WDBJ7 Roanoke News and Weather NRV Lynchburg Danville | House approves additional $2 billion for 'cash for clunkers' program
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Troutville Resident Ted Richards says a 35- hundred dollar incentive persuaded him to trade his old pick-up for a new Toyota at the Shelor Motor Mile.
UPDATED: Friday @ 1:25 p.m.
WASHINGTON (AP) -- The House has voted to rush an additional $2 billion into the popular but financially strapped "cash for clunkers" car purchase program.
The bill was approved on a vote of 316-109. House members acted within hours of learning from Transportation Secretary Ray LaHood that the program was running out of money.
Called the Car Allowance Rebate System, or CARS, the program is designed to help the economy and the environment by spurring new car sales. Car owners can receive federal subsidies of up to $4,500 for trading in their old cars for new ones that achieve significantly higher gas mileage.
House Majority Leader Steny Hoyer said the new money for the program would come from funds approved earlier in the year as part of an economic stimulus bill.
Obama backs quick action to fix depleted car fund
WASHINGTON (AP) -- President Barack Obama praised members of Congress from both parties for rushing to pump new money into a popular cash-purchase program that is running out of money.
Obama spoke Friday as the House passed the measure 316-109. It would pour $2 billion from the economic stimulus program into the "cash-for-clunkers" initiative and to give consumers more time to take advantage of trade-in rebates for older cars.
The president said initially there had been skeptics about the car-purchase program, but that now "we're already seeing a dramatic increase in showroom traffic" across the country. He said the program "gives consumers a break" and helps to reduce pollution.
UPDATED: Friday @ 10:33 a.m.
WASHINGTON (AP) -- The House is racing to the rescue of the extremely popular -- but financially strapped -- "cash for clunkers" program.
There's word that "cash for clunkers," which officially began last week, is running on low, if not empty. Lawmakers want to add an additional $2 billion to the program, which encourages motorists to trade in their gas guzzlers for more fuel-efficient vehicles by offering rebates up to $4,500.
Lawmakers have been assured by Transportation Secretary Ray LaHood that the program will continue at least through today while the Obama administration looks for more money.
Democrats in both the House and Senate are exploring the possibility of votes as early as today to replenish the funding.
At the White House, press secretary Robert Gibbs sought to assure consumers that the program is still running and will be alive "this weekend."
He would not commit to any time frame beyond that.
UPDATED: Friday @ 10:12 a.m.
WASHINGTON (AP) -- Lawmaker says House plans to pass $2 billion bill to keep "cash for clunkers" program alive.
UPDATED: Friday @ 9:45 a.m.
WASHINGTON (AP) -- A lawmaker says he's been assured by Transportation Secretary Ray LaHood that the financially strapped "cash for clunkers" program will be good at least through Friday.
Michigan Sen. Carl Levin said he got the word from the Obama administration as members of the Ohio and Michigan congressional delegations huddled on Capitol Hill to discuss ways to keep the popular program going.
Levin, a Democrat, said he received assurances that cars could be purchased under the program on Friday. He also said that beyond Friday, "depends on whether the administration can find some money."
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WASHINGTON (AP) -- Congressional officials say the government plans to suspend the popular "cash for clunkers" program amid concerns it could quickly use up the $1 billion in rebates for new car purchases.
The Transportation Department called congressional offices late Thursday to alert them to the decision to halt the program, which offered owners of old cars and trucks $3,500 or $4,500 toward a new, more fuel-efficient vehicle.
The congressional officials spoke on condition of anonymity because they were not authorized to speak publicly.
Through late Wednesday, 22,782 vehicles had been purchased through the program and nearly $96 million had been spent.
But dealers raised concerns of large backlogs in the system, prompting the suspension.
