Thune is calling for ending the TARP program and directing all remaining funds toward paying down the national debt. He has also called for mandating that all repaid TARP funds go toward paying down the debt and for setting a legal date by which the federal government is required to end its ownership stake in private companies such as General Motors and Chrysler.
But Johnson said he believes that's bad policy.
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"I think it's premature to tie the hands of the Treasury Department at this point," he said. "I think some flexibility in the TARP program is still necessary at this point."
Johnson voted against the $700 billion TARP program when it was first proposed by President George W. Bush, but voted in favor of allowing President Barack Obama access to the second half of the funds in January.
Thune voted for the $700 billion when Bush proposed it and against allowing Obama access to the second half. In both cases the two were joined by the majority of their party — Republicans voted to give the money to a Republican president and against giving it to a Democratic president, and vice versa.
Johnson said he believes the TARP funds prevented a second Great Depression and beleives the economy is still too shaky to pull federal funds out now.
"I think that there are good signs that the economy is pulling out of the recession, but I think it's premature to declare victory," he said. "The economy is still shaky and the high unemployment rate continues unabated."
Johnson said he agrees with Thune in principle but thinks his Republican colleague is acting prematurely by setting deadlines and tying the hands of federal officials.
"Although I applaud Sen. Thune's inclination to speed up the process, I think it's too soon to set a date certain," Johnson said. "Setting a date certain seems to tie the hands of the Treasury Department. I hate to see that."
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