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TAG Extenstion Falls Short in Senate

Posted on 12/13/2012

The U.S. Senate today voted against waiving a budget point of order to extend the TAG program for an additional two years, effectively preventing consideration of the legislation before it got to a vote on the substance of the issue. The Senate voted 50-42 to waive the budget point of order, falling 10 votes short of the 60 needed to proceed. Senator Conrad voted to in favor of waiving the budget order. Senator Hoeven did not vote on the issue as he was back in North Dakota attending the funeral of Spc. Tyler Orgaard.

The budget issue arose because the Congressional Budget Office (CBO) released an analysis estimating that a two-year TAG extension would cost $110 million over a 10-year period. This supposed "cost" would need to either be offset with other spending cuts or the Senate would have to vote to waive that budget concern; the vote today reflected the Senate's unwillingness to do so.

Absent unforeseen developments, the TAG program will expire at the end of the year.

Alternative to TAG:

NDBA has been working with Promontory Interfinancial Network, LLC for several years in offering the CDARS program to NDBA member banks. Promontory has a program called the Insured Cash Sweep (ICS) which will help banks that subscribe to it retain the business deposits now covered by TAG. The program gives banks the ability to offer access to FDIC-insurance on funds placed into demand deposit accounts as well as money market deposit accounts.

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