WASHINGTON -- An emotional CIA Director George Tenet, the target of much of the criticism surrounding intelligence failures in Iraq and before Sept. 11, 2001, praised the agency's employees Thursday after it was announced he has resigned.

GEORGE J. TENET Background Info: George J. Tenet Video: Bush: Tenet 'Strong Leader' Full Text: Bush's Remarks On TenetSlideshow: The Bush Cabinet Background Info: Interim Replacement BIO BOX AGE-BIRTH DATE: 51. Jan. 5, 1953 EDUCATION: Bachelor's degree, School of Foreign Service, Georgetown University, 1976; Master's degree in international affairs, Columbia University, 1978 EXPERIENCE: Staff director, Senate Committee on Intelligence, 1988-1993; National Security Council staff 1993-1995; deputy director, Central Intelligence Agency, 1995-1996; acting CIA director 1996-1997; CIA director 1997-2004; submitted resignation June 3, citing personal reasons FAMILY: Wife, A. Stephanie Glakas-Tenet; son John Michael QUOTE: "There is no room for either politics or partisanship in the way the intelligence community performs its duties."

Tenet -- whose resignation is effective on July 11, the seventh anniversary of his appointment by President Bill Clinton -- spoke to CIA employees at agency headquarters, hours after President George W. Bush announced his resignation.

"This is the most difficult decision I've ever had to make," Tenet said, often fighting tears. "And although Washington will put many faces on it, it had only one basis in fact: the well-being of my family."

Tenet praised his wife and his son, whom he thanked for standing by him.

"You have been just a great son," Tenet said about John Michael. "Now, I am going to be a great father."

He called serving as "DCI" -- director of Central Intelligence" -- "the greatest honor of my life."

Earlier, Bush said he was "sorry" Tenet was leaving. He said Deputy CIA Director John McLaughlin will serve as acting director beginning in mid-July until a replacement is appointed.

"He's done a superb job on behalf of the American people," Bush said. "I will miss him."

Tenet had been under fire for months in connection with apparent intelligence failures in Iraq and before Sept. 11, 2001.

Most of Tenet's critics point to assertions the United States made about Saddam Hussein's purported possession of weapons of mass destruction. He is rumored to have told Bush the case for banned weapons in Iraq was "a slam dunk."

Last month, Tenet and other members of the Bush administration were grilled about "missteps" by the intelligence community that kept the U.S. government unaware of the Sept. 11 hijacking plot.

At seven years, his tenure as director is the second-longest in the agency's history. He was the only major holdover from the Clinton administration.

Tenet gave "special thanks" to Bush "for working to rebuild the intelligence community."

"He spends time with us almost every day. He shows great care for our officers. It's been an honor to serve as his director of Central Intelligence," Tenet said.

Tenet also praised the agency's officers, especially for their work in the war on terrorism.

"Like other wars, it has been a struggle of battles won and, tragically, battles lost," he said. "What you have achieved against this clever, fanatical enemy around the world will forever be for most Americans unknown and unaccounted."

Tenet was not expected to stay in his position much longer, and rumors were that he asked Bush about resigning before the Iraq war.

Reaction Mixed

One senator says George Tenet shouldn't be made "a fall guy for anything."

Sen. Charles Schumer, D-N.Y., called the resigning CIA chief "an honorable and decent man" who served the nation well "in difficult times."

But House Speaker Dennis Hastert, R-Ill., indirectly referred to controversy about intelligence lapses during Tenet's tenure by saying "history will tell" the implications of Tenet's seven years as spy chief.

Hastert said history "will either vindicate" Tenet or point out that there were problems while he headed the agency.

A man who was once in the same shoes said he believes Tenet was pushed out. Former CIA Director Stansfield Turner told CNN he doesn't think Tenet would have stepped down during an election year unless he was "told to do that."

Sen. John Kerry, D-Mass., pointed out that he called for Tenet's resignation long ago.

"He has worked extremely hard on behalf of our nation, and we are grateful for his effort," Kerry said. "There is no question, however, that there have been significant intelligence failures, and the administration has to accept responsibility for those failures."