Proposing an amendment to the Constitution of the United States relative to balancing the budget.
- Bill Number
- H.J.Res. 3
- 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
- 2025-06-12T08:06:42Z
AI-Generated Summary
Purpose
This joint resolution (H.J. Res. 3) proposes a constitutional amendment to enforce a balanced federal budget by limiting government spending to revenues, capping outlays relative to the economy, and imposing strict rules on taxes and debt increases. The goal is to promote fiscal discipline and reduce deficits, with limited exceptions for emergencies like war or national security threats.
Key Provisions
- Balanced Budget Requirement (Section 1): Federal spending (outlays) cannot exceed revenues (receipts) in any fiscal year, unless two-thirds of members in both the House and Senate approve an exception via a rollcall vote.
- Spending Cap (Section 2): Outlays cannot exceed 18% of the U.S. gross domestic product (GDP, a measure of the total value of goods and services produced in the country) from the prior calendar year, unless two-thirds of members in each chamber approve a specific higher amount via rollcall vote.
- Presidential Budget Proposal (Section 3): The President must submit an annual budget to Congress that balances revenues and outlays while staying under the 18% GDP cap.
- Tax Increases (Section 4): Any new tax, rate increase, or overall revenue hike requires a two-thirds majority in both chambers via rollcall vote. (Exceptions apply for revenue gains from lowering tax rates.)
- Debt Limit (Section 5): Raising the national debt ceiling needs approval from three-fifths of members in each chamber via rollcall vote.
- War Exception (Section 6): Congress can waive budget and debt rules during a declared war if a majority in each chamber approves a specific spending excess via rollcall vote.
- Military Conflict Exception (Section 7): Waivers are allowed for military conflicts posing an imminent threat to national security, if declared by three-fifths of members in each chamber; the waiver must specify and limit extra spending to the conflict's needs.
- Judicial Limits (Section 8): Courts cannot order tax increases to enforce these rules.
- Definitions (Section 9): Receipts exclude borrowing; outlays exclude debt principal repayments.
- Enforcement (Section 10): Congress can pass laws to implement the amendment, using estimates for outlays, receipts, and GDP.
- Effective Date (Section 11): The amendment takes effect in the fifth fiscal year after ratification by three-fourths of state legislatures.
Significant Changes to Existing Law
- Introduces mandatory balanced budgets and spending caps, which are not currently required by the Constitution; current law relies on annual appropriations and debt ceiling votes without supermajority thresholds.
- Shifts budgeting power toward stricter congressional oversight, requiring supermajorities (two-thirds or three-fifths) for exceptions, overrides, taxes, and debt—far beyond the simple majority needed today.
- Mandates a compliant presidential budget proposal, altering the executive's role in fiscal planning.
- Prohibits courts from enforcing revenue increases, limiting judicial intervention in budget disputes, unlike some existing enforcement mechanisms.
Potential Impacts
- Government Agencies: Could force cuts in federal programs (e.g., defense, social services) to meet caps, leading to reduced funding and operational constraints unless exceptions are invoked.
- Citizens: May limit new spending on public services, infrastructure, or entitlements, potentially stabilizing taxes but risking economic slowdowns during recessions; higher thresholds for tax hikes could preserve lower rates but constrain revenue for emergencies.
- International Relations: Debt limits and spending caps might reduce U.S. flexibility in foreign aid, military engagements, or global economic responses, affecting alliances and responses to international crises; war exceptions provide some leeway but require congressional approval.
Main Stakeholders Affected
- Congress: Bears primary responsibility for approvals, waivers, and enforcement, potentially increasing internal debates and gridlock.
- President: Must propose compliant budgets, limiting executive discretion in fiscal policy.
- State Governments: Involved in ratification; once effective, could influence federal funding flows to states (e.g., for Medicaid or disaster aid).
- Taxpayers and Businesses: Face potential restrictions on tax policy changes, affecting personal and corporate finances.
- Federal Program Beneficiaries: Groups relying on government spending (e.g., seniors, veterans, low-income families) may see program stability or cuts depending on enforcement.
Notable Legal, Constitutional, or Political Implications
- Constitutional: As an amendment, it would embed fiscal rules directly into the Constitution, making them harder to change than statutes; requires ratification by 38 states, a high bar that could spark debates on federalism and state rights.
- Legal: Relies on congressional estimates for enforcement, potentially leading to disputes over accuracy; the ban on court-ordered tax hikes protects legislative authority but may complicate compliance if political stalemates occur.
- Political: Supermajority requirements could empower minorities to block spending or taxes, fostering bipartisanship or paralysis; exceptions for war and conflicts tie fiscal policy to national security, raising questions about definitions of "imminent threats." Overall, it shifts power dynamics toward fiscal conservatism, with risks of economic rigidity during downturns.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
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 an amendment to the Constitution of the United States relative to balancing the budget. — issued 2025-01-03 — PDF (4 pages)