Story Published:
Jul 31, 2009 at 2:10 PM EST
Story Updated:
Jul 31, 2009 at 2:27 PM EST
By HUMA KHAN, DEAN NORLAND and YUNJI de NIES
July 31, 2009 from ABC NEWS.com
The House hurriedly passed legislation today to add $2 billion in funding to the "Cash for Clunkers" program.
Senators urge participation in the successful cash for clunkers program.The vote was 316-109. The bill now goes to the Senate which remains in session for one more week. But they will have to pass the exact same bill since the House goes into recess today and will not be around to participate in a conference to hash out differences.
President Obama praised Congress for their quick action and said he was "pleased with the progress" made in the House.
The program "has succeeded well beyond our expectations and all expectations and we're already seeing a dramatic increase in showroom traffic at local car dealers," the president said today in short remarks to talk about the economy.
The program pays consumers cash vouchers if they trade in their gas guzzling cars for a new car.
During the debate, many Republicans expressed their support for the program but said the government needs to fix several issues, including an online redemption system that has been overwhelmed by dealers trying to file claims.
But other GOP members were not so supportive.
"The auto industry does not have a monopoly on the hard times in this country," said Rep. Jeb Hensarling, R-Texas. Referring to the struggling chicken farm in his district, he proposed that the government should start a "Cash for Cluckers program and pay people to eat chicken." Democrats argued that the program works in stimulating the economy and promoting environmentally friendly vehicles.
Officials were working hard to gather money for the program, which has been so successful that the $1 billion allocated for it ran out within a week.
The $2 billion dollars will be transferred from an untapped stimulus program, so technically, no new taxpayer money will be involved. But Obama added today that the government will work to replace the stimulus funding being used to extend the program.
Earlier today, the White House assured Americans that the "Cash for Clunkers" program "is up and continuing to run," at least through this weekend.
The developments came one day after conflicting government announcements that the program was broke and may, or may not, be suspended.
"If you were planning on buying a car this weekend and using this program, this program continues to run," White House Press Secretary Robert Gibbs said. "And if you meet the requirements for the program, the certificates will be honored."
There are roughly 20,000 certificates waiting to be processed, but the White House could not definitively say if the money is totally tapped out.
House Speaker Nancy Pelosi, D-Calif, said an estimated 250,000 cars have been sold through the program.
"It's something we believe can, should and will be extended." Gibbs said, calling it a success for car buyers, dealers, companies and taxpayers, "who are seeing people choose more fuel-efficient cars."
He said the president not only wants the program to continue, he wants to see it expanded.
Lawmakers earlier today urged their constituents to take advantage of the program -- while it lasts -- and there was obvious uncertainty in Washington about the long-term future of the program.
"We don't know how long it will last, so people should go to their car dealers now if they want to take advantage of the program," Sen. Carl Levin, D-Mich., said in a statement. "We're also going to seek additional funding to hopefully make the program last longer."
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