WASHINGTON, D.C. - Last week, auto industry executives from General Motors, Ford and Chrysler asked Congress for federal assistance, arguing that without help they would not remain solvent through the spring.   The Committee for a Responsible Federal Budget (CRFB) urges policymakers to weigh the potential benefits of any assistance to the industry against the costs to taxpayers.

"There are so many unanswered questions surrounding this multi-billion dollar bailout," said Maya MacGuineas, President of CRFB.  "We need to be able to directly compare the costs of aiding the industry versus the costs of doing nothing."

The White House and Congressional leaders have completed negotiations on legislation providing $14 billion in bridge loans to the Big Three, and the House of Representatives voted to pass the bill on Wednesday.  Under the House-passed legislation, the auto companies must submit major restructuring plans to a Presidentially-appointed "car czar" who would be responsible for evaluating the restructuring and disbursing the bridge loan funds.     

The U.S. Treasury reported a $408 billion dollar deficit in the first two months of the current fiscal year and CRFB has predicted a $1 trillion deficit for 2009-a number which is looking increasingly conservative with all the new plans for spending.

"It is critical that we carefully evaluate the benefits of each dollar spent," said MacGuineas. "The huge numbers that are being tossed around should not be an excuse to throw money at the many problems plaguing the economy without a plan to ensure that it is money well spent.  Taxpayers, or their children, are going to pay for each and every bailout one way or another." 

The Committee for a Responsible Federal Budget is a bipartisan organization committed to educating policy makers and the public about issues related to fiscal policy. The Committee is located at the New America Foundation. Please visit www.crfb.org.