Proposed Constitutional Amendment Mandates Balanced Federal Budget Within 10 Years, Excludes Debt Payments

This joint resolution proposes a major change to the U.S. financial system: a constitutional amendment requiring the federal government to balance its budget. Essentially, the government’s expenditures must equal its receipts. If ratified by three-fourths of the states, Congress would have ten years to make this happen. The core idea is fiscal discipline—forcing the government to live within its means, much like a household or a business.

The Fine Print Loophole: What Counts as 'Balanced'

Here’s where the policy gets tricky, and where you need to pay attention. For the purpose of this balance requirement, the bill specifically excludes two things. First, payments on the national debt don't count as “expenditures.” Second, any money the government raises through borrowing doesn't count as “receipts.” Think of it this way: if you had a credit card bill, this rule means you don't have to count the minimum payment you make on the card as part of your monthly expenses, nor do you have to count the new debt you take on as income. While the bill aims for balance, these exclusions create an accounting loophole that allows the underlying, massive national debt to continue growing without disrupting the “balanced” budget on paper. This means Congress could technically meet the requirement while the total debt burden still climbs, just maybe not as fast.

The Emergency Brake: Supermajority Spending

The resolution does recognize that life happens and emergencies arise. Congress can authorize spending that exceeds the balance limit, but only for “emergency situations” and only for “limited times.” To do this, they’d need a two-thirds majority vote in both the House and the Senate. That’s a high bar, which is good for preventing frivolous spending. However, the bill is vague on what counts as an “emergency.” Is it a war? A pandemic? A major recession? If the definition is too loose, Congress could use this exception frequently. Furthermore, any debt incurred during these emergencies must be paid back “as soon as it is practical to do so.” That phrase—“as soon as it is practical”—is wide open to interpretation and could lead to delayed repayment indefinitely, kicking the can down the road.

The Real-World Pinch: Who Feels the Cuts?

If this amendment is ratified, the 10-year countdown would force Congress to make some serious, structural changes. For everyday people, this likely means substantial cuts to government programs. If you rely on federal funding for infrastructure projects in your town, or if you benefit from social programs—like certain healthcare subsidies or educational grants—those programs could be on the chopping block to hit the mandated balance. The government can’t suddenly find trillions of dollars in new revenue, so the cuts would have to be deep and potentially disruptive. While the goal is long-term fiscal health, the short-term reality could be a decade of austerity, hitting those who rely most on federal services the hardest.