On the WashingtonWatch.com Blog

Last week, WashingtonWatch.com welcomed its 1,000,000th visitor for the year.

Featured Items

Congress returned for a lame-duck session last week, planning to consider an economic stimulus plan, but consensus did not come together.

An economic stimulus bill was introduced in the Senate. S. 3689, the Economic Recovery Act of 2008 proposed to spend about $750 per U.S. family on various programs thought to stimulate the economy.

These included funding for highways and other transportation, energy programs, school renovation, and clean water. The bill would also have increased Medicaid payments to states.

This bill also included an extension of unemployment benefits. When it did not pass, Congress passed a freestanding extension, which the president signed.

No cost estimate is yet available for Public Law 110-449, the Unemployment Compensation Extension Act of 2008. The new law extends unemployment benefits by at least seven weeks in every state, and by 13 weeks in states with unemployment rates of at least 6%.

S. 3689
The Economic Recovery Act of 2008
Costs $766.21 per family

P.L. 110-449
The Unemployment Compensation Extension Act of 2008

What People Think

The Economic Recovery Act of 2008 33% For, 67% Against Vote on this Bill

The Unemployment Compensation Extension Act of 2008 45% For, 55% Against Vote on this Bill

Displayed below are new, updated, and passed items with their cost or savings per family.

New Items

H.R. 4854
The False Claims Act Correction Act of 2007
Costs $0.00 per family

H.R. 7112
The Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2008
Costs $4.68 per family

S. 3689
The Economic Recovery Act of 2008
Costs $766.21 per family

Updated Items

P.L. 110-428
The Inmate Tax Fraud Prevention Act of 2008
Costs $0.03 per family

Passed Items

P.L. 110-449
The Unemployment Compensation Extension Act of 2008

On the WashingtonWatch.com Blog

Congress is likely to take up an economic stimulus package when it returns for a lame-duck session this week. The American people should get a look at the plan before Congress passes it, says a WashingtonWatch.com blog post titled, “Let’s Get the Actual Terms of the Economic Stimulus Plan.”

Featured Items

A likely candidate for inclusion in this week’s economic stimulus bill is an extension of unemployment benefits. One of the current bills to extend unemployment benefits is H.R. 6867, the Unemployment Compensation Extension Act of 2008. No cost estimate is available for the bill.

Another candidate for the stimulus package is infrastructure spending. Ideally, it creates jobs over the short run (at the cost of new debt) and enables greater economic productivity over the long run.

Infrastructure spending must be well directed, however. In August 2007, Congress spent $250 million to repair the I-35 bridge in Minneapolis, at a cost of about $130,000 per foot. This is more than three times the cost-per-foot of Alaska’s infamous “Bridge to Nowhere.” Public Law 110-56 spent a little over $2.50 for every family in the United States.

H.R. 6867
The Unemployment Compensation Extension Act of 2008

P.L. 110-56
To authorize additional funds for emergency repairs and reconstruction of the Interstate I-35 bridge located in Minneapolis, Minnesota, that collapsed on August 1, 2007, to waive the $100,000,000 limitation on emergency relief funds for those emergency repairs and reconstruction, and for other purposes
Costs $2.55 per family

What People Think

The Unemployment Compensation Extension Act of 2008 44% For, 56% Against Vote on this Bill

P.L. 110-56 37% For, 63% Against Vote on this Bill

Displayed below are new, updated, and passed items with their cost or savings per family.

New Items

S. 3426
The Foreign Service Overseas Pay Equity Act of 2008
Costs $11.03 per family

Updated Items

S. 1193
The Albuquerque Indian School Act
Costs $54.85 per family

Passed Items

none

On the WashingtonWatch.com Blog

Congress is likely to take up an economic stimulus package when it returns for a lame-duck session next week. Among the candidates for stimulus spending, the WashingtonWatch.com blog asks, Will Broadband Be in the Stimulus Package?

Featured Items

President-Elect Barack Obama announced at his first press conference last week that he wanted to see an economic stimulus package passed either later this year or early in his term come January.

The stimulus package passed in February (shown at right) included rebate checks to taxpayers, returning about $540 per family on average (and increasing each family’s share of the national debt that much).

But it may not have been all that stimulative. Martin Feldstein, chairman of the Council of Economic Advisers under President Reagan, recently wrote in the Wall Street Journal that only 15% of the stimulus money went to new spending.

A likely candidate for inclusion in the coming stimulus package is an extension of unemployment benefits. One of the current bills to extend unemployment benefits is H.R. 6867, the Unemployment Compensation Extension Act of 2008. No cost estimate for the bill is available.

The most recent extension of unemployment benefits in June was wrapped into a large spending bill. That bill cost about $2,800 per U.S. family.

P.L. 110-185
The Recovery Rebates and Economic Stimulus for the American People Act of 2008
Saves $540.20 per family

H.R. 6867
The Unemployment Compensation Extension Act of 2008

What People Think

The Recovery Rebates and Economic Stimulus for the American People Act of 2008 30% For, 70% Against Vote on this Bill

The Unemployment Compensation Extension Act of 2008 65% For, 35% Against Vote on this Bill

Displayed below are new, updated, and passed items with their cost or savings per family.

New Items

S. 2842
The Aging Water Infrastructure and Maintenance Act
Costs $1.74 per family

S. 2974
The Arkansas Valley Conduit Act of 2008
Costs $0.00 per family

Updated Items

none

Passed Items

none

On the WashingtonWatch.com Blog

Just two weeks after the passage of the bailout bill, and one day after a Treasury Department official declared, “we are committed to transparency and oversight in all aspects of the program,” the Treasury Department began covering up the amount it would pay to New York Mellon Bank for acting as a financial agent in the bailout. Read about it on the WashingtonWatch.com blog.

Featured Items

Congress has adjourned until January, but leaders may call the membership back to take care of unfinished business later this year. While the lawmaking takes a break, a couple of bills relating to veterans are worth taking a look at.

In late September, the Veterans’ Compensation Cost-of-Living Adjustment Act became law. It increases veterans’ disability compensation and their survivors’ dependency and indemnity compensation by the same cost-of-living adjustment payable to Social Security recipients. This new veterans benefits law costs just under $375 per U.S. family.

Another veterans bill, subject of a new cost estimate last week, is H.R. 1222, the Keep Our Promise to America’s Military Retirees Act.

The bill would would allow military retirees, their dependents, and survivors to enroll in the Federal Employees Health Benefits program, giving up their eligibility to use their military health insurance (TRICARE). Total cost to the average U.S. family would be a bit over $70. It’s unclear if H.R. 1222 will pass, but it’s interesting to watch how veterans’ benefits are on the march.

P.L. 110-324
The Veterans’ Compensation Cost-of-Living Adjustment Act of 2008
Costs $373.90 per family

H.R. 1222
The Keep Our Promise to America’s Military Retirees Act
Costs $72.47 per family

What People Think

The Veterans’ Compensation Cost-of-Living Adjustment Act of 2008 52% For, 48% Against Vote on this Bill

The Keep Our Promise to America’s Military Retirees Act 84% For, 16% Against Vote on this Bill

Displayed below are new, updated, and passed items with their cost or savings per family.

New Items

H.R. 6707
The Taking Responsible Action for Community Safety Act
Costs $0.32 per family

H.R. 1222
The Keep Our Promise to America’s Military Retirees Act
Costs $72.47 per family

H.R. 6853
The Nationwide Mortgage Fraud Task Force Act of 2008
Costs $0.00 per family

S. 1756
The Republic of the Marshall Islands Supplemental Nuclear Compensation Act of 2007
Costs $0.45 per family

S. 2052
The Equal Justice for United States Military Personnel Act of 2007
Costs $0.16 per family

S. 3189
The Endangered Fish Recovery Programs Improvement Act of 2008
Costs $0.33 per family

S. 1080
The Crow Tribe Land Restoration Act
Costs $0.29 per family

Updated Items

P.L. 110-324
The Veterans’ Compensation Cost-of-Living Adjustment Act of 2008
Costs $373.90 per family

Passed Items

P.L. 110-437
The Capitol Visitor Center Act of 2008
Costs $1.49 per family

P.L. 110-438
The National Guard and Reservists Debt Relief Act of 2008
Costs $0.00 per family

On the WashingtonWatch.com Blog

In each of the debates, Senators McCain and Obama have been asked what programs they would prioritize or cut given the large existing deficit and the weakening economy. Both have largely refused to talk about scaling back their spending plans. How they would both grow the debt is discussed on the WashingtonWatch.com blog.

Featured Items

Congress has adjourned until January, but leaders may call the membership back to take care of unfinished business later this year.

Numerous bills have been passed into law in the last few weeks. The WashingtonWatch.com blog features many of them here, here, and here.

Among the new laws is the National Aeronautics and Space Administration Authorization Act of 2008, which is now Public Law 110-422.

The law authorizes fiscal year 2009 spending on the National Aeronautics and Space Administration for science, aeronautics, exploration, and education.

The cost of the law is about $200 per U.S. family.

Another new law is the Health Centers Renewal Act, Public Law 110-355. The law amends the Public Health Service Act to authorize and spend money on a program that provides funding for community health centers.

The law costs the average U.S. family about $100.

P.L. 110-422
The National Aeronautics and Space Administration Authorization Act of 2008
Costs $200.57 per family

P.L. 110-355
The Health Centers Renewal Act of 2007
Costs $107.08 per family

What People Think

The National Aeronautics and Space Administration Authorization Act of 2008 50% For, 50% Against Vote on this Bill

The Health Centers Renewal Act of 2007 25% For, 75% Against Vote on this Bill

Displayed below are new, updated, and passed items with their cost or savings per family.

New Items

S. 2779
A bill to amend the Surface Mining Control and Reclamation Act of 1977 to clarify that uncertified States and Indian tribes have the authority to use certain payments for certain noncoal reclamation projects
Costs $0.00 per family

S. 2609
The Global Service Fellowship Program Act of 2008
Costs $0.42 per family

H.R. 1014
The Heart Disease Education, Analysis Research, and Treatment for Women Act
Costs $1.60 per family

S. 3065
The Dominguez-Escalante National Conservation Area and Dominguez Canyon Wilderness Area Act
Costs $0.00 per family

S. 3499
An original bill to protect innocent Americans from violent crime in national parks
Costs $0.00 per family

H.R. 642
The College Fire Prevention Act
Costs $3.10 per family

S. 2805
The Rio Grande Pueblos Irrigation Infrastructure Improvement Act
Costs $0.21 per family

P.L. 110-369
The United States-India Nuclear Cooperation Approval and Nonproliferation Enhancement Act
Costs $0.00 per family

S. 3085
The Cooperative Watershed Management Act of 2008
Costs $0.37 per family

H.R. 6658
The Disaster Response, Recovery, and Mitigation Enhancement Act of 2008
Costs $11.32 per family

S. 3010
The Route 66 Corridor Preservation Program Reauthorization Act
Costs $0.06 per family

S. 3194
The Oregon Surplus Federal Land Act of 2008
Costs $0.00 per family

S. 3662
The Implementing the Controlled Unclassified Information Framework Act of 2008
Costs $0.58 per family

H.R. 813
The Santa Ana River Water Supply Enhancement Act of 2007
Costs $0.27 per family

H.R. 1139
The Riverside-Corona Feeder Water Supply Act
Costs $0.20 per family

S. 2535
The Martin Van Buren National Historic Site Boundary Revision Act
Costs $0.01 per family

S. 3069
The Eastern Sierra and Northern San Gabriel Wild Heritage Act
Costs $0.09 per family

Updated Items

P.L. 110-389
The Veterans’ Notice Clarification Act of 2008
Saves $0.11 per family

H.R. 1943
The Stop AIDS in Prison Act of 2007
Costs $0.16 per family

P.L. 110-293
The Tom Lantos and Henry J. Hyde United States Global Leadership Against HIV/AIDS, Tuberculosis, and Malaria Reauthorization Act of 2008
Costs $1.28 per family

P.L. 110-417
The National Defense Authorization Act for Fiscal Year 2009
Costs $0.27 per family

Passed Items

P.L. 110-383
The Pechanga Band of Luiseno Mission Indians Land Transfer Act of 2007

P.L. 110-384
The Let Our Veterans Rest in Peace Act of 2007
Costs $0.00 per family

P.L. 110-385
The Broadband Data Improvement Act
Costs $1.94 per family

P.L. 110-386
The Hydrographic Services Improvement Act Amendments of 2007
Costs $7.63 per family

P.L. 110-387
The Mental Health Improvements Act of 2007
Costs $8.06 per family

P.L. 110-388
A bill to provide for the appointment of the Chief Human Capital Officer of the Department of Homeland Security by the Secretary of Homeland Security
Costs $0.00 per family

P.L. 110-389
The Veterans’ Notice Clarification Act of 2008
Costs $1.24 per family

P.L. 110-390
The White Mountain Apache Tribe Rural Water System Loan Authorization Act

P.L. 110-391
The Special Immigrant Nonminister Religious Worker Program Act

P.L. 110-392
The Comprehensive Tuberculosis Elimination Act of 2007
Costs $11.94 per family

P.L. 110-393
To authorize the Secretary of Commerce to sell or exchange certain National Oceanic and Atmospheric Administration property located in Norfolk, Virginia, and for other purposes
Costs $0.00 per family

P.L. 110-394
The National Sea Grant College Program Amendments Act of 2008
Costs $2.81 per family

P.L. 110-398
To amend the commodity provisions of the Food, Conservation, and Energy Act of 2008 to permit producers to aggregate base acres and reconstitute farms to avoid the prohibition on receiving direct payments, counter-cyclical payments, or average crop revenue election payments when the sum of the base acres of a farm is 10 acres or less, and for other purposes
Costs $0.01 per family

P.L. 110-400
The Keeping the Internet Devoid of Sexual Predators Act of 2007
Costs $0.00 per family

P.L. 110-401
The Combating Child Exploitation Act of 2007
Costs $5.13 per family

P.L. 110-402
A bill to extend the authority of the United States Supreme Court Police to protect court officials off the Supreme Court Grounds and change the title of the Administrative Assistant to the Chief Justice
Costs $0.00 per family

P.L. 110-403
The Enforcement of Intellectual Property Rights Act of 2008
Costs $3.83 per family

P.L. 110-404
The Presidential Historical Records Preservation Act of 2008

P.L. 110-405
The Air Carriage of International Mail Act

P.L. 110-406
The Judicial Administration and Technical Amendments Act of 2008

P.L. 110-407
The Drug Trafficking Vessel Interdiction Act of 2008

P.L. 110-408
The Criminal History Background Checks Pilot Extension Act of 2008

P.L. 110-409
The Improving Government Accountability Act
Costs $0.70 per family

P.L. 110-411
The Native American Housing Assistance and Self-Determination Reauthorization Act of 2007
Costs $21.27 per family

P.L. 110-412
The Personnel Reimbursement for Intelligence Cooperation and Enhancement of Homeland Security Act
Costs $0.00 per family

P.L. 110-413
The Stephanie Tubbs Jones Gift of Life Medal Act of 2008

P.L. 110-414
The Mercury Market Minimization Act of 2007
Costs $0.04 per family

P.L. 110-415
The Methamphetamine Production Prevention Act of 2007
Costs $0.00 per family

P.L. 110-416
The Mentally Ill Offender Treatment and Crime Reduction Reauthorization and Improvement Act of 2007
Costs $4.46 per family

P.L. 110-417
The National Defense Authorization Act for Fiscal Year 2009
Costs $0.27 per family

P.L. 110-419
To clarify the boundaries of Coastal Barrier Resources System Clam Pass Unit FL-64P

P.L. 110-420
The Code Talkers Recognition Act of 2007

P.L. 110-421
The Bulletproof Vest Partnership Grant Act of 2008

P.L. 110-422
The National Aeronautics and Space Administration Authorization Act of 2008
Costs $200.57 per family

P.L. 110-423
To provide that Federal employees receiving their pay by electronic funds transfer shall be given the option of receiving their pay stubs electronically
Costs $0.00 per family

P.L. 110-424
To authorize funding for the National Advocacy Center
Costs $0.26 per family

P.L. 110-425
The Ryan Haight Online Pharmacy Consumer Protection Act of 2008
Costs $0.17 per family

P.L. 110-426
The Organ Transplant Authorization Act of 2008

P.L. 110-427
To authorize the Administrator of General Services to take certain actions with respect to parcels of real property located in Eastlake, Ohio, and Koochiching County, Minnesota, and for other purposes
Costs $0.00 per family

P.L. 110-428
The Inmate Tax Fraud Prevention Act of 2008
Costs $0.01 per family

P.L. 110-429
To authorize the transfer of naval vessels to certain foreign recipients, and for other purposes

P.L. 110-431
A bill to authorize funding for the National Crime Victim Law Institute to provide support for victims of crime under Crime Victims Legal Assistance Programs as a part of the Victims of Crime Act of 1984

P.L. 110-432
The Federal Railroad Safety Improvement Act of 2007
Costs $11.59 per family

P.L. 110-433
To extend through 2013 the authority of the Federal Election Commission to impose civil money penalties on the basis of a schedule of penalties established and published by the Commission

P.L. 110-434
The Vessel Hull Design Protection Amendments of 2008

P.L. 110-435
The Webcaster Settlement Act of 2008

P.L. 110-436
To extend the Andean Trade Preference Act, and for other purposes

On the WashingtonWatch.com Blog

The $700 billion financial services bailout bill featured last week passed Friday and was signed into law. The Members of Congress who changed their votes to pass it are featured in a WashingtonWatch.com post called “A Bailout Rogues Gallery . . .” See if your representative switched by clicking here.

Featured Items

The Emergency Economic Stabilization Act of 2008 is the official name of the financial services bailout legislation. Our analysis of government estimates places its cost at about $2,800 per U.S. family.

Last week was hectic. Dozens of bills streamed across the House floor even while it dealt with the financial services bailout and other issues.

Many of these bills were listed in a series of WashingtonWatch.com blog posts called Silly Season on Capitol Hill; Silly Season, Part Deux; Silly Season, Part C; and Silly Season, Part IV.

One of those bills was H.R. 6063, the National Aeronautics and Space Administration Authorization Act of 2008.

The bill would continue the programs of the National Aeronautics and Space Administration at a cost of about $200 per U.S. family.

Congress has adjourned until January, but leaders may call the membership back to take care of unfinished business later this year or early next.

H.R. 1424
The Emergency Economic Stabilization Act of 2008
Costs $2,859.25 per family

H.R. 6063
The National Aeronautics and Space Administration Authorization Act of 2008
Costs $200.80 per family

What People Think

The Emergency Economic Stabilization Act of 2008 39% For, 61% Against Vote on this Bill

The National Aeronautics and Space Administration Authorization Act of 2008 49% For, 51% Against Vote on this Bill

Displayed below are new, updated, and passed items with their cost or savings per family.

New Items

S. 3103
The International Space Station Payments Act of 2008
Costs $2.77 per family

H.R. 7082
The Inmate Tax Fraud Prevention Act of 2008
Costs $0.01 per family

H.R. 903
The Colorado Northern Front Range Mountain Backdrop Protection Study Act
Costs $0.01 per family

S. 1477
The Jackson Gulch Rehabilitation Act of 2007
Costs $0.07 per family

S. 3350
A bill to provide that claims of the United States to certain documents relating to Franklin Delano Roosevelt shall be treated as waived and relinquished in certain circumstances
Costs $0.00 per family

H.R. 838
To provide for the conveyance of the Bureau of Land Management parcels known as the White Acre and Gambel Oak properties and related real property to Park City, Utah, and for other purposes
Costs $0.01 per family

H.R. 1803
The San Diego Water Storage and Efficiency Act of 2007
Costs $0.03 per family

S. 3045
The Kenai Mountains-Turnagain Arm National Forest Heritage Area Act
Costs $0.08 per family

P.L. 110-321
To provide for extensions of certain authorities of the Department of State, and for other purposes
Costs $0.33 per family

S. 3325
The Enforcement of Intellectual Property Rights Act of 2008
Costs $3.85 per family

S. 3501
The OLC Reporting Act of 2008
Costs $0.00 per family

H.R. 7083
The Charity Enhancement Act of 2008
Costs $0.47 per family

H.R. 3022
The Sequoia-Kings Canyon National Park Wilderness Act of 2007
Costs $0.00 per family

S. 3136
The FIND Act
Costs $3.64 per family

S. 3088
The Oregon Badlands Wilderness Act of 2008
Costs $0.00 per family

S. 3089
The Spring Basin Wilderness Act of 2008
Costs $0.00 per family

S. 3096
A bill to amend the National Cave and Karst Research Institute Act of 1998 to authorize appropriations for the National Cave and Karst Research Institute
Costs $0.00 per family

S. 3226
The Abraham Lincoln Birthplace National Historical Park Act of 2008
Costs $0.00 per family

H.R. 6604
The Commodity Markets Transparency and Accountability Act of 2008
Costs $1.67 per family

H.R. 6694
The FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008
Saves $0.13 per family

H.R. 6870
The Payments System Protection Act of 2008
Costs $2.10 per family

H.R. 7174
The James Zadroga 9/11 Health and Compensation Act of 2008
Costs $166.72 per family

S. 3296
A bill to extend the authority of the United States Supreme Court Police to protect court officials off the Supreme Court Grounds and change the title of the Administrative Assistant to the Chief Justice
Costs $0.00 per family

H.R. 6871
The Expedited Funds Availability Dollar Limits Adjustment Act of 2008
Costs $0.00 per family

H.R. 7060
The Renewable Energy and Job Creation Tax Act of 2008
Saves $86.38 per family

H.R. 7006
The Disaster Tax Relief Act of 2008
Saves $74.25 per family

H.R. 7005
The Alternative Minimum Tax Relief Act of 2008
Saves $671.25 per family

Updated Items

H.R. 3971
The Death in Custody Reporting Act of 2007
Costs $0.00 per family

H.R. 2614
To amend the Reclamation Wastewater and Groundwater Study and Facilities Act to authorize the Secretary of the Interior to participate in certain water projects in California
Costs $0.22 per family

H.R. 1424
The Emergency Economic Stabilization Act of 2008
Costs $2,859.25 per family

H.R. 29
To authorize the Secretary of the Interior to construct facilities to provide water for irrigation, municipal, domestic, military, and other uses from the Santa Margarita River, California, and for other purposes
Costs $0.59 per family

H.R. 1737
The City of Oxnard Water Recycling and Desalination Act of 2007
Costs $0.13 per family

H.R. 2632
The Sabinoso Wilderness Act of 2007
Costs $0.00 per family

H.R. 3682
The California Desert and Mountain Heritage Act
Costs $0.00 per family

H.R. 3997
The Emergency Economic Stabilization Act of 2008
Costs $3,728.40 per family

Passed Items

P.L. 110-327
The Need-Based Educational Aid Act of 2007
Costs $0.00 per family

P.L. 110-328
The SSI Extension for Elderly and Disabled Refugees Act
Saves $5.34 per family

P.L. 110-329
The Consolidated Security, Disaster Assistance, and Continuing Appropriations Act, 2009
Costs $332.34 per family

P.L. 110-330
The Federal Aviation Administration Extension Act of 2008, Part II

P.L. 110-335
To amend title 11, District of Columbia Official Code, to implement the increase provided under the District of Columbia Appropriations Act, 2008, in the amount of funds made available for the compensation of attorneys representing indigent defendants in the District of Columbia courts, and for other purposes
Costs $0.32 per family

P.L. 110-336
The Library of Congress Sound Recording and Film Preservation Programs Reauthorization Act of 2008
Costs $0.06 per family

P.L. 110-337
A bill to amend title 49, United States Code, to expand passenger facility fee eligibility for certain noise compatibility projects

P.L. 110-338
The John F. Kennedy Center Reauthorization Act of 2007
Costs $1.38 per family

P.L. 110-339
The Healthy Start Reauthorization Act of 2007
Costs $4.03 per family

P.L. 110-340
The Child Soldiers Accountability Act of 2007
Costs $0.00 per family

P.L. 110-341
A joint resolution to amend Public Law 108-331 to provide for the construction and related activities in support of the Very Energetic Radiation Imaging Telescope Array System (VERITAS) project in Arizona
Costs $0.00 per family

P.L. 110-342
A joint resolution expressing the consent and approval of Congress to an inter-state compact regarding water resources in the Great Lakes - St. Lawrence River Basin

Special Report:
The Financial Services Bailout

With a financial services bailout bill slated for a vote in the House of Representatives as early as the afternoon of Monday, September 29, this special report focuses only on that legislation.

A bill has not been introduced, but a copy of the bill language has been posted on the WashingtonWatch.com blog.

An estimate produced by WashingtonWatch.com puts the spending in this legislation at about $6,500 per U.S. family, or a little over $2,000 per person.

[Please forward this email to those whom it may interest (and not to those whom it won't).]

Troubled Asset Relief Program

The central feature of the bill is the creation of a Troubled Asset Relief Program, or “TARP,” in Section 101. The TARP would exist to “purchase, and to make and fund commitments to purchase, troubled assets from any financial institution, on such terms and conditions as are determined by the Secretary . . . .”

Rules about the operation of the TARP and oversight of it are found in other sections that follow Section 101.

The Secretary of the Treasury would be authorized to spend up to $700 billion on this program.

Congressional Controls?

While the legislation has a great deal more oversight than earlier proposals, spending would likely reach the full $700 billion permitted in the bill.

The major impediment to spending all the money is in Section 115, which is called “Graduated Authorization to Purchase.”

It would immediately grant the Treasury Secretary authority to spend $250 billion. At any time, the President could send a certification to Congress and the spending authority would rise $100 billion more. After that certification, the President would have only to submit a plan to spend yet more and the Secretary’s authority would rise to the full $700 billion.

Only if Congress introduced and passed legislation to stop further spending would it be capped at $350 billion. Congress would almost certainly not pass such legislation, and even if it did the President could veto it, requiring a nearly-impossible-to-reach supermajority in both houses to stop the spe