Proposal: Spend Rejected Stimulus Funds On 'Cash For Clunkers' Program

By: Associated Press Email
By: Associated Press Email

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A pair of Democratic senators wants the stimulus money that several governors have turned down to be used to stimulate the beleaguered auto industry instead.

The money states don't want could help pay for a so-called "cash for clunkers" program, which is estimated to cost about $2 billion. Sens. Dianne Feinstein of California and Chuck Schumer of New York said the states have refused to use about $1.6 billion in stimulus money so far.

Under a cash for clunkers program, drivers could get vouchers for thousands of dollars when they turn in their old fuel-inefficient vehicles for scrapping and buy vehicles that get good gas mileage.

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