Late yesterday, the Senate voted to extend another $ 2 billion to the “Cash for Clunkers” program:
The government’s “Cash for Clunkers” program won a much-anticipated extension Thursday night as the Senate voted to give an additional $2 billion in funding to the popular initiative aimed at boosting stagnant auto sales.
The 60 to 37 vote follows House approval of a similar measure last week and appears to save the government plan from an unexpected early shutdown. The White House supports extending the program, and the new funds are predicted to last until Labor Day, Transportation Department officials have said.
“Cash for Clunkers” appeared to be in jeopardy last week just days after its official launch. Congress had appropriated $1 billion for the program, which offers vouchers worth up to $4,500 for drivers trading in their gas guzzlers for more fuel-efficient vehicles. But the program drew so much interest that it almost ran out of funds well before its expected expiration in November. Transportation officials warned lawmakers late last week that the plan faced suspension.
In a statement Thursday night, President Obama praised the swift passage of the Senate bill, calling the program “a proven success.”
The Senate vote came after lawmakers considered and rejected several amendments to the legislation, including one from Sen. Tom Coburn (R-Okla.) that would have allowed trade-ins to be donated to charity. The current bill requires that the cars be junked.
“Today’s vote is a victory for families and businesses all across the nation,” Sen. Debbie Stabenow (D-Mich.) said after the vote.
Seven of 40 Republicans crossed party lines to support the measure, while four Democrats voted against it.
Auto dealers welcomed the prospect of additional money for the program, which has helped draw customers in droves.
Of course they are.
The fact that this isn’t really creating any real economic growth is, apparently, lost on everyone.
