reconciliation

Reconciliation is the settlement of a conflict. Reconciliation occurs in government, family law, and in accounting.

Government

A reconciliation bill is a streamlined legislative procedure utilized to expedite adjustments to the budgetary process with the intent of meeting current revenue needs in governmental operations. The 1974 Congressional Budget and Impoundment Control Act established the federal reconciliation process. It implemented new spending policies, created Congressional budget committees and the Congressional Budget Office (CBO), and altered the federal fiscal year. This process created more balance between the legislative and executive branches regarding spending power. H.R. 1, also known as the One Big Beautiful Bill Act (OBBB), was a reconciliation bill that modified the funding and operations of many governmental agencies.

See also: CRS Report on The Reconciliation Process: Frequently Asked Questions, The Budget Resolution and Spending Legislation, as well as Historical Highlights: Congressional Budget and Impoundment Control Act of 1974.

Family Law

Reconciliation is the resumption of a marriage by two people who are, or were, legally separated. Couples who engage in reconciliation often cohabitate together and hold themselves to the public as married. At times, reconciliation is used interchangeably with condonation; however, reconciliation does not require a marital wrong for a resolution. Some states, like Delaware, require couples to show that reconciliation is improbable prior to granting a divorce. Other states may enforce reconciliation agreements before the court grants a divorce. See: Lisann v. Lisann, 304 Va. 242, 915 S.E.2d 59 (2025).

Accounting

In accounting, reconciliation is a financial auditing process of analyzing two different financial records (usually of a business), to verify conformity. For example, reviewing an internal ledger with external banking statements for any discrepancies and to confirm the accuracy of financial records. See: Iowa Supreme Court Attorney Disciplinary Board v. Smith, 904 N.W.2d 154 (2017), and Risk Point, LLC v. Santander Bank, N.A., (Tex. App. 2025).

[Last reviewed in May of 2026 by the Wex Definitions Team]

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