by Congressional Quarterly

emocratic leaders of Congress slammed the brakes on efforts by Rust Belt senators to push an auto industry loan through Congress this week, saying they first need to see a plan to make the industry viable going forward. House Speaker Nancy Pelosi of California and Senate Majority Leader Harry Reid of Nevada, along with other key Democrats, said Thursday they will give the Big Three until Dec. 2 to submit a proposal in writing to Congress that shows a path to viability that will protect taxpayers and auto workers. If they do, the Banking committees in both chambers will hold hearings that week, with floor action possible the week of Dec. 8 in a resumed lame-duck session of the 110th Congress. “Until they show us a plan, we cannot show them the money,” Pelosi said. Reid said the chief executives of the domestic automakers, who have been on Capitol Hill this week begging for an emergency loan to deal with a cash flow crisis, have failed to convince lawmakers — or their constituents — that they have a plan for restoring a viable domestic industry. The leaders moved to the microphones shortly before four Rust Belt senators — two from each party — planned to unveil a compromise loan package for the automakers. The compromise was struck by Christopher S. Bond , R-Mo., George V. Voinovich , R-Ohio, Carl Levin and Debbie Stabenow , both D-Mich. It would have relaxed requirements on a $25 billion Department of Energy loan program for automakers that was enacted last year to help the industry shift to more fuel-efficient vehicles. In an effort to address concerns of many Democrats and environmentalists, when the loans are repaid, the money would go back into the energy efficiency program, allowing it to continue operating. The compromise effort came after Republicans blocked Reid’s effort Wednesday to advance legislation that would have carved out $25 billion in emergency loans for the industry from the $700 billion financial industry bailout program. The White House opposed Reid’s effort and criticized him for blocking use of the energy loans. “What purpose would be served in having a bunch of failed votes here?” Reid said Thursday.

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   by Congressional Quarterly

Senate Majority Whip Richard J. Durbin , D-Ill., said Wednesday that leaders are trying to determine whether a compromise auto industry aid proposal floated by Republicans could win Senate passage this week. But Durbin cautioned that the proposal faces opposition in the House. The White House and Senate GOP leaders oppose a Democratic plan to carve out $25 billion of the recently enacted $700 billion financial industry bailout to give emergency loans to struggling domestic automakers. They say Congress should instead allow the industry to use for immediate operating needs an Energy Department $25 billion loan program enacted last year to help automakers retool and shift to the production of more fuel efficient vehicles. Under a plan being devised by Sen. George V. Voinovich , R-Ohio, and Christopher S. Bond , R-Mo., the $25 billion in loans for the industry would come from the existing Energy Department program. But when the loans are repaid, the money would have to go back into the energy program. That might cause the Energy Department program to be delayed but not eviscerated. “It will get some Democratic support, the question is whether it gets enough,” Durbin told reporters Wednesday outside the Senate chamber. “We’re trying to figure out whether there are enough Republicans to make this a viable option.” Durbin said he has been told that House Democrats are opposed to the plan, and acknowledged his own misgivings about modifying a loan program that was designed as part of a bargain to ensure that automakers retool and shift production to more fuel-efficient vehicles. “That money was put in place for a purpose,” Durbin said. “The question is will it ever come back.” “There’s not much time, and not a very strong appetite to be in session next week,” Durbin added.

Auto Bailout Hopes Fade as Hoyer Raises Prospect of December Session

November 18, 2008

   by Congressional Quarterly

Top Senate Republicans said Tuesday that an Energy Department loan program approved last year – not this fall’s $700 billion financial industry bailout program — should be the source of aid for struggling domestic automakers. Democrats have been pushing to tap the financial industry rescue program created last month, but the White House and GOP leaders in Congress have dug in against that idea. The dispute made the chances of action this week increasingly dim. House Majority Leader Steny H. Hoyer , D-Md., raised the possibility of calling members back in December to deal with the auto issue. “Autos are a pressing need for the auto companies and related industries. We’re talking about a lot of people,” he said at the National Press Club. He said the week of Dec. 8 is a potential date for renewing the session. Democratic leaders plan to be in Washington then for talks with economists about the need for an economic stimulus. “We’re going to be here in December, but not necessarily in session,” he said, adding that it would easier to call other members back if needed. House and Senate Democrats want to move legislation that would direct the Treasury Department to make emergency loans of $25 billion to struggling domestic automakers. Senate Democratic leaders will try to call up that bill Wednesday. House leaders are waiting to see what happens in the Senate. Senate Minority Leader Mitch McConnell , R-Ky., said he supports instead a proposal being pushed by the White House to authorize immediate use of a $25 billion Energy Department loan program enacted last year to help automakers shift to more fuel-efficient production. “I hope Sen. Reid and I can discover a way forward and give the Senate an opportunity to vote on that proposal,” McConnell told reporters Tuesday.

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