What This Bill Does
This bill creates rules limiting how much United States debt foreign governments, companies and people can own. The bill says foreign owners combined cannot hold more than one-fourth of the total national debt, and no single foreign country can hold more than 5 percent of it.
Who It Affects
The Secretary of the Treasury (the federal official who manages money for the U.S. government), the Director of the Office of Management and Budget (the federal official who oversees the budget), the President, Congress, and foreign governments, foreign companies and foreign citizens who own U.S. debt.
Key Provisions
• The combined total amount of national debt held by all foreign governments, foreign companies and foreign citizens cannot exceed one-fourth of the national debt (Sec. 2(a)(1))
• No single foreign country's government, companies or citizens can cumulatively hold more than 5 percent of the national debt (Sec. 2(a)(2))
• The Secretary of the Treasury must create guidance explaining how to carry out this law, including how to calculate the amount of debt held by foreign owners (Sec. 2(b))
• The President can waive these limits if the President decides an important national interest of the United States requires it, and must notify Congress with a detailed explanation (Sec. 2(c))
What Changes
U.S. law will be amended to add a new section creating and enforcing limits on foreign ownership of national debt.
Important Definitions
"National debt" means the face amount (the stated value) of bonds and loans issued by the United States and the face amount of loans whose payments are guaranteed by the U.S. Government (but not including those the Treasury Secretary holds) (Sec. 2(d))
Effective Date
Not specified in bill text
I
118TH CONGRESS
1ST SESSION H. R. 1498
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 HOUSE OF REPRESENTATIVES
MARCH 9, 2023
Mr. C. SCOTT FRANKLIN of Florida introduced the following bill; which was
referred to the Committee on Ways and Means
A BILL
To establish limitations on the amount of debt issued by
the United States which may be held by foreign govern-
ments, entities, and individuals.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘National Debt is Na-
4
tional Security Act’’.
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SEC. 2. LIMIT ON PUBLIC DEBT HELD BY FOREIGN GOV-
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ERNMENTS, ENTITIES, AND INDIVIDUALS.
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(a) IN GENERAL.—Subchapter I of chapter 31 of title
8
31, United States Code, is amended by inserting after sec-
9
tion 3113 the following:
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•HR 1498 IH
‘‘§ 3114. Limit on public debt held by foreign govern-
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ments, entities, and individuals
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‘‘(a) IN GENERAL.—
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‘‘(1)
CUMULATIVE
LIMIT.—Notwithstanding
4
any other provision of this chapter, the amount of
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the national debt which is cumulatively held by for-
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eign governments, entities organized or incorporated
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under the laws of a foreign country, and citizens of
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foreign countries shall not exceed an amount equal
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to one-fourth of the national debt.
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‘‘(2)
COUNTRY-SPECIFIC
LIMIT.—Notwith-
11
standing any other provision of this chapter, with re-
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spect to any foreign country, the amount of the na-
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tional debt which is cumulatively held by the govern-
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ment of such country, entities organized or incor-
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porated under the laws of such country, and citizens
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of such country shall not exceed an amount equal to
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5 percent of the national debt.
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‘‘(b) DETERMINATION.—The Secretary of the Treas-
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ury, in coordination with the Director of the Office of
20
Management and Budget, shall issue guidance regarding
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implementation of this section, including calculation of the
22
amount of the national debt held by foreign governments,
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entities organized or incorporated under the laws of a for-
24
eign country, and citizens of foreign countries.
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‘‘(c) PRESIDENTIAL WAIVER.—
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•HR 1498 IH
‘‘(1) IN GENERAL.—The President may waive
1
the application of paragraph (1) or (2) of subsection
2
(a) if the President determines and, pursuant to
3
paragraph (2), so reports that the important na-
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tional interest of the United States requires the ex-
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ercise of such waiver authority.
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‘‘(2)
CONGRESSIONAL
NOTIFICATION.—Not
7
later than the date of the exercise of a waiver under
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paragraph (1), the President shall notify the Com-
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mittee on Ways and Means of the House of Rep-
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resentatives and the Committee on Finance of the
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Senate of the waiver or the intention to exercise the
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waiver, together with a detailed justification thereof.
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‘‘(d) NATIONAL DEBT.—For purposes of this section,
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the term ‘national debt’ means the face amount of obliga-
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tions issued under this chapter and the face amount of
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obligations whose principal and interest are guaranteed by
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the United States Government (except guaranteed obliga-
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tions held by the Secretary of the Treasury).’’.
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(b) CLERICAL AMENDMENT.—The table of sections
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of subchapter I of chapter 31 of title 31, United States
21
Code, is amended by inserting after the item relating to
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section 3113 the following:
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‘‘3114. Limit on public debt held by foreign governments, entities, and individ-
uals.’’.
Æ
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