Reconciliation bill definition

A reconciliation bill is a special type of legislation Congress may use to make changes to spending, revenue, or the federal debt limit. Reconciliation bills are considered under expedited procedures in the Senate, meaning they can pass with a simple majority (51 votes) and cannot be filibustered.

Reconciliation is intended to help Congress more easily align federal laws with the annual budget resolution.

How do reconciliation bills fit into the budget process?

Each year, Congress passes a budget resolution, which sets overall spending and revenue targets but does not change any laws. If achieving those targets requires modifying existing laws, such as adjusting tax rates, altering mandatory spending programs, or changing the debt ceiling, the budget resolution can include reconciliation instructions.

These instructions tell specific congressional committees to draft legislation that meets the budgetary goals. The resulting legislation is typically combined into a single reconciliation bill, which moves through Congress using special fast-track procedures.

How often can Congress do a reconciliation bill?

Congress can typically pass up to three reconciliation bills per budget resolution, one each for:

• Spending
• Revenue (taxes)
• The debt ceiling

However, these can also be combined, meaning Congress often ends up passing one major reconciliation bill per fiscal year. The process is tied to the budget resolution, so if no budget resolution is adopted, reconciliation cannot occur.

What is the difference between a reconciliation bill and an appropriations bill?

A reconciliation bill is used when Congress’s budget resolution instructs committees to change existing laws related to spending, revenues, or the debt limit so that federal laws match the budget plan.

By contrast, appropriations bills provide new discretionary funding for federal agencies each year. If appropriations bills require changes to permanent law (which is uncommon), Congress passes authorization or stand-alone legislation, not a reconciliation bill.