Lawmakers cheer $25B deal for auto industry

The U.S. House today approved $25 billion in loans for the troubled U.S. auto industry, as Michigan lawmakers hailed the plan as key toward saving thousands of jobs in the state and vowed to press for an additional $25 billion next year to boost the industry’s retooling.

The loan deal dwarfs the $1.2-billion bailout of Chrysler Corp. in 1979, and reflects the economic crisis threatening the survival of Detroit automakers and the companies that rely on them. Automakers had made the loans their priority over the past several weeks, sending all three chief executives to blitz Congress.

Under the bill, the Bush administration will have two months to write the rules for the loans, and Sen. Debbie Stabenow, D-Mich., said she expected the money to begin flowing to the industry by the end of the year.

“There is no bigger issue for Michigan than what we’re accomplishing today," said Rep. Fred Upton, R-St. Joseph. “This is a testament to the strengths of every member."