Cash for Clunkers NOT Suspended

UPDATE: House approves $2B more for 'cash for clunkers'

The House has voted to rush an additional $2 billion into the popular but financially strapped "cash for clunkers" car purchase program.

The bill was approved on a vote of 316-109. House members acted within hours of learning from Transportation Secretary Ray LaHood that the program was running out of money.

Called the Car Allowance Rebate System, or CARS, the program is designed to help the economy and the environment by spurring new car sales. Car owners can receive federal subsidies of up to $4,500 for trading in their old cars for new ones that achieve significantly higher gas mileage.

House Majority Leader Steny Hoyer said the new money for the program would come from funds approved earlier in the year as part of an economic stimulus bill.

Isn't that great?

They "found" $2 billion that was just sitting around in the stimulus bill.

What a bunch of clowns!
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The Cash for Clunkers program illustrates the confusion that reigns in Washington, as well as the stunning fiscal irresponsibility.

The program is suspended. No, it's not.

From Reuters:

US suspends "cash for clunkers" auto trade-ins

The U.S. government has suspended its "cash for clunkers" incentive program to spur U.S. auto sales after an avalanche of business, a lawmaker said on Thursday.

Not so fast.

All those news reports you saw about the demise of Cash for Clunkers? Forget them.

The Obama administration didn't want to add this humiliation to its ever-growing pile of embarrassments.

Obama couldn't head off to Martha's Vineyard and enjoy his lavish vacation knowing he blew it again. Now was not the time to end what proved to be a popular program.

From Reuters:

New funding sought for U.S. "clunker" program

The U.S. government's $1 billion "cash for clunkers" auto sales incentive program reached its funding limit unexpectedly after an avalanche of business exhausted its funds, an Obama administration official said late Thursday.

Auto dealers began offering government-backed rebates in early July of up to $4,500 to consumers who traded-in their gas-guzzlers for more fuel-efficient vehicles.

But the Transportation Department will need additional cash after rebates for nearly 250,000 vehicles jammed the pipeline nationwide.

The White House was working with Congress to try to extend funding as lawmakers prepared to leave town for the month of August, according to the official who was not authorized to speak for attribution.

The program was part of a congressional effort to revive slumping U.S. sales and further help domestic automakers, especially General Motors Corp and Chrysler Group that briefly went bankrupt.

Sales unexpectedly spiked this week after the government began logging transactions and approving rebates that indicated consumers were opting for vehicles that get significantly better gas mileage than the models they were trading in.

The end of the month is usually the busiest time for auto dealers and automakers that have matched the government benefit.

Initially, congressional and industry officials signaled that the program was going to be suspended late Thursday or early Friday as funding ran out.

The administration opted to keep the program in place while it sought new money. It was not clear where the administration would find additional funding in a short period of time.

So the Obama administration opted to keep the program in place after all, even though there's no money to fund it.

That's not good.

The benefit Obama might get from not suspending the program will be erased by the irresponsibility of promising Cash for Clunkers that the government doesn't have.

There are conflicting reports as to whether or not the program is still up and running. Some headlines say yes, others say no.

Like Reuters, AP reports it is not suspended.

Cash for clunkers program may be running on empty

The government's popular "cash for clunkers" program may be running out of money after only a matter of days as car shoppers flock to dealerships to take advantage of the rebates.

The White House said Thursday it was assessing its options amid concerns the $1 billion budget for rebates for new car sales may have been depleted. The program officially began last week and has been heavily publicized by automakers and dealers.

Transportation Department officials called lawmakers earlier Thursday to alert them of plans to suspend the program as early as Friday. But a White House official said later the program had not been suspended and they were reviewing their options to keep the program funded.

Are dealers going to want to make sales not knowing when they'll be reimbursed? I suppose they're desperate enough to take the chance.

How can the White House do this about-face, declaring the program suspended due to a lack of funds and then, in just a matter of hours, putting out the word that it's not suspended?

In effect, the White House official is saying that the program will remain in place even though there's no money.

Nonetheless, money will be spent.

When the Obama administration says it's reviewing its funding options that means one thing -- another tax hike.

Obama says he's not a tax and spend Democrat.

He's right. He's more of a spend and tax Democrat.