Democrats in Congress Tuesday dismissed looming Pentagon layoffs of thousands of civilian defense workers over an Iraq war funding dispute as Bush administration scare tactics.

Republicans and the White House meanwhile tried to maneuver anti-war Democrats into a corner — accusing them of callously withholding vital financing for frontline troops in Iraq, as Christmas approaches.

The latest fierce exchanges on the war came after Defense Secretary Robert Gates warned last week the army was preparing to furlough an estimated 200,000 civilian employees and defense contractors to free up money for Iraq.

He said the move was necessitated by the need to dip into regular Defense Department budgets, after a new emergency troop funding package failed to make it through Congress.

"They're scaring people. They're scaring the families of the troops … That's the thing that's so despicable about what they're doing," said veteran anti-war Democratic congressman John Murtha.

Another senior Democrat, David Obey, chairman of the powerful House of Representatives appropriations committee, which controls government purse strings, said lawmakers had already offered war funds to Bush.

A 50 billion dollar partial funding bill passed the House last week, but fell prey to Senate blocking tactics by Republicans who rejected its requirement for the start of almost immediate troop withdrawals.

As a result, funding for the war is in limbo, though Democrats argue the Pentagon has sufficient funds for Bush to keep the war effort going on until at least February.

"We've already provided the money that he's asked for — as far as I'm concerned the ball is in his court," said Obey.

Republicans however are cranking up pressure, pushing the Senate to pass a war bill without troop withdrawal timetables, and using the politically sensitive Christmas period as leverage.

Lawmakers return to Washington in two weeks, after their Thanksgiving vacation, and before their Christmas recess.

White House press secretary Dana Perino called on the Democratic-led Congress to pass war funding without "arbitrary surrender dates and without micromanaging the war before they leave for their next vacation."

Senate Republican minority leader Mitch McConnell also cranked up heat on the Democrats.

"We owe it to our troops to protect them by providing the funding they need without further delay or grandstanding," McConnell said.

"Their families, here at home, deserve to know their loved ones are provided for by the time Congress leaves for Christmas."

Democrats argue that despite signs of security progress in Iraq, the lack of political progress in Baghdad, means that Bush's troop surge strategy announced earlier this year has failed.

Senate Democratic Majority leader Harry Reid said last week that Bush would get no more money for the war until next year.