Reconciliation is a legislative process of the United States Senate that is intended to allow a contentious budget bill to be considered without being subject to filibuster.

Reconciliation was created in 1974 but came into use the 1980s. Reconciliation was used to pass Bill Clinton's 1993 (FY 1994) budget. Bill Clinton wanted to use reconciliation to pass his health care plan, but Robert Byrd persuaded Clinton that the health care plan was out of bounds for a process that is theoretically about budgets.

Since George W. Bush has become president reconciliation has been used more frequently. It was used to pass Bush's two rounds of tax cuts and was used to approve drilling in the Arctic National Wildlife Refuge.

Reconciliation can be used for anything that tangentially relates to the budget. The "Byrd Rule" outlines what Reconciliation can and cannot be used for.

The Byrd rule defines matter to be extraneous in six cases: (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 non-budgetary components of the provision; (5) if it would increase the deficit for a fiscal year beyond those covered by the reconciliation measure; and (6) if it recommends changes in Social Security.

Normally, when a budget is introduced it is only a guideline to house and senate committees. Their individual budgets can still be more than allotted for in the federal budget, and often this is the case. When this happens new budget resolutions are typically made until the committees fail to meet the third one. At this point reconciliation comes into play, and the appropriations figures in the budget resolution are no longer guidelines they are law, and committees must meet those budget figures.

Instances

Reconciliation bills have included:

• Omnibus Reconciliation Act of 1980, Pub. L. No. 96-499 (Dec. 5, 1980).
• Omnibus Budget Reconciliation Act of 1981, Pub. L. No. 97-35 (Aug. 13, 1981).
• Omnibus Budget Reconciliation Act of 1982, Pub. L. No. 97-253 (Sept. 8, 1982).
• Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), Pub. L. No. 97-248 (Sept. 3, 1982).
• Omnibus Budget Reconciliation Act of 1983, Pub. L. No. 98-270 (Apr. 18, 1984).
• Deficit Reduction Act of 1984 (DEFRA), Pub. L. No. 98-369 (July 18, 1984).
• Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), Pub. L. No. 99-272 (Apr. 7, 1986).
• Omnibus Budget Reconciliation Act of 1986, Pub. L. No. 99-509 (Oct. 21, 1986).
• Omnibus Budget Reconciliation Act of 1987, Pub. L. No. 100-203 (Dec. 22, 1987).
• Omnibus Budget Reconciliation Act of 1989, Pub. L. No. 101-239 (Dec. 19, 1989).
• Omnibus Budget Reconciliation Act of 1990, Pub. L. No. 101-508 (Nov. 5, 1990).
• Omnibus Budget Reconciliation Act of 1993, Pub. L. No. 103-66 (Aug. 10, 1990).
• Balanced Budget Act of 1995, H.R. 2491, 104th Cong. (1995) (vetoed Dec. 6, 1995).
• Personal Responsibility and Work Opportunity Reconciliation Act of 1996, Pub. L. No. 104-193 (Aug. 22, 1996).
• Balanced Budget Act of 1997, Pub. L. No. 105-33 (Aug. 5, 1997).
• Taxpayer Relief Act of 1997, Pub. L. No. 105-34 (Aug. 5, 1997).
• Taxpayer Refund and Relief Act of 1999, H.R. 2488, 106th Cong. (1999) (vetoed Sept. 23, 1999).
• Marriage Tax Relief Reconciliation Act of 2000, H.R. 4810, 106th Cong. (2000) (vetoed Aug. 5, 2000).
• Economic Growth and Tax Relief Reconciliation Act of 2001, Pub. L. No. 107-16 (June 7, 2001).
• Jobs and Growth Tax Relief Reconciliation Act of 2003, Pub. L. No. 108-27 (May 28, 2003).
• Deficit Reduction Act of 2005, Pub. L. No. 109-171 (Jan. 8, 2006).
• Tax Relief Act of 2005, H.R. 4297, 109th Cong. (2005) (passed by Senate and cleared for President May 11, 2006).

References

• 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.
• Keith, Robert, and Bill Henniff Jr. The Budget Reconciliation Process: House and Senate Procedures. Washington, D.C.: Congressional Research Service, 2005.
• Smith, Hedrick. The Power Game. New York: Ballantine Books, 1988.

United States Senate