The United States Congress recently approved additional funding of $2 billion for the Cash for Clunkers program after the bill was enacted a month ago. The $1 billion initial funding provided by the Obama administration was used up a week after cash for clunkers kicked off.

The additional funding is a clear indication that the program will continue despite confusion that it will have a very short run. The extra budget will be re-allocated from the $787 billion stimulus funding approved early 2009.

The U.S. Transportation announced last week that the cash for clunker was to be cancelled only four days after its official launch. The U.S. Senate however clarified that the White House encourages the people to purchase cars following the guidelines of the program.

The cash for clunkers program allows owners of cars that cannot achieve a fuel mileage of at least 18mpg are qualified for a government voucher of $3,500 when they buy a new car that will be efficient by at least 4mpg more. Those who can improve their fuel efficiency by at least 10mpg will get an assistance of $4500 for a new vehicle.

The criteria for purchasing a truck require the owner to at least achieve 2mpg more than their old truck and at least get a minimum mileage of 2mpg. This will qualify for a voucher of $3500. Those improving the mileage by 5mpg qualifie for the $4500 fund boost.

It is not yet clear up to when the Cash for Clunkers will be in effect. Consumers are advised to go to their car dealers as soon as possible to take advantage of the CARS. Additional funding might be allocated further to make the program last.