Vote Smart's Synopsis:

Vote to adopt an amendment to S Amdt 4301 to HR 4213 that requires the Secretary of the Treasury to submit annual reports on the risks posed by foreign holdings of U.S. debt and requires the Comptroller General to submit annual reports on risks posed by the federal debt of the U.S., and outlines "corrective action" to address "unacceptable" risks posed by foreign holdings of U.S. debt.

Highlights:

• Requires the Secretary of the Treasury to submit annual reports on the risks posed by foreign holdings of U.S. debt to the appropriate congressional committees that include the following (Sec. X04):
• The most recent data available on foreign holdings of debt of the U.S., which shall not be older than the date that is 9 months before the date of the report;
• The total amount of debt instruments of the U.S. that are held by the foreign creditors, broken out by the creditors' country of domicile and by public, quasi-public, and private creditors; and
• An analysis of the current and foreseeable risks to long-term national security and economic stability of the U.S. as a result of foreign holdings of debt of the U.S.

• Requires the Comptroller General to submit annual reports on the risks posed by the federal debt of the U.S. to the appropriate congressional committees that include the following (Sec. X05):
• An analysis of the current and foreseeable risks posed to the long-term national security and economic stability of the U.S. as a result of federal debt; and
• Recommendations for reducing the levels of risk resulting from the federal debt.

• Requires the President, upon determining that foreign holdings of U.S. debt pose an "unacceptable risk" to the U.S., to do all of the following within 30 days of the determination (Sec. X06):
• Formulate a plan of action to reduce the risk level to an "acceptable and sustainable level" by reducing federal spending;
• Submit to the appropriate congressional committees a report on the plan of action that includes a time-line for the implementation of the plan and recommendations for any legislative action that would be required to fully implement the plan; and
• Move "expeditiously" to implement the plan.

• Defines "appropriate congressional committees" as all of the following (Sec. X02):
• Senate Committee on Armed Services;
• Senate Committee on Foreign Relations;
• Senate Committee on Finance;
• Senate Committee on Banking, Housing, and Urban Affairs;
• Senate Committee on the Budget;
• House Committee on Armed Services;
• House Committee on Foreign Relations;
• House Committee on Ways and Means;
• House Committee on Financial Services; and
• House Committee on the Budget.

Full Bill Text

Full Bill Text