.Proposing a balanced budget amendment to the Constitution requiring that each agency and department's funding is justified.

Bill Number

H.J.Res. 11

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Economics and Public Finance

Status

Introduced

Latest Action

2025-01-03: Referred to the House Committee on the Judiciary.

Last Updated

2025-03-27T08:07:25Z

AI-Generated Summary

Purpose of the Legislation

This joint resolution (H.J. Res. 11) proposes a constitutional amendment to enforce a balanced federal budget. It aims to limit government spending to match revenues, cap expenditures relative to the economy's size (gross domestic product, or GDP, which measures the total value of goods and services produced in the U.S.), and require detailed justifications for funding each federal agency and department. The goal is to promote fiscal responsibility while allowing limited exceptions for emergencies.

Key Provisions

The proposed amendment includes nine sections outlining budget rules:

• Section 1: Federal spending (outlays) for any fiscal year cannot exceed revenues (receipts) unless approved by a three-fifths supermajority vote in both the House and Senate via rollcall. Spending is capped at 20% of estimated GDP in the first year it applies, decreasing by 0.1 percentage points annually, but never below 16% of GDP.

• Section 2: The national debt limit (total public debt) cannot increase without a three-fifths supermajority vote in both chambers via rollcall.

• Section 3: The President must submit a proposed budget each year where spending does not exceed revenues.

• Section 4: Any bill raising taxes or other revenues requires a three-fifths supermajority vote in both chambers via rollcall.

• Section 5: The President's budget must include justifications from each federal department or agency for their requested funding. This covers every budget line item (specific expense category), explaining its role in fulfilling the agency's mission, any impact on GDP, and an alternative lower funding level that still covers "critical mission functions" (essential duties).

• Section 6: Defines "total receipts" as all government income except borrowing, and "total outlays" as all spending except debt principal repayments.

• Section 7: Congress must pass laws to enforce the amendment, using estimates for revenues and spending if needed.

• Section 8: Waivers are allowed for:
• Any fiscal year during a declared war.
• Military conflicts, serious national security threats (declared by joint resolution), or natural disasters (declared by joint resolution), each requiring a two-thirds vote in both chambers.

• Section 9: The amendment takes effect in the earlier of: the 10th fiscal year after ratification, or the first fiscal year after a year with a budget deficit.

The amendment requires two-thirds approval in both the House and Senate to pass Congress, followed by ratification by three-fourths of state legislatures within seven years.

Significant Changes to Existing Law

• Introduces a constitutional mandate for balanced budgets, unlike current law where deficits are common and only limited by statutory debt ceilings (which can be raised by simple majorities).
• Imposes supermajority requirements (three-fifths for most exceptions, two-thirds for emergencies) for spending excesses, debt increases, and tax hikes—stricter than the simple majority needed today.
• Requires detailed, mission-based justifications for agency budgets, including GDP impacts and minimal funding alternatives, which go beyond the current budget process under the Congressional Budget Act (where agencies submit requests but without these specific mandates).
• Sets hard GDP-based spending caps with a gradual decline and floor, replacing flexible annual appropriations.

Potential Impacts

• On Government Agencies: Agencies must justify every budget item, potentially leading to more scrutiny, reduced funding for non-essential programs, and a focus on "critical" functions. This could streamline operations but force cuts in discretionary spending (non-mandatory areas like education or research).

• On Citizens: May result in lower deficits and debt over time, potentially stabilizing taxes or reducing future borrowing costs. However, it could limit funding for public services, social programs, or infrastructure if revenues fall short, affecting everyday access to government benefits.

• On International Relations: Stricter debt limits might enhance U.S. credit reliability globally, but spending caps could constrain foreign aid, military engagements, or economic responses to international crises, influencing alliances or trade.

Main Stakeholders Affected

• Congress: Bears responsibility for enforcement, waivers, and supermajority votes, shifting power dynamics in budgeting.
• President and Executive Branch: Must propose balanced budgets with agency justifications, limiting executive flexibility in fiscal planning.
• Federal Agencies and Departments: Required to provide detailed funding rationales, impacting their operations and autonomy.
• States: Play a key role in ratification; once enacted, balanced budgets could indirectly affect federal grants to states.
• Taxpayers and Citizens: Benefit from fiscal discipline but may face service reductions or higher taxes if supermajorities block adjustments.
• Economy at Large: Businesses and investors could see more predictable fiscal policy, influencing growth and borrowing rates.

Notable Legal, Constitutional, or Political Implications

• Constitutional: As an amendment, it would embed fiscal rules directly in the Constitution, making them harder to change than statutes. It relies on estimates (e.g., for GDP), which could lead to legal disputes over accuracy, potentially resolved by courts.

• Legal: Congress gains authority to implement via laws, but supermajority thresholds might cause gridlock. Waivers for emergencies preserve flexibility, but defining "imminent threats" or "critical functions" could spark litigation.

• Political: Encourages bipartisan consensus on budgets but risks politicizing emergencies or agency missions. Ratification would require broad state support, highlighting divides on federal spending; failure could fuel debates on fiscal policy without achieving reform.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Perry, Scott [R-PA-10]

Cosponsors (4)

Rep. Cloud, Michael [R-TX-27], Rep. Ogles, Andrew [R-TN-5], Rep. Zinke, Ryan K. [R-MT-1], Rep. Clyde, Andrew S. [R-GA-9]

Recent Actions

• 2025-01-03: Referred to the House Committee on the Judiciary.
• 2025-01-03: Introduced in House
• 2025-01-03: Introduced in House

Bill Versions

• Proposing a balanced budget amendment to the Constitution requiring that each agency and department’s funding is justified. — issued 2025-01-03 — PDF (4 pages)