On Friday the House approved an additional $2 billion for the “Cash-for-Clunkers” auto sales incentive program. The program offers consumers federally backed rebates of up to $4,500 on trade-ins of “gas guzzlers” in order to purchase more fuel efficient vehicles. The program was properly called the Car Allowance Rebate System (CARS), and was passed last month.

The initial $1 billion fund for the program has already been used up, a sign that the auto sales stimulus is working, and working well. It is estimated over 250,000 vehicles have been sold under the plan since the program’s inception. The plan was introduced to help ailing auto sales, which were down 35% in the first half of 2009 from the adjacent time frame in 2008. It was the worst slump in over a quarter century

The new $2 billion proposal would last through September 30, 2010, drawing its funding from an Energy Department loan guarantee program, a program included in the general economic stimulus package.

The Senate is expected to act soon on the House approved bill, though some Senators are reluctant to use the Energy Department for funds. The White House supports the funding method on the basis that the “Cash-for-Clunkers” program has proven to be a practical, successful economic stimulus, not to mention a popular one.

"Consumers have spoken with their wallets and they've said they like this program," said David Obey (D-Wis).

Though the Senate is not scheduled to vote on Friday, lawmakers and supporters of the plan are hopeful for a passage early next week.

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