Congress Nears 'Cash for Clunkers' Deal

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.

The compromise plan eases the initial mileage eligibility to just 4 mpg more than the previous car. It excludes used cars, but no longer limits the reduced vouchers to American vehicles. Domestic automakers still support the year-long initiative, which Democrats say will take 1 million cars off roads. The Senate has yet to reach agreement on the Obama-endorsed idea. (More auto industry stories.)