By John D. McKinnon Of THE WALL STREET JOURNAL WASHINGTON -(Dow Jones)- Complaining about what it termed partisan "gridlock" in Congress, the White House late Friday called on lawmakers to let U.S. auto makers get quick access to a $25 billion federal loan program, by dropping a requirement that the money be spent on converting to fuel-efficient vehicles.
The move represents a significant escalation of the political battle that's erupted in Washington over the struggling Big Three auto makers, ahead of a showdown next week in Congress between Democrats and Republicans.
The loan program was adopted in 2007, to help the car makers retool their plants to meet tougher future fuel-efficiency standards. The Bush administration has been scrambling to get the program up and running in recent days, as General Motors (GM) and Chrysler faced mounting financial problems.
(This story and related background material will be available on The Wall Street Journal Web site, WSJ.com.)
Even as the program's rules were being completed, however, it became clear that the loan program wouldn't be able to move funds fast enough to the auto makers, because of the environmental restrictions on the money.
Late on Friday, the White House called on Congress to overhaul the program, so that the auto makers can tap the funds immediately. White House officials said Friday that it's the most readily available pool of funds available to help the Big Three get through the crisis they now face.
"We are now actively calling on Congress to pass legislation next week that will amend the loan program and accelerate much-needed funds to the auto companies," White House press secretary Dana Perino said.
Democrats this week have argued that the administration instead should tap into a $700 billion financial rescue program in order to help the auto makers. Perino said again on Friday that Republicans oppose that route, because the financial rescue program is designed to preserve the health of banks and related financial firms.
"It has become clear to us that the congressional Democrats ...are choosing a path that will only lead to partisan gridlock," she said.
The White House still opposes dropping another requirement of the $25 billion loan program - that the recipients be "viable" businesses in order to receive funds.
- By John D. McKinnon, The Wall Street Journal, 202-862-9217
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(END) Dow Jones Newswires
November 14, 2008 17:07 ET (22:07 GMT)

Publié le 14 novembre 2008 Copyright © 2008 Dowjones