Proposing a balanced budget amendment to the Constitution of the United States.
Source: Congress.gov ·
380 words in original text
What This Bill Does
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This bill proposes a change to the U.S. Constitution requiring the federal government to spend only as much money as it takes in each year. The change would need approval from Congress and then from state legislatures before it could become part of the Constitution.
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Who It Affects
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Congress, the President, and the federal government's budget operations.
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Key Provisions
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- The federal government cannot spend more money than it receives in a year unless two-thirds of the members in both the House and Senate vote to approve the overspending (Sec. 1).
- The President must submit a proposed budget to Congress each year where spending does not exceed income (Sec. 2).
- Congress can pass laws to enforce and carry out this amendment, and those laws can use estimates of spending and income (Sec. 3).
- "Total receipts" means all money the government receives except borrowed money, and "total outlays" means all spending except for paying back borrowed money (Sec. 4).
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What Changes
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If ratified, the federal government would be required to balance its budget starting in the fifth year after the amendment is approved by the states. The government would no longer be able to spend more money than it receives unless Congress votes by a two-thirds majority to allow overspending.
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Important Definitions
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"Total receipts" means government income except from borrowing. "Total outlays" means government spending except for repaying borrowed money.
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Effective Date
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Begins in the fifth fiscal year after ratification (Sec. 5).
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
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