House approves $2B more for 'cash for clunkers'

By By KEN THOMAS, Associated Press Writer

Story Created: Jul 31, 2009 at 12:32 PM EST

Story Updated: Jul 31, 2009 at 12:32 PM EST

WASHINGTON (AP) - The House has voted to rush an additional $2 billion into the popular but financially strapped "cash for
clunkers" car purchase program.

The bill was approved on a vote of 316-109. House members acted
within hours of learning from Transportation Secretary Ray LaHood
that the program was running out of money.

Called the Car Allowance Rebate System, or CARS, the program is
designed to help the economy and the environment by spurring new
car sales. Car owners can receive federal subsidies of up to $4,500
for trading in their old cars for new ones that achieve
significantly higher gas mileage.

House Majority Leader Steny Hoyer said the new money for the
program would come from funds approved earlier in the year as part
of an economic stimulus bill.

(Copyright 2009 by The Associated Press. All Rights Reserved.)
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