Auto industry rescue bill faces growing opposition
WASHINGTON — Prospects for a $14 billion auto industry rescue bill dimmed today amid growing opposition in both parties and despite urgent appeals by both President-elect Barack Obama and President George W. Bush.
Senate Republican Leader Mitch McConnell came out against the legislation — the product of a hard-fought behind-the-scenes compromise between the majority Democrats and the White House. And not even the White House's argument that it was crucial at a time of rising joblessness seemed to restore lost momentum for enactment.
Proponents scrounged for the votes to clear the legislation as early as this afternoon. President George W. Bush was lobbying for the bill, as well, arguing that the economy can't stand massive new layoffs. Obama said the country can't stand by and watch the industry collapse.
But McConnell said the measure "isn't nearly tough enough." The Kentucky Republican also called for a different bill — one that would force U.S. automakers to slash wages and benefits to bring them in line with Japanese carmakers Nissan, Toyota and Honda — in return for any federal aid.
That approach was virtually certain to be a nonstarter among Democrats who count labor unions among their strongest supporters.
And the measure was losing support on the other side as well. Democratic Sen. Claire McCaskill of Missouri, who represents an automobile manufacturing state, announced she would oppose it because of an unrelated provision giving federal judges a pay raise.
By Associated Press
