Senate passes Cash for Clunkers extension

After days of uncertainty, Senators rejected amendments from six Republicans and one Democrat and voted 60-37 to add $2 billion to the funding of the Car Allowance Rebate System, popularly known as “cash for clunkers.” The bill was identical to the House version, so the measure goes directly to President Obama who will sign it without delay.

The CARS program has been a success. In fact, it has been too successful, coming close to completely draining in just one week the $1 billion intended to last through October. Transportation Department officials had warned that without additional funding, the program would have to be suspended. The new funding should be adequate to run through Labor Day when the members of the House and Senate return from their break.

Speaking on the Senate floor, Senator Carl Levin (D-Michigan) said, “This has been a highly successful program, probably the most successful of any in the stimulus package to date.”