This bill aims to limit the amount of U.S. national debt that can be held by foreign governments, foreign companies, and foreign citizens. It sets a cap of one-quarter of the total national debt for all foreign holders combined, and a 5% limit for any single foreign country. The president can waive these limits if they determine it's necessary for an important national interest.
Latest Action
Read twice and referred to the Committee on Finance.
AI Summary
Plain-English explanation of this bill
This bill aims to limit the amount of U.S. national debt that can be held by foreign governments, foreign companies, and foreign citizens. It sets a cap of one-quarter of the total national debt for all foreign holders combined, and a 5% limit for any single foreign country. The president can waive these limits if they determine it's necessary for an important national interest.
Last updated: 12/29/2025
Official Summary
Congressional Research Service summary
<p><b>National Debt is National Security Act</b></p> <p>This bill establishes limits on the portion of the national debt that may be held by foreign governments, entities, and individuals. </p> <p>Specifically, the portion of the national debt that is cumulatively held by foreign governments, entities organized or incorporated under the laws of a foreign country, and citizens of foreign countries may not exceed one-fourth of the national debt. </p> <p>In addition, the portion of the national debt that is cumulatively held by the government of a single foreign country, entities organized or incorporated under the laws of the country, and citizens of the country may not exceed 5% of the national debt. </p> <p>The bill allows the President to waive these limits if the President determines and reports to Congress that an important national interest requires the waiver. </p>
Key Points
Main provisions of the bill
Limits the total national debt that can be held by all foreign entities to 25% of the total debt
Limits the national debt that can be held by a single foreign country to 5% of the total debt
Allows the president to waive these limits if they determine it's necessary for an important national interest
How This Impacts Americans
Potential effects on citizens and communities
If this bill becomes law, it would affect foreign governments, companies, and citizens who currently hold U.S. debt. They would be required to reduce their holdings to meet the new limits, which could impact investment and economic relationships between the U.S. and other countries. Domestic U.S. investors and institutions may see increased demand for U.S. debt as foreign holdings are reduced.
Policy Areas
Primary Policy Area
Economics and Public Finance
Scope & Jurisdiction
Jurisdiction Level
federal
Congressional Session
119th Congress
Citation Reference
742, 119th Congress (2025). "Haiti Economic Lift Program Extension Act of 2025". Source: Voter's Right Platform. https://votersright.org/bills/118-s-742
