# Understanding the Balanced Budget Amendment

This bill proposes adding a new amendment to the U.S. Constitution that would require the federal government to balance its budget every year. In simple terms, it would make it illegal for the government to spend more money than it takes in through taxes and other revenue—just like most families and businesses have to do.

Right now, the federal government regularly runs a deficit, meaning it spends billions more dollars than it collects. It covers this gap by borrowing money, which adds to the national debt. This proposed amendment would change that by forcing Congress to either cut spending, raise taxes, or some combination of both whenever the budget doesn't balance. The only exception would likely be during a national emergency, like a war or major crisis, where Congress could vote to override the requirement with a supermajority vote.

This would affect nearly every American because it would fundamentally reshape how the government operates. If passed, it could mean reduced funding for programs like Social Security, Medicare, education, infrastructure, and defense—or it could mean higher taxes. During economic recessions, when tax revenue naturally drops and people need more government assistance, the amendment would force painful budget cuts at exactly the wrong time. Supporters argue it would force fiscal responsibility and prevent the government from going deeper into debt, while critics worry it would handcuff Congress during emergencies and force harmful cuts to vital services.

To become law, this amendment would need to be approved by two-thirds of both the House and Senate, then ratified by three-fourths of state legislatures—a very high bar that reflects how significant a constitutional change this would be.

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

Green, Mark E.

This joint resolution proposes a constitutional amendment prohibiting total expenditures from exceeding total receipts for a fiscal year. The prohibition excludes expenditures for repayment of debt principal and receipts derived from borrowing. For a national emergency, two-thirds of each chamber of Congress may authorize expenditures that exceed receipts for limited times. Debts incurred from the expenditures must be paid as soon as practicable. The amendment requires a two-thirds roll call vote of each chamber of Congress to increase the public debt limit. It also requires the President to submit a balanced budget to Congress annually. If the President does not submit a balanced budget for a fiscal year, any executive actions may be unilaterally overturned by a simple majority vote of each of chamber of Congress until the President submits a balanced budget.