U.S. Sen. Joni Ernst (R-IA) has introduced legislation that seeks to limit the total amount of national debt owed to foreign governments, entities, and individuals.
Her bill, the National Debt is National Security Act, would require that not more than one-third of the cumulative national debt may be owned by foreign governments, entities, and individuals. Further, it would mandate that not more than five percent of the cumulative national debt may be owned by the combined governments, entities, and individuals of a particular nation.
“The United States should not owe over $1 trillion to adversaries like the Chinese Communist Party. 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,” Ernst said. “Instead of emboldening our adversaries by allowing them to take advantage of our national debt, President Biden and Congress need to put an end to their out-of-control federal spending and protect our national security.”
China currently owns nearly $1.1 trillion of U.S. national debt.
“Allowing China and other adversaries to control large portions of our debt is a national security threat,” U.S. Sen. Bill Cassidy (R-LA), one of the bill’s cosponsors, said. “We need to rein in spending and limit China’s leverage over the United States.”
Last summer, Ernst helped introduce the Federal Debt Emergency Control Act to rein in Washington’s out-of-control spending and provide a concrete path forward to tackle the nation’s debt crisis.
U.S. Sen. Mike Braun (R-IN) also cosponsored the bill.
“The foreign ownership of federal debt is particularly concerning in the hands of dangerous actors like the Chinese Communist Party. I’m proud to cosponsor The National Debt is National Security Act with Senator Ernst to limit the economic leverage of the CCP and preserve our economic and national security,” Braun said.