Senate leaders today are touting a bipartisan agreement on a bill designed to stem the groundswell of home foreclosures nationwide.

The bill had come under fire from Republicans, who blocked the measure with a legislative procedure in February, saying Democrats refused to allow amendments that would make the bill more palatable.

The bill would allow $10 billion in tax-exempt bonds that could be used to refinance subprime home loans or offer mortgages for first-time buyers. It also designates funding for housing counselors to connect with families at risk of losing their homes and designates $4 billion in community block grant funds for buying foreclosed properties that would then be rehabilitated and rented or resold.

"The time has come for us to legislate, not continue our bickering," said Senate Majority Leader Harry Reid, Nevada Democrat. "I am confident and very, very hopeful that this is going to be a break through, not only for this piece of legislation, but what can we can accomplish in this very difficult political year."

Reid said leaders had set an "arbitrary" deadline of noon tomorrow for Sens. Chris Dodd and Richard Shelby, Alabama Republican, Senate banking committee chairman and ranking member, to craft the compromise.

Neither Shelby nor Dodd would say whether the bill would include a provision that has drawn a veto threat from the White House that would allow bankruptcy judges to cut interest rates and reduce debt included in borrowers' mortgages.

"Senator Shelby and Senator Dodd are going to be the ones putting this package together," Reid said. "I think it's very clear we'll probably have a vote on the bankruptcy provision. But it's up to these two men, what they put in this bipartisan package."

"We're optimistic that they will be able to agree to a proposal," said Minority Leader Mitch McConnell, Kentucky Republican. "And as the majority has indicated, that will be the core underlying bill off of which additional amendments will be offered. This gives us a maximum chance of demonstrating to the American public that we can deal with important issues, on a bipartisan basis, quickly."

— Carrie Sheffield, Web editor, The Washington Times