Proposing a balanced budget amendment to the Constitution of the United States.
Introduced July 23, 2025 · Last action July 23, 2025
Plain English Summary
This joint resolution proposes a constitutional amendment requiring the federal government to balance its spending and revenues within ten years of ratification, with exceptions for emergencies approved by a two-thirds vote in both chambers of Congress. The amendment defines balanced as expenditures equaling receipts, excluding debt payments and borrowing, and allows the deficit to be eliminated over multiple years rather than annually.
Who benefits
Fiscal conservatives and balanced-budget advocates who believe mandatory deficit reduction will constrain government spending; investors and creditors who may benefit from reduced federal borrowing and interest rates; states and localities that compete for federal funds and may see predictable budget limits; industries dependent on stable, low interest rates (finance, real estate, construction).
Who pays / loses
Federal agencies and programs that face mandatory budget reductions or elimination to achieve balance; beneficiaries of federal entitlements and discretionary programs (Social Security, Medicare, Medicaid, defense, education, transportation); lower-income households more dependent on federal services; future generations if emergency provisions are used to circumvent the balanced budget requirement; state and local governments receiving federal grants that may be cut.
Funding & Lobbying Interests
The sponsor, Rep. Moran (R-TX), received $189,425 from 'Other' sources, $17,900 from finance sector donors, and $14,450 from energy sector donors in 2024. Balanced-budget amendments have historically been championed by business groups, fiscal conservative think tanks (Heritage Foundation, Cato Institute), and anti-government-spending advocacy organizations. Financial and investment sectors support balanced-budget proposals because they reduce federal borrowing and help maintain lower interest rates.
Political Impact
Affected Groups
All federal program beneficiaries, including 46 million Social Security recipients, 66 million Medicare beneficiaries, 72 million Medicaid beneficiaries, 13 million SNAP recipients, federal employees and military personnel, state and local governments receiving federal revenue-sharing and grant funds, and lower-income households (bottom 50% by income) that receive disproportionately higher shares of federal benefits relative to tax contributions.
Political Subtext
Proponents argue that a balanced budget amendment will enforce fiscal discipline, prevent runaway deficits, and protect future generations from unsustainable debt. They assert it mirrors household budgeting principles and will restore investor confidence. Critics contend that a constitutional requirement removes Congress's ability to respond to recessions, wars, and public health crises with countercyclical spending; that it forces pro-cyclical austerity during downturns, worsening economic damage; and that the emergency override provision (two-thirds vote) is easily manipulated. Non-partisan sources (CBO, Congressional Research Service) have found that automatic deficit reduction during economic weakness reduces growth, though evidence on long-term debt sustainability is mixed. The amendment's definition of 'emergency' is not specified, creating ambiguity.
Real-World Stakes
If ratified, Congress would be constitutionally required to eliminate the federal deficit within ten years—currently running at roughly $1.8 trillion annually (roughly 6.5% of GDP). This would require either cutting spending or raising revenues by that magnitude. During the 2008–2009 financial crisis, automatic spending cuts or tax increases of that scale would have deepened the recession. States with balanced-budget requirements (all 50 states) have documented that such rules force pro-cyclical cuts during downturns, worsening unemployment and reducing services. The emergency override provision (two-thirds congressional vote) has no clear definition of 'emergency,' potentially allowing broad use. No recent balanced budget amendment has passed Congress; the 1995 amendment came one Senate vote short. Economic research from the non-partisan Peterson Institute and CBO indicates that balanced-budget rules in developed democracies correlate with slower growth during recessions but show mixed evidence on long-term fiscal health.
Sponsor
Vote Record
No recorded votes.
Campaign Finance — Primary Sponsor
Top contributing industries
Other$189,425
Finance$17,900
Energy$14,450
Law$3,800
Healthcare$3,750
501(c)(4) disclosure: Contributions from 501(c)(4) "dark money" organizations are not required to be publicly disclosed and are not reflected in the figures above. Data sourced from FEC public disclosure filings.
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