CARS Additional Funding Support Grows

Despite the wave of criticism these past few days, the support for the $2 billion boost for the Car Allowance Rebate System appears to be growing. Yesterday, the White House stepped up the pressure on undecided senators, including former Federal Reserve Chairman Alan Greenspan.

"I think if it doesn't happen this week, it's unlikely that we'll make it to the weekend with a program that can continue," White House spokesman Robert Gibbs said.

According to Reuters, the White House invited Senate Democrats to lunch today, to discuss the increase in funding for the program. So far, Barack Obama managed to secure the support of other two lawmakers, Senators Dianne Feinstein and Susan Collins.

The two were up until yesterday reluctant to express their support, but had a change of heart after seeing data provided by CARS representatives. According to their figures, 120,000 vehicles were sold under the program (although White House say only 80,500 vehicles), with the new ones achieving an average 10 percent better fuel economy than the ones traded in.

On Sunday, US Transportation Secretary Ray LaHood said the Obama administration will support the program until the Senate approves the extra $2 billion for the scheme.

"If we don't get the $2 billion from the Senate ... we would have to suspend the program next week. We will continue the program until we see what the Senate does, and I believe the Senate will pass this."

Yet according to the latest estimates, the program will run on current funding until Friday, when it might be scrapped should the money not be approved.