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Hoekstra Criticizes the Bureaucracy Managing ‘Cash for Clunkers’
West Michigan Congressman Questions whether a Government that cannot administer a $1 Billion Car Program can administer a $1.5 Trillion Health Program

Washington, Jul 31 -

U.S. Rep. Pete Hoekstra, R-Holland, today heavily criticized the bureaucracy managing the "Cash for Clunkers" program.

"The red tape involved in ‘Cash for Clunkers’ is creating a major backlog in providing rebates to dealers and causing used cars to pile up," Hoekstra said. "If the government cannot manage a $1 billion automobile program, how can we expect it to manage a $1.5 trillion health care program?"

The original Consumers Assistance to Recycle and Save Act of 2009 (H.R. 1550) – otherwise known as the Cash for Clunkers bill – would offer a voucher worth up to $4,500 toward a new, more fuel efficient car in exchange for trading in an older vehicle that achieves a fuel economy rating of 18 miles per gallon or less, has been insured for a year and is in "drivable condition."

The House today voted to include an additional $2 billion for the original $1 billion program. Much of the money has been committed, but the government has failed to pay out a vast majority of it because of the bureaucracy involved. Examples include the 21-page paperwork process, one hour to complete one form and rejections on claims for no reason.

"The program needs major improvement for it to work effectively," Hoekstra said. "Cash for Clunkers looks good on paper, but its delivery has so far been a disaster for dealerships."

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