Senate to consider several auto rescue proposals

The Senate will attempt to pass a multibillion-dollar effort next week intended to prop up the Big Three automakers, but the details of the plan have yet to be worked out.

Lawmakers expressed a new sense of urgency on Friday after the government reported more than half a million jobs were lost last month, vowing to seek an agreement that could send aid to the Detroit automakers.

{mosads}But Democrats and the White House remained at odds over where the money would come from, leaving some doubt that a solution could be reached without one side giving some ground.

Majority Leader Harry Reid (D-Nev.) has directed Sen. Chris Dodd (D-Conn.), chairman of the Banking Committee, to prepare several legislative options by Monday morning. Senate Democratic leaders hope to reach a consensus within the conference and with Minority Leader Mitch McConnell (R-Ky.) on Monday and to have votes by midweek.

House Majority Leader Steny Hoyer (D-Md.) released a statement on Friday saying the House would reconvene on Tuesday, but said it has “not yet been determined” if the chamber would consider an auto rescue package.

“At this point, we’re in the stage of people talking to each other,” said House Financial Services Chairman Barney Frank (D-Mass.).

Members have sketched out a wide variety of legislative proposals, and Democrats and some Republicans continue to pressure the White House to act on its own to help the industry. The industry sought $34 billion in aid from the federal government this week, although various proposals mentioned may involve a smaller sum of short-term aid. One major stumbling block continues to be the source of the money, and whether a package would tap the $700 billion financial rescue package or instead rely on billions of dollars in Energy Department loans intended to help car companies produce more fuel-efficient vehicles. Lawmakers could also pursue a combination of the two sources of money.

A senior GOP aide said, “It’s difficult to negotiate a procedure for considering a bill when there is no bill.”

Frank said he thinks the dismal unemployment figures that came out Friday are driving a begrudging consensus toward helping the auto industry.

“I have more optimism than I had before,” Frank said after conducting a hearing Friday with the Big Three auto executives. “I was encouraged that we were talking about how to do this, rather than whether to do it.”

Frank said that allowing the automakers to fail would be “piling disaster on disaster.”

During the hearing, Frank left to return a call from New York Federal Reserve Chairman Tim Geithner, President-elect Obama’s selection for Treasury secretary. He declined to say what they spoke about, saying only that they’d spoken briefly.

Asked if Obama’s team will be involved with the plan for the automakers, he said, “I’m sure we’ll be talking to them.”