This is a proposed constitutional amendment that would require the federal government to balance its budget. Here's what that means in practical terms: the government couldn't spend more money in a year than it collects in taxes and other revenue, with some adjustments for population growth and inflation. The spending limit would be based on the average amount of money collected over the previous three years.

There are a few important exceptions built in. Congress could still spend more than the limit if two-thirds of both the House and Senate vote to approve it. During wartime, Congress could exceed the limit with just a simple majority vote. Additionally, the amendment includes a rule that any new taxes or tax increases would need approval from two-thirds of Congress. This is a significant change because currently Congress can pass tax increases with a simple majority.

If this amendment were ratified by three-fourths of the states, it wouldn't take effect immediately. There would be a five-year waiting period after ratification before the balanced budget requirement kicks in. This would give the government time to adjust its spending and revenue policies to comply with the new constitutional requirement.

Proposing an amendment to the Constitution of the United States requiring a balanced budget for the Federal Government.

Biggs, Andy

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.