Cash for Clunkers program scrapped in Senate

Earlier this month Congress was considering a plan to offer incentives to get older, gas-guzzling vehicles off the nation’s roads. As part of the stimulus package now being built in Washington, legislation was introduced in the House and Senate called the 'Cash for Clunkers' program. Under the plan, drivers would have received vouchers of up to $4,500 for turning in their old fuel-inefficient vehicles for scrap and buying vehicles that get good mileage. The program was slated to operate for four years and involve retiring nearly one million vehicles per year, allegedly saving between 40,000 and 80,000 barrels of fuel per day by the end of the fourth year. Instead, Democratic Senator Thomas Harkin of Iowa pulled the amendment, despite strong support from domestic car building states, reports Reuters.