News & Resources

Auto industry funding programs take a hit in new budget

May 04, 2011 Brian Bradley

In recent years, the federal government has gone to great lengths to try to help the struggling auto industry. With more and more consumers trying to gain access to auto industry financing, the Obama Administration appointed a so-called "car czar" in 2009, to help the industry get back on its feet. However, thanks to a recent agreement on the budget, the position, along with four other "czar" jobs, will no longer be filled. The budget agreement, which cut $38 billion in programs, will limit the amount of funds for other auto industry-related initiatives as well. The new budget, which was recently signed by President Barack Obama, cuts $408 million from the $2.3 billion budget of the Energy Department's Energy Efficiency and Renewable Energy program. The program, which will still receive a sizable amount of money, was set up to give funds to vehicle research programs. According to a release from the Senate Appropriations Committee, the remaining money "will support research and development activities to develop new technologies that can lower the cost of deploying clean energy systems and reduce our dependency on foreign oil. The bill would also maintain previously appropriated loan guarantee funds for energy efficiency and renewable energy projects."