To widen the availability of mortgages across the country, it also provides a one-year boost to the cap on loans that Fannie Mae and Freddie Mac can buy, from $417,000 up to $729,750 in high-cost markets.
Both parties made concessions. Republicans backed away from seeking to make Bush's tax cuts permanent as part of the package and agreed to a Democratic demand to give rebates to workers who earn too little to pay income taxes. Democrats gave up calls to extend unemployment benefits and spend more on food stamps.
House Minority Leader John A. Boehner of Ohio, a key negotiator, expressed concern yesterday that the carefully balanced compromise could unravel if senators tinker with it too much. "It would be irresponsible for Senate Democrats to load this bill up with pork and other spending," he said.
Bush, speaking at a House GOP retreat in West Virginia, called the package "big enough" to help the economy and urged Congress to pass it as soon as possible "to get money in the hands of the people who are going to help this economy stay strong."
"I strongly believe it would be a mistake to delay or derail this bill," he said.
Senators from both parties say they are just as eager as the president and House leaders to reach a deal. But senators have their own ideas of what should be in the package, including increased spending on unemployment benefits, food stamps, energy assistance to low-income families and aid to states for infrastructure projects.
Democratic Sen. Dianne Feinstein of California said that one of her concerns about the compromise reached between the House and the White House was that "rebates don't get to the people until May or June."
"So the Senate should consider extending unemployment insurance and increasing food stamps to get help quickly to those who need it most," she said.
A number of senators called for doing more to help seniors, including those who live primarily on Social Security.
Sen. Barbara Boxer, also a California Democrat, in a letter to Senate leaders yesterday urged aid for seniors who do not pay taxes. They must have at least $3,000 in earned income to be eligible for a rebate. "California is home to 3.9 million people age 65 and older, many of whom live on fixed incomes and are particularly hard hit by rising prices," she said.
AARP spokesman Jim Dau said the organization believes that non-taxed seniors should be part of any stimulus package - even if that means spending more on food stamps or home heating assistance
Boxer listed other ideas for economic stimulus, including providing $10 billion to help communities combat the rising tide of vacant houses caused by foreclosures and providing tax breaks to promote "green jobs."
Richard Simon writes for the Los Angeles Times. The Associated Press contributed to this article.
