Hit by recent ethics scandals, House Democratic leaders Wednesday barred the long-standing practice that allows members to direct federal spending to specific private companies.

The move marks a dramatic shift in policy. The practice has been denounced by watchdogs groups, such as Taxpayers for Common Sense, as ripe for corruption. The new rule comes after a damaging ethics report linking campaign donations to the special projects, known as earmarks.

Lawmakers directed about 1,000 earmarks worth $1.7 billion to companies this budget year, said Ellis Brachman, a spokesman for House Appropriations Committee Chairman Dave Obey, D-Wis. That's about 10 percent of the $16 billion in all earmarks, most of which went to non-profits and government agencies.

How much the new rule will reduce such spending is unclear. The Senate so far has refused to go along. Sen. Daniel Inouye, D-Hawaii, who chairs the Senate Appropriations Committee, said in a statement: "It does not make sense to discriminate against for-profit organizations."

House Speaker Nancy Pelosi, who pledged to tighten ethics rules when her party took control in 2007, said the new rule shows Democrats are "continuing to uphold our pledge to bring honesty back to government."

Ethics problems have bombarded House Democrats recently, including a report on an investigation into earmarks sought by clients of a now-defunct lobbying firm. Independent investigators found "probable cause" that Rep. Pete Visclosky, D-Ind., sought donations "in a manner which gave the appearance the contributions were linked to an official act." The ethics committee cleared Visclosky and six others after determining there was no link between donations and earmarks.

Brachman and Pelosi's spokesman, Brendan Daly, declined to say whether House Democrats would refuse to support earmarks added by senators. "We hope the Senate will join us," Brachman said.

Steve Ellis of Taxpayers for Common Sense said: "If the Senate doesn't play ball, there are still going to be a lot of for-profit earmarks."

House Republican Leader John Boehner of Ohio said he will ask GOP members today to adopt a moratorium on all earmarks. "If we do, I think the Democrats would have to follow," said earmark opponent Rep. Jeff Flake, R-Ariz.

Sen. Jim DeMint, R-S.C., is pressing for a Senate ban on earmarks to show "we're serious about changing Washington."

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Matt Kelley and Fredreka Schouten report for USA Today.