America’s fiscal outlook has reached a point that demands serious and structural solutions. Our fiscal imbalance is not just a collection of troubling numbers—it is a symptom of a government operating outside the limits envisioned by the Constitution.
To address this, Congress should work toward a balanced budget designed for the sake of the American people, and not simply as an accounting mechanism.
The Current Situation
America is $38.4 trillion in debt. This translates to approximately $288,000 per household. In fiscal year (FY) 2025, the Congressional Budget Office projects we will bring in approximately $5.2 trillion in revenues, but outlay about $7.0 trillion. That leaves us with a deficit of around $1.9 trillion in only one fiscal year.
The main driver of this debt is the mandatory (or, “autopilot”) spending that has grown from 33 percent of outlays in fiscal year 1964 to 73 percent in fiscal year 2024. That means, including net interest payments, Congress does not actually review 73 percent of the programs it spends taxpayer money on each year.
This problem is compounded by rising interest payments to service our national debt. The U.S. Department of the Treasury pegs FY 2025 interest payments at $1.22 trillion. There are only 16 countries in the world – other than the United States itself – with GDPs greater than our interest payments.
With limited congressional oversight of the scope and scale of government and its spending, Congress should look for ways to address out of control spending.
A Balanced Budget Amendment
A Balanced Budget Amendment could be just one of those tools for fiscal restraint. Unfortunately, we have come to a point where we cannot trust that Congress or a future president will have the political fortitude to make difficult decisions and reduce spending.
Congress should consider three major pitfalls to avoid when drafting a Balanced Budget Amendment:
- Abdicating Article I powers.
- Failing to remember that we have a spending problem, not a revenues problem.
- Lacking any real enforcement mechanism.
Protecting Article I: There have been several iterations of Balanced Budget Amendments proposed in recent years. Some of those require a presidential signature on the annual Congressional budget, converting the budget resolution into a budget act. This would reduce the Congressional prerogative of the power of the purse significantly, abdicating spending and revenue authority to the Executive. The more this occurs, the less the people are in control through their elected Representatives. It also encourages even more massive swings in spending at the whims of future presidential administrations.
A Spending Problem, Not a Revenues Problem: Some will argue that a Balanced Budget Amendment can be achieved not only by limiting spending, but by raising revenues. Let me be clear: we have a spending problem, not a revenues problem.
The federal government is overextended and raising revenues ostensibly to “balance” is not balancing the budget with the intention of the people in mind whatsoever. It is, instead, an excuse to tax more and grow government more. Taxes for this purpose are theft with the intent of causing further harm by using those same dollars to infringe upon personal liberty; they should be admonished as such. Every dollar in deficit spending is a future tax. This treatment of future generations is irresponsible and short-sighted.
Giving It Teeth: This is perhaps the greatest challenge in constructing a responsible Balanced Budget Amendment. Without an enforcement mechanism, what is to hold Congress to account? There must be an automatic response in place that limits – not just in theory, but in practice – spending. Theoretically, this could occur in implementing legislation alongside ratification. The challenge there, however, is if that statute is easily changeable and could be used to gut the amendment.
There are other considerations that must be settled, such as how quickly an amendment should take effect, whether balance should be annual or on another timeline, and whether we should consider the debt to GDP ratio rather than outlays to revenues. All of these are valid questions, but they must be addressed after the initial foundation is laid.
An Opportunity to Safeguard America’s Fiscal Future
We have grave challenges in front of us. But we also have an opportunity. Advancing a responsible Balanced Budget Amendment that emphasizes fiscal restraint, reasserts Article I, admonishes raising taxes as a cure-all, and holds the government accountable would have more impact now than ever.
It is time to consider ways to build that safeguard into the Constitution itself – or risk undermining the entire document.
