This is the second in a series of blog posts on the federal budget process and how Congress funds early childhood programs. Read the first blog post: Federal Budget Process: A Guide for Early Childhood Advocates
Earlier this month, Senate Republicans scrapped plans for a vote on a third reconciliation package because they lacked enough votes to pass it. On September 1, the House passed a continuing resolution that had previously cleared the Senate, to extend federal funding through December 11 and avert a government shutdown. It has been sent to the President for his signature.
Reconciliation in Congress is an expedited, fast-track process often used to bring revenue and mandatory spending levels into line with the current budget resolution. Created under the Congressional Budget Act of 1974, over time budget reconciliation has evolved into a powerful tool for the party in control to pass major partisan policy priorities without needing to secure opposition party votes. Recent examples include major tax cuts and parts of the Affordable Care Act and the American Rescue Plan.
Since it was first used in 1980, 23 reconciliation bills have been enacted into law, and four have been vetoed.
How Does it Work?
When Congress adopts a budget resolution, it establishes budgetary goals for the years covered in the resolution. In some cases, it’s necessary to reconcile current law with the fiscal objectives of the budget resolution.
Once a reconciliation bill is on a chamber’s calendar, the House and Senate consider it under the rules and expedited procedures in the Budget Act.
Restrictions on a Reconciliation Bill
The instructions in a budget resolution set the budgetary and jurisdictional boundaries of a reconciliation bill.
⇒ Amendments to reconciliation legislation cannot increase the deficit.
⇒ Reconciliation legislation cannot amend the Social Security program.
⇒ Senate restrictions limit procedural options to keep debate on topic and brief.
What is the Byrd rule?
Named after former Senator Robert Byrd (D-W.V.), who served as both the majority and minority leader in the Senate. Incorporated into the Congressional Budget Act of 1974, it prevents lawmakers from including provisions in a reconciliation bill that do not have a direct enough impact on the federal budget.
How does Congress handle disagreements in a reconciliation bill?
The House and Senate must approve the same version of a reconciliation bill before it can become law. Resolving differences can be accomplished by a conference committee, an exchange of amendments or by one chamber passing the legislation of the other without any changes. After it’s passed by both chambers, the bill is sent to the President who can sign it into law or veto it.
