Proposing a balanced budget amendment to the Constitution of the United States.

If ratified, this amendment would eliminate the federal government's ability to run deficits. Current federal revenues (approximately $4.9 trillion annually) would have to equal spending immediately, requiring either spending cuts of roughly 20-25% or revenue increases of equal magnitude. Social Security, Medicare, Medicaid, defense, and federal employee compensation account for approximately 85% of federal spending, meaning cuts would fall heavily on these programs or require politically difficult tax increases that would require supermajority approval. During the 2008-2009 financial crisis, the federal government ran deficits of 9-10% of GDP to prevent economic collapse; under this amendment, such response would be constitutionally prohibited. State-level balanced budget requirements (all 50 states have some form) correlate with pro-cyclical fiscal contraction—states reduced spending during the 2008-2009 recession and 2020-2021 pandemic, exacerbating economic hardship. The last major recession where the federal government was unable to deficit-spend (early 1930s) preceded the Great Depression's worst years. The amendment would also require a two-thirds supermajority to raise any revenue, giving a minority coalition veto power over tax policy and effectively preventing revenue adjustment even if spending needs grow due to demographics (aging population increasing Social Security and Medicare costs by law).