Federal

A joint resolution proposing an amendment to the Constitution of the United States requiring that the Federal budget be balanced.

Source: Congress.gov · 620 words in original text

What This Bill Does

This bill proposes a constitutional amendment (a change to the basic governing rules of the United States). The amendment would require the federal government to balance its budget, meaning it cannot spend more money than it takes in. The amendment would need approval from two-thirds of Congress and three-fourths of the states to become part of the Constitution.

Who It Affects

Congress (the Senate and House of Representatives), the federal government's spending decisions, members of Congress, and U.S. courts.

Key Provisions

• The federal government cannot spend more money in a fiscal year (a one-year budget period) than it receives in total receipts (money coming in). (Sec. 1) • Total spending cannot exceed 18 percent of the gross domestic product (the total value of all goods and services produced by the United States in a year). (Sec. 2) • Congress can suspend these spending limits for one fiscal year if two-thirds of each House votes by rollcall vote (a counted vote where each member votes on record) to allow more spending. (Sec. 3) • Any bill to create a new tax or raise an existing tax rate requires approval from two-thirds of each House by rollcall vote. (Sec. 4) • The federal debt limit (the maximum amount the government can borrow) cannot be increased unless two-thirds of each House votes by rollcall vote to allow it. (Sec. 5)

What Changes

If ratified, Congress would be required by constitutional law to balance the federal budget starting in the second fiscal year after three-fourths of the states approve it. Congress would need supermajority votes (two-thirds approval) to raise taxes or increase the debt limit.

Important Definitions

• Total receipts: All money the United States receives except money from borrowing. (Sec. 8) • Total outlays: All spending by the United States except money spent to repay borrowed principal (the original amount borrowed). (Sec. 8)

Effective Date

The amendment becomes effective beginning with the second fiscal year after three-fourths of the state legislatures ratify it. (Sec. 9)

IIA 118TH CONGRESS 1ST SESSION S. J. RES. 14 Proposing an amendment to the Constitution of the United States requiring that the Federal budget be balanced. IN THE SENATE OF THE UNITED STATES FEBRUARY 16, 2023 Mr. LEE (for himself and Mr. GRASSLEY) introduced the following joint reso- lution; which was read twice and referred to the Committee on the Judici- ary JOINT RESOLUTION Proposing an amendment to the Constitution of the United States requiring that the Federal budget be balanced. Resolved by the Senate and House of Representatives 1 of the United States of America in Congress assembled 2 (two-thirds of each House concurring therein), That the fol- 3 lowing article is proposed as an amendment to the Con- 4 stitution of the United States, which shall be valid to all 5 intents and purposes as part of the Constitution when 6 ratified by the legislatures of three-fourths of the several 7 States: 8 VerDate Sep 11 2014 01:41 Feb 17, 2023 Jkt 047007 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\SJ14.IS SJ14 pbinns on DSKBC47HB2PROD with BILLS 2 •SJ 14 IS ‘‘ARTICLE — 1 ‘‘SECTION 1. Total outlays for any fiscal year shall 2 not exceed total receipts for that fiscal year. 3 ‘‘SECTION 2. Total outlays shall not exceed 18 per- 4 cent of the gross domestic product of the United States 5 for the calendar year ending prior to the beginning of such 6 fiscal year. 7 ‘‘SECTION 3. The Congress may provide for suspen- 8 sion of the limitations imposed by section 1 or 2 of this 9 article for any fiscal year for which two-thirds of the whole 10 number of each House shall provide, by a rollcall vote, for 11 a specific excess of outlays over receipts or over 18 percent 12 of the gross domestic product of the United States for the 13 calendar year ending prior to the beginning of such fiscal 14 year. 15 ‘‘SECTION 4. Any bill to levy a new tax or increase 16 the rate of any tax shall not become law unless approved 17 by two-thirds of the whole number of each House of Con- 18 gress by a rollcall vote. 19 ‘‘SECTION 5. The limit on the debt of the United 20 States held by the public shall not be increased, unless 21 two-thirds of the whole number of each House of Congress 22 shall provide for such an increase by a rollcall vote. 23 ‘‘SECTION 6. Any Member of Congress shall have 24 standing and a cause of action to seek judicial enforce- 25 VerDate Sep 11 2014 01:41 Feb 17, 2023 Jkt 047007 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\SJ14.IS SJ14 pbinns on DSKBC47HB2PROD with BILLS 3 •SJ 14 IS ment of this article, when authorized to do so by a petition 1 signed by one-third of the Members of either House of 2 Congress. No court of the United States or of any State 3 shall order any increase in revenue to enforce this article. 4 ‘‘SECTION 7. The Congress shall have the power to 5 enforce this article by appropriate legislation. 6 ‘‘SECTION 8. Total receipts shall include all receipts 7 of the United States except those derived from borrowing. 8 Total outlays shall include all outlays of the United States 9 except those for repayment of debt principal. 10 ‘‘SECTION 9. This article shall become effective begin- 11 ning with the second fiscal year commencing after its rati- 12 fication by the legislatures of three-fourths of the several 13 States.’’. 14 Æ VerDate Sep 11 2014 01:41 Feb 17, 2023 Jkt 047007 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\SJ14.IS SJ14 pbinns on DSKBC47HB2PROD with BILLS

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