The U.S. government on Tuesday said that it will spend $6.5 million by the end of January in salaries and other administrative costs for the $700 billion financial rescue program. The Treasury Department estimate was part of the latest update it is required to provide Congress on the operation of the largest government bailout effort in history. Treasury projected that it would spend nearly $1.2 million on salaries through the end of January and more than $5.3 million on other expenses. The biggest expense category was for “other services,” which amounted to nearly $5 million. The new report, which updates the activities in the rescue program since the first accounting was provided to Congress on December 5, provided details on the emergency loans that the administration of U.S. President George W. Bush decided to provide to the auto industry from the bailout program after Congress was unable to pass legislation to help the automakers. The Bush administration announced that it would lend $17.4 billion to General Motors and Chrysler in an effort to buy them time to reorganize and avoid having to file for bankruptcy. Treasury Secretary Henry Paulson has said that with the auto loans, the administration has obligated the first half of the $700 billion rescue program and he has called on Congress to authorize use of the second $350 billion. However, the administration said Monday that it has not yet submitted to Congress a report required by law that would spell out how the second $350 billion would be used.
