# What This Bill Actually Does

This bill proposes adding a new amendment to the U.S. Constitution that would require the federal government to balance its budget every year. Right now, Congress can spend more money than it collects in taxes—the difference is borrowed, which adds to the national debt. This amendment would change that by making it illegal for the government to spend more than it takes in, with very limited exceptions.

Here's how it would work in practice: The government's total spending for any year couldn't exceed the average amount of money it collected in taxes over the previous three years, adjusted for inflation and population changes. So if the government collected $4 trillion in taxes on average over three years, it couldn't spend more than that adjusted amount in the current year. This would apply to all government spending except paying off existing debt—so Social Security, Medicare, defense, infrastructure, and everything else would have to fit within that revenue limit.

The amendment does include an emergency escape hatch. If Congress votes with a two-thirds majority in both the House and Senate, they could declare an emergency and temporarily spend more than the limit for up to one year. However, there's a gradual phase-in period: if the amendment were ratified, the government wouldn't have to immediately cut spending to match revenue. Instead, it would get nine years to gradually reduce overspending, shrinking the allowed overage by smaller amounts each year until it reaches zero.

The practical effect would be significant: the government would essentially have to choose between cutting spending, raising taxes, or some combination of both. Many economists worry this could force cuts to popular programs during recessions when tax revenue drops, while supporters argue it would force fiscal responsibility and prevent endless debt accumulation.

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

Rep. Arrington, Jodey C. [R-TX-19]

This joint resolution proposes a constitutional amendment prohibiting total federal expenditures for a year from exceeding the average annual federal revenue collected in the three prior years, adjusted for changes in population and inflation. Expenditures for payment of debt and revenues derived from borrowing are excluded. Congress may authorize specific expenditures in excess of the limit for up to one year by declaring an emergency with a roll call vote of two-thirds of each chamber. The requirements take effect in the first year beginning at least 90 days following ratification, except that expenditures are permitted to exceed the limit by specified amounts during each of the first nine years that the requirements are in effect.