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Congresswoman Virginia Foxx (NC-05) today called on Congress to adhere to the 2008 bailout law and not use uncommitted or returned bailout funds for a second stimulus.  Democrat leaders in Washington are discussing the use of bailout funds to finance another round of stimulus spending. 

“Last fall’s megabank bailout was a terrible idea, which is why I voted against it,” Foxx said. “Now, as if the Wall Street bailout wasn’t bad enough, big-spending Washington   liberals want to use what’s left of the $700 billion bailout and try their hands at a second stimulus.  Not only is this a bad idea, it’s not legal.”

According to the law creating the $700 billion bank bailout, all unused bailout funds must be put towards reducing the national debt.  It is estimated that approximately $200 billion may be returned or left over from the original $700 billion. 

“The only thing the bailout law got right was the plan to return unused money to the taxpayers by way of debt reduction,” Foxx said.  “Now the American people may see their money recycled into the next experiment in big government.  Didn’t we learn a lesson from the last failed stimulus experiment, which cost taxpayers $787 billion?”

“If we are going to return to an era of economic growth and strength we must rein in Washington’s runaway spending.  We can start by using what’s left of the bailout to reduce our record $12 trillion national debt.  But Washington has no business using taxpayer dollars to turn the bailout into a stimulus slush fund.”

Note: Foxx voted against the $700 billion bank bailout of October 2008.  She also authored a bill to stop the second half of the bailout from being spent.  This bill passed the House by a wide bipartisan vote, but was not adopted by the Senate.