I had the privilege of testifying on balanced budget amendments and related topics at a hearing of the House Judiciary Subcommittee on the Constitution and Limited Government with Rep. Chip Roy presiding. Check out my written testimony and my opening statement:
Bad budgeting causes higher inflation and interest rates, lower worker pay, worse partisanship, and greater risks of debt crisis and default.
Most countries and nearly all U.S. states have adopted balanced budget rules, often to help recover from debt crisis.
The federal government needs a BBA, but most versions have fatal flaws: annual balance, ill-considered emergency thresholds, partisan provisions, and more.
The Principles-based BBA from Senator Jon Husted and Representative Nathaniel Moran, or something similar, might attract the most consensus. It would allow balance over the medium term, emergency spending with 2/3s in both houses, and 10 years to reach balance, as Representative Mark Harris and I discussed.
Implementing legislation matters. A BBA alone is not enough. Rep. Tom Emmer and then-Sen. Mike Braun’s Responsible Budget Targets Act is a key part of Congress’ checks and balances, as Rep. Harriet Hageman and I discussed.
.@RepHageman raised a key question: how do you stop emergency exceptions from becoming loopholes?@KurtCouchman explained that strong BBAs need clear guardrails and smart statutes. And Congress already has a bill that does it: @GOPMajorityWhip‘s Responsible Budget Targets Act. pic.twitter.com/YTkdBW0bn8
— Americans for Prosperity (@AFPhq) December 3, 2025
Congress must also budget and authorize effectively:
- A complete budget that involves all members through their committees and on the floor managing all spending and revenue.
- Preventing government shutdowns and keeping Congress in DC until budget legislation gets done.
- And more.
A BBA would push Congress to restore sound budgeting, both by adjusting programs and by improving institutions.
Yet Congress has not seriously considered BBAs since 2011 or perhaps even 1995, when bipartisan support was strongest and Congress nearly approved one. The best way to rediscover which versions have the broadest appeal is for BBA substitute amendments to compete on the floor like the House did in 1995.
Controlling the debt by empowering Congress to manage everything within reasonable guardrails is the way forward. It’s the path to lower inflation and interest rates, faster earnings growth, and better politics. Better budgeting can bring more social peace, far greater prosperity, and unleash American potential.
Further reading
- “Well-Crafted Balanced Budget Rules Support Sound Governance,” testimony, House Judiciary Subcommittee on the Constitution and Limited Government, December 3, 2025.
- “Well-Designed Balanced Budget Rules Support Sound Governance,” visual essay, Americans for Prosperity, September 15, 2025.
- “BBA competition in the House can rebuild broad support,” Americans for Prosperity, August 20, 2025.
- Fiscal Democracy in America: How a Balanced Budget Amendment Can Restore Sound Governance, Palgrave Macmillan, July 2025.
