Budget Reconciliation Measures Enacted into Law Since 1980
Budget Reconciliation Measures Enacted into
Law Since 1980
Updated November 2, 2022
Congressional Research Service
https://crsreports.congress.gov
R40480
Budget Reconciliation Measures Enacted into Law Since 1980
Summary
The budget reconciliation process is an optional procedure that operates as an adjunct to the
budget resolution process established by the Congressional Budget Act of 1974. The chief
purpose of the reconciliation process is to enhance Congress’s ability to change current law in
order to bring revenue, spending, and debt-limit levels into conformity with the policies of the
annual budget resolution.
This report identifies and briefly summarizes the 23 budget reconciliation measures enacted into
law since 1980, when reconciliation procedures were first used by both chambers.
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Contents
The Reconciliation Process ............................................................................................................. 1
Reconciliation Legislation Enacted Since 1980 .............................................................................. 1
Tables
Table 1. Budget Resolutions and Resultant Reconciliation Acts Since 1980 .................................. 2
Appendixes
Appendix. Reconciliation Measures Enacted into Law Since 1980 ................................................ 4
Contacts
Author Information ........................................................................................................................ 12
Congressional Research Service
Budget Reconciliation Measures Enacted into Law Since 1980
his report identifies and briefly summarizes the 23 budget reconciliation measures enacted
into law since 1980, when reconciliation procedures were first used by both chambers.
T The Reconciliation Process
The budget reconciliation process is an optional procedure that operates as an adjunct to the
budget resolution process established by the Congressional Budget Act of 1974. The chief
purpose of the reconciliation process is to enhance Congress’s ability to change current law in
order to bring revenue, spending, and debt-limit levels into conformity with the policies of the
annual budget resolution.1
Reconciliation is a two-stage process. First, reconciliation directives are included in the budget
resolution, instructing the appropriate committees to develop legislation achieving the desired
budgetary outcomes. Reconciliation directives instruct specified committees to develop
legislation changing existing law in order to alter revenue, spending, or debt-limit levels to
conform with budget resolution policies. Over the years, compliance with reconciliation
directives has been determined on the basis of the net revenue or spending effects of all changes
in the legislation. A particular reconciliation measure, therefore, may have included changes that
raised spending as well as changes that reduced spending, changes that raised revenue as well as
changes that reduced revenue, or both, and still adhered to the overall budgetary goals.
If the budget resolution instructs more than one committee in a chamber, then the instructed
committees submit their legislative recommendations to their respective Budget Committees by
the deadline prescribed in the budget resolution; the Budget Committees incorporate them into an
omnibus budget reconciliation bill without making any substantive revisions. In cases where only
one committee has been instructed, the process allows that committee to report its reconciliation
legislation directly to its parent chamber, thus bypassing the Budget Committee.
The second step involves consideration of the resultant reconciliation legislation by the House
and Senate under expedited procedures. Among other things, debate in the Senate on any
reconciliation measure is limited to 20 hours (and 10 hours on a conference report), and
amendments must be germane and not include extraneous matter. The House Rules Committee
typically recommends a special rule for the consideration of a reconciliation measure in the
House that places restrictions on debate time and the offering of amendments.
If the House and Senate do not reach final agreement on a budget resolution, then the
reconciliation process is not triggered.
Reconciliation Legislation Enacted Since 1980
As an optional procedure, reconciliation has not been used in every year that the congressional
budget process has been in effect.
Since the creation of the budget resolution, there have been 11 years in which Congress did not
come to agreement on a budget resolution: FY1999, FY2003, FY2005, FY2007, FY2011,
FY2012, FY2013, FY2014, FY2015, FY2019, and FY2020.2
1 For background information on the budget reconciliation process, see CRS Report R44058, The Budget
Reconciliation Process: Stages of Consideration, by Megan S. Lynch and James V. Saturno.
2 For more information on years in which Congress did not reach agreement on a budget resolution, see CRS Report
R44296, Deeming Resolutions: Budget Enforcement in the Absence of a Budget Resolution, by Megan S. Lynch.
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Beginning with the first use of reconciliation by both the House and Senate in 1980,
reconciliation has been used in a majority of years. Congress has sent the President 27
reconciliation acts over the years: 23 were signed into law, President Clinton vetoed three, and
President Obama vetoed one (and the vetoes were not overridden). The 27 reconciliation
measures sent to the President are shown in Table 1.
Table 1. Budget Resolutions and Resultant Reconciliation Acts Since 1980
Fiscal
Budget
Date
Year
Resolution
Resultant Reconciliation Act(s)
Enacted
1981
H.Con.Res. 307
Omnibus Reconciliation Act of 1980 (P.L. 96-499)
12-05-80
1982
H.Con.Res. 115
Omnibus Budget Reconciliation Act of 1981 (P.L. 97-35)
08-13-81
1983
S.Con.Res. 92
Tax Equity and Fiscal Responsibility Act of 1982 (P.L. 97-248)
09-03-82
Omnibus Budget Reconciliation Act of 1982 (P.L. 97-253)
09-08-82
1984
H.Con.Res. 91
Omnibus Budget Reconciliation Act of 1983 (P.L. 98-270)
04-18-84
1986
S.Con.Res. 32
Consolidated Omnibus Budget Reconciliation Act of 1985 (P.L. 99-
04-07-86
272)
1987
S.Con.Res. 120
Omnibus Budget Reconciliation Act of 1986 (P.L. 99-509)
10-21-86
1988
H.Con.Res. 93
Omnibus Budget Reconciliation Act of 1987 (P.L. 100-203)
12-22-87
1990
H.Con.Res. 106
Omnibus Budget Reconciliation Act of 1989 (P.L. 101-239)
12-19-89
1991
H.Con.Res. 310
Omnibus Budget Reconciliation Act of 1990 (P.L. 101-508)
11-05-90
1994
H.Con.Res. 64
Omnibus Budget Reconciliation Act of 1993 (P.L. 103-66)
08-10-93
1996
H.Con.Res. 67
Balanced Budget Act of 1995 (H.R. 2491)
12-06-95
(vetoed)
1997
H.Con.Res. 178
Personal Responsibility and Work Opportunity Reconciliation Act
08-22-96
of 1996 (P.L. 104-193)
1998
H.Con.Res. 84
Balanced Budget Act of 1997 (P.L. 105-33)
08-05-97
Taxpayer Relief Act of 1997 (P.L. 105-34)
08-05-97
2000
H.Con.Res. 68
Taxpayer Refund and Relief Act of 1999 (H.R. 2488)
09-23-99
(vetoed)
2001
H.Con.Res. 290
Marriage Tax Relief Reconciliation Act of 2000 (H.R. 4810)
08-05-00
(vetoed)
2002
H.Con.Res. 83
Economic Growth and Tax Relief Reconciliation Act of 2001 (P.L.
06-07-01
107-16)
2004
H.Con.Res. 95
Jobs and Growth Tax Relief Reconciliation Act of 2003 (P.L. 108-
05-28-03
27)
2006
H.Con.Res. 95
Deficit Reduction Act of 2005 (P.L. 109-171)
02-08-06
Tax Increase Prevention and Reconciliation Act of 2005 (P.L. 109-
05-17-06
222)
2008
S.Con.Res. 21
College Cost Reduction and Access Act of 2007 (P.L. 110-84)
09-27-07
2010
S.Con.Res. 13
Health Care and Education Reconciliation Act of 2010 (P.L. 111-
03-30-10
152)
2016
S.Con.Res. 11
To provide for reconciliation pursuant to Section 2002 of the
01-08-16
concurrent resolution on the budget for fiscal year 2016 (H.R.
(vetoed)
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Fiscal
Budget
Date
Year
Resolution
Resultant Reconciliation Act(s)
Enacted
3762), often referred to as Restoring Americans’ Healthcare
Freedom Reconciliation Act
2018
H.Con.Res. 71
An Act to provide for reconciliation pursuant to titles II and V of
12-22-17
the concurrent resolution on the budget for fiscal year 2018 (P.L.
115-97), often referred to as the Tax Cuts and Jobs Act
2021
S.Con.Res. 5
American Rescue Plan Act of 2021 (P.L. 117-2)
03-11-21
2022
S.Con.Res. 14
To provide for reconciliation pursuant to title II of S.Con.Res. 14
08-16-22
(P.L. 117-169), often referred to as the Inflation Reduction Act
Source: Prepared by CRS.
Reconciliation practices in the House and Senate vary and change over time. In many years,
spending and revenue changes are incorporated into a single measure. In some years, revenue and
spending changes were segregated into separate reconciliation measures. For the FY2006 budget
cycle, for example, the Deficit Reduction Act of 2005 was a spending reconciliation bill, and the
Tax Increase Prevention and Reconciliation Act of 2005 was a revenue reconciliation bill. Most
recently, however, reconciliation bills have included changes to both spending and revenues.
A brief description of each of the 23 reconciliation measures enacted into law is provided in the
Appendix. The laws are presented in chronological order.
For each reconciliation law listed in the Appendix, some of the major subject areas affected by
the revenue or spending changes are identified, but no determination is made as to whether the
specific changes involved increases or decreases. The subject areas identified range from fairly
specific (e.g., Nuclear Regulatory Commission [NRC] fees) to quite broad (e.g., Medicare), with
broad subject areas sometimes encompassing dozens or hundreds of separate provisions. Some of
the reconciliation measures included in the listing were very lengthy and complicated, involving
the legislative proposals of many different House and Senate committees. Accordingly, the
subject areas identified in the listing should be regarded as illustrative and not comprehensive.
The source from which the summary information was drawn is indicated for each law by a
footnote at the end of the summary.
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Budget Reconciliation Measures Enacted into Law Since 1980
Appendix. Reconciliation Measures Enacted into
Law Since 1980
1. Omnibus Reconciliation Act of 1980 (P.L. 96-499, December 5,
1980)
This act, signed into law by President Jimmy Carter, was the first reconciliation bill to pass the
House and Senate. It was estimated to reduce the FY1981 deficit by $8.276 billion, including
$4.631 billion in outlay reductions and $3.645 billion in revenue increases.
Major spending changes affected such areas as child nutrition subsidies; interest rates for student
loans; “look back” cost-of-living adjustment (COLA) benefit provisions for retiring federal
employees; highway obligational authority; railroad rehabilitation, airport development, planning,
and noise control grants; veterans’ burial allowances; disaster loans; Medicare and Medicaid;
unemployment compensation; and Social Security.
Major revenue changes affected such areas as mortgage subsidy bonds, payment of estimated
corporate taxes, capital gains on foreign real estate investments, payroll taxes paid by employers,
telephone excise taxes, and the alcohol import duty.3
2. Omnibus Budget Reconciliation Act of 1981 (P.L. 97-35, August
13, 1981)
President Ronald Reagan used this act—along with a nonreconciliation bill, the Economic
Recovery Tax Act of 1981 (P.L. 97-34)—to advance much of his agenda in his first year in office.
This act was estimated to reduce the deficit by $130.6 billion over three years, covering FY1982-
FY1984.
Major spending changes affected such areas as health program block grants, Medicaid, television
and radio licenses, food stamps, dairy price supports, energy assistance, Conrail, education
program block grants, Impact Aid and the Title I compensatory education program for
disadvantaged children, student loans, and the Social Security minimum benefit.4
3. Tax Equity and Fiscal Responsibility Act of 1982 (P.L. 97-248,
September 3, 1982)
This act, one of two reconciliation measures signed by President Reagan in 1982, was estimated
to increase revenues by $98.3 billion and reduce outlays by $17.5 billion over three years,
covering FY1983-FY1985.
Major spending changes affected such areas as Medicare, Medicaid, aid to families with
dependent children (AFDC), child support enforcement (CSE), supplemental security income
(SSI), unemployment compensation, and interest payments on U.S. savings bonds.
Major revenue changes affected such areas as the alternative minimum tax, medical and casualty
deductions, pension contribution deductions, federal employee payment of the FICA tax for
3 1980 Congressional Quarterly Almanac, pp. 124-130.
4 1981 Congressional Quarterly Almanac, pp. 256-266.
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Medicare coverage, accelerated depreciation and investment tax credits, corporate tax payments,
foreign oil and gas income, corporate tax preferences, construction deductions, insurance tax
breaks, “safe-harbor leasing,” corporate mergers, withholding on interest and dividends, aviation
excise taxes, unemployment insurance, telephone and cigarette excise taxes, and industrial
development bonds.5
4. Omnibus Budget Reconciliation Act of 1982 (P.L. 97-253,
September 8, 1982)
This act, the second of two reconciliation measures signed by President Reagan in 1982, was
estimated to reduce outlays by $13.3 billion over three years, covering FY1983-FY1985.
Major spending changes affected such areas as payments to farmers, dairy price supports, food
stamps, inflation adjustments for federal retirees, lump-sum premiums for Federal Housing
Administration housing insurance, user fees on Veterans Administration–backed home loans,
veterans’ compensation and benefits, and reduction in the membership of the Federal
Communications Commission and the Interstate Commerce Commission.6
5. Omnibus Budget Reconciliation Act of 1983 (P.L. 98-270, April 18,
1984)
Initial consideration of this act occurred in 1983, but final action did not occur until 1984. It was
estimated to reduce the deficit by $8.2 billion over four years, covering FY1984-FY1987.
Major spending changes affected such areas as limitation and delay of federal civilian employee
pay raises, delay of federal civilian and military retirement and disability COLAs, delay of
veterans’ compensation COLAs, and disaster loans for farmers.7
6. Consolidated Omnibus Budget Reconciliation Act of 1985 (P.L.
99-272, April 7, 1986)
Initial consideration of this act occurred in 1985, but final action did not occur until 1986. The act
was estimated to reduce the deficit by $18.2 billion over three years, covering FY1986-FY1988.
Major spending changes affected such areas as student loans, highway spending, veterans’
medical care, Medicare, Medicaid, and trade adjustment assistance.
Major revenue changes affected such areas as the cigarette tax, excise taxes supporting the Black
Lung Trust Fund, unemployment tax exemptions, taxation of railroad retirement benefits, airline
employee income subject to taxation, and the deduction of research expenses of multinational
firms.8
5 1982 Congressional Quarterly Almanac, pp. 29-39 and 199-204.
6 1982 Congressional Quarterly Almanac, pp. 199-204.
7 1983 Congressional Quarterly Almanac, pp. 231-239; and 1984 Congressional Quarterly Almanac, p. 160.
8 1986 Congressional Quarterly Almanac, p. 521 and pp. 555-559.
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7. Omnibus Budget Reconciliation Act of 1986 (P.L. 99-509, October
21, 1986)
The reconciliation measure covered the period of FY1987-FY1989. An estimated $11.7 billion in
deficit reduction contributed to the avoidance of a sequester (i.e., across-the-board spending cuts
in nonexempt programs to eliminate a violation of the applicable deficit target under the Balanced
Budget and Emergency Deficit Control Act) for FY1987.
Major spending changes affected such areas as Medicare, Medicaid, agricultural income support
payments, loan asset sales, federal employee retirement programs, federal subsidy for reduced-
rate postage, federal financing for fishing vessels or facilities, retirement age limits, and
elimination of the trigger for Social Security COLAs.
Major revenue changes affected such areas as the tax treatment of the sale of the federal share of
Conrail, commercial merchandise import fee, increased penalty for untimely payment of withheld
taxes, denial of certain foreign tax credits, and the oil spill liability trust fund.9
8. Omnibus Budget Reconciliation Act of 1987 (P.L. 100-203,
December 22, 1987)
The reconciliation measure covered the period of FY1988-FY1990 and was the final
reconciliation measure signed by President Reagan. Together with an omnibus appropriations act
(P.L. 100-202), the reconciliation act implemented the $76 billion in deficit reduction over
FY1988 and FY1989 called for in a budget summit agreement reached after a sharp decline in the
stock market in October.
Major spending changes affected such areas as Medicare, Medicaid, agricultural target prices,
farm income support payments, deferral of lump-sum retirement payments to federal employees,
Postal Service payments into retirement and health benefit funds, the Guaranteed Student Loan
program, NRC license fees, and National Park user fees.
Major revenue changes affected such areas as home mortgage interest deduction, deduction of
mutual fund expenses, “completed contract” method of accounting, repeal of installment-sales
accounting, “master-limited” partnerships, and accelerated payments of corporate estimated
taxes.10
9. Omnibus Budget Reconciliation Act of 1989 (P.L. 101-239,
December 19, 1989)
The act, signed into law by President George H. W. Bush, was estimated to contain $14.7 billion
in deficit reduction, which represented about half of the deficit reduction envisioned in a budget
summit agreement reached earlier in the year. (The remaining savings were expected to occur
largely in annual appropriations acts.)
Major spending changes affected such areas as Medicare, Medicaid, veterans’ housing loans,
agricultural deficiency payments and dairy price supports, the Supplemental Loans for Students
9 1986 Congressional Quarterly Almanac, pp. 559-576.
10 1987 Congressional Quarterly Almanac, pp. 615-627.
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Budget Reconciliation Measures Enacted into Law Since 1980
program, Federal Communications Commission and NRC fees, vaccine injury compensation
amendments, and the Maternal and Child Health Block Grant program.
Major revenue changes affected such areas as the exclusion for employer-provided education
assistance, targeted jobs tax credit, mortgage revenue bonds, self-employed health insurance,
low-income housing credit, treatment of junk bonds, and research and experimentation credits.11
10. Omnibus Budget Reconciliation Act of 1990 (P.L. 101-508,
November 5, 1990)
This five-year reconciliation act, covering FY1991-FY1995, implemented a large portion of the
deficit reduction required by an agreement reached during a lengthy budget summit held at
Andrews Air Force Base. According to the Senate Budget Committee, the act was estimated to
reduce the deficit by $482 billion over five years, including $158 billion in revenue increases and
$324 billion in spending cuts and debt service savings.
Major spending changes affected such areas as Medicare, Medicaid, agricultural loans, acreage
reduction, deposit insurance premiums, mortgage insurance premiums, collection of delinquent
student loans, Occupational Safety and Health Administration penalties, AFDC, CSE, SSI,
unemployment compensation, child welfare and foster care, Social Security, abandoned mines,
Environmental Protection Agency, federal employee retirement and health benefits, veterans’
compensation and disability payments, airport ticket fees, customs user fees, and tonnage duties.
Major revenue changes affected such areas as individual income tax rates, the alternative
minimum tax, limitation on itemized deductions, excise taxes on alcoholic beverages and tobacco
products, motor fuel excise taxes, and Superfund tax extension.
The public debt limit was increased from $3.123 trillion to $4.145 trillion.12
11. Omnibus Budget Reconciliation Act of 1993 (P.L. 103-66, August
10, 1993)
This five-year reconciliation act, covering FY1994-FY1998, was signed by President Bill Clinton
in the first year of his Administration. According to the Senate Budget Committee, the act
reduced the deficit by $496 billion over five years, including $241 billion in revenue increases
and $255 billion in spending cuts and debt service savings.
Major spending changes affected such areas as Medicare, Medicaid, food stamps, auction of the
radio spectrum, student loan programs, veterans’ benefits, agricultural price supports, crop
insurance, liabilities of the Postal Service, and NRC fees.
Major revenue changes affected such areas as a fuels tax increase, maximum individual income
tax rates, maximum corporate income tax rate, small business tax incentives, empowerment
zones, and unemployment insurance surtax.
The public debt limit was increased from $4.145 trillion to $4.9 trillion.13
11 1989 Congressional Quarterly Almanac, pp. 92-113.
12 1990 Congressional Quarterly Almanac, pp. 138-173.
13 1993 Congressional Quarterly Almanac, pp. 107-139.
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12. Personal Responsibility and Work Opportunity Reconciliation
Act of 1996 (P.L. 104-193, August 22, 1996)
This six-year reconciliation act, covering FY1997-FY2002, was estimated to reduce the deficit by
$54.6 billion over that period.
Major spending changes affected such areas as temporary assistance for needy families (TANF),
work requirements, SSI, CSE, restrictions on benefits for illegal aliens, Child Care and
Development Block Grant, child nutrition, food stamps, teenage pregnancies, and abstinence
education.14
13. Balanced Budget Act of 1997 (P.L. 105-33, August 5, 1997)
This five-year reconciliation act, covering FY1998-FY2002, was one of two reconciliation acts
signed by President Clinton in 1997 and largely contained spending provisions. According to the
Senate Budget Committee, the two acts together reduced the deficit by $118 billion over five
years, including spending cuts and debt service savings of $198 billion and $80 billion in revenue
reductions.
Major spending changes affected such areas as Medicare, Medicaid, children’s health initiative,
electromagnetic spectrum auction, food stamps, TANF, SSI, increased contributions to the Civil
Service Retirement System, subsidized housing, and veterans’ housing.
The public debt limit was increased from $5.5 trillion to $5.95 trillion.15
14. Taxpayer Relief Act of 1997 (P.L. 105-34, August 5, 1997)
The second of the two reconciliation measures enacted in 1997, this five-year reconciliation act,
covering FY1998-FY2002, largely included revenue provisions.
Major revenue changes affected such areas as a child tax credit; education tax incentives
(including the HOPE tax credit, the lifetime learning credit, and education savings accounts);
home office deductions; capital gains tax cut; the “Roth IRA;” gift and estate tax exemptions;
corporate alternative minimum tax repeal; renewal of the work opportunity tax credit; and the
airline ticket tax.16
15. Economic Growth and Tax Relief Reconciliation Act of 2001
(P.L. 107-16, June 7, 2001)
This 11-year reconciliation act, covering FY2001-2011, advanced President George W. Bush’s
tax cut agenda during the first year of his Administration. According to the Senate Budget
Committee, revenue reductions, together with outlay increases for refundable tax credits, reduced
the projected surplus by $1.349 trillion over FY2001–FY2011. The tax cuts were scheduled to
sunset in 10 years in order to comply with the Senate’s ‘‘Byrd rule’’ against extraneous matter in
reconciliation legislation (Section 313 of the Congressional Budget Act of 1974).
14 1996 Congressional Quarterly Almanac, pp. 6-3 through 6-24.
15 1997 Congressional Quarterly Almanac, pp. 2-27 through 2-30 and pp. 2-47 through 2-61.
16 1997 Congressional Quarterly Almanac, pp. 2-27 through 2-46.
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Major revenue changes affected such areas as individual income tax rates, the “marriage penalty,”
child tax credit, estate and gift taxes, individual retirement accounts and pensions, charitable
contributions, education incentives, health insurance tax credit, flexible spending accounts,
research and experimentation tax credit, and adoption tax credit and employer adoption assistance
programs.17
16. Jobs and Growth Tax Relief Reconciliation Act of 2003 (P.L. 108-
27, May 28, 2003)
This 11-year reconciliation act, covering FY2003-2013, was estimated to reduce revenues by
$349.667 billion over that period.
Major revenue changes affected such areas as the acceleration of certain previously enacted tax
reductions (including expansion of the child tax credit and the 10% bracket), increased bonus
depreciation and Section 179 expensing, taxes on dividends and capital gains, the Temporary
State Fiscal Relief Fund, and special estimated tax rules for certain corporate estimated tax
payments.18
17. Deficit Reduction Act of 2005 (P.L. 109-171, February 8, 2006)
This five-year reconciliation act, covering FY2006-FY2010, was one of two reconciliation acts
signed by President George W. Bush in 2006. (Initial consideration of both measures occurred in
2005.) This act, the spending reconciliation bill, was estimated to reduce the deficit over the five-
year period by $38.810 billion.
Major spending changes affected such areas as Medicare, Medicaid, the State Children’s Health
Insurance Program, student loan interest rates and lenders’ yields, electromagnetic spectrum
auction, digital television conversion, grants for interoperable radios for first responders, low-
income home energy assistance program, Federal Deposit Insurance Corporation premium
collections, agricultural conservation programs, Katrina health care relief, and Pension Benefit
Guarantee Corporation premiums.19
18. Tax Increase Prevention and Reconciliation Act of 2005 (P.L. 109-
222, May 17, 2006)
This act, the second of two reconciliation bills enacted in 2006, was the revenue reconciliation
bill. It was estimated to increase the deficit over the five-year period covering FY2006-FY2010
by $69.960 billion.
Major revenue changes affected such areas as tax rates on dividends and capital gains, the
alternative minimum tax for individuals, delay in payment date for corporate estimated taxes,
controlled foreign corporations, Foreign Sales Corporation/ Extraterritorial Income binding
17 See CRS Report RL30973, 2001 Tax Cut: Description, Analysis, and Background, by David L. Brumbaugh et al.
(available to congressional clients upon request).
18 Joint Committee on Taxation, Estimated Budget Effects of the Conference Agreement for H.R. 2, The “Jobs and
Growth Tax Relief Reconciliation Act of 2003,” JCX-55-03, May 22, 2003.
19 See CRS Report RL33132, Budget Reconciliation Legislation in 2005-2006 Under the FY2006 Budget Resolution,
by Robert Keith (available to congressional clients upon request).
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contract relief, elimination of the income limitations on Roth IRA conversions, and withholding
on government payments for property and services.20
19. College Cost Reduction and Access Act of 2007 (P.L. 110-84,
September 27, 2007)
This six-year reconciliation act, covering FY2007-FY2012, was estimated to reduce the deficit
over that period by $752 million.
Major spending changes affected provisions relating to lenders and borrowers involved with the
Federal Family Education Loan program and the William D. Ford Direct Loan program.21
20. Health Care and Education Reconciliation Act of 2010 (P.L. 111-
152, March 30, 2010)
This reconciliation act, which resulted from reconciliation directives in the FY2010 budget
resolution (adopted in 2009) for the five-year period encompassing FY2010-FY2014, modified
the Patient Protection and Affordable Care Act (P.L. 111-148, March 23, 2010) and also contained
changes in federal postsecondary education programs.
According to the Congressional Budget Office and the staff of the Joint Committee on Taxation,
the changes made by the reconciliation act, combined with the changes made by the Patient
Protection and Affordable Care Act, were estimated to reduce the deficit by $109 billion over five
years (FY2010-FY2014) and by $143 billion over 10 years (FY2010-FY2019).
21. An Act to provide for reconciliation pursuant to titles II and V
of the concurrent resolution on the budget for fiscal year 2018 (P.L.
115-97, December 22, 2017)
This reconciliation act, often referred to as the Tax Cuts and Jobs Act, resulted from reconciliation
directives in the FY2018 budget resolution (adopted in October 2017) for the 10-year period
encompassing FY2018-FY2027. The reconciliation act included permanent and temporary
changes to the tax code and directed the Secretary of the Interior to implement a certain oil and
gas leasing program.
More specifically, the act temporarily reduced most individual income tax rates, modified tax
brackets for individuals, increased the standard deduction and the child tax credit, repealed
deductions for personal exemptions, repealed or limited certain itemized deductions, and
increased the exemption amounts for the individual alternative minimum tax. (These temporary
changes took effect on January 1, 2018, and are scheduled to expire after 2025.) The act
permanently repealed the penalties associated with the “individual mandate” (which required that
most people obtain health insurance coverage).
The act made permanent modifications to business taxation. Most notably, the law replaced the
graduated corporate tax rate structure (with a maximum rate of 35%) with a flat 21% tax rate. The
20 See CRS Report RL33132, Budget Reconciliation Legislation in 2005-2006 Under the FY2006 Budget Resolution,
by Robert Keith (available to congressional clients upon request).
21 See CRS Report RL34077, Student Loans, Student Aid, and FY2008 Budget Reconciliation, by Adam Stoll, David P.
Smole, and Charmaine Mercer (available to congressional clients upon request).
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law also provided a reduction from qualified business income of up to 20% for pass-through
businesses. The act also significantly altered the tax treatment of U.S. multinational corporations.
Lastly, the act directed the Secretary of the Interior to implement an oil and gas leasing program
for the coastal plain of the Arctic National Wildlife Refuge and affected oil and gas leases and the
Strategic Petroleum Reserve.
The Congressional Budget Office and the staff of the Joint Committee on Taxation estimated the
legislation to reduce revenue by about $1.65 trillion and decrease outlays by $194 billion over the
2018-2027 period.22 The bill is therefore estimated to increase the deficit by $1.46 trillion over
that period, excluding effects from macroeconomic feedback.23
22. American Rescue Plan Act of 2021 (P.L. 117-2, March 11, 2021)
This reconciliation act resulted from reconciliation directives in the FY2021 budget resolution
(adopted in February 2021) for the 10-year period encompassing FY2021-FY2030.24
The American Rescue Plan Act of 2021 was part of a series of COVID-19-related relief and
economic stimulus legislation25 but was the only such measure enacted through the budget
reconciliation process.
The American Rescue Plan Act of 2021 included a broad array of policies addressing a number of
issues, including tax credits, unemployment benefits, state and local funding, health, housing,
education, and food assistance.
The Congressional Budget Office and the staff of the Joint Committee on Taxation estimated the
legislation to reduce revenue by about $52.98 billion and increase outlays by $1.803 trillion,
thereby increasing federal deficits by approximately $1.856 trillion over the period FY2021-
FY2030.26
22 Letter from Keith Hall, Director, Congressional Budget Office, to Honorable Kevin Brady, Chairman, House
Committee on Ways and Means, December 15, 2017, https://www.cbo.gov/system/files/115th-congress-2017-2018/
costestimate/53415-hr1conferenceagreement.pdf.
23 Ibid. The estimate also states that a portion of the changes in revenues would be from Social Security payroll taxes,
which are off-budget and therefore often excluded from budget totals. Excluding the changes to off-budget revenues,
the legislation is estimated to increase on-budget deficits by about $1.48 trillion. Off-budget entities are excluded by
law from the budget totals. The receipts and disbursements of the Social Security trust funds (the Old-Age and
Survivors Insurance Fund and the Disability Insurance Fund), as well as spending for the Postal Service Fund, are
excluded from the budget totals. These transactions are shown separately in the budget. For more information, see CRS
Report 98-721, Introduction to the Federal Budget Process, coordinated by James V. Saturno.
24 For more information, see CRS Report R46675, S.Con.Res. 5: The Budget Resolution for FY2021, by Megan S.
Lynch and James V. Saturno.
25 Other such measures included the Families First Coronavirus Response Act (P.L. 116-127); the Coronavirus Aid,
Relief, and Economic Security Act (P.L. 116-136); and the Consolidated Appropriations Act, 2021 (P.L. 116-260).
26 Congressional Budget Office, Estimated Budgetary Effects of H.R. 1319, American Rescue Plan Act of 2021, as
Passed by the Senate on March 6, 2021, March 10, 2021, https://www.cbo.gov/publication/57056. The estimate also
states that a portion of the changes in revenues are off-budget and therefore often excluded from budget totals.
Excluding the changes to off-budget revenues, the legislation is estimated to increase on-budget deficits by about
$1.863 trillion. As stated above, off-budget entities are excluded by law from the budget totals.
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Budget Reconciliation Measures Enacted into Law Since 1980
23. To provide for reconciliation pursuant to title II of S. Con. Res.
14. (P.L. 117-169, August 16, 2022)
This reconciliation act, often referred to as the Inflation Reduction Act, resulted from
reconciliation directives in the FY2022 budget resolution (adopted in August 2021) for the 10-
year period encompassing FY2022-FY2031.27
The Inflation Reduction Act included a broad array of policies including corporate tax changes,
funding for the Internal Revenue Service, prescription drug pricing reform, Affordable Care Act
subsidies, and energy-related spending and revenue changes.
The Congressional Budget Office and the staff of the Joint Committee on Taxation estimated the
legislation to decrease federal deficits by $90 billion over the FY2022-FY2031 period.28
Author Information
Megan S. Lynch
Specialist on Congress and the Legislative Process
Acknowledgments
This report was originally written by Robert Keith, former specialist at the Congressional Research Service.
The listed author updated the report and is available to answer questions from congressional clients
concerning reconciliation and the budget process.
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
shared staff to congressional committees and Members of Congress. It operates solely at the behest of and
under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in
connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not
subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in
its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or
material from a third party, you may need to obtain the permission of the copyright holder if you wish to
copy or otherwise use copyrighted material.
27 For more information, see CRS Report R46893, S.Con.Res. 14: The Budget Resolution for FY2022, by Megan S.
Lynch.
28 Congressional Budget Office, Estimated Budgetary Effects of H.R. 5376, the Inflation Reduction Act of 2022, August
3, 2022, https://www.cbo.gov/publication/58366.
Congressional Research Service
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