Overview

• Proposes constitutional amendment requiring federal spending to match revenue each fiscal year
• Congress introduced this joint resolution on January 3, 2025
• Would require 2/3 of each House to pass, then ratification by 3/4 of state legislatures within 7 years
• Currently referred to House Judiciary Committee

Who does this affect?

• Main groups: All Americans through changes to federal spending priorities, government programs, and taxation
• Who benefits: Fiscal conservatives who prioritize deficit reduction and limited government spending
• Who loses: Those relying on federal programs that might face cuts to achieve balanced budgets; future Congresses would have reduced flexibility during economic downturns
• Teen impact score: 5/10 (indirect impact via federal fiscal constraints shaping future government services and family economics)

What This Bill Does

• Section 1 prohibits annual spending from exceeding revenue unless 3/5 of each House approves specific deficit spending by rollcall vote
• Section 2 blocks debt ceiling increases unless 3/5 of each House approves by rollcall vote
• Section 3 requires President to submit balanced budget proposal before each fiscal year begins
• Section 4 mandates that any tax increase requires majority approval of whole House membership by rollcall vote (not just members present)
• Section 5 allows waivers during declared wars or military conflicts threatening national security, approved by majority vote
• Section 7 defines receipts as all government revenue except borrowing; defines outlays as all spending except debt principal repayment
• Section 8 delays implementation until 5th fiscal year after ratification to allow transition period

Legislative Status

• Status: Introduced in House on January 3, 2025
• Referred to House Judiciary Committee for consideration
• Constitutional amendments require extraordinary approval: 2/3 vote in House and Senate, then ratification by 38 state legislatures within 7 years

In short

• Federal government would be constitutionally required to balance its budget annually, like most states do.
• Congress could override the requirement with 3/5 supermajority during deficits or when raising debt ceiling.
• President must propose balanced budgets; tax increases need recorded majority vote.
• Waivers allowed during declared wars or serious military threats to national security.
• Would take effect 5 years after ratification to allow government transition time.

Why should I care?

This amendment would fundamentally reshape how the federal government operates. A balanced budget requirement could force major cuts to programs families depend on—Social Security, Medicare, education funding, infrastructure—or require tax increases to cover current spending levels. During recessions, when government typically borrows to stimulate the economy, the 3/5 supermajority rule could make emergency spending harder. On the flip side, supporters argue it would control the national debt (currently over $36 trillion) and force fiscal discipline. The effects would ripple through every aspect of government services, from school funding formulas to student loan programs to disaster relief. Whether this passes or not, the debate reveals deep divisions about government's role in the economy.