Cash for Clunkers Suspended: $2 billion increase will face hurdles

The U.S. government had a bit of a shock yesterday when they found that their Cash for Clunkers program had run out of funds, this lead to the incentive being suspended. The Obama administration has been working alongside Michigan lawmakers to make another $2 billion in funds available, but getting the extra money will face some tough hurdles.

The Obama administration said that they plan to keep the Car Allowance Rebate System (CARS) running as long as they can in the hope of helping to revive the auto industry. Making another $2 billion available will have to go through Congress, getting it through in time for the August recess is going to take some hard work.

According to Freep.com, the house will adjourn for a month today; the House Democratic leaders are looking to hold a vote today to make another $2 billion available from the energy loan program. The original Cash for Clunkers plan had set aside $4 billion, but it was cut to just $1 billion.

CLICK HERE to keep updated with the latest news, share a comment or problems with products and services. Follow us on twitter or read more Cash for Clunkers news.