Balanced Budget Amendment Proposal

Official: Proposing an amendment to the Constitution of the United States requiring a balanced budget for the Federal Government.

IntroducedJanuary 9, 2026

Economics and Public FinanceBudget deficits and national debtBudget processLegislative rules and procedureConstitution and constitutional amendments

Why This Matters

This resolution proposes a change to the Constitution that would require the federal government to maintain a balanced budget each year.

If you pay taxes, the government would have to limit its spending to match its income each year.

Affects: This resolution affects all taxpayers and government services that rely on federal funding.

Summary

This joint resolution proposes a constitutional amendment prohibiting total federal expenditures for a year from exceeding the average annual federal receipts collected in the three prior years, adjusted for changes in the population of U.S. citizens and inflation. Expenditures for payment of debt and receipts derived from borrowing are excluded. Under the amendment, Congress may authorize specific expenditures in excess of the limit with (1) a roll call vote of two-thirds of each chamber, or (2) a roll call vote for any year in which a declaration of war is in effect. The amendment also prohibits any bill to levy a new tax or increase the rate of any tax from becoming law unless it has been approved by a roll call vote of two-thirds of the whole number of each chamber of Congress. The requirements take effect in the fifth year beginning after ratification of the amendment.

What does this resolution do?

1. This resolution proposes an amendment to the Constitution requiring the federal government to balance its budget each year. 2. Total government spending cannot exceed the average income from the last three years, adjusted for population and inflation. 3. Congress can approve specific spending beyond this limit with a two-thirds vote in both the House and Senate. 4. New taxes or tax increases must also be approved by a two-thirds vote in both chambers of Congress. 5. The amendment would take effect five years after being ratified by three-fourths of the states.