Cash for Clunkers Funding. After running out of funds almost immediately, Congress quickly introduced yet another bill (H.R. 3435) that would provide an additional $2 billion for the “Cash for Clunkers” program.
The “Consumer Assistance to Recycle and Save Act” (H.R. 2751) would authorize $4 billion for an auto trade-in program that’s also known as “cash for clunkers.” Under the program consumers were offered rebates of up to $4,500 if they traded in their old cars for more fuel-efficient ones. The vehicles traded in were destroyed, meaning cars not ready for the junkyard would be taken off the road, reducing the stock of used vehicles and inflating the prices of used cars.
The House passed H.R. 3435 on July 31, 2009 by a vote of 316-109 (Roll Call 682). We have assigned pluses to the nays because the federal government should not be subsidizing the car industry and because it is unconstitutional and wasteful.
