$14 billion auto bailout bill clears the House
White house lobbies GOP; Tough Senate battle for loan program remains
WASHINGTON - The House pressed toward passage of a $14 billion bailout for the nation’s imperiled auto industry Wednesday night, but the hard-fought deal between Democrats and the Bush White House was in jeopardy amid strong opposition from GOP senators.
Republicans were in full revolt against their party’s lame-duck president over the measure, balking at helping Detroit’s struggling Big Three without hefty concessions from autoworkers and creditors, and furious about an environmental mandate House Democrats insisted on including in the measure.
Democratic leaders still held out hope that the emergency aid could be enacted by week’s end.
The White House, though not formally endorsing an agreement with congressional Democrats, dispatched administration officials to Capitol Hill to make a case for the rescue package. During a contentious, closed-door luncheon with Senate Republicans, White House Chief of Staff Josh Bolten got an earful of criticism from the rank-and-file, some of whom have already announced plans to block the measure.
“They got a good dose,” said opponent Tom Coburn, R-Okla., as he emerged from the session.
Even auto state Republicans who have pushed hard for a bailout said the measure needed work. Sen. Kit Bond, R-Mo., said he wanted to see changes. And Sen. George V. Voinovich, R-Ohio, said the bill didn’t have the necessary Republican votes to pass Congress.
The plan would provide money within days to cash-starved General Motors Corp. and Chrysler LLC, while Ford Motor Co. — which has said it has enough liquidity to stay afloat — would be eligible for federal aid as well.
It would create a government “car czar,” to be named by President George W. Bush to dole out the loans, with the power to force the carmakers into bankruptcy next spring if they didn’t cut quick deals with labor unions, creditors and others to restructure their businesses and become viable.
“To give up on the auto industry now would be to condemn the American economy at one of its most vulnerable periods in our economic history to a degree of further hurt,” said Rep. Barney Frank, D-Mass, the Financial Services Committee chairman.
Opposition from Republicans reflected the tricky task of enacting yet another federal rescue in a bailout-weary Congress, with Bush’s influence on the wane.
“People realize that this bill is an incredibly weak bill, (and) is the product of an administration that wants to kick the can down the road and let somebody else deal with it,” said Sen. Bob Corker, R-Tenn.
