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The FBI arrested two men wanted in connection with the Oklahoma City bombing May 2 after raiding a motel in Missouri. Gary Allen Land and Robert Jacks were being held as material witnesses to the April 19 bombing. The FBI said it didn't yet know if Land was ''John Doe 2.'' James Nichols, charged with conspiring to make explosives with McVeigh, was to have a bond hearing the same day. Nichols and his brother Terry are also material witnesses. Search crews, meanwhile, prepared to use machinery to clear away rubble in the federal building. President Clinton urged Americans to denounce antigovernment zealots. Administration law-enforcement officials asked Congress to expand their powers to investigate potentially dangerous groups. (Story, Page 3.)

The White House, rejecting a challenge from House Speaker Gingrich, refused to propose a remedy for Medicare's fiscal woes until the Republicans put their own cards on the table. White House chief of staff Panetta said House Republicans have a responsibility to produce a budget that addresses Medicare's pending bankruptcy. The House Ways and Means Committee was to hear testimony from Health and Human Services Secretary Shalala May 2 regarding the crisis. (Story, Page 1.)

Sales of new homes rose 3 percent in March, reversing direction from February's 12.5 percent plunge, as mortgage rates continued to fall. The market was mixed, however, with sales rising by double-digit figures in the Midwest and West and falling by double-digit figures in the Northeast and South, the Commerce Department said.

The administration said it will allow thousands of Cuban refugees held at Guantanamo Bay to migrate to the US. Officials said the new policy would be announced May 2 as part of an agreement with Cuba. The administration said Cubans trying to reach the US by boats and rafts will be returned to Havana. (Opinion, Page 20.)

The Federal Election Commission said more money was raised and spent in last year's congressional races than ever before. Candidates raised $740.6 million and spent $724 million, breaking records set in both categories during the 1992 election cycle. Candidates raised 12 percent more in the 1994 cycle than they did in 1992 and spent 6 percent more, the FEC said.

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