AP sources: Gov't to suspend 'Cash for Clunkers' - Spokane, North Idaho News & Weather KHQ.com

AP sources: Gov't to suspend 'Cash for Clunkers'

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WASHINGTON. - Congressional officials say the government plans to suspend the popular 'Cash for Clunkers' program amid concerns it could quickly use up the $1 billion in rebates for new car purchases.

The Transportation Department called congressional offices late Thursday to alert them to the decision to halt the program, which offered owners of old cars and trucks $3,500 or $4,500 toward a new, more fuel-efficient vehicle.

The congressional officials spoke on condition of anonymity because they were not authorized to speak publicly.

Through late Wednesday, 22,782 vehicles had been purchased through the program and nearly $96 million had been spent. Dealers raised concerns of large backlogs in the system, prompting the suspension.

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