WASHINGTON - Not since just after the terrorist attacks of September 11, 2001 have so many Americans been out of work. This morning, the labor department reported jobless claims rose by 32,000 last week alone.

The news comes as the country's big three auto makers teeter on the brink of financial ruin. Ford announced it will temporarily shut down nine North American plants, slashing production to deal with an 18 percent drop in U.S. sales. Without a cash infusion courtesy of the federal government, General Motors says it will run out of money by the end of the year.

Urgently shifting course, the Bush administration is abandoning the centerpiece of its massive $700 billion economic rescue plan and exploring new ways to shore up not only banks but credit-card, auto-loan and other huge nonbank businesses.

Two hearings will be held on Capitol Hill Thursday, one in the House and one in the Senate, both dealing with how the auto industry might benefit from the bailout package passed last month.

On the Hill, Democrats are finalizing plans to push for a $25 billion rescue plan for the big three auto makers. General Motors said it's broke and experts warn if GM goes under, the ripple effect could cost the U.S. economy three million jobs and $150 billion in lost revenue.

Taking a break from his job in Arlington, Anne Arundel resident David Fitzgerald weighed in on the plan and said he's worried about its possible impact.

"If those people would lose their jobs, it would affect industries in the surrounding area -- the restaurants, the stores, other industries would slowly die off," said Fitzgerald.

Some on the Hill argue that helping the industry must consist not only of bailing out the manufacturers, but also must involve encouraging consumers to start buying vehicles again.

Maryland Senator Barbara Mikulski, D-Md. plans to offer legislation on Monday making the interest payment on new car loans tax deductible. "We've got to start massaging the American economy," she said. "One out of every 10 jobs in America is dependent on the American automobile industry."

Mark McGee, a mechanic in Maryland, says that with two kids headed to college, health insurance and a mortgage to worry about, he worries every day that dealership he works for will be forced out of business.

"I've worked here for 24 going on 25 years," McGee said. "For all the time that I've worked here things have been busy and things have been slow -- but never anything as long or as slow as this. "

Democratic leaders said they will unveil legislation on Monday to set aside money from the bailout package for the automobile industry and will begin hearings next week.

Rep. Barney Frank (D.-Ma.) said, "If the weakened condition of the economy causes a total collapse of the auto industry it would do more damage than not doing anything."

This may turn next week's lame duck session into one last showdown with President Bush (web|news|bio) . 

Democratic lawmakers may get more of what they want if they can wait until the new administration takes over in January, but some worry that car makers may not be able to hold out that long.