Proposing an amendment to the Constitution of the United States requiring a balanced budget for the Federal Government.
Introduced January 9, 2026 · Last action March 18, 2026
Plain English Summary
This joint resolution proposes a constitutional amendment requiring the federal government to balance its budget by limiting annual spending to the average tax revenues collected over the prior three years, adjusted for population growth and inflation. Congress could override this limit only through a two-thirds supermajority vote in both chambers, or during declared wars. The amendment would also require a two-thirds supermajority to pass any new tax or tax increase.
Who benefits
Fiscal conservatives and deficit-reduction advocates; taxpayers who prioritize lower government spending and debt reduction; investors and creditors concerned with long-term government solvency; groups opposing tax increases (generally high-income earners and businesses).
Who pays / loses
Federal beneficiaries whose programs would face automatic cuts or reduced growth if revenues decline or don't grow (Social Security recipients, Medicare beneficiaries, military personnel, federal employees, veterans); low-income households dependent on means-tested programs; states receiving federal grants and education funding; individuals in sectors receiving federal subsidies or contracts; Congress, which loses budgetary flexibility during non-war economic downturns.
Funding & Lobbying Interests
Traditionally supported by anti-tax and fiscal conservative organizations including Americans for Prosperity, the Cato Institute, the National Taxpayers Union, and similar groups backed by donors prioritizing deficit reduction and lower government spending. Opposed by labor unions, public sector employee organizations, progressive advocacy groups, and service-provider organizations dependent on federal funding.
Political Impact
Affected Groups
Federal beneficiaries: 65+ million Medicare beneficiaries, 67+ million Social Security recipients, 42+ million SNAP recipients, millions of federal employees and retirees. State and local governments receiving federal education, infrastructure, and social service grants. Defense contractors and military-dependent communities. Low-income households relying on means-tested federal programs. Healthcare providers receiving Medicare/Medicaid payments.
Political Subtext
Proponents argue a constitutional balanced budget amendment would enforce fiscal discipline, prevent runaway deficits, stabilize long-term national debt, and restrain government size. Critics counter that it would prevent Congress from responding to recessions (when revenues drop and safety-net demand surges), force automatic austerity regardless of economic conditions, effectively lock in large tax increases to meet the spending constraint, and eliminate the economic tool of countercyclical spending that helped end the Great Recession and 2008 financial crisis. Non-partisan fiscal analysts at CBO and academic consensus note that rigid balanced budget requirements amplify recessions by forcing pro-cyclical spending cuts when the economy contracts.
Real-World Stakes
If ratified and implemented, this would fundamentally constrain federal fiscal capacity. During the 2008-09 recession, federal revenues fell sharply while safety-net demands surged; a balanced budget requirement would have forced automatic cuts to Social Security, Medicare, defense, or required immediate 20%+ tax increases mid-recession. The amendment creates a structural trap: if revenues fall (recession, lower growth), spending must fall proportionally—preventing automatic stabilizers. The two-thirds tax vote requirement means any revenue increase needs supermajority support, likely forcing spending cuts or reducing benefits instead. States with balanced budget requirements (all 50) remain solvent by borrowing long-term and running short-term surpluses; the federal government cannot follow this model because federal debt serves as world reserve collateral. Precedent: European austerity following the 2008 crisis (Spain, Greece, Italy) relied on similar constraints and prolonged recessions by 2-4 years. The amendment's exemption of debt payments means interest on existing debt becomes protected spending, forcing cuts to discretionary programs first.
Sponsor
Sponsor information not available.
Vote Record
No recorded votes.
Campaign Finance — Primary Sponsor
No campaign finance data available yet.
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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