Money Rushed to Cash for Clunkers Program

The House reacted swiftly to reports that the Cash for Clunkers program was running out of money, voting to add $2 billion from previously approved economic stimulus funds.

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.

The Senate is expected to vote on the issue next week.