Senate approves $2 billion extension for Cash for Clunkers

Cars Allowance Rebate System - Cash for Clunkers

The U.S. Senate has approved a $2 billion extension of the Cars Allowance Rebate System (Cash for Clunkers) and has sent it to the White House. The measure, which was approved by a 60 to 37 vote, extends the successful program that has increased auto sales in the United States. President Barack Obama is expected to sign it quickly.

According to officials, the original $1 billion funding approved in June has generated more than $920 million in rebates and more than 220,000 in auto sales.

The program allowed overall U.S. auto sales to be down about 12 percent in July, when compared the same period last year; however, it has been the best performance in 2009.

– By: Omar Rana

Source: Reuters