Democrats Try to Lower Bailout Expectations

Congressional Republicans battled uphill to try to pick up Democratic support for the White House plan to allow auto companies to draw emergency loans from the $25 billion fuel-efficiency fund.

Democratic leaders have rejected such a course, and environmentalists don't want that money used for anything other than its intended purpose.

But the GOP approach, being crafted by Sens. Kit Bond, R-Mo., and George Voinovich, R-Ohio, would require the automakers to plow back into the fund repaid loans, interest and income from equity stakes.

The proposal, outlined in a position paper obtained by The Associated Press, is intended to satisfy Democrats concerned about raiding the fuel-efficiency loan program. Since auto makers would not be tapping those funds immediately, supporters argue, the money would be restored by the time they were needed.

During the House hearing Wednesday, Rep. Brad Sherman, D-Calif., asked the three auto chiefs seated at the witness table before him to raise their hands if they had come to Washington on commercial airliners. No hands went up. Then he asked if any planned to sell their corporate jets. Again, no hands went up.

Sherman and Rep. Gary Ackerman, D-N.Y., told the auto executives they were having a hard time justifying to their constituents bailing out companies whose chiefs fly around in expensive private jets.

Ackerman said there was "a delicious irony in seeing private luxury jets flying into Washington, D.C., and people coming off them with tin cups in their hands. ... It's almost like seeing a guy show up at the soup kitchen in high hat and tuxedo."