Budget & Taxes (State Budget)

S 538, the ELECT Act of 2025, ends taxpayer funding for presidential election campaigns after 2024. It terminates the existing system where income tax payments financed campaigns by amending the tax code to stop this practice starting in 2025. Any remaining funds in the Presidential election campaign fund will be transferred to the general Treasury to reduce the federal deficit. This bill directly affects future presidential campaigns and the federal budget by removing taxpayer subsidies for campaign expenses.

S 181 requires most federal agencies to submit zero-based budgets every six years, analyzing current operations, exploring alternatives, and ranking programs by importance. These budgets must cover the next fiscal year and the following four years, submitted to the Office of Management and Budget and congressional budget committees. Agencies (excluding Defense and the National Nuclear Security Administration) must also recommend specific program cuts totaling at least a 2% reduction in non-defense discretionary spending from the prior year. The bill directly affects how federal agencies plan and justify their funding, aiming to improve budget efficiency through systematic review.

This joint resolution proposes a constitutional amendment that requires federal expenditures and receipts to be balanced, which may occur over more than one year. Under the amendment, expenditures include all federal expenditures except those for payment of debt. Receipts do not include receipts derived from borrowing. The amendment requires Congress to achieve balance within 10 years of the ratification of the amendment. In an emergency situation, two-thirds of the House of Representatives and the Senate may authorize additional expenditures that are not otherwise permitted by the amendment. The additional expenditures must be for a limited time, and debts incurred from the expenditures must be paid as soon as practicable.

HJRES 112 proposes a constitutional amendment requiring the U.S. government to balance its budget in most circumstances, directly affecting Congress, the President, and state legislatures. It would set a debt limit at 105% of current debt, require state legislatures to approve any debt increase above that limit, and mandate the President to withhold funds if debt exceeds 98% of the limit. The amendment also requires a two-thirds vote in both House and Senate for new or increased income tax bills (excluding certain sales tax replacements). This is a procedural proposal, not an enacted law, and would only take effect if ratified by 38 states within seven years.

This bill proposes a constitutional amendment requiring the federal government to balance its annual budget, meaning spending cannot exceed revenue unless overridden by a two-thirds vote in both House and Senate. It also caps annual spending at 18% of GDP unless a similar two-thirds vote approves an exception. The amendment mandates the President submit a balanced budget proposal each year and requires a two-thirds vote to pass new taxes or increase tax revenue. These rules would directly affect all federal spending decisions, including defense, social programs, and debt management, with limited exceptions for declared wars or national security threats.