House bails out bailout program

“Cash for clunkers” lives on

Even though it only launched last week, the U.S. government’s “cash for clunkers” program, which gives vouchers worth up to US$4,500 to people trading in old cars for more fuel efficient models, is almost out of money. The government started the US$1 billion program as a green attempt to stimulate the car industry, and it was supposed to continue until November—or until funding ran out. But tens of thousands of people rushed to trade in their clunkers, completely overrunning the system. So the house of representatives passed a bill granting an additional US$2 billion in funding to keep the program afloat, but auto dealers say the cash infusion will only buy the program another week.

The Washington Post