Paulsen Introduces Legislation to End Bailout Program
Minnesota Congressman continues effort to wrap up Troubled Asset Relief Program by end of 2009

Washington, D.C. – Continuing his effort to protect taxpayers by bringing an end to the Troubled Asset Relief Program (TARP), Congressman Erik Paulsen (MN-03) today introduced the TARP Sunset Act, legislation that will end the program at the end of this year.  Paulsen’s bill, which mirrors an amendment he offered in the House Financial Services Committee yesterday, would officially terminate the TARP program on December 31st, 2009 and prevent a possible extension of the program, which remains an option under current law.

“The possibility of TARP being extended well into next year should be a non-starter,” Paulsen said.  “The U.S. is almost $12 trillion in debt, we have a record deficit and TARP funds have evolved into walking around money for the federal government.  Given that the inspector general overseeing TARP has said it will almost certainly result in a loss for taxpayers, it’s crystal clear that the time for Congress to bring this program to an end has arrived.”

Under the original legislation authorizing TARP, the program is supposed to expire on December 31st, 2009.  However, the legislation grants the Administration the right to extend the program until October of 2010, which can be triggered by the Secretary of the Treasury sending a notification letter to Congress.  The TARP Sunset Act would repeal this provision, ensuring TARP concludes at the end of 2009.

Paulsen’s bill was introduced with 56 original co-sponsors and is companion legislation to a Senate bill introduced by Sen. John Thune (R-SD). 

For more information on Paulsen’s work in Congress, please visit www.paulsen.house.gov.

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