Senate Democratic leaders plan Monday to take up legislation providing $25 billion in assistance to the struggling domestic auto industry setting up another showdown with the White House in the waning days of the Bush administration.

The debate likely will lead to a vote on the legislation Wednesday.

Democrats have proposed carving out $25 billion for the automakers from the $700 billion financial industry bailout, known as TARP, cleared last month (PL 110-343). That idea, however, has run into stiff resistance from the White House and congressional Republicans, who want an existing loan program for automakers amended to assist the industry. That program, approved as part of a broader energy bill (PL 110-140) in 2007, is intended to help automakers meet new fuel efficiency standards and Democrats do not want to disrupt those efforts.

White House spokeswoman Dana Perino made clear the administration’s opposition to using funds from the TARP program, and criticized Democrats for continuing to push that approach.

“While we sought a bipartisan path forward using existing legislation that just needed to be amended, it’s clear that congressional Democrats are instead choosing a path that will only lead to partisan gridlock with a focus only on the Troubled Asset Relief Program,” she said. “The TARP was never intended for that purpose, and it is clear there’s very little appetite to use TARP funds in this way.”

“Therefore, we are now actively calling on Congress to pass legislation next week that will amend the loan program and help accelerate much needed funds to auto companies that can show long-term viability.”

Banking Committee Chairman Christopher J. Dodd , D-Conn., said it was unlikely there would be enough votes to approve the measure in the face of GOP opposition.

The House is planning to reconvene Wednesday for a lame-duck session. Speaker Nancy Pelosi , D-Calif., and Majority Leader Steny H. Hoyer , D-Md., have been clear that progress on auto aid or a broader economic stimulus plan will have to come in the Senate first, where Republican members have the ability to block any legislation.

Meanwhile, Senate Majority Leader Harry Reid , D-Nev., said in a letter to Minority Leader Mitch McConnell , R-Ky., that he would push for extension of unemployment benefits and an auto industry bailout if Senate Republicans block a broader economic stimulus plan

“These two provisions both address especially urgent needs and seem most likely to win your support and the support of your caucus,” Reid wrote. “I would hope you would procedurally allow the necessary votes early next week. “

Reid noted that the unemployment extension (HR 6867) passed the House by a bipartisan 368-28 vote in October. The White House signaled it was open to an extension, but continued to talk down help for the auto makers through the larger financial bailout program.

McConnell released a statement saying he could not commit to anything without seeing the legislation.

“Senator Reid has not yet provided us with the text of his proposed spending bill, or the cost to the taxpayer, or its impact on the deficit,” McConnell said. “So it would be a real challenge to promise any level of support or opposition sight unseen.”