U.S. Rep. Paul Ryan, R-Wis., said Wednesday he would favor assisting the ailing American automakers immediately, using the $25 billion Congress set aside previously for development of more fuel-efficient vehicles.

But Ryan’s comments came as it seemed increasingly unlikely that Congress will act on an auto industry rescue package before it adjourns for the year.

Ryan, in an interview, said the situation now sits largely in the hands of Senate Majority Leader Harry Reid, D-Nev., who must consider a Republican-backed plan to use the energy money.

Like the Bush administration and other Republican lawmakers, Ryan opposes using a portion of the $700 billion Wall Street bailout fund to aid the Big Three auto manufacturers, fearing it would set a precedent for other industries to rush to the government’s purse strings.

Ryan said he would use the already-allocated energy efficiency money now, and deal with the issue of if or how to replace it later.

Congressional Democrats, including House Speaker Nancy Pelosi of California, oppose that plan, deeming it environmentally shortsighted. Sen. Russ Feingold, D-Wis., has endorsed drawing from the Wall Street bailout account, while Sen. Herb Kohl, D-Wis., has only said any assistance should come in the form of a loan.

“Cut the red tape, free up the strings and convert that to an immediate loan program,” Ryan said of the energy money. “It’s already been authorized by Congress; it’s already been implemented.”

Ryan said he has discussed the situation with countless auto industry representatives, who want immediate relief and are not concerned about its origins.

Count Kenosha-area auto dealer Andy Palmen among them.

Palmen spent Tuesday and Wednesday in Washington, lobbying members of Congress and their staffs with about 30 fellow members of a national Chrysler dealers’ group.

Contacted Wednesday afternoon, Palmen said he was not yet sure whether the visit will produce results, but he was trying to remain optimistic.

He said the consequences of auto manufacturer bankruptcies would be dire.

“These companies have, I think, very conservatively asked for $25 billion in loan grants that, if we don’t do it, they will fail, and they will not recover from bankruptcy,” Palmen said. “You will not buy a car from General Motors if they’re in bankruptcy; you just won’t. It’s not like the airlines.”

Palmen said he was disappointed that dealer representatives were excluded from Tuesday’s Senate hearings on the situation.

He noted that unemployment in the auto industry affects not just the manufacturers themselves, but also dealerships and suppliers.

“Inaction is completely not an option,” Palmen said, predicting that unemployment would go up at least 10 percent, instantly, if the auto makers hit a wall.

Ryan said House Majority Leader Steny Hoyer, D-Md., has said the House will not act on a package unless the Senate approves something first.

Reid told the Senate Wednesday he still hoped lawmakers could agree on a deal within a couple of days, but he said the Treasury secretary could address the matter immediately by allocating some of the Wall Street bailout funds. White House press secretary Dana Perino countered that it was up to Congress to act.

Ryan said the White House would sign legislation that uses the energy money — if Reid allows it to pass Congress.

“It comes down to whether the Democratic majority chooses between the unionists and the environmental groups,” Ryan said. “And I’d side with the union groups, if I were them.”

— The Associated Press contributed to this report.