A Simplified Guide To Budget Reconciliation

Budget reconciliation is a legislative process in the U.S. Congress that streamlines the passage of certain budget-related bills. Rooted in Section 310 of the Congressional Budget Act, reconciliation helps align spending and revenue estimates with the goals outlined in the budget resolution.

What is Reconciliation?

Reconciliation is a tool used to adjust federal spending, taxes, or the debt limit. Its primary aim is to meet targets set in a conferenced budget resolution. Historically, it was used to encourage changes to politically difficult policy matters, such as increasing taxes or cutting spending. To encourage action on often unpopular measures like spending cuts or tax increases, reconciliation benefits from special rules that simplify its passage.