Blog: Budget Reconciliation Process Breakdown
Congress’ proposed $3.5 trillion budget reconciliation bill is a bold investment in America. It follows the already historic $1 trillion bipartisan infrastructure plan, known as the INVEST in America Act, and plans for wider-ranging investments. Chief among these are investments to address climate change that build upon the infrastructure developments planned under the INVEST in America Act. In particular, the investments under the budget reconciliation bill will provide the country with much-needed help for critical restoration and resilience projects aimed at reducing drought and forest fires, and would support meaningful progress on environmental justice while creating millions of jobs.
A budget reconciliation bill is a compilation of bills from each of several committees, like the House Natural Resources Committee. Each committee works toward a target amount, adjusting their financing schemes-- from revenue to debt limits-- in their own bills, which are then compiled together into a larger bill; unlike a traditional bill, budget reconciliation bills cannot be filibustered and needs a simple majority to pass.1
With many in Congress warning of the costs of increases in social spending and infrastructure spending, the Senate Budget Committee has indicated that these costs can be afforded with expected long-term economic growth, new tax revenues, and health care savings.2 The time provided to committees to finalize their bills is relatively slim. The committees in both the House and the Senate would need to have their parts of the bill ready by a September 15th deadline.3 This makes the reconciliation bill process more difficult this year, on top of the Senate being split evenly and intra-party disputes as to the bill’s price tag becoming more pronounced.
The reconciliation bill has mobilized several Congressional committees. The ranging investments planned for social services and infrastructure are massive. Among these are investments planned under the Committee on Agriculture, Nutrition, and Forestry. Around $135 billion will be allocated towards carbon emissions reductions, and addressing forest fires and droughts.4 The bill also includes planned investments by the Energy and Natural Resources Committee. Roughly $198 billion would be invested for the purpose of developing clean energy under new programs such as the Clean Electricity Payment Program.5 These investments add on to planned investments that would occur under the INVEST in America Act, such as electric vehicle infrastructure and making the electrical grid more resilient in the long run.6
HECHO wholeheartedly supports the passage of a buget reconciliation bill that includes investments in the protection of clean air and water, restoration of our forests and other public lands, and environmental justice. We believe these are forward-thinking, wise investment that add to vital infrastructure developments planned under the INVEST for America Act. We urge everyone to call your representative to ensure that these priorities are in the final budget reconciliation bill.
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1 https://budget.house.gov/publications/fact-sheet/budget-reconciliation-basics
2 https://www.cnn.com/2021/08/09/politics/senate-reconciliation-package/index.html
3 https://www.rollcall.com/2021/08/09/democrats-unveil-blueprint-for-3-5t-budget-reconciliation-bill/
4 https://www.npr.org/2021/08/09/1026055615/senate-democrats-release-3-5t-budget-framework
5 https://www.rollcall.com/2021/08/09/democrats-unveil-blueprint-for-3-5t-budget-reconciliation-bill/