Washington DC - The House of Representatives on Thursday rejected a short-term extension of a major warrantless surveillance program, leaving one of Washington's most powerful intelligence tools on course to expire within hours.

The failed vote on Section 702 of the Foreign Intelligence Surveillance Act came after Democrats – and some Republicans – balked at renewing the authority amid a wider fight over President Donald Trump's plan to install close ally Bill Pulte as acting director of national intelligence (DNI).

The program allows US intelligence agencies to collect communications of foreign targets overseas without a warrant, and officials say it is central to counterterrorism and other national security work.

Supporters warn that a lapse would plunge intelligence agencies and telecommunications companies into legal uncertainty, potentially depriving the government of a tool credited with helping thwart terror plots and supplying a large share of the president's daily intelligence briefing.

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But 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.

Although the statute expires at midnight on Friday going into Saturday, surveillance programs operate under year-long certifications approved by the Foreign Intelligence Surveillance Court – meaning existing surveillance authorizations could theoretically continue through March 2027.

Trump had urged lawmakers to pass a stopgap extension until July 2, saying it would give the White House time to select and confirm a permanent intelligence chief.

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

The defeat left Congress with no time to prevent the first-ever lapse of Section 702, with House lawmakers preparing to leave Washington until June 23, and the Senate also struggling to find a path forward after blocking FISA renewal last week.

Trump announced New York federal prosecutor Jay Clayton as his DNI nominee after the failed House vote, but he did not withdraw Pulte from the temporary role.

With the House adjourned and Democratic senators still seeing Pulte as a red line, the move will not end a standoff that has scrambled what had looked like a bipartisan path to renewing the spy power.

"Pulte's got to go. The DNI role is too important," Senate Minority Leader Chuck Schumer told reporters after Trump's announcement.

"No ands, ifs or buts, no other conditions, no other nominees. Pulte's got to go before anything else can happen."

"I've known and respected Jay Clayton for decades. His intelligence, temperament and deep commitment to public service will make him a terrific DNI," added Jim Hines, the top Democrat on the House Intelligence Committee.

"Had this nomination been made a week ago, lots of pain might have been avoided."