The U.S. House of Representatives passed the "Cash for Clunkers” bill on Tuesday, sending the legislation to the Senate. The $4-billion bill would provide consumers with cash vouchers to purchase new, more fuel-efficient vehicles after getting rid of less-efficient “clunkers.”

To be eligible, the bill states a “clunker” must get 18 mpg or less in combined city and highway fuel ratings. Under the program, consumers who purchase new vehicles that are at least 4 mpg more efficient than their previous vehicles would receive a $3,500 voucher. A $4,500 voucher would be given for purchasing a vehicle that’s at least 10 mpg more efficient.

Cars that are 25 years or older and those that haven’t been insured for the past year aren’t eligible for the program. The program would last for one year or until funding runs out.

A similar bill currently in the Senate would take funding from current stimulus dollars, whereas the bill passed by the House would require new funding.

“‘Cash for clunkers’ is a common-sense proposal that will help provide a shot in the arm for the American auto industry at a crucial time for our economy, reduce the emissions that cause climate change, and make America more energy independent,” House Speaker Nancy Pelosi said in May. “By helping Americans trade in their old, less fuel efficient cars and trucks for newer, higher mileage vehicles, consumers will save money at the pump, help protect our planet, and create and save jobs for American autoworkers.”

The Specialty Equipment Market Association (SEMA) issued a statement last month expressing its disappointment in the measure because scrapping cars would jeopardize the jobs of independent repairers.

The Automotive Aftermarket Industry Association (AAIA) also opposes the bill, claiming it would prematurely destroy vehicles and their parts and components, limiting low- and middle-income families’ access to used vehicles.

Click HERE to read about the bill's introduction.

Click HERE to read an essay in support of Cash for Clunkers by National Auto Body Council Executive Director Chuck Sulkala.