This joint resolution proposes a constitutional amendment prohibiting total outlays for a fiscal year from exceeding total receipts for that fiscal year unless Congress authorizes the excess by a two-thirds roll call vote of each chamber. The prohibition excludes outlays for repayment of debt principal and receipts derived from borrowing. The amendment also requires the President to submit an annual budget in which total outlays do not exceed total receipts.
Impact
The potential impact of HJR17 on state laws is significant as it could set a precedent for stricter budgeting practices within states that may seek to mirror federal requirements. A balanced budget amendment at the federal level could drive states towards adopting similar fiscal policies, aiming to avoid deficits and manage public finances more conservatively. This could lead to changes in state tax collection, spending on public services, and overall financial management, compelling states to operate in a financially sustainable manner.
Summary
HJR17 proposes an amendment to the Constitution of the United States that mandates a balanced federal budget. This amendment stipulates that total outlays for any fiscal year cannot exceed total receipts unless a two-thirds vote in both the House of Representatives and the Senate allows for a specific excess. The aim of this amendment is to enforce fiscal responsibility at the federal level by preventing the government from running a deficit. It necessitates that the President present a budget that adheres to this limitation prior to each fiscal year.
Contention
Notable contention surrounding HJR17 focuses on the implications it would have for government services and the economy. Critics argue that rigidly enforcing a balanced federal budget could stifle necessary government expenditures, particularly in economic downturns when increased spending might be needed to stimulate growth. Proponents, however, assert that such an amendment is crucial for preventing unsustainable debt levels and promoting responsible fiscal governance. This debate touches on broader discussions regarding the role of government in economic management and the balance between fiscal responsibility and necessary government intervention.
Related bill
This joint resolution proposes a constitutional amendment prohibiting total outlays for a fiscal year from exceeding total receipts for that fiscal year unless (1) Congress authorizes the excess by a three-fifths vote of each chamber, and (2) total outlays do not exceed a specified percentage of the estimated gross domestic product of the United States. The prohibition excludes outlays for repayment of debt principal and receipts derived from borrowing. The amendment requires a three-fifths vote of each chamber of Congress to increase revenue or increase the limit on the debt of the United States. The amendment also requires the President to submit an annual budget in which total outlays do not exceed total receipts. The President's budget must also include justifications and specified details regarding funding proposed for departments and agencies. Congress may waive the requirements due to a declaration of war, a military conflict, an event that causes an imminent and serious military threat to national security, or a natural disaster.
Related bill
This joint resolution proposes a constitutional amendment prohibiting total outlays for a fiscal year from exceeding total receipts for that fiscal year unless Congress authorizes the excess by a three-fifths roll call vote of each chamber. The prohibition excludes outlays for repayment of debt principal and receipts derived from borrowing. The amendment requires a three-fifths roll call vote of each chamber to increase the public debt limit. It prohibits a bill to increase revenue from becoming law unless it has been approved by a majority roll call vote of each chamber. The amendment also requires the President to submit an annual budget in which total outlays do not exceed total receipts. Congress may waive these requirements due to a declaration of war or a military conflict that causes an imminent and serious military threat to national security.
Nickel Plan Act This bill modifies the federal budget process to establish and enforce new spending caps. The bill establishes an outlay cap (less net interest payments) for FY2024 of $5.953 trillion, less 5%. For each year from FY2025-FY2027, the outlay cap is 5% less than the previous year's outlay cap. For FY2028 and subsequent years, total outlays (including net interest payments) may not exceed 17.5% of the gross domestic product (GDP) for that year as estimated by the Office of Management and Budget (OMB). Beginning in FY2029, total projected outlays for any year may not be less than the total projected outlays for the preceding year. The OMB must enforce the spending caps using a sequester to eliminate any excess spending through automatic cuts. The bill eliminates the existing exemptions from sequestration. If the OMB projects a sequester, the congressional budget committees may report a resolution directing congressional committees to change existing law to achieve the spending reductions necessary to meet the outlay limits. The bill also establishes procedures for Congress to enforce the outlay caps established by this bill.
Balanced Budget Accountability Act This bill requires the Office of Management and Budget (OMB), upon adoption by a chamber of Congress of a concurrent budget resolution for a fiscal year, to certify to the Speaker of the House of Representatives or the President pro tempore of the Senate whether that chamber has adopted a balanced budget. Balanced budget means a concurrent budget resolution providing that for FY2033 and each succeeding fiscal year to which the resolution applies total outlays do not exceed total receipts and are not more than 18% of the projected domestic product for such fiscal year. The bill requires the salary of Members of Congress to be held in escrow if OMB determines a chamber has not adopted a balanced budget for FY2024 before April 16, 2023, and for FY2025 before April 16, 2024. The bill also provides for the release of these funds to the Members. Beginning in FY2026, if OMB does not certify that a chamber has adopted a balanced budget before April 16 of the prior fiscal year, each Member of that chamber shall be paid at the rate of $1 annually for pay periods after that date in the same calendar year. The bill also requires that legislation in either chamber to increase revenue be agreed upon by an affirmative vote of three-fifths of the Members of that chamber.
Proposing an amendment to the Constitution of the United States to prohibit Members of Congress from receiving compensation during a fiscal year unless both Houses of Congress have agreed to a concurrent resolution on the budget for that fiscal year prior to the beginning of that fiscal year.
Proposing an amendment to the Constitution of the United States prohibiting the United States Government from increasing its debt except for a specific purpose by law adopted by three-fourths of the membership of each House of Congress.
A concurrent resolution setting forth the congressional budget for the United States Government for fiscal year 2025 and setting forth the appropriate budgetary levels for fiscal years 2026 through 2034.
Establishing the congressional budget for the United States Government for fiscal year 2025 and setting forth the appropriate budgetary levels for fiscal years 2026 through 2034.