Congress proposes constitutional straitjacket on federal spending
H.J.Res. 17 — Proposing a balanced budget amendment to the Constitution of the United States. · Filed by Jay Obernolte (R-CA) · 2 cosponsors · Introduced Jan 13, 2025 · Referred to committee
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What it does
This joint resolution proposes a constitutional amendment requiring the federal government to balance its budget each year—total spending cannot exceed total revenue—unless Congress votes by a two-thirds supermajority to approve a deficit. The amendment would take effect five years after ratification and would apply to all federal spending except debt repayment.
Why we flagged it
This is a constitutional amendment proposal that would enshrine a balanced budget requirement into the nation's founding document. It is not a routine appropriations or tax bill, but rather a structural change to federal fiscal authority with profound implications for economic policy and emergency response.
What the text implies
- During a severe recession, automatic spending cuts or tax increases would be triggered unless Congress can muster a two-thirds supermajority—a threshold rarely achieved, potentially deepening economic downturns and unemployment.
- Social Security and Medicare, which are mandatory spending, would face pressure to be cut or restructured to meet the balanced budget requirement, as discretionary spending alone cannot close large deficits.
The full analysis lists 5 implications of this text.
Who stands to gain
bond markets and creditors (lower long-term interest rates from perceived fiscal discipline); wealthy individuals and corporations (pressure to cut social spending rather than raise taxes on hig