Treasury established several programs under TARP to help stabilize the U.S. financial system, restart economic growth, and prevent avoidable foreclosures.
Although Congress initially authorized $700 billion for TARP in October 2008, that authority was reduced to $475 billion by the Dodd-Frank Wall Street Reform and Consumer
Protection Act (Dodd-Frank Act).Of that, the following amounts were committed through TARP's five program areas:
- Approximately $250 billion was committed in programs to stabilize banking institutions ($5 billion of which was ultimately cancelled).
- Approximately $27 billion was committed through programs to restart credit markets.
- Approximately $82 billion was committed to stabilize the U.S. auto industry ($2 billion of which was ultimately cancelled).
- Approximately $70 billion was committed to stabilize American International Group (AIG) ($2 billion of which was ultimately cancelled).
- Approximately $46 billion was committed for programs to help struggling families avoid foreclosure, with these expenditures being made over time.
The authority to make new financial commitments under TARP ended on October 3, 2010. As of April 30, 2013, Treasury has recovered almost 95 percent of the funds disbursed through the program and is now winding down its remaining TARP investments. Treasury is also continuing to implement TARP initiatives to help struggling homeowners avoid foreclosure.