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Federal

Balanced Budget Accountability Act

Source: Congress.gov  ·  1,793 words in original text
This bill would reduce or withhold pay for Members of Congress if they fail to pass a budget that does not balance the federal government's spending with its income. Starting in 2033, Congress must pass budgets where total spending does not exceed total income and total spending stays at or below 18 percent of the nation's economic output. ##
Members of Congress (including Senators, Representatives, Delegates and Resident Commissioners). The Office of Management and Budget director, the House and Senate payroll administrators, and the Secretary of the Treasury would also be involved in implementing the bill. ##
• If Congress does not pass a balanced budget for fiscal year 2024 before April 16, 2023, Member salaries will be held in a special account (escrow account) and only released if a balanced budget is passed or when Congress ends, whichever comes first (Sec. 2(c)(1)) • If Congress does not pass a balanced budget for fiscal year 2025 before April 16, 2024, the same salary withholding process applies (Sec. 2(c)(2)) • Starting with fiscal year 2026 and beyond, if Congress fails to pass a balanced budget by the April 16 deadline, all Members would be paid only $1 per year until a balanced budget is certified (Sec. 2(d)) • Any bill that increases government income (revenue) requires approval from three-fifths of Members in that chamber to pass (Sec. 3) ##
If this becomes law, Congress faces financial consequences if it does not pass balanced budgets. For fiscal years 2024 and 2025, Member pay gets temporarily held. For 2026 onward, Members receive only $1 annually until a balanced budget is adopted. Additionally, bills that raise government income require a higher vote threshold to pass. ##
A "balanced budget" means a budget where total spending does not exceed total income AND total spending is not more than 18 percent of the nation's projected economic output for that year (Sec. 2(a)(1)). ##
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.