GOP senators are not optimistic about effort to end TARP

Senate Republicans are hoping to attach a measure ending the Troubled Asset Relief Program to legislation raising the debt limit, but they acknowledge that Senate Majority Leader Harry Reid, D-Nev., will stand firmly in their path.

"The debt limit would be an obvious vehicle," said Sen. John Thune, R-S.D. "My guess is the Democratic leader ... is probably going to block a vote on this."

Thune and 15 GOP co-sponsors on Tuesday introduced the bill, which would block the Treasury Department from spending an estimated $317 billion in unobligated TARP funds and repeal a provision that keeps the program operating until Oct. 2 without congressional consent. The measure would end the bailout program on Dec. 31.

Thune and Sen. Robert Bennett, R-Utah, have already tried to attach the TARP killer to an appropriations bill and to a bill extending unemployment benefits, but they said Reid stopped their efforts. Republicans believe Reid is blocking a vote because Democrats would be hard-pressed to vote to continue the unpopular program.

The debt limit will likely be added to the fiscal 2010 Defense Appropriations bill, a step that may help Democrats block amendments.

Thune and Bennett said Treasury is using TARP money as a "slush fund" and defying congressional intent by reusing money repaid by firms that received funds, based on a questionable legal interpretation. "I consider that a blatant misreading of the law," Bennett said, noting he was present when the bill was written.