WASHINGTON - U.S. President George Bush has dropped his opposition to a major housing rescue bill that would provide government support to help the struggling industry.

White House spokeswoman Dana Perino Wednesday said the administration still has concerns about some aspects of the bill, but does not believe there is time for a veto fight with Congress.

The legislation is scheduled to come to a vote in the U.S. House of Representatives Wednesday.

President Bush had objected to a provision giving nearly $4 billion to communities to buy and repair foreclosed property.

Treasury Secretary Henry Paulson called the provision “wasteful,” but said he encouraged the president to support the bill.

Paulson emphasized the importance of a separate provision in the measure that grants the Treasury Department authority to expand government support for two troubled mortgage lenders, Fannie Mae and Freddie Mac.

The two large lending institutions have lost billions of dollars from a wave of recent mortgage defaults.

The rescue plan would allow the Treasury to extend additional credit to Fannie Mae and Freddie Mac.  It also would allow the government to buy the companies’ stock if necessary.

Congressional budget analysts say the bill could cost taxpayers about $25 billion.  But they say there is a better-than 50 percent chance the government will not have to use its emergency authority.

Source:  VOA News