WASHINGTON – Congressman Leonard Lance (NJ-7) today said that Troubled Asset Relief Program (TARP) funds returned by financial firms should be used to reduce our nation’s ever-growing debt, not used on new spending as suggested by the U.S. Secretary of Treasury and some in Congress.

“The TARP repayment news is a promising sign that our beleaguered financial system is beginning to stabilize and taxpayer funds are being returned,” said Lance, a member of the House Financial Services Committee. “However, I am deeply concerned about the signals being sent from the Treasury Department and some in Congress regarding the fate of these returned dollars. Let me be clear — these funds must be designated to pay down our national debt.”

Earlier this week the U.S. Treasury Department announced the repayment of TARP funds from ten banks, totaling $68.3 billion returned to the TARP program. While Lance and others have called for these repayments be applied to help pay down the national debt, Treasury Secretary Timothy Geithner has indicated that the returned funds would “free up resources” for new future bailout loans.

"I respectfully disagree with the Secretary's position that these monies can be reused in the future," continued Lance. "The repaid taxpayer funds should only be used to pay down the ever-growing national debt.”

Earlier this week Lance joined 19 of his Republican colleagues on the House Financial Services Committee in sending a letter to Secretary Geithner calling on him to “designate these repaid funds to pay down the national debt.” Congressman Lance is a cosponsor of H.R. 2119,” legislation that would require Treasury to apply returned TARP funds to debt reduction.

Rep. Leonard Lance is a leading voice in Congress for reducing our national debt, calling recent federal spending that increases the national debt “very troubling” and “nothing more than generational theft.”

ClickHERE to see Congressman Lance’s letter to Secretary Geithner.


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