Speaking at a press conference in Boise, Idaho, the senator said he would reveal next month whether he intends to seek reelection in November 2008, but he gave what may have been a hint when he said he believed he could continue to be a leader in his state.

With his wife at his side, Craig said he pleaded guilty after his June arrest in the Minneapolis airport without consulting a lawyer and “in the hope of making it go away.”

“I overreacted and made a poor decision … I was not involved in any inappropriate conduct at the Minneapolis airport or anywhere else,” Craig said.

The conservative pointed a finger at the Idaho Statesman, accusing the newspaper of harassing his family during an in-depth investigation of persistent rumors in the gay community that Craig is a closeted homosexual.

“Let me be clear: I am not gay and never have been,” Craig said, calling the newspaper’s inquiry a “witch hunt.” He attributed his guilty plea to the “stress” of the Statesman investigation.

Craig said he has retained legal representation and asked for advice on how to handle the guilty plea that he entered in Minneapolis’s county court on Aug. 8. He paid a $575 fine and received one year’s probation, while a 10-day jail sentence for disorderly conduct was stayed.

But Craig’s more serious challenge may come from within the GOP conference, where he wielded considerable power as an appropriator and advocate for immigration reform.

Five Senate GOP leaders — Minority Leader Mitch McConnell (Ky.), Minority Whip Trent Lott (Miss.), conference Chairman Jon Kyl (Ariz.), Policy Committee Chairwoman Kay Bailey Hutchison (Texas) and campaigns chief John Ensign (Nev.) — issued a statement Tuesday that notably refrained from expressing confidence in Craig.

“This is a serious matter,” the Republican leaders said. “Due to the reported and disputed circumstances, and the legal resolution of this serious case, we will recommend that Senator Craig’s incident be reported to the Senate Ethics Committee for its review. In the meantime, leadership is examining other aspects of the case to determine if additional action is required.”

Conservative pundits and interest groups have called on Craig to resign, but he defended his ability to serve: “There are still goals I would like to accomplish, and I believe I can still be an effective leader for Idaho.”