New Act Mandates Treasury Report Linking National Debt and Interest Payments Directly to U.S. Security Threats

This new legislation, the National Net Interest is National Security Act of 2025, sets up a new reporting requirement that essentially formalizes the idea that Uncle Sam’s credit card debt is a national security risk. It mandates that the Secretary of the Treasury, working with the Secretaries of Defense and State, produce a deep-dive report that connects the dots between the growing national debt, the massive interest payments on that debt, and specific threats to U.S. national security.

The Security-Fiscal Nexus

Within one year of the bill passing, the Treasury Department has to deliver this report to key Congressional committees (including Finance, Armed Services, and Foreign Relations). The report isn't just about big numbers; it has to analyze how rising debt affects the government’s ability to fund essential defense programs and handle major crises like economic downturns or new global threats. Think of it this way: if interest payments start eating up too much of the budget, that money can’t go toward training, equipment, or diplomatic efforts—a concept the bill calls ‘crowding out.’ This analysis is required to be updated every time the National Defense Strategy is sent to Congress, ensuring the link between the budget and security threats remains current.

Where the Debt Hits Home

The report must specifically analyze how the national debt impacts critical domestic programs. That means Treasury has to look at the funding of Social Security (Title II), Medicare (Title XVIII), and Medicaid (Title XIX). For the average worker paying into these systems, this report will provide a formal, high-level assessment of how fiscal policy threatens the long-term stability of their retirement and healthcare safety nets. Furthermore, the analysis must also look at the global standing of the dollar, U.S. credit ratings, and domestic inflation—all factors that directly influence the cost of everything from groceries to mortgages.

The Power of the Pen and the GAO Flag

Crucially, the report must include specific legislative suggestions for Congress to pass to reduce the national security risks posed by the debt. This gives the Treasury Secretary significant influence in pushing specific fiscal policies under the umbrella of security necessity. However, the bill does grant the Secretary broad, undefined scope to include any other mandatory spending programs they deem relevant in their analysis, which introduces a medium level of vagueness regarding which social programs might be flagged as contributing to security risk. Finally, the bill ensures this issue gets maximum attention by requiring the Comptroller General (the head of the Government Accountability Office, or GAO) to add the national security threats posed by the debt to the GAO’s official High Risk List. This means the issue will be under constant, formal scrutiny, demanding corrective action from federal agencies. While this bill doesn't change spending today, it changes how the government talks about the national debt, forcing fiscal policy into the national security conversation.