Clunker

June 18 (Bloomberg) — A $106 billion war-spending bill won final congressional approval after the Senate voted to retain a “cash for clunkers” provision aimed at helping the auto industry.

Action by the Senate today sends the measure to President Barack Obama for his signature. The Senate passed the bill on a 91 to 5 vote; the House approved the measure earlier this week.

Senator Judd Gregg, a New Hampshire Republican, led the effort to drop a provision providing as much as $4,500 to people who trade in their vehicles for more fuel-efficient models. He said the plan, which would cost $1 billion, was a poor use of tax dollars when the government is projected to run its biggest budget deficit since 1945.

“It is a clunker,” Gregg said of the plan. “Why should our children and our grandchildren have to pay the bill” for the government subsidizing “somebody to buy their car today? How fiscally irresponsible is that?” he said.

Senator Debbie Stabenow, a Michigan Democrat, said the proposal was needed to help auto dealers hit by an “economic tsunami.” She said the plan would “help those who have been having an extremely difficult time just holding their head above water.”