The U.S. House approved an emergency $2 billion infusion for the cash-for-clunkers program this afternoon, after a burst of demand used up most of the initial $1 billion.
House Majority Leader Steny Hoyer said the additional money would come from funds Congress approved earlier in the year as part of a $787 billion economic stimulus bill.
The plan, formally called the Car Allowance Rebate System (CARS), provides credits of as much as $4,500 for a new car when turning in an older, less fuel-efficient, vehicle. It passed 316 to 119.
It's unclear whether the Senate will approve it before leaving Washington for the month of August.
The program proved so popular that the initial $950 million set aside for it is running low. The funds were expected to last until November. The Obama administration is working with members of Congress to increase the program's funding. We're trying to expand the one program the public has latched onto, said David Obey, D-Wisc., the chairman of the House Appropriations Committee.
If you have a GM car, check out GM & The Car Allowance Rebate System website here to see if your car qualifies for the Cash for Clunkers program.
Below is a brief summary of who is and who is not eligible for this program:
Which cars are eligible?
1. Only purchase or lease of new vehicles will qualify
2. Clunkers eligible for the program must get 18 MPG, or less
3. Must hold a valid legal title to the car seeking to trade in
4. Registered to the same owner for the full year preceding the trade-in
Which cars are not eligible?
1. Cars that have not been insured for the past year
2. Cars that are older than 25 years & not later than model year 2001
3. Cars not in drivable condition
4. New Car manufacturer's suggested retail price cannot exceed $45,000