Budget reconciliation became a thing as an optional procedure under the Congressional Budget Act of 1974. That act requires Congress to come up with a budget resolution every year, and that resolution can instruct the committees to craft bills that would reconcile current law with the decided-upon budget plan. The main advantage of legislation developed with it is that it is considered under expedited procedures on both the House and Senate, and it is not subject to the 60-vote threshold in the Senate that has killed everything good any Democratic president has tried to do since 2008. It begins with a resolution that instructs the relevant committees in both the House and Senate to draw up legislation to meet a budget specified within the resolution—the bill that the committees finalize must either reduce or increase the federal deficit by no less or no more than the resolution determines. Anything included in the legislation after it is combined, or reconciled, by the House and Senate has to thus change either spending or revenue. Sort of. Budge reconciliations can’t touch Social Security, they can’t increase the deficit in a 10-year window, and they are limited to federal spending or revenue. Mostly.
The “sort of” and “mostly” as a limit in the Senate’s rather expansive power to decide what it wants, one has a simple majority. The Congressional Budget Office and the Senate parliamentarian act as the referees for the process, the CBO making the budget projections and the parliamentarian ruling what provisions can be included depending on the degree to which a provisions budget impact is “incidental”—does it impact spending or revenue—or not. If the Parliamentarian rules it incidental under the Byrd rules (a tightening up of the process spearheaded by then-Sen. Robert Byrd in 1958), then it comes out. That is unless the president of the Senate, the person sitting in the chair who in this case would be Vice President Kamala Harris, overrules the parliamentarian. That hasn’t happened frequently, but we also haven’t been in a global pandemic that’s crippling the economy frequently.
One authority on the federal budget and Senate rules believes that even the minimum wage increase could be passed in reconciliation, along with the rest of the provisions—including another round of direct $1,400 payments, increasing and extending emergency unemployment benefits, hundreds of billions in aid to state and local government and schools, funding for vaccine production and distribution, expanding testing and tracing, as well as other proposals. Bill Dauster, who served as deputy chief of staff to former Senate Majority Leader Harry Reid, “said in a guest op-ed column for CQ Roll Call that a minimum wage boost has enough budgetary impact to be considered under the Byrd rule.”
Now that McConnell has caved to allow the Senate to organize, the committees can start the work of drafting their components of the reconciliation bill. There’s a hard deadline for them to get it accomplished—another unemployment cliff in March, because that’s as long as Senate Republicans would let that go. There’s also that matter of an impeachment hearing that begins in a couple of weeks. The House, Yarmuth said Monday, is on it: “we will be prepared to go to the floor as early as next week.”