Senator promises clunker cash
Program could continue through Labor Day
WASHINGTON – Responding to overwhelming consumer demand and arm-twisting by President Barack Obama, senators won’t drive out of town for vacation this week before approving more money for the “cash for clunkers” program, Senate Majority Leader Harry Reid, D-Nev., said Tuesday.
Reid’s vow in all probability assures the vehicle rebate program will continue at least through Labor Day. A vote could come as soon as today.
The House last week appropriated an additional $2 billion for the program after an unexpected surge of applications nearly depleted its $1 billion allotment. Support in the Senate for the additional money has not been the problem, particularly after the Department of Transportation released data showing consumers opting for more fuel-efficient vehicles than required by the program.
But facing some Republican opposition that prevented a quick voice vote, and a busy Senate schedule in the last week before a monthlong recess, it was up to Reid to make clunker money a priority. With Obama pushing for Senate action, Reid made that commitment. “We will pass ‘cash for clunkers’ … before we leave here,” Reid told reporters.
Transportation Secretary Ray LaHood said he was optimistic that the Senate would come up with the additional money to keep the program running past Friday. As of Tuesday morning, cash for clunkers had paid out $664 million in $3,500 or $4,500 rebates for approximately 157,000 new vehicle purchases since the program formally started last week.
“People love to buy cars, and we’ve given them the incentive to do that,” LaHood said at a news conference Tuesday. “I think the last thing that any politician wants to do is cut off the opportunity for somebody who’s going to be able to get a rebate from the government to buy a new automobile.”
Still, some Republicans continued to oppose the program as unwarranted government deficit spending.
“Americans aren’t stupid. You give them 4,500 bucks, they’re going to find any car they’ve got,” said Sen. Tom Coburn, R-Okla. “It’s $3 billion we’re talking about that’s going to go to help people to buy cars, but where are we going to get the $3 billion from? We’re going to steal it from our children.”