I 

111TH CONGRESS 

2D SESSION H. R. 4482 

To apply recaptured taxpayer investments toward reducing the national debt. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 20, 2010 

Mr. LANCE introduced the following bill; which was referred to the Committee 

on Financial Services, and in addition to the Committees on Ways and 

Means and Appropriations, for a period to be subsequently determined by 

the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

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 


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1 trillion or 11 percent of the Gross Domestic Prod2 uct; 

3 (2) this deficit represents the largest relative 

4 deficit since the end of World War II; 

5 (3) the Congressional Budget Office estimates 

6 that the fiscal year 2010 deficit will reach $1.4 tril7 lion; and 

8 (4) given the choice between forcing our chil9 dren to pay for the national debt and requiring 

10 banks and other beneficiaries of the goodwill of the 

11 taxpayer to make a down payment now, we choose 

12 to help our kids. 

13 SEC. 3. AMENDMENT TO TARP AUTHORIZATION. 

14 Section 115(a)(3) of the Emergency Economic Sta15 bilization Act of 2008 (12 U.S.C. 5225(a)(3)) is amended 

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

17 ‘‘, in the aggregate (or such higher amount, in the aggre18 gate, as has been obligated or expended under this Act 

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

20 SEC. 4. REPORT. 

21 Section 106 of the Emergency Economic Stabilization 

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

23 at the end the following: 

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

25 report to Congress every 6 months on amounts received 


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1 and transferred to the general fund under subsection 

2 (d).’’. 

3 SEC. 5. AMENDMENTS TO HOUSING AND ECONOMIC RECOV4 ERY ACT OF 2008. 

5 (a) SALE OF FANNIE MAE OBLIGATIONS AND SECU6 RITIES BY THE TREASURY; DEFICIT REDUCTION.—Sec7 tion 304(g)(2) of the Federal National Mortgage Associa8 tion Charter Act (12 U.S.C. 1719(g)(2)) is amended— 

9 (1) by redesignating subparagraph (C) as sub10 paragraph (D); and 

11 (2) by inserting after subparagraph (B) the fol12 lowing: 

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

14 of the Treasury shall— 

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

16 the Treasury any amounts received by the 

17 Secretary for the sale of any obligation or 

18 security acquired by the Secretary under 

19 this subsection; and 

20 ‘‘(ii) ensure that such amounts so de21 posited— 

22 ‘‘(I) are dedicated for the sole 

23 purpose of deficit reduction; and 


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1 ‘‘(II) are prohibited from use as 

2 an offset for other spending increases 

3 or revenue reductions.’’. 

4 (b) SALE OF FREDDIE MAC OBLIGATIONS AND SE5 CURITIES BY THE TREASURY; DEFICIT REDUCTION.— 

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

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

8 (1) by redesignating subparagraph (C) as sub9 paragraph (D); and 

10 (2) by inserting after subparagraph (B) the fol11 lowing: 

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

13 of the Treasury shall— 

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

15 the Treasury any amounts received by the 

16 Secretary for the sale of any obligation or 

17 security acquired by the Secretary under 

18 this subsection; and 

19 ‘‘(ii) ensure that such amounts so de20 posited— 

21 ‘‘(I) are dedicated for the sole 

22 purpose of deficit reduction; and 

23 ‘‘(II) are prohibited from use as 

24 an offset for other spending increases 

25 or revenue reductions.’’. 


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1 (c) SALE OF FEDERAL HOME LOAN BANKS OBLIGA2 TIONS BY THE TREASURY; DEFICIT REDUCTION.—Sec3 tion 11(l)(2) of the Federal Home Loan Bank Act (12 

4 U.S.C. 1431(l)(2)) is amended— 

5 (1) by redesignating subparagraph (C) as sub6 paragraph (D); and 

7 (2) by inserting after subparagraph (B) the fol8 lowing: 

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

10 of the Treasury shall— 

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

12 the Treasury any amounts received by the 

13 Secretary for the sale of any obligation ac14 quired by the Secretary under this sub15 section; and 

16 ‘‘(ii) ensure that such amounts so de17 posited— 

18 ‘‘(I) are dedicated for the sole 

19 purpose of deficit reduction; and 

20 ‘‘(II) are prohibited from use as 

21 an offset for other spending increases 

22 or revenue reductions.’’. 

23 (d) REPAYMENT OF FEES.—Any periodic commit24 ment fee or any other fee or assessment paid by the Fed25 eral National Mortgage Association or Federal Home 


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1 Loan Mortgage Corporation to the Secretary of the Treas2 ury as a result of any preferred stock purchase agreement, 

3 mortgage-backed security purchase program, or any other 

4 program or activity authorized or carried out pursuant to 

5 the authorities granted to the Secretary of the Treasury 

6 under the amendments made by section 1117 of the Hous7 ing and Economic Recovery Act of 2008 (Public Law 110– 

8 289; 122 Stat. 2683), including any fee agreed to by con9 tract between the Secretary and the Association or Cor10 poration, shall be deposited in the General Fund of the 

11 Treasury where such amounts shall be— 

12 (1) dedicated for the sole purpose of deficit re13 duction; and 

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

15 spending increases or revenue reductions. 

16 SEC. 6. FEDERAL HOUSING FINANCE AGENCY REPORT. 

17 The Director of the Federal Housing Finance Agency 

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

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

20 vital housing industry, while at the same time guaran21 teeing that the American taxpayer will not suffer unneces22 sary losses. 

23 SEC. 7. REPAYMENT OF UNOBLIGATED ARRA FUNDS. 

24 (a) REJECTION OF ARRA FUNDS BY STATE.—Sec25 tion 1607 of division A of the American Recovery and ReVerDate Nov 24 2008 21:35 Jan 21, 2010 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H4482.IH H4482

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1 investment Act of 2009 (Public Law 111–5; 123 Stat. 

2 303) is amended by adding at the end the following: 

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

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

5 accepted for use by the Governor of the State pursuant 

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

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

8 ‘‘(1) rescinded; and 

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

10 Treasury, where such amounts shall be— 

11 ‘‘(A) dedicated for the sole purpose of def12 icit reduction; and 

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

14 other spending increases or revenue reduc15 tions.’’. 

16 (b) WITHDRAWAL OR RECAPTURE OF UNOBLIGATED

17 FUNDS.—Title XVI of division A of the American Recov18 ery and Reinvestment Act of 2009 (Public Law 111–5; 

19 123 Stat. 302) is amended by adding at the end the fol20 lowing: 

21 ‘‘WITHDRAWAL OR RECAPTURE OF UNOBLIGATED FUNDS

22 ‘‘SEC. 1613. Notwithstanding any other provision of 

23 this Act, if the head of any executive agency withdraws 

24 or recaptures for any reason funds appropriated or other25 wise made available under this division, and such funds 


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1 have not been obligated by a State to a local government 

2 or for a specific project, such recaptured funds shall be— 

3 ‘‘(1) rescinded; and 

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

5 Treasury, where such amounts shall be— 

6 ‘‘(A) dedicated for the sole purpose of def7 icit reduction; and 

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

9 other spending increases or revenue reduc10 tions.’’. 

11 (c) RETURN OF UNOBLIGATED FUNDS BY END OF

12 2012.—Section 1603 of division A of the American Recov13 ery and Reinvestment Act of 2009 (Public Law 111–5; 

14 123 Stat. 302) is amended— 

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

16 IN GENERAL.—All funds’’; and 

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

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

19 discretionary appropriations made available in this divi20 sion that have not been obligated as of December 31, 

21 2012, are hereby rescinded, and such amounts shall be 

22 deposited in the General Fund of the Treasury, where 

23 such amounts shall be— 

24 ‘‘(1) dedicated for the sole purpose of deficit re25 duction; and 


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

2 spending increases or revenue reductions. 

3 ‘‘(c) PRESIDENTIAL WAIVER AUTHORITY.— 

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

5 the requirements under subsection (b), if the Presi6 dent determines that it is not in the best interest of 

7 the Nation to rescind a specific unobligated amount 

8 after December 31, 2012. 

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

10 agency may also apply to the President for a waiver 

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

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

13 DEBT. 

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

15 amended— 

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

17 aggregate amounts described in subsection (d)’’ be18 fore ‘‘, outstanding at one time’’; and 

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

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

21 amounts received by the Secretary of the Treasury pursu22 ant to— 

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

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

25 date of enactment of this subsection; and 


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

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

3 1719(g)), section 306(l) of the Federal Home Loan 

4 Mortgage Corporation Act (12 U.S.C. 1455(l)), sec5 tion 11(l) of the Federal Home Loan Bank Act (12 

6 U.S.C. 1431(l)), section 1607(d) of division A of the 

7 American Recovery and Reinvestment Act of 2009 

8 (Public Law 111–5), section 1613 of division A of 

9 the American Recovery and Reinvestment Act of 

10 2009 (Public Law 111–5), and sections 5(d) and 

11 7(c) of the Pay It Back Act after the date of enact12 ment of this subsection.’’. 

Æ 


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