The Democratic proposal would run through Sept. 30, 2010, and tap funds from an Energy Department loan guarantee program included in the economic stimulus package enacted in February.

An initial $1 billion in funding approved this summer to boost stagnant industry sales has already been exhausted, officials said.

Consumers stormed dealers over the past month to take advantage of federally backed rebates of up to $4,500 on trade ins of gas guzzlers for more fuel efficient vehicles.

Unofficial government and industry estimates show that close to 250,000 vehicles were sold under the program.

How to Use the Program

The Senate is expected to act on the House bill.

Already a key senator, Energy Committee Chairman Jeff Bingaman, said he opposes using Energy Department funds for the auto program.

Another senator, auto industry ally Debbie Stabenow, said pushing the measure out of Congress would potentially take a lot of work compared to the extraordinarily swift action in the House.

The White House supports new funding for the program on grounds the initiative so far has provided a viable, national economic stimulus amid recession.

House Majority Leader Steny Hoyer said the additional money would come from funds Congress approved earlier in the year as part of a $787 billion economic stimulus bill.

Hoyer, D-Md., said that at the request of House Republicans — whose approval was required for swift passage — the bill would include provisions for government auditors to make sure the money was being spent as intended.

House Minority Leader John Boehner said it was unclear how many Republicans would support on the plan.