$13 billion from stimulus to go to high speed rail

President Barack Obama continued to push his vision of a rebuild American economy Thursday with an event promoting high-speed rail lines, promising that a $13 billion investment would create jobs and help rebuild the nation's aging infrastructure.

Flanked by Vice President Joe Biden, an avid train traveler, and Secretary of Transportation Ray LaHood, the president said the money from the American Recovery and Reinvestment Act would be handed out to worthy projects in two stages.

"The first round of funding will focus on projects that can create jobs and benefits in the near term," Obama said. "We're not talking about starting from scratch, we're talking about using existing infrastructure to increase speeds on some routes from 70 miles an hour to over 100 miles per hour--so you're taking existing rail lines, you're upgrading them."

The second batch of funding--some $5 billion--is an investment in the future, with new trains that could travel in excess of 100 miles per hour, the president said.

"The next step is investing in high-speed rail that unleashes the economic potential of all our regions by shrinking distances within our regions," he said. "There are at least 10 major corridors in the United States of 100 to 600 miles in length with the potential for successful high-speed rail systems."

Obama again pointed out the criticisms his economic plans have met.  To those who would say that high-speed rail isn't realistic, Obama gave examples of successful lines around the world.

For those who would say the president's investment in railways does not really fight the recession, Obama replied with the story of Abraham Lincoln who built the transcontinental railroad during the Civil War.

"While fighting raged on one side of the continent, tens of thousands of Americans from all walks of life came together on the other," Obama said. "Dreamers and risk-takers willing to invest in America."

You can learn more about the White House's high-speed rail plan from the Department of Transportation.

"Cash for clunkers" proposal makes a comeback

A proposal that aims to take older, less fuel efficient cars off the streets by encouraging Americans to trade up to new models has been revived in Congress.

Rep. Betty Sutton of Ohio introduced the Consumer Assistance to Recycle and Save (or CARS) Act which would give "consumer purchase incentives for turning in vehicles that are 8 years or older to buy more fuel-efficient vehicles or to obtain a transit voucher," according to a news release from Sutton's office.

"The CARS Act will achieve many goals: consumers will finally get a break to purchase more fuel-efficient vehicles; we will all benefit from a reduction of CO2; and the auto industry will get a jumpstart to spur sales," Rep Sutton said in the release.

The proposal offers $3,000 to $5,000 incentives to put toward new cars or transit payments.

Sutton's proposal was endorsed Tuesday by Detroit's Big Three automakers and the United Auto Workers, reports the Detroit News.

A version of "cash for clunkers," as the plan is often referred to, was proposed by Sens. Dianne Feinstein, Susan Collins, and Charles Schumer in February, but never made it into the massive economic stimulus bill after the UAW raised concerns about subsidizing cars made overseas.

The Sutton measure offers higher payments for vehicles produced in the U.S. than for those made in Canada and Mexico. Overseas makes wouldn’t qualify, Bloomberg reports.