Today in Washington D. C. - Nov 17, 2008

The Senate reconvenes at noon today. Votes could come this week on a new rescue package for domestic auto manufacturers and a collection of public lands bills that Reid wants to move over the objections of Sen. Tom Coburn (R-OK). The House will reconvene on Wednesday, but it’s not clear if any new legislation will be offered.

From Senate & News Sources: As the Senate returns today for a lame-duck session , attention is focused on proposals for a potential rescues package for domestic auto manufacturers. The companies are looking for $25 billion in loans. Some leading Democrats are pushing to introduce a bill today, but no one has provided any details of what would be in such a bill.

However, there doesn’t appear to be much public support from Democrats for this approach. USA Today notes that “among Democrats, there has been a lack of full-throated support. Democratic Sen. Claire McCaskill of Missouri, home to three American-owned auto plants, said in a statement Friday, ‘We are going to have to do more to protect tax dollars for me to vote for this.’” According to USA Today, “The Bush administration opposes using part of the $700 billion financial rescue package to help the automakers. The White House has instead proposed freeing up a separate $25 billion in loans that were designed to help carmakers retool factories to build more fuel-efficient vehicles.”

The White House proposal is something to consider, but “Democrats . . . don’t want to divert that money. Senate Majority Leader Harry Reid of Nevada on Friday called the idea ‘unacceptable.’” Democrats don’t seem to want to go down this road since it pits two of their key constituencies against one another: environmental groups who wanted the green vehicle incentives, and unions who want the auto industry rescued. Kimberley Strassel had a good discussion of this dilemma in her Wall Street Journal column on Friday.

Indeed, as Senate Republican Leader Mitch McConnell said Friday, “It would be helpful to know if a majority of [Sen. Reid’s] caucus even supports what he will propose. The silence from the Democrat rank and file on this matter has been deafening.” As discussions on the auto industry continue, Sen. McConnell identified an important issue that hasn’t received as much attention: “We owe it to the people of Nevada, Kentucky and all across America to make known the impact this bailout would have on the deficit; the taxpayers deserve to know if this bailout would increase the national debt and raise their taxes.”
See also: Republicans blast auto bailout plan and Prospects of auto industry aid plan dim in Washington stalemate

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