By CURT ANDERSON
AP Tax Writer

WASHINGTON - Despite President Bush's admonition to keep a lid on spending, members of Congress continued Tuesday to propose new items for an emerging economic stimulus package.

One group of 11 senators proposed billions of dollars for highway, flood control and drinking water improvements.

Senate Majority Leader Tom Daschle, D-S.D., told reporters that "everything ought to be on the table" as a stimulus plan of up to $75 billion is developed, including infrastructure projects, increased unemployment benefits and aid for workers to pay health insurance premiums.

Bush, at the urging of Republican conservatives, last week called for the package to be composed mainly of tax cuts.

"We need to work together," Daschle said.

Republicans said the package should be focused directly on boosting a flagging economy that was further weakened after the Sept. 11 terrorist attacks. They generally favor short-term tax breaks aimed at improving consumer confidence and increasing business investment, warning Democrats anew not to propose a litany of new spending programs.

"There's some people trying to exploit the situation to get a lot of money for a lot of different things," said Sen. Don Nickles of Oklahoma, the second-ranking Senate Republican. "I think they're reaching too far."

Yet Republicans were also among those making new proposals. A bipartisan group of 11 senators, all members of the Environment and Public Works Committee, sent Senate leaders a letter proposing $5 billion in new highway spending, $1.2 billion for flood control projects and up to $5 billion in grants to upgrade drinking water facilities.

Four senators, including Senate Majority Whip Harry Reid, D-Nev., sent Bush a letter also supporting the proposed $5 billion in highway spending as well as $5 billion for mass transit, $3.2 billion for Amtrak, $12 billion over 10 years for high-speed rail development and $1.5 billion for airport construction projects.

"These investments will make our economy stronger and more secure for many years to come," the four senators wrote.

Treasury Secretary Paul O'Neill was meeting later Tuesday with leaders of House and Senate tax-writing committees to continue negotiations on a bipartisan plan.

Sen. Charles Grassley, R-Iowa, the ranking Republican on the Senate Finance Committee, said he hoped the group could come to an agreement that might avoid a lengthy partisan battle.

"We need to first keep it to $75 billion. Then we need to get a bipartisan agreement to succeed," Grassley said.

Bush has proposed accelerating income tax cuts scheduled to take effect in 2004 and 2006, enhancing expensing write-offs for business equipment, extended unemployment benefits, repeal of the corporate income tax and help for low- and moderate-income workers, perhaps in the form of a new round of tax rebate checks.

House Republicans leaders have said the Ways and Means Committee could begin work later this week on a package, which they want to also include a cut in capital gains taxes on investment.