Baca Sponsors Legislation To Use TARP Funds To Assist Struggling Americans

Press Release

Today, Congressman Joe Baca (D-Rialto) introduced legislation designed to help Americans struggling to find work by investing newly returned TARP dollars into employment and training programs for unemployed workers. The Federal Bailout for American Individuals and Families in Distress Today and Tomorrow Act transfers $10 billion in bank repaid funds, authorized by the Emergency Economic Stabilization Act of 2008, from the Treasury to the Secretaries of Labor and Health and Human Services in order to fund additional adult employment and training programs, migrant and seasonal worker programs, and training programs for workers displaced by trade agreements.

"Last year, the American taxpayer came to the rescue of Wall Street when our economy was on the verge of collapse," said Rep. Baca. "Now that banks and others are starting to repay this emergency funding, it is only right that it be used to help struggling Americans and their families get back on their feet. With unemployment in the Inland Empire above 14%, we must focus on job creation opportunities. We cannot rest until the folks on Main Street have experienced a full economic recovery. "

The Federal Bailout for American Individuals and Families in Distress Today and Tomorrow Act mandates that the President use amounts repaid to the Treasury under the Troubled Asset Relief Program (TARP) to assist displaced and low-wage workers. Specifically, the bill will take $10 billion of repaid dollars and make the funds available to the Secretary of Labor and to the Secretary of Health and Human Services. Over $116 billion of TARP funds have already been repaid by financial institutions, and the Treasury expects $175 billion of TARP funds to have been returned by the end of 2010.

The legislation requires that the Secretary of Labor spend repaid TARP funds in the following amounts:

* $2 billion in grant funding to states for adult employment and training activities;
* $2 billion in funding for Migrant and Seasonal Farmworker Programs; and
* $4 billion in funding for employment and training programs assisting those workers who have been displaced by the outsourcing of jobs to foreign countries.

The bill also requires that the Secretary of Health and Human Services spend an additional $2 billion in repaid TARP funds to increase funding for the Temporary Assistance for Needy Families (TANF) Program. TANF provides temporary financial assistance to unemployed families while focusing on helping individuals find new employment opportunities.

"During this time of economic hardship, we have a moral imperative to assist struggling American individuals and families," concluded Rep. Baca. "While I support the jobs initiative put forth by my colleagues in the House of Representatives, we must continue to put all resources necessary into strengthening job creation and training programs. This significant measure can help to provide more unemployed workers with the skills necessary to find work in our changing economy, and lend a helping hand to those currently struggling to find work."

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