# Plain Language Summary: Balanced Budget Amendment

This bill proposes to add 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—similar to how most families and businesses have to balance their own budgets.

Right now, the federal government regularly runs a deficit, meaning it spends billions of dollars more than it collects in revenue each year. The government covers this gap by borrowing money, which adds to the national debt. This proposed amendment would change that by requiring Congress to pass a balanced budget every single year, with very limited exceptions. The main exception would be during times of war, when the government could temporarily spend more than it collects if Congress votes to allow it.

If this amendment became law, it would fundamentally change how the government operates and how it spends money on everything from Social Security and Medicare to defense, education, and infrastructure. Congress would have to make difficult choices every year: either raise taxes, cut spending on popular programs, or some combination of both. This could mean smaller government benefits, higher taxes, reduced funding for schools and roads, or cuts to military spending—depending on which programs lawmakers choose to reduce. The amendment would need to be approved by two-thirds of both the House and Senate, and then ratified by three-fourths of state legislatures before it could take effect.

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

Mace, Nancy

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 three-fourths 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.