The U.S. Congress initially authorized $700 billion for the Troubled Asset Relief Program during the 2008 financial crisis.
The Emergency Economic Stabilization Act of 2008 created TARP in response to the severe disruption in credit and financial markets. The program was intended to purchase or insure troubled assets, including mortgage-related securities, and later supported investments in banks and the automobile industry.
The original law authorized up to $700 billion, although Congress later reduced the maximum amount available to $475 billion. The Treasury ultimately committed less than the full original authorization, and many TARP investments were repaid, with the government receiving proceeds from some transactions.
TARP is often described as a bank bailout, but its activities were broader. It included the Capital Purchase Program for financial institutions, assistance for automakers, and programs connected with mortgage relief. The authorization figure is therefore not identical to the amount permanently spent or the eventual net cost.