Oversight Republicans Challenge Constitutionality of President Obama’s Plan to Re-Direct TARP Funds

WASHINGTON. D.C. – House Committee on Oversight and Government Reform Republicans have sent a letter to President Barack Obama expressing concern over the Administration’s intention to redirect taxpayer money from the Troubled Asset Relief Program (TARP) to pay for new programs.

“We are deeply troubled by your willingness to ignore the clear intent of Congress, which enacted TARP as a temporary measure designed exclusively to stabilize the financial markets,” Committee Republicans wrote.  “Spending billions of dollars on additional wasteful attempts at creating jobs through government projects does not reflect TARP’s original purpose and ignores the will of the people’s representatives in Congress.”

“If you intend to redirect funds in the TARP program for other purposes, the law requires you to come to Congress for authorization,” Oversight Republicans noted.  “The American people deserve a full and fair debate about the wisdom of more “stimulus” spending, not a redirection of their money without the authorization of Congress.  The Constitution, quite simply Mr. President, does not grant your office the power to appropriate in this way.”

The letter was signed by the Committee’s Ranking Member Darrell Issa (R-CA) and Reps. Dan Burton (R-IN), Mark Souder (R-IN), Brian Bilbray (R-CA), Lynn Westmoreland (R-GA), Jason Chaffetz (R-UT),Blaine Luetkemeyer (R-MO), Jeff Flake (R-AZ), and Jim Jordan (R-OH).