Federal

Proposing a balanced budget amendment to the Constitution requiring that each agency and department's funding is justified.

Source: Congress.gov · 894 words in original text

What This Bill Does

This joint resolution proposes a new amendment to the Constitution that would require the federal government's total spending not to exceed its total income each fiscal year (a budget year). The amendment includes rules about how much money Congress can spend and requires each government department and agency to explain why they need their funding. ##

Who It Affects

- Congress (the legislative branch) - The President - All federal departments and agencies - The American public (through changes to federal spending and taxation) ##

Key Provisions

- Total federal spending cannot exceed total federal income in any fiscal year unless three-fifths of both the Senate and House of Representatives vote to allow it (Sec. 1) - The amount the government can spend starts at 20 percent of the nation's total economic output and decreases by 0.1 percentage points each year, but cannot go below 16 percent (Sec. 1) - Congress cannot increase the national debt unless three-fifths of both chambers vote to approve it (Sec. 2) - The President must submit a budget each year where spending does not exceed income (Sec. 3) - No bill to raise money through taxes becomes law unless three-fifths of both chambers vote to approve it (Sec. 4) - Every department and agency must explain what each part of their budget is for, how it helps their mission, and what a lower funding level would look like (Sec. 5) ##

What Changes

If ratified, this amendment would change how Congress makes budgets. Congress would need a supermajority vote (three-fifths of both chambers) to spend more money than it takes in, to raise taxes, or to increase borrowing. Every agency would have to justify all of its spending in detail. ##

Important Definitions

- **Total receipts**: All money the government collects except money it borrows (Sec. 6) - **Total outlays**: All money the government spends except money used to repay borrowed funds (Sec. 6) - **Gross domestic product**: The total economic output of the United States (referenced but not defined in bill) ##

Effective Date

The amendment would take effect starting with whichever comes first: the tenth budget year after the states ratify it, or the first budget year after any year when the federal budget is not in deficit (Sec. 9)

IA 118TH CONGRESS 1ST SESSION H. J. RES. 19 Proposing a balanced budget amendment to the Constitution requiring that each agency and department’s funding is justified. IN THE HOUSE OF REPRESENTATIVES JANUARY 12, 2023 Mr. PERRY (for himself, Mr. OGLES, and Mr. CLOUD) submitted the following joint resolution; which was referred to the Committee on the Judiciary JOINT RESOLUTION Proposing a balanced budget amendment to the Constitution requiring that each agency and department’s funding is justified. 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 within seven years after the date of its submission 8 for ratification: 9 VerDate Sep 11 2014 22:58 Jan 12, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\HJ19.IH HJ19 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •HJ 19 IH ‘‘ARTICLE — 1 ‘‘SECTION 1. Total outlays for any fiscal year shall 2 not exceed total receipts for that fiscal year, unless three- 3 fifths of the whole number of each House of Congress shall 4 provide by law for a specific excess of outlays over receipts 5 by a rollcall vote, but in no event shall total outlays for 6 any fiscal year exceed the following: for the first fiscal year 7 for which this article takes effect, 20 percent of the esti- 8 mated gross domestic product of the United States for 9 that year, and for each subsequent fiscal year, a percent- 10 age of the estimated gross domestic product equal to the 11 applicable percentage for the preceding fiscal year reduced 12 by .1 percentage point. Under this section, total spending 13 for any fiscal year is not required to be less than 16 per- 14 cent of the estimated gross domestic product of the United 15 States. 16 ‘‘SECTION 2. The limit on the debt of the United 17 States held by the public shall not be increased, unless 18 three-fifths of the whole number of each House shall pro- 19 vide by law for such an increase by a rollcall vote. 20 ‘‘SECTION 3. Prior to each fiscal year, the President 21 shall transmit to the Congress a proposed budget for the 22 United States Government for that fiscal year in which 23 total outlays do not exceed total receipts. 24 VerDate Sep 11 2014 22:58 Jan 12, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\HJ19.IH HJ19 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •HJ 19 IH ‘‘SECTION 4. No bill to increase revenue shall become 1 law unless approved by a three-fifths majority of the whole 2 number of each House by a rollcall vote. 3 ‘‘SECTION 5. Any budget plan for a fiscal year for 4 the Government submitted by the President to the Con- 5 gress shall include a justification by each department or 6 agency of the Government for any funding proposed for 7 that department or agency in that plan. The justification 8 shall include a justification of each line item in the budget 9 of that department or agency based upon its effect on car- 10 rying out its mission and its effect, if any, on the gross 11 domestic product of the United States and an additional 12 funding level below the requested number that would allow 13 that department or agency to complete all of its critical 14 mission functions. 15 ‘‘SECTION 6. Total receipts shall include all receipts 16 of the United States Government except those derived 17 from borrowing. Total outlays shall include all outlays of 18 the United States Government except for those for repay- 19 ment of debt principal. 20 ‘‘SECTION 7. The Congress shall enforce and imple- 21 ment this article by appropriate legislation, which may rely 22 on estimates of outlays and receipts. 23 ‘‘SECTION 8. The Congress may waive the provisions 24 of this article for any fiscal year in which a declaration 25 VerDate Sep 11 2014 22:58 Jan 12, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\HJ19.IH HJ19 pbinns on DSKJLVW7X2PROD with $$_JOB 4 •HJ 19 IH of war is in effect. The provisions of this article may be 1 waived for any fiscal year in which the United States is 2 engaged in military conflict or after any event which 3 causes an imminent and serious military threat to national 4 security and is so declared by a joint resolution or during 5 which a natural disaster is declared by a joint resolution, 6 adopted by a vote by two-thirds of each House, which be- 7 comes law. 8 ‘‘SECTION 9. This article shall take effect beginning 9 with the earlier of the tenth fiscal year beginning after 10 its ratification or the first fiscal year beginning after any 11 fiscal year in which the budget of the United States is 12 not in deficit.’’. 13 Æ VerDate Sep 11 2014 22:58 Jan 12, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\HJ19.IH HJ19 pbinns on DSKJLVW7X2PROD with $$_JOB

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