WASHINGTON The Bush administration has told top lawmakers it does not plan to use at least half of the $700 billion bailout fund that Congress approved this fall to aid the financial industry, congressional officials said Monday.
WASHINGTON The Bush administration has told top lawmakers it does not plan to use at least half of the $700 billion bailout fund that Congress approved this fall to aid the financial industry, congressional officials said Monday. These officials said Treasury Secretary Henry Paulson passed the word over the weekend that he intends to leave $350 billion untouched when the administration leaves office on Jan. 20. That would mean the incoming Obama administration would decide whether and how the funds should be spent. The disclosure comes at a time when Democrats are working to pass emergency legislation to spend $25 billion of the bailout money to provide loans to the battered auto industry. These officials spoke on condition of anonymity, saying they were not authorized to disclose the developments. White House spokesman Tony Fratto neither confirmed nor disputed their account, adding that any decision about the use of the remaining $350 billion was up to Treasury Secretary Henry Paulson. "He said he’s working to continue to design and develop programs, and when it’s the right time to use them, Treasury will announce it. And if it then makes sense to go to Congress, he’ll recommend we request to draw down the second $350 billion," Fratto said. AP ______ Copyright 2008 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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