The following is from a press release from NC Congresswoman Virginia Foxx.
Foxx re-introduces measure to cut bailout funds by half
Legislation will deny second half of $700 billion government bailout
Washington, DC—Congresswoman Virginia Foxx (NC-05) today re-introduced bipartisan legislation for the 111th Congress to deny authorization of the second half of the 2008 $700 billion federal government bailout. The legislation is designed to take advantage of a provision in the 2008 bailout law that allows Congress to “disapprove” of the second half of the bailout.
“In the days since I first voted against the bailout last year the $700 billion of taxpayer money has turned into a giant political slush fund,” 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 half of the bailout. This is taxpayers’ money we’re talking about.”
According to the 2008 bailout law, Congress has the power to withhold the second half of the bailout—$350 billion—when the President requests the money. Foxx’s legislation does just that. Thanks to the way the bailout law was written, Foxx’s measure must be considered by Congress within five days of when the White House requests the second half of the bailout cash.
The federal government had already doled out most of the first half of the bailout money—including nearly $18 billion for bailing out Detroit automakers in December.
During the distribution of the first $350 billion of the bailout the independent oversight required by the bailout law was virtually non-existent and the progress reports to Congress detailing where the bailout money was flowing were chronically late.
“Today we’re hearing about bailouts for everyone ranging from life insurance and credit card companies to automakers and state governments,” Foxx said. “Where does it stop and what about the hardworking taxpayers? I believe that this legislation is one of our last best hopes to rein in the endless bailouts.”