Ernst, Cassidy propose bill to limit foreign-ownership of U.S. debt

With China owning more than $1.07 trillion of United States debt, U.S. Sens. Joni Ernst (R-IA) and Bill Cassidy (R-LA) proposed legislation requiring that no more than one-third of America’s national debt be foreign-owned.

“The United States should not owe over $1 trillion to adversaries like the Chinese Communist Party,” Sen. Ernst said. “Adversarial ownership over our national debt by foreign entities is not only harmful to our economy, it’s also a direct threat to our national security.”

Sen. Ernst on March 10 sponsored the National Debt is National Security Act, S. 3801, with original cosponsors Sen. Cassidy and Sen. Mike Braun (R-IN), to also bar certain countries from owning more than 5 percent of the national debt, according to a bill summary provided by the lawmakers. 

“Allowing China and other adversaries to control large portions of our debt is a national security threat,” said Sen. Cassidy. “We need to rein in spending and limit China’s leverage over the United States.”

Additionally, S. 3801 would task the U.S. Treasury Secretary, in coordination with the director of the Office of Management and Budget, to issue guidance on implementing the bill, 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, according to the text of the bill.

The legislation has been referred for consideration to the U.S. Senate Finance Committee.