Indiana Challenges Constitutionality of TARP Money for Auto Bailout
Thursday, June 04, 2009
By Fred Lucas, Staff Writer




In this Sept. 12, 2008 file photo, assembly operator Yolanda Germany looks over door molding on Chrysler's new 2009 Dodge Ram pickup at the Warren Truck Plant in Warren, Mich. (AP Photo/Carlos Osorio, file)(CNSNews.com) – A lawsuit from the state of Indiana challenging the constitutionality of using federal Troubled Asset Relief Program (TARP) funds for automakers, is headed to a federal appeals court.

While most public attention this week focused on the bankruptcy of General Motors, the U.S. Court of Appeals for the 2nd Circuit in New York halted the sale of Chrysler to Italian automaker Fiat Group, announcing it would hear arguments from the Indiana State Police Pension Fund, the Indiana Teacher’s Retirement Fund, and the Major Moves Construction Fund on Friday at 2 p.m.

Among the challenges the state is making to block the sale, is that using money from TARP is not constitutional because Congress only approved the use of that money for financial institutions such as banks, insurance firms and credit unions.

“The administration misappropriated funds because it is stated in the law this is for financial institutions,â€