Congress Must Pass Balanced Budget or Face $1 Salary, Starting 2028

The Balanced Budget Accountability Act is straightforward: it aims to force Congress to balance the federal budget, or else members of Congress will face severe pay cuts. Here’s how it works, and what it might mean for you.

No More Blank Checks?

This bill, introduced to tackle the massive and growing national debt (over $36 trillion!), sets some pretty strict rules. It defines a "balanced budget" as one where total spending doesn't exceed total revenue, and – by 2035 – total spending must also be no more than 18% of the projected Gross Domestic Product (GDP). Think of GDP as the total value of everything the country produces in a year. The Office of Management and Budget (OMB) gets the final say on whether a budget meets these requirements (SEC. 2).

Paychecks on the Line

The bill uses lawmakers' salaries to get them to comply. For fiscal years 2026 and 2027, if Congress doesn't pass a balanced budget by April 16th of the preceding year, members' salaries get held in escrow. That means no paychecks until they pass a balanced budget, or until that session of Congress ends (SEC. 2). Starting in fiscal year 2028, the penalty gets even tougher: if they miss the deadline, their annual salary drops to just $1 (SEC. 2). Imagine your boss telling you that your pay depends on hitting a really tough target, and if you miss, you only get a buck for the whole year. That's the pressure this bill puts on Congress.

Raising Revenue? Supermajority Needed

It also makes it harder to raise taxes. Any bill that increases revenue – basically, any new money coming into the government – needs a three-fifths "supermajority" vote in both the House and Senate to pass (SEC. 3). This means getting agreement from way more than just half of the members. This rule is built into the procedures of both houses of Congress, but it's important to note that either house could change this rule at any time (SEC. 3).

Real-World Ripple Effects

While the goal is to get the national debt under control, this bill could have some serious, everyday impacts. For example, if government spending is capped at 18% of GDP, that could mean cuts to programs many people rely on, from infrastructure projects that employ construction workers to educational grants that help students afford college. It could also limit the government's ability to respond to unexpected crises, like a natural disaster or an economic downturn, where quick spending is often needed. The supermajority rule for raising revenue might make it even harder to fund essential services or invest in new initiatives, like renewable energy projects or healthcare improvements. Essentially, while aiming for a balanced budget sounds good, the strict rules in this bill could make it tough for the government to adapt and meet the needs of everyday Americans.

One challenge is that the OMB, which is part of the executive branch, determines whether the budget is balanced. This gives the President's office significant influence over Congress's ability to get paid. Another is that limiting spending to 18% of GDP by 2035 is a pretty arbitrary target and could lead to some creative accounting to make the numbers work. It's worth keeping a close eye on how this could play out in practice.