The FY21 joint budget resolution under consideration by the House and Senate will give “reconciliation” instructions to 11 authorizing committees, directing them to report legislation related to spending, revenue, or debt. The Democrats’ joint resolution carves out an addition $1.9 trillion in deficit spending by changing the top level discretionary spending amount for FY21.
The 3 committees with the largest instructions are:
- Finance ($1.296 trillion)
- Health, Education, Labor, and Pensions ($305 billion)
- Baking, Housing, and Urban Affairs ($89 billion)
The deadline to report legislation is February 16th.
The reconciliation process can be used as a vehicle to pass large agenda items such as a minimum wage increase, COVID relief, and additional stimulus checks, as long as it is related to the budget. Congress is limited to one reconciliation measure each year from each of the categories of direct spending, revenue and the debt limit.
There are various restrictions as to how this process can be used. In the Senate, reconciliation bills are not subject to the filibuster (can pass by simple majority) and amendments must be germane to the bill, however the Byrd Rule applies which limits the provisions included. For a more detailed overview, you can read here.