Basics

The House and Senate often use the annual budget process to communicate their broad visions for the size and role of the federal government and set their priorities for federal revenues and spending. This annual budget process provides a pathway free of some procedural obstacles that limit significant changes to tax policy and entitlement spending. One of the main budget features  is “reconciliation” with its long history of enabling major legislative accomplishments.

Budget reconciliation is a legislative procedure made available by the 1974 Congressional Budget and Impoundment Control Act. It allows for expedited consideration of certain and specified changes in law to align spending, revenue, and the debt limit with agreed-upon budget targets. Over the Act’s 50-year history, 23 budget reconciliation bills have been enacted.