What’s a Reconciliation Invoice?

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A reconciliation bill is a bill passed by the United States Senate or House of Representatives through a specific legislative process set out in the Congressional Budget Act of 1974. The purpose of reconciliation is to effect policy changes in the federal budget bypassing open-ended debate and modification normally allowed. Unlike a standard bill, a reconciliation bill can be passed with an affirmative vote of only 51 senators. The rules limit debate to 20 hours, limit amendments and prevent filibustering by the minority. To activate a reconciliation bill, Congress must pass a budget resolution concurrent with reconciliation instructions to one or more committees to draft changes to existing spending, tax, or debt limit law that produce a desired improvement in the position government tax.

The original intent of the reconciliation process was to combine the findings of several committees into a single bill and expedite its passage. Reconciliation bills must cover federal budget items, such as taxes, expenses, and the debt limit. Once the committees have developed concrete proposals according to the reconciliation instructions, the Senate Budget Committee combines the individual bills into a single bill. The Senate Budget Committee reviews the calculations used to arrive at each bill, but does not have the right to substantially change component bills, as long as the committee followed the reconciliation instruction. After the Budget Committee repackages the bills into one giant bill, it is “flagged” on the Senate floor for reconciliation.

The reconciliation process differs from the standard operating procedure. A final date for the vote on the final step is set by the limited number of discussion hours. Any proposed change to the bill must be truly relevant to the issue addressed in the bill. For example, an amendment requiring all Americans to shave their heads cannot be proposed for a bill that raises the debt ceiling. Amendments must pass a six-pronged test, called Byrd’s Rule, to be allowed during reconciliation.

Named after Senator Robert Byrd, the Byrd rule was adopted in 1985 with the aim of defining extraneous provisions and, therefore, unsuitable for conciliation. A provision is considered extraneous if it does not lead to changes in expenses or income. Changes in expenditure and revenue must be substantial and not merely incidental to other components of the provision. For example, a proposed amendment that raises taxes and also creates a new Fashion Police regulatory agency would be considered unrelated to a bill to reduce the deficit. If the accrual leads to an increase in expenditure or a decrease in revenue, it must be within the scope and responsibility of the Reconciliation Committee.

Amendments to a reconciliation bill cannot recommend changes to Social Security under the Byrd Rule. Provisions that increase the deficit for years other than those included in the reconciliation measure are also extraneous. If a Senator claims that a provision violates Byrd’s Rule, the Senate Representative rules on this point of order. When a provision violates one of the six aspects of the Byrd Rule in the MP’s opinion, it is removed without a vote. The only way to keep the provision in the bill is for 60 or more senators to vote to waive Byrd’s rule.

The nuclear option, often mistaken for the reconciliation procedure, is a different tactic for responding to a filibuster or other delay strategy. A senator creates a point of order citing constitutional circumstances that require an immediate vote on the proceeding before the senate. The president of the senate pronounces in parliament on the motion of order of the senator. A supporter of the filibuster can appeal the sentence, after which an opponent of the filibuster files an appeal, forcing a vote on the sentence. An affirmative vote by a simple majority on the sentence interrupts the debate and brings the Senate to a vote on the substantive question under consideration.

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