Jan. 24 (Bloomberg) -- The Bush administration and House lawmakers announced agreement on an economic stimulus package that would distribute rebate checks to 117 million families and give businesses incentives to invest in equipment.

``The country needs this boost to the economy now,'' President George W. Bush said in a statement at the White House. The agreement will result in ``higher consumer spending and increased business investment this year,'' he said.

Lawmakers are racing to enact a stimulus measure to try to counter escalating risks of a recession. Bush said the U.S. economy faces short-term disruptions in the housing market and rising energy prices.

House Speaker Nancy Pelosi, at a press conference with House Republican Leader John Boehner and Treasury Secretary Henry Paulson at the Capitol, said the stimulus package ``will put money in the hands of hardworking Americans.''

Under the plan, individuals would receive rebates of up to $600 and couples could receive $1,200, plus $300 per child, Paulson said. Rebates would be phased out for individuals earning more than $75,000 and couples earning more than $150,000. Individuals must earn at least $3,000 to get a $300 rebate.

Paulson said the rebate checks may be mailed 60 days after the proposal becomes law, possibly in May.

``This is on a fast track,'' Paulson said.

Housing Foreclosures

The accord also seeks to address the growing number of housing foreclosures by including a provision allowing Fannie Mae and Freddie Mac, the largest U.S. mortgage finance companies, to temporarily buy mortgages of up to $625,000, exceeding a $417,000 federal limit.

By buying mortgages above $417,000, Fannie Mae and Freddie Mac will increase financing available to homebuyers seeking mortgages for purchases of higher-value homes.

Some lawmakers protested that the measure doesn't include more spending Democrats sought to extend unemployment benefits or provide additional food-stamp aid.

Representative Charles Rangel, a New York Democrat who heads the tax-writing House Ways and Means Committee, said he did ``not understand, and cannot accept'' the dropping of an extension of unemployment benefits from the final stimulus package.

``These are the families we need to protect in times of recession, as they struggle to put food on their tables, clothes on their backs and keep a roof over their heads,'' Rangel said in a statement. Rangel added, however, that he would not block the legislation from ``moving forward.''

Business Incentives

Two business incentives were included in the measure. One would allow large businesses to take a 50 percent bonus deduction on new equipment. Small businesses would be allowed to deduct as much as $250,000 in equipment purchases, up from $112,000 now.

Senate Democratic leaders, while praising the House agreement today, said the measure will be amended in that chamber.

Senate Finance Committee Chairman Max Baucus, a Montana Democrat, said today that his panel will consider an economic stimulus package next week. He warned that it will likely be different from what House leaders decide to include.

``The Senate will want to speak as well,'' he said.

Baucus said he will push to include an extension of unemployment benefits, and Oregon Democratic Senator Ron Wyden said he will seek funding for infrastructure projects.

To contact the reporter on this story: Roger Runningen in Washington at rrunningen@bloomberg.net.

Last Updated: January 24, 2008 15:14 EST