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House passes auto bailout, Senate prospects grim
The House of Representatives approved bailout legislation on Wednesday that would force US automakers to restructure or fail, sending the measure to the Senate where prospects for passage appeared grim.
- Agencies
- Published: 08:11 December 11, 2008
Washington: The House of Representatives approved bailout legislation on Wednesday that would force US automakers to restructure or fail, sending the measure to the Senate where prospects for passage appeared grim.
"Gonna be tough, but haven't lost all hope," one Democratic aide said of chances in the Senate, which could vote as early as Thursday on the plan to provide up to $14 billion in bridge loans to help avert collapse of one or more carmakers.
Democrats sought to reclaim momentum in the bailout effort, with the bill they negotiated with the Bush administration clearing the chamber by 237-170.
"This legislation is about offering Detroit and America a chance to get back on track," House Speaker Nancy Pelosi said in a floor speech before the vote. "It gets down to a question of tough love."
The White House weighed in just before the vote with a public endorsement aimed at Republicans skeptical of the rescue and demanding a tougher approach for helping General Motors Corp, Ford Motor Co and Chrysler LLC.
"We believe the legislation developed in recent days is an effective and responsible approach to deal with troubled automakers and ensure the necessary restructuring occurs," White House spokeswoman Dana Perino said in a statement.
Democrats advocated passage based on the belief that government inaction could lead to an industry collapse that would cost taxpayers far more than the loans intended to see them through March and help them restructure.
While the House stuck to its plan for quick action, muchuncertainty surrounds the bill's fate in the Senate where a razor-thin Democratic majority cannot ensure passage.
Senate Democrats will have difficulty reaching the 60 votes necessary to overcome procedural hurdles, which some Republicans have vowed to erect to slow or even block the legislation.
Democrats need up to a dozen or more Republicans to win passage, a Democratic aide said.
"The critics have been very vocal. The question is where are the (Senate Republican) supporters of the Big Three," another Democratic aide said.
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