Proposed amendment would require federal government to balance its budget

What does this do?

This bill proposes a constitutional amendment requiring the federal government to balance its budget yearly, generally barring spending beyond revenue. Deficit spending would need a two-thirds recorded vote in both chambers, except during a declared war, national emergency, or natural disaster approved by a simple majority joint resolution. The President would submit a balanced budget proposal annually, and Congress could pass enforcement laws.

Who does it affect?

All Americans would be affected indirectly, since the requirement could change how federal spending on programs like Social Security, Medicare, and defense is decided. Congress and the President would carry out the new budget procedures.

Why does it matter?

The requirement would not take effect immediately, needing approval by two-thirds of Congress, ratification by 38 states, and would start in the fifth fiscal year after ratification. It could significantly limit deficit spending, particularly during economic downturns when governments typically spend more than they collect.

Where does it stand?