Federal
Proposed Constitutional Amendment to Set a Federal Debt Limit
HR 37 proposes an amendment to the U.S. Constitution that would establish a federal debt limit. Because it is a constitutional amendment, it would require approval by two-thirds of both chambers of Congress and ratification by three-fourths of U.S. states to take effect. The bill has been referred to the House Committee on the Judiciary. No further legislative action has been reported.
✓ REASONS TO SUPPORT
- A constitutional debt limit could force the government to spend only what it takes in, potentially slowing the growth of national debt over time
- Making the debt limit part of the Constitution would make it harder for future Congresses to raise borrowing without broad agreement across states and lawmakers
- Supporters argue long-term fiscal discipline could protect future generations from inheriting unsustainable levels of government debt
- A permanent constitutional cap could create more predictable and stable long-term federal budgeting
✕ REASONS TO OPPOSE
- A rigid constitutional debt limit could prevent the government from borrowing quickly in emergencies such as economic recessions or national disasters
- Amending the Constitution is extremely difficult to reverse, meaning a debt ceiling that proves unworkable would be hard to change even if circumstances demand it
- Critics argue that capping debt without addressing spending or revenue separately could force abrupt cuts to programs like Social Security, Medicare, or defense
- Some economists warn that a hard constitutional borrowing cap could damage the government's credit standing and increase the cost of existing debt
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