Senator Wants Accounting of Funds Spent Implementing Cash for Clunkers Program

Senator Chuck Grassley is asking the Secretary of Transportation for an accounting of the administrative costs for the cash for clunkers program that was authorized by Congress in June 2009. The program permitted motorists to obtain a voucher of up to $4,500 for trading in a vehicle that obtained 18 miles per gallon or less if the motorist purchased a vehicle that obtained certain targeted fuel economy improvements over the vehicle traded in. The program expired in September.

"Cash for Clunkers was set up very quickly and there hasn't been an accounting of the administrative costs of the program," Grassley said. "My concern is the waste, fraud and abuse that may have resulted from the vulnerabilities that can come with such a quick start."

Grassley also asked the Department of Transportation (DOT) to say when or if they took recommendations from the Inspector General about problems with the way the information technology systems was set up in the program.

"Recommendations were made, but it's not known if they were implemented," the senator said. "It seems taxpayers deserve a full report for the money that was spent on this program in the event that a similar program, maybe for a different purpose, is set up in the future."