Reconciliation (Senate)

Reconciliation was created in 1974 but was seldom used until the 2000s. Reconciliation was used to pass Bill Clinton's 1993 (FY 1994) budget, but for little else in the 1990s. Bill Clinton wanted to use reconciliation to pass his health care plan, but Robert Byrd persuaded Clinton that the health care plan, was out of bounds for a process that is theoretically about budgets.

Since George W. Bush has become president reconciliation has been used more frequently. It was used to pass Bush's two rounds of tax cuts and was used to approve drilling in the Arctic National Wildlife Refuge.

Reconciliation can be used for anything that tangentially relates to the budget. The "Byrd Rule" outlines what Reconcilation can and cannot be used for.

The Byrd rule defines matter to be extraneous in six cases: (1) if it does not produce a change in outlays or revenues; (2) if it produces an outlay increase or revenue decrease when the instructed committee is not in compliance with its instructions; (3) if it is outside the jurisdiction of the committee that submitted the title or provision for inclusion in the reconciliation measure; (4) if it produces a change in outlays or revenues which is merely incidental to the non-budgetary components of the provision; (5) if it would increase the deficit for a fiscal year beyond those covered by the reconciliation measure; and (6) if it recommends changes in Social Security.