House Approves $2 Billion More for Clunkers

By: Associated Press Email
By: Associated Press Email

Reports that the cash for clunkers program had been suspended were apparently not accurate.

It looks like people will still have a chance to trade in their old car for a fuel-efficient new car -- and get up to $4,500 from the federal government from doing so.

The "cash for clunkers" program was so popular, it was running out of money quickly. But the House voted today to rush another $2 billion into the program. And Senate action is likely next week.

But two senators are first asking the Transportation Department for details on how the program has worked -- and whether it has brought "significant fuel economy gains." One of the senators,
California Democrat Diane Feinstein, had wanted the program to apply only if the new vehicle was vastly more fuel-efficient.

Still, House Speaker Nancy Pelosi says the cars that have been
purchased under the program are much more fuel-efficient than the
legislation required.

As lawmakers considered putting new money into it, some lawmakers complained that the program hasn't gone smoothly for dealers, some of whom have had trouble getting rebate applications approved.

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