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Klobuchar Receives Cash for Clunkers Assurances from Secretary LaHood

Says glitch unique to Minnesota has been fixed Minnesota ranks in top ten in participation

August 5, 2009

Washington, D.C. – U.S. Senator Amy Klobuchar brokered a deal with Transportation Secretary Ray LaHood today that solves a problem unique to Minnesotans participating in the Cash for Clunkers program.  Klobuchar also received a commitment from Secretary LaHood that the Administration will work to fix the computer glitches that have affected dealers in Minnesota.  Klobuchar announced that Minnesota currently ranks in the top ten states for participation in the Cash for Clunkers program, with over $26 million in vouchers requested.

"Fixing the mechanics of the program and making sure that it works in conjunction with Minnesota’s registration policies are necessary tune-ups,” said Klobuchar.  “My top priority right now is making sure that the rug isn’t pulled out from under Minnesota dealers and Minnesota customers who have already participated in the program."

Even though Minnesota ranks in the top ten in Cash for Clunkers participation, some Minnesotans have had trouble meeting the program’s requirements due to a discrepancy between the federal program and Minnesota state policy regarding vehicle registration fees.

Cash for Clunkers regulations had required continuous registration before trading in the clunker.  However, in Minnesota, a person may pay their vehicle registration fees late and still be considered continuously registered with the Minnesota Registrar.  Many deals have been rejected under the Cash for Clunkers program because the program’s regulations, up until today, did not accommodate this Minnesota policy. 

Text of the letter from Secretary LaHood to Senator Klobuchar:


August 4, 2009


The Honorable Amy Klobuchar
United States Senate
Washington, DC 20510

Dear Senator Klobuchar:

Thank you for your call this morning about the Car Allowance Rebate System (CARS) program.  In response to the overwhelming popularity of the program, we are aware that some dealers have experienced delays in entering their transactions.  I want to assure you that the U.S. Department of Transportiation is working closely with dealers to improve the processing of transactions to ensure that money flows quickly to dealers while preventing fraud and abuse.  We have already seen significant reductions in the delays as a result of the steps we have implemented.  We will continue to monitor the system closely and will take whatever additional steps are necessary to make sure the program runs smoothly.

Also, we have taken steps to address the unique circumstances in Minnesota law related to motor vehicle registrations.   As a result of your bringing this to my attention, we have adjusted our transaction approval process to accommodate the 10-day grace period that Minnesota law allows for registration renewals.

If I can provide further information or assistance, please feel free to call me.


                                                                                    Sincerely yours,



                                                                                    Ray LaHood

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