House Passes Cash for Clunkers
House to spend $4 billion on the program.
According to media reports issued
late Tuesday, the U.S. House of Representatives has passed the proposed
"Cash for Clunkers" legislation that has been bandied about both the
House and Senate in various forms since the beginning of the year.
The measure, passed by a vote of 298-119, will give consumers rebates
of up to $4,500 for dumping older cars and trucks in favor of newer,
more fuel efficient vehicles.
Car owners could get a voucher worth $3,500 if they traded in a vehicle
getting 18 miles per gallon or less for one getting at least 22 miles
per gallon. The value of the voucher would grow to $4,500 if the
mileage of the new car is 10 mpg higher than the old vehicle.
The measure could go into effect in 30 days but would not be
retroactive to new cars bought earlier this year. The program will last
for one year, or until funds run out. According to reports, the House
plans to spend $4 billion on the program.
The bill now moves to the Senate, where its fate is unclear. Two
different versions have been introduced in the Senate. However,
President Obama has said he supports the legislation.
Editor's Note: Check back for more details and commentary on Cash for Clunkers as details unfold.