The federal government's Cash for Clunkers trade-in program is expected to receive a major funding boost today, after it blew through most of its initial $1 billion budget in just over a week.
CNN Reports, "The Senate is expected to vote Thursday on a $2 billion extension of the popular Cash for Clunkers program, as lawmakers rush to finish business before their August recess." The House of Representatives has already passed the $2 billion extension, which has White House support.
The measure is widely expected to pass. The Wall Street Journal reports, "Senate Majority Leader Harry Reid...said Democrats have enough votes to approve the measure and beat back any changes that would lead to an interruption in the rebates of $3,500 or $4,500 for trading in gas-guzzlers for new, higher-mileage models." Republicans opposed to the funding extension have admitted that they don't have the votes to stop it, but instead will offer a series of amendments in an attempt to slow passage. "None of the proposed amendments was expected to pass. They included placing an income limit on those benefiting from the vouchers, terminating the Troubled Asset Relief Program and requiring the government to sell off its shares in Michigan automakers General Motors Co. and Chrysler Group LLC."
Still, Sen. John Thune (R-S.C.) conceded to the Journal, "My guess is, at the end of the day, it will pass."
The AP notes, "Administration officials estimate the extra funding will last into Labor Day."
Michigan State University economist Charles Ballard told the Detroit News that the funding extension will be "a medium shot in the arm for automakers." Many of those able to act on the opportunity presented by the rebate program may have done so in the first few weeks of the program, so the pace of sales may decline in the coming days.
Edmunds.com Senior Analyst Jessica Caldwell predicts, "This level of activity will not continue, as it reflects the behavior of those anxious and able to participate in the program - and that is a limited set of people."
If you're interested in the Cash for Clunkers program, check out our Cash for Clunkers page. If you're ready to buy, contact local dealers. For the latest news on the program, check out Cash for Clunkers news.
