Portman to step down as White House budget chief

By Caren Bohan and Jeremy Pelofsky

WASHINGTON (Reuters) - In the latest of a string of departures of White House aides, U.S. budget director Rob Portman announced on Tuesday he is stepping down after just over a year on the job.

President George W. Bush, who has a year and a half left in office and has signaled he plans to take a tough line in budget negotiations with the Democratic Congress, wasted no time in picking former Iowa Rep. Jim Nussle as Portman's replacement.

"There's no finer man in public service than Rob Portman, he's been a trusted adviser," Bush told reporters. "But fortunately we've found a good man to succeed him ... As a leader in Congress, Jim's showed he can work with members of both sides of the aisle to get positive things done for America."

Nussle, a Republican, is a former chairman of the House of Representatives Budget Committee. He ran for governor in 2006 but lost to Democrat Chet Culver. Nussle most recently has been advising former New York Mayor Rudy Giuliani in his presidential campaign.

Nussle's nomination will require Senate confirmation, which would come amid a fierce debate in Congress over bills to fund the federal budget.

Portman, who is also a former congressman and has been commuting every weekend from Washington to his home in Ohio, cited family reasons for his decision to leave after years in public life. He and his wife have three teenage children.

Portman hinted at an interest in getting back into the political fray at a later time, though he said he had not made any immediate career plans.

Asked by reporters if he might consider a run for Ohio governor in a few years, he said, "That's a possibility."

SEVERAL CHANGES

Portman's departure is among several changes in the White House staff recently. White House counselor Dan Bartlett, a longtime member of Bush's inner circle, plans to leave the administration within the next few weeks and will be replaced by former Republican party chief Ed Gillespie.

White House political director Sara Taylor and deputy national security adviser J.D. Crouch have also left.

The budget office is changing hands as Bush and the Democratic Congress kick off a new fight over domestic spending, after tangling for months over Iraq war funding.

Bush, criticized by some conservatives for failing to hold the line on spending while Republicans controlled Congress, has threatened to veto spending bills if they exceed limits he sought.

"I won't let you down," Nussle promised Bush in a White House ceremony announcing his appointment.

Portman left the House in 2005 to join the Bush administration as trade representative. When Bush tapped Joshua Bolten to become his chief of staff a little more than a year ago, Portman succeeded Bolten as the budget director.