WASHINGTON – Facing massive job losses, the White House and congressional Democrats are negotiating a deal to provide about $15 billion in loans to prevent Detroit's weakened auto industry from collapsing.
The White House said it was in "constructive discussions" with lawmakers in both parties to dole out the assistance as House and Senate staff aides worked through the weekend drafting bailout legislation that is expected to come to a vote next week.
A breakthrough on the long-stalled rescue came Friday when House Speaker Nancy Pelosi, D-Calif, yielded to President George W. Bush on a key point: allowing the aid to be drawn from a fund set aside for the production of environmentally friendlier cars.
White House press secretary Dana Perino said that was central to any agreement, along with requirements that the carmakers swallow tough business decisions and taxpayers be protected.
"Taxpayers should not be asked to finance assistance for automakers without a strong likelihood that they will be paid back," Perino said in a statement before Bush left Washington to attend the Army-Navy football game in Philadelphia.
Pelosi said the House would consider legislation in the upcoming week to provide "short-term and limited assistance" to the U.S. auto industry while it undergoes "major restructuring."
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