WASHINGTON - THE White House on Monday opposed Senate Democrats' proposal for a US$25 billion (S$38 billion) bailout for the US auto industry and urged instead that aid be provided through government loans already appropriated for the industry by Congress.

'We're surprised that Senate Democrats would propose a bailout that fails to require automakers to make the hard decisions needed to restructure and become viable,' White House spokesman Dana Perino said, reaffirming the administration's position.

'It would add another US$25 billion to the US$25 billion already allocated for the auto industry, raiding the Tarp of funds needed to stabilise our financial system and encourage new lending to help our economy grow,' she said in a statement.

'Congress should instead accelerate the existing US$25 billion already appropriated for the auto industry by amending the Energy Department's loan programme, but only for those firms that make the difficult choices and do the restructuring necessary to become viable without additional taxpayer subsidies,' Ms Perino added. -- REUTERS