President Bush yesterday threatened to veto the housing bill that the Senate had just begun debating, claiming several provisions would subsidize irresponsible borrowing and lending.

In a statement, the administration singled out two provisions in the bill involving tax-exempt bonds that would be veto-worthy: one that would provide $3.9 billion in Community Development Block Grant funds to states so they could purchase foreclosed properties and another that would allow the federal home loan banks to guarantee all tax-exempt bonds.

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