II 

111TH CONGRESS 

1ST SESSION S. 1683 

To apply recaptured taxpayer investments toward reducing the national debt. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 17, 2009 

Mr. BENNET introduced the following bill; which was read twice and referred 

to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To apply recaptured taxpayer investments toward reducing 

the national debt. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Pay It Back Act’’. 

5 SEC. 2. FINDINGS. 

6 Congress finds that— 

7 (1) the Congressional Budget Office estimates 

8 that the deficit for this fiscal year will reach $1.6 

9 trillion or 11 percent of the Gross Domestic Prod10 uct; 


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1 (2) this deficit represents the largest relative 

2 deficit since the end of World War II; 

3 (3) the Congressional Budget Office estimates 

4 that the fiscal year 2010 deficit will reach $1.4 tril5 lion; and 

6 (4) given the choice between forcing our chil7 dren to pay for the national debt and requiring 

8 banks and other beneficiaries of the goodwill of the 

9 taxpayer to make a down payment now, we choose 

10 to help our kids. 

11 SEC. 3. AMENDMENT TO TARP AUTHORIZATION. 

12 Section 115(a)(3) of the Emergency Economic Sta13 bilization Act of 2008 (12 U.S.C. 5225(a)(3)) is amended 

14 by striking ‘‘outstanding at any one time’’ and inserting 

15 ‘‘, in the aggregate (or such higher amount, in the aggre16 gate, as has been obligated or expended under this Act 

17 as of the date of enactment of the Pay It Back Act)’’. 

18 SEC. 4. REPORT. 

19 Section 106 of the Emergency Economic Stabilization 

20 Act of 2008 (12 U.S.C. 5216) is amended by inserting 

21 at the end the following: 

22 ‘‘(f) REPORT.—The Secretary of the Treasury shall 

23 report to Congress every 6 months on amounts received 

24 and transferred to the general fund under subsection 

25 (d).’’. 


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1 SEC. 5. AMENDMENTS TO HOUSING AND ECONOMIC RECOV2 ERY ACT OF 2008. 

3 (a) SALE OF FANNIE MAE OBLIGATIONS AND SECU4 RITIES BY THE TREASURY; DEFICIT REDUCTION.—Sec5 tion 304(g)(2) of the Federal National Mortgage Associa6 tion Charter Act (12 U.S.C. 1719(g)(2)) is amended— 

7 (1) by redesignating subparagraph (C) as sub8 paragraph (D); and 

9 (2) by inserting after subparagraph (B) the fol10 lowing: 

11 ‘‘(C) DEFICIT REDUCTION.—The Secretary 

12 of the Treasury shall— 

13 ‘‘(i) deposit in the General Fund of 

14 the Treasury any amounts received by the 

15 Secretary for the sale of any obligation or 

16 security acquired by the Secretary under 

17 this subsection; and 

18 ‘‘(ii) ensure that such amounts so de19 posited— 

20 ‘‘(I) are dedicated for the sole 

21 purpose of deficit reduction; and 

22 ‘‘(II) are prohibited from use as 

23 an offset for other spending increases 

24 or revenue reductions.’’. 

25 (b) SALE OF FREDDIE MAC OBLIGATIONS AND SE26 CURITIES BY THE TREASURY; DEFICIT REDUCTION.— 


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1 Section 306(l)(2) of the Federal Home Loan Mortgage 

2 Corporation Act (12 U.S.C. 1455(l)(2)) is amended— 

3 (1) by redesignating subparagraph (C) as sub4 paragraph (D); and 

5 (2) by inserting after subparagraph (B) the fol6 lowing: 

7 ‘‘(C) DEFICIT REDUCTION.—The Secretary 

8 of the Treasury shall— 

9 ‘‘(i) deposit in the General Fund of 

10 the Treasury any amounts received by the 

11 Secretary for the sale of any obligation or 

12 security acquired by the Secretary under 

13 this subsection; and 

14 ‘‘(ii) ensure that such amounts so de15 posited— 

16 ‘‘(I) are dedicated for the sole 

17 purpose of deficit reduction; and 

18 ‘‘(II) are prohibited from use as 

19 an offset for other spending increases 

20 or revenue reductions.’’. 

21 (c) SALE OF FEDERAL HOME LOAN BANKS OBLIGA22 TIONS BY THE TREASURY; DEFICIT REDUCTION.—Sec23 tion 11(l)(2) of the Federal Home Loan Bank Act (12 

24 U.S.C. 1431(l)(2)) is amended— 


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1 (1) by redesignating subparagraph (C) as sub2 paragraph (D); and 

3 (2) by inserting after subparagraph (B) the fol4 lowing: 

5 ‘‘(C) DEFICIT REDUCTION.—The Secretary 

6 of the Treasury shall— 

7 ‘‘(i) deposit in the General Fund of 

8 the Treasury any amounts received by the 

9 Secretary for the sale of any obligation ac10 quired by the Secretary under this sub11 section; and 

12 ‘‘(ii) ensure that such amounts so de13 posited— 

14 ‘‘(I) are dedicated for the sole 

15 purpose of deficit reduction; and 

16 ‘‘(II) are prohibited from use as 

17 an offset for other spending increases 

18 or revenue reductions.’’. 

19 (d) REPAYMENT OF FEES.—Any periodic commit20 ment fee or any other fee or assessment paid by the Fed21 eral National Mortgage Association or Federal Home 

22 Loan Mortgage Corporation to the Secretary of the Treas23 ury as a result of any preferred stock purchase agreement, 

24 mortgage-backed security purchase program, or any other 

25 program or activity authorized or carried out pursuant to 


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1 the authorities granted to the Secretary of the Treasury 

2 under section 1117 of the Housing and Economic Recov3 ery Act of 2008 (Public Law 110–289; 122 Stat. 2683), 

4 including any fee agreed to by contract between the Sec5 retary and the Association or Corporation, shall be depos6 ited in the General Fund of the Treasury where such 

7 amounts shall be— 

8 (1) dedicated for the sole purpose of deficit re9 duction; and 

10 (2) prohibited from use as an offset for other 

11 spending increases or revenue reductions. 

12 SEC. 6. FEDERAL HOUSING FINANCE AGENCY REPORT. 

13 The Director of the Federal Housing Finance Agency 

14 shall submit to Congress a report on the plans of the 

15 Agency to continue to support and maintain the Nation’s 

16 vital housing industry, while at the same time guaran17 teeing that the American taxpayer will not suffer unneces18 sary losses. 

19 SEC. 7. REPAYMENT OF UNOBLIGATED ARRA FUNDS. 

20 (a) REJECTION OF ARRA FUNDS BY STATE.—Sec21 tion 1607 of the American Recovery and Reinvestment Act 

22 of 2009 (Public Law 111–5; 123 Stat. 305) is amended 

23 by adding at the end the following: 

24 ‘‘(d) STATEWIDE REJECTION OF FUNDS.—If funds 

25 provided to any State in any division of this Act are not 


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1 accepted for use by the Governor of the State pursuant 

2 to subsection (a) or by the State legislature pursuant to 

3 subsection (b), then all such funds shall be— 

4 ‘‘(1) rescinded; and 

5 ‘‘(2) be deposited in the General Fund of the 

6 Treasury where such amounts shall be— 

7 ‘‘(A) dedicated for the sole purpose of def8 icit reduction; and 

9 ‘‘(B) prohibited from use as an offset for 

10 other spending increases or revenue reduc11 tions.’’. 

12 (b) WITHDRAWAL OR RECAPTURE OF UNOBLIGATED

13 FUNDS.—Title XVI of the American Recovery and Rein14 vestment Act of 2009 (Public Law 111–5; 123 Stat. 302) 

15 is amended by adding at the end the following: 

16 ‘‘SEC. 1613. WITHDRAWAL OR RECAPTURE OF UNOBLI17 GATED FUNDS. 

18 ‘‘Notwithstanding any other provision of this Act, if 

19 the head of any executive agency withdraws or recaptures 

20 for any reason funds appropriated or otherwise made 

21 available under this division, and such funds have not been 

22 obligated by a State to a local government or for a specific 

23 project, such recaptured funds shall be— 

24 ‘‘(1) rescinded; and 


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1 ‘‘(2) deposited in the General Fund of the 

2 Treasury where such amounts shall be— 

3 ‘‘(A) dedicated for the sole purpose of def4 icit reduction; and 

5 ‘‘(B) prohibited from use as an offset for 

6 other spending increases or revenue reduc7 tions.’’. 

8 (c) RETURN OF UNOBLIGATED FUNDS BY END OF

9 2012.—Section 1603 of the American Recovery and Rein10 vestment Act of 2009 (Public Law 111–5; 123 Stat. 302) 

11 is amended by— 

12 (1) by striking ‘‘All funds’’ and inserting ‘‘(a) 

13 IN GENERAL.—All funds’’; and 

14 (2) by adding at the end the following: 

15 ‘‘(b) REPAYMENT OF UNOBLIGATED FUNDS.—Any 

16 discretionary appropriations made available in this divi17 sion that have not been obligated as of December 31, 

18 2012, are hereby rescinded, and such amounts shall be 

19 deposited in the General Fund of the Treasury where such 

20 amounts shall be— 

21 ‘‘(1) dedicated for the sole purpose of deficit re22 duction; and 

23 ‘‘(2) prohibited from use as an offset for other 

24 spending increases or revenue reductions. 

25 ‘‘(c) PRESIDENTIAL WAIVER AUTHORITY.— 


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1 ‘‘(1) IN GENERAL.—The President may waive 

2 the requirements under subsection (b), if the Presi3 dent determines that it is not in the best interest of 

4 the Nation to rescind a specific unobligated amount 

5 after December 31, 2012. 

6 ‘‘(2) REQUESTS.—The head of an executive 

7 agency may also apply to the President for a waiver 

8 from the requirements under subsection (b).’’. 

9 SEC. 8. REDUCTION OF STATUTORY LIMIT ON THE PUBLIC 

10 DEBT. 

11 Section 3101 of title 31, United States Code, is 

12 amended— 

13 (1) in subsection (b), by inserting ‘‘minus the 

14 aggregate amounts described in subsection (d)’’ be15 fore ‘‘, outstanding at one time’’; and 

16 (2) by inserting at the end the following: 

17 ‘‘(d) Amounts described in this subsection are any 

18 amounts received by the Secretary of the Treasury pursu19 ant to— 

20 ‘‘(1) section 106(d) of the Emergency Economic 

21 Stabilization Act of 2008 before, on, or after the 

22 date of enactment of this subsection; and 

23 ‘‘(2) section 304(g) of the Federal National 

24 Mortgage Association Charter Act (12 U.S.C. 

25 1719(g)), section 306(l) of the Federal Home Loan 


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1 Mortgage Corporation Act (12 U.S.C. 1455(l)), sec2 tion 11(l) of the Federal Home Loan Bank Act (12 

3 U.S.C. 1431(l)), section 1607(d) of the American 

4 Recovery and Reinvestment Act of 2009 (Public 

5 Law 111–5; 123 Stat. 305), section 1613 of the 

6 American Recovery and Reinvestment Act of 2009 

7 (Public Law 111–5; 123 Stat. 302), and sections 

8 5(d) and 7(c) of the Pay It Back Act after the date 

9 of enactment of this subsection.’’. 

Æ 


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