Congress has agreement on automaker bailouts

Late Friday evening, the Democratic leadership of Congress said they have worked out an agreement on a bailout plan for the Detroit automakers. According to Speaker of the House Nancy Pelosi, the measure is intended to provide short-term loans to General Motors, Ford and Chrysler allowing them to fund operations until President-elect Barack Obama takes office January 20.

According to a senior congressional aide who spoke to Reuters, the plan has also passed muster with the White House.

The package totals between $15 billion and $17 billion. The money would come from the $25 billion fund Congress approved in September to help the car companies develop more fuel-efficient vehicles and retool factories to build them. Speaker Pelosi says she would require “a guarantee that those funds would be replenished in a matter of weeks.” She would also insist the automaker continue to work on new vehicles.

Congress is scheduled to vote on the bailout program next week.

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