February 3, 2021
Examining the Implications of Budget Reconciliation
This week the House and Senate will consider budget resolutions, which if passed will give the majority in Congress an important tool — reconciliation — to allow for expedited consideration of legislation, most obviously a COVID-19 package. In a new analysis, AAF’s Director of Fiscal Policy Gordon Gray explains how budget reconciliation works and its implications for congressional action in the coming months.
The Fiscal Year 2021 Budget Resolutions under consideration by the House and Senate include reconciliation instructions to 12 House committees and 11 Senate committees. All of the instructions directed committees to report changes in laws within their jurisdictions that increase the deficit by a combined $1.889 trillion. It is important to note that this budget resolution does not include instructions to increase the debt limit.