The compact passed the Republican-controlled Senate by a vote of 26 to 11. The legislation calls for setting a federal debt limit to no greater than 105 percent of outstanding debt once the compact is ratified. A majority of state legislatures have to approve any future requests from Congress to increase the debt limit. The compact also contains language pertaining to the conduct of delegates during an Article V convention.
Thirty-four state legislatures must approve the compact in order for Congress to call an Article V convention. The compact would expire in 2021 if not enough states enact the legislation. Four states, including Alaska, Georgia, Mississippi, and North Dakota have already enacted the compact. The Alabama and Missouri state Senate have already approved the compact this year, but the measure died in their state House of Representatives after their regular sessions ended.
The compact is one of three proposals that have been circulated among various state legislatures in enacting a balanced budget amendment. Twenty-seven states have already passed legislation backed by the Balanced Budget Amendment Task Force, while three states have passed legislation backed by Convention of the States.
The Michigan House of Representatives will now have its chance to approve the compact. Republicans control the chamber 61 to 46.