The Trump Administration is considering sending a $250 billion, three-year, five year bailout of General Motors, Ford, Chrysler, Fiat Chrysler, Mitsubishi and Fiat, according to a person familiar with the matter.
The person said that the money would come from the Export-Import Bank, a government-backed fund that has helped prop up auto companies in recent years.
The new bailout would be the first in nearly 20 years.
But it is unclear whether the money will be available before Congress returns next week for a lame-duck session.
This week, President Trump announced the auto bailout plan and called on Congress to fund it, which has been a perennial challenge.
Trump also said last week that he is considering cutting the corporate tax rate to 10% from 35%, which would increase federal revenue and spur job creation.
A senior White House official said the White House has not yet finalised a proposal for the bailout, and the White Senate is expected to take a look at the proposal in the coming days.
Earlier this month, the Trump administration asked Congress to provide $1.2 trillion in emergency spending to prop up GM, Chrysler and Fiat.
GM and Chrysler, the world’s biggest automakers, have faced numerous challenges over the past decade, including a recall crisis that resulted in more than 10 million vehicles failing to meet safety standards and an inability to keep production of its flagship SUV at a steady level.
Ford has also faced a series of recalls and financial woes.
Cadillac, which is also facing financial problems, has been the subject of investigations into its business practices, including allegations that executives were underpaying employees and using illegal kickbacks to reward their friends and colleagues.