Congressional Democrats Might Seek To Provide Emergency Funds for Auto Industry
Congressional Democrats on Tuesday said that they might seek to provide emergency funds for the auto industry in a stand-alone bill or as part of an economic stimulus package when lawmakers return next week for a lame-duck session, the New York Times reports (Herszenhorn/Hulse, New York Times, 11/12).
Executives from United Auto Workers, General Motors, Chrysler and Ford last week in a meeting with House Speaker Nancy Pelosi (D-Calif.), Senate Majority Leader Harry Reid (D-Nev.) and other congressional leaders asked for $25 billion in additional federal loans for health care payments for retirees. The loans would help cover the contributions from the companies to a voluntary employees' beneficiary association for UAW retirees. Under contracts negotiated last year, the automakers agreed to contribute about $56.5 billion to the VEBA, which UAW will manage. The VEBA, which will take effect in 2010 and remain operational for 80 years, will reduce retiree health benefit liabilities for the automakers by about $100 billion (Kaiser Daily Health Policy Report, 11/11). Executives for the companies also asked for $25 billion in loans to maintain operations (Thomas, AP/Hartford Courant, 11/12).
Pelosi said that House Democrats as early as next week might introduce legislation that would use funds from the recently enacted $700 billion bailout to assist the auto industry (Schatz, CQ Today, 11/11). However, with the "White House insisting that the bailout money be reserved for financial institutions, that option seemed unlikely," the Times reports.
Congressional Democrats also might add emergency funds for the auto industry to an economic stimulus package that includes additional funds for state Medicaid programs, among other provisions (New York Times, 11/12). According to CQ Today, President Bush "has been resistant to the idea of a new stimulus bill" (CQ Today, 11/11).
Prospects for Lame-Duck Session
Some House Democratic aides on Tuesday said that lawmakers likely would not return for a lame-duck session unless Bush indicates support for an economic stimulus package, Roll Call reports. One senior Democratic aide said, "I doubt it," with Bush "not really interested in playing ball on a stimulus bill." A second Democratic aide placed the chances of a lame-duck session at 50-50 (Dennis/Pierce, Roll Call, 11/11). According to Pelosi, the House will hold a lame-duck session only in the event that Bush and Senate Republicans agree to an economic stimulus package (Hyde/Snavely, Detroit Free Press, 11/11).
Fox News' "Your World with Neil Cavuto" on Monday included a discussion about an economic stimulus package. The segment includes comments from House Energy and Commerce Health Subcommittee Chair Frank Pallone (D-N.J.) (Cavuto, "Your World with Neil Cavuto," Fox News, 11/10).
