'The full $25 billion is likely to be included,' said U.S. Rep. Fred Upton, R-St. Joseph, a key figure in the efforts. House Speaker Nancy Pelosi said Tuesday that Democrats hoped to win approval of a package of government loans to help the auto industry but hadn't decided on an amount. An energy bill passed in December that included a dramatic increase in fuel economy requirements also authorized $25 billion in loans over five years to help automakers modernize factories and accelerate development of advanced vehicles to meet the new mandates, but didn't provide any funding. The automakers sought additional funds this year as they grapple with declining sales that are adding to their financial problems and growing demand for more fuel-efficient models. 'This is a very, very important industry to our country,' Pelosi said. 'It's about jobs, jobs, jobs.' The loan plan faces obstacles, however. The latest wrench is the government bailout of mortgage giants Fannie Mae and Freddie Mac. The Congressional Budget Office, meanwhile, is revising upward the $3.75 billion price-tag to guarantee the $25 billion in loans, Upton said. 'There's a lot of people saying, 'Here is Freddie and Fannie, and now we're bailing out the domestic auto industry, but it really isn't,' Rep. Candice Miller, R-Harrison Township, said. '(The Big Three) are in dire need of some reasonably-priced credit to retool. It's absolutely critical.' Miller is cautiously optimistic about winning passage. 'It's going to be a struggle. It's not easy, even if it is $25 billion. There's a lot of pushback.' Rep. Mike Rogers, R-Brighton, said the Michigan delegation is engaging in an 'educational effort' to convince members that the direct loan program is not 'a bailout' of the auto companies. 'They aren't going to use this money to pay the bills or keep the lights on,' Rogers said. 'Too many people are saying Fannie, Freddie and Big Three in the same breath.' The Big Three want the money, in part, because they have sub-investment grade credit ratings, which make it more expensive for them to borrow money conventionally. The low-cost federal loan program could reduce their borrowing costs by more than $100 million for each $1 billion borrowed. The government could also defer repayment for up to 5 years. 'The request that was made (by the auto industry) was $50 (billion), then they went back to $25 (billion). Now they are talking about what the real need is,' Pelosi said. Detroit's Big Three automakers haven't given up on seeking $50 billion, but agreed to support postponing seeking all of it this year. Several Michigan members of Congress said they would push to get the remaining $25 billion next year. 'The compressed legislative calendar poses its own challenges and that's why our priority remains on funding the existing provision,' GM spokesman Greg Martin said Tuesday. 'However, we'll continue to seek more flexibility in additional funding and rules to keep pace with potential changing economic conditions and technologies.' The White House still hasn't said if it supports a loan package. Sen. Barack Obama, the Democratic presidential candidate, has backed a $50 billion package, while his Republican rival, Sen. John McCain, has said he supports $25 billion. Obama's top economic adviser, Jason Furman, told The Detroit News that Obama would push to get the package approved and money to automakers before year's end. 'It's not a bailout because this is part of the energy bill,' Furman said. 'It's not that the auto industry came to Washington. It's Washington came to the auto industry, and it said you have to help make American energy independent. As part of doing that, the auto industry needs some help. It really is the backbone -- the hub of a large fraction of the manufacturing and service sector.' Furman noted that the auto industry has been hit by the credit crunch, $4-a-gallon gasoline, high steel prices and a bad economy that 'all happened at the same (time). No industry can adequately prepare for a perfect storm.' Michigan Republicans were lobbying the White House to win support for the package. Rep. Dave Camp, R-Midland, has spoken with Treasury Secretary Henry Paulson, White House chief of staff Josh Bolten and Jim Nussel, head of the Office of Management and Budget. Other members have also talked up the plan to the White House and cabinet officials. 'The president hasn't made up his mind yet,' said Rep. Joe Knollenberg, R-Bloomfield Township, who has also spoken with key White House officials. Knollenberg is pushing strongly for the package. General Motors Corp. Chairman and CEO Rick Wagoner will be in Washington on Friday to take part in an energy summit and to tout the direct loan program. Ford Motor Co. executives and Chrysler LLC Chairman and CEO Robert Nardelli are expected on Capitol Hill next week. Auto suppliers are also eligible for the loans, as are foreign automakers, but the bill gives priority to plants 20 years or older. You can reach David Shepardson at (202) 662-8735 or [email protected].