'Clunkers' program runs out of cash

WASHINGTON, July 30 (UPI) -- The $1 billion "cash for clunkers" program has been so popular in its first week, it has run out of money, casting doubt on its future, U.S. officials say.

The National Automobile Dealers Association told the U.S. Transportation Department it had a huge backlog of applications, The New York Times reported. The Transportation Department, in turn, told the dealers association to stop taking applications for the program at midnight Thursday, the Times said.

Federal transportation officials later said they would work with the White House and Congress to try to come up with funds to keep the program going.

The White House would not comment Thursday night on whether the program, formally known as the Car Allowance Rebate System, would be stopped.

"We are working tonight to assess the situation facing what is obviously an incredibly popular program," said White House spokesman Robert Gibbs. "Auto dealers and consumers should have confidence that all valid CARS transactions that have taken place to date will be honored."

Gibbs added that the administration is "evaluating all options" to keep the program funded.

Michigan lawmakers had a conference call about CARS Thursday night and planned to ask the Obama administration to use some unspent economic stimulus money to keep cash for clunkers going, The Washington Post said.

"We're going to try to figure out what's a realistic amount of money and get it into the program," Rep. Mike Rogers, R-Mich., told the newspaper.