Mo' Money

Senate Reaches Deal on 'Clunkers'

Car rebate program spent $1B, gets $2B more.

"Cash for Clunkers" lives on—until Labor Day, at least. After lengthy negotiations, the Senate reached a deal late Wednesday, agreeing to vote on a plan that would infuse $2 billion into the program that awards car buyers up to $4,500 for trading in gas-guzzlers for fuel-efficient rides. Officials estimate the additional monies could fund 500,000 new vehicle sales and last until Labor Day. The agreement couldn't have come soon enough: As of Wednesday, more than $775 million of the $1 billion fund had been spent, accounting for nearly 185,000 new vehicles, the Associated Press reports. If not replenished by Congress, the program would go broke by Friday, President Obama said. While it wasn't clear whether additional, proposed amendments to the plan would pass on Thursday, the agreement as it stands "accomplishes what we need to accomplish," said Senate Majority Leader Harry Reid.