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

Key Points

• This proposal would change the U.S. Constitution to require the federal government to balance its budget every year. This means the government would be banned from spending more money than it brings in through taxes and other income.
• If the government wants to spend more than it has, two-thirds of both the House and the Senate would have to hold a special vote to allow it. This would make it much harder for the government to run a deficit or increase the national debt during normal years.
• The President would be required to submit a balanced budget plan to Congress every single year. The rule counts all government income except for borrowed money, and all spending except for paying back the original amount of old debt.
• To become part of the Constitution, this plan needs a two-thirds vote in both the House and Senate, and then it must be approved by 38 states within seven years. If it passes those hurdles, the new rules would start five years after the states finish approving it.