Proposing a balanced budget amendment to the Constitution of the United States.
- Sponsor
- Rep. Moran, Nathaniel [R-TX-1]
- Committees
- Judiciary Committee (primary)
- Last action
- Jul 23, 2025
Bottom line
This resolution seeks to fundamentally alter federal fiscal policy by constitutionally mandating a balanced budget, with specific provisions for multi-year balancing and emergency exceptions.
What it actually does
This joint resolution proposes a constitutional amendment requiring the federal government to balance its expenditures and receipts, allowing for this balance to occur over more than one year. It mandates that Congress achieve this balance within ten years of the amendment's ratification. The resolution also includes an emergency clause, permitting a two-thirds vote in both chambers to authorize exceeding expenditures for limited times, with incurred debts to be paid as soon as practicable.
Proponents argue
Proponents argue that a balanced budget amendment is essential to curb excessive government spending, reduce the national debt, and ensure fiscal responsibility for future generations. They contend it would impose necessary discipline on Congress, preventing unsustainable deficits and fostering a more stable economic environment by forcing the government to live within its means.
Opponents contend
Opponents typically argue that a balanced budget amendment is an inflexible tool that could hinder the government's ability to respond effectively to economic downturns, national emergencies, or unforeseen crises. They contend it could force drastic cuts to essential programs or tax increases during recessions, potentially exacerbating economic hardship and shifting power away from elected representatives.
The bill text is extremely short and can be read in under a minute, but its implications are vast and require significant consideration and analysis.
Article --, Section 1
Mandate for Balanced Expenditures and Receipts
This section requires that the federal government's spending (excluding debt payments) must equal its income (excluding borrowed funds). This balance doesn't have to happen every single year but can occur over a period longer than one year. Congress is given a ten-year window after the amendment is ratified to fully implement this balanced budget requirement.
Supporters argue
Supporters argue this provision is the core of fiscal responsibility, forcing Congress to live within its means, reducing national debt, and preventing future generations from inheriting unsustainable financial burdens. They believe it will instill long-term economic stability.
Critics contend
Critics argue this provision is overly rigid, potentially forcing cuts to critical programs or tax increases during economic downturns, which could worsen recessions and limit the government's ability to invest in long-term growth or respond to crises.
Tradeoffs
This provision balances the desire for strict fiscal discipline and debt reduction against the need for flexibility in economic management and the government's ability to respond to societal needs and economic cycles.
Article --, Section 2
Emergency Spending Authorization
This section allows Congress to temporarily exceed the balanced budget requirements during emergency situations. To do so, two-thirds of both the House of Representatives and the Senate must vote to authorize such expenditures for limited times. Any debts incurred as a result of these emergency expenditures must be repaid as soon as practicable.