Glossary

Budget reconciliation

A fast-track budget process that lets the Senate pass certain tax and spending legislation by simple majority, without a filibuster.

Also called: reconciliation, reconciliation bill

Budget reconciliation is a procedure created by the Congressional Budget Act of 1974. It allows Congress to pass bills that change spending, revenue or the debt limit with a simple majority in the Senate, with debate limited to 20 hours, so that the minority cannot use the filibuster.

The process begins with a budget resolution adopted by both chambers containing "reconciliation instructions" directing committees to produce legislation meeting specified targets. The resulting bill is then considered under expedited rules. Each reconciliation bill must follow the byrd rule, which limits it to provisions with a direct budgetary effect, and the Senate parliamentarian advises on which provisions qualify. A single budget resolution may cover only one reconciliation bill per subject per fiscal year.

Reconciliation has been used for major measures by both parties, including the 2017 tax law, the 2021 American Rescue Plan and the 2022 Inflation Reduction Act. Supporters say it allows a governing majority to act on budget priorities; critics say it encourages partisan, rushed legislating and forces lawmakers to shape policy around procedural rules, such as time limits on tax cuts. Its constraints are enforced largely through scoring by the Congressional Budget Office.

Last reviewed November 8, 2026

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Related terms

Byrd rule A Senate rule that strips from reconciliation bills any provision that is extraneous to the budget or increases deficits beyond the budget window. Cloture The Senate procedure for ending debate on a measure, normally requiring three-fifths of senators. Filibuster The use of extended debate or the threat of it to delay or block Senate action, effectively requiring 60 votes for most bills. Appropriations The laws through which Congress grants federal agencies authority to spend money each year on discretionary programs. CBO score The Congressional Budget Office's nonpartisan estimate of how a bill would change federal spending, revenue and deficits.