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Obama signs $2 billion emergency funding for 'Clunker' program

 
12 5,822 views Aug 7, 2009

The extra funding bill will keep the popular program going for at least a few more weeks

The extra funding bill will keep the popular program going for at least a few more weeks

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That was quick. Just a month after President Obama signed in the $1 billion ‘cash for clunkers’ bill, and less than a week of it running, the program has already run out of money once and received approval from both the House and Senate for another $2 billion. With Obama's signature today, the money is official, and available to buyers that haven't yet cashed in their clunker.

The additional funds come less than a week after confusing and conflicting messages about the program's possible termination from the White House and the Department of Transportation. The latest action by the Senate makes it clear that the government wants to see the highly popular program continue. The money will be taken from part of the $787 billion stimulus package approved earlier this year.

Originally expected to last through the next several months at least, Ray La Hood, U.S. Transportation Secretary told Automotive News that the additional funding will extend the temporary program through Labor Day and spur about 500,000 new auto sales on top of the 250,000 already completed.

Under the original program, owners of old cars that cannot achieve above 18mpg in their combined cycles were eligible for a $3,500 voucher from the government towards the purchase of a new car that is at least 4mpg more efficient. Up to $4,500 is available to those who improve their gas mileage figures by 10mpg or more.

Trucks use a different system, where the new truck being purchased has to achieve at least 18mpg and also be 2mpg more efficient than the traded in vehicle. This gets owners the $3,500 voucher, while those improving their mileage by 5mpg get the full $4,500.



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Comments (12)

  1. ma_Mike avatar Mike Posted: 7/30/2009 6:18pm PDT

    Well it seemed to have worked. Let's wait and see if that will be reflected when 3rd quarter reports are out. However, $221M out of 1Bn and they're already shutting it down? Surely the other $779M went to government "paperwork".
     
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  2. ma_JSH avatar JSH Posted: 7/31/2009 6:15am PDT

    Dealers don't get an immediate $4500 credit but instead wait up to 10 days to get reimbursed from the federal government. So while the government may have not paid out the full $1B yet, it is entirely possible that they have approved enough credits to consume the entire appropriation.

    In all it seems to have worked very well. So much for the nay-sayers that claimed no one who drives an older car could afford to buy a new one. Instead this shows that those of us that buy a car and keep it for 10 years are the people that actually have money instead of mountains of debt.
     
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  3. ma_bepsf avatar bepsf Posted: 7/31/2009 10:59am PDT

    It's already funded - Finally, a government program that works for the people instead of against us!
     
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  4. ma_bepsf avatar bepsf Posted: 7/31/2009 10:59am PDT

    It's already funded - Finally, a government program that works for the people instead of against us!
     
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  5. ma_HECTOR avatar HECTOR Posted: 8/2/2009 6:20pm PDT

    This is not a program that works for the people. This is another balls up by the goverment. They're using taxpayer's money to help people buy newer cars. Where is it writte that this is something the government should be doing? Where is it mandated that the government can use our money for this?

    So I'm paying off my car and I got no help from anyone, as it should be. I didn't get a newer car until I could afford one. But now there are tons of people out there just going out and buying new cars because the geniuses in Congress are using my money to make it cheaper for them. But insurance won't be cheaper, or the payments they'll still have to make to the bank, or the maintenance of a new car...

    So basically all the government is doing is creating another bubble. Wasn't it the bursting of more than one artificially created bubble that got us into this mess to begin with?
     
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  6. ma_samuelesm avatar samuelesm Posted: 8/7/2009 1:04pm PDT

    What a waste of tax money, it doesn't really help the Big 3.
     
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  7. ma_saabfan avatar saabfan Posted: 8/7/2009 4:05pm PDT

    Seems like if you live too responsibly in the US, you are a sucker and a doormat.
     
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  8. By  Green Directory Guy Posted: 8/11/2009 9:12am PDT

    Even though this type of program is far from perfect I think it does way more to stimulate the economy than throwing money at financial companies that are just gonna waste it on big bonuses for the same folks that got them in trouble in the first place.
     
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  9. By  computer keyboard Posted: 12/30/2009 4:41am PST

    So the tax payers are paying the car manufactures to sell cars. This is priceless. God Bless America..... I want free gas too!!! And when we will be bailing out the banks again cause greedy people cant pay for these wonderful new cars???
     
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  10. By  Used Auto Parts Guy Posted: 1/20/2010 10:47am PST

    "So the tax payers are paying the car manufactures to sell cars."
    Hahaha, computer keyboard - still better than paying the bank executives bonuses and for their new private jets!
     
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  11. By Adline Posted: 6/17/2010 4:23pm PDT

    If Obama signed this in June 15, 2010. Can anyone supply me the correct information on how to go about signing up to it or give the dealership the information since they not aware of it right now. Please send me e mail with that infor mation at DisWomanWorthie@aol.com. Thank you
     
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  12. pick a part avatar pick a part Posted: 11/5/2011 11:43am PDT

    There is no doubt still that plan was awesome and perfect.
    When it comes to implementation its never met people's concerns.
    I am just in oppose of this much funds.
    pick a part
     
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