Reserve Funds in the Congressional Budget Process: Frequently Asked Questions

Reserve Funds in the Congressional Budget

Process: Frequently Asked Questions

Updated February 5, 2026

Congressional Research Service

https://crsreports.congress.gov

R47277

Reserve Funds in the Congressional Budget Process: Frequently Asked Questions

Contents

What is a reserve fund? ................................................................................................................... 1

How does a reserve fund work? ...................................................................................................... 1

Do reserve funds provide funding? ................................................................................................. 2

Do reserve funds require Congress to act on a certain policy?........................................................ 2

Do reserve funds change voting thresholds for the passage of legislation? .................................... 2

Are reserve funds nonbinding policy statements? ........................................................................... 3

In what ways do reserve funds vary? .............................................................................................. 4

Contacts

Author Information.......................................................................................................................... 6

Reserve Funds in the Congressional Budget Process: Frequently Asked Questions

What is a reserve fund?

The Congressional Budget Act of 1974 (the Budget Act) directs Congress to adopt a budget

resolution each spring establishing an agreement between the House and Senate on a budgetary

plan.1 The budget resolution does not become law; therefore no money is spent or collected as a

result of its adoption. Instead, the budget resolution includes certain spending and revenue levels

that become enforceable through points of order once both chambers have adopted the

resolution.2 (While not discussed in this report, the budget resolution may also trigger the budget

reconciliation process,3 which provides fast-track procedures in the Senate for certain mandatory

spending, tax, and debt limit legislation.) Budget resolutions are under the jurisdiction of the

House and Senate Budget Committees, which are directed to report a budget resolution in the

spring of each year.4

In addition to budgetary levels, Congress frequently includes “reserve funds” in the annual budget

resolution. These provisions may be included in the budget resolution as reported from the

Budget Committee or added as an amendment during floor consideration. Reserve funds

authorize the specified chair of the Budget Committee to subsequently revise the budgetary levels

agreed to in the budget resolution in order to accommodate certain policies or legislation. A

reserve fund provision may therefore change the initial levels provided in the resolution, allowing

certain policies to be considered on the House or Senate floor without triggering a point of order

for violating levels in the budget resolution. The authority granted by a reserve fund may be

exercised only under the circumstances specified in the reserve fund and within any specified

budgetary limits.

How does a reserve fund work?

A reserve fund is included in a budget resolution. Once that budget resolution has been adopted

by both the House and the Senate, the specified chair of the Budget Committee may subsequently

use the reserve fund to revise levels in the budget resolution. An example of a reserve fund, and

the manner in which it triggers a subsequent revision to the budget resolution, is shown below.

First, the budget resolution for FY2025 was adopted by both the House and the Senate in April

2025 and included this reserve fund:

Section 3001. Reserve Fund for Reconciliation Legislation

1 Titles I-IX of P.L. 93-344, as amended; 2 U.S.C. §§601-688.The budget resolution is to provide budgetary levels for

the relevant fiscal year and at least four outyears.

2 For example, in the House, the Budget Act prohibits consideration of legislation that would cause new budget

authority or outlays for the first fiscal year in the budget resolution to be exceeded (§§311(a)(2) and 311(a)(1)). It also

prohibits consideration in the House and Senate of legislation that would cause revenues to fall below the levels set

forth in the budget resolution for the first fiscal year or for the total of all fiscal years covered in the budget resolution

(§§311(a)(1) and 311(a)(2)). Points of order are not self-enforcing, meaning that if no Member raises a point of order, a

chamber may consider and pass legislation that would violate levels established in the budget resolution. In addition,

either chamber may waive the point of order—in the House by a simple majority of Members and in the Senate by

three-fifths of all Senators.

3 For more information on the budget reconciliation process, see CRS Report R44058, The Budget Reconciliation

Process: Stages of Consideration, by Megan S. Lynch and James V. Saturno.

4 Section 300 of the Budget Act of 1974 includes a timetable specifying dates by which Congress is to complete certain

budgetary actions. Under this timetable, the Senate Budget Committee is directed to report a budget resolution

(pertaining to the upcoming fiscal year beginning October 1) by April 1, and Congress is directed to complete action on

a budget resolution by April 15.

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(b)(1) IN GENERAL.—In the Senate, the Chairman of the Committee on the Budget of

the Senate may revise the allocations of a committee or committees, aggregates, and other

appropriate levels in this resolution, and make adjustments to the pay-as-you-go ledger, for

any bill or joint resolution considered pursuant to section 2002 containing the

recommendations of one or more committees, or for one or more amendments to, a

conference report on, or an amendment between the Houses in relation to such a bill or

joint resolution, by the amounts necessary to accommodate the budgetary effects of the

legislation, if the budgetary effects of the legislation comply with the reconciliation

instructions under this concurrent resolution.5

Subsequently, in June 2025, while the Senate was considering the reconciliation legislation

referenced in the reserve fund above, the chair of the Senate Budget Committee revised the levels

in the previously adopted budget resolution in a statement given on the Senate floor:

Mr. GRAHAM. Mr. President, section 3001 of H.Con. Res. 14, the fiscal year 2025

congressional budget resolution, allows the chairman of the Senate Budget Committee to

revise committee allocations, budgetary aggregates, and the pay-as-you-go ledger for

legislation considered under the resolution’s reconciliation instructions. I find that

amendment No. 2360 fulfils the conditions found in section 3001 of H.Con. Res. 14.

Accordingly, I am revising the allocations for the reconciled committees and other

enforceable budgetary levels to account for the updated budgetary effects of the

amendment.6

Do reserve funds provide funding?

While a reserve fund may demonstrate congressional support for subsequent legislative action on

a specific policy, reserve funds themselves do not provide funding for that policy. Reserve funds

provide for a subsequent procedural effect: They authorize the chair of the Budget Committee to

subsequently revise the budgetary levels agreed to in the budget resolution in order to

accommodate certain policies or legislation.

Do reserve funds require Congress to act on a

certain policy?

While reserve funds provide for a subsequent procedural effect, and may demonstrate support for

a specific policy, they do not require that Congress subsequently act on any type of policy, nor do

they prohibit Congress from taking action on any policy.

Do reserve funds change voting thresholds for the

passage of legislation?

Reserve funds do not change the voting threshold for passage of legislation. Because a reserve

fund allows the Budget Committee chair to revise budgetary levels, it may prevent a budgetary

point of order from being raised against the legislation—a point of order that would otherwise

have required a vote of three-fifths of the Senate to waive.7 Such a reserve fund, however, would

5 H.Con.Res. 14, §3001(b).

6 “Budgetary Revisions,” Congressional Record, June 28, 2025, p. S3675.

7 See CRS Report 97-865, Points of Order in the Congressional Budget Process, by James V. Saturno

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affect only whether a budgetary point of order could be made. It would not affect the Senate’s

other rules and procedural requirements, such as the cloture process. Therefore, a reserve fund

would not affect whether a measure would require three-fifths of the Senate to agree to end

debate on a legislative question, such as final passage.8

Are reserve funds nonbinding policy statements?

Reserve funds authorize the chair of the Budget Committee to subsequently revise the budgetary

levels agreed to in the budget resolution to accommodate certain policies. In addition, they have

sometimes been characterized as a way for Senators to receive a nonbinding vote on a certain

policy or to signal support (or lack of support) for a certain policy in the same manner as a “sense

of the Senate” provision.9

In recent years, a majority of included reserve funds have been added to the resolution during

Senate floor consideration. For example, S.Con.Res. 14, the budget resolution for FY2022,

included 31 reserve funds, three of which were included in the version of the budget resolution

placed on the Senate Calendar. The rest were added through Senate floor amendments. Likewise,

S.Con.Res. 5, the budget resolution for FY2021, included 28 reserve funds, three of which were

included in the version of the budget resolution placed on the Senate Calendar. The rest were

added through Senate floor amendments.

Policies specified in reserve funds that were added as Senate amendments have varied broadly.

For example, in the most recently agreed-to budget resolution,10 the reserve funds related to the

following policy language:

not raising taxes on people making less than $400,000; prohibiting the Green New Deal;

addressing the crisis of climate change; supporting privately held businesses, farms, and

ranches; promoting U.S. competitiveness and innovation by supporting research and

development; protecting taxpayer privacy while ensuring those evading the tax system pay

what they owe; prohibiting the Council on Environmental Quality and the Environmental

Protection Agency from promulgating rules or guidance that bans fracking in the United

States; facilitating improved internet service for Cuban citizens; adjusting federal funding

for local jurisdictions; honoring the Capitol Police, the District of Columbia Metropolitan

Police, and first responders; supporting or expediting the deployment of carbon capture,

utilization, and sequestration technologies; prohibiting the Department of Agriculture from

making fossil-fuel-burning plants ineligible for financing; relating to the provisions of the

American Rescue Plan; relating to means-testing electric vehicle tax credits; prohibiting,

or limiting the issuance of costly Clean Air Act permit requirements on framers and

ranchers in the United States or the imposition of new federal requirements on livestock;

funding the Office of Foreign Assets Control; relating to abortion funding; ensuring robust,

secure, and humane supply chains sourced by the United States and its allies for renewable

energy materials, technology, and critical minerals; prohibiting funding to purchase

materials, technology, and critical minerals produced, manufactured, or mined with forced

labor; Great Lakes ice-breaking operational improvements; immigration enforcement and

addressing the humanitarian crisis at the southern border; quality education for children;

hiring 100,000 new police officers; preventing electricity blackouts and improve electricity

8 A colloquy on this subject occurred on the Senate floor. Senators Portman and Murray, “Budget Act Section 114(c),”

Congressional Record, daily edition, vol. 160, part 2 (January 7, 2014), p. S67. For more information on the cloture

process, see CRS Report 98-425, Invoking Cloture in the Senate, by Christopher M. Davis.

9 For example, see Paul M. Krawzak, “Biden Coronavirus Relief Plan Clears Senate Budget Hurdle After ‘Vote-aRama,’” Roll Call, February 5, 2021; and Dylan Matthews, “Senators Are Proposing Hundreds of ‘Deficit-Neutral

Reserve Funds.’ What Gives?,” Washington Post, March 22, 2013.

10 S.Con.Res. 14 (117th Congress).

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reliability; protecting migrant and local communities against COVID-19; studying and

providing for tax equivalency under the payments-in-lieu-of-taxes program; preventing tax

increases on small businesses; providing sufficient resources to detain and deport a higher

number of aliens who have been convicted of crimes; and maintaining the current law tax

treatment of like kind exchanges.11

In what ways do reserve funds vary?

Reserve funds include language providing authority to revise budgetary levels to the chair of the

House Budget Committee or Senate Budget Committee (or both). In addition to granting this

authority, the provision states the circumstances under which the budgetary levels may be revised.

These circumstances typically describe a policy or type of legislation with varying levels of

specificity. For example, in the reserve fund shown below, a range of policies might qualify as

“national security or domestic discretionary programs.”

Deficit-neutral reserve fund to strengthen America’s priorities.

The Chairman of the Committee on the Budget of the Senate may revise the allocations of

a committee or committees, aggregates, and other appropriate levels in this resolution for

one or more bills, joint resolutions, amendments, amendments between the Houses,

motions, or conference reports relating to enhanced funding for national security or

domestic discretionary programs by the amounts provided in such legislation for those

purposes, provided that such legislation would not increase the deficit over the period of

the total of fiscal years 2016 through 2025.12

In contrast, the reserve fund below specifies a narrower set of policies that might qualify:

Deficit-neutral reserve fund for the State Children’s Health Insurance Program.

In the House of Representatives, the Chairman of the Committee on the Budget may revise

the allocations, aggregates, and other budgetary levels in this concurrent resolution for any

bill or joint resolution, or amendment thereto or conference report thereon, if such measure

extends the State Children’s Health Insurance Program, but only if such measure would

not increase the deficit over the period of fiscal years 2016 through 2025. 13

A reserve fund may include a requirement that the policy be deficit-neutral, spending-neutral, or

revenue-neutral. A deficit-neutral reserve fund, often referred to as a “DNRF,” allows the Budget

Committee chair to revise the budgetary levels in the budget resolution but requires that any

provisions that would increase the deficit be “offset” by equivalent decreases in the deficit (made

by spending reductions or revenue increases). An example of a deficit-neutral reserve fund is

below:

Deficit-neutral reserve fund for college access, affordability, and completion.

The chairman of the House Committee on the Budget may revise the allocations,

aggregates, and other appropriate levels in this resolution for any bill, joint resolution,

amendment, or conference report that makes college more affordable or accessible or that

increases college enrollment and completion through reforms to the Higher Education Act

of 1965 or other legislation, including increasing the maximum Pell grant award annually

by an amount equal to one percentage point more than the Consumer Price Index, or student

loan reform, by the amounts provided in such measure if such measure would not increase

the deficit or decrease the surplus for either time period provided in clause 10 of rule XXI

11 S.Con.Res. 14 (117th Congress), Title III.

12 S.Con.Res. 11 (114th Congress), §4301.

13 S.Con.Res. 11 (114th Congress), §4504.

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of the Rules of the House of Representatives, and minimize disruption to schools, students,

and the employees of the student loan originating and servicing industry. 14

A spending-neutral reserve fund allows the Budget Committee chair to revise the budgetary levels

in the budget resolution but requires that any provisions that would increase spending be “offset”

by equivalent decreases in spending made elsewhere. An example of a spending-neutral reserve

fund is below:

Spending-neutral reserve fund to reform the abandoned mine lands program.

The Chairman of the Committee on the Budget of the Senate may revise the allocations of

a committee or committees, aggregates, and other appropriate levels in this resolution for

one or more bills, joint resolutions, amendments, amendments between the Houses,

motions, or conference reports relating to the Surface Mining Control and Reclamation Act

of 1977 (30 U.S.C. 1201 et seq.) without raising new revenue, by the amounts provided in

such legislation for that purpose, provided that such legislation would not increase the

deficit over either the period of the total of fiscal years 2016 through 2020 or the period of

the total of fiscal years 2016 through 2025.15

A revenue-neutral reserve fund allows the Budget Committee chair to revise the budgetary levels

in the budget resolution but requires that any provisions affecting revenues be “offset” by changes

in revenue. An example of a revenue-neutral reserve fund is below:

Revenue-neutral reserve fund to reform the American tax system.

The Chairman of the Committee on the Budget of the Senate may revise the allocations of

a committee or committees, aggregates, and other appropriate levels in this resolution, and

make adjustments to the pay-as-you-go ledger, for one or more bills, joint resolutions,

amendments, amendments between the Houses, motions, or conference reports relating to

reforming the Internal Revenue Code of 1986, which may include—

(1) tax relief for middle-income working Americans;

(2) lowering taxes on families with children; or

(3) incentivizing companies to invest domestically and create jobs in the United States,

by the amounts provided in such legislation for those purposes, provided that such

legislation is revenue neutral and would not increase the deficit over the period of the total

of fiscal years 2018 through 2027.16

Reserve funds are not required to be deficit-neutral, spending-neutral, or revenue-neutral,

however. They may, instead, allow the levels of spending or revenue initially set forth in the

budget resolution to be breached so long as the policy legislation meets the requirements

specified in the reserve fund, as shown below:

Reserve fund for reconciliation legislation. (a) In general.—The Chairman of the

Committee on the Budget of the Senate may revise the allocations of a committee or

committees, aggregates, and other appropriate levels in this resolution, and make

adjustments to the pay-as-you-go ledger, for any bill or joint resolution considered pursuant

to section 2001 containing the recommendations of one or more committees, or for one or

more amendments to, a conference report on, or an amendment between the Houses in

relation to such a bill or joint resolution, by the amounts necessary to accommodate the

14 S.Con.Res. 13 (111th Congress), §322.

15 S.Con.Res. 11 (114th Congress), §4318.

16 H.Con.Res. 71 (115th Congress), §3002.

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budgetary effects of the legislation, if the budgetary effects of the legislation comply with

the reconciliation instructions under this concurrent resolution. 17

Author Information

Megan S. Lynch

Specialist on Congress and the Legislative Process

Disclaimer

This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan

shared staff to congressional committees and Members of Congress. It operates solely at the behest of and

under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other

than public understanding of information that has been provided by CRS to Members of Congress in

connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not

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17 H.Con.Res. 71 (115th Congress), §3003.

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