Ultimately, the TARP money comes from American taxpayers.

In response to the escalating financial crisis, on October 3, 2008, Congress passed the Emergency Economic Stabilization Act of 2008 (EESA), which provided the U.S. Department of the Treasury with the authority to spend $700 billion under the Troubled Asset Relief Program (TARP). 

EESA’s purposes are to “restore liquidity and stability to the financial system of the United States . . . in a manner that

• Protects home values, college funds, retirement accounts, and life savings;
• Preserves homeownership and promotes jobs and economic growth;
• Promotes overall returns to the taxpayers of the United States; and
• Provides public accountability.” 

Treasury’s Objectives

Treasury has said that it aims to achieve the following critical objectives:  

• stabilize financial markets;
• reduce systemic risk;
• support the housing market by avoiding preventable foreclosures;
• supporting mortgage finance; and
• protect taxpayers.