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Federal

A joint resolution proposing an amendment to the Constitution of the United States relative to balancing the budget.

Source: Congress.gov  ·  929 words in original text
This bill proposes a constitutional amendment (a permanent change to the U.S. Constitution) that would require the federal government to balance its budget, meaning it cannot spend more money than it takes in. The proposal includes rules about how much the government can spend each year and requirements for raising taxes or borrowing money.
Congress, the President, and the federal government's overall spending decisions.
• The government cannot spend more money than it receives in a year unless two-thirds of Congress votes to allow it (Sec. 1) • The government cannot spend more than 18 percent of the nation's gross domestic product (the total value of all goods and services produced in the U.S.) unless two-thirds of Congress votes to allow it (Sec. 2) • The President must propose a budget each year that either balances or stays within the 18 percent spending limit (Sec. 3) • Any bill that creates a new tax or raises tax rates must pass with a two-thirds majority vote in Congress (Sec. 4) • Congress cannot raise the nation's debt limit unless three-fifths of Congress votes to do so (Sec. 5) • Congress can ignore these rules if a war is declared or if a military conflict threatens national security and three-fifths of Congress votes to allow it (Sec. 6 and 7)
If ratified by three-fourths of the states, this amendment would make it unconstitutional for the federal government to spend more money than it collects in taxes and other revenue, with limited exceptions for war or military emergencies. The amendment would begin taking effect starting in the fifth fiscal year after states ratify it.
"Total receipts" means all money the federal government receives except borrowed money (Sec. 9). "Total outlays" means all federal spending except money spent to pay back borrowed money (Sec. 9).
The amendment would take effect beginning with the fifth fiscal year after states ratify it (Sec. 11).
Important: This plain English summary was generated by AI and is provided for informational purposes only. It is not legal advice. Always consult the official bill text on Congress.gov or a qualified attorney for legal matters.