Proposed amendment would require federal budget to balance each year

What does this do?

This bill proposes a constitutional amendment requiring the federal government to balance its budget each year, spending no more than it collects unless two-thirds of both the House and Senate vote to allow otherwise. It requires the President to submit a balanced budget proposal annually and directs Congress to pass enforcement laws, using estimates when needed. If ratified, it would take effect five fiscal years later.

Who does it affect?

This affects nearly every American, since it could change funding for programs like Social Security, Medicare, defense, education, and infrastructure. It also requires action from Congress, the President, and three-fourths of state legislatures for ratification.

Why does it matter?

Supporters argue it would control national debt growth, while critics worry it could force spending cuts or tax increases during economic downturns. As a constitutional amendment, it faces a high approval bar and does not require the President's signature.

Where does it stand?