Christina Romer, Chair of the President's Council of Economic Advisers, just said unequivocally on CNBC that within the White House, Agencies, and Congress, there is a flurry of activity regarding the wildly-successful "Cash for Clunkers" Program and that the program will have the money to continue despite rapidly burning through its inital funding.
Romer says go out this weekend and buy a car if you want to... The money will be there.
UPDATE 4: AP: HOUSE ALLOCATES $2B TO EXTEND CASH FOR CLUNKERS
The House voted Friday to rush an additional $2 billion into the popular but financially strapped "cash for clunkers" car purchase program.
The bill was approved on a vote of 316-109. House members acted within hours of learning from Transportation Secretary Ray LaHood that the program was running out of money.
President Barack Obama praised members of Congress from both parties for rushing to pump new money into a popular cash-purchase program that is running out of money.
UPDATE 3: Bloomberg: Congress Beginning Emergency Measures to add $2B
The U.S. House opened debate on an emergency measure to add as much as $2 billion to the "cash for clunkers" program after a burst of demand exhausted most of the initial $1 billion.
The initiative to encourage new-car sales is still in operation, White House press secretary Robert Gibbs told reporters today. Members of Congress had said late yesterday that the clunkers offer was being suspended.
"If you were planning on going to buy a car this weekend, using this program, this program continues to run," Gibbs said. "If you meet the requirements of the program, the certificates will be honored."
UPDATE 2: CNBC: Congress will add $2B to the plan
UPDATE 1: CNBC Romer Interview Recap
"I just got a note from our legislative folks that absolutely, if people are going out and want to buy a car this weekend, that program is still there, it has not been suspended," Romer said during a live interview. "I can tell you there has been a flurry of activity this morning, working with the agencies, working with Congress, to make sure there's the funds for it."
Reports had surfaced over the past day or so that the government was suspending the program because overwhelming demand had drained the original funding stream. The $1 billion allocation was targeted to last through Nov. 1, but the program saw overwhelming demand.
"The good part of this story is how much people are responding to this program," Romer said. "We think it's great for the environment and great for the auto industry. This is good news."
Key members of Congress were notified by the Secretary of Transportation on Thursday that the program would run out of money at midnight, sources said.