Federal Balanced Budget Compliance Act
The Federal Balanced Budget Compliance Act requires the State to reject all federal funding until the federal government balances its budget, aligning with the Trump Administration’s “America First” fiscal policies. This legislation is designed to encourage federal fiscal responsibility while reducing dependency on federal assistance. The Act includes mechanisms for mitigating potential impacts on state programs and a sunset clause to ensure temporary enforcement.
Key Provisions
Prohibition on Federal Funding: The State is prohibited from applying for, accepting, or utilizing federal funds until the Comptroller General certifies a balanced federal budget.
Fiscal Impact Mitigation Plan: The Governor is tasked with establishing a task force to assess and mitigate economic effects and to develop alternative revenue sources to replace federal funds.
Reporting Requirements: Annual reports must be submitted to the State Legislature detailing the federal government’s progress toward a balanced budget and the State’s fiscal health.
Sunset Provision: The Act automatically expires after the federal government has maintained a balanced budget for two consecutive fiscal years.
Safeguards: Requires a comprehensive assessment of financial and operational impacts to protect state programs and ensure continuity of essential services.
Model Language
Section 1. Short Title: This Act may be cited as the “Federal Balanced Budget Support Act.”
Section 2. Findings and Purpose
(a) Findings:
The federal government’s continued deficit spending undermines long-term economic stability and places undue financial burdens on future generations.
The Trump Administration’s “America First” fiscal policies prioritize responsible governance and emphasize reducing reliance on unsustainable debt.
State participation in federal funding programs often perpetuates federal deficit spending and can conflict with the principles of fiscal conservatism.
(b) Purpose: To support efforts to require a balanced federal budget by rejecting federal funding and encouraging fiscal responsibility in accordance with the Trump Administration’s America First principles.
Section 3. Federal Balanced Budget Advocacy
(a) Balanced Budget Requirement: The State Legislature formally calls on Congress to enact a federal balanced budget amendment to the U.S. Constitution, requiring that federal expenditures do not exceed revenues except in cases of national emergency.
(b) Resolution of Support: The State Legislature shall adopt a resolution urging other states to join in advocating for a federal balanced budget amendment.
Section 4. Rejection of Federal Funding
(a) Prohibition on Federal Funds Acceptance: Effective [date], the state shall reject all federal funding for programs, projects, or services until Congress passes and the President signs a balanced federal budget or a constitutional amendment requiring a balanced budget.
(b) State Responsibility for Programs: State agencies and departments shall identify essential programs previously funded by federal dollars and propose alternative funding solutions using state revenues or private partnerships.
(c) Exceptions: Federal funding explicitly related to national defense, disaster relief, or emergency management may be accepted, subject to approval by the Governor and a two-thirds majority vote in the State Legislature.
Section 5. Fiscal Accountability and Reporting
(a) State Budget Adjustments: The Governor shall submit a revised state budget to the Legislature reflecting the rejection of federal funds and detailing how state resources will be reallocated.
(b) Transparency Requirements: The State Comptroller shall publish a report every six months detailing the impact of rejecting federal funding on state programs, services, and fiscal health.
Section 6. Public Engagement and Education
(a) Public Awareness Campaign: The state shall conduct a public education campaign to explain the importance of fiscal responsibility, the principles of a balanced federal budget, and the rationale for rejecting federal funding.
(b) Citizen Feedback: The State Legislature shall establish a forum for public input on how the state can innovate and replace federal funding with local solutions.
Section 7. Penalties for Non-Compliance
(a) Agency Accountability: Any state agency or department found to accept federal funds in violation of this Act shall be subject to fines, suspension of leadership, or other disciplinary actions as determined by the Governor.
(b) Oversight Committee: The Legislature shall establish a bipartisan oversight committee to monitor compliance and address challenges arising from the transition away from federal funding.
Section 8. Severability: If any provision of this Act is held invalid, the remaining provisions shall remain in full force and effect.
Section 9. Effective Date: This Act shall take effect 180 days after passage, allowing for the necessary fiscal adjustments and implementation of alternative funding mechanisms.