The Ways and Means Committee of the U.S. House of Representatives will begin debate Thursday on a set of major budget reconciliation recommendations, as directed by Section 2002 of the Concurrent Resolution on the Budget for Fiscal Year 2022.

The mechanics of congressional budget reconciliation legislation are complicated, but as explained in a white paper published by the Center on Budget and Policy Priorities, reconciliation bills are not subject to filibuster. In other words, that means the legislation only needs a simple majority to pass, and not the 60 votes required for most bills in the Senate. Though the scope of amendments is limited, the paper explains, the lack of procedural hurdles related to the filibuster gives the reconciliation process significant advantages for enacting partisan budget and tax measures.

As of Tuesday afternoon, the newly revealed draft language, set to be marked up and potentially amended by the Ways and Means Committee starting Thursday, includes Democratic policy goals that range from the establishment of universal paid family and medical leave to federal support for skilled nursing facilities and training. Like all House committees, the Ways and Means panel is currently controlled by a Democratic majority seeking to use the budget reconciliation process to accomplish legislative goals that stand next to no chance of success through typical legislative means.

Most notable for the retirement planning industry is the second section of the legislative recommendation language: “Subtitle B: Budget Reconciliation Legislative Recommendations Relating to Retirement.” Language in this section of the draft would generally require small business employers to offer their employees a retirement plan. The language, which could be amended or deleted during the forthcoming debate, appears to permit a service/eligibility period of up to two consecutive 12-month periods. During that time, each of the to-be-enrolled employees would need to complete at least 500 hours of service to be eligible for the plan. Language in the text also seeks to set limits on contribution ranges and the amount of employees’ earnings that can ultimately be tax-deferred.

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