Much has been made about our skyrocketing national debt in the past few months. I have written about how troubling our national debt and out-of-control deficit have become. As our nation continues to debate health care and the costs associated with it, we must not forget we have to concentrate on controlling our country’s debt to be able to afford the types of programs that can help hard-working Americans.

I have specifically addressed my distaste for the mismanagement of the Troubled Assets Relief Program known as TARP, a program I strongly opposed. I was not in Congress when the original program was voted on, and I voted against releasing any more funds to this program.

Thousands of banks were bailed out with the $700 billion in taxpayer money. Congress had an obligation to ensure that waste and abuse in the program was nonexistent. We have seen the promises used to sell the TARP program to Members of Congress were misleading.  Congress was assured that when the TARP program turned a profit down the road, those funds would subsequently be used to pay down the national debt.  In addition, it was the intent that any funds being paid back by the bailed out banks would also be applied toward the debt.

Yet, the language in the current law governing the TARP program is vague and has many loopholes. For example, although Treasury says it will apply profits from TARP toward the national debt, as long as the U.S. is running a deficit, those profits will be used as revenue for the general fund.  TARP was simply a $700 billion increase in the debt ceiling, and as long as the debt ceiling is not adjusted for each dollar of TARP money that returns, nothing will change. 

As you may know, I introduced the Repaying the American Taxpayer Act of 2009, H.R. 3020.  This bill closes this loophole by requiring any returning TARP-related funds, be they profit, interest, or a return of unused money, to be applied toward the national debt while simultaneously lowering the debt ceiling dollar for dollar. This way the Treasury cannot simply turn around and borrow more money. 

Recent news reports show the problem continues, and I felt it pertinent to once again emphasize how strongly I feel that this loophole must be closed. The New York Times recently reported that the government has made over $4 billion in profit from the TARP program – money which is just being recycled for other spending and not to lower the debt.  Since money started flowing back to Treasury several months ago, the government has profited $1.4 billion from Goldman Sachs, $1.3 billion from Morgan Stanley and $414 million from American Express.  It also received profits ranging between $100 million and $334 million from five other banks including Northern Trust, Bank of New York Mellon, State Street, U.S. Bancorp and BB&T.

When dealing with an $11 trillion national debt, $4 billion seems like a drop in the bucket, but we must start somewhere. It is foolish and fiscally irresponsible to ignore this loophole, and not apply everything possible to bring the national debt back under control. 

As Congress heads back into session, I will continue to lobby my colleagues to support H.R. 3020 as a common-sense solution to helping reduce our national debt.