Cash For Clunkers To Be Suspended (Already?)

Welll, that was quick. The program started just last Friday.

AP sources: Govt to suspend 'cash for clunkers' (7/30/09 AP)

"The government plans to suspend its popular "cash for clunkers" program amid concerns it could quickly use up the $1 billion in rebates for new car purchases, congressional officials said Thursday.

"The Transportation Department called lawmakers' offices to alert them to the decision to suspend the program at midnight Thursday. The program offers owners of old cars and trucks $3,500 or $4,500 toward a new, more fuel-efficient vehicle."

"A survey of 2,000 dealers by the National Automobile Dealers Association found about 25,000 deals had not yet approved by NHTSA, or nearly 13 trades per store. It raised concerns that with about 23,000 dealers taking part in the program, auto dealers may already have surpassed the 250,000 vehicle sales funded by the $1 billion program."

About the only "stimulus" money that has worked and it's suspended in one week. And lawmakers want more money to keep it going.

"Even before the suspension, some in Congress were seeking more money for the auto sales stimulus. Rep. Candice Miller, R-Mich., wrote in a letter to House leaders on Wednesday requesting additional funding for the program.

""This is simply the most stimulative $1 billion the federal government has spent during the entire economic downturn," Miller said Thursday. "The federal government must come up with more money, immediately, to keep this program going.""

Ummm, I don't know about that. My car is an old SAAB (1988) but it gets too good a mileage and does not qualify. My truck is even older but it gets even better mileage. So, as a taxpayer, I get to fund this program, with no personal benefit. There's no incentive for me to keep it going.

Alternatively, since this program was attached, for some unknown reason, to H.R. 2346 "Supplemental Appropriation Act of 2009", maybe the government can ditch some of the projects in the bill and fund the cash for clunkers. My suggestion would be:

• Ditch the new embassy in Af-Pak and save $1 billion
• Let the World Bank fight the world poverty on its own and get that $3.7 billion
• Don't assist Jordan, Lebannon, Egypt and Israel, and save about $1 billion
• Don't assist IMF and get that $7.6 billion

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Supplemental Appropriation Act of 2009 Passed Senate

The Senate overwhelmingly (91-5) passed the Supplemental Appropriation Act of 2009 (H.R. 2346) without hardly any objection and without any change. The war funding bill, which has caught some public attention because it includes so-called "cash for clunkers" auto purchase subsidy program ($1 billion) and IMF funding ($7.6 billion additional quota, up to $116 billion loan).

Aside from these and money that actually goes to the U.S. military, there are a whole lot that are going to foreign countries. Middle East and Central Asia get the bulk, but Burma and Mexico also get a nice chunk:

$921,500,000, for worldwide security upgrades, acquisition, and construction as authorized, and shall be made available for secure diplomatic facilities and housing for United States mission staff in Afghanistan and Pakistan, and for mobile mail screening units.
$150,000,000 for ‘Global Health and Child Survival’
$200,000,000 may be made available for cash transfer assistance to the Palestinian Authority
$10,000,000 may be made available for humanitarian assistance in Burma
$242,000,000 shall be available for assistance for Georgia
$30,000,000 may be made available for assistance for the Kyrgyz Republic
$487,500,000 for ‘International Narcotics Control and Law Enforcement'
$390,000,000 for ‘Migration and Refugee Assistance’
$260,000,000 shall be made available for assistance for the Mexican Navy
$150,000,000 shall be made available for assistance for Jordan
$555,000,000, shall be available for grants only for Israel
$260,000,000 shall be made available for grants only for Egypt
$69,000,000 may be made available for assistance for Lebanon
$700,000,000. counterinsurgency activities in Pakistan
$150,000,000 shall be made available to support programs that directly address the needs of Afghan women and girls

The provision that would have blocked the release of the photographs allegedly showing detainee abuse in the US custody had been dropped during the negotiation in the House, which had a much closer vote (226-202).

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