Overview

• Proposes constitutional amendment establishing strict balanced budget requirements for federal government
• Would require two-thirds congressional supermajority to run deficits, exceed 18% GDP spending cap, or raise taxes
• Constitutional amendments need two-thirds vote in both House and Senate, then ratification by three-fourths of state legislatures (38 states)

Who does this affect?

• Main groups: Future taxpayers, federal program recipients, state governments dependent on federal funding
• Who benefits/loses: Proponents argue it controls national debt; opponents say it could force cuts to Social Security, Medicare, education, infrastructure during recessions
• Teen impact score: 3/10 (procedural budget rules with uncertain future impact on government programs)

What This Bill Does

• Section 1: Prohibits annual federal spending from exceeding revenue unless two-thirds of each House approves deficit by rollcall vote
• Section 2: Caps total federal outlays at 18% of previous year's GDP unless two-thirds supermajority authorizes exceeding cap
• Section 3: Requires President to submit balanced budget proposals that meet both spending limits
• Section 4: Requires two-thirds vote in both chambers to pass any bill imposing new taxes or raising existing tax rates
• Section 5: Requires three-fifths vote (60% majority) in both chambers to raise debt ceiling
• Sections 6-7: Allows Congress to waive budget rules during declared war (simple majority) or military conflicts threatening national security (three-fifths vote)
• Section 11: Takes effect beginning with fifth fiscal year after ratification by states

Legislative Status

• Introduced January 3, 2025, referred to House Judiciary Committee
• Constitutional amendments require extraordinary approval: two-thirds vote in House and Senate, then ratification by 38 state legislatures
• No constitutional amendment has been ratified since 1992

In short

• Proposes adding balanced budget requirements to U.S. Constitution
• Would prohibit federal government from spending more than it collects in revenue unless supermajorities vote to override
• Sets 18% of GDP as hard spending cap and requires supermajority votes for tax increases or debt limit increases
• Includes war exceptions allowing Congress to suspend rules during declared wars or major military threats
• Constitutional amendments face extremely high approval thresholds and rarely succeed

Why should I care?

Constitutional amendments permanently change fundamental governing rules. This proposal would restrict how Congress can tax and spend, potentially affecting every federal program from student loans to highway funding to disaster relief. Supporters argue strict budget limits prevent runaway debt that burdens future generations. Critics warn rigid caps could force harmful cuts during economic downturns when families need unemployment benefits, food assistance, or stimulus spending. The 18% GDP cap would require spending cuts below current levels (federal spending averaged 21% of GDP 2020-2024). Whether this passes or not, the debate reflects broader questions about government's role in the economy and who bears the costs of fiscal discipline.