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House rejects using TARP funds for debt payments instead of jobs

By Perry Bacon Jr.
The House on Friday voted down a GOP-lead effort to prevent leftover funds from last year's financial sector bailout from being used for job creation, an approach the Obama administration and congressional Democrats have signaled they favor.

Before Congress voted to approve a bill that will change how financial firms are regulated, the chamber voted on a Republican-backed proposal for Congress to use billions currently not allocated from the $700 billion Troubled Assets Relief Program to pay down the national debt, which is now more than $12 trillion. More than $100 billion of the bailout funds remain, and some banks have started to repay their loans from the government as well.

The measure failed by a vote of 190 to 232, with the vast majority of Democrats opposing it, as they are eager to fund efforts that might ease an unemployment rate still hovering at 10 percent.

"There was not a problem when that money was targeted to Wall Street. We're asking for that same targeting for areas on Main Street," said Rep. David Scott (D-Ga.), who has called for the leftover funds to be spent in low-income communities to reduce job losses.

But Republicans have signaled they may press this issue as part of a series of efforts to cast Democrats as spending too much as Congress considers a health reform bill, a $447 spending bill that funds federal agencies and a proposal to increase the legal debt limit over the next month.

"House Democrats voted to continue TARP and go right on spending taxpayer dollars with reckless abandon," said House Minority Leader John A. Boehner (R-Ohio.)

By Web Politics Editor  |  December 11, 2009; 4:03 PM ET
Categories:  Economy Watch  
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Next: House likely to add jobs bill to defense spending legislation

Comments

The Democrats seem resistant to any attempt at financial responsibility.

Posted by: postfan1 | December 11, 2009 4:18 PM | Report abuse

They don't know how to create jobs,

but they know how to spend tax money!

Go Dem's!!!

Posted by: simonsays1 | December 11, 2009 4:20 PM | Report abuse

That's all they do is spend, spend, spend. When will it end?

Posted by: tonyjm | December 11, 2009 4:22 PM | Report abuse

All of you are bungholes!!! A class bungholes!!! Where was your outrage when idiot george spent this country into penury? Where was your outrage when idiot george saddled his successor with 2 stupid wars? Where was your outrage when idiot george turned the budget surplus he inherited from Bill Clinton into a deficit? You are all a bunch of bungholes!!! Ras bumboclaat!!

Posted by: Henry_of_BrowardCounty | December 11, 2009 4:37 PM | Report abuse

cut deficit by itself will create jobs ...
printing more more is path to disaster


=== nice deals/coupons site ======
Electronics-Links.com
===========

Posted by: tl1970 | December 11, 2009 4:40 PM | Report abuse

It's just too amazing to hear GOP comments lamenting overspending by the government.

Where were they when Reagan/Bush I quadrupled the debt from $1 trillion to $4T? Or when Bush II added another $4T ?
But now, when the economy and Main street need it most, the GOP says pay down the debt.

Truly, laugh out loud !!

Posted by: truthtime | December 11, 2009 4:42 PM | Report abuse

"There was not a problem when that money was targeted to Wall Street. We're asking for that same targeting for areas on Main Street," said Rep. David Scott (D-Ga.), who has called for the leftover funds to be spent in low-income communities to reduce job losses.
_________________

First off, I thought the first stimulus was for Main Street????

OOPS! It was supposed to be for creating jobs, but it was instead used to pay off democratic constituencies...now they want a second chance at the old job creation thing.

And how,exactly, will spending money in low income communities create jobs????? These communities are bastions of hands held out for decades...they know no other way, so haven't "learned to fish" for themselves....

Posted by: boosterprez | December 11, 2009 5:00 PM | Report abuse

2010!!!!!!!!!!!!!!!!!!!!

Posted by: askgees | December 11, 2009 5:39 PM | Report abuse

All of you are bungholes!!! A class bungholes!!! Where was your outrage when idiot george spent this country into penury? Where was your outrage when idiot george saddled his successor with 2 stupid wars? Where was your outrage when idiot george turned the budget surplus he inherited from Bill Clinton into a deficit? You are all a bunch of bungholes!!! Ras bumboclaat!!

__________________________________________

Bungholes? You must be a DNC leader or something.

And even Bush never created a $1.6 trillion budget deficit. That one belongs to your beloved Democratic Party.

Doofus.

Posted by: RobParker | December 11, 2009 5:41 PM | Report abuse

Truthtime wrote>>>Where were they when Reagan/Bush I quadrupled the debt from $1 trillion to $4T? Or when Bush II added another $4T?
But now, when the economy and Main street need it most, the GOP says pay down the debt.


Republicans have very SHORT memories.
But since most of them watch Faux News, your info is probably new to them.

Posted by: angie12106 | December 11, 2009 5:44 PM | Report abuse

RobParker wrote>>>And even Bush never created a $1.6 trillion budget deficit.

You're WRONG!
Obama inherited a $1.3 TRILLION deficit!
What? Limbaugh and Hannity didn't tell ya?


Posted by: angie12106 | December 11, 2009 5:48 PM | Report abuse

Peter Schiff, who predicted the subprime crisis and meltdown, has predicted that the dollar will become worthless in the next few years unless the government changes it's ways. The USA needs to quit the deficit spending now and balance the budget. I don't care if you are a democrat, republican or independent, we need to quit the deficit spending and balance the budget asap.

Posted by: charlietuna666 | December 11, 2009 7:49 PM | Report abuse

The left over money should have been returned to the taxpayers of this country. But this would be unimaginable for Democrats in Congress, eager to spend every dollar they can to boost their reelection chances.

Expect mini-stimulus IV in 2010 and V in 2011 or early 2012 to help reelect Obama and more Democrats.

Posted by: Aprogressiveindependent | December 11, 2009 9:07 PM | Report abuse

Obamaland vs THE USA

TEA PARTY REVOLT will not fund or support Obamaland.

The use of US Military as hostages to tack on money to troop funding bills is only funding a quagmire.

NO means NO is apparently over 99.99% of the USA now.

Posted by: dottydo | December 11, 2009 9:43 PM | Report abuse

You're WRONG!
Obama inherited a $1.3 TRILLION deficit!
What? Limbaugh and Hannity didn't tell ya?


Posted by: angie12106


Obama's talking head called the clear shot over the bow of the USA by Obamaland, when Chris Matthews called WEST POINT " the enemy camp"

Now people enmasse want to join the original Community organizers the Freemasons where peers are not liars and cheaters but are

Sylvanus Thayer, - Freemason Father of the U. S. Military Academy - West Point

James Otis, - American Revolutionary politician , Freemason and publicist who said "Taxation without Representation is Tyranny"

George Washington, Ben Franklin, etc.

http://www.masonicinfo.com/famous2.htm#T


Is the place to find better people to represent us.

Posted by: dottydo | December 11, 2009 9:53 PM | Report abuse

angie12106,

Obama inherited a $1.3 TRILLION deficit!


And he turned it into a $1.5 TRILLION deficit in only 12 months.

So, Obama, after running for office on promises of ending the war, reducing the debt, and increase job creation, in his first year, he has widened the war, increased the deficit by $200 Billion, and lost more than 5.1 million jobs. At this rate by the end of 4 years the deficit will be over $2 Trillion, the war will be expanded into China and the entire country will be unemployed.

Posted by: jonweiss1 | December 12, 2009 3:56 PM | Report abuse

Obama said. "I will NOT sign a Bill that raises the deficit ONE DIME....".

So now, I am waiting for Obama to veto the raising of the debt ceiling.

Anyone else buying that pantload?

Posted by: jonweiss1 | December 12, 2009 4:12 PM | Report abuse

The comments to this entry are closed.

 
 
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