Jeff Bingaman United States Senator from New Mexico

The budget reconciliation process was created in 1974, and first used in 1980, to fine tune revenue and spending levels outlined in a Congressionally-passed budget blueprint. What makes this legislation unique is that it cannot be filibustered in the U.S. Senate, which means it requires a simple majority (more than 50 votes) to pass.

Though it is primarily used to affect the nation's budget, reconciliation has been used on several occasions to pass major pieces of legislation. Popular laws created through legislation include welfare reform in 1996 and the creation of the State Children's Health Insurance Program in 1997; both were passed by a Republican Congress and signed into law by former President Bill Clinton, a Democrat. The $1 trillion tax cuts enacted under former President George W. Bush (2001, 2003, and 2005) were also passed through reconciliation.

The reconciliation process is currently being discussed as a means to help enact health insurance reform. But it is not intended to be the main health insurance reform bill. Rather, it is expected to incorporate a narrow list of health care-related provisions that would simply be changes to the Senate-passed health care bill.

Under a plan being discussed in Congress, the House of Representatives would approve the Senate's already-passed health reform bill, the Patient Protection and Affordable Care Act.  This bill passed the Senate with a 60-vote supermajority last December, and with House support could be sent immediately to President Obama for signature.

Then, a narrowly targeted set of changes intended to improve the reform legislation would be included in a reconciliation bill that would be sent to the President after passing the House and the Senate.