House OKs $4 billion 'clunker' bill

WASHINGTON (CNNMoney.com) -- The House on Tuesday waded deeper into the rescue of the troubled auto industry when it passed a $4 billion plan to subsidize new cars sales for consumers who scrap old ones.

By a vote of 298-119, the House approved the "cash for clunkers" program.

The measure would give consumers vouchers worth as much as $4,500 to turn in gas guzzlers and buy new cars that are more fuel efficient.

The legislation now goes to the Senate. President Obama has said he supports such a measure.

The House bill would go into effect within 30 days of enactment but it is not retroactive for new purchases made earlier this year.

The move by the House would deepen the federal government's involvement in the auto industry, only a week after federal officials announced spending another $30 billion in addition to the $19.4 billion already given to GM to cover its losses and operations.

"The bipartisan cars act will shore up millions of jobs and stimulate local economies. It will improve our environment and reduce our dependence on foreign oil," said bill sponsor Rep. Betty Sutton, D-Ohio, during floor debate. "The cars act demonstrates that we can free ourselves from the false argument of either you are for the environment or you are for jobs. You can do both, you must do both."

While the original cash-for-clunkers proposal had its roots in an environmental initiative, this bill aims to jump-start sales of new cars and trucks, including some that don't quite meet the average fuel efficiency standards.

Original Story - HERE

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