H.R.37 - Proposing a Federal debt limit amendment to the Constitution of the United States. (119th Congress)
Summary
H.R.37 proposes a constitutional amendment to limit the federal debt. The amendment sets an initial debt limit of 130% of the Gross Domestic Product (GDP), reducing it by 1% each year until it reaches 120% of GDP. It requires the President to submit a budget that adheres to this limit and allows Congress to waive the limit for defense spending during war or military conflict with specific justification.
Expected Effects
If ratified, this amendment would constitutionally bind the federal government to specific debt limits tied to GDP. This could lead to significant changes in fiscal policy, potentially requiring cuts in spending or increases in revenue to stay within the mandated limits. Waivers are included for defense spending during war and military conflict.
Potential Benefits
- Increased Fiscal Discipline: Could force the government to be more responsible with spending and debt accumulation.
- Economic Stability: May lead to greater economic stability by preventing excessive debt.
- Reduced Interest Payments: Lower debt could result in reduced interest payments, freeing up funds for other priorities.
- Long-Term Planning: The requirement for a 5-year budget projection could encourage more long-term fiscal planning.
- Transparency: The rollcall vote requirement for exceeding the debt limit could increase transparency and accountability.
Most Benefited Areas:
Potential Disadvantages
- Reduced Flexibility: Limits the government's ability to respond to economic crises or unforeseen events.
- Potential for Austerity: Could lead to drastic cuts in essential programs and services.
- Economic Contraction: Restricting debt during a recession could worsen the economic downturn.
- Political Gridlock: The need for a three-fifths majority to exceed the debt limit could lead to political gridlock.
- Implementation Challenges: Implementing and enforcing the amendment could be complex and require difficult decisions.
Constitutional Alignment
This proposed amendment aligns with the principle of limited government, but it also introduces a specific fiscal constraint into the Constitution. Article V of the Constitution outlines the amendment process, which this bill follows by proposing an amendment for ratification by the states. The amendment does not directly conflict with any specific provision of the existing Constitution, but it would significantly alter the balance of power between the executive and legislative branches regarding fiscal policy.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).