Already mentioned below, but some details I didn't know:
The Detroit Three in 2007 set up a mechanism to unload their union retiree health obligations by 2010 to trusts controlled by the United Auto Workers. But those trusts aren't up and running yet, and aren't fully funded. Government subsidies could be used to plug that funding gap, and allow the Detroit Three to put their cash into better cars. This is a proposal the UAW supports.-WSJ
I think the VEBAs might be more funded than this lets on, if the question is just the very small annual contributions left as a tail with the manufacturers. I'm not sure though. I'll look around for details.
