II 

118TH CONGRESS 

1ST SESSION S. 742 

To establish limitations on the amount of debt issued by the United States 

which may be held by foreign governments, entities, and individuals. 

IN THE SENATE OF THE UNITED STATES 

MARCH 9, 2023 

Ms. ERNST (for herself, Mr. BRAUN, Mr. CASSIDY, and Ms. LUMMIS) introduced the following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To establish limitations on the amount of debt issued by 

the United States which may be held by foreign governments, entities, and individuals. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘National Debt is Na5 tional Security Act’’. 


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1 SEC. 2. LIMIT ON PUBLIC DEBT HELD BY FOREIGN GOV2 ERNMENTS, ENTITIES, AND INDIVIDUALS. 

3 (a) IN GENERAL.—Subchapter I of chapter 31 of title 

4 31, United States Code, is amended by inserting after sec5 tion 3113 the following: 

6 ‘‘§ 3114. Limit on public debt held by foreign govern7 ments, entities, and individuals 

8 ‘‘(a) IN GENERAL.— 

9 ‘‘(1) CUMULATIVE LIMIT.—Notwithstanding 

10 any other provision of this chapter, the amount of 

11 the national debt which is cumulatively held by for12 eign governments, entities organized or incorporated 

13 under the laws of a foreign county, and citizens of 

14 foreign countries shall not exceed an amount equal 

15 to one-fourth of the national debt. 

16 ‘‘(2) COUNTRY-SPECIFIC LIMIT.—Notwith17 standing any other provision of this chapter, with re18 spect to any foreign country, the amount of the na19 tional debt which is cumulatively held by the govern20 ment of such country, entities organized or incor21 porated under the laws of such county, and citizens 

22 of such country shall not exceed an amount equal to 

23 5 percent of the national debt. 

24 ‘‘(b) DETERMINATION.—The Secretary of the Treas25 ury, in coordination with the Director of the Office of 

26 Management and Budget, shall issue guidance regarding 


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1 implementation of this section, including calculation of the 

2 amount of the national debt held by foreign governments, 

3 entities organized or incorporated under the laws of a for4 eign county, and citizens of foreign countries. 

5 ‘‘(c) PRESIDENTIAL WAIVER.— 

6 ‘‘(1) IN GENERAL.—The President may waive 

7 the application of paragraph (1) or (2) of subsection 

8 (a) if the President determines and, pursuant to 

9 paragraph (2), so reports that the important na10 tional interest of the United States requires the ex11 ercise of such waiver authority. 

12 ‘‘(2) CONGRESSIONAL NOTIFICATION.—Not 

13 later than the date of the exercise of a waiver under 

14 paragraph (1), the President shall notify the Com15 mittee on Ways and Means of the House of Rep16 resentatives and the Committee on Finance of the 

17 Senate of the waiver or the intention to exercise the 

18 waiver, together with a detailed justification thereof. 

19 ‘‘(d) NATIONAL DEBT.—For purposes of this section, 

20 the term ‘national debt’ means the face amount of obliga21 tions issued under this chapter and the face amount of 

22 obligations whose principal and interest are guaranteed by 

23 the United States Government (except guaranteed obliga24 tions held by the Secretary of the Treasury).’’. 


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1 (b) CLERICAL AMENDMENT.—The table of sections 

2 of subchapter I of chapter 31 of title 31, United States 

3 Code, is amended by inserting after the item relating to 

4 section 3113 the following: 

‘‘3114. Limit on public debt held by foreign governments, entities, and individuals.’’. 

Æ 


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