McRae: Our national debt is a security threat
By Treasurer David McRae
America’s national security has never been a given, which is why President Reagan consistently preached “peace through strength.” Often, that strength is thought of through the lens of military prowess – the bigger the fleet, the harder we are to defeat. While true, that doesn’t tell the entire story.
Unable to compete with America’s powerful military, foreign adversaries have increasingly seized upon economic weaknesses. No one has proven more adept at this, of course, than communist China. Today, the Chinese government applies heavy tariffs to our goods, steals American intellectual property, purchases our agricultural land, and sends spy balloons soaring above our military bases. Still, American politicians have handed China power far beyond what the communist regime has amassed themselves; they’ve handed them our debt.
As of February 2025, China owned $784.3 billion of America’s debt – a debt that’s the direct result of a congressional spending addiction. When a foreign adversary owns that much debt, they hold financial leverage over you. And like it or not, China has financial leverage over the United States.
I want to think about the impact of that debt in another context to fully understand the danger. When a member of our military applies for a security clearance, they are subject to surveillance in a handful of categories, including criminal activity, foreign travel and personal finances.
The military takes the debt aspect of that surveillance incredibly seriously. In fact, finances are the most common reason someone is denied a clearance. The National Security Adjudicative Guidelines outlines why: “Failure to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness, and ability to protect classified or sensitive information.”
If this is what it takes for a member of our military to get a security clearance, do you think the federal government could pass the test?
Fortunately, there is a way to solve this that every family in America is familiar with: When spending exceeds revenue, you start cutting costs. President Trump’s Department of Government Efficiency (DOGE) has made the first real attempt at doing this in decades. In less than 100 days, the President’s team has cut $155 billion in spending – and their momentum continues.
Ultimately, I believe a Balanced Budget Amendment must be passed to force Congress to live within its means. That’s why I was honored to accept an appointment from Gov. Reeves to serve on the Compact for a Balanced Budget Commission, the premier group fighting to make this constitutional change. After all, if Mississippi can balance our budget every year, why can’t the federal government do the same?
A former Chairman of the Joint Chiefs of Staff was known to often say that national debt has become America’s top national security threat – and I agree. Congress must recognize the full spectrum of President Reagan’s “peace through strength” doctrine, and accordingly, stop undermining our military might with economic ineptitude.
Mississippi Treasurer David McRae is the 55th Treasurer for the State of Mississippi. In this role, he helps manage the state’s cash flow, oversees College and Career Savings Mississippi, and has returned more than $100 million in unclaimed money to Mississippians. For more information, visit Treasury.MS.gov.
