Bush names new budget director

By JIM RUTENBERG
and EDMUND L. ANDREWS
The New York Times

WASHINGTON - President Bush continued the gradual overhaul of his staff on Tuesday, turning to another trusted insider, Rob Portman, the U.S. trade representative, to be his budget director.

In selecting Portman, 50, to oversee the Office of Management and Budget at a time of large deficits, Bush chose a pragmatist who has worked across party lines in the past. Portman served in the House from 1993 until last year, and with the appointment, Bush was responding in part to pressure from within his party to build better ties to Capitol Hill.

As a Republican representative from Ohio, Portman was a member of the budget and ways and means committees in the House, and often acted as a liaison between the White House and congressional Republicans. He left Congress to become the administration's top trade negotiator. In his new job he will replace Joshua B. Bolten, who last week took over as Bush's chief of staff.

Officials said that among Portman's top priorities would be dealing with a rapid rise in government spending that has created unhappiness among many conservatives and meeting Bush's goal of cutting the federal budget deficit in half over five years.

Former colleagues in both parties said he was viewed as a practical politician first and a fiscal conservative second. There is little indication that Portman will bring with him any substantial change in the administration's budget policy, though when he was in the House, he occasionally bucked the White House.

It was unclear Tuesday how Portman's promotion would be viewed by those urging the president to bring in new blood, fresh ideas and a different viewpoint to a White House long controlled by a circle of close Bush loyalists.

Portman is a longtime associate of the president's family. He served in Bush's father's administration, first as an associate counsel and later as the head of the White House office of legislative affairs. In the past two elections, Portman was Vice President Dick Cheney's main debate sparring partner, playing the role of the Democratic vice presidential nominee in 2000 and 2004 - Sen. Joseph I. Lieberman of Connecticut and Sen. John Edwards of North Carolina.

Portman's elevation was the first personnel move under Bolten's watch. Bolten said on Monday that he intended to move quickly to fill voids and "refresh and re-energize" the White House staff. White House officials described Portman's selection as the first of several personnel changes meant to help the White House recover from a series of missteps, bad news from Iraq and declining poll numbers.

Portman is to be succeeded by his deputy at the trade representative's office, Susan Schwab, who had also worked for Bush's father's administration, in the Commerce Department, focusing on trade issues. Both choices must be voted on by the Senate. The White House also announced Tuesday that James Towey, the head of the president's office of Faith Based and Community Initiatives, was resigning to become president of St. Vincent College in Latrobe, Pa. But officials indicated the move was in the works before Bolten began working on his overhaul of the White House staff.

Speaking in the Rose Garden Tuesday, Bush said Portman's job would entail meeting the president's goal of cutting the deficit in half by 2009 from its 2004 level and making permanent the tax cuts he pushed through Congress starting in 2001.

After presiding over a rapid increase in government spending, driven largely but not completely by military and national security programs, Bush has been emphasizing spending restraint in many nonmilitary programs, responding in part to pressure from conservatives.

"He will consult often and work closely with legislators on Capitol Hill," Bush said of Portman. "He will be a powerful voice for pro-growth policies and spending restraint." White House officials said the choice of Portman was made in consultation with congressional Republicans.

Sen. Harry Reid of Nevada, the Democratic minority leader, issued a critical statement about the appointment. But some Democrats complimented Portman, including Rep. Benjamin L. Cardin, D-Md., who worked with him on pension legislation and called him "intellectually honest."

Portman has shown an independent streak. In Congress he publicly opposed and quietly blocked a Bush proposal to create a new class of super-sized, tax-advantaged, individual retirement accounts.

Friends said Portman, who commutes between Washington and Cincinnati, is the sort who remains calm in crisis. Portman is known for his hobby as a kayaker: He kept a kayak in his office on Capitol Hill and would practice paddling in the House pool.

He has enjoyed a few victories as trade representative, like persuading Congress to approve the Central American Free Trade Agreement and completing deals with Bahrain, Peru, Oman and Colombia. But he has made little progress in negotiating other broad trade agreements.

By elevating Schwab, a comparatively low-profile official, to replace Portman, White House officials appear to be calculating that international trade negotiations will not be a major priority this year.

Now speculation in Washington is turning to the administration's next moves.

Bolten is widely expected to bring into the White House another seasoned hand with experience dealing with Congress, like Bill Paxon, the former Republican congressman from New York. And Republicans with close ties to the White House said they also expected him to perhaps bring in help on the communications side, possibly including a replacement for Scott McClellan, the White House press secretary. Republicans have been speculating about a lengthy list of potential successors, including Rob Nichols, the former Treasury spokesman, and Victoria Clarke, the former Pentagon spokeswoman.