How One Party Can Force a Legislative Agenda Without Compromise

May 1, 2025, 3:10 PM UTC

When a political party has gained control over the House, Senate, and White House, but only holds a slim majority, they often turn to a process called budget reconciliation. That process allows the majority to turn their legislative agenda into law without being blocked with a Senate filibuster by the minority party.

However, budget reconciliation is restricted to issues concerning taxes, spending, or the debt limit and must adhere to specific rules that ensure the bill’s focus remains budgetary. Over the years, Democrats have used budget reconciliation to pass a major climate law, while Republicans have used it to pass tax cuts. As political polarization intensifies, reconciliation has become an essential tool for the majority party, effectively becoming their legislative “secret weapon.”

This video is a look at how the budget reconciliation process works.

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To contact the producer on this story: Paul Detrick in Washington at pdetrick@bloombergindustry.com

To contact the editors responsible for this story: Andrew Satterat asatter@bloombergindustry.com; Josh Blockat jblock@bloombergindustry.com

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