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Congress Considers Loans for U.S. Auto Industry

The House is considering $25 billion in loans to companies like Ford and GM to help boost their competitiveness.
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The House of Representatives is considering $25 billion in loans to the U.S. auto industry, according to a news report Friday.

The low-interest loans would aid automakers like

Ford

(F) - Get Ford Motor Company Report

,

General Motors

(GM) - Get General Motors Company (GM) Report

and Chrysler in becoming more competitive in the market for fuel-efficient cars, according to

Reuters

.

However, the House and Senate are likely to adjourn at the end of September as members return home to campaign in what promises to be a hard-fought election season. This leaves little time to accomplish any legislative work.

Sen. Debbie Stabenow (D., Mich.) wasn't hopeful on anything new passing before the end of the session. It will certainly be part of something that is moving. "Given the three-week time frame it's highly unlikely that it will be a separate piece of legislation," she said.

Government bailouts of beaten-down corporation are nothing new this year. In March, the

Federal Reserve

backed

TheStreet Recommends

JPMorgan's

(JPM) - Get JPMorgan Chase & Co. (JPM) Report

bailout acquisition of

Bear Stearns

. Just last weekend, the government took control of mortgage giants

Fannie Mae

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and

Freddie Mac

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.

In related news this week, the House passed the

Securities Act of 2008

.

Both Ford and GM were getting a nice boost in shares Friday. Ford was gaining 27 cents, or 5.8%, to $4.95, and GM was rising 35 cents, or 2.8%, to $13.10.