Amidst news that “Cash For Clunkers” money set aside under the American Recovery and Reinvestment Act money had dried up, the U.S. House of Representatives has passed legislation to allocate another $2 billion in funding to keep the initiative alive, the White House said today.
The program to provide car owners up to $4,500 to trade in their fuel-inefficient vehicle for a new car or truck of higher fuel efficiency apparently drew more response than expected, using up the $1 billion in funds in a matter of days.
President Obama said today, “This program has been an overwhelming success, allowing consumers to trade in their less fuel efficient cars for a credit to buy more fuel efficient new models. It has given consumers a much needed break, provide the American auto industry an important boost, and is achieving environmental benefits well beyond what was originally anticipated.”
The “Cash For Clunkers” plan is helping our economy and our goal to reduce greenhouse gas emissions and improve air quality, he said.
The measure must receive Senate approval to make the continuation official. Major news outlets are reporting that the government has said that deals already in progress under the program will be honored.
