The federal Department of Transportation has agreed to fix a misinterpretation of the original "cash for clunkers" program so that thousands of Wisconsin drivers will no longer be excluded from the program, U.S. Sen. Russ Feingold announced Saturday.

The Car Allowance Rebate System program had required that a car be insured for at least one year prior to trade-in for a consumer to qualify for the rebate of up to $4,500.

But Feingold, a Democrat, said current Wisconsin law does not require drivers to have car insurance. That meant about 15% of Wisconsin drivers would be excluded from the rebate program.

In a news release, Feingold said he spoke with Transportation Secretary Ray LaHood, who agreed to the change so affected Wisconsin drivers would not be excluded.

Under a recent change, Wisconsin will require auto insurance for all drivers starting June 1, 2010. New Hampshire is the only other state that does not require drivers to have car insurance.

The Car Allowance Rebate System program, also know as "cash for clunkers," started Monday. It allows consumers to receive a tax credit of up to $4,500 on the purchase or lease of a new vehicle if they trade in a qualified vehicle that gets 18 mpg or fewer.

Originally, $1 billion had been earmarked for the program, and that was used up in less than a week. The U.S. House has approved $2 billion more for the program. The Senate is scheduled to take up the measure next week, Feingold said.