Cash for Clunkers Program Extended Through Weekend

According to the Washington Post, Congress acted swiftly and appropriated an extra $2 billion toward the Cash For Clunkers Program 2009 Friday, forestalling having the program suspended due to reaching its financial limits. With rumors swirling around the Cash For Clunkers Program being suspended, stories that began circulating Thursday evening after the Department of Transportation threatened to do just that, the Obama administration acted quickly to reassure the public that all vouchers would be honored and began working with Congress to extend the allocation to allow the Cash For Clunkers Program to get through the weekend. Congress' response should see the program make it at least through Sunday.

The Cash For Clunkers Program 2009 originally was slated to be funded with $4 billion. Political wrangling brought the final total to $1 billion. But those that framed the Cash For Clunkers Program (officially named Car Allowance Rebate System (CARS)) did not anticipate such a massive response to their stimulus program. It took a mere six days to reach the $1 billion limit, thus precipitating the confusion and fear of the program being suspended indefinitely and perhaps rendering some of the vouchers invalid (if they happened to be claimed after the $1 billion limit was reached).

The measure passed the House of Representatives 316 to 109.

Money for the Cash For Clunkers Program 2009 extension will come from funds in the already-passed economic stimulus package that were targeted for energy loan guarantees, with Congress seeking to replenish funds for the energy program at some later date.

Lawmakers began scrambling Thursday when the Cars For Clunkers Program was reportedly running out of money. The Department of Transportation even considered having the program suspended at midnight. But White House press secretary Robert Gibbs issued the statement Friday, "If you were planning on going to buy a car this weekend, using this program, this program continues to run. If you meet the requirements of the program, the certificates will be honored."

Peter Kitzmiller, president of the Maryland Automobile Dealers Association, told the Post that he had no idea, given the confusion of the system, how the government knew how close they were to the $1 billion limit. 'I'm pretty sure they don't know how many deals are in the pipeline," he said.

Dealers reported packed showrooms Thursday night as customers rushed local dealerships to attempt to cash in on last minute deals, fearing that the Cash For Clunkers Program would indeed be suspended at midnight as was being reported.

******

Source:

WashingtonPost.com