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As newly minted legislators convened in Washington on Sunday for this week's orientation and leadership elections, the 110th Congress met in its last session before passing the baton January 6. Specifically, Senate Democrats were trying to earn GOP support for their proposed bailout of the Big Three automakers. Democrats would like to see a vote Wednesday, but some concede they probably don't have the support. Senate Majority Leader Harry Reid, speaking on the Senate floor Monday, urged action on the plan. "The Treasury Department has acknowledged that they could provide the auto companies the temporary assistance to keep automakers solvent by taking money out of the $700 billion we've already provided to the Treasury Department," Reid said. "If we move forward, we can protect American jobs, help American families and prevent our economy from falling further into a recession," he said. "In the event there is objection to passing this important legislation, we'll have the opportunity to vote on a second piece of legislation ... that consists solely of unemployment insurance and relief for the auto industry and the auto industry's work force." Two House Democratic aides confirm that House Democratic leaders and House Financial Services Committee Chairman Barney Frank, D-Massachusetts, are scheduled to meet with Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke on Monday afternoon. The meeting -- to take place in House Speaker Nancy Pelosi's office -- will include an update on the Troubled Asset Relief Program, or TARP, the $700 billion measure that was passed last month to help bail out financial institutions. "One out of 10 jobs in this country are auto-related. Twenty percent of retail sales are auto-related or automobiles, so this is a national problem," Sen. Carl Levin, D-Michigan, told NBC's "Meet the Press" on Sunday. Levin is drafting legislation to throw a lifeline to Detroit, Michigan -- home of the Big Three companies. The lifeline could include up to $25 billion in loans carved out of the TARP. Congressional sources say the Democratic leaders would also discuss the proposed $25 billion bailout. The automakers have come on hard times of late. Ford announced this month that it lost $3 billion last quarter. General Motors is trading at about $3 a share, the lowest figure at which its stock has traded in more than 60 years. Chrysler has announced numerous plant closings and thousands of job cuts as its sales have plummeted over the last year. The Center for Automotive Research, a think tank in Ann Arbor, Michigan, that is pushing for a bailout, estimates about 2.5 million job cuts if just half of the Big Three's manufacturing capacity shuts down. About 240,000 of those job losses would be at the automakers; 800,000 would be at various suppliers and dealerships; and another 1.4 million job losses would come from businesses that rely on automaker spending, the think tank estimates. A letter is being circulated by Sens. Levin and George Voinovich, R-Ohio, to all senators for their signatures in support of the auto industry bailout. iReport.com: No choice but to bail out automakers? The letter -- written to Reid and Senate Minority Leader Mitch McConnell -- said the automakers "face rapidly evaporating operational liquidity" and "soon may not be able to continue to operate." Jobs that rely on the auto industry are diverse and can range from media outlets that depend on the Big Three's advertising dollars to local stores and restaurants in towns where auto plants would be shuttered. Democrats who support the bailout say the demise of Ford, GM and Chrysler would be a devastating blow to an already ailing American economy. But opponents of bailing out the industry -- including the Bush administration and top Republicans -- say TARP funds weren't intended for automakers. "There's a line of companies, of industries waiting at Treasury just to see if they can get their hands on that $700 billion," Commerce Secretary Carlos Gutierrez said on CNN's "Late Edition" on Sunday. "That is for the financial system. It's to stabilize the financial system. That should not be used." Sen. Bob Casey, D-Pennsylvania, said last week that he concurs with his congressional rivals because he can't condone using TARP funds for the auto industry when the money has yet to help homeowners facing foreclosure. Sen. Richard Shelby, R-Alabama, is one of the most vocal critics of the proposed lifeline and suggested Sunday that bailing out the Big Three would be a waste of taxpayer dollars because it would reward the companies for mismanagement. Shelby, the ranking member on the Committee on Banking, Housing and Urban Affairs, further said in his remarks on NBC's "Meet the Press" that the government should allow the companies to file bankruptcy.  See how foreign car companies have flocked to the U.S. » "They would be, in a lot of people's judgment, a lot better off to go through Chapter 11, where they could reorganize, get rid of the management, get rid of the boards -- the people who've brought them where they are today," Shelby said. President Bush and GOP leaders in Congress say they'd be willing to lift some restrictions on an already-approved program to dole out $25 billion in loans meant to help U.S. automakers design more fuel-efficient vehicles. The funds are now tied up in Energy Department red tape, but the GOP says it would be willing to approve legislation to force their prompt distribution. GM executives -- who say that without help, GM's cash will reach the operating minimum by year's end -- have said the loan money would have so many strings attached that they are not sure it can be used to solve their cash crisis. Democrats say the automakers need the existing $25 billion in loans and an additional bridge loan just to survive through the year. However, many Democratic leaders say they realize the folly of bailing out Detroit without specifying Congress' expectations of the industry. President-elect Barack Obama told CBS' "60 Minutes" on Sunday that Detroit needed help, but he opposes writing a "blank check." iReport.com: Reader believes auto bailout must come with "binding conditions" Sen. Chris Dodd, D-Connecticut, who heads the Committee on Banking, Housing and Urban Affairs, said last week, "Clearly we shouldn't be writing checks without some clear conditionality of what's going to happen with that industry -- if they're going to change and get back on their feet again." Democratic leaders would need 60 votes in the Senate to avoid a GOP filibuster, and as of last week, Dodd was certain they didn't have the numbers. Gaining those numbers became more problematic Sunday, when Obama officially relinquished his Senate seat. Vice President-elect Joe Biden, a Delaware Democrat, is also expected to be absent from this week's wrangling. Last week, Dodd said he had confirmed that the Treasury Department could use the TARP funds to help the Big Three without congressional approval. Paulson has expressed reluctance to do so, saying "the intent of the TARP was to deal with the financial industry." The Senate Banking Committee will hold a hearing on the issue Tuesday and the House Financial Services Committee on Wednesday. Despite the proposal's infinitesimal chance of succeeding, Democratic leadership aides said proponents will push for a vote this week. The pessimistic Dodd, however, has said his party should consider waiting for Obama to take office. With Obama in office, the Treasury can act without legislation. Also, with all run-off elections decided, party leaders will know the exact makeup of the 111th Congress, though Democrats are not likely to garner a filibuster-proof majority in the Senate.
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