National Debt is National Security Act
Bill: S.3801 | Sponsor: Sen. Ernst, Joni (R-IA)
Policy area: Economics and Public Finance

Summary:
National Debt is National Security Act
This bill establishes limits on the amount of public debt that may be held by foreign governments, entities, and individuals.
The bill allows the President to waive the limits if the President determines and reports to Congress that an important national interest requires the waiver.

To establish limitations on the amount of debt issued by the United 
    States which may be held by foreign governments, entities, and 
                              individuals.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Debt is National Security 
Act''.

SEC. 2. LIMIT ON PUBLIC DEBT HELD BY FOREIGN GOVERNMENTS, ENTITIES, AND 
              INDIVIDUALS.

    (a) In General.--Subchapter I of chapter 31 of title 31, United 
States Code, is amended by inserting after section 3113 the following:
``Sec. 3114. Limit on public debt held by foreign governments, 
              entities, and individuals
    ``(a) In General.--
            ``(1) Cumulative limit.--Notwithstanding any other 
        provision of this chapter, the amount of the national debt 
        which is cumulatively held by foreign governments, entities 
        organized or incorporated under the laws of a foreign country, 
        and citizens of foreign countries shall not exceed an amount 
        equal to one-third of the national debt.
            ``(2) Country-specific limit.--Notwithstanding any other 
        provision of this chapter, with respect to any foreign country, 
        the amount of the national debt which is cumulatively held by 
        the government of such country, entities organized or 
        incorporated under the laws of such country, and citizens of 
        such country shall not exceed an amount equal to 5 percent of 
        the national debt.
    ``(b) Determination.--The Secretary of the Treasury, in 
coordination with the Director of the Office of Management and Budget, 
shall issue guidance regarding implementation of this section, 
including calculation of the amount of the national debt held by 
foreign governments, entities organized or incorporated under the laws 
of a foreign country, and citizens of foreign countries.
    ``(c) Presidential Waiver.--
            ``(1) In general.--The President may waive the application 
        of paragraph (1) or (2) of subsection (a) if the President 
        determines and, pursuant to paragraph (2), so reports that the 
        important national interest of the United States requires the 
        exercise of such waiver authority.
            ``(2) Congressional notification.--Not later than the date 
        of the exercise of a waiver under paragraph (1), the President 
        shall notify the Committee on Ways and Means of the House of 
        Representatives and the Committee on Finance of the Senate of 
        the waiver or the intention to exercise the waiver, together 
        with a detailed justification thereof.
    ``(d) National Debt.--For purposes of this section, the term 
`national debt' means the face amount of obligations issued under this 
chapter and the face amount of obligations whose principal and interest 
are guaranteed by the United States Government (except guaranteed 
obligations held by the Secretary of the Treasury).''.
    (b) Clerical Amendment.--The table of sections of subchapter I of 
chapter 31 of title 31, United States Code, is amended by inserting 
after the item relating to section 3113 the following:

``3114. Limit on public debt held by foreign governments, entities, and 
                            individuals.''.
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