As of yesterday, it looked as if the ambitious, green-leaning rebate program for new car shoppers would be halted on reports that the $1 billion allocated had been used up three months before it was scheduled to expire. Dealers reported huge backlogs of consumers who had registered for the rebate, which allows for $3,500 for an improvement of 5 miles per gallon, and up to $4,500 for trade-ins with a difference of 10 miles per gallon off of the initial vehicle’s fuel efficiency.

The enthusiasm for the program provides a much-needed boost for the struggling auto sector, putting many new cars on the road and emptying a huge surplus in inventory. It also illustrates a conscious shift in the American consumer’s attitude towards better fuel efficiency and environmental awareness.

As of Thursday night, the Department of Transportation informed representatives of the nation’s car dealers to stop offering new rebates, given that the funds for the program had been exhausted. The White House issued assurances to the public by guaranteeing any rebates that had already been registered with dealers, relieving consumers who had been backlogged by the overflow in demand.

Though the future of the program is uncertain, White House spokesman Robert Gibbs seemed optimistic about finding a way to expand funding. According to the New York Times, Gibbs was confident in the future of program, saying “We’ll have a solution that people can agree on moving forward.”

One possible way to gain further funding is to reallocate some of the money granted in the stimulus bill for renewable energy research, a plan which Congress hoped to push through before its August recess begins. This bill, introduced today, would put another $2 billion into the program’s coffers.

Cash-for-Clunkers, or more formally the Car Allowance Rebate System, or CARS, represents a relatively easy, safe, and modest initiative towards better fuel efficiency, and will undoubtedly provide a boost to the nation’s automotive sector.