Democrats expand majorities in Congress

By Thomas Ferraro and Richard Cowan

WASHINGTON (Reuters) - By expanding their control of the U.S. Congress, Democrats are positioned to quickly act on much of U.S. President-elect Barack Obama's ambitious agenda when lawmakers reconvene in January.

But triumphant Democrats in Tuesday's election fell a few Senate seats short of a lofty goal: obtaining for the first time in three decades the 60 needed in the 100-member chamber to clear Republican procedural hurdles.

Still, Democrats expressed hope that they will be able to win over a few moderate Republicans to pass major measures, including ones to begin to withdraw U.S. troops from Iraq and end the worst economic crisis since The Great Depression.

With a number of races yet to be decided as of early on Wednesday, Democrats, who now control the House of Representatives, 235-199 with one vacancy, were projected to pickup about 20 seats, somewhat fewer than the number earlier predicted by private analysts.

Senate Democrats had gained at least five to reach 56. They were hopeful of gaining at least a few more, including the one held by Republican Sen. Ted Stevens of Alaska, who ran for re-election despite being convicted last month of corruption.

"Tonight, the American people have called for a new direction," said House Speaker Nancy Pelosi, a California Democrat.

"A very important part of that change will be the bipartisanship, the civility in which we engage in our dialogue and the fiscal responsibility that we bring to our legislation," Pelosi said.

Democrats have no choice but to show fiscal restraint.

Because of a record federal deficit, the newly enacted $700 billion Wall Street bailout and the threat of a deep recession, Democrats will have to limit or postpone any big new spending programs, such as ones to expand health care, upgrade education and advance renewable energy technology.

House Republican Leader John Boehner of Ohio congratulated Obama, but made it clear to the victor that he faced tough times on Capitol Hill.

Boehner charged that Obama "has sketched a troubling policy roadmap that will be run through a Congress that was purchased by powerful liberal special interests."

Riding an anti-Republican wave generated largely by the unpopularity of President George W. Bush, and a crush of enthusiasm created by the charismatic Obama, Democrats had one of their best elections in more than a decade.

In fact, it was the first time since 1992 that Democrats won both chambers of Congress as well as the White House when Bill Clinton led their ticket.

Democrats won the Senate and House two years ago, but Republicans routinely blocked legislation on matters from withdrawing U.S. troops from Iraq and additional economic stimulus to health care and energy.

"They (Republicans) are going to have to be more cooperative. They have to realize their old way of just blocking everything just doesn't work for them," a Democratic leadership aide said.