Proposed amendment would force federal budget to balance over time

What does this do?

This bill proposes a constitutional amendment requiring the federal government's spending to match its income over time, not necessarily every year. Debt payments would not count as spending, and borrowed money would not count as income, and Congress would have ten years after ratification to reach balance. A two-thirds vote of both chambers could allow temporary emergency overspending, but any resulting debt would need to be repaid as soon as reasonably possible.

Who does it affect?

This affects all Americans who rely on federal programs such as Social Security, Medicare, defense, or education, as well as anyone affected by federal tax or economic policy. It also requires action from Congress and three-fourths of state legislatures to become law.

Why does it matter?

If ratified, the amendment would permanently limit federal spending and borrowing, potentially requiring cuts to programs, tax increases, or both. It faces a very high approval bar: two-thirds of both the House and Senate, then ratification by 38 of 50 states within seven years.

Where does it stand?