Gregg Wants to End TARP, Use Funds Toward Deficit Reduction

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Senate Budget Committee Ranking Member Judd Gregg (R-NH) said today that the Obama Administration should end TARP (Troubled Asset Relief Program) and use the remaining funds to pay down the deficit.

“While the President’s plan to freeze what amounts to a small portion of discretionary spending is certainly a first step in the right direction, its effect on the growth of debt pales in comparison with the impact of simply following TARP law – ending the TARP authority immediately and using repaid TARP funds to pay down the debt. TARP served its intended purpose and is no longer needed, so its authority should not have been extended until October 2010, and it certainly should not be used for other purposes. In fact, under the TARP law, unused TARP authority cannot be used as a so-called “offset” for new spending bills.

“If the Administration has a genuine desire to address the nation’s crippling debt, it should not stop at freezing some discretionary spending. It should also turn off the TARP spigot for good, and reimburse taxpayers by using repaid TARP dollars to reduce our staggering debt burden, not expand the government further and drive the nation deeper into debt. Putting TARP dollars out of Congress’ reach will benefit taxpayers much more than just a discretionary spending freeze.”

(credit image – getty)

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Filed under Budget, TARP

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