A delegation of lawmakers from Michigan, home of the U.S. auto industry is seeking to keep alive the ‘cash-for-clunkers’ subsidy program for the auto industry after high demand.
The lawmakers are seeking to transfer $2 billion in funds from the economic stimulus package for the Energy Department to the program after an initial $1 billion fund was nearly used up, according to Michigan Senator Debbie Stabenow, Bloomberg reported.
White House spokesman Robert Gibbs said the program “is something we believe can, and should be extended,” according to the report. Gibbs said there were 20,000 certifications for the program waiting to be processed.
The House of Representatives, which begins its August recess after today, would need to authorize the transfer, along with the Senate, which adjourns next week.
The cash-for-clunkers program requires interested buyers to trade in an old vehicle they own in exchange for a rebate which can be up to $4,500. The award must be used for the purchase of a brand new car or truck through an auto dealer registered to participate in the government's program.