In response to the current economic crisis, the Senate and House of Representative have passed the Emergency Economic Stabilization Act of 2008 (PDF), a bill intended to stabilize the financial system and restore confidence in the economy. President Bush signed the bill shortly after passage.

Learn more about this legislation from the summary below, a brief synopsis, or a detailed summary.

How they voted
See how your Senators voted
See how your Representative voted

What’s included

• Troubled Assets Relief Program: Authorizes the Secretary of the Treasury to purchase $700 billion in troubled mortgage-related assets; requires Congressional oversight; restricts excessive executive compensation; and helps homeowners by excluding from taxable income any of their debts that are canceled as part of refinancing or foreclosures.
• FDIC Limit Raised: Bank deposit insurance raised from $100,000 to $250,000
• Alternative Minimum Tax: Exempts 22 million taxpayers who would otherwise have to pay the alternative minimum tax due to inflation.
• Charitable Incentives: Restores and extends through 2009 the IRA rollover and food inventory giving incentives. The legislation also temporarily lifts the limits on individual (50%) and corporate (10%) for cash contributions to Midwestern flood relief and aids some volunteers by increasing the mileage deduction and exempting from taxable income mileage reimbursements for driving to assist in flood recovery.
• Mental Health Parity: Prohibits discrimination in insurance coverage for mental health conditions.

As part of the Emergency Economic Stabilization Act of 2008 (H.R.1424), the House of Representative voted October 3rd to restore and extend the IRA charitable rollover giving incentive through 2009. The Senate passed identical language earlier in the week and President Bush is expected to sign it into law soon.

Last updated: October 3, 2008