McCain, Obama vow to push Energy Department on auto loans

WASHINGTON — Presidential candidates Barack Obama and John McCain vowed to speed up the timetable for allocation of up to $25 billion in low-cost government loans, after the Energy Department warned it might not release any money until mid-2010.

The U.S. House voted 370-58 to approve the program and Michigan lawmakers said that Detroit’s Big Three automakers and suppliers could begin seeing loans in early 2009. They inserted language in the bill that requires the U.S. Energy Department to write its final rules within 60 days of passage. The Senate is to vote as early as today on the proposal, which is part of a $600 billion bill to fund the government’s operations through March 6.


Late Thursday, the Energy Department issued a statement saying it could take “six to 18 months or more” to distribute funds and that it had “significant doubts about whether distributionof loans by January 2009 is realistic.”

That led to denunciations by both Michigan Democrats and Republicans.

McCain spokeswoman Sarah Lenti said the Arizona senator “is committed to a responsive and efficient government. In circumstances in which it is straightforward to anticipate the startup of a new program, he would insist that work would begin in advance and be completed in a timely fashion.”

Obama spokesman Brad Carroll said the Illinois senator would work to speed up the loans.

Detroit News