The so-called "clunker" bill that would have paid drivers to scrap their old, inefficient vehicles has been pulled from the economic stimulus plan being considered by the U.S. Senate.
Senator Thomas Harkin (D-Iowa) pulled the $16 billion amendment, despite strong support by U.S. automakers.
According to a Reuters report, the measure had no support from conservative Republicans with allegiances to foreign auto makers in their states. The clunker bill was for domestically assemble vehicles only.
Harkin said he would defer the measure for later consideration.
Reuters also reported that Obama’s proposal for the federal government to buy fuel efficient vehicles is meeting strong opposition from Senate Republicans, who say it is wasteful spending.
As proposed, the plan would allocate $600 million to purchase tens of thousands of fuel efficient vehicles to replace inefficient models owned by the U.S. government.
Senate Minority Leader Mitch McConnell said Sunday on CBS’s Face the Nation: "I doubt if the government buying $600 million worth of automobiles would provide the kind of stimulus that we’re talking about here."
During a visit to the Department of Energy on Thursday, Obama said: "It will not only save the government significant money over time, it
will not only create manufacturing jobs for folks who are making these
cars, it will set a standard for private industry to match."
Loading...