With state approval, Congress would have to balance federal budgets

Congress would limit federal spending to average revenue from the prior three years. The president would oversee federal planning and budgeting and submit a balanced two-year budget. The president’s budget must recommend ways to raise revenue or cut spending to keep it balanced. Three-fourths of state legislatures must approve the amendment. These requirements would take effect two years after the required state approval.

The president could veto, or reject, individual parts of spending bills passed by Congress. This power would apply only when projected federal spending exceeds projected revenue. An override would need votes from at least three-fourths of the members of each chamber of Congress. The veto and override rules would take effect two years after approval by three-fourths of state legislatures.

Congress would establish a federal reserve fund with required yearly deposits. Yearly deposits would equal at least 1% of the prior year’s net federal revenue. Congress would set withdrawal rules in a separate law limited to covering revenue shortfalls or emergencies defined by Congress. Withdrawn money must be replaced within five years. The amendment would take effect two years after approval by three-fourths of state legislatures. The fund must start by the first budget year beginning afterward. Its balance must reach at least 5% of the prior year’s net revenue by the fifth such year’s start and 10% by the tenth.

Each chamber would give its members and the public the full text of a spending bill at least 72 hours before considering it. Bills would list specific funding amounts that exceeded $100 million for fiscal year 2027. Three-fourths of state legislatures must approve the amendment. The $100 million threshold would be adjusted for inflation in fiscal year 2031 and every fourth fiscal year afterward. The amendment would take effect two years after the required state approval. The listing rule would start with the first budget year beginning afterward.

Congress would establish a commission to recommend changes to taxes, spending, and budget rules. The commission would meet every 10 years until federal debt is no more than 60% of the U.S. economy’s yearly output. If debt exceeds the 60% level at a meeting, the commission must issue recommendations within one year. The full House and Senate would each have to consider those recommendations. The commission requirement would take effect two years after approval by three-fourths of state legislatures.