April 28, 2009 – Federal subsidies to Fannie Mae and Freddie Mac are projected to reach $290 billion in fiscal year 2009 and total $389 billion between fiscal years 2009 and 2019. Using numbers from the Congressional Budget Office (CBO), Subsidyscope finds that the projected costs of subsidizing Fannie and Freddie exceed the subsidies provided by the Treasury’s Troubled Asset Relief Program (TARP), which are expected to total $356 billion over the same 2009-2019 period. Fannie Mae and Freddie Mac are government-sponsored enterprises that purchase mortgages and guarantee pools of mortgages. Read more about subsidies to Fannie and Freddie »

The TARP subsidy estimates, highlighted by CBO Director Doug Elmendorf in a recent blog post, have risen sharply since the agency’s January projection of $189 billion. The new estimates nearly double the total subsidy rate for TARP from 27 percent to 51 percent. In a March report, CBO explains that the revised estimates result from three factors, including "changes in financial market conditions, new transactions, and a small shift in the anticipated timing of disbursements." Read more about TARP subsidies »