The draft bill, first sent to the White House Monday, would call on Bush to select one or more people within the executive branch to authorize, disperse and oversee a loan for the auto industry.
That "car czar" would have the power to reshape the industry and negotiate deals among auto companies, unions, creditors and suppliers. The designee also could force car companies into Chapter 11 bankruptcy if they don't have a viability plan by March 31.
"They either have a long-term plan that's viable, or we get our money back," White House deputy chief of staff for policy Joel Kaplan, who is leading White House negotiations on the bailout, said today. "And if we call our money back, which is required under this bill, then those firms are not going to be able to survive.
"We wanted to make sure this was tough and not bridge financing to nowhere," he said.
Kaplan said the car czar would meet with the shareholders of the automakers over the course of the next few months and "get into their books."
"So, this is not somebody who's going to run the companies," Kaplan said. "It is somebody who is going to be empowered to bring, like I said before, bring them around a table, knock heads, and tell them, 'If you want assistance from the taxpayer going forward, you're going to have to make some difficult concessions. Now, what are those concessions you're prepared to make? And show me how that adds up to a plan for financial viability.'"
General Motors, Chrysler and Ford have repeatedly made their case to lawmakers and U.S. taxpayers to explain why they need a loan. GM CEO Rick Wagoner told lawmakers last week that, without an infusion of $4 billion in taxpayer loans before the end of the year, the company would go bankrupt and have to be liquidated.
Ford has also requested loans but negotiators have determined the company will not receive funding at this point.
According to an ABC News/Washington Post poll, 54 percent of those surveyed oppose giving automakers up to $34 billion in federal loans, while 37 percent support it.
ABC News' Rachel Martin and Dean Norland contributed to this report.
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