Proposed Constitutional Amendment: Requiring a Balanced Federal Budget.
This proposed constitutional amendment mandates that the federal government cannot spend more than it collects in a given year, aiming to curb national debt. While promoting fiscal discipline, the rule includes exceptions for wartime, severe economic crises, and explicitly excludes Social Security and Medicare trust funds from the primary calculation. Citizens might face pressure for cuts in non-exempt federal programs or tax increases to maintain balance.
Key points
Federal spending cannot exceed receipts unless 3/5 of both Houses of Congress vote specifically to allow deficit spending.
The balanced budget rule is automatically suspended during declared wars or severe economic downturns (e.g., unemployment above 7% or zero GDP growth for two quarters).
Social Security and Medicare funds are excluded from the budget calculation and protected from court-ordered benefit cuts, unless the funds themselves become insolvent.
The amendment would take effect five years after its ratification by the states, allowing time for fiscal policy adjustments.
Expired
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