More Clunker Cash?

Looks like Congress will provide billions more free money so people can turn in good cars to get new ones that get as little as 1 mile/gallon better milage. What a waste of taxpayer money. How can dealers make deals this weekend without knowing if the Senate will approve the extension? If this is the way government runs this program how can we have any confidence in them running healthcare?-Lou

House Votes to Extend 'Clunkers' Program

The House voted Friday to transfer $2 billion in emergency funding from the economic stimulus plan to the "cash for clunkers" program, ensuring it has sufficient funds to continue.

The move follows a scramble Thursday after it emerged that the initial $1 billion allocated to the clunkers program may have been close to exhausted after just one week. The legislation would shift $2 billion from the $787 billion stimulus plan to the program.

The House voted 316 to 109 to approve the extension. Because the measure was placed on the suspension calendar, it required two-thirds of lawmakers' support to carry it.
The clunkers program, which began last week, offers consumers vouchers for as much as $4,500 to trade in their gas guzzlers for new, more fuel-efficient models.

As of Friday morning, the National Highway Traffic Safety Administration, which is handling the clunker rebates, has processed $250 million in vouchers, the Transportation Department told auto makers and industry lobbying groups, a person said. NHTSA is doubling the number of people it has reviewing voucher applications to speed up the process, this person said.

The National Auto Dealers Association said it has been given "specific assurances" by the Obama administration that all clunkers deals closed on Friday will be honored. Despite the assurances, however, the organization's chairman reiterated concerns that the clunkers program could run out of funding and that some dealers might not be reimbursed for rebates extended to customer.

"Until further definitive guidance on the availability of funding is provided by the Administration, dealers who accept additional 'clunkers' deals may face a risk that they will not be reimbursed," John McEleney said.

House Speaker Nancy Pelosi (D., Calif.) voiced support for efforts to add funding to the program.
"Both sides of the aisle, people acknowledge the effectiveness of this initiative," Ms. Pelosi said on the House floor, adding that early evidence showed that the program was exceeding its environmental targets. But she added that she had a "concern" about the source of funding for restoring clunkers monies -- an energy program in the economic stimulus package.

Ms. Pelosi said she hoped that any funds taken from the energy program would eventually be restored.

The Senate won't consider an extension until next week, according to Sens. Carl Levin (D., Mich.) and Debbie Stabenow (D., Mich.). Even then, it is not certain the measure will be approved in the Senate without extensive debate.

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