The Bush administration said this morning that it would step in to prevent the U.S. auto industry from collapsing after the Senate failed to pass a rescue package yesterday, the Associated Press reported. The Treasury Department also announced that it would act to avoid any possible collapse of the nation’s Big Three automakers. Two of the three, General Motors Corp. and Chrysler LLC, have said they might run out of cash in the next few weeks.

Funding could come from the $700 billion financial industry bailout fund. About $15 billion remains uncommitted from the first half of the total package after the Treasury Department distributed $335 billion to banks and insurance companies. To access the second half of the bailout money, the administration would need approval from Congress, which could block access to the funds or set new restrictions on how the money is used.

While many congressional Republicans and some economists believe General Motors, Chrysler and Ford Motor Co. should be pushed into prearranged bankruptcy, which would allow them to restructure quickly, most Democrats and automakers argue that it would deter consumers from buying cars from U.S. automakers. A collapse in the industry could also affect the nearly 250,000 workers employed by the companies and another 730,000 that produce materials and parts for cars.