President-elect Barack Obama is stepping up his lobbying blitz on Senate Democrats in an effort to win the release of the second half of the $700 billion financial industry bailout fund, as a resolution that would block the funding was introduced in the chamber.
One day after the Bush administration officially asked for release of the remaining $350 billion for the Troubled Asset Relief Program (TARP), at Obama’s request, the president-elect headed to Capitol Hill to push for the funds. During a meeting with Senate Democrats at their weekly luncheon, Obama planned to stress that there will be new restrictions on how the Treasury Department can allocate the remaining funds.
He is continuing a push that began Monday with phone calls to senators on both sides of the aisle touting his plan to make changes in the bailout program (PL 110-343). There has been widespread anger in Congress over how the Bush administration has used the funds — primarily to recapitalize banks and other financial institutions. Lawmakers on both sides of the aisle want Treasury to focus more on helping struggling homeowners and businesses, and they are demanding stronger accountability for how the money is spent.
The republicans are wary and that's a good thing -- this money must be properly spent and accounted for:
“So far the incoming administration has not said whether it plans to limit the funds to their original purpose or to expand their use to help specific industries,” Senate Minority Leader Mitch McConnell , R-Ky., said on the floor Tuesday. “The taxpayers are eager to hear the new administration’s plan, and so are Republicans in Congress. We’ll hear from the incoming administration soon, we’ll be happy to listen. They’ll have a receptive, albeit cautious, audience.”
Sen. Orrin G. Hatch , R-Utah, described broad dissatisfaction with the way the first $350 billion was spent. While saying he hadn’t decided yet how he’ll vote on releasing the remaining funds, he expects the second installment to be approved.
“There has been a lot of upset about that,” Hatch said. “I haven’t made up my mind about it. I suspect that it will pass.”
Read all about it at CQ Politics.
