AUSTIN – A judge refused to throw out money-laundering charges against U.S. Rep. Tom DeLay on Monday, setting the stage for a trial next year and jeopardizing the former House majority leader's hopes of regaining his leadership position.

But Judge Pat Priest did dismiss a separate charge of conspiracy to violate Texas campaign-finance laws, a move that a DeLay spokesman said "underscores how baseless and politically motivated the charges are."

The congressman's lawyers had sought to have the judge quash both the money-laundering and conspiracy charges or move swiftly to schedule a trial date before Congress returns in January.

DeLay attorney Dick DeGuerin called the ruling a "partial victory," adding, "I wish it had been a total victory, but you take what you get."

The prosecutor in the case, Travis County District Attorney Ronnie Earle, said he was studying the decision and had no immediate comment.

As required by House Republican rules, Mr. DeLay relinquished his majority leader job after he was indicted in September on charges of hatching a scheme to violate Texas' ban on using corporate donations for campaigns during 2002 statehouse elections. Rep. Roy Blunt of Missouri has served as acting House majority leader.

Push to move case

Monday's decision effectively leaves Mr. DeLay and two co-defendants to stand trial next year, though where and exactly when have yet to be determined. The Republican congressman's lawyers want the case moved from Travis County, which is heavily Democratic, to Fort Bend County in suburban Houston.

Mr. DeLay cannot reclaim his job as House majority leader as long as he faces a felony charge – though in a sign of his eagerness to do so, aides prepared a letter to House leaders weeks ago seeking his reinstatement if the case was dismissed. Several Republican members have begun rounding up support to run for leadership jobs.

"If it continues, he's toast," said James Thurber, director of the Center for Congressional and Presidential Studies at American University.

Mr. DeLay and two associates are accused of illegally funneling $190,000 in illegal corporate donations to Republican candidates for the Texas House. The money helped the GOP take control of the Legislature, which subsequently redrew congressional districts to create several more Republicans.

Also charged in the case are DeLay political aide Jim Ellis and John Colyandro, who served as executive director of one of Mr. DeLay's political committees, Texans for a Republican Majority. Lawyers for both men, whose conspiracy charges were also dropped, called Monday's ruling a "victory."

According to the indictments, $190,000 in corporate money was relayed from the Austin to Republican National Committee and $190,000 in noncorporate money was sent to seven legislative candidates.

Texans for a Republican Majority spent a total of about $600,000 of corporate money on pollsters, phone banks, professional fundraisers and consultants in 2002. Under Texas law, corporate money cannot be directly used for political campaigns, but it can be used for administrative purposes.

Judge Priest rejected defense contentions that only movements of cash – not checks or other noncash transactions – could legally qualify as money laundering.

"Not only is the money in Texans for a Republican Majority PAC's bank account intuitively 'funds,' it is also legally so," he wrote.

The judge laid out the conditions prosectors must prove to win a conviction: "If funds were sought and obtained from corporations in order to channel the funds to individual candidates," he wrote, "or if money was so channeled though originally lawfully received, once the candidates received the funds, the crime was complete."

Mr. DeGuerin called that "a big 'if' " and expressed confidence the prosecution could not prove that TRMPAC accepted the corporate money with the illegal intent of putting it in individual campaigns. "That didn't happen."

The judge agreed with the arguments by Mr. DeGuerin that the conspiracy charge to violate the Texas election code did not take effect until September 2003, a year after the TRMPAC transactions.

Mr. DeLay's lawyers have used that to argue that Mr. Earle, a Democrat, went forward with a shaky case to force the congressman from his leadership role. The conspiracy charge was in an initial indictment by a Travis County grand jury, issued Sept. 28. When questions arose about whether the law applied, the prosecutor went to a second grand jury, which refused to issue the money-laundering charges.

Mr. Earle then presented the case to a third grand jury, which indicted Mr. DeLay on money-laundering charges. Mr. DeGuerin accused the prosecutor of misconduct and has asked that the remaining charges be thrown out.

The judge noted in Monday's ruling that he had yet to decide on that request by Mr. DeGuerin.

The district attorney has 15 days to appeal Monday's dismissal of the conspiracy charge. Mr. Earle said Monday he had not decided whether to appeal.

A trial in the case would come at a difficult time for the GOP, which has been hit by a series of scandals. Former DeLay aide Michael Scanlon pleaded guilty last week to conspiring to bribe officials. His partner, lobbyist Jack Abramoff, is under federal investigation over whether he defrauded Indian tribes of millions of dollars and sought to influence members of Congress with gifts and trips.

Mr. DeLay was closely associated with Mr. Abramoff, once calling him "one of my closest and dearest friends."

Pressure mounting

Since the first indictment against Mr. DeLay was issued, pressure has mounted in Washington to replace him, with some Republican lawmakers demanding new leadership elections in January. Some have voiced concern that he is casting an ethical cloud that will hurt the party in next year's elections. Others simply eye a chance for advancement.

"He is perceived to be a liability at this point, and it's not just what comes from this particular court case," Dr. Thurber said.

To hold a new leadership election, 50 House Republicans would have to sign a petition demanding a conference meeting, where half of the 230 GOP members would have to vote to hold an election. Congressional aides and analysts doubt that can happen before Congress returns from its holiday break at the end of January.

"Will the required majority of members really be willing to rush to such a dramatic conclusion with DeLay's legal situation so close to being resolved?" asked one GOP leadership aide, speaking on condition of anonymity.