CBS 2 reports that the federal government will suspend the “cash for clunkers” program.

Congressional officials said Thursday evening the government plans to suspend the popular program amid concerns it could quickly use up the $1 billion in rebates for new car purchases.

The Transportation Department called congressional offices late Thursday to alert them to the decision to halt the program, which offered owners of old cars and trucks $3,500 or $4,500 toward a new, more fuel-efficient vehicle, The Associated Press reported.

The congressional officials spoke on condition of anonymity because they were not authorized to speak publicly.

Through late Wednesday, 22,782 vehicles had been purchased through the program and nearly $96 million had been spent. But dealers raised concerns of large backlogs in the system, prompting the suspension.

The program was designed to be a shot in the arm for consumer confidence, but there were persistent questions about who would really benefit.

The government was hoping car buyers would finally start making deals for new rides, especially since taxpayers are now partial owners of several U.S. automakers under new bankruptcy agreements.

But while the government planned to put $1 billion into the program, it was still less than 250,000 clunkers traded in. Critics said that would leave a lot of consumers by the side of the road.

Among the other guidelines for the program: clunkers had to be no more than 25 years old and the old cars had to get 18 miles per gallon or less.

While dozens of cars were just disqualified, deals for government purchase made before July 24 still hold. The clunkers all get scrapped – a boon for the environment.

However, buyers who waited, may have been left in the dust.

(Source: WCBSTV)