Balanced budget amendment facts for kids

A balanced budget amendment is like a special rule that some people want to add to the U.S. Constitution. This rule would make sure that the United States government spends only as much money as it collects each year. It means the government wouldn't be allowed to spend more than it earns, so it wouldn't have to borrow money to cover its costs.

Think of it like your family's budget: if your family earns $100, they can only spend $100. They can't spend $120 and then borrow $20 to make up the difference. A balanced budget amendment would make the government follow a similar rule.

What is a Government Budget?

A government budget is a plan that shows how much money the government expects to collect (mostly from taxes) and how it plans to spend that money over a year. It's like a financial roadmap for the country. The government uses money for many things, such as building roads, funding schools, supporting healthcare, and paying for national defense.

Why Governments Borrow Money

Sometimes, the government spends more money than it collects. This is called a budget deficit. When there's a deficit, the government has to borrow money to pay for everything it needs. It does this by selling special bonds, which are like IOUs, to people, banks, and other countries. Over time, these borrowed amounts add up to the national debt.

Why People Want a Balanced Budget Amendment

People who support a balanced budget amendment believe it would help the government be more responsible with money. They think it would:

• Reduce national debt: If the government can't spend more than it earns, it won't need to borrow as much, which could stop the national debt from growing.
• Encourage careful spending: Lawmakers might think more carefully about how they spend money if they know they can't just borrow more.
• Protect future generations: Some argue that borrowing too much now puts a burden on future generations, who will have to pay back the debt.

Challenges and Exceptions

While the idea of a balanced budget sounds good, it can be tricky for a whole country.

• Emergencies: What happens if there's a big emergency, like a major natural disaster or a war? In these situations, the government might need to spend a lot of money very quickly, more than it usually collects.
• Economic downturns: During tough economic times, people might pay less in taxes because they earn less. At the same time, more people might need government help, like unemployment benefits. This makes it hard to balance the budget.

Because of these challenges, most proposals for a balanced budget amendment include exceptions. For example, the government might be allowed to borrow money during a time of war or a national emergency. Sometimes, it might also be allowed to borrow if a large number of people in Congress (like a three-fifths or two-thirds majority) agree it's absolutely necessary.

How Amendments Are Added

Adding an amendment to the U.S. Constitution is a very difficult process. It requires a lot of agreement across the country.

• First, an amendment must be proposed. This can happen if two-thirds of both the House of Representatives and the Senate vote for it. Or, it can be proposed by a national convention called for by two-thirds of the states.
• Second, once proposed, the amendment must be ratified (approved) by three-fourths of the states. This means 38 out of the 50 states must agree to it.

Because it's so hard to change the Constitution, a balanced budget amendment has been proposed many times throughout history, but it has never been approved by enough states to become part of the Constitution.