A powerful bipartisan group of senators led by Banking Committee Chairman Tim JohnsonTim JohnsonCourt ruling could be game changer for Dems in Nevada Bank lobbyists counting down to Shelby’s exit Former GOP senator endorses Clinton after Orlando shooting MORE (D-S.D.) is proposing to give the Obama administration the authority to seize up to $10 billion worth of assets owned by the Libyan government, liquidate those assets and spend the money on humanitarian efforts in Libya.

Johnson said his bill, the Libyan Assets for Humanitarian Relief Act, is based on a proposal that the Obama administration proposed to Congress some weeks ago.

"A few weeks ago the president's senior advisers from the Treasury Department, the State Department and the White House came to Congress and provided draft legislation to explicitly authorize the president to seize and vest the Gadhafi government's assets to be used to benefit the Libyan people," Johnson said Monday. "This measure is an updated version of that legislation, imposing certain conditions on that authority and providing for certain reporting, tracking and auditing requirements on the use of the funds."

The issue of taking Libyan assets falls under the jurisdiction of Johnson's Banking Committee. His bill is co-sponsored by ranking member Richard Shelby (R-Ala.). The measure is also co-sponsored by Foreign Relations Committee Chairman John KerryJohn KerryHow dealmaker Trump can resolve the Israeli-Palestinian conflict John Kerry to teach at Yale on global issues The case for Julian Castro as the 2020 Democratic nominee MORE (D-Mass.), Armed Services Committee Chairman Carl LevinCarl LevinSilencing of Warren another example of hyperpartisan Senate GOP going nuclear over Gorsuch might destroy filibuster forever Obama to preserve torture report in presidential papers MORE (D-Mich.) and ranking member John McCainJohn McCainTrump’s feud with the press in the spotlight Republicans play clean up on Trump's foreign policy Graham: Free press and independent judiciary are worth fighting for MORE (R-Ariz.), Homeland Security and Government Affairs Committee Chairman Joe Lieberman (I-Conn.) and Sen. Jack ReedJack ReedCruz: Supreme Court 'likely' to uphold Trump order Schumer: Trump should see 'handwriting on the wall,' drop order Sanders: Court ruling might 'teach President Trump a lesson' MORE (D-R.I.), a senior member of the Armed Services and Banking committees.

The bill would allow the president to seize $8 billion in Libyan government assets that are thought to be located within the United States, plus another $2 billion if needed to "avert an imminent humanitarian emergency." Johnson estimates that $200 million of this is already in cash in the U.S. and "available for immediate seizure and use to support humanitarian efforts in Libya."

Once passed by Congress, the president would be able to seize $4 billion immediately, and the second $4 billion could be taken and used after a 30-day notification period. Congress would have the ability to deny that second seizure by passing a joint resolution of disapproval. The additional $2 billion could be seized after the president certifies that there is a humanitarian emergency in Libya.

Johnson defended the bill by saying it would essentially allow the U.S. to distribute Gadhafi's assets back to his own people.

"It would effectively give the true owners of these assets — the Libyan people — access to some of their own money to provide relief for Libya's citizens," he said.

He also said there is precedent for this seizure going back to World War I, and as recently as the last decade. "The latest example is when we seized and used a portion of Iraqi government assets in 2003 to provide urgent reconstruction assistance and other forms of support for the people of Iraq," he said.

Any assets seized would be managed by the State Department, and would be spent on non-government humanitarian relief organizations now working in Libya. The bill would establish accounting and congressional reporting requirements on how the money is spent.

Kerry and McCain are among the senators who have supported the Obama administration's decision to intervene in Libya, in contrast to many in the House who have sought to limit military involvement there.