Short title

This Act may be cited as the

Pay It Back Act

Findings

Congress finds that— (1)the Congressional Budget Office estimates that the deficit for this fiscal year will reach $1.6 trillion or 11 percent of the Gross Domestic Product; (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 trillion; and (4)given the choice between forcing our children 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.

Amendment to TARP authorization

Section 115(a)(3) of the Emergency Economic Stabilization 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 aggregate, as has been obligated or expended under this Act as of the date of enactment of the Pay It Back Act).

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 and transferred to the general fund under subsection (d).

Amendments to Housing and Economic Recovery Act of 2008

(a)

Sale of Fannie Mae obligations and securities by the Treasury; deficit reduction

Section 304(g)(2) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1719(g)(2)) is amended— (1)by redesignating subparagraph (C) as subparagraph (D); and (2)by inserting after subparagraph (B) the following:

(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 deposited— (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.

(b)

Sale of Freddie Mac obligations and securities 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 subparagraph (D); and (2)by inserting after subparagraph (B) the following:

(C)

Deficit reduction

(c)

Sale of Federal Home Loan Banks obligations by the Treasury; deficit reduction

Section 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 subparagraph (D); and (2)by inserting after subparagraph (B) the following:

(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 acquired by the Secretary under this subsection; and (ii)ensure that such amounts so deposited— (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 commitment fee or any other fee or assessment paid by the Federal National Mortgage Association or Federal Home Loan Mortgage Corporation to the Secretary of the Treasury 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 section 1117 of the Housing and Economic Recovery Act of 2008 (Public Law 110–289; 122 Stat. 2683), including any fee agreed to by contract between the Secretary and the Association or Corporation, shall be deposited in the General Fund of the Treasury where such amounts shall be— (1)dedicated for the sole purpose of deficit reduction; and (2)prohibited from use as an offset for other spending increases or revenue reductions.

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 guaranteeing that the American taxpayer will not suffer unnecessary losses.

Repayment of unobligated ARRA funds

(a)

Rejection of ARRA funds by State

Section 1607 of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 305) 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)be deposited in the General Fund of the Treasury where such amounts shall be— (A)dedicated for the sole purpose of deficit reduction; and (B)prohibited from use as an offset for other spending increases or revenue reductions.

(b)

Withdrawal or recapture of unobligated funds

Title XVI of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 302) is amended by adding at the end the following:

1613.

Withdrawal or recapture of unobligated funds

Notwithstanding any other provision of this Act, if the head of any executive agency withdraws or recaptures for any reason funds appropriated or otherwise made available under this division, and such funds 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 deficit reduction; and (B)prohibited from use as an offset for other spending increases or revenue reductions.

(c)

Return of unobligated funds by end of 2012

Section 1603 of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 302) is amended by— (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 division 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 reduction; and (2)prohibited from use as an offset for other spending increases or revenue reductions. (c)

Presidential waiver authority

(1)

In general

The President may waive the requirements under subsection (b), if the President determines that it is not in the best interest of the Nation to rescind a specific unobligated amount after December 31, 2012. (2)

Requests

The head of an executive agency may also apply to the President for a waiver from the requirements under subsection (b).

Reduction of statutory limit on the public debt

Section 3101 of title 31, United States Code, is amended— (1)in subsection (b), by inserting ‘‘minus the aggregate amounts described in subsection (d)’’ before ‘‘, outstanding at one time’’; and (2)by inserting at the end the following:

(d)Amounts described in this subsection are any amounts received by the Secretary of the Treasury pursuant to— (1)section 106(d) of the Emergency Economic Stabilization Act of 2008 before, on, or after the date of enactment of this subsection; and (2)section 304(g) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1719(g)), section 306(l) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1455(l)), section 11(l) of the Federal Home Loan Bank Act (12 U.S.C. 1431(l)), section 1607(d) of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 305), section 1613 of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 302), and sections 5(d) and 7(c) of the Pay It Back Act after the date of enactment of this subsection.