Tulsa World: Inhofe warns bailout funds could be drained by January

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Inhofe warns bailout funds could be drained by January

By JIM MYERS World Washington Bureau
Published: 11/17/2008 6:51 PM
Last Modified: 11/17/2008 6:51 PM

WASHINGTON – U.S. Sen. Jim Inhofe said Monday if Congress does not act now the rest of the $700 billion in bailout funds could be spent before lawmakers return in January.

“We are sitting around twiddeling our thumbs, doing nothing,’’ the Oklahoma Republican said, referring to a debate about which committee has jurisdiction.

“We had better do it now or it is going to be too late. We will be out of here, and it will be history by the time we get back here in January.’’

Meanwhile, Treasury Secretary Henry Paulson’s office kept its options open on plans to tap into the second $350 billion installment after the current lame duck session ends.

A Paulson spokeswoman declined to comment directly on Inhofe’s concern.

He based that concern on a provision of the bailout law that requires President George W. Bush to submit a plan to Congress before Paulson can access the final $350 billion.

Inhofe suggested Paulson could avoid a vote of disapproval on his plan by introducing it while lawmakers are away.

Inhofe introduced legislation Monday to freeze what is left of the first $350 billion and require an “affirmative” vote by lawmakers before the second half of the bailout funds could be spent.

“Congress completely abdicated its responsibility by signing a truly blank check over to the Treasury secretary,’’ said Inhofe, who voted against the bailout legislation. “However, the lame duck session of Congress offers us a tremendous opportunity to change course. We should take it.’’

Paulson spokeswoman Jennifer Zuccarelli confirmed the Department of Treasury had said no plan on the remaining bailout funds would be submitted this week. She added, however, that Paulson gave no other timeline on a decision concerning the second $350 billion.

Inhofe is not the only senator questioning Paulson’s announcement last week that he was giving up on his plan to free up credit by using the bailout money to buy toxic assets from financial institutions.

The Bush administration’s point man on the bailout now wants to take more direct action on consumer credit.

Sen. Bernie Sanders of Vermont, an Independent who caucuses with Democrats, announced Monday he also will introduce legislation to halt the bailout.

“I have very serious concerns as to how the Bush administration is spending the first $350 billion they were provided,’’ Sanders said, accusing the administration of ignoring the law’s oversight provisions.

In his remarks on what he wants to accomplish during the lame duck session, expected to last only this week, however, Senate Majority Leader Harry Reid, D-Nev., laid out his plans to push a comprehensive economic stimulus package.

Reid said if that legislation fails to garner enough support to pass, a vote will be scheduled on a second bill on jobless benefits and relief to the ailing auto industry. By JIM MYERS World Washington Bureau

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