South Carolina Senate Bill S0245

South Carolina 2025-2026 Regular Session

• Introduced: 1/16/25
• Refer: 1/16/25

Caption

Federal Balanced Budget Amendment

Impact

If enacted, this bill would initiate a significant constitutional process that could alter the fiscal management methods of the federal government. The proposed amendment would effectively enforce a balanced budget requirement, compelling the federal government to align its spending to its income. Proponents argue that this aligns federal fiscal policy more closely with that of states and helps secure economic opportunities for future generations by curbing deficit spending, which they assert leads to a decline in living standards and job losses.

Summary

Bill S0245, titled as the Federal Balanced Budget Amendment, seeks to propose an amendment to the U.S. Constitution aimed at imposing fiscal restraints on the federal government. The bill is a response to concerns over the increasing federal public debt, which has surpassed thirty-one trillion dollars, and aims to address what its supporters describe as fiscal irresponsibility at the federal level. This concurrent resolution calls for a convention of states under Article V of the U.S. Constitution to ensure that, in the absence of a national emergency, federal appropriations cannot exceed the total estimated federal revenues in any given fiscal year.

Contention

Despite its fiscal intent, the bill raises notable concerns among opponents who fear that a balanced budget amendment might limit the federal government's ability to respond effectively during economic crises, such as recessions or natural disasters. Critics argue that the rigidity of a balanced budget could hinder economic recovery efforts and reduce the government's capacity to invest strategically in the public good. There is also apprehension about how such an amendment would impact social programs and essential services heavily reliant on government funding, particularly in times of economic strain.