A $2.5 billion levy would be imposed on hedge fund managers with more than $10 billion in assets and financial firms with more than $50 billion to cover the costs of housing programs targeted for cuts, according a House bill proposed by Rep. Barney Frank, D-Mass.
The money would be collected through risk-based assessments.
Republicans have targeted four housing programs as they attempt to cut back on federal spending, voting earlier this week to eliminate the Neighborhood Stabilization Program. They are also scheduled to vote on eliminating the Obama administration's signature foreclosure-prevention effort, the Home Affordable Modification Program.
Mr. Frank proposed a similar levy last year to cover the cost of the Dodd-Frank financial regulation law. That fee, which would have raised $19 billion, was cut from the bill to gain the support of Sen. Scott Brown, R-Mass., who joined Democrats in passing the broader regulatory overhaul.