WASHINGTON - President Bush agreed yesterday, at the request of President-elect Barack Obama, to formally ask Congress for the second $350 billion tranche of the Troubled Assets Relief Program, a move that is expected to lead to long-sought, direct federal help for state and local governments.

"This morning, President-elect Obama asked President Bush to formally notify Congress, on his behalf, of his intent to exercise the authority under the Emergency Economic Stabilization Act to access the last tranche of $350 billion in funding for Treasury programs addressing the financial crisis," White House press secretary Dana Perino said in a statement. "President Bush agreed to the president-elect's request."

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.