Senators strike deal on immigration overhaul

WASHINGTON (Reuters) - Leading U.S. senators reached an agreement on Thursday on immigration reform that would strengthen U.S. borders and grant lawful status to millions of illegal immigrants, a move that could lead to a major legislative victory for President George W. Bush.

This sets the stage for what is expected to be a passionate Senate debate over the proposal, which would give an estimated 12 million illegal immigrants legal status, create a temporary worker program and set up a new merit-based system for future immigrants.

"The agreement we've just reached is the best possible chance we will have in years to secure our borders, bring millions of people out of the shadows and into the sunshine of America," said Sen. Edward Kennedy, a Massachusetts Democrat who helped lead the bipartisan talks that included Sen. Jon Kyl and administration officials.

Sen. Arlen Specter, a Pennsylvania Republican said: "No matter what we craft it's going to be attacked from both the right and the left."

"This is the best I think that can be done," he added.

Immigration is a complex, hot-button issue that has divided U.S. political parties in a way that has made it difficult to pass reform legislation. Hundreds of thousands of Latinos and other immigrants rallied as recently as May 1 to demand amnesty for illegal immigrants.

But Republicans oppose amnesty and blocked consideration of immigration legislation last year in the U.S. House of Representatives, saying it rewarded people who broke U.S. laws.

Republican Reps. Lamar Smith of Texas and Peter King of New York condemned the Senate compromise, issuing a statement calling it an amnesty "that treats illegal immigrants better than those who play by the rules and come in the right way."

The Senate compromise will put illegal immigrants on a path to citizenship after a probationary period and make them pay stiffer fines than proposed in last year's bill.

The agreement was reached after marathon talks. Senate Majority Leader Harry Reid, a Nevada Democrat, has set aside next week for the Senate to debate the legislation and several amendments are expected. The House is expected to take up its own version of immigration reform later this year.

DEMOCRATIC RESERVATIONS, BUSH SUPPORT

One Democratic negotiator said he could not support the compromise, citing the temporary worker program and fees immigrants would pay in the legalization program.

"I for one cannot settle for something that isn't responsible, or something that creates a bigger problem than already exists," said New Jersey Democrat Sen. Robert Menendez, who participated in the negotiations. "It doesn't have to be perfect, but it does have to be fair, humane, and practical."

Bush embraced the Senate breakthrough.

"I really am anxious to sign a comprehensive immigration bill as soon as we possibly can. Today we took a good step in that direction," he said.

Under the legislation, a new Z visa would be created for illegal immigrants who can prove they arrived in the United States before January 1, 2007. They would receive a probationary visa while background checks were conducted to ensure they have committed no crime. That would convert to a renewable four-year Z visa allowing employment in the United States. After that renewal, the worker could be eligible for a green card.

It would also create a temporary worker program that would allow workers from Mexico and other countries to work for two years and then require them to go home before they could return. At least 400,000 visas a year could be issued.

Temporary workers would be allowed three two-year work periods, but their time in the United States would help them earn points toward seeking permanent status. Kennedy said the worker program includes strong labor protections.

The legislation also includes tough border security and workplace enforcement measures that would have to take effect before the temporary worker program is allowed to go forward.

The proposal would limit family-based migration to immediate family members and establish a merit-based system by which future migrants could earn points for skills, education, understanding of English and family ties. Kennedy said the merit system would include low-skilled workers needed in the United States as well as highly skilled workers.

Some immigrant groups called the compromise a first step, but made clear they would like to see some changes.

"The package is generous for those who are already here and those who have waited patiently to come legally," said Frank Sharry, executive director of the pro-immigrant National Immigration Forum.

"How the deal treats immigrant families and workers coming in the future is where the biggest problem lies," he said.

(Additional reporting by Andy Sullivan in Washington and Tim Gaynor in Phoenix)