Proposing an amendment to the Constitution of the United States requiring a balanced budget for the Federal Government.
Status Unclear
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This joint resolution would propose a constitutional amendment requiring the federal government to balance its budget, capping annual spending at the average of the prior three years' revenue, adjusted for population and inflation.
It would let Congress exceed that cap only with a two-thirds vote or during a declared war, and would require a two-thirds vote to raise or create any tax, a structural change that would need ratification by three-fourths of the states to take effect.
What this bill would do
What it would do
The resolution would propose a constitutional amendment limiting total federal expenditures in any year to the average annual federal receipts collected over the prior three years, adjusted for changes in U.S. citizen population and inflation. Debt payments would be excluded from the spending cap, and revenue from borrowing would be excluded from the receipts calculation. Congress could exceed the limit only by a two-thirds roll call vote of each chamber, or by a roll call vote in any year a declaration of war is in effect. The amendment would also require any new tax or tax-rate increase to pass by a two-thirds roll call vote of the whole membership of each chamber. As a proposed constitutional amendment, it would not take effect on its own passage by Congress; it would require ratification by the legislatures of three-fourths of the states. If ratified, its spending and tax-vote requirements would take effect starting in the fifth year after ratification, and Congress would need to pass implementing legislation.
Key provisions
- 1Would cap total federal expenditures at the average annual receipts of the prior three years, adjusted for population and inflation, excluding debt payments and borrowed revenue
- 2Would allow Congress to exceed the spending limit for specific expenditures with a two-thirds roll call vote of each chamber
- 3Would allow Congress to exceed the spending limit by roll call vote during any year a declaration of war is in effect
- 4Would require a two-thirds roll call vote of the whole membership of each chamber to pass any new tax or tax-rate increase
- 5Would direct Congress to enforce and implement the amendment through appropriate legislation
- 6Would delay the amendment's effect until the fifth year after ratification
Who would be affected
The entire federal government would be affected, including Congress, the President, and every federal agency whose budgets are funded through annual appropriations. State legislatures would also play a direct role, since ratification requires approval by three-fourths of them. Taxpayers nationwide would be affected by the higher voting threshold for future tax increases.
Why it matters
If ratified, the amendment would permanently constrain federal deficit spending except by supermajority vote or during declared wars, and would make raising taxes significantly harder by requiring two-thirds support in both chambers. Supporters see it as a check on national debt growth; opponents warn it could force sudden spending cuts or hamper responses to economic downturns.
What would change
Changes to existing law
Creates Constitution of the United States
Adds a new article requiring a balanced federal budget, supermajority votes to exceed spending limits, and supermajority votes to raise taxes.
Effective dates
- The balanced-budget article's spending cap and tax-vote requirements
How implementation would work
Because this is a proposed constitutional amendment, it must first pass both chambers of Congress by a two-thirds vote (the House vote failed 211-207, short of the two-thirds threshold), then be ratified by the legislatures of three-fourths of the states. If ratified, Congress would be directed to enforce and implement the article through appropriate legislation, and the spending cap, war exception, and tax-vote requirements would take effect starting in the fifth year after ratification.
Legislative status & sources
Latest action
On motion to suspend the rules and pass the resolution Failed by the Yeas and Nays: (2/3 required): 211 - 207 (Roll no. 95).
Official CRS summary
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This joint resolution proposes a constitutional amendment prohibiting total federal expenditures for a year from exceeding the average annual federal receipts collected in the three prior years, adjusted for changes in the population of U.S. citizens and inflation. Expenditures for payment of debt and receipts derived from borrowing are excluded.
Under the amendment, Congress may authorize specific expenditures in excess of the limit with (1) a roll call vote of two-thirds of each chamber, or (2) a roll call vote for any year in which a declaration of war is in effect.
The amendment also prohibits any bill to levy a new tax or increase the rate of any tax from becoming law unless it has been approved by a roll call vote of two-thirds of the whole number of each chamber of Congress.
The requirements take effect in the fifth year beginning after ratification of the amendment.
Legislative subjects
Budget deficits and national debt; Budget process; Constitution and constitutional amendments; Economics and Public Finance; Legislative rules and procedure
Committee report
H. Rept. 119-520