Proposing an amendment to the Constitution of the United States relative to balancing the budget.
Proposing an amendment to the Constitution of the United States relative to balancing the budget.
Plain Language Summary
# Summary of HJRES 3: Balanced Budget Amendment This bill proposes a constitutional amendment requiring the federal government to balance its budget each year, with limited exceptions. Specifically, it would prohibit federal spending from exceeding federal revenue unless Congress approves the overspending with a two-thirds vote in both the House and Senate. The amendment also caps total federal spending at 18% of the nation's gross domestic product (GDP) unless Congress votes to increase this limit with a two-thirds majority.
Additionally, it would require a two-thirds vote to create new taxes or raise tax rates, and a three-fifths vote to increase the national debt limit. This amendment would affect all Americans and the federal government's ability to spend on programs like Social Security, Medicare, defense, and infrastructure. Supporters argue it would enforce fiscal responsibility and reduce government debt, while critics contend it could force severe spending cuts or tax increases and limit the government's flexibility during economic crises or emergencies. Currently, the bill is in committee and has not advanced further in Congress.
CRS Official Summary
This joint resolution proposes a constitutional amendment prohibiting total outlays for a fiscal year from exceeding total receipts for that fiscal year unless Congress authorizes the excess by a two-thirds vote of each chamber. The prohibition excludes outlays for repayment of debt principal and receipts derived from borrowing. The amendment prohibits total outlays for any fiscal year from exceeding 18% of the gross domestic product of the United States unless two-thirds of each chamber of Congress provides for a specific increase above this amount. The amendment requires a two-thirds vote of each chamber of Congress to impose a new tax, increase the statutory rate of any tax, or increase the aggregate amount of revenue. It requires a three-fifths vote of each chamber to increase the limit on the debt of the United States. The President must submit an annual budget in which total outlays do not exceed total receipts or 18% of the gross domestic product of the United States. The amendment prohibits a court from ordering a revenue increase to enforce the requirements. Congress may waive specified requirements when a declaration of war is in effect or the United States is engaged in a military conflict that causes an imminent and serious military threat to national security.
Latest Action
Referred to the House Committee on the Judiciary.