A balanced budget is possible

Aug 27, 2025 by AFP

Now that the One Big Beautiful Bill is the law of the land, stopping a looming tax hike and encouraging economic growth, Congress can turn its attention to our colossal national debt.

The good news is that the OBBB and the rescissions package signed by President Trump are steps in the right direction, as they reduce government spending.

But our national debt crisis wasn’t built in a year. It was built on decades of bad decisions, and it will take more than two bills to fix it.

Fortunately, there is a pragmatic, commonsense policy that can help put our country back on track: A balanced budget amendment.

As Kurt Couchman, senior fellow in fiscal policy at Americans for Prosperity, explained it best in his congressional testimony:

“A proposed or ratified balanced budget amendment would focus Congress on overhauling a system that is failing to serve our country well.”

But first, if we want to get out of this massive fiscal hole, we should know how Congress got us here in the first place.

How did we get here?

For 24 straight years, Congress has spent way more than the government collects in taxes.

Just last year, Washington spent $6.75 trillion but only received $4.6 trillion in taxes, adding over $1.8 trillion in debt.

Since 2001, Washington has steadily increased our national debt by living beyond its means. Every year, it abandons its duties and refuses to prioritize spending, leaving us with a massive national debt.

Now, we’re paying the consequences of decades of poor fiscal decisions. In 2024, the federal government spent 13% of the budget (around $881 billion) just to pay interest on the debt, and that number is forecast to grow in the decades to come.

That means your kids and grandkids will pay for Washington’s recklessness if we do nothing.

A balanced budget amendment

It’s time for Congress to live within its means. A constitutional amendment requiring Congress to balance its budgets would force it to.

Here’s why this would work:

  • It would restore normalcy in our budgetary process by requiring Congress to balance the books before submitting a budget.
  • It ensures the process toward fiscal solvency is steady and predictable.
  • It still allows for Congress to spend more, but only in cases of emergencies.

To be clear: A balanced budget amendment won’t solve our national debt by itself, but it would do much to get us there.

This idea is both popular and has a proven track record.

  • A whopping 80% of Americans support it
  • Most developed countries have a form of balanced budget amendment
  • Almost all state governments in America have one

Why past amendments failed

Over the years, Congress has floated countless balanced budget amendments, but none have stuck because they were built on shaky foundations.

Most past proposals required Congress to balance the budget every single year based on estimated tax revenue. Sounds reasonable, right?

The problem is that America’s economy is too vibrant and has too many moving parts to accurately predict yearly tax revenue. Forecasts are rarely spot-on, and the numbers vary, bringing too much instability to the process.

We need a more sustainable, workable framework.

There are two balanced budget amendments that could provide just that:

  • The Business Cycle Balanced Budget Amendment: This amendment would tie the budget to the average revenue (controlled by inflation and population) of the last three years, a much more stable and predictable framework than the annual balance.
  • The Principles-Based Balanced Budget Amendment: A more flexible approach, it enshrines general principles into law and relies on legislation for the details.

Right now, there is momentum to finally update our disastrous fiscal process. We can’t let this moment go to waste.

We can win this fight, but we need you.

Sign this pledge and join the movement fighting to get America back to fiscal responsibility.

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