No agreement on aid to automakers in sight; Democrats, White House disagree on amount and source of aid

Nov.17, 2008 in Market Outlook

WASHINGTON (MarketWatch) — Congressional Democrats and the Bush administration agree that Detroit’s Big Three need and deserve federal help, but they don’t agree on how much money the automakers should be given, or where it will come from.

Given less than a week to reach an agreement, it’s possible nothing will be done until January at the earliest.
Democrats in the Senate will try to force a vote this week on a broad economic-stimulus bill that would include $25 billion in loans for the automakers as well as money for infrastructure projects, aid for states and an extension of unemployment benefits.

Passage of that bill is a long shot, with congressional Republicans threatening to delay the vote. The first hurdle could come on a procedural vote on Monday. With 50 senators in their camp for the time being, Democrats are unlikely to get enough Republican support to reach the 60 votes needed to overcome a filibuster.
If the broader bill is blocked, the Democrats plan to put forth smaller bills covering just unemployment benefits and the aid to Detroit. The House won’t vote on any legislation unless the Senate passes something first.
“If there ever were a time for working together this is it,” said Senate Majority Leader Harry Reid, D-Nev. “Senators have a choice to make: We can wait until January when we have a new Congress and new president, or we can try to start working on these problems now.”

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