S. 2375: National Net Interest is National Security Act of 2025

The National Net Interest is National Security Act of 2025 aims to address potential national security threats posed by the increasing national debt and the net interest payments associated with that debt. Under this legislation:

Report Requirement

The Secretary of the Treasury, working with the Secretaries of Defense and State, is required to prepare and submit a comprehensive report to specific Congressional committees. This report must be completed within one year after the law passes and subsequently updated with each national defense strategy report.

Contents of the Report

The required report must include:

• An assessment of how rising national debt and interest payments affect:
• Defense spending: The financial resources available for national defense.
• Federal revenue: How much money the government collects.
• U.S. operational capabilities: This includes how well the U.S. can respond to national defense needs and future geopolitical threats, as well as economic crises.
• Mandatory spending obligations: Such as Social Security, Medicare, and Medicaid programs.
• The value of the U.S. dollar: Its status in global markets and as a reserve currency.
• The credit rating of the U.S.: How creditworthiness could be affected.
• Inflation and interest rates: Their impact on the economy.
• An analysis of the risk that net interest payments could limit spending on other critical areas, such as:
• National security and diplomacy: Financial support necessary for maintaining international relations.
• Public investment: Funding essential for addressing economic challenges.
• Recommendations for possible legislative actions that may help mitigate the national security risks linked to national debt and interest payments.

Government Accountability Office (GAO) Inclusion

The Comptroller General of the United States is tasked with adding issues related to the national debt and interest payments' threats to national security to the GAO’s High-Risk List. This list highlights areas needing management improvement within the government.

Defined Congressional Committees

The legislation specifies which Congressional committees are considered "appropriate." They include:

• Senate Committees:
• Committee on Finance
• Committee on Foreign Relations
• Committee on Armed Services
• House Committees:
• Committee on Ways and Means
• Committee on Foreign Affairs
• Committee on Armed Services

Implementation Timeline

The report must be completed not later than one year after the enactment of the Act, with ongoing assessments to coincide with updates to the national defense strategy.

Relevant Companies

None found