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Senate GOP puts brakes on bailout

House passes Detroit deal

By S.A. Miller (Contact) and Kara Rowland (Contact) | Thursday, December 11, 2008

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The $15 billion bailout loan for Detroit automakers that the House passed Wednesday is still far from a done deal as a collection of Senate Republicans is raising roadblocks to the taxpayer-funded handout brokered by Democrats and the White House.

"These rescue loans are necessary - not to reward bad decision-making in Detroit, but to protect 3 million American jobs, 3 million livelihoods; 3 million families depend on the automakers," House Majority Leader Steny H. Hoyer, Maryland Democrat, said during floor debate. "Are we really willing to put those workers at risk in this deep recession, after a month in which our country just lost 533,000 more jobs?"

Senate Minority Leader Mitch McConnell of Kentucky did not threaten a Republican filibuster but said many members voiced concerns about the plan.

"I haven't made a final decision that I've announced myself with regard to the proposal that's been negotiated," Mr. McConnell told reporters after a closed-door policy luncheon where Bush administration officials tried to sell Republicans on the deal.

The measure did not appear to have enough Republican support to survive in the Senate, which remains narrowly divided between the parties so that bipartisan support is critical to achieve the 60 votes required to advance most legislation.

Members of Congress suffered fierce criticism back home for the $700 billion Wall Street rescue and potentially face more constituent outrage for backing another bailout, especially in conservative states where the auto industry is not predominant.

Lawmakers on both sides of the aisle agreed that the failing car companies need help but disagreed on whether a federal bailout was the best remedy for the auto industry's ills.

The public also is split on the issue. A Gallup Poll this week showed that 51 percent of Americans oppose the bailout and 43 percent support it, though support spiked to 52 percent when pollsters added that one of the Big Three would go bankrupt without the aid.

The House passed the bailout by a vote of 237-170, with 205 Democrats and 32 Republicans supporting the measure. Casting votes against the measure were 20 Democrats and 150 Republicans. One Republican, Rep. John Campbell of California, voted present.

The Bush administration said it would continue to work to convince senators that the bill will spur desperately needed restructuring of the U.S. auto industry while providing ample protection of taxpayer dollars.