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."