Friday, November 21, 2008

Foxx Introduces Legislation On Bailout

The following is from a press release from NC Congresswoman Virginia Foxx.

Foxx introduces measure to cut bailout funds by half
Legislation will restrict second payment of $350 billion government bailout

Washington, DC—Congresswoman Virginia Foxx has introduced legislation that denies authorization of the second half of the $700 billion federal government bailout. The legislation (H.J. Res 101) is designed to take advantage of a provision in the bailout law that allows Congress to “disapprove” of the second half of the bailout.

“The American people were sold a false bill of goods with this $700 billion bailout,” Rep. Foxx said. “Not only did the administration completely change course in its use of bailout money, but there has been absolutely no oversight of the first $290 billion of spending. This is taxpayers’ money we’re talking about.”

Last week the Washington Post reported that the federal government had already doled out $290 billion of the bailout money. The Post also found that the independent oversight required by the bailout law is virtually non-existent and the progress report to Congress detailing where the bailout money is flowing is already late.

According to the new bailout law, Congress can withhold the second half of the bailout—$350 billion—when the President in office requests the money. Foxx’s legislation does just that. Thanks to the way the bailout was written, by law this measure must be considered by Congress within five days of when the White House requests the balance of the bailout cash.

“As the Treasury Department throws its weight around the economy, we’re hearing talk of bailouts for everyone ranging from life insurance and credit card companies to automakers and state governments,” Foxx said. “Where does it stop?”

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