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

This proposal would change the Constitution to set a hard cap on the total federal debt compared to the size of the economy. At first, debt could not be more than 130% of the nation’s Gross Domestic Product (GDP). Each year, that cap would drop by 1% until it reaches 120%, where it would stay going forward. Going over the cap would require a three-fifths vote in both the House and Senate for a specific, limited reason, and the President would have to send Congress a yearly budget plan that keeps debt under the cap. There are exceptions for times of war or serious military conflict, but any waiver must be clearly tied to the costs of that conflict and be approved as described in the text. The amendment defines GDP using standard national accounts and would start in the third fiscal year after it is ratified by the states.

Key points

• Who is affected: The federal government, taxpayers, and people who rely on federal programs and services.
• What changes: A constitutional cap on total federal debt at 130% of GDP, stepping down 1% per year to 120%; stricter votes to exceed the cap; required budgets that stay under the limit; and narrow wartime/military exceptions.
• When: If ratified by the states, it would take effect starting in the third fiscal year after ratification; GDP is defined by the Bureau of Economic Analysis for these limits.