Federal Legislation
Congress Proposes Balanced Budget Amendment
February 25, 2026
Congress has introduced H.J. Res. 139, a constitutional amendment proposal that would require the federal government to maintain a balanced budget by limiting annual expenditures to the average of the previous three years' receipts, adjusted for inflation and population. The amendment includes exceptions for war and emergencies and mandates a two-thirds supermajority vote in Congress to raise taxes or authorize spending beyond the cap. It is designed to take effect five years after ratification, aiming to enforce fiscal discipline and reduce the national debt.
- Procurement professionals should anticipate potential impacts on federal budget allocations and spending flexibility starting five years post-ratification, which could affect contract funding and program continuity.
- Agencies and contractors may need to prepare for stricter congressional oversight and approval processes for budget increases or emergency spending related to procurement activities.
- This amendment could influence long-term federal procurement planning, emphasizing cost control and prioritization of essential contracts.
- Businesses engaged with federal contracts should evaluate how potential budget constraints might affect contract awards, renewals, and funding levels in the coming years.
I will only support a constitutional amendment compelling Republicans to finally balance a budget if it also compels them to stop throwing money at billionaires, to crack down on record corruption and profit-taking by their incorrigible President and to get their private army in U.S. Immigration and Customs Enforcement to start complying with the Constitution.
— Jamie Raskin
If we're going to do the tax policy, at least do the spending policy. Have the courage and the fortitude to do what you campaign on when you're talking about balancing the dang budget.
— Chip Roy
Agencies
United States Congress, House Committee on the Judiciary, Subcommittee on the Constitution and Limited Government, Congressional Budget Office, House Judiciary Committee
Locations
Sources
- H. Rept. 119-520 - PROPOSING AN AMENDMENT TO THE CONSTITUTION OF THE UNITED STATES REQUIRING A BALANCED BUDGET FOR THE FEDERAL GOVERN- MENT · congress · Feb 25
- H. Rept. 119-520 - PROPOSING AN AMENDMENT TO THE CONSTITUTION OF THE UNITED STATES REQUIRING A BALANCED BUDGET FOR THE FEDERAL GOVERN- MENT · congress · Feb 25
- H. Rept. 119-520 - PROPOSING AN AMENDMENT TO THE CONSTITUTION OF THE UNITED STATES REQUIRING A BALANCED BUDGET FOR THE FEDERAL GOVERN- MENT · congress · Feb 25
- H. Rept. 119-520 - PROPOSING AN AMENDMENT TO THE CONSTITUTION OF THE UNITED STATES REQUIRING A BALANCED BUDGET FOR THE FEDERAL GOVERN- MENT · congress · Feb 25