The Emergency Economic Stabilization Act of 2008 (EESA) was a pivotal United States federal law enacted in response to the subprime mortgage crisis and the ensuing Great Recession. Proposed by Treasury Secretary Henry Paulson, the legislation authorized the creation of the $700 billion Troubled Asset Relief Program (TARP) to stabilize the financial system during the crisis. Initially rejected by the House of Representatives in September 2008, a revised version was passed by the Senate on October 1, 2008, by a 74-25 vote, and subsequently by the House, before being signed into law by President George W. Bush on October 3, 2008, as Public Law 110-343. The Act also included provisions for homeowner relief, tax incentives for businesses, and temporary increases in deposit insurance coverage to $250,000, aiming to protect consumers and prevent broader economic collapse. The EESA established the Office of Financial Stability within the Department of the Treasury to implement TARP, focusing initially on capital injections into major banks and later expanding to support entities like AIG. While proponents argued it was essential to avert a total banking collapse and minimize economic damage, critics condemned it as an unfair subsidy for financial institutions with little accountability for executives. Over time, TARP funds were largely repaid with interest, resulting in a net profit for taxpayers estimated at around $15 billion by the Treasury, though the program's implementation faced ongoing scrutiny for its role in moral hazard and influence on financial regulations. The Act's legacy includes influencing subsequent reforms like the Dodd-Frank Act and highlighting tensions between government intervention and market principles during crises.