Byrd rule
The Byrd rule is a parliamentary rule in the U.S. Senate which limits what type of legislation qualifies for passage by a mere majority without the possibility of a filibuster by 41 senators to block it. Budget reconciliation bills are typically allowed to bypass the filibuster, and thus pass by merely a simple majority. The Byrd rule establishes what is considered allowable as part of reconciliation.
Under the Byrd rule, the Senate is prohibited from considering extraneous matter as part of a reconciliation bill or resolution or conference report. The Senate Parliamentarian resolves a point of order raised by a senator during consideration of a reconciliation bill or conference report. If the point of order is sustained, the offending title, provision or amendment is deemed stricken unless overcome by a 3/5 (60) Senate majority vote to waive the rule.
Congressional Budget Act Section 313(b)(1) establishes six tests for a provision to be extraneous under the Byrd rule:
- does not produce a change in outlays or revenues;
- changes outlays or revenue which are merely incidental to the non-budgetary components of the provision;
- exist outside the jurisdiction of the committee that submitted the title or provision for inclusion in the reconciliation measure;
- increase outlays or decrease revenue if the provision's title, as a whole, fails to achieve the Senate reporting committee's reconciliation instructions;
- increase net outlays or decrease revenue during a fiscal year after the years covered by the reconciliation bill, unless the provision's title, as a whole, remains budget neutral;
- contain recommendations concerning OASDI (social security) trust funds.
Exceptions
There are exceptions to the Byrd Rule. Section 313(b)(2) exempts certain otherwise covered Senate-originated provisions if the provisions are certified for exemption by the Senate Budget Committee chairman and ranking minority member, as well as the chairman and ranking minority member of the committee of jurisdiction. These permitted exceptions are:
- a provision that mitigates direct effects attributable to a second provision, which changes outlays or revenue when the provisions together produce a net reduction in outlays;
- the provision will result in a substantial reduction in outlays or a substantial increase in revenues during fiscal years after the fiscal years covered by the reconciliation bill;
- the provision will likely reduce outlays or increase revenues based on actions that are not currently projected by CBO for scorekeeping purposes; or
- the provision will likely produce significant reduction in outlays or increase in revenues, but due to insufficient data such reduction or increase cannot be reliably estimated.
The Byrd rule is typically enforced by a senator raising a point of order, or else it is waived. The Byrd rule may be invoked only against reconciliation bills, amendments thereto, and reconciliation conference reports. A 3/5th majority can proactively waive the Byrd rule.
