To trigger the reconciliation process, Congress passes a concurrent resolution on the budget instructing one or more committees to report changes in law affecting the budget by a certain date. If the budget instructs more than one committee, then those committees send their recommendations to the Budget Committee of their House, and the Budget Committee packages the recommendations into a single omnibus bill. In the Senate, the reconciliation bill then gets only 20 hours of debate and amendments are limited. Only one reconciliation bill can be passed in any given year.[4]
A reconciliation bill is a bill containing changes in law recommended pursuant to reconciliation instructions in a budget resolution. If the instructions pertain to only one committee in a chamber, that committee reports the reconciliation bill. If the instructions pertain to more than one committee, the House Budget Committee reports an omnibus reconciliation bill, but it may not make substantive changes in the recommendations of the other committees.[31]
Former Senator Judd Gregg explained the complex sequence of steps involved in reconciliation. He emphasizes the complexity of the process, especially if there is a deep partisan divide:[32]
Congress passes a budget resolution, with a deadline of April 15. No presidential signature is needed; sometimes the resolution is delayed or never passed.
The budget goes to both houses.
It goes to the Senate with a special rule: it can pass with a majority and cannot be filibustered. Other legislation can be filibustered and requires 60 votes to end the filibuster.
The budget cannot affect entitlements such as Medicare unless the budget includes "reconciliation instructions." In that case, the Byrd rule applies and the primary result must be to reduce entitlement spending. Gregg notes, "If the budget calls for more revenue to reduce the deficit, then reconciliation can be used to produce that revenue via fees or taxes." A reconciliation instruction is a provision in a budget resolution directing one or more committees to submit legislation changing existing law in order to bring spending, tax revenues, or the debt ceiling into conformity with the budget resolution. The instructions specify the committees to which they apply, indicate the appropriate dollar changes to be achieved, and usually provide a deadline by which the legislation is to be reported or submitted.[33]
After the changes are made, the Budget Committees consolidate them into one bill that is voted on by both houses; it needs a majority in the Senate.
The final reconciliation covers government spending and goes to the president who can sign it or veto it; the veto can be overturned by a two-thirds majority in both houses.
