Obama Signs $2B Extension for "Clunkers" Program
Says program is getting guzzlers off the road and stimulating economy
Friday, Aug 7, 2009 | Updated 1:13 PM CDT
AP
Used cars are seen in a dumpster to draw attention to the "Cash for Clunkers" program at Performance Chevrolet in Sacramento, Calif., Saturday, Aug. 1, 2009. On Friday Congress approved an additional $2 billion for the program that provides $3,500 or $4,500 credits to buyers who trade in older, gas guzzling vehicles for more fuel-efficient new cars.
President Obama on Friday signed a bill extending the wildly popular "cash for clunkers" plan after the Senate approved a $2 billion refill to the rebate program.
An initial $1 billion was used up after just 10 days when an eager public bought into the program that offers up to $4,500 in federal subsidies for trading in an old gas guzzlers for new, fuel efficient vehicles.
The Senate approved the extension Thursday on a 60-37 vote just before breaking for recess. Last week, the House voted to keep the program chugging along.
"Cash for clunkers has been a proven success," Obama said in a written statement issued shortly after the vote. "The initial transactions are generating a more than 50% increase in fuel economy; they are generating $700 to $1000 in annual savings for consumers in reduced gas costs alone, and they are getting the oldest, dirtiest and most air polluting trucks and SUVs off the road for good."
