Section 1 Short title
This Act may be cited as the “Prioritizing Debt Reduction in U.S. Foreign Assistance Act of 2013”.
Prioritizing Debt Reduction in U.S. Foreign Assistance Act of 2013
A BILL
To prohibit assistance to foreign countries whose governments hold more than $500,000,000,000 in United States Treasury securities, and for other purposes.
Sec. 2 Definitions
In this Act:
Appropriate congressional committees— The term appropriate congressional committees means—
the Committee on Foreign Relations, the Committee on Appropriations, and the Committee on the Budget of the Senate; and
the Committee on Foreign Affairs, the Committee on Appropriations, and the Committee on the Budget of the House of Representatives.
Major foreign debt holder— The term major foreign debt holder means any foreign country the government of which the Secretary of the Treasury determines holds more than $500,000,000,000 in United States Treasury securities.
United States Treasury securities— The term United States Treasury securities means obligations issued by the United States under chapter 31 of title 31, United States Code.
Sec. 3 Findings
Congress makes the following findings:
The Federal debt of the United States is approximately $17 trillion.
Former Joint Chiefs of Staff Chairman, Admiral Mike Mullen, has repeatedly stated that the biggest threat to the national security of the United States is its debt.
A growing proportion of the Federal debt of the United States is held by foreign governments, to some of which the United States provides direct foreign assistance.
According to a Department of the Treasury report entitled Major Foreign Holders of Treasury Securities, foreign holdings of United States Treasury securities stood at more than $4 trillion at the end of December 2012.
In August 2011, Standard and Poor’s downgraded the United States long-term sovereign credit from AAA to AA+ due to America’s excessive borrowing and unsustainable spending levels.
Sec. 4 Sense of Congress
It is the sense of Congress that—
the growing Federal debt of the United States jeopardizes the national security and economic stability of the United States; and
paying money owed to America’s major foreign debt holders is a better use of American taxpayer dollars than providing such debt holders with United States foreign assistance.
Sec. 5 Statement of policy
Sec. 6 Prohibition on assistance to major foreign debt holders
Chapter 1 of part III of the Foreign Assistance Act of 1961 is amended by adding at the end the following new section:
“620N. Prohibition on assistance to major foreign debt holders
“(a) Prohibition—Except as provided in subsection (b), no assistance may be provided directly or indirectly under this Act to any foreign country the government of which the Secretary of the Treasury determines holds more than $500,000,000,000 in United States Treasury securities.
“(b) Exceptions—Subsection (a) shall not apply with respect to the following:
“(1) Assistance to respond to an emergency.
“(2) Assistance to meet humanitarian needs, including needs for food, medicine, medical supplies and equipment, education, and clothing.
“(c) Waiver—The Secretary of State may waive the prohibition under subsection (a) if the Secretary submits to the appropriate congressional committees a written certification that the waiver is in the national security interests of the United States.
“(d) Definitions—In this section—
“(1) the term appropriate congressional committees means—
“(A) the Committee on Foreign Relations, the Committee on Appropriations, and the Committee on the Budget of the Senate; and
“(B) the Committee on Foreign Affairs, the Committee on Appropriations, and the Committee on the Budget of the House of Representatives; and
“(2) the term United States Treasury securities means obligations issued by the United States under chapter 31 of title 31, United States Code.”
Sec. 7 Report on assistance to foreign debt holders
Annual report— Not later than September 30 of each year, the Secretary of State shall submit to the appropriate congressional committees a report on the provision of United States foreign assistance to foreign countries whose governments hold United States Treasury securities.
Content of report— Each report submitted under this section shall include the following:
An analysis of the current and foreseeable risks to the long-term national security and economic stability of the United States posed by the Federal debt of the United States.
How much foreign assistance per country, per year, has been provided to foreign countries whose governments hold United States Treasury securities.
Form— Each report submitted under this section shall be submitted in unclassified form, but may contain a classified annex if necessary.
Public availability— The Secretary of State shall make each report required by subsection (a) available, in its unclassified form, to the public by posting it on the Internet website of the Department of State in a conspicuous manner and location.