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 with-
in the jurisdiction of the committee concerned 
A BILL 
To apply recaptured taxpayer investments toward reducing 
the national debt. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Pay It Back Act’’. 
SEC. 2. FINDINGS. 
Congress finds that— 
(1) the Congressional Budget Office estimates 
that the deficit for this fiscal year will reach $1.6 
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trillion or 11 percent of the Gross Domestic Prod-
uct; 
(2) this deficit represents the largest relative 
deficit since the end of World War II; 
(3) the Congressional Budget Office estimates 
that the fiscal year 2010 deficit will reach $1.4 tril-
lion; and 
(4) given the choice between forcing our chil-
dren to pay for the national debt and requiring 
banks and other beneficiaries of the goodwill of the 
taxpayer to make a down payment now, we choose 
to help our kids. 
SEC. 3. AMENDMENT TO TARP AUTHORIZATION. 
Section 115(a)(3) of the Emergency Economic Sta-
bilization Act of 2008 (12 U.S.C. 5225(a)(3)) is amended 
by striking ‘‘outstanding at any one time’’ and inserting 
‘‘, in the aggregate (or such higher amount, in the aggre-
gate, as has been obligated or expended under this Act 
as of the date of enactment of the Pay It Back Act)’’. 
SEC. 4. REPORT. 
Section 106 of the Emergency Economic Stabilization 
Act of 2008 (12 U.S.C. 5216) is amended by inserting 
at the end the following: 
‘‘(f) REPORT.—The Secretary of the Treasury shall 
report to Congress every 6 months on amounts received 
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and transferred to the general fund under subsection 
(d).’’. 
SEC. 5. AMENDMENTS TO HOUSING AND ECONOMIC RECOV-
ERY ACT OF 2008. 
(a) SALE OF FANNIE MAE OBLIGATIONS AND SECU-
RITIES BY THE TREASURY; DEFICIT REDUCTION.—Sec-
tion 304(g)(2) of the Federal National Mortgage Associa-
tion Charter Act (12 U.S.C. 1719(g)(2)) is amended— 
(1) by redesignating subparagraph (C) as sub-
paragraph (D); and 
(2) by inserting after subparagraph (B) the fol-
lowing: 
‘‘(C) DEFICIT REDUCTION.—The Secretary 
of the Treasury shall— 
‘‘(i) deposit in the General Fund of 
the Treasury any amounts received by the 
Secretary for the sale of any obligation or 
security acquired by the Secretary under 
this subsection; and 
‘‘(ii) ensure that such amounts so de-
posited— 
‘‘(I) are dedicated for the sole 
purpose of deficit reduction; and 
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‘‘(II) are prohibited from use as 
an offset for other spending increases 
or revenue reductions.’’. 
(b) SALE OF FREDDIE MAC OBLIGATIONS AND SE-
CURITIES BY THE TREASURY; DEFICIT REDUCTION.— 
Section 306(l)(2) of the Federal Home Loan Mortgage 
Corporation Act (12 U.S.C. 1455(l)(2)) is amended— 
(1) by redesignating subparagraph (C) as sub-
paragraph (D); and 
(2) by inserting after subparagraph (B) the fol-
lowing: 
‘‘(C) DEFICIT REDUCTION.—The Secretary 
of the Treasury shall— 
‘‘(i) deposit in the General Fund of 
the Treasury any amounts received by the 
Secretary for the sale of any obligation or 
security acquired by the Secretary under 
this subsection; and 
‘‘(ii) ensure that such amounts so de-
posited— 
‘‘(I) are dedicated for the sole 
purpose of deficit reduction; and 
‘‘(II) are prohibited from use as 
an offset for other spending increases 
or revenue reductions.’’. 
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(c) SALE OF FEDERAL HOME LOAN BANKS OBLIGA-
TIONS BY THE TREASURY; DEFICIT REDUCTION.—Sec-
tion 11(l)(2) of the Federal Home Loan Bank Act (12 
U.S.C. 1431(l)(2)) is amended— 
(1) by redesignating subparagraph (C) as sub-
paragraph (D); and 
(2) by inserting after subparagraph (B) the fol-
lowing: 
‘‘(C) DEFICIT REDUCTION.—The Secretary 
of the Treasury shall— 
‘‘(i) deposit in the General Fund of 
the Treasury any amounts received by the 
Secretary for the sale of any obligation ac-
quired by the Secretary under this sub-
section; and 
‘‘(ii) ensure that such amounts so de-
posited— 
‘‘(I) are dedicated for the sole 
purpose of deficit reduction; and 
‘‘(II) are prohibited from use as 
an offset for other spending increases 
or revenue reductions.’’. 
(d) REPAYMENT OF FEES.—Any periodic commit-
ment fee or any other fee or assessment paid by the Fed-
eral National Mortgage Association or Federal Home 
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Loan Mortgage Corporation to the Secretary of the Treas-
ury as a result of any preferred stock purchase agreement, 
mortgage-backed security purchase program, or any other 
program or activity authorized or carried out pursuant to 
the authorities granted to the Secretary of the Treasury 
under the amendments made by section 1117 of the Hous-
ing and Economic Recovery Act of 2008 (Public Law 110– 
289; 122 Stat. 2683), including any fee agreed to by con-
tract between the Secretary and the Association or Cor-
poration, shall be deposited in the General Fund of the 
Treasury where such amounts shall be— 
(1) dedicated for the sole purpose of deficit re-
duction; and 
(2) prohibited from use as an offset for other 
spending increases or revenue reductions. 
SEC. 6. FEDERAL HOUSING FINANCE AGENCY REPORT. 
The Director of the Federal Housing Finance Agency 
shall submit to Congress a report on the plans of the 
Agency to continue to support and maintain the Nation’s 
vital housing industry, while at the same time guaran-
teeing that the American taxpayer will not suffer unneces-
sary losses. 
SEC. 7. REPAYMENT OF UNOBLIGATED ARRA FUNDS. 
(a) REJECTION OF ARRA FUNDS BY STATE.—Sec-
tion 1607 of division A of the American Recovery and Re-
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investment Act of 2009 (Public Law 111–5; 123 Stat. 
303) is amended by adding at the end the following: 
‘‘(d) STATEWIDE REJECTION OF FUNDS.—If funds 
provided to any State in any division of this Act are not 
accepted for use by the Governor of the State pursuant 
to subsection (a) or by the State legislature pursuant to 
subsection (b), then all such funds shall be— 
‘‘(1) rescinded; and 
‘‘(2) deposited in the General Fund of the 
Treasury, where such amounts shall be— 
‘‘(A) dedicated for the sole purpose of def-
icit reduction; and 
‘‘(B) prohibited from use as an offset for 
other spending increases or revenue reduc-
tions.’’. 
(b) WITHDRAWAL OR RECAPTURE OF UNOBLIGATED 
FUNDS.—Title XVI of division A of the American Recov-
ery and Reinvestment Act of 2009 (Public Law 111–5; 
123 Stat. 302) is amended by adding at the end the fol-
lowing: 
‘‘WITHDRAWAL OR RECAPTURE OF UNOBLIGATED FUNDS 
‘‘SEC. 1613. Notwithstanding any other provision of 
this Act, if the head of any executive agency withdraws 
or recaptures for any reason funds appropriated or other-
wise made available under this division, and such funds 
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have not been obligated by a State to a local government 
or for a specific project, such recaptured funds shall be— 
‘‘(1) rescinded; and 
‘‘(2) deposited in the General Fund of the 
Treasury, where such amounts shall be— 
‘‘(A) dedicated for the sole purpose of def-
icit reduction; and 
‘‘(B) prohibited from use as an offset for 
other spending increases or revenue reduc-
tions.’’. 
(c) RETURN OF UNOBLIGATED FUNDS BY END OF 
2012.—Section 1603 of division A of the American Recov-
ery and Reinvestment Act of 2009 (Public Law 111–5; 
123 Stat. 302) is amended— 
(1) by striking ‘‘All funds’’ and inserting ‘‘(a) 
IN GENERAL.—All funds’’; and 
(2) by adding at the end the following: 
‘‘(b) REPAYMENT OF UNOBLIGATED FUNDS.—Any 
discretionary appropriations made available in this divi-
sion that have not been obligated as of December 31, 
2012, are hereby rescinded, and such amounts shall be 
deposited in the General Fund of the Treasury, where 
such amounts shall be— 
‘‘(1) dedicated for the sole purpose of deficit re-
duction; and 
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