Automaker loans appear imminent

Congress appears ready to approve funding for $25 billion in loans to the U.S. auto industry, but the fate of automakers’ push to use the loans for a broader range of projects was uncertain Monday.

A draft copy of the budget resolution that Congress is to consider later this week includes $7.5 billion to pay for the loans, which were passed but not paid for in last year’s energy bill. It also includes $10 million to pay for administering the loans, in part to speed the process of writing the rules that will govern how automakers and suppliers apply for the money.

But the brief section does not change any of the underlying rules that Detroit automakers had sought, such as lowering the 25% fuel economy improvement that new models would have to meet in order to qualify for loan money.

Industry officials and allies on Capitol Hill said they were still pushing for changes.

Congressional sources said the draft was still in flux, and while it could be finalized as soon as today, Congress could delay it until later this week as it deals with the Wall Street bailout plan.