WASHINGTON -- Moderate Republicans yesterday handed their leaders two embarrassing setbacks on Capitol Hill, stopping a $50 billion package of controversial budget cuts in the House and an extension of the president's tax cuts in the Senate.

The day's events illustrated the power of the small but stubborn group of Republican moderates on both sides of the Capitol who have balked at the efforts of GOP leaders to scale back funding for social programs such as Medicaid, Medicare and food stamps while advancing a $70 billion extension of President Bush's tax breaks, which primarily benefit higher earners.

House leaders made a huge concession to those moderates late Wednesday night when they agreed to remove -- at least for now -- a provision to allow drilling in the Arctic National Wildlife Refuge (ANWR). Twenty-six Republicans pressured their leaders to remove the provision in a letter this week, and Majority Leader Roy Blunt said giving in to those concerns brought in the support of an additional 12 to 20 Republicans for the budget cuts.

"The moderate Republicans have slowed this process down and we stuck together," said U.S. Rep. Wayne Gilchrest, R-Md. one of the congressman who demanded the removal of ANWR from the House legislation. "I don't think this is an embarrassment to the leadership, the president or our party whatsoever, I think it shows the public that there's a strong feeling in a centrist group about conservation and fiscal responsibility and I think this enhances the GOP's standing," Mr. Gilchrest said.

Yet even with the concession on arctic drilling, the leadership did not have enough support to pass the budget bill and decided not to bring it to a vote before members headed home for the Veterans Day holiday.

"It's just not ripe yet; we ran out of time," said former Majority Leader Tom DeLay, R-Texas, who was helping marshal votes and advise leaders even though he stepped down from his leadership post after being indicted over accusations of money laundering and conspiracy in relation to a campaign finance case in Texas.

"Even pulling ANWR back you still had a lot of people with concerns out there. ...We just couldn't pull them across the line in time," Mr. DeLay said.

Mr. Blunt, the Missouri Republican who has temporarily replaced Mr. DeLay as majority leader while keeping his job as majority whip, said he was optimistic leaders would work through the deadlock next week.

Mr. DeLay said he thought "the chances are very good" that a joint House-Senate panel would be able to get approval for drilling in the wildlife refuge if the budget cut legislation makes it to that final stage -- comments certain to fuel Democrats' suspicion that Republican leaders are temporarily removing the measure but planning to restore it later. The Senate narrowly approved drilling in the wildlife refuge in their version last week.

On the others side of the Capitol yesterday, the Senate Finance Committee was scheduled to vote on a tax cut extension proposal that would add nearly $70 billion to the deficit, but would provide $7 billion worth of measures to help rebuild areas affected by Hurricane Katrina, including credits aimed at creating more low-income housing and helping small businesses in the area.

But all nine committee Democrats oppose the package -- in large part because of the extension of capital gains and dividends tax breaks set to expire in 2008 and 2009 respectively -- meaning Republican Chairman Charles E. Grassley needed all 10 Republicans on the committee vote to get the legislation out of committee and to the Senate floor.

But Sen. Olympia J. Snowe, R-Maine, refused to give in even after all the other Republicans -- including Majority Leader Bill Frist -- pressured her in a members-only session for more than two hours.

They emerged without a deal, but all sides said discussions were ongoing.

Ms. Snowe would not discuss the terms of a possible deal, but said her preference was to focus on tax provisions expiring in the near future, not those that expire in several years.

"We're in a different economic environment, we've had three back to back hurricanes," Ms. Snowe said. "We want to look at the overarching issues in the context of the environment and challenges we today as a country."

To bypass Ms. Snowe, Senate leaders may opt to wait for the House to pass its own version of the tax cut package. But the fate of the tax package in the House depends on leaders' success in pushing through their budget cut measure.

Sen. George V. Voinovich, R-Ohio, who has argued strenuously against the tax cuts because he believes their cost will be unfairly shouldered by future generations, said Ms. Snowe's maneuver was "wonderful."

"I think at this stage of the game -- from a political and public policy point of view -- that it would be in the best interest to let this one slide," Mr. Voinovich said.

But Sen. Kay Bailey Hutchinson, R-Texas, said the extensions were crucial for "the stability of our economy and the markets."