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Public Statements

U.S. House Approves Measure to End Controversial Loan Program Created by Failed Stimulus

Press Release

Location: Washington, DC

The U.S. House of Representatives voted Friday to terminate a controversial loan guarantee program created as part of the failed 2009 stimulus law. The "No More Solyndras Act" would prevent the federal government from making loan guarantees like the one to bankrupted energy company Solyndra, which left taxpayers on the hook for $535 million.

Iowa Congressman Tom Latham, an original cosponsor of the legislation who also voted against the failed stimulus that created the program, cast a yes vote and reiterated his commitment to protecting taxpaying citizens from government gambles.

"I understand the belief that government ought to do something to help American businesses succeed, but allowing freewheeling, unaccountable bureaucrats to gamble billions of taxpayer dollars on certain companies is definitely not the way to do it," Congressman Latham said. "Government should not be in the business of picking winners and losers, but the loan guarantee program created as part of the failed stimulus allows the Administration to place risky bets on one company over the other. The No More Solyndras Act, which I proudly cosponsored upon its introduction in the House, is a necessary step toward empowering the private sector over Washington."

In addition ending the loan guarantee program, the No More Solyndras Act would enforce new accountability standards for applications that have already been accepted under the program.

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