The White House is pressing the US senate to approve quickly an economic stimulus package agreed by Democratic and Republican leaders in the House of Representatives that would pump about $150 billion into the economy. Denis Staunton, Washington Correspondent, reports.

House Speaker Nancy Pelosi, Republican leader John Boehner and Treasury Secretary Henry Paulson agreed after late-night negotiations to give tax rebates to 117 million families and $50 billion in incentives for businesses to invest in new plants and equipment in the hope of staving off recession.

"We believe this is a very good, bipartisan compromise, and it would be unfortunate if the Senate did anything to slow it down or blow it up," White House press secretary Dana Perino said yesterday.

"The package is effective, it's balanced; the president says it's the right size and it will give the economy the boost that it needs, but only if it arrives on time. And the longer it takes to get the money out to people, then the less impact it will have."

Under the proposed deal, individual taxpayers would get up to $600 in rebates, working couples $1,200 and those with children an additional $300 per child.

In a concession to Democrats, 35 million families who make at least $3,000 but do not pay income tax would get $300 each.

The House of Representatives will vote on the bill next week and, with bipartisan support, it is almost certain to be approved and sent on to the Senate.

Senate Democrats are unhappy, however, that the package does not include an extension of unemployment benefit beyond six months or increases in home heating subsidies and food stamps for the less well-off.

The White House and Republican leaders have warned that any attempt to tinker with the package could cause the entire deal to fall apart.

"It would be irresponsible for Senate Democrats to load this bill up with pork and other spending. Families and small businesses need help now, and this agreement shouldn't be derailed because of partisan politics," Mr Boehner said.

Mr Bush welcomed Thursday's agreement as a rare meeting of minds between Democrats and Republicans, who agree on the need to inject funds into the US economy in order to fight the impact of a weakening housing market and a painful global credit crunch.

"This agreement was the result of intensive discussions and many phone calls, late-night meetings and the kind of co-operation that some predicted was not possible here in Washington," Mr Bush said.