The Bush administration and Congressional Democrats have come to an agreement that could lead to a $15 billion to $17 billion auto bailout passing early next week. Far short of the $34 million sought by top executives of GM, Ford , and Chrysler , the loans would probably serve as a stepping stone until the Obama administration takes control January 20th.
“Congressional Democrats and the White House have reached an agreement,†a senior congressional aide told the Financial Times. Another source noted the two parties “agreed in principle to moving ahead but details have to be worked out.â€
This marks the first time the White House and Congress have seemingly been on the same page about Detroit’s requests. The funds are expected to come from a $25 billion loan fund originally established to help the Detroit Three meet emissions standards in the short term, as well as develop new alternative energy systems.
In a statement to the press, Pelosi said she will only agree to the plan if there is a guarantee that those funds will be “replenished in a matter of weeks so as not to delay that crucial initiative.” It’s unclear why the government would elect to take money from one fund, only to replenish it weeks later. Nonetheless, we’re expecting to hear more news in the coming days. Congress plans to vote on legislation as soon as Monday, December 8th.
