US Sen. Thune’s amendment seeks to end TARP, require that paybacks retire national debt

US Sen. Thune’s amendment seeks to end TARP

SIOUX FALLS, S.D. — South Dakota Sen. John Thune wants to end the Troubled Asset Relief Program that bailed out banks, automakers and other financial firms and require that paid-back funds be used to retire debt.

Thune’s measure introduced Thursday is an amendment to a bill that would raise the debt ceiling to $14.3 trillion. It would prohibit the Treasury Department from making any further commitments of funds to the bank and Wall Street bailout.

The Republican senator says Congress needs to start taking on the issue of spending and debt, and ending TARP would be a significant step forward.

Thune says he worries that TARP, which bailed out banks, automakers and other financial firms, could become a permanent slush fund unless the money is marked for deficit reduction.