Washington Bureau Blog

House passes $2 billion extra for "Cash for Clunkers"

The U.S. House overwhelmingly passed legislation today to add $2 billion to the "cash for clunkers" program.

The $2 billion would be redirected from the economic recovery package passed by Congress in February. The Bouse passed the legislation 316-109 after dealerships sold so many cars that they are believed to have exhausted the $1 billion set aside for the program.

"Consumers have spoken," said Rep. Sander Levin, D-Royal Oak.

"This program is hugely successful and we have to keep up the momentum. Getting consumers back into showroom is vital to our national economic recovery as it stimulates the economy and helps the domestic auto industry get back on its feet."

The Senate could take up the bill next week. The Obama administration is supportive.

"The administration has assured dealers and consumers that rebates for vehicles already sold under the program will be honored now and through the weekend," Levin said. "I'm hopeful the Senate will act quickly so we will have this additional funding boost to the President in time to avoid any gap in this important recovery program."