Report: Cash for Clunkers rebate program may be suspended, $950 million already used

CARS - Cash for Clunkers

Well, it seems like consumers are really going out there and taking advantage of the government’s new Cars Allowance Rebate System. It has been reported that just four-days after its launch, the Cash for Clunkers program has already burned through $950 million of its $1 billion budget.

Congressional sources have said that the program may have to be suspended as the Obama administration scrambles to find additional money to avoid a shutdown of the program.

A White House official and a source from the Department of Transportation have denied the reports and said that the program will not be suspended. A DOT official said that the administration is working with Congress to get more funding to keep the program alive.

– By: Omar Rana

Source: CNNMoney