S.45 - Balanced Budget Accountability Act (119th Congress)
Summary
S.45, the Balanced Budget Accountability Act, aims to reduce the annual pay of Members of Congress if they fail to adopt a concurrent resolution on the budget that provides for a balanced budget. The bill defines a balanced budget as one where total outlays do not exceed total receipts and are not more than 18% of the projected GDP by fiscal year 2035. It introduces mechanisms such as holding salaries in escrow and reducing pay to $1 per year if a balanced budget is not adopted.
Expected Effects
The bill could incentivize Congress to prioritize balancing the budget. This could lead to significant changes in federal spending and revenue policies. However, it may also lead to political gridlock or the adoption of budgets that meet the technical definition of 'balanced' without addressing underlying economic issues.
Potential Benefits
- Could lead to reduced federal debt and deficits.
- May foster greater fiscal discipline in Congress.
- Could improve long-term economic stability.
- Might increase public trust in government.
- Could lead to more efficient allocation of resources.
Most Benefited Areas:
Potential Disadvantages
- Could incentivize Congress to make drastic cuts to essential programs.
- May lead to political gridlock and government shutdowns.
- Could disproportionately affect lower-income individuals and vulnerable populations.
- Might create unintended consequences due to rigid budget constraints.
- Could be seen as a symbolic gesture without addressing the root causes of fiscal imbalances.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's constitutionality is potentially questionable, particularly concerning the 27th Amendment, which prohibits varying the compensation of Senators and Representatives until after an election has intervened. The bill attempts to circumvent this by releasing escrowed funds at the end of the Congress, but the temporary withholding could still be challenged. Article I, Section 6, Clause 1 states that Senators and Representatives shall receive a Compensation for their Services, to be ascertained by Law, and paid out of the Treasury of the United States.
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).