House Authorizes $25 Billion in Loans to Auto Industry

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The House of Representatives on Thursday passed a loan package totaling $25 billion to aid the struggling auto industry. The legislation, which passed by a vote of 370-58, now moves to the Senate.

Although the package is unrelated to the $700 billion bailout for the financial sector being considered in Congress, the credit freeze has shut the auto industry from private lending. The legislation only authorizes loans, which must be repaid. So it's not a bailout.

Automaker General Motors (GM Quote), Ford (F Quote) and Chrysler have pushed hard for the legislation's approval. Both Michigan and Ohio would benefit the most from the legislation -- two key battleground states in the fall presidential election -- and presidential candidates Sen. Barack Obama (D., Ill.) and Sen. John McCain (R. Ariz.) have endorsed the legislation. ...