Proposing a balanced budget amendment to the Constitution of the United States.

H.J. Res. 110, proposing a balanced budget amendment to the Constitution, was introduced in the House of Representatives on July 23, 2025, and subsequently referred to the House Committee on the Judiciary. This bill, if ratified, would require federal expenditures and receipts to be balanced within ten years of its ratification, excluding debt payments. This is an early-stage bill, and its passage would require a two-thirds vote in both the House and Senate, followed by ratification by three-fourths of the state legislatures. The bill does not authorize or appropriate any specific funding. Instead, it proposes a constitutional amendment that would fundamentally alter federal spending. The mechanism is a constitutional mandate for fiscal balance, which would necessitate broad federal spending cuts. These cuts would affect all non-debt payment categories, including defense contracts, social programs, and other government expenditures. Structural losers under this amendment would include defense contractors such as Lockheed Martin Corporation ($LMT), RTX Corporation ($RTX), General Dynamics Corporation ($GD), and The Boeing Company ($BA), as federal defense spending would be subject to significant reductions. Healthcare providers and insurers, including UnitedHealth Group Incorporated ($UNH) and CVS Health Corporation ($CVS), would also face decreased expenditures in social programs. Financial institutions like JPMorgan Chase & Co. ($JPM), Bank of America Corporation ($BAC), Wells Fargo & Company ($WFC), and Citigroup Inc. ($C) could experience increased volatility due to potential changes in the value and stability of government debt, although the bill explicitly excludes debt payments from the balancing requirement, the broader fiscal austerity could still impact the financial markets. Recent market data shows mixed performance across these sectors. Defense contractors like $LMT (+4.34%), $RTX (+1.69%), $GD (+1.62%), and $BA (+5.13%) have seen positive 7-day changes, but negative 30-day changes, indicating recent upward movement after a period of decline. Healthcare companies $UNH (+13.13%) and $CVS (+7.94%) have shown strong positive 7-day changes. Financial institutions $JPM (+0.01%), $BAC (+2.17%), $WFC (+2.00%), and $C (+2.80%) have also experienced positive 7-day changes. The current market performance does not reflect the potential long-term impact of this bill, which is still in its very early legislative stages. The next legislative step for H.J. Res. 110 would be consideration by the House Committee on the Judiciary. Given its early stage, the timeline for this bill is extensive and uncertain. It must pass through committee, then receive a two-thirds vote in both chambers of Congress, and finally be ratified by 38 states within seven years of its submission for ratification. This process indicates a long legislative path with multiple hurdles.