Nation briefs 10/1/05

GOP may lose cash flow from DeLay indictment

WASHINGTON -- Tom DeLay has persuaded donors to give more than $35 million to his Republican fund-raising operations, a steady cash flow over 10 years that the GOP fears will slow with DeLay's criminal indictment. Troubling to the Republicans is that the indictment, combined with President Bush's declining approval ratings, rising gas prices and other scandals, could convince big-money donors that the Democrats have a chance of winning next year, depressing contributions to the GOP and increasing the numbers for the Democrats.

School bus overturns on NYC expressway

NEW YORK -- A school bus overturned on a Bronx expressway Friday, injuring dozens of children and adults returning from a teacher's funeral, authorities said. The bus flipped on its side when another vehicle slammed into the back end of the bus around 11:15 a.m., police said. The bus was carrying seventh-graders, parents and faculty from St. Joseph's Elementary School. The Archdiocese of New York said 42 students were injured, along with 10 faculty members and parents. Both drivers also were injured.

Economy wobbling from Katrina's blows

WASHINGTON -- Hurricane Katrina has knocked the economy for a loop. New figures on Friday showed the storm caused incomes to fall in August, reflecting $100 billion in losses by people who didn't have adequate insurance to cover damaged property. Soaring gasoline prices caused consumers to reduce spending by the largest amount since the September 2001 terrorist attacks.

U.S. troop cuts in doubt over Iraqi instability

WASHINGTON -- Speaking at a Pentagon news conference Friday, the top U.S. commander in Iraq, Gen. George Casey, said his prediction in July that "fairly substantial" troop withdrawals could begin next spring was based on continued satisfactory progress on the political and security fronts. But violence in Iraq has increased as Sunni insurgents try to undermine voting on the proposed constitution.

-- From wire reports