For Immediate Release: December 12, 2008

Sutton Calls for Immediate Assistance to Domestic Automakers

Urges swift action from the President on the use of TARP funding to assist the auto industry

WASHINGTON, DC -Today, Congresswoman Betty Sutton (D-OH) made the following statement on the Senate Republicans' actions to block emergency loans for the domestic auto industry. The loan package, which passed the House Wednesday night with Congresswoman Sutton's support, would have provided $14 billion in emergency bridge loans to the domestic auto industry to protect the millions of American jobs and families that depend upon it and associated industries.

"I am extremely disappointed that about 10 Senate Republicans stalled this critical legislation, endangering our economy and an estimated 3 million jobs across the country. According to the Department of Labor, our country lost 533,000 jobs in November alone - the largest one-month loss in 34 years. The failure of American automakers would cause unemployment numbers to skyrocket even further, as millions of families lose their jobs and health insurance. In a shortsighted and ill-conceived move, Senate Republicans have blocked an assistance package that will help the auto industry become more competitive and prevent devastating job losses. This is a critical time for our nation's economy. I will continue to fight to bolster our auto industry and to strengthen the economic stability of our local communities, our state and entire nation," said Congresswoman Sutton.

Several weeks ago, Congresswoman Sutton called for funds from the Trouble Asset Relief Program (TARP) to be used for bridge loans for the auto industry. Today, in light of the Senate's failure to act, the White House announced that it will likely utilize TARP funding for loans to the auto makers.

"After initially rejecting the idea, I am glad the President appears willing to use TARP funds to assist the auto makers and preserve these vital jobs. I urge the President to act swiftly to provide this necessary assistance to our auto industry. Hardworking families in my district and across the country depend on it. The costs of failing to provide the needed bridge loan funding to assist this critical domestic industry would far exceed the amount of the proposed loans. It does not make sense to pay the costs of the staggering job losses and risks to our national security that will occur after it has happened, rather than prevent it by providing loans that will be repaid, keep people employed, and the industry running," said Congresswoman Sutton.

Contact: Erin Donar at 202-225-3401 or Erin.Donar@mail.house.gov