# What You Need to Know About the Balanced Budget Amendment

This proposed amendment would change the U.S. Constitution to require that the federal government balance its budget every year—meaning the government couldn't spend more money than it takes in through taxes and other revenue. Right now, there's no constitutional requirement to do this, so Congress can approve spending that exceeds incoming revenue, which creates a deficit that adds to the national debt.

If this amendment passed, it would fundamentally change how the federal government operates. Congress would need to either raise taxes, cut spending, or some combination of both to ensure that every year's budget balances. This sounds straightforward, but it would have major ripple effects. During economic recessions when tax revenue drops and more people need government assistance, a balanced budget requirement could force the government to cut programs or raise taxes right when the economy is struggling—which many economists argue would make recessions worse. Similarly, during national emergencies or wars, the government might struggle to respond quickly if it couldn't borrow money to cover urgent costs.

The amendment would also affect everyday people through potential changes to Social Security, Medicare, defense spending, education funding, and other programs. Any major government spending would need to be offset by cuts elsewhere or tax increases. While supporters argue this would impose fiscal discipline and prevent excessive debt, critics worry it would severely limit the government's ability to invest in infrastructure, respond to crises, or support people during hard times. Essentially, this amendment would lock the government into a strict spending limit similar to what households or businesses face, which sounds responsible but could constrain the government's flexibility to handle unexpected challenges or invest in long-term growth.

Proposing an amendment to the Constitution of the United States requiring that the Federal budget be balanced.

Loudermilk, Barry

This joint resolution proposes a constitutional amendment prohibiting total outlays for a fiscal year from exceeding total receipts for that fiscal year or 18% of the U.S. gross domestic product 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 requires a two-thirds vote of each chamber of Congress to levy a new tax, increase the rate of any tax, or increase the debt limit. The amendment provides any Member of Congress with standing and a cause of action to seek judicial enforcement of this amendment if authorized by a petition signed by one-third of the Members of either chamber of Congress. Courts are prohibited from ordering any increase in revenue to enforce this amendment.