WASHINGTON
It's unusual for a Republican to set the agenda for the Democratic-controlled Congress.
But Rep. Virginia Foxx, R-5th, is forcing a vote next week to block the second half of the controversial $700 billion Wall Street bailout.
The Bush administration has already distributed $350 billion to banks and auto companies under the bailout, known as the Troubled Assets Relief Program, or TARP. After a request from President-elect Obama, Bush indicated this week that he would release the remaining $350 billion.
Because of an obscure provision buried in the fine print of the bailout legislation that was passed last fall, Bush's move prompts an automatic House vote next week on a bill sponsored by Foxx to block the additional money.
"I think people all over the country are very unhappy with how the money has been spent. I'm hoping the public will put a lot of pressure on their members to say, ‘Don't do any more of this,'" Foxx, who voted against the bailout last fall, said in an interview.
Even if Foxx's bill passes, though, it's unlikely to block the release of the money. For that to happen, the Senate would have to concur. Yesterday, the Senate voted 52-42 against a bill identical to Foxx's that would have blocked the release of the money.
Sen. Richard Burr, R-N.C., voted to block the release while Sen. Kay Hagan, D-N.C., voted to allow it. Hagan, who had opposed the bailout while running for Congress, changed her position, saying that Obama provided assurances that the money would be invested with accountability.
The bailout was intended to loosen tight credit markets that were choking off the economy. The Bush administration originally said it would solve the problem by buying toxic securities backed by failing mortgages but later decided to directly infuse troubled banks with cash to make loans.
The bailout was controversial from the start. After an outpouring of public opposition, the House initially voted the bailout down but later passed it after Democratic leaders made changes.
Since then, Democrats and Republicans have widely criticized its lack of transparency and the fact that many banks held on to the government money instead of lending it to individuals and businesses.
Obama and Democratic leaders in Congress have promised changes to TARP to increase oversight, direct a large chunk of the money to help foreclosed homeowners and make sure that banks are lending the money.
"Keeping flow of credit is critical.... I, like many, are disappointed with how the whole TARP process has unfolded. There hasn't been enough oversight," Obama said Sunday on ABC's This Week.
■ Sean Mussenden can be reached at 202-662-7668 or smussenden@mediageneral.com.
■ The Associated Press contributed to this article.
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