# Plain Language Summary: Balanced Budget Amendment

This bill proposes a constitutional amendment that would require the federal government to balance its budget every year, meaning it can't spend more money than it takes in through taxes and other revenue. Right now, Congress can spend more than it collects and borrow the difference, which adds to the national debt. This amendment would make that much harder to do.

Under this proposal, the government would need a two-thirds majority vote in both the House and Senate to spend more money than it receives. Additionally, total government spending would be capped at 18 percent of the nation's gross domestic product (basically the total value of everything the country produces). The President would also have to submit a balanced budget proposal to Congress each year. Any new taxes or tax increases would require a two-thirds vote to pass, and raising the debt limit would need a three-fifths majority vote instead of a simple majority.

The amendment includes some exceptions for emergencies. During a declared war, Congress could suspend these rules with a simple majority vote. If the country faces a serious military threat that Congress declares by a three-fifths vote, the rules could also be waived for that specific year. These exceptions would only apply to spending directly related to the military conflict. The amendment wouldn't take effect for five years after states ratify it, giving the government time to prepare.

The practical impact would be significant: Congress would face much stricter limits on spending for Social Security, Medicare, defense, education, infrastructure, and virtually every other government program. To increase spending in one area, they'd have to cut it somewhere else or raise taxes—both requiring supermajority votes that are difficult to achieve. This could fundamentally change how the government operates and what services it can provide.

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.