Will TARP money be used to aid homeowners and small businesses?
Of the $700 billion from the Troubled Asset Relief Program (TARP) - which bailed out many Wall Street banks earlier this year - there is more than $317 billion yet to be allocated. A number of members of Congress have ideas as to how some of that money might be used.
Rep. Barney Frank (D-Mass.) suggests that $2 billion of TARP money be designated to aid homeowners 
facing foreclosure. Another recommendation comes from Reps. Peter DeFazio (D-Ore.) and Earl Blumenauer (D-Ore.), who are proposing using some of the money for infrastructure projects, which they say in turn would lead to more jobs.
Both of these ideas are in contrast to the Obama administration’s idea of using the money to reduce the national deficit.
Rep. DeFazio feels Congress needs to address national unemployment before dealing with the deficit. Reported in October at 10.2 percent, unemployment is the highest in 26 years. It’s anticipated that it will continue to rise. “The economy and jobs,” are what DeFazio feels should be the focus of lawmakers.
Sen. Mark Warner (D-Va.) has yet another proposal. In keeping with the emphasis on job creation, Warner would like to see $50 billion set aside for funding loans to small businesses. Assisting Warner is Sen. Mark Begich (D-Alaska) who feels banks are not making enough money available to small business owners. “It’s what TARP in theory should have done,” Begich said.
TARP is scheduled to expire at year’s end. With billions of dollars remaining, it is expected that the Treasury Department will extend the program to October 2010. The administration contends that ending TARP prematurely could weaken the nation’s economic recovery.
TALK BACK: What do you think the TARP money should be used for? If not used this year, should the program be extended? Post your comments below.
Posted by Sharon Walker
