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Congressman Sestak Supports Extension of Cash for Clunkers Program

Washington, D.C. With reports of a possible suspension of the successful Cash for Clunkers Program, Congressman Joe Sestak's office was in contact with local dealers yesterday to discuss the impact and options for addressing it. Congressman Sestak (PA-07) expressed his strong support for continuing the initiative, specifically pointing to its positive impact on car dealers.

As a result, the Congressman is working with House leaders to pass legislation today that would transfer $2 billion in stimulus funds to replenish the program. Funds would be moved from Title 17 renewable energy guarantees. "We were informed yesterday that the overwhelming demand for the vouchers had exhausted the $1 billion of funding provided for the program," said Congressman Sestak. "It is important that the program be continued even if it may be necessary to reduce the amount of the vouchers and/or increase the improvements required in fuel efficiency.

This $2 billion from the stimulus would still be used for our energy needs, while also helping struggling dealers." "The methods we use to assist the auto industry must reflect the fact that dealerships are small businesses, which are responsible for more than 70 percent of job creation," said Congressman Sestak. "These small businesses have been unduly affected by the massive disruption in the economy and the bankruptcy actions of General Motors and Chrysler."

To encourage increased purchases of fuel-efficient vehicles and support the dealers who sell them Congressman Joe Sestak \ voted for the Consumer Assistance to Recycle and Save (CARS) Act, HR 2751, which passed the House by a 298-119 margin, and was later incorporated into the HR 2346, the 2009 Defense Supplemental Appropriations bill, signed into law by the President on June 24, 2009.

The law funds a voucher program where the federal government offers rebates on cars and trucks that meet certain miles-per-gallon standards. This supports efforts both to address our energy crisis as well as to assist the auto industry, providing vouchers directly to new car dealers to reduce the purchase prices or down payments for new vehicles.

The Cash for Clunkers Program, formally known as the Car Allowance Rebate System (CARS), went into effect when the eligibility requirements were issued by the U.S. Transportation Department on July 27. Born and raised in Delaware County, former 3-star Admiral Joe Sestak served in the Navy for 31 years and now serves as the Representative from the 7th District of Pennsylvania. He led a series of operational commands at sea, including Commander of an aircraft carrier battle group of 30 U.S. and allied ships with over 15,000 sailors and 100 aircraft that conducted operations in Afghanistan and Iraq.

After 9/11, Joe was the first Director of "Deep Blue, the Navy's anti-terrorism unit that established strategic and operations policies for the "Global War on Terrorism." He served as President Clinton's Director for Defense Policy at the National Security Council in the White House, and holds a Ph.D. in Political Economy and Government from Harvard University. According to the office of the House Historian, Joe is the highest-ranking former military officer ever elected to the U.S. House of Representatives.