President Donald Trump on Wednesday signed a $3.9 billion bailout deal for automakers, including Ford, GM and Chrysler, as Congress considers the next steps in a bailout package.
The auto industry’s worst year since the Great Recession has led to record sales and a decline in sales in the United States, but it remains the biggest consumer market for the auto industry.
“The auto sector is in the midst of a sustained recovery.
While we have made great strides in helping manufacturers, we are still far from where we need to be,” Trump said in a statement.
“We will not tolerate an auto industry that continues to decline, or worse, becomes more fragile.”
The president also signed the National Automobile Dealers Association’s (NADA) emergency supplemental package that allows the NADA to negotiate with automakers in order to get their products on the road and to get federal aid for the manufacturing sector.
The NADA was created in the wake of the 2009 financial crisis to help automakers that had been struggling to recover from the recession.
In order to join the NADAs emergency supplemental, automakers will need to submit a new operating plan for the next five years and a financial report.
The president said in the statement that the NDA would work with the administration to develop a new rescue package for the industry.
“In the coming days, I will work with our allies in Congress to develop legislation that will provide financial assistance to the auto sector in the next phase of this recovery,” he said.
Trump is expected to announce additional measures in the coming weeks, including funding for the U.S. Marshals Service to patrol and apprehend people who commit crimes in the country illegally.
In April, the administration approved a $500 million plan to fund the Marshals for the purpose of hiring additional agents and making arrests in the border cities of Tijuana and El Paso, Texas.
Trump said during his address to the United Auto Workers’ International Union on Tuesday that his administration is “on track to provide tens of billions of dollars of additional assistance” to the automotive industry.
The House of Representatives is expected in late August to vote on the rescue package.
The Senate has yet to vote.
The White House has said that the government is on track to make $1.6 trillion in new spending, with $1 trillion coming from spending on transportation, infrastructure and unemployment benefits.
The administration said the money will be spent on “transportation security grants to states, localities, municipalities and tribal governments, including infrastructure repair and expansion to improve safety, reduce crime and increase economic growth.”
The NAA, which represents more than 4 million members of the auto trade, will receive about $500,000 a year in federal grants to help it expand and modernize its workforce.