Friday, July 31, 2009

House Approves Additional $2 Billion for Clunkers

Due to popular demand, the US House of Representatives approved legislation to give an additional $2 billion to CARS.
The US House of Representatives passed legislation Friday that willcontinue a program designed to trade in inefficient cars for new ones, justone day after the week-old $1 billion effort exhausted its funds due tocustomers rapidly trading in their old vehicles.

The "Cash-for-Clunkers" legislation gives $2 billion to the Department ofTransportation out of the Obama administration's $787 billion economicstimulus
bill. The lopsided 316-109 vote showed huge support for a program,which is supported by auto manufacturers, unions, and dealers.

DOT launched the program last week after the legislation became law this summer.It originally included $1 billion to get 250,000 cars traded in fornew ones, but DOT and the White House informed Congress Thursday the money wasexhausted.

"This is an unprecedented success," said Representative Betty Sutton, an Ohio Democrat who introduced the original legislation creating the program.

Consumers could get $3,500 or $4,500 rebates to hand in their old car.The size of the rebate depends upon the fuel economy of the original vehicleand of the new vehicle, with more money going toward a greater difference inthe two.

The money to keep the program alive will be taken out of the $6 billionrenewable energy loan guarantee program run by the Department of Energy. The$2 billion taken out of the renewables program was intended to be spent nextyear but Democratic leadership determined that it could be better spent now oncash-for-clunkers.
- Brewskie

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