FIVE PROPOSED AMENDMENTS TO THE U.S. CONSTITUTION

VERSION 2.0 JULY 2025

AMENDMENT A – Professionally Manage Federal Trust Funds

  • Social Security Retirement, Social Security Disability Income, and Medicare shall each be designated as separate and independent Federal Trust Funds. Other funds may also be designated by Congress as Federal Trust Funds. Each Federal Trust Fund shall be separately and independently managed by a Board of Trustees who shall be required to comply with all the Federal laws and fiduciary responsibilities applicable to private sector and other public sector pension and Trust Funds.
  • Trustees will promulgate and implement investment policies to ensure prudent diversification, risk, maturities, liquidity, and investment returns for Trust assets, and may, but are not required to, include investments in U.S. Treasury Securities purchased as part of a prudent investment policy, not to provide financing of federal expenditures.
  • The Federal Trust Funds Boards of Trustees will consist of no fewer than seven members. Once established, every two years the terms of no fewer than two of the Trustees and Board Members shall expire.
  • Congress shall define in law the amounts citizens must contribute through taxation to each designated Federal Trust Fund but may not designate the financial benefits to be received by citizens participating in that Federal Trust Fund.
  • Each Federal Trust Fund must be maintained in a separate account at the Federal Reserve Bank in Washington, D.C. and must be separated from the general operating funds of the Federal Government.
  • Each Federal Trust Fund shall be separately audited every year by an independent outside public accounting firm and the resulting report of the audit and the auditor’s opinion made available on the Internet for citizens to see within 120 days after the close of the conclusion of the fiscal year being audited.
  • For 40 years from the date this Amendment is ratified Congress will guarantee to all Social Security and Medicare beneficiaries that their monthly benefits will be no less than they would have received under the systems in effect for each Federal Trust Fund immediately prior to the adoption of this Amendment.
  • Congress may appropriate funds to, but may not withdraw funds from, any Federal Trust Fund.
  • Congress will appropriate sufficient annual funding to enable Federal Trust Funds’ Boards of Trustees to properly administer and manage each Federal Trust Fund.
  • Amounts owing by the Treasury to Federal Trust Funds included in the calculation of our Federal debt must be repaid first before any other federal debt reduction. Annual installments of federal debt reduction shall be allocated pro rata to all Federal Trust Funds to which funds are owed.

AMENDMENT B – Balance Revenues and Expenses

  • Cash expenditures by the Federal Government in any fiscal year shall not exceed that year’s operating cash revenues received for the same fiscal period (other than for national emergencies as set forth below). Operating cash revenues are defined as federal government cash receipts from taxation and other sources, but shall not include contributions by taxpayers to any Federal Trust Fund including but not limited to Social Security Retirement, Social Security Disability Income, and Medicare.
  • Any federal appropriations law that may reasonably be expected to cause Federal Government cash expenditures to exceed operating cash revenues for a fiscal year may be declared unconstitutional by the Supreme Court of the United States prior to its enactment.
  • In the event actual cash expenditures exceed operating cash revenues in any fiscal year (other than for national emergencies as set forth below) Congress and the President shall reduce cash expenditures for the following fiscal year by amounts sufficient to create an offsetting operating cash revenue surplus during that subsequent fiscal year.
  • The President of the United States is empowered to exercise a line-item veto over any parts of any legislation that require or will require an appropriation of funds.
  • A national emergency requires both a declaration by the President and two thirds vote of both Houses of Congress. During a national emergency a specific amount and duration of deficit spending may be authorized by Congress and the President as part of the normal legislative process.

  • Action to terminate a national emergency shall require a simple majority of both houses of Congress and the approval by the President.

  • Each fiscal year’s federal expenditures must provide for repayment of a portion of the outstanding national debt equal to the lesser of the remaining amount of the national debt, or $500 billion. A pro rata share of the annual installment(s) of debt repayment(s) may be suspended during a declared national emergency.
  • The appropriations for, and dedicated revenues to repay, qualified capital projects need not be included in the revenues and expenditures when calculating compliance with this Amendment. A qualifying capital project is defined as a federal government investment in facilities, equipment, and infrastructure for public purposes and as further defined by generally accepted accounting principles. Federal government capital projects must be totally self-liquidating over the specified useful life of each capital project by dedicated sources of revenues and sinking funds (which shall include fully funding depreciation and amortization of each capital project) sufficient to repay 100% of the amounts of public funds invested in the capital projects over their useful lives.

AMENDMENT C – Simplify Federal Taxation

  • The sole purpose of federal taxation is to finance the legitimate operations of the Federal Government, not to influence taxpayers’ behaviors. Congress is prohibited from including inducements, credits, exemptions, exceptions, deductions, incentives, or preferences in any tax law.
  • If a tax is to be based upon taxpayers’ incomes, Congress may specify only income brackets and tax rates, but not the sources of income to be included.
  • Every citizen, legal resident alien, and every profit-producing enterprise must pay some federal tax. A minimum tax shall be enacted by Congress to satisfy in part the requirements of this provision.
  • The entire Internal Revenue Code in effect at the time this Amendment is adopted is abolished.

AMENDMENT D – Utilize Proper Accounting

  • All branches, departments, and agencies of the Federal Government, including the Federal Reserve must utilize generally accepted accounting principles in their accounting records and reporting, which shall include appropriate accrual accounting.
  • Generally accepted accounting principles shall be promulgated, published, and amended from time to time by an independent Federal Accounting Standards Board to be established and appropriately funded by Congress annually and administered by The Financial Accounting Foundation.
  • The Federal Accounting Standards Board will consist of no fewer than seven members, no fewer than four of whom will be Certified Public Accountants whose certifications are, and will remain, current and in good standing for the duration of their terms as members. Once established, every two years the terms of no fewer than two of the Trustees and Board Members shall expire.
  • Congress will pass no law or regulation, and federal departments or agencies will adopt no regulation, that requires or permits any accounting treatment for any purpose that conflicts with generally accepted accounting principles as promulgated by any Board established and sponsored by The Financial Accounting Foundation, including but not limited to The Financial Accounting Standards Board, The Government Accounting Standards Board, and The Federal Accounting Standards Board.
  • All branches, departments, and agencies of the Federal Government, including the Federal Reserve must:

    • be audited no less frequently than annually by an independent outside public accounting firm;
    • publish on the Internet within 120 days after the close of the conclusion of each fiscal year an independently audited financial statement including a balance sheet, statement of revenues and expenditures, footnotes, management’s analysis of operations and the independent outside public accounting firm auditor’s opinion.
  • Any department or agency that receives less than an unqualified opinion as a result of their annual audit shall, on the first occasion have their funding for the ensuing fiscal year reduced by 10%, and on each subsequent occasion by 25%, of the amount expended during the fiscal year for which a less than satisfactory audit was received.
  • The funding reduction of 25% shall continue indefinitely until the department or agency receives an unqualified opinion from their independent outside public accounting firm.
  • Congress may waive for a period not to exceed one year the funding reductions required by this Amendment.

AMENDMENT E – Fairly Manage the Regulatory Process

  • Disputes involving regulations shall be adjudicated by Administrative Courts to be established by Congress as part of the judicial branch of the federal government.

  • Administrative tribunals within regulatory agencies to adjudicate regulatory disputes are prohibited.
  • Every federal regulation must state the specific sections and language of the law(s) that authorize that regulation to be established. Administrative Courts may invalidate or require amendment to a regulation if it has insufficient standing in law.
  • Congress and the President will enact legislation to prescribe the standards, practices, qualifications, and the authorities of Administrative Courts, Administrative Court Judges and Masters.
  • Rulings of an Administrative Court may be appealed to the Federal Appellate Courts to and including the US Supreme Court.

Once ratified each of these Amendments must be fully implemented over a period not to exceed five years from the date of ratification.

In each of those five years following ratification Congress will pass legislation including a budget and the specific steps to be taken the ensuing year and in the years remaining in that five-year period to fully implement provisions of each ratified Amendment.