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The White House "strongly opposes" a legislative attempt to force General Motors and Chrysler back to the negotiating table with dealers who lost their franchises as the auto makers went through bankruptcy.

In a statement of administration policy, the White House said the provision, tucked into the House's fiscal 2010 spending bill for the Treasury Department and other agencies, could derail the companies' restructuring.

"The decision to invest taxpayer dollars into these companies required all stakeholders to make difficult sacrifices, and it would set a dangerous precedent, potentially raising legal concerns, to intervene into a closed Judicial bankruptcy proceeding on behalf of one particular group at this point," the Office of Management and Budget said.

The spending bill is one of two measures designed to help the axed dealers. The prospects for both are cloudy. Though at least 241 House members have co-sponsored a bill restoring dealers' rights under state franchise laws, Senate Majority Leader Harry Reid, D-Nev., said Tuesday that the issue isn't high on the Senate's agenda.

The White House said it shares lawmakers' concerns about the dealers, but added that it has taken steps to provide support, including a Small Business Administration program to provide guaranteed floor plan financing loans.

"The decision by Chrysler and GM to rationalize their dealer networks was a critical part of their overall restructuring to achieve long-term viability in order to save jobs in the long run, and to improve the prospects for the companies' repayment of the substantial taxpayer investments," the White House said.

"Without the significant steps these automakers have taken to revamp their operations, the companies would have failed - imperiling every GM and Chrysler dealer in the country."

-By Henry J. Pulizzi, Dow Jones Newswires; 202-862-9256; henry.pulizzi@dowjones.com

(Corey Boles contributed to this report.)