WASHINGTON -- U.S. lawmakers begin to return from their August recess on Tuesday as they enter what promises to be a busy final stretch of the 107th Congress, one expected to be dominated largely by the war on terrorism.

In wrapping up their work, they will prepare to square off in the Nov. 5 elections when control of the Democratic-led senate and Republican-led House of Representatives will be up for grabs.

Topping the agenda on capitol hill will be President George W. Bush's possible invasion of Iraq as well as his proposed Department of Homeland Security, Reuters reported.

Also awaiting lawmakers will be a stack of must-pass spending bills needed to keep the Federal Government running in the new fiscal year, which begins on Oct. 1.

In addition, there are a number of unfinished measures that may or may not get passed. They include ones to reform bankruptcy, pension and U.S. election laws.

With the Americans split on whether U.S. troops should remove Iraqi President Saddam Hussein from power as a terrorist threat, Bush says he will consult Congress before deciding what to do.

The White House says the president has the authority to strike Iraq. But a number of lawmakers, even those who favor ousting Saddam, say he should seek their approval. "We need to have full, complete consultation," Rep. Nita Lowey, a New York Democrat, said on NBC's "meet the press" on Sunday. "If the president makes a compelling case, I do believe there will be strong bipartisan support."

A resumption of congressional hearings on Iraq is planned and a resolution may be offered that states Bush should obtain the approval of Congress before committing troops.

--- Joint House-Senate Meeting in New York --- The senate reconvenes on Tuesday and the House on Wednesday. On Friday, members will travel to New York City to attend a ceremonial joint meeting of the House and senate to help commemorate the first anniversary of the Sept. 11 attacks on the United States, which occurs next week.

Congressional leaders had hoped to send to Bush by then requested legislation to create a department of homeland security to better protect against terrorists.

But more time has been needed to finish such a measure. It would implement the biggest U.S. government reorganization in a half century by folding into the new department all or parts of 22 existing agencies, including the border patrol, secret service and coast guard.

The Senate will begin on Tuesday consideration of its version of the bill, which the president has threatened to veto. Bush backs the House version, which would give him the power he has demanded to hire, fire and transfer workers.

Sen. Joseph Lieberman, a Connecticut Democrat and chief author of the Senate bill, warned in a letter to colleagues last week that the proposed department could become mired in a "quicksand of unnecessary controversy" if Bush continues to insist on unprecedented management flexibility in the agency.

but the White House has stuck to its guns and reiterated it needs such flexibility to run an efficient operation.

Democratic and Republican leaders on Capitol Hill express optimism they will be able to reach a compromise.

Overall, the war on terrorism is not expected to be much of a factor in the congressional races as there has been bipartisan support to strengthen the president's hand. Instead, the contests may likely turn on domestic matters, such as the ailing economy.

Bush is considering asking Congress for additional tax breaks to stimulate the economy and encourage wary investors to put more money in the stock market. But the initiative may not get very far amid all the election-year finger pointing.

Democrats blame Bush's $1.35 trillion tax cut package last year for contributing to the economic downturn.

Republicans insist the big problem has been excessive spending by Democrats.