WASHINGTON – Following the failure of the U.S. Senate to enact legislation to extend loans to the domestic automakers, U.S. Congressman Bart Stupak (D-Menominee) and the entire Michigan congressional delegation wrote this morning to President Bush urging him to use existing authorities to provide financial assistance to the auto industry until the 111^th Congress, which will convene in January, can pass a restructuring package to ensure the industry’s long-term viability. 

“The lame-duck Senate voted against the best interest of American workers,” Stupak said.  “Fortunately a new Congress will convene in 25 days.  With a stronger majority in the Senate committed to standing up for the middle class, I am optimistic that Congress will ultimately act to help the automakers through this economic crisis.”

The Bush administration quickly announced on Friday that it would act to prevent the collapse of the auto industry, including the possible use of a portion of the $700 billion Wall Street bailout package to aid the automakers.

“I am pleased President Bush and Secretary Paulson see the urgency of this crisis and have reversed their position on considering the use of money from the Wall Street bailout to provide loans to the automakers,” Stupak said.  “More than $200 billion has been handed out to Wall Street firms since the end of the October to protect workers who receive annual bonuses four times larger than most northern Michigan families earn in a year.  It is appropriate to use a small portion of the billions that remain for the Wall Street bailout to save millions of middle class jobs.”

The House voted 237-170 on Wednesday night to provide $14 billion in bridge loans for the domestic automakers.  A procedural vote on the bill failed in the Senate late Thursday night.  Sixty votes were necessary to move forward with consideration, but it failed 52-35 with four Democrats and 31 Republicans voting against it.

“After weeks of discussions, negotiations and hearings, I am deeply disappointed in the Senate’s failure to reach an agreement on loans for the domestic automakers,” Stupak said.  “The Big 3 have submitted restructuring plans to Congress and concessions have been made by workers as well as management.