House Votes to Add $2B to Clunkers Program

(NEWSER) - Just as the "cash for clunkers" program sparked a boom in auto sales, its cancellation will likely depress the industry, CNNMoney reports. As of today, the last day of the government-funded incentive, rebate applications for 625,000 trade-ins totaling $2.58 billion had been submitted. “We're definitely going to have a hangover,” a dealer says. “I think you're going to be able to shoot a cannon through here and not hurt anybody.” More»

(NEWSER) - General Motors will start making temporary loans to dealers who have yet to be reimbursed by the federal government under the Cash for Clunkers plan, the Wall Street Journal reports. Dealers, some now irate, essentially did the same thing for customers participating in the trade-in plan—covering the government rebate out of pocket. But the federal money has been slow in coming, putting dealers at risk of a loss. More»

(NEWSER) - The White House has asked Citigroup, which is administering the Cash for Clunkers program, to double or even triple the number of workers processing paperwork, Bloomberg reports. That move could clear up a backlog of dealer applications that grew with the surprise success of the program. The administration also says it will make a “good-faith effort” to honor further deals made under the plan as Harry Reid's office said today a Senate vote on further funding could come this week. More»

Compromise would put voucher at $4,500, nix buy-American clause

(NEWSER) - Congress is nearing agreement on a “cash for clunkers” plan that would pay Americans to give up their gas-guzzling vehicles. A House plan outlined yesterday focuses on cars and light trucks that yield less than 18 miles per gallon. Owners who junk those will receive a $3,500-$4,500 voucher, depending on the relative efficiency of their new ride, the New York Times. More»

Mitch McConnell, meanwhile, says it's doomed in the Senate

(NEWSER) - It's Harry Reid's turn to hit legislative turbulence. The House today rejected the Senate leader's plan to raise the debt ceiling in a move seen largely as symbolic, reports AP . The real fight, however, is taking place in the Senate, where GOP Minority Leader Mitch McConnell delivered a letter to Reid signed by 43 Republicans vowing to oppose his plan when it comes up for a vote set for 1am EST Sunday. Those numbers guarantee that Reid would not be able to fend off a filibuster, reports the Washington Post . More»