Continued: Mortgage rescue plan inches along

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A long-stalled mortgage rescue plan inched toward Senate passage Thursday, only to be sent back to the House for more votes and intense negotiations to resolve disputes that are delaying help for hundreds of thousands of homeowners.

The Senate cleared away the last procedural hurdle hindering the measure 84-12. The broad endorsement reflected widespread interest by lawmakers in both parties in sending election-year help to struggling homeowners.

Beyond the Senate, the measure is far from complete, with House leaders planning to rewrite key portions and the White House threatening a veto.

The centerpiece of the plan would let the Federal Housing Administration back up to $300 billion in new loans to provide struggling homeowners with more affordable, fixed-rate mortgages.

MEDICARE FACES VETO

President Bush intends to block a bill protecting doctors from a cut in their Medicare pay, even though Congress seemingly has enough votes to override his veto.

To pay for rescinding the 10.6 percent rate cut, lawmakers would reduce spending on private health insurers serving about 9 million elderly and disabled patients through Medicare Advantage.

That reduced spending -- about $13.5 billion over five years -- would slow enrollment growth. The White House predicts that about 2 million fewer people would take part in the program. That would leave enrollment at about 12 million in five years, versus the 14.3 million now anticipated.

"Taking choices away from seniors in order to pay for the reimbursements for physicians is the wrong way to pass this bill and to extend the reimbursements that we want to see physicians get," said White House spokesman Tony Fratto.

ETC.

A bipartisan group of senators from cold-weather states, including Minnesotans Amy Klobuchar and Norm Coleman, criticized plans to cut the federal program helping low-income families make their homes more energy-efficient. While winter heating costs have soared, support for the federal assistance program has dramatically declined. ... Bush signed a bill that overhauls rules about government eavesdropping and grants immunity to telecommunications companies that helped the U.S. spy on Americans in suspected terrorism cases. He called it "landmark legislation that is vital to the security of our people." ... The Senate handily confirmed Gen. David Petraeus as the top commander in the Middle East and Lt. Gen. Raymond Odierno to replace Petraeus as the chief military officer in Iraq. The Senate voted 95-2 in favor of Petraeus, with Democrats Robert Byrd and Tom Harkin opposing. Harkin cast the lone vote opposing Odierno, who was confirmed 96-1.

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