Blue Dogs Insist on Provision to Protect Taxpayers Amid Financial Crisis

Sep 28, 2008
Press Release
Recoupment plan restores much needed fiscal discipline to rescue package

Today, members of the fiscally conservative Democratic Blue Dog Coalition announced their official support for a recoupment plan to protect taxpayers as negotiations are finalized on a broader package to address the current financial crisis.  Throughout negotiations, Blue Dog members have consistently worked with parties on all sides to ensure that the final rescue package includes a standard of fiscal discipline that would protect Main Street and prevent the country from falling deeper into debt.

On Saturday, Blue Dog members sent a letter to House and Senate leaders insisting on the inclusion of a recoupment plan in the broader rescue package.  The resulting provision currently being finalized will protect taxpayers’ investment by requiring the President to submit legislation recouping any losses as a result of the program from the financial industry.  It also takes important steps to protect the future economic health of the country by ensuring that implementation of the plan does not add to the country’s already overwhelming debt burden.

“The American people deserve an insurance policy to know that in the long run, our investment of federal dollars will be recovered, and this provision fulfills that objective,” said Congressman John Tanner (D-TN), a member of the House Ways and Means Committee and co-founder of the Blue Dog Coalition. “As the Blue Dogs have talked about for years, our nation’s fiscal outlook is bleak. It is imperative that the cost of this package be recovered without adding an additional hundreds of billions dollars to our federal debt.”

“Throughout the 110th Congress, the Blue Dogs have been the fiscal police and worked hard to advance fiscally responsible policies.  The recoupment clause in the financial rescue package continues our strong commitment to be good stewards of the taxpayers’ money,” said Congressman Allen Boyd (D-FL), Blue Dog Co-Chair for Administration.  “I appreciate the House and Senate leaders for working with us to include Cong. Tanner and the Blue Dogs’ common sense proposal to recover any lost investments in the long term and protect the American taxpayers.”