Troubled Asset Relief Program (TARP)

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 Emergency Economic Stabilization Act of 2008 established OFS within the Office of Domestic Finance at the Department of the Treasury to implement TARP. OFS was not envisioned as a permanent organization. The authority to make new commitments through TARP ended October 3, 2010, at which time Treasury shifted focus to the orderly wind-down of TARP. As of September 30, 2023, all TARP programs have closed, and there are no remaining troubled assets held by OFS. During fiscal year 2023, OFS completed the wind down of its remaining housing programs under TARP and sold its last troubled assets from the Capital Purchase Program and Community Development Capital Initiative. This will be the last set of financial statements produced for TARP as there is no longer a legal requirement to produce future financial statements (12 U.S.C. § 5226(e)). OFS is also dissolving as an entity with only administrative functions remaining. Under the direction of Treasury, OFS will use fiscal year 2024 appropriations to carry out these administrative functions and completely wind down the entity. Further, Treasury will continue to monitor TARP’s Fund Balance with Treasury until the funding is transferred to the General Fund.

As of September 30, 2023, the total amount disbursed for TARP programs was $443.5 billion and OFS collected $425.5 billion (or $443.1 billion if including the $17.5 billion in proceeds from the additional Treasury American International Group, Inc. [AIG] shares) through repayments, sales, dividends, interest, and other income. After considering the interest expense of $13.1 billion, the net cost of TARP programs was $31.1 billion.

Table 1 provides a financial summary for TARP programs since its inception on October 3, 2008, through September 30, 2023.

Table 1: TARP Summary1
From TARP Inception through September 30, 2023
(Dollars in millions)
 Purchase Price or Guarantee AmountsTotal $ DisbursedInvestment RepaymentsWrite-offs and Losses4Received from InvestmentsInterest ExpenseNet Cost (Income)
Programs Closed During Fiscal Year 2023
Bank Support Programs       
Capital Purchase Program2 $           204,895 $       204,895 $        (199,675) $            5,220 $         (27,106) $             5,579 $          (16,307)
Community Development Capital Initiative                     570                 570                  (527)                    43                   (67)                     91                      68
Sub-total for Investment Programs              205,465          205,465           (200,201)               5,263            (27,173)                5,670             (16,240)
Treasury Housing Programs under TARP                31,447            31,447                        -                       -                        -                     (1)               31,446
Sub-total $           236,912 $       236,912 $        (200,201) $            5,263 $         (27,173) $             5,669 $            15,207
Programs Closed in Fiscal Years 2022 or Prior
Bank Support Programs       
Targeted Investment Program $             40,000 $         40,000 $          (40,000) $                    - $           (4,432) $                433 $            (3,998)
Asset Guarantee Program                  5,000                   -                        -                       -                (4,126)                   125               (4,001)
Credit Market Programs       
Public Private Investment Program                18,625            18,625             (18,625)                     -                (3,852)                1,118               (2,735)
Term Asset-Backed Securities Loan Facility                     100                 100                  (100)                     -                   (685)                     79                  (606)
SBA 7(a) Securities Purchase Program                     367                 367                  (363)                      4                   (13)                       4                      (4)
Other Programs       
Automotive Industry Financing Program                79,692            79,692             (63,037)             16,656              (7,589)                3,004               12,071
American International Group Investment Program3                67,835            67,835             (54,350)             13,485                 (959)                2,652               15,179
Sub-total $           211,620 $       206,620 $        (176,475) $          30,145 $         (21,654) $             7,414 $            15,905
Total for TARP Programs $           448,532 $       443,532 $        (376,676) $          35,407 $         (48,827) $           13,083 $            31,111
Note:  Figures may not foot due to rounding.               
1 This table shows TARP activity for the period from inception through September 30, 2023, on a cash basis. Received from investments includes dividends and interest income reported in the Statement of Net Cost, and Proceeds from sale and repurchases of assets in excess of costs.               
2 OFS received $31.9 billion in proceeds from sales of Citigroup common stock, of which $25.0 billion is included at cost in Investment Repayments, and $6.9 billion of net proceeds in excess of cost is included in Received from Investments.               
3 The amounts for AIG reflect only the operations of TARP and do not reflect proceeds received from the sale of shares of AIG common stock held by Treasury outside of TARP (additional Treasury shares).               
4 Losses represent proceeds less than cost on sales of assets, which are reflected under “net proceeds from sales and repurchases of assets in excess of (less than) cost” in Note 6 of the financial statements.

Table 2 provides information on how OFS’s ultimate lifetime cost of TARP has changed over time.

Table 2: Lifetime TARP Costs (Income)1
(Dollars in billions)
Lifetime Cost (Income) as of September 30
Bank Support Programs               
Capital Purchase Program($14.6)($11.2)($13.0)($14.9)($16.1)($16.1)($16.3)($16.3)($16.3)($16.3)($16.3)($16.3)($16.3)($16.3)($16.3)
Targeted Investment Program(1.9)(3.8)(4.0)(4.0)(4.0)(4.0)(4.0)(4.0)(4.0)(4.0)(4.0)(4.0)(4.0)(4.0)(4.0)
Asset Guarantee Program2(2.2)(3.7)(3.7)(3.9)(4.0)(4.0)(4.0)(4.0)(4.0)(4.0)(4.0)(4.0)(4.0)(4.0)(4.0)
Community Development Capital Initiative0.
Credit Market Programs               
Public Private Investment Program1.4(0.7)(2.4)(2.4)(2.7)(2.7)(2.7)(2.7)(2.7)(2.7)(2.7)(2.7)(2.7)(2.7)(2.7)
Term Asset-Backed Securities Loan Facility(0.3)(0.4)(0.4)(0.5)(0.6)(0.6)(0.6)(0.6)(0.6)(0.6)(0.6)(0.6)(0.6)(0.6)(0.6)
SBA 7(a) Securities Purchase ProgramN/A0.
Other Programs               
Automotive Industry Financing Program34.514.723.624.314.712.
American International Group Investment Program356.836.924.315.315.
Treasury Housing Programs under TARP50.045.645.645.637.737.437.434.732.632.532.832.432.332.231.4
Total $124.1$77.7$70.2$59.7$40.3$37.5$37.2$34.5$32.3$32.3$32.4$32.1$32.0$31.8$31.1
Note:  Figures may not foot due to rounding.
1 Program costs (+) or income (in parentheses) over the life of the program, including interest on reestimates and excluding administrative costs.
2 Prior to the termination of the guarantee agreement, OFS guaranteed up to $5.0 billion of potential losses on a $301.0 billion portfolio of loans.
3 The amounts for AIG reflect only the operations of TARP and do not reflect proceeds received from the sale of shares of AIG common stock held by Treasury outside of TARP (additional Treasury shares).

TARP Programs

Auto Industry

TARP helped prevent the collapse of the American auto industry, saving more than a million American jobs.

Bank Investment Programs

TARP helped stabilize America's banking system during the financial crisis.

Credit Market Programs

TARP helped restart the secondary credit markets which are essential to keeping credit flowing to households and businesses.

Executive Compensation

Treasury issued standards governing executive compensation at financial institutions that received assistance under TARP. These standards are implemented and are overseen by the Office of the Special Master.​​​


TARP helped prevent avoidable foreclosures and keeps families in their homes.

Investment in AIG

The Federal Reserve and Treasury took action to stabilize AIG because its failure during the financial crisis would have had a devastating impact on our financial system and the economy.