As President Biden pursues a bipartisan Covid-19 relief deal, Senate Democrats are laying the groundwork for passing relief without any Republican votes using a procedural shortcut known as budget reconciliation.
Reconciliation could allow Democrats to fast track key aspects of Biden's agenda, from Covid-19 relief to infrastructure, but the process comes with a strict set of rules attached.
Here's what you need to know:
- What is budget reconciliation? The reconciliation process was set up as part of the 1974 Congressional Budget Act to make it faster and easier to pass legislation related to spending, taxes and debt, because debate on the bills is limited to 20 hours and can be passed on a simple majority vote. Budget reconciliation allows lawmakers to bypass the 60-vote threshold typically required for breaking filibusters and moving legislation forward. Democrats currently control exactly 50 seats in the 100-seat chamber, and Vice President Kamala Harris holds the tie-breaking vote in her capacity as Senate president. That's enough for Democrats to be able to use reconciliation to pass some kinds of legislation.
- What can be passed using budget reconciliation? Bills are only eligible for the budget reconciliation process if they affect federal revenue or spending. They are subject to what's known as the Byrd rule, a multi-pronged test designed to keep out provisions considered extraneous, without any real impact on the budget, or that might affect Social Security. As the committees write their bills, they will try to ensure their proposals will be approved by Senate parliamentarian Elizabeth MacDonough who must enforce the Byrd rule. Senators can challenge the parliamentarian's decisions and vote to waive the Byrd Rule, but they would need a 60 vote majority to do so.
- When has reconciliation been used before? Reconciliation has been used many times by both parties to pass controversial legislation over the objections of the minority party, including former President Barack Obama's Affordable Care Act in 2010 and Trump's sweeping tax cuts in 2017.
- How will budget reconciliation be used for the Covid-19 package? Democratic leaders Nancy Pelosi and Chuck Schumer introduced a budget resolution Monday, the first in a two-step process that will allow the work of writing the coronavirus relief bill in committees to begin. The budget vote now will clear the way for Democrats to potentially pass their relief bill by late February or March after the impeachment trial of former President Trump is completed in the Senate.
Read more about budget reconciliation here.