By Congresswoman Stephanie Bice
Reconciliation is a serious priority of both the White House and Congress this year. It is a legislative package containing numerous provisions championed by President Trump and Congressional Republicans. Despite all the buzz, the term reconciliation is often misunderstood. Simply put, it’s a statutory process meant to streamline budget-related legislation under specific guidelines.
The process was created by the Congressional Budget Act of 1974 as a procedural tool to help Congress bring federal spending and taxes in line with budget resolutions. The process has been used 22 times successfully, while five other reconciliation bills have passed the Congress but been vetoed by the President. It begins when Congress passes a budget resolution. This resolution doesn’t become law or require a presidential signature but instead sets an overall revenue and spending level. Within that framework, Congress can include what are known as reconciliation instructions that direct specific committees to draft legislation meeting the targeted fiscal goals. These instructions are limited in scope and must relate directly to revenue, spending, or the federal debt limit.
Once each committee drafts their piece of legislation, the House and Senate consolidate each piece into one bill. It is then considered under special rules in the Senate that limit debate to 20 hours and prohibit the use of a filibuster. That’s the key distinction: reconciliation bills can pass with a simple majority of votes instead of the usual 60 needed to overcome a filibuster. This streamlined process was designed for fiscal matters only. To guard against abuse, the Senate adheres to what’s known as the Byrd Rule. This rule ensures that only provisions with a direct budgetary impact can be included in a reconciliation bill. Anything deemed extraneous, meaning it doesn’t significantly affect revenue or spending, is removed from the bill.
In history both parties have used the reconciliation process. In recent years, Republicans used it in 2017 to pass tax reform, also known as President Trump’s Tax Cuts & Jobs Act. In 2021, Democrats used it to pass their $1.9 trillion COVID relief package. One persistent myth that needs correcting is the claim that Congress can use reconciliation to make changes to Social Security. That is flatly false. Social Security is specifically exempt from reconciliation under the 1974 Budget Act. The law prohibits any reconciliation bill from including provisions that would alter Social Security’s benefit structure or funding mechanisms. So, no matter what, reconciliation cannot be used to cut, expand, or reform Social Security. That issue must be addressed through regular legislative order.
As of now, Congress is still navigating the committee process for this year’s reconciliation bill. We will continue to fight for fiscal responsibility, transparent governance, and the integrity of the legislative process. The American people deserve no less.
