Congress hands Bush string of setbacks

On Thursday, the White House put a brave face on its failure to secure long-term renewal by the Congress of a controversial package of anti-terrorism powers known as the Patriot Act.

"I consider it a victory for the American people," White House spokesman Scott McClellan told reporters after lawmakers chose not to extend the legislation indefinitely, as Bush had sought.

"These vital tools remain in place," said McClellan. "We're going to continue to work to get it reauthorised."

The House of Representatives voted on Thursday to renew the Patriot Act by one month, just one day after the Senate backed a six-month extension. The Senate approved the one-month extension late Thursday.

The White House had initially flatly refused to approve a short-term extension of the Patriot Act, portions of which were due to expire at the end of the year, but eventually bowed to the compromise.

Echoing recent statements by Bush, McClellan accused Democrats on Wednesday of trying to rack up points ahead of mid-term elections, in which Republicans could already be hindered by the corruption allegations faced by several party members, including Representative Tom DeLay of Texas.

In the economic realm, the administration narrowly avoided a rejection of its 40-billion-dollar budget cut plan on Wednesday.

By a 51-50 vote, senators adopted legislation to trim the federal deficit by nearly 40 billion, with Vice President Dick Cheney casting the tie-breaking vote in his role as president of the Senate.

Cheney had been called back to Washington early from a Middle East trip in the event he would be needed to cast such a vote.

The plan calls for cuts in health spending and student loans.

But another 453-billion-dollar bill to finance the US military was blocked by Democrats outraged by a provision -- which they say does not belong in a defence bill -- that would allow for oil drilling in Alaska's Arctic National Wildlife Refuge.

Proponents of the measure fell four votes shy of securing the 60 votes needed to proceed to a vote on the bill.

Bush had earlier urged the Senate to pass the legislation, which includes 50 billion dollars in emergency funding for US military operations in Afghanistan and Iraq.

"It's an obligation of every member of the United States Senate to provide necessary funding for our troops on the front lines so that we can fight and win the war on terror," Bush had said.