The Bush administration will expand a program designed to help struggling homeowners refinance their mortgages into government-backed loans, but congressional Democrats consider the plan inadequate.

The proposal outlined at a House Financial Services Committee hearing Wednesday is similar in concept, but would not go as far, as draft legislation proposed by Chairman Barney Frank , D-Mass., and a similar bill under development in the Senate.

All of the proposals would allow the Federal Housing Administration to insure refinanced mortgages if lenders agree to cut the outstanding principal on the loan to reflect the reduced value of a property, though there are some distinctions in the details.

Both chambers are also considering additional steps to address the housing crisis, including legislation now on the Senate floor that would offer tax breaks to beleaguered home builders and other business and tax credits to individuals who buys homes now in or near foreclosure.

Frank said there is a “substantial amount of agreement now” on the need to expand FHA’s role in addressing the ongoing housing and mortgage crisis.

“Those that think we should do nothing that could theoretically expose taxpayers to more risk, they will have to deal with me and the Bush administration together, and we will work things out,” he said.

The administration plan would expand eligibility standards under the existing FHASecure program and encourage lenders to write down the value of loans to the point that they meet the new criteria.

The administration proposal would allow the program to help some 500,000 homeowners. Frank said his plan would likely help 1 million to 2 million homeowners.

Brian D. Montgomery, the assistant secretary for Housing and Federal Housing Commissioner, told lawmakers the agency carefully considered the reach of the proposal. “We believe it is appropriately tailored to reach homeowners who have demonstrated their commitment to making on-time payments, even during times of financial stress,” Montgomery said.