U.S. Senator for the State of Nebraska
Today, U.S. Senator Mike Johanns made the following statement after he voted in favor of a resolution of disapproval regarding releasing the remaining $350 billion in Trouble Asset Relief Program (TARP) funds:
"Last fall, Congress agreed to provide the Treasury Department with a total of $700 billion to help stabilize our economy. The bill made $350 billion immediately available for use and the remaining funds available for use by a vote of Congress. Today, $350 billion of the funds have been spent and the request to use the additional funds is now before the U.S. Senate.
"When TARP was initially passed, Congress was told that the funds were to be used to buy toxic assets. However, a few weeks after enactment, the Treasury Department announced they were fundamentally changing the plan to instead inject capital directly into troubled financial institutions. Soon thereafter, nearly $25 billion dollars of TARP funds were set aside to temporarily bail out the auto industry. With these changes, accountability, transparency, and taxpayer protections began to erode.
"The American people deserve a detailed and transparent plan specifically outlining how the remaining funds will be used and also a commitment that the funds will not be used for unrelated spending projects and industry specific bailouts. Yet, no such plan exists. As a result, I have serious concerns and could not vote in favor of releasing another $350 billion of taxpayer dollars.
"I realize the economic situation we face is serious, and it's having a real impact on families across our country. I am committed to working with my colleagues as well as the new Administration towards solutions. I cannot support adding hundreds of billions of dollars to our debt with no clear guidelines as to how the money will be spent or assurance that that it will be a wise use of taxpayer dollars."
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