The federal government created two programs aimed at providing emergency assistance:
Troubled Asset Relief Program (TARP): This initiative aimed to mend the financial situation of banks, stabilize the economy, improve the prospects of the U.S. auto industry and support foreclosure prevention programs. TARP funds ($700 billion) were used to purchase the equity of failing businesses and financial institutions; The American Recovery and Reinvestment Act (ARRA): The stimulus bill, enacted in 2009, enforced various tax cuts, government spending programs, loan guarantees, and unemployment benefits to help reinvigorate the economy.