To apply recaptured taxpayer investments toward reducing national debt.

1. Adds TITLE XIII--PAY IT BACK ACT at the end of the bill

   Adds a title

   Inserted: TITLE XIII--PAY IT BACK ACT

   Inserted: SEC. 1301. SHORT TITLE.

   Inserted: This title may be cited as the "Pay It Back Act".

   Inserted: SEC. 1302. AMENDMENT TO REDUCE TARP AUTHORIZATION.

   Inserted: Section 115(a) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5225(a)) is amended--

   Inserted: (1) in paragraph (3)--

   Inserted: (A) by striking "If" and inserting "Except as provided in paragraph (4), if";

   Inserted: (B) by striking ", $700,000,000,000, as such amount is reduced by $1,259,000,000, as such amount is reduced by $1,244,000,000" and inserting "$550,000,000,000"; and

   Inserted: (C) by striking "outstanding at any one time"; and

   Inserted: (2) by adding at the end the following:

   Inserted: "(4) If the Secretary, with the concurrence of the Chairman of the Board of Governors of the Federal Reserve System, determines that there is an immediate and substantial threat to the economy arising from financial instability, the Secretary is authorized to purchase troubled assets under this Act in an amount equal to amounts received by the Secretary before, on, or after the date of enactment of the Pay It Back Act for repayment of the principal of financial assistance by an entity that has received financial assistance under the TARP or any other program enacted by the Secretary under the authorities granted to the Secretary under this Act, but only--

   Inserted: "(A) to the extent necessary to address the threat; and

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   Inserted: "(B) upon transmittal of such determination, in writing, to the appropriate committees of Congress.".

   Inserted: SEC. 1303. REPORT.

   Inserted: Section 106 of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5216) is amended by inserting at the end the following:

   Inserted: "(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).".

   Inserted: SEC. 1304. AMENDMENTS TO HOUSING AND ECONOMIC RECOVERY ACT OF 2008.

   Inserted: (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--

   Inserted: (1) by redesignating subparagraph (C) as subparagraph (D); and

   Inserted: (2) by inserting after subparagraph (B) the following:

   Inserted: "(C) Deficit reduction.--The Secretary of the Treasury shall deposit in the General Fund of the Treasury any amounts received by the Secretary from the sale of any obligation acquired by the Secretary under this subsection, where such amounts shall be--

   Inserted: "(i) dedicated for the sole purpose of deficit reduction; and

   Inserted: "(ii) prohibited from use as an offset for other spending increases or revenue reductions.".

   Inserted: (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--

   Inserted: (1) by redesignating subparagraph (C) as subparagraph (D); and

   Inserted: (2) by inserting after subparagraph (B) the following:

   Inserted: "(C) Deficit reduction.--The Secretary of the Treasury shall deposit in the General Fund of the Treasury any amounts received by the Secretary from the sale of any obligation acquired by the Secretary under this subsection, where such amounts shall be--

   Inserted: "(i) dedicated for the sole purpose of deficit reduction; and

   Inserted: "(ii) prohibited from use as an offset for other spending increases or revenue reductions.".

   Inserted: (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--

   Inserted: (1) by redesignating subparagraph (C) as subparagraph (D); and

   Inserted: (2) by inserting after subparagraph (B) the following:

   Inserted: "(C) Deficit reduction.--The Secretary of the Treasury shall deposit in the General Fund of the Treasury any amounts received by the Secretary from the sale of any obligation acquired by the Secretary under this subsection, where such amounts shall be--

   Inserted: "(i) dedicated for the sole purpose of deficit reduction; and

   Inserted: "(ii) prohibited from use as an offset for other spending increases or revenue reductions.".

   Inserted: (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--

   Inserted: (1) dedicated for the sole purpose of deficit reduction; and

   Inserted: (2) prohibited from use as an offset for other spending increases or revenue reductions.

   Inserted: SEC. 1305. FEDERAL HOUSING FINANCE AGENCY REPORT.

   Inserted: 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.

   Inserted: SEC. 1306. REPAYMENT OF UNOBLIGATED ARRA FUNDS.

   Inserted: (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:

   Inserted: "(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--

   Inserted: "(1) rescinded; and

   Inserted: "(2) deposited in the General Fund of the Treasury where such amounts shall be--

   Inserted: "(A) dedicated for the sole purpose of deficit reduction; and

   Inserted: "(B) prohibited from use as an offset for other spending increases or revenue reductions.".

   Inserted: (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:

   Inserted: "SEC. 1613. WITHDRAWAL OR RECAPTURE OF UNOBLIGATED FUNDS.

   Inserted: "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--

   Inserted: "(1) rescinded; and

   Inserted: "(2) deposited in the General Fund of the Treasury where such amounts shall be--

   Inserted: "(A) dedicated for the sole purpose of deficit reduction; and

   Inserted: "(B) prohibited from use as an offset for other spending increases or revenue reductions.".

   Inserted: (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--

   Inserted: (1) striking "All funds" and inserting "(a) In General.--All funds"; and

   Inserted: (2) adding at the end the following:

   Inserted: "(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--

   Inserted: "(1) dedicated for the sole purpose of deficit reduction; and

   Inserted: "(2) prohibited from use as an offset for other spending increases or revenue reductions.

   Inserted: "(c) Presidential Waiver Authority.--

   Inserted: "(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.

   Inserted: "(2) Requests.--The head of an executive agency may also apply to the President for a waiver from the requirements under subsection (b).".

   Original wording

   At the end of the bill, insert the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed