UPDATE 1-Democrats in Congress mull new US economic stimulus

(adds Rep. Barney Frank)

By Richard Cowan

WASHINGTON, July 1 (Reuters) - Democrats in the U.S. Congress are gearing up to pass a second election-year economic stimulus package, but unlike the $152 billion measure that passed in February, they are not counting on getting the support of President George W. Bush.

Leaders in the House of Representatives and Senate are discussing with key committee chairmen the shape of another emergency spending bill that would again aim to spur the economy and help those hurt by the economic slowdown, several congressional aides said on Tuesday.

This comes on the heels of this week's enactment of increased jobless benefits, another Democratic priority.

Infrastructure projects -- road and bridge building and other government-funded construction -- top the list, according to those aides. At least $8 billion in funds could be sought just for these projects, although aides said there were no firm cost estimates yet for any portion of the legislation.

Rep. Barney Frank, the Massachusetts Democrat who chairs the House Financial Services Committee, is hoping such a bill also would help deal with some problems related to the unfolding home mortgage crisis, especially if Bush vetoes a broader bill moving through Congress.

"The second stimulus package should include money to the states and cities to buy foreclosed properties," Frank told Reuters in a telephone interview.

If a second economic stimulus bill advances and it follows the formula of emergency measures enacted this year, the new stimulus would add to already steep deficits that worry fiscal conservatives.