I 
109TH CONGRESS 
1ST SESSION 
H. R. 746
To require Congress to impose limits on United States foreign debt. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 10, 2005
Mr. CARDIN (for himself, Mr. RANGEL, Mr. LEVIN, Mr. MCDERMOTT, Mr. 
LEWIS of Georgia, Mr. JEFFERSON, Mr. BECERRA, Mr. LARSON of Con-
necticut, Mr. NEAL of Massachusetts, and Mr. EMANUEL) introduced the 
following bill; which was referred to the Committee on Ways and Means 
A BILL 
To require Congress to impose limits on United States 
foreign debt.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Foreign Debt Ceiling 
Act of 2005’’. 
SEC. 2. FOREIGN DEBT CEILING. 
(a) FINDINGS.—Congress makes the following find-
ings:
(1) The United States has become the world’s 
largest net debtor Nation, having run up massive 
trade deficits since the 1990s. 
(2) At the end of 2002, the net United States 
foreign debt stood at $2,553,000,000,000. 
(3) The United States foreign debt position 
worsened in 2003, when the United States had a 
record trade deficit of $489,000,000,000, equivalent 
to 4.4 percent of the United States GDP that year. 
(4) The large and growing United States for-
eign debt represents claims on United States assets 
by foreign nationals, which will eventually have to be 
repaid. If unchecked, the foreign debt could seriously 
undermine our children’s future standard of living. 
(5) Moreover, the growing accumulation of for-
eign claims on United States assets, including over 
$1,200,000,000,000 in United States Treasury secu-
rities, makes the United States economy vulnerable 
to the whims of foreign investors. 
(6) Congress presently places a ceiling on 
United States public debt, but does not place a ceil-
ing on United States foreign debt. 
(7) Just as Congress recognized the importance 
of placing a ceiling on the United States public debt,
it is appropriate that Congress place a limit on the 
United States foreign debt. 
(b) ACTIONS TRIGGERED BY UNITED STATES FOR-
EIGN DEBT.—
(1) IN GENERAL.—Not later than the 15th day 
of the second month after the date of enactment of 
this Act, and every 3 months thereafter, the United 
States Trade Representative shall determine if—
(A) the net United States foreign debt for 
the preceding 12-month period is more than 25 
percent of United States GDP for the same pe-
riod; or 
(B) the United States trade deficit for the 
preceding 12-month period is more than 5 per-
cent of United States GDP for the same period. 
(2) ACTION BY USTR.—Whenever an affirma-
tive determination is made under paragraph (1) (A) 
or (B), the United States Trade Representative 
shall—
(A) within 15 days after making the deter-
mination, convene an emergency meeting of the 
Trade Policy Review Group to develop a plan of 
action to reduce the United States trade deficit; 
and
(B) within 45 days after making the deter-
mination, present to Congress a report detailing 
the Trade Policy Review Group’s trade deficit 
reduction plan. 
(c) MEASUREMENT OF FOREIGN DEBT.—
(1) STATISTICAL
SOURCES.—For purposes of 
the calculations described in subsection (b)(1), the 
United States Trade Representative shall rely on the 
most recent period for which the following data, 
published by the Department of Commerce, is avail-
able: 
(A) In the case of United States foreign 
debt, the United States Trade Representative 
shall use the net international investment posi-
tion of the United States, with direct invest-
ment positions determined at market value, as 
compiled by the Bureau of Economic Analysis. 
(B) In the case of the United States trade 
deficit, the United States Trade Representative 
shall use the goods and services trade deficit 
data compiled by the United States Census Bu-
reau. 
(C) In the case of the United States GDP, 
the United States Trade Representative shall
use the nominal gross domestic product data 
compiled by the Bureau of Economic Analysis. 
(2) ADJUSTMENT.—The United States Trade 
Representative may adjust the data described in 
paragraph (1) to ensure that the determination is 
made for comparable time periods.
Æ