'Clunkers' Program Needs More From Senate

WASHINGTON -- The Obama administration will suspend the "cash for clunkers" program unless the Senate provides $2 billion more for the popular car incentive plan, Transportation Secretary Ray LaHood said.

He said he expected the current $1 billion pool to be exhausted before Monday. The House approved an additional $2 billion on Friday and the administration is pressing the Senate to go along before its summer vacation begins at week's end.

"If we don't get the $2 billion from the Senate ... we would have to suspend the program next week," LaHood said in an interview Sunday with C-SPAN's "Newsmakers" show. He said the administration "will continue the program until we see what the Senate does and I believe the Senate will pass this."

He added, "Any deal that is made (Monday) or the next day and that is in the pipeline, ... the dealer will be reimbursed and the car buyer will be reimbursed."

At least one GOP senator questioned the need to speed the money.

"This is crazy to try to rush this thing through again while they're trying to rush through health care, and they want to get on to cap and trade electricity tax," said Sen. Jim DeMint, R-S.C. "We've got to slow this thing down."

Former Federal Reserve Chairman Alan Greenspan said car and truck building had begun to rebound even before the program got under way. But, he added, "There is no doubt that that very extraordinary response is a very important indicator that the state of confidence in the economy is beginning to pick up." If the incentive program had gone into place six months ago, he said, "it would have probably been a dud."