The House and Senate approved a fiscal year 2010 budget on Wednesday that lays the groundwork for passage of a health reform package.
The budget passed the House by a vote of 233 to 193, with no Republicans in favor. It cleared the Senate by a vote of 53 to 43.
House Budget Committee Chairman John Spratt (D-S.C.) said the plan will cut the federal budget deficit by nearly two thirds by 2013, and even further in 2014.
Spratt said the healthcare investments in the budget will give "proven returns" to offset initial costs. The budget, as proposed by President Barack Obama, includes $634 billion over 10 years as a "down payment" for health reform.
The House Budget Committee statement said if healthcare reform legislation can't be achieved through regular procedures, the budget's reconciliation instructions require committees to report legislation by Oct.15, providing a fall-back to ensure that initiatives can move through Congress.
Republicans oppose the budget reconciliation process for fast-tracking health reform through Congress because it doesn't allow for debate and doesn't require as many votes to pass.
White House chief of health reform Nancy-Ann DeParle said last week that Democrats do not want to use the reconciliation process to pass healthcare reform, but she implied that using it would not be out of the question.
Healthcare reform legislation is beginning to heat up on Capitol Hill, with Congress under a self-imposed deadline of late June to come up with some agreement.
On Tuesday, Sen. Chris Dodd (D-Conn.) said the Democrats may have the majority in Congress, but Republican support is needed to sustain healthcare reform over the decade.
Senate Budget Committee Chairman Kent Conrad (D-N.D.) said passage of the budget sends a clear signal that Congress is moving forward on a new agenda for the country.
"The public spoke last November with their vote for change. Elected leaders spoke today with their vote for changing the nation's priorities," Conrad said. "We have adopted the president's priorities of reducing our dependence on foreign energy, promoting excellence in education and setting the stage for fundamental healthcare reform."