Government Cash for Clunkers
06-15-2009, 10:01 AM
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Government Cash for Clunkers House, Senate teams OK $1B 'cash for clunkers' program
Gordon Trowbridge / Detroit News Washington Bureau
Washington -- House and Senate negotiators reached agreement late Thursday on a $106 billion wartime spending bill that includes $1 billion for a "cash for clunkers" program to boost auto sales.
The program would offer vouchers of up to $4,500 for car buyers who turn in old, gas-guzzling cars and trucks for new, more fuel-efficient models. Auto state lawmakers, carmakers and dealers have sought the measure as a partial antidote for auto sales that have plunged 40 percent or more in the face of a deep recession.
The House and Senate are expected to pass the compromise version of the spending bill next week. But the $1 billion set aside for the auto-purchase program is far short of the full cost of such an effort, estimated at $4 billion. The $1 billion is expected to fund the program through Sept. 30, the end of this fiscal year, according to two congressional sources close to the negotiations who asked to remain anonymous.
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This week, Sen. Debbie Stabenow, D-Lansing, who sponsored the Senate version of "cash for clunkers" legislation, said she was comfortable with winning approval for money to start the program, with the idea that additional funding could be approved later.
Legislation establishing a program passed the House this week, but Senate supporters had struggled to overcome disputes over funding and mileage requirements. Those concerns are unlikely to derail the war-funding bill, which includes $51 billion for operations in Iraq and Afghanistan, $5 billion to support the governments of Iraq, Afghanistan and other allies and other spending with broad support.
The agreement reached Thursday includes the same mileage and other requirements as the measure approved by the House on Tuesday, said the congressional sources.
Under the program, owners of cars rated at 18 mpg or less in combined highway and city mileage could turn them in for a cash voucher. Buying a new car rated at least 4 mpg higher would earn a $3,500 voucher; a 10 mpg improvement would earn a $4,500 voucher.
Pickups would be eligible as long as the new vehicle has a mileage rating of at least 18 mpg and is at least 2 mpg higher than the old vehicle. A new truck rated at least 5 mpg higher than the turned-in vehicle would earn a $4,500 voucher.
Under the program, vehicles turned in would be scrapped.
Gordon Trowbridge / Detroit News Washington Bureau
Washington -- House and Senate negotiators reached agreement late Thursday on a $106 billion wartime spending bill that includes $1 billion for a "cash for clunkers" program to boost auto sales.
The program would offer vouchers of up to $4,500 for car buyers who turn in old, gas-guzzling cars and trucks for new, more fuel-efficient models. Auto state lawmakers, carmakers and dealers have sought the measure as a partial antidote for auto sales that have plunged 40 percent or more in the face of a deep recession.
The House and Senate are expected to pass the compromise version of the spending bill next week. But the $1 billion set aside for the auto-purchase program is far short of the full cost of such an effort, estimated at $4 billion. The $1 billion is expected to fund the program through Sept. 30, the end of this fiscal year, according to two congressional sources close to the negotiations who asked to remain anonymous.
Advertisement
This week, Sen. Debbie Stabenow, D-Lansing, who sponsored the Senate version of "cash for clunkers" legislation, said she was comfortable with winning approval for money to start the program, with the idea that additional funding could be approved later.
Legislation establishing a program passed the House this week, but Senate supporters had struggled to overcome disputes over funding and mileage requirements. Those concerns are unlikely to derail the war-funding bill, which includes $51 billion for operations in Iraq and Afghanistan, $5 billion to support the governments of Iraq, Afghanistan and other allies and other spending with broad support.
The agreement reached Thursday includes the same mileage and other requirements as the measure approved by the House on Tuesday, said the congressional sources.
Under the program, owners of cars rated at 18 mpg or less in combined highway and city mileage could turn them in for a cash voucher. Buying a new car rated at least 4 mpg higher would earn a $3,500 voucher; a 10 mpg improvement would earn a $4,500 voucher.
Pickups would be eligible as long as the new vehicle has a mileage rating of at least 18 mpg and is at least 2 mpg higher than the old vehicle. A new truck rated at least 5 mpg higher than the turned-in vehicle would earn a $4,500 voucher.
Under the program, vehicles turned in would be scrapped.
