White House expected to utilize saved money in funding massive job creation program, according to officials. New York, USA: The Obama Administration is expected to cut the estimated cost of the Troubled Asset Relief Program by $200 billion, and will invest the fund in a massive federal jobs program. The latest projection, which will be officially declared by the White House this week, would lessen TARP's price tag to $141 billion, according to a Treasury Department official. President Obama will likely recommend using the $200 billion to initiate a series of projects, that include building bridges and roads, and weatherizing homes, as well as providing aid to the unemployed and to small businesses. Such a move is set to draw the ire of Republican lawmakers, who is against use of any leftover bailout funds that has been paid back by banks for any new projects. Many have not only proposed closing the program altogether, but also argued that any unallocated TARP funds should go toward decreasing the nation's bloated deficit. According to an estimate made by Treasury, the annual deficit for fiscal year 2010 will hit a record $1.5 trillion. In August, the administration had projected that the long-term costs of running TARP would reach $341 billion. Even after the deduction of TARP cost, American public is expected to incur a massive loss at the end of fiscal year. A separate estimate issued earlier this year by the Congressional Budget Office warned that TARP will ultimately cost country taxpayers around $159 billion. Office of the Special Inspector General, a watchdog group created to monitor TARP program informed that it is doubtful that government will able to recoup funds invested in subsidiary programs like 'Making Home Affordable' and programs run to rescue companies like General Motors, Chrysler and insurer AIG. AIG for example said it has not generated enough profit to repay government's debt and a company named CIT group filed for bankruptcy after availing help fund from government.
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