Washington, D.C. – The U.S. Senate has approved an additional US$2 billion for the “Cash for Clunkers” initiative, which offers consumers up to $4,500 when they trade in an older vehicle for a new, more fuel-efficient model.
The program began in late July with $1 billion in funding, with the program to stay in place until the funding ran out, which was originally estimated as November. The funding was quickly depleted and on August 2, Transportation Secretary Roy LaHood said that the program would be suspended if the Senate did not approve additional funding.
The Senate voted 60-37 in favour of the bill before its August recess. The funding will allow the program to continue, but several critics have warned that the extra funding will only last until Labor Day. Some manufacturers have also run low on inventory due to the program’s popularity.