State Treasurers Urge Two-Year Extension of TAG Program

Treasurers Scheduled to Meet Senior Administration & U.S. Treasury Officials

Citing significant benefits to state and local governments and the U.S. banking system, members of the National Association of State Treasurers (NAST) are urging the White House and Congress to pass a two-year extension of the Transaction Account Guarantee (TAG) Program (ending Dec. 31, 2014). Representatives of NAST are scheduled to meet with senior White House and U.S. Treasury officials, along with Congressional leaders, over the next week to discuss the importance of, and need for, the successful TAG Program.

The Federal Deposit Insurance Corporation (FDIC) launched the TAG Program in 2008 in the midst of the global financial crisis. The TAG Program, through the FDIC, guarantees funds held in non-interest bearing transaction accounts. Its purpose is to strengthen confidence in the banking system and to ensure liquidity. The TAG Program is set to expire on Dec. 31, 2012 -- the very date the White House and Congress would need to reach resolution on issues relating to the "fiscal cliff."