Obama administration proposes $800 million fund to clean up old GM sites

Adding on to the total of $50 billion in government aid that General Motors received through its bankruptcy process last year, the Obama administration proposed today a trust fund of more than $800 million to pay for the cleanup of closed GM sites in 14 states.

Lead of the White House Council on Automotive Communities and Workers, Ed Montgomery, said that the fund would help clean up nearly 90 properties shuttered and abandoned by GM in bankruptcy.

Montgomery said that the $800 million represents the largest environmental and economic development effort for former manufacturing sites.

Most of the money will go to clean up and raze or rehabilitate dozens of vacant manufacturing facilities and offices left by GM. The proposal would allocate $536 million for the cleanup of properties, and about $300 million to help states and communities pay for property taxes, demolition costs, plant security and other expenses.

– By: Kap Shah

Source: Automotive News (Subscription Required)