Understanding the Budget Reconciliation Process
TL/DR –
In January, Republicans will control both chambers of Congress plus the White House. However, their majorities in the House and Senate are slim, requiring them to rely on special maneuvers, such as the budget reconciliation process, to pass laws. The budget reconciliation process is a way to move legislation through Congress that avoids the need for a filibuster-proof 60 votes in the Senate, allowing laws to be passed with a simple majority.
Republican Control and Policy Priorities
Beginning in January, Republicans will control both the White House and Congress, preparing for the passage of major policy priorities. However, thin majorities in the House and Senate necessitate strategic moves for the GOP to pass their agenda, such as the budget reconciliation process.
Understanding the Budget Reconciliation Process
This process allows for legislation to pass through Congress without the need for filibuster-proof 60 votes in the Senate. It involves coordination between both chambers of Congress and is limited to legislation that affects the budget, as explained by Samantha Jacoby from the Center on Budget and Policy Priorities. The process has been a valuable tool for both Republicans and Democrats when they hold narrow majorities.
The Relevance of the Budget Reconciliation Process
Given the GOP’s current narrow majority, the budget reconciliation could become a crucial tool in passing their agenda items, such as extending the 2017 tax cuts, border security legislation, potential repeal of some energy programs, and potential cuts on entitlement programs.
Impact of the Budget Reconciliation Process
Due to deficit limits, the budget reconciliation process often leads to creative accounting practices, seen during the 2017 tax cuts. Policymakers, like Garrett Watson from the Tax Foundation, had to ensure the costs of the bill did not increase the net deficit past year 10, resulting in temporary individual tax cuts and permanent corporate tax cuts.
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