Auto Industry Bailout Plans Pushed To December

Washington, DC (AHN) - Congress has decided to put off a vote on an auto industry bailout until December. Democratic leaders want to see a proposal from industry leaders that detail how government aid will help the industry.

There was a proposal out there, which was receiving support from Republicans. That plan called for the $25 billion set aside for retooling to be used as aid instead and provided to automakers immediately. However, the proposal never found any support from Democrats and will not make it to a vote.

Democrats do not want to just supply financial aid without knowing how the funds will be used to turnaround the auto industry. Senate Majority Leader Harry Reid said while speaking at a news conference, "the automakers must be part of what we're doing."

Reid said if the automakers present an acceptable proposal Congress would return in December for a possible vote. Congress is not scheduled to meet again till January.

Also, Democrats want any funds used to help the auto industry to come from the $700 billion bank rescue fund. That idea is opposed by Republicans and the White House.

Further, General Motors has told Congress it will need some form of loan by the year's end to ensure its continued operations.