GOP senators are not optimistic about effort to end TARP
The measure, which Republicans hope to attach to bill raising the debt ceiling, would end bailout program on Dec. 31.
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.