House Approves $2 Billion 'Clunker' Extension, but Trouble Looms in the Senate
By Scott Doggett July 31, 2009
The U.S. House of Representatives, by a vote of 316-109, today approved a $2 billion extension of the "Cash-for-Clunkers" automobile sales incentive program.
The Democratic proposal would run through September 30, 2010, and tap funds from an Energy Department loan guarantee program included in the economic stimulus package enacted in February.
An initial $1 billion in funding approved this summer to boost stagnant industry sales has already been exhausted, officials said.
Consumers stormed dealers over the past month to take advantage of federally backed rebates of up to $4,500 on trade ins of gas guzzlers for more fuel efficient vehicles.
Unofficial government and industry estimates show that close to 250,000 vehicles were sold under the program.
The Senate is expected to vote on the House bill next week.
Already a key senator, Energy Committee Chairman Jeff Bingaman, said he opposes using Energy Department funds for the auto program.
Another senator, auto industry ally Debbie Stabenow, said pushing the measure out of Congress would potentially take a lot of work compared to the extraordinarily swift action in the House.
The White House supports new funding for the program on grounds the initiative so far has provided a viable, national economic stimulus amid recession.
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