Cash-for-Clunkers Clears Important Hurdle

Rep. Betty Sutton (D-Ohio) has agreed to strike the requirement, which likely violates international trade law anyway, and reconcile her bill with other proposals. The compromise bill would likely give car buyers a $1,500 to $5,500 discount on new cars and would allow vouchers to be used on mass transit.

Even if the various bills are reconciled, Congress must still find funding for the proposal. Some lawmakers have pointed to the Recovery and Reinvestment Act, which is already law, but what portion of the bill the money would come from remains unclear.

Congress remains optimistic, though, and hopes for passage by mid-summer. President Barack Obama has already indicated he would sign such a bill.

Car Trade-In Proponents Near a Deal (The Wall Street Journal)