Democrats propose $25 billion in loans for carmakers
The package would be in addition to a $100-billion stimulus proposal, but Republicans -- and time -- are not on their side.
Reporting from Washington — Leading Democrats in Congress unveiled plans Monday to help financially troubled U.S. automakers with $25 billion in emergency loans as lawmakers prepared for a showdown over expanding the government's role in shoring up the economy.
But with President Bush and many Republicans expressing skepticism, the prospects are uncertain at best for action before the lame-duck session of Congress ends -- probably this week.
The bailout, in the form of emergency loans, is in addition to a $100-billion stimulus plan from Senate Democrats that includes aid to revenue-strapped states, extension of jobless benefits, funding for infrastructure projects, energy assistance to low-income families and help for families at risk of foreclosure.
But prospects are even dimmer for those additional stimulus proposals, and Senate Majority Leader Harry Reid (D-Nev.) said he would try to pass the automaker aid separately if the broader package failed. A vote could come Wednesday.
House Democrats on Monday night released their own $25-billion loan package proposal for the automakers, which included some tougher restrictions and conditions.
Both Democratic plans call for tapping the existing $700-billion Wall Street rescue package to help automakers.
Treasury Secretary Henry M. Paulson and Federal Reserve Chairman Ben S. Bernanke met behind closed doors with leading House Democrats late Monday to discuss government rescue efforts, including funds for the auto industry. Administration officials are resisting calls to use a portion of the $700-billion fund created to rescue the financial sector. The fund has already been tapped to assist banks and insurance giant American International Group Inc.
"There's not an appetite in Congress, or in the administration, to open up the . . . funding for individual industries, because once you start down that road, it's a slippery slope to other industries that might say that they need help," White House spokeswoman Dana Perino told reporters.
To make the argument that Detroit's crisis is moving too fast for delay, chief executives of General Motors Corp., Ford Motor Co. and Chrysler, along with the president of the United Auto Workers union, are scheduled to appear before a Senate committee today.
President-elect Barack Obama and congressional Democratic leaders are pushing for the aid.
