Washington DC - President Donald Trump on Thursday named prosecutor Jay Clayton as his new intelligence chief, after a backlash from Republicans over his bid to install an inexperienced ally in the post.

Trump's naming of loyalist housing official Bill Pulte as acting Director of National Intelligence earlier this month, despite having no intelligence background had sparked an uproar.

Clayton is a US attorney for the Southern District of New York and was a director of the Securities and Exchange Commission in Trump's first term in office.

"I am pleased to announce the Nomination of very Highly Respected Jay Clayton... to be the next Director of National Intelligence," Trump said on his Truth Social platform.

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"I encourage the United States Senate to confirm Jay as soon as possible."

Trump backed down in the face of a Senate rebellion over his naming of Pulte.

The fight over Pulte ended up with the US House of Representatives on Thursday rejecting a short-term extension of a major warrantless surveillance program in protest.

The vote collapsed amid anger over Pulte, the head of the Federal Housing Finance Agency, who has no background in national security and has been accused by Democrats of using government databases to seek damaging information on Trump's political enemies.

Democrats said they would not back even a temporary renewal without reforms to protect Americans' privacy and a retreat from Pulte's elevation.

Trump had previously appeared to double down on Pulte.

He ordered Pulte to cut jobs in the US intelligence community, saying that being only an acting director who did not need Senate approval meant he was "less shackled."

Former intelligence director Tulsi Gabbard announced in May that she was stepping down to care for her husband as he battled cancer.

She was originally due to leave on June 30 but Trump brought the date forward to June 19.