The Bush administration has reached a deal with House leaders on a $150 billion economic stimulus deal. Most of the money will go towards tax rebates. Individuals will receive $600, plus another $300 per child. Spending would also be boosted on credits for small business and government-backed home mortgages. At the White House, President Bush predicted a boost to the economy.

President Bush: “The incentives in this package will lead to higher consumer spending and increased business investment this year. Importantly, this package recognizes that lowering taxes is a powerful and efficient way to help consumers and businesses. I’ve always believed that allowing people to keep more of their own money and to use it as they see fit is the best way to help our economy grow.”

President Bush dropped demands to make his previous tax cuts permanent. But in an interview with USA Today, Bush said he still hopes to achieve that goal before he leaves office. Democrats meanwhile agreed to drop several key demands. These include extending unemployment and food stamp benefits, and more funding for low-income heating assistance and Medicaid. House Speaker Nancy Pelosi said she has reservations about the deal but promised to revisit the issue if the economy continues to slide.

House Speaker Nancy Pelosi: “I think this is a remarkable package because it is about putting money in the hands of America’s working families. It is there to strengthen the middle class, to create jobs and to turn this economy around, and that is what is important about it. It is timely, it is targeted and it is temporary, and it was done in record time since our conversation with the President and, again, in a bipartisan way.”

Congressional leaders say they hope to send a final bill to President Bush by February 15th.