US treasury secretary Henry Paulson on Friday said he planned to discuss the release of the second half of a $700 billion bank bailout fund with key lawmakers in Congress.

Roughly the entire first half of the bailout funds has been allocated, after the White House announced Friday it was providing $13.4 billion to General Motors and to Chrysler, which is owned by Cerberus Capital Management. Congress and the White House created the bank bailout fund, known as the Troubled Asset Relief Program (TARP), on 3 October.

Of the $13.4 billion going to the automakers, General Motors will receive $9.4 billion of the remaining bailout funds and Chrysler; will receive a $4 billion injection. An additional $4 billion for General Motors would require congressional approval as part of the additional $350 billion in funds. (See: Bush offers $17.4 billion to bail out GM, Chrysler)

The following gives the break-up of the $350 billion spent so far:

1. $168 billion in loans to 116 banks.
2.  $82 billion to capitalize more banks.
3. $40 billion of preferred shares bought in AIG.
4. $20 billion committed to back any losses incurred by the Federal Reserve Bank of New York on loans.
5. $20 billion committed to invest in Citigroup.
6. $13.4 billion for GM and Chrysler.

"It is clear, however, that Congress will need to release the remainder of the TARP to support financial market stability," Paulson said in a statement. "I will discuss that process with the congressional leadership and the President-elect's transition team in the near future."

To obtain the second $350 billion in capital, Treasury needs to submit a report to Congress on how it plans to use the funds and any additional steps it will take to assist homeowners facing foreclosure.

Once Congress receives a request from Treasury for the second $350 billion in TARP funds, lawmakers have 15 days to decide whether to bring it to a vote on the House and Senate floor.

If a majority of lawmakers in both houses vote against the request, it can be rejected as part of a legislative procedure known as a "resolution if disapproval" or congressional veto. However, the White House can veto the resolution and the additional funds can still be provided to Treasury.

Lawmakers will agree to release the funds in exchange for Paulson and Obama agreeing to programs that cut interest rates and forgive a portion of a mortgage's principal, House Financial Services Committee Chairman Barney Frank said yesterday.

Frank said he's drafting legislation with Senate Banking Committee Chairman Christopher Dodd that would release the remaining $350 billion in exchange for foreclosure help, aid for General Motors and Chrysler and provisions to hold banks accountable for stepped up lending to consumers.

The measure would adopt a Federal Deposit Insurance Corp. (FDIC) foreclosure plan, revamp the Hope for Homeowners loan-relief program that has attracted few lenders and support a Treasury program to cut rates on some fixed-rate home-loans. He said the legislation will include FDIC Chairman Sheila Bair's foreclosure-prevention plan, which provides a US guarantee for troubled mortgages to spur loan modifications.

Paulson has declined to adopt the proposal, while Bair has said the law enacted in October gives the Treasury authority to fund a plan she said might prevent 1.5 million foreclosures through next year at a cost of $24 billion. US foreclosure filings climbed 28 percent in November from a year earlier.