The Cash for Clunkers program began last month, offering cash rebates for consumers who trade in their older cars for more energy-efficient ones. Now, the Obama administration says the program will be suspended unless the Senate approves an additional $2 billion. Secretary of Transportation, Ray Lahood, says he expects the $1 billion in funding to run out by the time the work week starts.
The Senate is expected to vote as early as today.
10 On Your Side caught up with Senator Mark Warner at a political event in Danville. He’s expected to vote on the program along with other members of the Senate.
He said the extra money could possibly come from existing energy programs, explaining he would be very reluctant to go further into debt to support that program.
Warner said he was a bit surprised about the program’s large turnout, but says it shows some pent-up demand for cars. He said the program had two goals- first, to stimulate the economy, and second, to help the environment. He isn’t sure how earth-friendly the program is.
“I think if the Senate approves that, it will have to add additional restrictions that will say if you’re going to trade in for a new car, it’s really got to have a much higher gas mileage requirement,” Senator Warner said.
He told us the program should not last forever.
“I would be willing to support a little bit more extension of the program but then we’ve gotta bring it to an end cause this just needs to be a stimulus action, not a long-term basically stipend to buy cars,” he said.
Warner added he would like to get back to more free-market economics.
Lahood said the government will continue the program until the Senate acts on the proposal to add more money.
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