# Understanding the Balanced Budget Amendment Proposal

This proposal would add a new amendment to the U.S. Constitution that would require the federal government to balance its budget every year, meaning the government cannot spend more money than it takes in through taxes and other revenue. Right now, the government regularly spends more than it collects, borrowing money to cover the difference. This amendment would essentially make that illegal, with one major exception: Congress could vote to overspend if two-thirds of both the House and Senate agree to it in a recorded vote.

The amendment would take effect five years after enough states ratify it (which requires approval from three-fourths of all states). Once it kicks in, the President would have to submit a budget each year where spending doesn't exceed revenue, and Congress would be responsible for enforcing this rule through legislation. The amendment defines "receipts" as all money the government collects except borrowed funds, and "outlays" as all spending except paying back the principal on existing debt (though interest payments would still count as spending).

The practical impact would be significant and far-reaching. If this became law, the government would face hard choices about which programs to cut or which taxes to raise whenever revenues fall short of spending. During economic downturns when tax revenue naturally drops, the government would be forced to either slash spending on programs like Social Security, Medicare, defense, or education, or raise taxes. The two-thirds override option provides some flexibility for emergencies, but it's a high bar to clear. Supporters argue this would prevent wasteful spending and reduce the national debt, while critics worry it would tie the government's hands during recessions or crises when spending is most needed.

Proposing a balanced budget amendment to the Constitution of the United States.

Obernolte, Jay

 <p>This joint resolution proposes a constitutional amendment prohibiting total outlays for a fiscal year from exceeding total receipts for that fiscal year unless Congress authorizes the excess by a two-thirds roll call vote of each chamber. The prohibition excludes outlays for repayment of debt principal and receipts derived from borrowing.</p> <p>The amendment also requires the President to submit an annual budget in which total outlays do not exceed total receipts. </p>