Get ready for the battle of TARP.

President Obama wants to use money from the Troubled Asset Relief Program -- so-called "bailout money" -- to provide loans to small businesses to hire more people, as well as reduce the federal budget deficit.

The program was due to expire this year, but Treasury Secretary Timothy Geithner said today he is extending it until Oct. 3.

Republicans, meanwhile, are moving to end the TARP program sooner rather than later; they argue that all the money unused or repaid by bailed-out banks should go to debt reduction.

"It shouldn't be recycled, respent, reused, and allowing TARP to become what is essentially a political slush fund," said Sen. John Thune, R-S.D.

During his jobs speech Tuesday, Obama said untapped TARP money can be used to reduce the deficit and help small businesses. He said the program is expected to cost $200 billion less than once thought, in addition to the repayments by banks and other financial institution that got TARP money.

"This gives us a chance to pay down the deficit faster than we thought possible and to shift funds that would have gone to help the banks on Wall Street to help create jobs on Main Street," Obama said.

Some of that debate takes place later this morning, as Obama discusses his new jobs plan with members of Congress from both parties.

(Posted by David Jackson)