The Balanced Budget Act is a law enacted in 1997 aimed at reducing the federal budget deficit. It set specific targets for balancing the budget by controlling spending and increasing revenues. The act included measures affecting various sectors, including healthcare, education, and welfare programs, to ensure that government expenditures did not exceed its income. One significant aspect of the Balanced Budget Act was its impact on the Medicare program, which provides health coverage for seniors. The law introduced reforms to manage costs and improve efficiency in healthcare services, ultimately aiming to stabilize the federal budget while maintaining essential services for citizens.