Democrats Try to Lower Bailout Expectations

General Motors Corp. CEO Rick Wagoner told the House Financial Services Committee that collapse of the U.S. auto industry could lead to a loss of 3 million jobs within the first year and ripple throughout communities around the nation.

In sometimes contentious testimony, Wagoner was pressed on when GM would run out of money if the loans weren't extended.

He said he couldn't say precisely, but that the company now was burning through "$5 billion each month."

Still, with the $25 billion emergency package, "We think we have a good shot to make it through this," Wagoner said. He said he anticipated that, if the package is approved, GM would qualify for about $10 billion to $12 billion of the money.

President George W. Bush and Republicans in Congress have been reluctant to use the Treasury Department's $700 billion financial bailout program to finance the loans.

The White House wants Congress to draw the $25 billion from an Energy Department program established to encourage production of fuel-efficient cars.

Perino said Wednesday the administration supports legislation to authorize just that, but will not go along with the proposal by Democratic leaders that an additional $25 billion be taken from the government's existing $700 billion Wall Street bailout fund.

"The purpose of the $700 billion was clearly intended for financial institutions, and we wanted to keep that whole," Perino said. .

If Congress quits without taking any action, "then the Congress will bear responsibility for anything that happens in the next couple of months during their long vacation," Perino said.