Steps Congress can take to balance the federal budget
While American families must balance their budgets, Congress does not.
That’s why the United States government is over $36 trillion in debt — and growing.
The cost to taxpayers?
Approximately $107,000 per person.
So, how can we get out of this economic mess?
By fixing Congress’ budget practices, including through a Balanced Budget Amendment (BBA) to the U.S. Constitution.
Americans for Prosperity’s senior fellow for fiscal policy Kurt Couchman testified before the House Budget Committee. He discussed how a well-written Balanced Budget Amendment would support economic stability for our nation and help restore Americans’ faith in the federal government.
That’s Kurt below delivering his opening statement to committee members and answering questions from key lawmakers.
The idea of a balanced budget amendment is popular, but most proposals have serious design problems.
The right kind of balanced budget amendment could drive more accountable government, advance solutions to head off a debt crisis, and promote a more bottom-up, deliberative Congress.
Despite other political divides, Americans overwhelmingly agree that the government shouldn’t run up the debt.
A 2023 poll revealed that 4 in 5 Americans support a constitutional amendment requiring the federal government to balance its budget within 10 years.
So why hasn’t it happened yet?
One major reason is that most proposals call for an annual balanced budget requirement, which would create policy instability because federal revenue jumps up and down.
Instead, a medium-term approach — such as balancing over the course of a business cycle — would ensure fiscal responsibility without harming the American economy while supporting stable and predictable policymaking.
An under-the-dome grassroots blitz can bring a Balanced Budget Amendment to life.
While most Americans support the concept, crafting and passing a Balanced Budget Amendment is challenging, politically tricky, and time-consuming.
That’s why the grassroots charge you support is key to driving education efforts (like Kurt’s testimony) with key lawmakers to help them write better legislation.
Kurt’s key aspects of a Balanced Budget Amendment:
- Ensuring Congress can respond to crises: Any amendment must include provisions for emergencies, such as recessions, wars, or pandemics. Emergency spending thresholds, like the two-thirds vote requirement in some proposals, can ensure flexibility while maintaining fiscal discipline.
- Having a realistic timeline: Achieving the savings needed to reach a balanced budget will take time to phase in. A 10-year path to balance after ratification is most realistic.
- A principled vision: The language of an amendment should rely on broad constitutional principles, ensuring the details can adapt to a changing society over time.
What could a balanced budget look like?
- House Budget Committee Chairman Jodey Arrington’s Business Cycle Balanced Budget Amendment: This proposal aims to stabilize policy by linking federal spending to the average annual revenue collected over the previous three years, adjusted for population growth and inflation.
- Rep. Nathaniel Moran and Sen. Mike Braun’s Principles-Based Balanced Budget Amendment: This amendment sets out the principle of balance, which can be over more than one year, which gives Congress the flexibility to design and improve the mechanics.
Looking toward the future with a broader vision for fiscal reform
A balanced budget amendment is just the beginning of fixing federal budgeting. It would push Congress to fix longstanding problems with federal budgeting, such as the lack of a comprehensive budget that includes all spending and revenue.
Congress could focus on responsibly tackling our national debt — lowering costs for American families and cutting unnecessary spending that becomes the taxpayers’ burden.
But it’ll take grassroots pressure from all of us to let lawmakers know Americans demand fiscal accountability.
There is no reason Washington can’t fix its broken budget process, prevent a debt crisis, and serve the American people faithfully.
You can learn more and sign AFP’s Spending Reform Pledge here.
