House approves $2B more for 'Cash for Clunkers' - Spokane, North Idaho News & Weather KHQ.com

House approves $2B more for '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.>>
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WASHINGTON. - The House has voted to rush an additional $2 billion into the popular but financially strapped 'Cash for Clunkers' car purchase program.

The bill was approved on a vote of 316-109. House members acted within hours of learning from Transportation Secretary Ray LaHood that the program was running out of money.

Called the Car Allowance Rebate System, or CARS, the program is designed to help the economy and the environment by spurring new car sales. Car owners can receive federal subsidies of up to $4,500 for trading in their old cars for new ones that achieve significantly higher gas mileage.

House Majority Leader Steny Hoyer said the new money for the program would come from funds approved earlier in the year as part of an economic stimulus bill.

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