# Understanding the Balanced Budget Amendment

This proposed amendment would change the U.S. Constitution to require the federal government to balance its budget every year, meaning Congress couldn't spend more money than it brings in through taxes and other revenue. Right now, the government regularly runs deficits—spending billions more than it collects—and borrows money to cover the difference. This amendment would make that illegal unless Congress votes to override the requirement during emergencies.

The practical effect would be significant for everyday Americans. If this amendment passed, Congress would face a hard choice every budget year: either raise taxes, cut spending on programs, or do some combination of both. This could affect Social Security, Medicare, defense spending, education funding, infrastructure projects, and virtually every government program. During recessions or emergencies, when the government typically spends more to help people and stimulate the economy, Congress would need a supermajority vote to allow deficit spending—making it much harder to respond quickly to crises.

Supporters argue this would force fiscal responsibility and prevent the national debt from growing endlessly. Critics worry it would tie Congress's hands during emergencies, force painful cuts to popular programs, or require tax increases that could hurt the economy. The amendment would also need approval from two-thirds of both the House and Senate, then ratification by three-fourths of state legislatures to become law—a very high bar that reflects how fundamental a change this would be to how government operates.

Proposing an amendment to the Constitution of the United States relative to balancing the budget.

Buchanan, Vern

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 vote of each chamber. The prohibition excludes outlays for repayment of debt principal and receipts derived from borrowing. The amendment prohibits total outlays for any fiscal year from exceeding 18% of the gross domestic product of the United States unless two-thirds of each chamber of Congress provides for a specific increase above this amount. The amendment requires a two-thirds vote of each chamber of Congress to impose a new tax, increase the statutory rate of any tax, or increase the aggregate amount of revenue. It requires a three-fifths vote of each chamber to increase the limit on the debt of the United States. The President must submit an annual budget in which total outlays do not exceed total receipts or 18% of the gross domestic product of the United States. The amendment prohibits a court from ordering a revenue increase to enforce the requirements. Congress may waive specified requirements when a declaration of war is in effect or the United States is engaged in a military conflict that causes an imminent and serious military threat to national security.