What does congress intend to do with the $700 bn if the bill is ped? Where will the money actually go?

It will be used to buy bundles of sub-prime (junk) mortgages from banks whose ability to operate is being dragged down by the bad paper. The mortgages are still backed by actual real estate but they are not worth as much as the banks loaned out. The theory is that the banks will bounce back faster and be looser with loans, and a recovering economy will bring home prices back up, and the mortgages can be put back on the market to get the $700B off the books. It could even turn a profit.