The maximum authorized size of the 2008 U.S. Troubled Asset Relief Program was $700 billion.
Congress authorized TARP through the Emergency Economic Stabilization Act, signed on October 3, 2008. The program was designed to stabilize the financial system during the global crisis by allowing the U.S. Treasury to purchase or insure troubled assets and invest in financial institutions.
The program’s original authorization was $700 billion, although later legislation reduced the amount available to $475 billion. TARP was used for several initiatives, including capital purchases in banks, assistance to automobile manufacturers, and support for the American International Group rescue.
TARP is often described simply as a bank bailout, but its operations were broader. Some recipients repaid the government, and the program’s final financial result depended on the individual investments and assistance programs. The rescue remained politically controversial because taxpayers assumed risk while institutions received emergency support.