Dear Representative Kingston:
On behalf of more than two million Americans for Prosperity activists in all 50 states, I applaud you for introducing the Return Taxpayer Dollars and Debt Accountability Act, which requires the money reimbursed to the Secretary of the Treasury for the Fannie Mae and Freddie Mac bailouts to be used for federal debt reduction.
Federal taxpayers shouldn’t have been forced to rescue Fannie Mae and Freddie Mac in the first place. Although it is laudable that these behemoth Government Sponsored Enterprises (GSEs) are making a good faith effort to reimburse taxpayers for the $187 billion in bailout money they received in 2008, using this money to profligate federal spending is simply wrong.
Your legislation requires that all reimbursement from Fannie Mae and Freddie Mac go to a specific account in the Treasury that may only be used to purchase outstanding treasuries. This would stop the Obama Administration from continuing to use these repayments to support high levels of deficit spending. In addition, your legislation will also reduce the government’s role in the Fannie Mae and Freddie Mac by requiring that all profits must be paid back to the Treasury until the GSEs are out of conservatorship.
Americans for Prosperity is proud to support your legislation. I urge your colleagues to support its passage, and I look forward to working with you in the future.
Christine Harbin Hanson
Federal Affairs Manager
Americans for Prosperity