Jul 31, 2009 8:42 pm US/Eastern
Schumer: $2 Billion More Not Enough For 'Clunkers'
New York Senator Wants $4 Billion For Wildly Popular Program, Says Senate Really Dropped The Ball Initially
NEW YORK (CBS) ―
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Drivers are dumping their old cars in exchange for up to $4,500, as part of the federal Cash for Clunkers program.
Justin Sullivan/Getty Images
The rebates aimed at getting gas guzzlers off the road have proven so successful, the $1 billion set aside to pay for them is drying up.
But Congress is set to earmark more money for the program.
If it had a Dodge Charger Congress would have rode in on one Friday to rescue the so-called "Cash for Clunkers" program from a near-death experience.
But even without a Mustang, a Bronco or a plain white horse to save the day the House still came up with an extra $2 billion to continue the program, which ran out of money almost immediately.
"Not more than a few weeks ago there were skeptics who weren't sure that the 'Cash for Clunkers' program would work. But I'm happy to report that it has succeeded beyond our wildest expectation," President Barack Obama said.
Senator Charles Schumer, one of the original sponsors of the bill, said the program ran out of money because skinflints in the Senate wouldn't give him the $4 billion he wanted for the program, which gives people up to $4,500 toward buying fuel efficient cars to replace their old gas guzzlers.
"There were people in the Senate who didn't like the program and they said 'We won't let it go through. We will filibuster. Try $1 billion and see if it works,'" Schumer said.
He said those senators now have egg on their face.
"This week's evidence shows that people who said the program wouldn't work, who said that the program was the wrong thing to do, are very wrong themselves," Schumer said.
And even the $2 billion extra voted by the House isn't enough said Schumer, who wants at least $4 billion.
"'Cash for Clunkers' is helping jump start our weak economy," Schumer said.
And get gas guzzlers off the road.
"The program is excellent to get those vehicles off the road and get new higher mileage and lower emitting cars on the road," said Robert Sinclair of AAA.
So while Congress is not about to trade in the "Cash for Clunkers" program, the big question is how much they're willing to put on the sticker price.
The Senate is expected to approve the extra $2 billion next week and Sen. Schumer said he will continue to push for even more money for the wildly popular program.
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