WASHINGTON, USA - The White House on Tuesday said it opposed Congress "raiding" the $700 billion(S$1070 billion) Troubled Asset Relief Program to bail out U.S. automakers.
"We'd prefer that Congress take the responsible, bipartisan route of using the existing $25 billion in the auto loan program to assist automakers while insisting that the firms make the difficult choices to make themselves viable instead of raiding the TARP program for an extra $25 billion," White House spokesman Tony Fratto said.
"The American people wouldn't support a $50 billion bailout of the auto industry with no credible likelihood that they'll be repaid," he said.
U.S. Senate Democrats have proposed a $25 billion loan program that would use funds from the Treasury Department's rescue plan for financial services firms. The White House favors making more flexible another law that extends automakers $25 billion in technology loans to retool factories and make more fuel efficient cars.
(Reporting by Tabassum Zakaria; Editing by Theodore d'Afflisio)