Democrats To Call for Housing Grants

WASHINGTON — House Democrats, moving to accomplish a top priority in exchange for quick approval of the Bush administration's urgent rescue plan for Fannie Mae and Freddie Mac, intend to tie it to $3.9 billion in grants for neighborhoods hit hardest by foreclosures. President Bush, who yesterday called for swift enactment of the rescue for the troubled government-sponsored mortgage companies as part of a broad housing package, has threatened to veto the bill if it includes the neighborhood grant money. But Democrats, who saw their negotiating hand strengthened when the administration came to Congress this week, are gambling that Mr. Bush will back down on his threat. The administration's proposal to give the Treasury Department the power to extend an unlimited line of credit to Fannie Mae and Freddie Mac and buy their stock if necessary is "a whole new, big thing" to add to the housing measure, Rep. Barney Frank said.