U.S. Senate passes Cash for Clunckers bill, Obama to sign it

Following the U.S. House, the U.S. Senate passed a scaled-back $1 billion Cash for Clunkers bill and has sent it to President Barack Obama for his signature. According to Automotive News, the 91-5 vote took place after 5 p.m., after Republicans attempted to strip the auto proposal from a $106 billion war bill aimed to aid U.S. troops in Iraq and Afghanistan.

“This program will provide a much-needed boost to the struggling auto industry, including manufacturers, dealers, suppliers and other related industries,” Sen. Carl Levin, D-Mich., said. “It also will “encourage consumers to purchase more fuel-efficient vehicles,” he said.

The program would go into effect a month after the president signs the bill.

Refresher: Under the program, owners that get 18 mpg or less in combined highway and city mileage can turn their cars in for a cash voucher. If the new car gets at least 4 mpg higher, the voucher would be good for $3,500; a 10 mpg improvement would earn a $4,500 voucher.

– By: Omar Rana