Congress Postpones Stimulus Package, Automaker Aid

Congress went on recess last week without passing legislation to stimulate the sagging economy or to provide aid to the Big Three automakers. Lawmakers did, however, pass a bill to extend unemployment benefits an additional 7 to 20 weeks. President Bush signed the bill into law on November 21.

The Chamber urged Congress to take action to stimulate the economy, laying out a specific set of recommendations that includes, among other things, temporarily reducing borrower and lending fees for Small Business Administration 7(a) and 504 lending programs, extending bonus depreciation and increased Section 179 expensing provisions, and adopting a temporary investment tax credit.

The Chamber also urged Congress to provide $25 billion in loans to the U.S. auto industry to prevent its collapse and the broader economic havoc it would trigger. “The market is experiencing millions of lost sales, declines unseen since the early 1980s recessionary period,” Chamber Executive Vice President Bruce Josten wrote in a letter to members of Congress. “These sales declines put at risk not only auto manufacturers, but their network of suppliers, vendors, and other businesses that provide goods and services to them.”

Congress is expected to return to Washington in early December to reconsider aid to the auto industry. Contact your member of Congress during the Thanksgiving recess and urge them to support U.S. automakers and small businesses.

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