Congress Passes $2 Billion Extension of 'Cash for Clunkers' Program

Aug. 6, 2009 -- Senators voted 60 to 37 tonight to give the "Cash for Clunkers" program an emergency $2 billion refill.

The vote on Capitol Hill saves the program, which gives car buyers between $3,500 and $4,500 to trade in their older cars, trucks and SUVs for newer, more fuel-efficient ones. The old cars have to be destroyed.

The program, officially called "CARS," was originally slipped into a war funding bill and given $1 billion to last from the summer into November. But it was so popular with car buyers that it was exhausted in two weeks.

The bill to save the clunkers program withstood six amendments on a variety of issues. Any of them would have killed the program for the summer. The House had passed the emergency refill before its members left town last week.

Proponents said the program helped the environment and stimulated the economy. Opponents said it was a bailout the taxpayers can ill afford.

While a boost for car dealerships, some lawmakers have argued that it is not helping U.S. automakers specifically. Six of the top 10 selling cars under the program are made by foreign manufacturers.

But administration officials insisted that the program is much needed for the floundering auto industry.

"Our CARS trade-in program has been a lifeline to the American auto industry by boosting the manufacturers, keeping dealerships in business, saving the workers' jobs and helping Americans buy cars," Department of Transportation Secretary Ray LaHood wrote on his blog. "There's no doubt in my mind that this program has been a wild success."