White House wary of Tuesday auto vote

The White House said Monday morning it is concerned Senate Democrats are pushing for a Tuesday vote on an auto manufacturers bailout because neither the administration nor Senate Republicans have seen legislation yet.

White House press secretary Dana Perino said both sides made progress in finding a solution to the dire financial situation the auto companies face that centers on $15 billion in short-term loans, but without seeing any legislative language, the White House is concerned Democrats might “weaken” the requirements for the companies moving forward.

{mosads}”We are looking for a better bipartisan effort so we can get this done,” Perino said.

Perino said the White House economic team met with committee staff Saturday night, and Democrats have been “moving more toward something we can support.”

The White House is adamant that any support for the companies come from existing loans and not from the $700 billion financial rescue package, and that companies asking for assistance demonstrate that they are willing to make “the hard choices” that would ensure viability in the future and that taxpayers are protected.

On the issue of viability, the White House has proposed a presidentially appointed Financial Viability Adviser (FVA) who would determine whether the companies, after having received short-term assistance, were taking steps to be viable in the future.

If the FVA determines that a company is not taking those steps then the company would have to repay the short-term loan immediately and be ineligible for any further assistance, Perino said. The FVA is still a point of negotiation, she added.

Perino said the White House is optimistic that a deal could be reached with Senate Democrats some time Monday.

“I think they have some incentive to do so if they want to have a a vote tomorrow and they want to get out of town,” Perino said.