Congress approves $2B for cash for clunkers program

The congress on Friday on a unanimous vote passed the popular “Cash for clunkers” program by infusing two million dollars to keep alive the popular program which has been running out of funds. In a quick response within hours, Obama administration approved it when they came to know from Transportation secretary, Ray Lahood.

According to President Obama, “ I was encouraged by the house action to keep alive the program which was  very successful beyond our expectations”. The senate is also ensuring the program wouldn’t be affected by shortage of funds.

The program called the Car Allowance Rebate System, aka CARS was designed to boost the auto industry and increase the car sales. Car drivers can get federal subsidies in terms of electronic vouchers up to $4,500 to trade in old cars for new cars which give better mileage.

The funds for the program would be met by economic stimulus bill which was sanctioned earlier. Some dealers complain continuous rejections and have to be satisfied with chaotic clunker program. The program which was launched officially last week with one million dollar budget has been heavily publicized by government and automakers

There had been a $1 billion budget for rebates for new car sales in the program that was officially launched last week and has been heavily publicized by government and automakers, and the program was short of funds in the first week itself.

It is still very vague how many cars have been sold under this program and congress has asked the transportation department on the program progress to determine the future plan. The government assured the consumers that the program would run and be alive and encouraged buyers to buy new cars this weekend

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