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Public Statements

Rep. Chu Votes To Boost 'Cash For Clunkers' Program

Press Release

By:
Date:
Location: Washington, D.C.

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Today, Rep. Judy Chu, D-CA32, voted to increase funding for the "cash for clunkers" program. The initial launch has been so successful in encouraging Americans to trade in their old gas guzzlers for new fuel-efficient cars, that funding ran out and Congress is acting quickly to extend it.

The program allows consumers to trade in their old, gas-guzzling cars for vouchers worth up to $4,500 to help pay for new, more fuel-efficient vehicles. Almost 200,000 cars have already been bought through the program, and it is expected to spur the sale of up to 800,000 more fuel-efficient cars and trucks, while stimulating the ailing auto industry and reducing our dependence on foreign oil.

"This is a smart program that will help grow our clean energy economy, cut down on pollution and save money at the pump as we reduce consumption by over 250 million gallons of gas," said Rep. Chu. "It goes a long way towards getting Americans back to work and behind the wheel of a cleaner, more environmentally-friendly car."

The legislation provides rebates for cars and trucks in the following four categories:

• Passenger Cars: The old vehicle must get 18 mpg or less. New vehicles with improvement of at least 4 mpg will get a $3,500 voucher. New vehicles with improvement of at least 10 mpg will get a $4,500 voucher.

• Light-Duty Trucks: The old vehicle must get 18 mpg or less. New vehicles with improvement of at least 2 mpg will get a $3,500 voucher. New vehicles with improvement of at least 5 mpg will get a $4,500 voucher.

• Large light-Duty Trucks: The old vehicle must get 15 mpg or less. New vehicles with improvement of at least 1 mpg will get a $3,500 voucher or trade-in of a "work truck." New vehicles with improvement of at least 2 mpg will get a $4,500 voucher.

• Work Trucks: The old vehicle must be a pre-2002 model. New vehicles in the same or smaller weight class will get a $3,500 voucher.

The initial bipartisan legislation was supported by a broad coalition that includes the AFL-CIO, UAW, car dealers, the U.S. Chamber of Commerce and the National Association of Manufacturers.

"Americans of all stripes came together on this bill because it's a win for the consumer, the economy, the environment and the auto industry," said Rep. Chu. "We're able to save American consumers money and save American jobs, at the same time we help our struggling auto dealers and continue down the path towards a cleaner, greener economy."


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