A joint resolution proposing a balanced budget amendment to the Constitution of the United States.

Key Points

• This resolution proposes a change to the U.S. Constitution that would require the federal government to balance its budget. If passed and approved by the states, the government would have 10 years to ensure that the money it spends does not exceed the money it collects from taxes and other sources.
• The rule would count almost all government spending, but it would not include payments made on the existing national debt. On the income side, the government would not be allowed to count borrowed money as part of its official revenue to make the budget look balanced.
• There is an exception for emergencies like wars or national crises. If two-thirds of both the House and the Senate agree, the government could spend more than it earns for a limited time, but any new debt from that spending must be paid back as soon as possible.
• To become part of the Constitution, this proposal must first be approved by two-thirds of both the House and the Senate. After that, three-fourths of all U.S. states (38 out of 50) would have to vote to approve it within a seven-year window.
• This policy aims to stop the national debt from growing by forcing Congress to live within its means. However, critics often argue that a strict balanced budget rule could lead to major cuts in programs like Social Security or make it harder for the government to respond to economic recessions.