"Cash For Clunkers" Lives On In War Funding Bill

By: Stephanie Condon
Topics: Economy

(CBS/iStockphoto)

The Senate on Thursday rejected a Republican attempt to kill the $1 billion "cash for clunkers" program that aims to boost U.S. car sales.

By a vote of 60 to 36, the Senate voted to keep the measure within the $106 billion war funding bill it passed today, according to Reuters. The full bill, which the House of Representatives passed Tuesday, now moves to the president's desk.

The "cash for clunkers" program would allow consumers to trade in their old cars for a voucher of up to $4,500 when buying a new, more fuel-efficient vehicle.

Sen. Judd Gregg (R-N.H.) objected to the measure because it did not call for budget cuts elsewhere in order to pay for the program.

"There are innumerable places in this government, which is spending trillions of dollars a year, to find $1 billion to pay for this bill if it was a priority," Gregg said during the floor debate, Reuters reported.

Democrats said the measure was important because of the recent sharp decline in auto sales.

"Plummeting auto sales have reduced production and it's had a ripple effect across the economy, forcing dealerships and factories to close," said Democratic Sen. Richard Durbin (D-Ill.) said.

"Cash for clunkers" could spur immediate car purchases, some economists told CBSNews.com last month, but it might not have much of an impact in reducing carbon emissions, as claimed by Democrats. Furthermore, they said, it could have been crafted in a manner less burdensome for taxpayers.

"Cash-for-clunkers is a common sense proposal that will help provide a shot in the arm for the American auto industry at a crucial time for our economy, reduce the emissions that cause climate change, and make Americans more energy independent," House Speaker Nancy Pelosi (D-Calif.) said in a statement last month.

Stephanie Condon
Stephanie Condon is a political reporter for CBSNews.com.
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by ludaG June 18, 2009 9:46 PM EDT: Thank you fleabag75 for letting me know, as for gravyboat i have some hope for this program. A similar program worked out in Europe wonderfuly, sales on vihecles increased by 20%. Maybe it's not a flawless plan but hey it's a start.; Reply to this comment


by ludaG June 18, 2009 9:34 PM EDT: ??; Reply to this comment


by gravyboat3000 June 18, 2009 7:14 PM EDT: Cash for Clunkers is not going to work. Unless the Govt. is going to force people to purchase more fuel efficiant vehicles, and they can't really do that.

luda, if your Lincoln is in great shape, it doesn't count as a clunker.

And this bill is on the President's desk, you'll hear more once it's signed.; Reply to this comment

by ludaG June 18, 2009 6:44 PM EDT

Is this for real? When does this take action? I have a 98 gas-eating lincoln in great shape, i would definitly like a more fuel efficient viehcle. But in a dealership i asked about it today knew nothing of this bill. Where to go? Who to call?

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by fleabag75 June 18, 2009 7:23 PM EDT: Forget what "gravyboat" says,,,,,,,,,, Your '98' is valid for the program. I'm surprised that the dealership you were at didn't know about it. Was it one of the Chrysler or GM dealerships that had its license pulled?


by stn_sage June 18, 2009 6:40 PM EDT: 'Cash for Clunkers' should have been 'D.O.A.'!

It may be well-intended, but it could create additional problems!

SO, Congress fulfilled---on this occasion---the old stereotype one hears about it's role being, 'not to solve problems, but to create them'!

This isn't turning out to be a very good week for the Democrats who appear to be stuck in 'mistake mode'!; Reply to this comment