LANSING – In the wake of news that funding for the federal government's "Cash for Clunkers" program may have already run out, State Representatives Dian Slavens (D-Canton) and Deb Kennedy (D-Brownstown) today called on the U.S. Senate to follow the lead of the U.S. House in boosting funding for the program and extending it in order to support Michigan's auto industry.
"The overwhelming response we've seen to 'Cash for Clunkers' is a testament to the program's ability to retain and create jobs right here in Michigan," Slavens said. "Our hard-hit auto industry and workers need this investment, which is already paying off. I urge the U.S. Senate to act quickly and restart the 'Cash for Clunkers' program before it's too late."
The initial $1 billion program – known as the Car Allowance Rebate System (CARS) – was designed to energize the economy, boost auto sales and put safer, cleaner vehicles on the nation's roadways. Passed by Congress in late June to help the auto industry and launched just a week ago, the program was scheduled to run until Nov. 1, or until money ran out. The success of the program has exceeded expectations and after just four days it's estimated that the funding has been exhausted.
The U.S. House voted today to increase funding for the program by an additional $2 billion. The U.S. Senate is scheduled to vote on the additional funding on Monday.
Under the "Cash for Clunkers" program, vouchers worth up to $4,500 are given to eligible consumers who trade in old vehicles and then buy or lease more fuel-efficient models. Dealers credit the amount of the voucher to customers and then get reimbursed by the government. However, in addition to the millions of dollars that have already been spent under the program, there is a large backlog of dealer reimbursement applications.
"This is exactly the type of program that we need to spur job growth and reignite Michigan's economy," Kennedy said. "Our autoworkers are the best in the world – they put the world on wheels and helped build the middle class – and the 'Cash for Clunkers' program will go a long way toward helping them and our many auto dealers get back on their feet. I call on the U.S. Senate to save this effective economic stimulus program."