Jan. 24 (Bloomberg) -- The Bush administration and House congressional leaders are nearing a tentative agreement on legislation designed to stimulate the slowing U.S. economy, lawmakers said.

``We're hopeful,'' House Republican leader John Boehner said last night. He said there may be an announcement as soon as today. The discussions involve an economic stimulus plan of as much as $150 billion in corporate investment incentives and personal tax rebates.

Boehner, House Speaker Nancy Pelosi and Treasury Secretary Henry Paulson met three times for a total of five hours yesterday in the U.S. Capitol to iron out details.

An agreement was near after Pelosi dropped her bid for additional unemployment benefits and food stamp funding in exchange for a rebate providing all income-earners at least $300, said two congressional aides familiar with the talks. Boehner had opposed giving a rebate to the poorest workers who don't pay any income taxes.

The proposal under discussion would give larger rebates to those who pay income taxes, and families with children would get an extra $300 per child, subject to a cap that is still being discussed, the aide said.

Fear of Recession

Lawmakers are racing to enact a stimulus measure to avoid a looming recession. President George W. Bush said last week that a stimulus plan is needed because of a ``risk of a downturn.'' The Federal Reserve this week cut its benchmark overnight lending rate by three-quarters of a point to 3.5 percent.

Any deal reached by House leaders and the administration must still be reviewed by leaders of both parties in the Senate. Pelosi intends to discuss details of the proposal with House Democrats before signing off, said her spokesman, Brendan Daly, who did not discuss the plan under discussion.

House Majority Leader Steny Hoyer said yesterday that Democratic leaders would likely bypass congressional committees and send the measure directly to the House floor to speed passage. Congressional leaders said they want to get an economic plan to Bush's desk within three weeks.

The proposals under consideration -- tax rebates, incentives for business investment and increases in unemployment insurance - - won't have the desired effect if they are delayed, economists said. And if lawmakers load the package with pet proposals or make it too much more expensive than the $150 billion figure under discussion, it might backfire by boosting inflation or the deficit, they said.

``The timing of fiscal stimulus is critical,'' Peter Orszag, head of the Congressional Budget Office, told the Senate Finance Committee this week. ``If the policies do not generate additional spending when the economy is in a phase of very slow growth or recession, they will provide little help to the economy when it is needed.''

To contact the reporter on this story: Laura Litvan in Washington at llitvan@bloomberg.net

Last Updated: January 24, 2008 08:48 EST