Democrats Reject Auto Bailout

Lawmakers failed to reach an agreement today on a proposal to provide $25 billion in emergency aid to the ailing auto industry but are likely to come back after Thanksgiving to try again, Democrat aides said.

The failure comes despite a last ditch effort by a bipartisan group of congressional allies of the auto industry crafted language this morning and presented it to House Speaker Nancy Pelosi (D-Calif.) The group sought to push an idea endorsed by the White House, which would modify an existing loan program created to help the automakers develop advanced technologies and retool factories to produce more fuel-efficient vehicles. House leaders have said repeatedly that such a solution would not be acceptable to them and they did not reach an agreement today.

Yesterday, Senate Democrats abandoned plans to take $25 billion from the $700 billion financial rescue program enacted last month, acknowledging that they did not have enough votes. "I think there is a genuine concern here of getting something done during this period of time so that we don't lose General Motors," said Sen. George V. Voinovich (R-Ohio) yesterday. "I think most people realize that this country's in a deep recession. If we lose GM . . . it could put us over the cliff."

But House Speaker Nancy Pelosi (D-Calif.) has ruled out changes to the existing loan program. Several companies have already applied for the funds, and Democrats fear the car companies might back away from their commitment to build cleaner cars if the program's terms are changed.