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Budget reconciliation is a method Congress may use to consider legislation regarding changes to existing revenue, direct spending, or debt limit laws. It is an expedited process made available under Section 310 of the Congressional Budget Act of 1973 (the Budget Act). Reconciliation allows Congress to pass fiscal legislation with a simple majority (51 votes) in the Senate, rather than the 60 votes typically required to overcome a filibuster.
Reconciliation was originally intended as a tool for making small changes at the end of the budget process. However, in recent years, it has been used more frequently and as a primary method for passing significant policy changes. For instance, in 2025, Congress used reconciliation to pass the “One Big Beautiful Bill” (BBB). The BBB is an authorization bill, which means it creates new programs and sets their funding levels, but it does not actually provide the money for those programs; appropriations are required for that.
- Key Features of Reconciliation:
- Enables passage of tax, spending, and debt limit legislation with a simple majority in the Senate (51 votes)
- Avoids filibuster
- Must relate to spending, revenues, or debt
Steps of Reconciliation Process: A Two-Phase Process
Phase one
Step 1: Budget Resolution is Adopted
- In the Budget Resolution, the House and Senate adopt reconciliation directives (“reconciliation instructions”) to one or more committees.
- Reconciliation directives (also known as reconciliation instructions) are a necessary step if Congress seeks to exercise the expedited procedures enumerated in the Budget Act.
- Reconciliation directive types:
- To change laws providing for spending
- To change laws providing for revenues
- To change the public debt limit
- Reconciliation directive types:
Phase two
Step 2: Committees Draft Legislation
- The assigned committees propose changes to laws within their areas of responsibility, based on the directives in the budget resolution.
- The committees that receive the directive vote to submit their reconciliation recommendations to the Budget Committees of their respective chamber (i.e., the House of Representatives or the Senate). Then those committees assemble and report out the reconciliation bill without any substantive changes.
- Congress generally combines the reconciliation submissions from every committee into a single, omnibus reconciliation measure (ex, The One Big Beautiful Bill).
Step 3: The Floor Votes (simple majority)
- The House and Senate consider it under the rules and expedited procedures under the Budget Act.
- Congress votes on the reconciliation bill. The Senate only needs a simple majority—51 votes—to pass. The main reason for using reconciliation is to let the majority party pass major laws without needing 60 votes.
- Reconciliation bills are “privileged,” meaning they cannot be filibustered (prolonged debate or other tactics to delay or block a vote on a bill) and are subject to limited debate (20 hours).
Step 4: House & Senate pass the same version of the Reconciliation bill
- Differences are resolved between chambers (through a conference committee or amendment exchange, or by having one chamber adopt without change) until the House and Senate pass the same version of the reconciliation bill.
Step 5: The President Signs = Law or The President Doesn’t Sign = Vetoed
- The reconciliation bill was either enacted into law or vetoed.
Restrictions, Rules, and Special Expedited Procedures for Reconciliation
Restrictions on the content of the reconciliation bill:
Points of Order in House and Senate:
- Amendments to the reconciliation legislation cannot increase the deficit
- Reconciliation cannot amend the Social Security Program
Points of order in the Senate Only: Section 313 of the Budget Act—also known as the “Senate’s Byrd rule”—is intended to limit the content of a reconciliation bill to only those changes necessary to align federal spending and revenue laws with the levels adopted in the associated budget resolution (strike provisions that are non-fiscal policy).
Rules, Expedited Procedures, and “Privilege” of Reconciliation bill:
In the Senate:
- Not required to lie over one day before it is considered
- The motion to process is not debatable
- Debate on a reconciliation bill is limited to 20 hours (10 hours for a conference report), meaning cloture is not required to reach final vote
In the House:
- Consideration is typically structured by special rules reported from the House rules committee. Which sets the terms of debate and may permit specified amendments to be offered from the floor
Definitions
Omnibus: a single legislative package that combines multiple smaller bills into one massive bill, requiring only one vote in each house of Congress.
The Congressional Budget Act of 1973 (the Budget Act): This bill revolutionized U.S. fiscal policy by establishing the formal budget process and reconciliation as an avenue for allowing for adjustments of spending and revenue levels that align with the budget resolution, the House and Senate Budget committees, and the Congressional Budget Office (CBO).
Cloture: procedure in the U.S. Senate that allows for a supermajority vote (60 votes or ⅗ of all sworn senators) to end a filibuster and limit further debate on a bill, amendment, or nominations to 30 hours
Sources:
Gorman, Tori. “The Reconciliation Process: Frequently Asked Questions | Congress.gov | Library of Congress.” Congress.gov, 6 March 2025, https://www.congress.gov/crs-product/R48444. Accessed 27 January 2026.