Congressman Cohen Urges President Obama to Transfer Funds to Cash for Clunkers Program
July 31, 2009
The new law will authorize President Barack Obama to make additional funding available for the program. Cash for Clunkers, which was signed into law earlier this summer, gives auto buyers between $3,500 and $4,500 to trade in their gas guzzlers for more efficient cars.
“I encourage the President to support the measure by increasing funding for Cash for Clunkers and to transfer the money into the program upon passage by Congress,” Congressman Cohen said. “This is one of the most successful components of the Stimulus program because it helps American families, the environment, and boosts the economy. Consumers receive an immediate benefit when the cost of their new car is significantly reduced.”
“I encourage the President to support the measure by increasing funding for Cash for Clunkers and to transfer the money into the program upon passage by Congress,” Congressman Cohen said. “This is one of the most successful components of the Stimulus program because it helps American families, the environment, and boosts the economy. Consumers receive an immediate benefit when the cost of their new car is significantly reduced.”
In its first week, the program has proved so popular that it has already exhausted the $1 billion originally appropriated for it. The additional funding authorized by the House today will come from previously appropriated American Recovery and Reinvestment Act (ARRA) funding. The additional funding is expected to spur the sale of up to 800,000 more fuel-efficient cars and trucks.
“Replenishing the Cash for Clunkers program will help American families who desperately need a new vehicle afford one, and simultaneously benefit the environment,” Congressman Cohen said. “The program is a win/win as it gives direct financial help to citizens in this recovering economy, helps the automobile industry whose survival is imperative to our economy, and puts more fuel efficient cars on the road, reducing our dependence on foreign oil. I was pleased to vote today to increase the program and I’m happy my colleagues in the House see the significant benefits of this program and how much it will continue to improve our economy, environment and families.
”The Cash for Clunkers program has resulted in over 200,000 auto purchases this week. Those who have traded in their vehicles have gotten around a 69 percent mile per gallon improvement, which will save hundreds of dollars each year in fuel costs for each car owner.
The legislation provides rebates for cars and trucks in the following four categories:
• Passenger Cars: The old vehicle must get 18 mpg or less. New vehicles with improvement of at least 4 mpg will get a $3,500 voucher. New vehicles with improvement of at least 10 mpg will get a $4,500 voucher.
• Light-Duty Trucks: The old vehicle must get 18 mpg or less. New vehicles with improvement of at least 2 mpg will get a $3,500 voucher. New vehicles with improvement of at least 5 mpg will get a $4,500 voucher.
• Large light-Duty Trucks: The old vehicle must get 15 mpg or less. New vehicles with improvement of at least 1 mpg will get a $3,500 voucher or trade-in of a “work truck.” New vehicles with improvement of at least 2 mpg will get a $4,500 voucher.
• Work Trucks: The old vehicle must be a pre-2002 model. New vehicles in the same or smaller weight class will get a $3,500 voucher.
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________________________
Steven Broderick
Communications Director
Congressman Steve Cohen (TN-9)
1005 Longworth House Office Building
Washington, DC 20515
Direct: 202-226-7916
Main: 202-225-3265
steven.broderick@mail.house.gov