Bryant charges said to be near

"We did receive a subpoena yesterday, and we are in the process of complying fully with the Justice Department's request," Biondi said yesterday.

The subpoena served on Stack demands documents relating to grants for Union City Day Care, which is headed by his estranged wife, Katia. The day-care center received at least $200,000 in last-minute state assistance over the last few years, according to budget documents.

A spokesman for Stack, who also is mayor of Union City, said the assemblyman was fully cooperating. But spokesman Joseph Lauro, who said the day care had also received a subpoena, dismissed the notion that Stack's wife benefited from the grant. The state money did not in any way contribute to her salary, said Lauro.

"Those grant dollars went for capital projects at a city-run day-care center and a city park, and the only people who benefited are families that use the day-care and people who use the park," Lauro said.

Legislative leaders, too, have defended many of the grants, saying that most go to worthwhile causes. But with the cloud of a federal investigation hanging over the Statehouse, they have vowed to reform the way the grants are doled out.

Starting with the budget season currently under way, they say, lawmakers will have to submit their requests for funding in writing ahead of time, and note any potential conflicts of interest. The idea is to have greater transparency so the public can scrutinize any additions to the budget before the spending plan becomes law.