Inglis Outraged Over Obama Administration Plans To Spend TARP Repayment Funds On New Programs

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Inglis Outraged Over Obama Administration Plans To Spend TARP Repayment Funds On New Programs

U.S. Rep. Bob Inglis (R-SC) expressed outrage this evening over the Obama administration's support for spending interest accrued from the Troubled Asset Relief Program (TARP) repayment from banks to create new government programs for homeowners.

"After running to the rescue to save the financial industry from collapse, I couldn't think of a worse idea," Inglis said. "This is a horrible idea that would take the repayment of borrowed TARP money and spend it again on a new program. This $6.5 billion belongs to taxpayers and must be used to repay the deficit where it was borrowed in the first place."

The Obama administration was reported Thursday to support using dividends paid by banks using TARP money for a new housing program to help homeowners avoid foreclosure or obtain affordable housing.

According to the report, the proposal would shift approximately $6.5 billion in TARP repayment funds to programs aimed at helping struggling homeowners and low-income renters, including the National Affordable Housing Trust Fund and the Neighborhood Stabilization Program.

"Are these people insistent on redistributing wealth? I think maybe so," Inglis sad. "They want to take money that should be going to all taxpayers to repay the debt and instead spend it on a few select groups they want to favor."

Republicans have argued that recycling TARP funds to pay for a new housing plan would violate the Constitution by circumventing the appropriations process.

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