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In a rare holiday week session, the Senate continues debate on a budget reconciliation bill and defense appropriations legislation. The House of Representatives adjourned early Monday after passing a series of spending cuts and a provision for drilling in the Arctic refuge.

President Bush meets with Chinese president Hu Jintao to discuss trade and currency issues. He also attends services at one of China's few state-sanctioned Christian churches, and presses the premier to expand religious, political and social freedoms.

The leaders of the eight leading industrial countries blame "extremists" for the escalating crisis in the Middle East. But a joint G-8 statement offers no diplomatic solutions. Britain's Tony Blair and the U.N.'s Kofi Annan call for an international peacekeeping force to end the violence. The G-8 summit wraps up Monday.

The Senate begins debate on overhauling the nation's immigration laws. Senators will consider a measure passed on Monday by the Senate Judiciary Committee that would clear the way for 11 million illegal immigrants to seek U.S. citizenship. It would create a guest worker program, something President Bush supports and the House of Representatives has rejected.

President Bush stops the purchase of crude oil this summer for the government's emergency reserve, making more available for public consumption. He is also suspending and easing some environmental rules in hope of increasing refining capacity.

Palestinian President Mahmoud Abbas meets with President Bush at the White House in a bid to bolster relations with the United States and advance the peace process with Israel. Abbas came away from the meeting with a U.S. pledge of $50 million in aid for the Palestinian Authority.

President Bush pushes his plan for a guest-worker program during a visit to Arizona. His plan to bring millions of low-wage workers into the country has divided the Republican Party. He also discussed broader immigration issues and border security during his visit to Tucson, Ariz.

The head of the Senate Armed Services Committee, Sen. John Warner (R-VA), makes an unscheduled visit to the Pentagon to demand details of U.S. military efforts to pay journalists to plant stories in Iraqi newspapers. The Pentagon says disclaimers that were meant to run with the stories were omitted.

Stung by criticism that they reacted too slowly to Katrina, federal officials say they're working hard to avoid making the same mistakes twice. Already, President Bush has declared Hurricane Rita an "incident of national significance" -- which helps rally federal resources.

Sen. John McCain and President Bush have found a way to agree on former prisoner of war McCain's anti-torture legislation. The Bush administration initially opposed the amendment, which would ban the use of cruel, inhuman or degrading treatment on detainees.