Washington, D.C. – The U.S. may pass a “cash for clunkers” bill, which will provide cash incentives for motorists to trade in their older vehicles for more fuel-efficient cars and trucks.
The proposal met agreement from the White House and the House Energy and Commerce Committee, and needs to be passed by the Senate and signed by President Obama to become law.
“Cash for clunkers is a common-sense proposal that will help provide a shot in the arm for the American auto industry at a crucial time for our economy, reduce the emissions that cause climate change, and make America more energy independent,” said House Speaker Nancy Pelosi. “By helping Americans trade in their old, less fuel efficient cars and trucks for newer, higher mileage vehicles, consumers will save money at the pump, help protect our planet, and create and save jobs for American auto workers.”
Under the program, consumers would be able to trade in their old vehicles in return for vouchers worth up to $4,500 to help pay for new, more fuel-efficient cars and trucks. The program will be authorized for up to one year, and provide for approximately one million new car or truck purchases. The value of the voucher will depend on the fuel economy ratings of the old vehicles being scrapped and the new ones being purchased.