Last night the Senate failed to approve the $14 billion emergency loan package designed to stave off the collapse of General Motors and Chrysler LLC, placing the ball squarely in the Bush administration's court.

The White House, which has steadfastly resisted using any part of the $700 billion bailout passed in October for the financial industry, may be rethinking that position in the aftermath of the Senate's action.

The decision to use the Troubled Assets Relief Program or TARP may come as early as today, with $15 billion of those funds not yet committed, the exact amount required by the companies to prevent bankruptcy declarations.

U.S. Senator Car Levin, D-Mich, said in a prepared statement, "I am encouraged that the White House said today that they will consider other options to assist the auto companies, including use of the TARP program. Use of TARP funds is the fastest, most feasible, most immediate and most certain approach to provide the emergency bridge loans needed by the auto companies."

General Motors also issued a statement saying, "We are encouraged by the White House's willingness to consider other options, including the TARP program, for immediate aid to the domestic auto industry. We are prepared to work closely with the Administration on possible solutions that could prevent further damage to our nation's economy and also allow us to embark on an aggressive restructuring plan for long term viability."

Both General Motors and Chrysler have indicated they will run out of operating capital before the end of the year. Ford, which hopes for a $9 billion line of credit, says it has funds to sustain operations through 2009.