WASHINGTON, Jan. 15 (Xinhua) -- U.S. Senate Thursday approved to release the remaining 350 billion dollars from the 700 billion dollars financial bailout package, clearing the way for a new infusion of bailout cash for the financial industry
The request to block the funds' released was denied by a vote of 52-42 after former Treasury secretary Larry Summers, who will be President-elect Barack Obama's top economic adviser, promised that up to 100 billion dollars of the remaining funds would be spent on tackling the U.S. home mortgage crisis.
U.S. President George W. Bush, acting on behalf of Obama, on Monday asked Congress for the remaining money from the 700 billion dollars financial bailout package which was passed by Congress in October.
"We have shared design and analysis of several foreclosure mitigation options with the transition team and anticipate the remaining funds will be used in part for a foreclosure mitigation program and for expansion of existing programs," said a White House report.
The Bush administration "believes that submission of this report at this time is consistent with the continued need to promote financial market stability," it added.
But the White House said that the current administration had no intention of allocating additional funds from the 350 billion dollars.
Under the 700 billion dollars bailout legislation approved by Congress in October, unless Congress passed a joint resolution rejecting the request within 15 days, Treasury can begin tapping the funds.
Obama, who has vowed to veto any resolution denying him the fund, said he wants to use the money to unclog the credit markets and extend loans to consumers, small businesses and municipalities.
Obama's lobbying effort culminated in a closed-door meeting Wednesday between Senate Republicans, Larry Summers and incoming White House Chief of Staff Rahm Emanuel, according to U.S. media.
"These folks have much more credibility already than Secretary (Henry) Paulson," said Republican Senate Jim DeMint.
"President-elect Obama has made clear he understand the mistake of the previous administration, and he will try to correct them," said Senate Majority Leader Harry Reid, noting that "inaction now would punish the American public that is already suffering."