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Ryan: Tapping the TARP Sets Dangerous Precedent
WASHINGTON – Wisconsin's 1st District Congressman Paul Ryan expressed his disappointment in the White House's decision to divert funds from the financial rescue package for domestic auto manufacturers after the Senate's failure to agree on a more fiscally responsible package. Earlier today, President Bush announced that the Troubled Assets Relief Program (TARP) will be used to allocate $13.4 billion to assist domestic auto manufacturers, with the potential for billions of dollars more in the near term.
The break down of negotiations in the U.S. Senate last week followed the passage of H.R 7321, "The Auto Industry Financing and Restructuring Act," in the U.S. House of Representatives. H.R. 7321 would have expedited to domestic auto manufacturers a previously appropriated U.S. Department of Energy loan program. Following this morning’s announcement from the White House, Congressman Ryan released the following statement:
"As I've consistently argued, assistance for the domestic auto industry should come from funds that have already been appropriated. Last week, I voted for a bill that did just that: H.R. 7321 cut the bureaucratic red tape from previously approved funds, rather than divert resources from the financial rescue package or rely on additional taxpayer dollars.
"I am deeply troubled by the precedent set by expanding the TARP into areas beyond its original intent. It was made clear to me two weeks ago that if the Energy Department funds were not released, they would be granting access to TARP funds for the auto companies. These were among the reasons why I supported expediting funds from the Department of Energy loan program. Allowing the Big Three to access funds from the financial rescue package creates a dangerous precedent for other corporations to lay claim to TARP funds. My concerns remain focused on retirees, workers, and families in Southern Wisconsin, but this form of assistance is the wrong way to go.”
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Contact: Conor Sweeney (202)
226-7326
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