It's a Done Deal: Bush Approves $25 Billion Loan Package for Automakers

The $25 billion loan package is the biggest federal subsidy for the auto industry since the 1980 bailout of Chrysler. The loan package was authorized — but not funded — in a 2007 energy law that requires automakers to improve the fuel efficiency of their vehicles by 40 percent by 2020.

The president's signature was the final step in the loan approval process and comes after a massive lobbying effort on the part of General Motors, Ford and Chrysler. On Monday, GM Chairman and CEO Rick Wagoner took the unusual step of submitting to a videotaped interview on the corporate GM FastLane blog, pressuring the government to approve the loan package.