TARP money, the stimulus and the law
President Barack Obama proposed a new batch of economic stimulus initiatives -- tax breaks for small businesses and investments in roads, bridges and other infrastructure projects -- and said the programs could be paid for thanks to new forecasts on the cost of last fall's bailout of financial institutions, otherwise known as the Troubled Asset Relief Program (TARP).
U.S. Rep. Mike Pence, chairman of the House Republican Conference, said the money has to go to deficit reduction .
"To use money from the TARP fund in the manner that is being discussed by the White House and congressional Democrats would be a violation of the law, and it would betray the trust of the American people," Pence said.
After checking the law and talking to the experts, we rated his statement Half True. Read our complete item to find out why.
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