Posted: April 27th 2009
Senator Thune has introduced a bill that would require the Treasury to use taxpayer funds returned by financial institutions under the TARP program to reduce the national debt.
From the Daily Republic:
Federal bailout money repaid by financial institutions would be used to reduce the national debt under a plan introduced Wednesday by U.S. Sen. John Thune, R-S.D. The $700 billion bailout, known officially as the Troubled Asset Relief Program, or TARP, was adopted last year in order to strengthen the nation’s financial sector following the subprime mortgage crisis.
Some recipients of bailout funds now want to return the money, reportedly because they dislike being publicly associated with the program or because they oppose its restrictions on executive pay. It’s estimated that $25 billion could come back to the government over the next year.
Thune, who voted for the bailout bill in October, told reporters on a Wednesday conference call that returned TARP funds should “not be used as a discretionary slush fund for the new administration to spend on new government programs.”
“There’s a tremendous appetite right now in Washington for new money,” Thune said. “The spending and borrowing spree that’s been going on here is of great concern to me, and it should be for all Americans.”
You can also read more from South Dakota War College.
