The White House calls an expected round of bonus payments by AIG, "outrageous".
The giant insurance company is expected on Tuesday to announce payments of $US100 million to its financial products division.
Pay czar Kenneth Feinburg said the bonuses were the result of old contracts, but by March they would be "a thing of the past".
AIG received $US182.3 billion in federal aid in 2008. Employees have already given back $US39 million of earlier bonuses.
Mr Feinberg is "insisting" that AIG employees repay a further $US6.7 million - $US7 million of previous bonus payments.
However, Senator Charles Grassley (Republican) says the administration has been outmanoeuvred and "AIG has taxpayers over a barrel".
Mr Feinberg oversees the pay deals of senior bosses at banks and other financial groups which received financial support from the US government under the Troubled Asset Relief Programme.