Amid sex scandal, Sen. Craig resigns

BOISE, Idaho (CNN) -- Sen. Larry Craig said Saturday he will resign, succumbing to rapidly intensifying pressure from within his own Republican Party.

"The people of Idaho deserve a senator who can devote 100 percent of his time and effort to the critical issues of our state and of our nation," said Craig, speaking under a clear blue sky at 10:30 a.m. (12:30 p.m. ET) outside the historic Boise Depot in Idaho's capital city.

"Therefore it is with sadness and deep regret that I announce that it is my intent to resign from the Senate, effective September 30th."

His announcement was greeted by scattered applause. A woman called out, "We love you, Larry!" Craig's wife, Suzanne, Idaho Gov. C.L. "Butch" Otter and other supporters stood behind Craig as he spoke. Watch the crowd react »

Craig had been under intense pressure to quit since news surfaced this week that he was arrested in June in a men's room at the Minneapolis-St. Paul International Airport by a plainclothes police officer.

Police were investigating reports of sexual activity in the restroom.

In August, Craig pleaded guilty to a disorderly conduct charge related to the arrest.

Since the reports surfaced, Craig has maintained his innocence and says he regrets his guilty plea. On Saturday, he said he intends to pursue legal action to have his guilty plea expunged.

"We'll fight this like hell," he said.

President Bush called Craig after Saturday's announcement.

"He told him he knew it was a difficult decision for him and he wished him well," White House spokesman Scott Stanzel said.

The White House's position is that "Sen. Craig made the right decision for himself, his family, his constituents and the U.S. Senate," Stanzel said.

Craig's announcement was called "the right decision" by Senate Minority Leader Mitch McConnell, who had called the Idaho senator's actions "unforgivable."

"Sen. Larry Craig made a difficult decision, but the right one," McConnell said. "It is my hope he will be remembered not for this, but for his three decades of dedicated public service."

In a post-arrest police recording released Thursday, Craig denied that he was trying to engage in lewd behavior in the airport restroom and suggested he was entrapped by the arresting officer, who alleged Craig had made signals used by men cruising for sex.

"I sit down to go to the bathroom, and you said our feet bumped," Craig told the officer. "I believe they did ... because I reached down and scooted over and the next thing I knew, under the bathroom divider comes a card that says 'police.' "

Craig said he was in the restroom for its intended purpose and told the officers,"I am not gay. I don't do these kinds of things."

"You shouldn't be out to entrap people either," Craig said. Listen to the interview »

The officer accused Craig of lying during the contentious, eight-minute session.

"I'm just disappointed in you, sir," the officer said. "I mean, people vote for you."

Craig told reporters Tuesday he did not take part in "inappropriate conduct" and said he had "overreacted and made a poor decision" in pleading guilty. No sexual contact is alleged to have taken place.

Craig is a three-term senator who has aligned himself with conservative groups that oppose gay rights.

Otter, the governor, will name an interim replacement to serve until next year's election. Otter will most certainly name a fellow Republican, who will have a major edge in the 2008 contest, because Idaho is a heavily Republican state.

Republicans familiar with the situation told CNN that Otter supported Lt. Gov. Jim Risch to replace Craig but would wait to make an announcement.

Meanwhile, a SurveyUSA poll Friday showed that 55 percent of Idaho respondents think Craig should step down. The poll of 475 registered Idaho voters was conducted Tuesday. Thirty-four percent of the 475 respondents said Craig should remain in office.

Craig, 62 and married, earlier this week stepped down from his role in the presidential campaign of Republican Mitt Romney, as well as committee assignments in the Senate. E-mail to a friend

CNN's Dana Bash, Candy Crowley and Jessica Yellin contributed to this report.

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