For Immediate Release: February 2nd, 2010

Contacts:
Paulsen, Luke Friedrich (952) 405-8510
Tiahrt, Wendy Knox (202) 225-6216
Herger, Matt Lavoie (202) 225-3076

Paulsen, Tiahrt, Herger Introduce END TARP Act to Stop the Bailouts and Pay Down Our Debt
Act would immediately terminate bailout, apply remaining funds to reduce national debt

WASHINGTON – With Congress poised to vote on raising the nation’s debt ceiling to a staggering $14.3 billion, Congressman Erik Paulsen (MN-03), along with U.S. Representatives Wally Herger (CA-2) and Todd Tiahrt (KS-4), introduced the END TARP Act that would immediately terminate the Troubled Asset Relief Program (TARP) and reduce the debt ceiling by the amount of remaining authorized TARP funds, roughly $200 billion. 

“The amount of debt being accumulated in Washington right now is staggering and it threatens the strength of the United States in both the short and long-term,” Paulsen said.  “We must seek every avenue to reduce the national debt.  Ending the TARP program once and for all would not only conclude the bailouts that have long since run their course, it would reduce the amount of money that must be borrowed to finance Washington’s runaway spending habits.” 

“We must terminate this unnecessary use of taxpayer money on runaway bailout programs immediately,” said Tiahrt. “We can not spend (or bailout) our way back to a stronger economy. The unauthorized bailout funds should be used to pay down the national debt that has skyrocketed under the Obama administration’s reckless spending policies. It’s time to end the TARP bailout program once and for all and get to work on conservative, free-market policies that will build our economy from the ground up.”

Herger said, “TARP has become a revolving slush fund that has hidden the true cost of reckless federal spending.  American’s don’t want any more bailouts; they want their money back.  The END TARP Act would shut down this program immediately and take a big step toward restoring fiscal sanity in Washington by slashing $200 billion from the national debt and ensuring that all future TARP repayments are used to pay it down further.  In sharp contrast to the President’s $46 trillion ten-year budget that burdens our children and grandchildren with crippling deficits for years to come, Congress should get serious about protecting taxpayer dollars by passing the END TARP Act and bringing this era of big government spending to an end.”

When the TARP program was enacted, the public debt limit was increased to $11.3 trillion.  Congress has since raised the debt limit four times since July of 2008, with the Senate passing another increase of $1.9 trillion just last week.   The House is expected to vote on the measure as early as this week. 

Senator John Thune has introduced companion legislation in the Senate – S.2938.   Paulsen previously introduced the TARP Sunset Act, legislation that would have ended TARP at the end of 2009.  Last year, Tiahrt introduced the Ensure TARP Expires Act of 2009  that would have blocked the U.S. Treasury Secretary from expending more bailout funds under the TARP program and directed all remaining funds towards paying down the national debt.

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