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119-hr-37119th CongressWALLET

Proposing a Federal debt limit amendment to the Constitution of the United States.

Sponsored By: Representative Yakym, Rudy [R-IN-2]

Introduced

Summary

This proposed constitutional amendment would cap total federal debt as a share of the economy, tying the national debt ceiling to GDP and phasing the cap down from 130% to 120%. It sets rules for when Congress can exceed that cap and for how budgets must be presented to show compliance.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 0 costs, 2 mixed.

Debt cap tied to GDP

If enacted, the Constitution would set a hard limit on total federal debt, including public and intragovernmental debt. In the first year it applies, the cap would be 130% of GDP. It would drop by 1 percentage point each year until it reaches 120% of GDP, then stay there. GDP would be measured by the Bureau of Economic Analysis. This would start in the third fiscal year after ratification. If debt nears the cap, Congress could face choices like spending cuts or tax changes.

Supermajority and war waivers to exceed cap

If enacted, federal debt could not exceed the cap unless three-fifths of each House votes by roll call to allow a specific excess for that fiscal year. Congress could waive the cap for defense in a declared war. It could also grant a limited waiver during a direct military conflict that poses an imminent and serious threat, by joint resolution. The President would have to send a budget each year, covering that year and the next five years, that stays within the cap. Congress would have to pass laws to enforce these rules, using estimates as needed. These requirements would start in the third fiscal year after ratification.

Sponsors & CoSponsors

Sponsor

Yakym, Rudy [R-IN-2]

IN • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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