Proposed amendment would force Congress to balance the federal budget

What does this do?

This bill proposes a constitutional amendment requiring the federal government to balance its budget, capping yearly spending at the average revenue collected over the prior three years, adjusted for population and inflation. Congress could exceed the cap only with a two-thirds vote in both chambers or during a declared war, and any new tax or tax increase would also need a two-thirds vote. If ratified, rules would take effect five years later.

Who does it affect?

This would affect nearly everyone, since it would reshape how Congress funds Social Security, Medicare, defense, and other programs, and how tax laws are passed.

Why does it matter?

Supporters argue it would control government debt, while critics argue it could limit flexibility to respond to emergencies or recessions. As a constitutional amendment, it requires two-thirds approval in Congress and ratification by 38 states, a process most proposals fail to complete.

Where does it stand?