b'Democrats policy priorities and final passage of legislation.Trump used the procedure to pass the 2017 tax cuts. Although First among these is Senate Republicans power to filibuster,the fiscal tool, depending on how aggressively it is used, could or demand unlimited debate on non-budgetary initiativesface resistance from moderates, Democrats are considering that do not have the backing of a super-majority of 60 sen- using reconciliation for additional coronavirus relief, health ators. Second, are the thin majorities themselves. After lossescare, infrastructure investments, and tax policy. Democrats will in the 2020 elections, Democrats have the slimmest major- actually have as many as three opportunities during the 117th ity in the House since 2001, and under the 50-50 SenateCongress to use reconciliation, as Congress can unlock the split, Democrats cannot afford to lose a single voter in theirspecial procedure in each budget resolution, and lawmakers caucus. Third, are conservative courts. Following Judgenever adopted a fiscal 2021 budget resolution and can still pass Barretts confirmation, the Supreme Court has a 6-3 con- one for fiscal 2022 and fiscal 2023. Technically, Democrats servative majority. In addition, President Trump has installedcould break each reconciliation attempt into three pieces of hundreds of conservative judges across the country. Con- legislationspending, revenues and the debt limitmaking servative judges are unlikely to allow broad interpretationsfor nine bills over two years. Some restrictions exist on how of legislative text. Last, are the Democrats own intra-partyreconciliation can be used; it is not all-powerful. For instance, divisions. While liberal Democrats might withhold supportimplementing budget reconciliation would require Democrats for more moderate legislation in the House, conservativeto wade through procedural obstacles, and any use will face Democrats in the Senate could oppose some major reforms. challenges from Republicans related to the Byrd rule, which The Budget Reconciliation Wildcard. limits the scope of amendments and can kill extraneous items If compromise with Republicans proves futile, the budgetin legislation that some Democrats might push to include, reconciliation process is a wildcard that Senate Democratssuch as minimum-wage increases.are sure to utilize to pass legislation that affects spending,To discuss any of the topics raised in this article, pleaserevenues, or the federal debt limit. Through the reconcilia- contact: James Winslow, Senior Director, Government Affairs, tion process, moving legislation requires just a simple major- (202) 973-0474, james.winslow@sumitomocorp.com.ity rather than the 60-vote threshold to overcome a filibus-ter (Figure 5). The Obama administration used reconciliation to pass the Affordable Care Act in 2010, while President Figure 5Potential Democratic Legislative Priorities for the First 100 Days Budget Reconciliation Overview Budget reconciliation was createdThe budget includesHealth Care Reform by the Congressional Budget Actinstructions for changesPass H.R. 3 and H.R. 1425 to reduce drug prices and expand coveragein federal revenue and under the ACA. of 1974 to provide an expeditedspending.process for passing congressionalAdditional health legislation would attempt to create a public insurance measures related to the budget.option, address surprise billing, and reinstate funding for reproductive health. Instructed committeesdebate and vote on budgetBudget reconciliation measuresrecommendations.Immigration Reform cannot be filibustered and are Pass an immigration reform bill with a path to citizenship for some limited to 20 hours of debate; thus,Budget Committees bundle undocumented residents. such measures can pass through aproposals into a budgetsimple majority vote in the Senate. measure and vote.Codify protections from deportation for children who came to the United States illegally. The Byrd rule states that budgetFull House and Senate votereconciliation measures must have a(by simple majority), withEducation Reform non-incidental effect on the budget;conference committees to Reauthorize the Higher Education Act through the Aim Higher Act. must not change overall spendingsettle any differences.Additional education legislation would attempt to make four-year or revenue levels; and must not add to the deficit outside the budgetPresident signs budgetpublic universities debt-free for low-income families.window covered by the bill. reconciliation measure.Sources: The State, The Washington Post, Joe Biden for President, Forbes Sources: Vox, Congressional Research Service, US House of Representatives Committee on Rules, Politico.Sumitomo Corporation of Americas 21'