NEWS RELEASE

Committee on Energy and Commerce
Rep. John D. Dingell, Chairman

Dingell Statement on Continuing Resolution, Direct Loans for Automakers

Washington, DC - Today the House of Representatives will consider H.R. 2638, the Consolidated Security, Disaster Assistance, and Continuing Appropriations Act of 2009, also known as the Continuing Resolution or “CR”, which appropriates $25 billion for direct loans to automakers to re-tool their manufacturing facilities to produce the next generation of advanced technology vehicles. The $25 billion was authorized in last year’s Energy Security & Independence Act which became law in December of 2007.

Congressman John D. Dingell (D-MI15) worked with his colleagues from Michigan to get the $25 billion in loans appropriated in the CR. He released the following statement this morning on the money being included in H.R. 2638:

“This is a significant achievement, particularly during these uncertain economic times, but it is a testament to the work of the Michigan Delegation that we could work together on a bipartisan basis to put Main Street ahead of Wall Street and get this package included in the CR.

“This is an appropriation of $7.5 billion in loans that will be paid back to the taxpayers at a profit, just as the Chrysler loan guarantees from the early 80’s were paid back – and the government made money.

“The loans will help keep jobs in Michigan and other states, and create new green jobs building new, more fuel efficient vehicles. This package will help us move quickly towards vehicles that will reduce our dependence on foreign oil and reduce our greenhouse gas emissions.

“Some critics will call this loan package a bailout. It is not. These loans amount to a little more than 1% of the real bailout – the one that the Bush Administration wants for Wall Street at a cost of $700 billion to taxpayers. The loans to the automakers will cost about $7 billion and will be repaid to the taxpayer at a profit. The auto direct loan package is a good deal for auto workers and a good deal for taxpayers.

“I want to thank Speaker Pelosi, Majority Leader Steny Hoyer, Senate Leader Reid and all the Democratic and Republican Leadership in the House and the Senate for ensuring that this package would be in the CR.

“I also want to again thank and commend my colleagues from the Michigan Delegation for their tireless work on this issue. It could not have happened with out the cooperation and unification of the Michigan Delegation on this issue.”

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