NEW YORK — Former Texas Sen. Phil Gramm resigned yesterday from his role as GOP presidential candidate John McCain's campaign co-chairman, hoping to quiet the uproar that followed his comments that the United States had become a "nation of whiners" whose constant complaints about the U.S. economy show they are in a "mental recession."

Gramm, a past presidential candidate, made the remarks more than a week ago. McCain immediately distanced himself from the comments, but they brought a steady stream of criticism just as McCain is trying to show he can help steer the country past its current financial troubles.

Gramm said in a statement late yesterday that he is stepping down to "end this distraction."

"It is clear to me that Democrats want to attack me rather than debate Senator McCain on important economic issues facing the country," Gramm said. "That kind of distraction hurts not only Senator McCain's ability to present concrete programs to deal with the country's problems, it hurts the country. To end this distraction and get on with the real debate, I hereby step down as co-chair of the McCain campaign and join the growing number of rank-and-file McCain supporters."

Gramm made the comment to The Washington Times and later explained that he was talking about the nation's leaders, not the American people. Democrats claimed at the time that the Gramm comments showed that McCain is out of touch with voters' concerns over high gas prices, the struggling housing industry and the shaky economy in general.

The campaign of Democratic presidential candidate Barack Obama said Gramm's departure will make little difference to McCain's economic policies.

"The question for John McCain isn't whether Phil Gramm will continue as chairman of his campaign, but whether he will continue to keep the economic plan that Gramm authored and that represents a continuation of the polices that have failed American families for the last eight years," said Obama campaign spokesman Hari Sevugan.

Also yesterday, McCain raised more than $21 million in June and spent nearly $26 million. According to filings with the Federal Election Commission, McCain spent more than $16 million on advertising during the month. That was five times more than he spent in May, when the Democratic presidential primary was still being contested by Barack Obama and Hillary Rodham Clinton. Obama clinched the Democratic nomination June 3.

McCain also increased his spending on payroll in June by 9 percent to nearly three-quarters of a million dollars a month.

Overall, McCain's spending, more than twice what he spent in May, exceeded his fundraising in June by more than $4 million.

June was the best fundraising month of the Arizona senator's campaign, slightly exceeding his May fundraising. The increase was due to a better performance by a joint fundraising committee that McCain set up with the Republican National Committee.

Obama has not yet filed his June report with the Federal Election Commission. It is due at midnight Sunday.

But Obama reported Thursday that he raised $52 million in June, more than twice what McCain raised.