Both Democrats and Republicans are coming together to support increased transparency in how funds are being distributed through the Troubled Asset Relief Program (TARP).
When TARP was passed under the Bush administration, it gave the Treasury Department, then run by Treasury Secretary Hank Paulson, the power to distribute the funds as Treasury saw fit.
Lots of people, IPI included, were concerned at the time that there was insufficient transparency and accountability in the legislation.
Under our system of checks and balances, it is Congress’ rightful responsibility to control expenditures of taxpayer dollars, and to exercise oversight over how and where funds are spent. Although Congress delegated the administration of TARP funds to the executive branch, Congress should not give the Treasury Department a free pass.
Good intentions no doubt underlay the Treasury Department’s TARP program; however, good intentions are not enough. Sunlight is needed not only to assure Congress and the American people that the TARP funds are being used in an appropriate manner, but also to remind TARP administrators that Congress and the American people are looking over their shoulders.
Current technology makes it relatively simple to publish information on the TARP expenditures in a database that is searchable and available on the Internet. We would caution that Congress must insist that the database be searchable, rather than just publishing static documentation.
There has been much talk about transparency in Congress in recent months, but precious little action. The bipartisan effort to move H.R. 1242, the “TARP Accountability and Disclosure Act,” however, is a welcome exception.
And hopefully the legislation could be used as a model for future efforts designed to increase transparency. Giving the public access to monitor how its tax dollars are spent will help ensure that money is used in the most efficient and effective manner.
TARP may have been a bad idea, but more transparency and accountability will make it better.