After a big night for conservatives, new agendas in Washington will be set. According to the Republican National Committee Chairman, Reince Priebus, first on the list is a budget that will be passed by both chambers and then the new Senate will approve Keystone XL. The budget would approve spending until 2016. Last night gave Senate Republicans a filibuster proof majority for a Keystone vote.

With a number of jobs and energy bills that have been stalled in the Senate over the past two years, some are hopeful that last night’s results will help open the dam. Businesses are also looking to the new congress for tax reform. In the past Senator Reid has block numerous bills from coming to the floor for a vote.

The energy company BHP Billiton will test the government’s ban on crude exports. BHP recently signed a deal to export $50 million of ultra light crude oil from Texas to foreign nations without government approval. According to the Wall Street Journal, this will be the first move from a number of companies seeking new markets and ways around the decades old ban.

Eakinomics: What Next?

It was a big night for Republicans. Now what? According to Republican National Committee Chair Reince Priebus the top priority will be to pass a budget.

That is good news; it has been years since the Congress took it financial management duties in regular order. And passing a budget carries some advantages to the party in power. Only if the House passes a budget, the Senate passes a budget, and both chambers agree upon the final version of the budget can the Congress take advantage of the streamlined parliamentary procedures known as reconciliation. Those procedures permit legislation to pass the Senate using only a majority vote instead of the usual 60-vote hurdle. 

Those considerations notwithstanding, there is not much chance of a tectonic shift in the direction of the budget over the next two years. Bills passed under reconciliation can still be vetoed by the president. That means to pass bills that will ultimately become law, the Republicans will likely need 60 votes. Put differently, they will need buy-in from the Democrats. That, in turn, means they will need to focus on smaller and more bipartisan issues than tax reform, major Medicare reform, or the like.

It was a great night for Republicans. It was not a sharp change in the direction of the budget. Yet.