The Obama administration is telling lawmakers that its much-touted 'cash-for-clunkers' program has already run out of money. 'Cash for clunkers' going broke

The Obama administration is telling lawmakers that its much-touted "cash-for-clunkers" program is already running out of money, according to three Senate aides familiar with the discussions.

The program — aimed at giving at boost to the U.S. auto industry — was supposed to expire at the end of October. But in the one week since it took effect, it appears to have run dry of the $1 billion allocated to it, aides said Thursday.


The Obama administration had told senators that the program would be suspended at midnight Thursday, aides said, but a White House official told POLITICO that the administration is "working tonight to assess the situation facing what is obviously an incredibly popular program. Auto dealers and consumers should have confidence that all valid CARS transactions that have taken place to-date will be honored."

The White House will need to decide whether to push for more money at a time when it's also pushing an ambitious and expensive domestic agenda — or let the program fade after it was touted as a way to help Detroit while improving the environment.

One Michigan Republican, Congresswoman Candice Miller, has already come out in favor of extending the program, saying in a statement: “There can be no doubt that the Cash for Clunkers program is a complete success given the fact that the entire $1 billion allocated to the program was expended in less than a week."

She called the program "simply the most stimulative $1 billion the federal government has spent during the entire economic downturn."

Sen. Chuck Schumer (D-NY) also called the program a victim of its own success. In a statement issued

Thursday night, Schumer said: "This was a very successful program, maybe even too successful. The program should continue, but perhaps with a tune-up so that we get the most stimulus, conservation and efficiency for the buck."

And Sens. Dianne Feinstein (D-Calif.) and Susan Collins (R-Maine) seized on the news to push for their more ambitious proposal, which would also expand the program to used-car sales so that "lower-income consumers" could also participate.

"We believe that any extension of the 'Cash for Clunkers' program must go further in advancing the goals of better fuel efficiency and greater emissions reductions. We will not support any bill that does not meet these goals," they said in a statement.

Last Friday, registration began for dealers who wanted to participate in the program, which is intended to encourage consumers to trade in their old cars for a credit program to purchase new fuel efficient cars. Under the rules that went into effect last week, the purchased vehicles must be 2008, 2009 or 2010 models, and the vehicles must be purchased between July and November to qualify. And consumers would be able to receive a $3,500-$4,500 discount from car dealerships when they trade in their old vehicles and purchase a new one.