WASHINGTON — U.S. Senate Banking Committee leaders moved closer to passing housing legislation that would stem foreclosures by insuring as much as $300 billion in mortgages and create a new regulator for Fannie Mae and Freddie Mac.

Senators Christopher Dodd, the panel’s chairman, and Richard Shelby, its top Republican, reached a deal to pay for the insurance program with proceeds from an affordable housing fund financed by Fannie Mae and Freddie Mac, Mr. Dodd said yesterday in a conference call. The government-sponsored companies are the biggest sources of American mortgage funding.

“The primary goal is to keep people in their homes, but also to help establish a floor and a bottom” to the housing slump, Mr. Dodd, a Connecticut Democrat, told reporters during the call.

The proposed legislation would a create a Federal Housing Administration program to insure up to $300 billion in refinanced mortgages for struggling borrowers after loan holders reduce principal. The Banking Committee is scheduled to debate and vote on the plan today.

Lawmakers in Congress have been at odds over whether to use government funds to stem foreclosures amid the worst housing slump in a quarter century. Republicans oppose using taxpayer funds, saying they would flow to rescue speculators and irresponsible lenders. Democrats say government spending is needed to stabilize neighborhoods and help struggling borrowers.

If approved by the full Senate, the package would be combined with a bill passed this month by the U.S. House of Representatives over a White House veto threat. Congressional analysts had estimated the House bill would cost taxpayers $1.7 billion.

“It’s a pretty creative solution to the administration’s objections to using taxpayer money to what they perceive to be a bailout,” a former Federal Reserve attorney and a partner at Washington law firm Schwartz & Ballen LLP, Gilbert Schwartz, said. “If you use Fannie and Freddie’s money, that resolves that issue and it seems to me that the administration should not object to it.”

Mr. Shelby, an Alabama Republican, said he thinks President Bush will support the Senate measure.

“This is a victory for the taxpayers,” Mr. Shelby said yesterday in an interview with CNBC. “I think it’s a win-win, a double win for all of us.”

Mr. Dodd said he planned to get it to the president’s desk by July 4, adding that he didn’t know whether Mr. Bush would support it.

“We appreciate and encourage the efforts to create a strong, independent regulator for the GSEs,” a spokesman for the White House, Tony Fratto, said yesterday.

“We look forward to seeing the details of the bill as it goes through Senate markup — especially provisions to expand programs of the Federal Housing Administration,” he said.

A Fannie Mae spokesman, Brian Faith, didn’t immediately return a call for comment. A Freddie Mac spokeswoman, Sharon McHale, declined to comment.