from March 2020 and in the Consolidated Appropriations Act 2021 from December 42 43 The Parliamentarian of the United States Senate ruled on February 21 that a provision calling for a 15 minimum wage increase in the American Rescue Plan could not be considered under Reconciliation because of the Byrd Rule 44 The bill was signed into law on March 11 2021 45 List of reconciliation bills editThe following bills have been enacted into law using reconciliation 46 Omnibus Reconciliation Act of 1980 Pub L Tooltip Public Law United States 96 499 1980 Omnibus Budget Reconciliation Act of 1981 Pub L Tooltip Public Law United States 97 35 1981 Omnibus Budget Reconciliation Act of 1982 Pub L Tooltip Public Law United States 97 253 1982 Tax Equity and Fiscal Responsibility Act of 1982 TEFRA Pub L Tooltip Public Law United States 97 248 1982 Omnibus Budget Reconciliation Act of 1983 Pub L Tooltip Public Law United States 98 270 1984 Consolidated Omnibus Budget Reconciliation Act of 1985 COBRA Pub L Tooltip Public Law United States 99 272 1986 Omnibus Budget Reconciliation Act of 1986 Pub L Tooltip Public Law United States 99 509 1986 Omnibus Budget Reconciliation Act of 1987 Pub L Tooltip Public Law United States 100 203 1987 Omnibus Budget Reconciliation Act of 1989 Pub L Tooltip Public Law United States 101 239 1989 Omnibus Budget Reconciliation Act of 1990 Pub L Tooltip Public Law United States 101 508 1990 Omnibus Budget Reconciliation Act of 1993 Pub L Tooltip Public Law United States 103 66 1993 Personal Responsibility and Work Opportunity Act Pub L 104 193 1996 Balanced Budget Act of 1997 Pub L Tooltip Public Law United States 105 33 text PDF 1997 Taxpayer Relief Act of 1997 Pub L Tooltip Public Law United States 105 34 text PDF 1997 Economic Growth and Tax Relief Reconciliation Act of 2001 EGTRRA Pub L Tooltip Public Law United States 107 16 text PDF 2001 Jobs and Growth Tax Relief Reconciliation Act of 2003 Pub L Tooltip Public Law United States 108 27 text PDF 2003 Deficit Reduction Act of 2005 Pub L Tooltip Public Law United States 109 171 text PDF 2006 Tax Increase Prevention and Reconciliation Act of 2005 TIPRA Pub L Tooltip Public Law United States 109 222 text PDF 2006 College Cost Reduction and Access Act of 2007 Pub L Tooltip Public Law United States 110 84 text PDF 2007 Health Care and Education Reconciliation Act of 2010 Pub L Tooltip Public Law United States 111 152 text PDF 2010 Tax Cuts and Jobs Act of 2017 2017 American Rescue Plan Act of 2021 2021 Inflation Reduction Act of 2022 2022 Since 1980 four reconciliation bills have passed Congress but were vetoed by the president 47 Balanced Budget Act of 1995 H R 2491 vetoed December 6 1995 Taxpayer Refund and Relief Act of 1999 H R 2488 vetoed September 23 1999 Marriage Tax Relief Reconciliation Act of 2000 H R 4810 vetoed August 5 2000 Restoring Americans Healthcare Freedom Reconciliation Act of 2015 vetoed January 8 2016 See also editCongressional Budget and Impoundment Control Act of 1974 Filibuster in the United States Nuclear optionNotes edit Reconciliation is not the only legislative process not subject to a Senate filibuster but other processes such as trade promotion authority only apply in narrow circumstances 9 The Vote a Rama does not conflict with the twenty hour limit on debate over reconciliation bills because that limit applies only to debate and not to the process of voting on amendments 11 Currently the Byrd Rule prevents an increase in the deficit beyond a ten year budget window Some members of Congress have proposed extending the budget window to 20 or more years 14 Republican Scott Brown won a special election held to fill the vacancy caused by Kennedy s death 31 References edit Davis Jeff January 19 2010 How Reconciliation Would Work The New Republic Retrieved August 4 2019 Reynolds Molly E 2022 A Free Range Chicken that Can Run Wherever the Majority Wants It To Budget Reconciliation and the Contemporary U S Senate The Forum 19 4 629 647 doi 10 1515 for 2021 2035 ISSN 1540 8884 S2CID 245802229 a b c Reich David Kogan Richard November 9 2016 2015 Introduction to Budget Reconciliation Center on Budget and Policy Priorities Retrieved July 18 2017 Senate Democrats can now pass more bills with 51 votes through budget reconciliation after parliamentarian ruling Vox Democrats reconciliation strategy dealt blow by Senate parliamentarian Roll Call June 2 2021 Retrieved June 28 2021 Lynch 2016 p 1 a b Jacobi amp Van Dam 2013 pp 30 32 Davis Jeff October 15 2017 The Rule That Broke the Senate Politico Retrieved March 29 2019 Reynolds 2017 pp 6 8 Jacobi amp Van Dam 2013 p 25 Jacobi amp Van Dam 2013 p 31 Jacobi amp Van Dam 2013 pp 31 32 Heniff Jr Bill November 22 2016 The Budget Reconciliation Process The Senate s Byrd Rule Washington DC Congressional Research Service Retrieved April 19 2019 Jagoda Naomi June 28 2017 Rift opens in GOP over budget strategy The Hill Retrieved March 29 2019 Jacobi amp Van Dam 2013 p 38 Young Jeffrey February 17 2010 Healthcare reform and reconciliation a bad mix ex parliamentarian says The Hill Retrieved March 2 2010 Rosenbaum David E May 8 2001 Rules Keeper Is Dismissed By Senate Official Says The New York Times ISSN 0362 4331 Retrieved April 24 2017 Jacobi amp Van Dam 2013 pp 30 31 a b c Matthews Dylan November 23 2016 Budget reconciliation explained Vox Retrieved March 29 2019 Jacobi amp Van Dam 2013 pp 3 26 28 Meyers Roy T Joyce Philip G 2005 Congressional Budgeting at Age 30 Is It Worth Saving PDF Public Budgeting and Finance Vol 25 pp 68 82 Dove Robert panelist March 12 2010 Use of Senate Filibuster Video Senate Public Affairs Event Washington Connecticut C SPAN event occurs at 0 50 00 0 57 20 Sponsored by the American Enterprise Institute Reynolds 2017 pp 84 85 Jacobi amp Van Dam 2013 pp 32 34 Jacobi amp Van Dam 2013 pp 36 38 Lynch 2018 p 7 Keith and Heniff Jr 2005 pp 17 18 Jacobi amp Van Dam 2013 pp 40 42 Heniff Jr 2016 pp 15 16 Reynolds 2017 pp 125 126 a b Jacobi amp Van Dam 2013 pp 43 45 Heniff Jr 2016 p 18 Analysis The budget rule you ve never heard of that ties Republicans hands on Obamacare The Washington Post Retrieved May 7 2017 Congress Sends Obamacare Repeal to President for First Time NBC News Retrieved May 7 2017 Viebeck Elise September 20 2017 Why Senate Republicans are in such a rush this month on health care The Washington Post Retrieved March 30 2019 Pear Robert Kaplan Thomas July 27 2017 Senate Rejects Slimmed Down Obamacare Repeal as McCain Votes No The New York Times ISSN 0362 4331 Retrieved July 31 2017 Reynolds Molly E December 2 2017 Four lessons from the Senate tax bill Brookings Institution Retrieved March 29 2019 Faler Brian December 20 2017 Senate passes tax bill teeing up final House vote Politico Retrieved March 29 2019 Wagner John December 22 2017 Trump signs sweeping tax bill into law The Washington Post Everett Burgess April 17 2018 McConnell considering vote to make tax cuts permanent Politico Retrieved March 29 2019 American Rescue Plan Inside Biden s 1 9 Trillion Stimulus SmartAsset January 15 2021 Retrieved January 16 2021 Luhby Tami Lobosco Katie January 14 2021 Here s what s in Biden s 1 9 trillion economic rescue package CNN Retrieved January 16 2021 Tankersley Jim Crowley Michael January 14 2021 Here are the highlights of Biden s 1 9 trillion American Rescue Plan The New York Times ISSN 0362 4331 Retrieved January 16 2021 Kapur Sahil Caldwell Leigh Ann February 25 2021 Senate ruling says Democrats can t put 15 minimum wage in Covid relief bill NBC News Retrieved February 26 2021 Biden signs 1 9 trillion American Rescue Plan into law www cbsnews com March 12 2021 Retrieved April 9 2021 Lynch 2018 pp 2 3 Heniff Jr 2016 p 7 Works cited edit Heniff Bill Jr 2016 The Budget Reconciliation Process The Senate s Byrd Rule PDF Congressional Research Service Jacobi Tonja VanDam Jeff 2013 The Filibuster and Reconciliation The Future of Majoritarian Lawmaking in the U S Senate UC Davis Law Review 47 261 doi 10 2139 ssrn 2221712 S2CID 155763015 SSRN 2221712 Keith Robert and Bill Henniff Jr The Budget Reconciliation Process House and Senate Procedures Washington D C Congressional Research Service 2005 Lynch Megan S The Budget Reconciliation Process Timing of Legislative Action Washington D C Congressional Research Service 2016 Lynch Megan S 2018 Budget Reconciliation Measures Enacted Into Law 1980 2017 PDF Washington DC Congressional Research Service Reynolds Molly E 2017 Exceptions to the Rule The Politics of Filibuster Limitations in the U S Senate Brookings Institution Press ISBN 978 0815729969 Further reading editBlumenthal Paul A Brief History of Senate Reconciliation Votes Sunlight Foundation March 3 2010 Dauster Bill The Day the Senate Died Budget Measure Weakens Minority Roll Call May 30 1996 5 reprinted in Congressional Record June 12 1996 vol 142 S6135 36 Dauster Bill The Monster That Ate the United States Senate Public Budgeting and Finance vol 18 no 2 Summer 1998 87 93 Frumin Alan S Congressional Budget in Riddick s Senate Procedure 502 642 Washington D C Government Printing Office 1992 Lynch Megan S The Budget Reconciliation Process Timing of Committee Responses to Reconciliation Directives Washington D C Congressional Research Service 2016 Mann Thomas E Norman J Ornstein Raffaela Wakeman and Fogelson Lubliner Reconciling With the Past with chart The New York Times March 6 2010 Reynolds Molly E 2017 Exceptions to the Rule The Politics of Filibuster Limitations in the U S Senate Brookings Institution Press ISBN 978 0815729969 Smith Hedrick The Power Game New York Ballantine Books 1988 ISBN 0 394 55447 7 Retrieved from https en wikipedia org w index php title Reconciliation United States Congress amp oldid 1219179629, wikipedia, wiki, book, books, library,

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