Grassley criticizes GM loan repayment with bailout funds

In a letter to Grassley, Treasury defended the actions, calling it "good news for the company, our investment and American people."

While GM has used that money in the escrow fun it has left a $2.5 billion loan unpaid to the union health benefit fund, Grassley said. 

GM, which could make a profit within the next couple of quarters after only emerging from bankruptcy last summer, has estimated that an initial public offering could relieve the Treasury Department of its obligation.