Obama Signs $2B Extension for "Clunkers" Program - NBC New York

Obama Signs $2B Extension for "Clunkers" Program

Says program is getting guzzlers off the road and stimulating economy



    Obama Signs $2B Extension for "Clunkers" Program
    Used cars are seen in a dumpster to draw attention to the "Cash for Clunkers" program at Performance Chevrolet in Sacramento, Calif., Saturday, Aug. 1, 2009. On Friday Congress approved an additional $2 billion for the program that provides $3,500 or $4,500 credits to buyers who trade in older, gas guzzling vehicles for more fuel-efficient new cars.

    President Obama on Friday signed a bill extending the wildly popular "cash for clunkers" plan after the Senate approved a $2 billion refill to the rebate program.

    An initial $1 billion was used up after just 10 days when an eager public bought into the program that offers up to $4,500 in federal subsidies for trading in an old gas guzzlers for new, fuel efficient vehicles.

    The Senate approved the extension Thursday on a 60-37 vote just before breaking for recess. Last week, the House voted to keep the program chugging along.

    "Cash for clunkers has been a proven success," Obama said in a written statement issued shortly after the vote. "The initial transactions are generating a more than 50% increase in fuel economy; they are generating $700 to $1000 in annual savings for consumers in reduced gas costs alone, and they are getting the oldest, dirtiest and most air polluting trucks and SUVs off the road for good."

    Get More: MSNBC, Politico