Senate Will Pass 'Clunkers' Extension This Week: Reid

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Source: CNBC/AP

The Senate will approve a $2 billion extension of the popular "Cash for Clunkers" program before going on its August recess at the end of the week, Senate Majority Leader Harry Reid said.

The Obama administration expressed confidence Tuesday that Senate Democrats can win over enough Republicans to pass an extension of the rebate program that gives consumers up to $4,500 to trade in their old gas guzzlers for more fuel-efficient vehicles.

Transportation Secretary Ray LaHood said the program has allowed thousands of Americans to buy a new car at time when the economy is still in a recession and needs a boost in consumer spending.

"I think the last thing any politician wants to do is cut off the opportunity for somebody who wants to get a rebate to buy a new automobile," said LaHood, a former Republican congressman from Illinois.

Read more: http://www.cnbc.com/id/32282905