DeLay is indicted, leaves post

WASHINGTON -- Representative Tom DeLay of Texas, the second-ranking Republican in the House and one of the most powerful legislators on Capitol Hill, stepped down from his post as majority leader yesterday, after a state grand jury indicted him on a charge of criminal conspiracy. The grand jurors alleged that he and two associates had funneled corporate campaign contributions through the Republican National Committee and a political action committee connected to DeLay.

DeLay's resignation as majority leader, called for under House rules, robs Republicans -- and the White House -- of one of their most skilled legislators. It also stains the party at a time when GOP priorities are already in danger of stalling in Congress.

DeLay, 58, has been under a cloud of suspicion for months for his prolific fund-raising activities, his strong-arm leadership style in the House, and his close ties to lobbyists.

But yesterday marked the first time that a criminal charge was filed against the legislator, who is nicknamed ''The Hammer."

DeLay lived up to his hard-nosed reputation yesterday, answering news of the indictment with characteristic bluster.

He denied any wrongdoing and accused the Travis County, Texas, prosecutor, Ronald Earle, a Democrat who brought the case, of being a ''rogue district attorney," an ''unabashed partisan zealot," and a ''partisan fanatic" with a history of filing charges against his political enemies.

''This is one of the weakest, most baseless indictments in American history," DeLay said in a six-minute statement delivered at his office in the Capitol. ''It's a sham, and Mr. Earle knows it.

''Let me be very, very clear: I have done nothing wrong. I have violated no law, no regulation, no rule of the House," DeLay continued, emphasizing that his resignation from leadership was temporary.

''My defense in this case will not be technical or legalistic," DeLay said. ''It will be categorical and absolute. I am innocent; Mr. Earle and his staff know it, and I will prove it."

The news of a felony charge against DeLay -- the highest-ranking member of congressional leadership ever to have been indicted while in office -- sent a jolt through Capitol Hill and fueled fierce speculation about who would take his place.

Within hours of the indictment, House Speaker J. Dennis Hastert arranged a power-sharing arrangement designed to show Republicans' support for DeLay. Roy Blunt of Missouri, the House Republican whip, will be the ''temporary" majority leader, and two other GOP lawmakers -- the deputy whip, Eric Cantor of Virginia, and the Rules Committee chairman, David Dreier of California -- will share DeLay's former responsibilities.

''I hope everybody understands that you are innocent until you're proven guilty, and he will fight this," said Hastert, who added that DeLay will be free to resume his post when his name is cleared. ''We give him our utmost support."

The indictment alleges that in 2002, DeLay and two former campaign aides, John Colyandro and James Ellis, had arranged for donors to sidestep a law against corporate contributions to state legislative candidates.

Corporate donations totaling $155,000 were funneled through the Republican National Committee by a political action committee that DeLay once helped lead, Texans for a Republican Majority, according to the indictment.

The money was then distributed to seven candidates for the Texas House of Representatives whom DeLay and his aides had selected, the indictment states; it is unclear exactly what role DeLay had played in the alleged scheme.

Though the indictment states that $190,000 was the amount that Texans for a Republican Majority sent to the Republican National Committee for distribution to the candidates, it documents $155,000 involved in the alleged conspiracy.

DeLay said the Democratic Party was behind the indictment. DeLay accused party leaders of pressuring Earle to charge him because of his role in solidifying GOP control of the Texas Legislature, and because he pushed through a redistricting plan that helped Republicans pick up five US House seats in Texas last year. A DeLay spokesman, Kevin Madden, noted that Earle's 1994 indictment and case against Republican Senator Kay Bailey Hutchison for allegedly misusing campaign finance funds was dismissed when it reached court.

Earle told reporters in Austin yesterday that he is confident about the case his office has built. ''Our job is to prosecute against abuses of power," he said.

DeLay will continue to serve as a House member representing his Houston-area district.

''He's still a member of Congress, and he's still going to help on the agenda," Madden said.

DeLay has developed a reputation as a skilled vote-counter and savvy politician who used his muscle to reward allies, punish opponents, and force through politically difficult initiatives.

Aspects of his bare-knuckles approach drew three rebukes from the House ethics committee last year.

Martin Frost, a former Democratic House member from Texas who lost his seat under the redistricting DeLay engineered last year, said the politician may have gone too far this time. The consequences, he said, could hamper the Republican agenda and could hurt Republicans in next year's congressional elections as well.

DeLay himself is expected to face a tough race for his 12th term against Nicholas Lampson, a Democrat who moved into DeLay's district to challenge him.

''DeLay has a long history of nuzzling up against the line of proper and improper," said Frost, who is now a fellow at Harvard's John F. Kennedy School of Government. ''He's always pushing the envelope, and in this instance, he may have pushed it over to the other side of the line."

Democrats jumped on the news of the indictment to accuse Republicans of fostering a climate of corruption, noting that the Senate majority leader, Bill Frist, is facing federal investigations for a sale of stock in a family medical corporation he executed in July.

''Today's indictment of Tom DeLay casts yet another shadow over the Republican control of the White House and Congress," said Representative John F. Tierney, a Salem Democrat.

The White House press secretary, Scott McClellan, said President Bush supports DeLay, a fellow Texan who has spearheaded much of the White House's agenda through Congress. ''Congressman DeLay is a good ally, a leader who we have worked closely with to get things done for the American people," McClellan said.

The loss of DeLay's leadership is a setback for Republicans who are struggling with internal party dissent over escalating budget deficits and their inability to gain traction for Social Security changes, Bush's biggest domestic priority. At a closed-door meeting late yesterday afternoon, DeLay asserted his innocence to his fellow Republicans.

Representative Peter King, Republican of New York, said the perceived partisan tinge to the indictment has united House Republicans behind DeLay.

''There was a real feeling in there that he was indicted because he was the majority leader," said King, the chairman of the House Homeland Security Committee.

Still, hints surfaced of a power struggle in the near future. Several House Republicans said the power-sharing arrangement is a short-term solution, but it won't be practical for the start of the new congressional session in January.

''If this issue is not resolved by January, we need to have I think a more permanent resolution," said Representative Dave Weldon, Republican of Florida. ''Once we get beyond January, we may need to actually have an election."

Rick Klein can be reached at rklein@globe.com.