WASHINGTON (CNNMoney.com) – The Obama administration has signaled its support for a congressional effort that aims to boost the troubled car industry by subsidizing new cars sales for consumers who scrap old ones.
Congressional Democrats, emerging from a meeting at the White House on Tuesday, said they had struck a deal on a bill to establish a one-year program to encourage the purchase of 1 million new cars and trucks that get better gas mileage.
Under the so-called cash-for-clunkers legislation, consumers with old, gas guzzlers could get $3,500 or $4,500 in government vouchers to use toward the purchase of new cars that get gas mileage that exceeds the old car's by four miles per gallon.
"It's going to be a dramatic boom for our economy," said Rep. Henry Waxman, D-Calif., who heads the House Energy Committee.
The bill would be a part of a larger energy bill, which House leaders hope to pass before Memorial Day, Waxman said in an impromptu press conference on the White House lawn with other Democrats on the House Energy committee.