by Lisa Mascaro

The Senate will convene -- briefly -- on Thursday to approve a popular $600 million border security bill in a do-over vote that was required because of a procedural mishap in passing the measure the first time.

Most senators are not expected interrupt their August recess to return to Washington.

The bill reflects President Obama's proposal to beef up security along the border with Mexico by adding 1,500 new border patrol, customs and immigration officers.

The measure is an important election year issue as lawmakers from both parties intend to show voters Washington is capable of addressing security after Arizona passed its tough illegal immigration law.

Sen. Harry Reid (D-NV), the majority leader, called the rare session after the House unanimously passed the border bill this week during its own unusual one-day session.

The bill is likely to be approved using a procedure that does not require most senators to be present. The bill passed unanimously in the Senate just days ago.

by Mike Memoli

Confirmation that former Sen. Ted Stevens (R) was among the five passengers killed on a downed plane in Alaska was quickly followed by bipartisan praise for a man who was among the longest-serving members of Congress in U.S. history.

President Obama, elected the year Stevens lost his final election, offered condolences to the Stevens family in a statement this afternoon.

"A decorated World War II veteran, Senator Ted Stevens devoted his career to serving the people of Alaska and fighting for our men and women in uniform," he said.

Hawaii Sen. Dan Inouye (D), the longest-serving current senator, said he lost "a brother."

"Our friendship was a very special one," he said. "When it came to policy, we disagreed more often than we agreed, but we were never disagreeable with one another. We were always positive and forthright. Senator Stevens and I worked together to ensure that the small non-contiguous states of Hawaii and Alaska were not forgotten by the lower 48."

His loss was felt most profoundly at home in Alaska, where Gov. Sean Parnell (R) called him "a lion who retreated from nothing."

"Ted Stevens seemed larger than life," he said. "He built Alaska and he stood for Alaska and he fought for Alaskans."

Sen. Lisa Murkowski, who served alongside him for six years, was even more effusive in her praise.

by Mike Memoli

Frustrated that his case will not be heard by the ethics committee until September, Rep. Charles Rangel (D-NY) took to the floor of the House Tuesday for an extraordinary personal appeal to expedite the process, saying he would not leave the chamber short of expulsion.

"Don't leave me swinging in the wind until November," he said. "I deserve and demand a right to be heard."

You can watch the full speech here, courtesy of C-SPAN:

As Rangel himself pointed out, his lawyers and even fellow Democrats had urged him not to take to the floor today, when lawmakers were set to pass a $26 billion aid package for state and local governments. A Democratic aide said bluntly that it "was the last thing we needed today."

"He has every right to defend himself, but it seems like he and [Maxine] Waters are now more concerned with causing collateral damage than clearing their name. No one is going to remember that we voted to save hundreds of thousands of teachers' jobs. We can't catch a break," the aide said.

KTUU, an NBC-affiliate station in Anchorage, is reporting that former Sen. Ted Stevens (R) has died in the crash near Dillingham in the Southwest Alaska.

Dave Dittman, a former aide and longtime family friend of former Sen. Ted Stevens says Stevens was killed in a plane crash near Dillingham Monday night. Nine people were on board, including former NASA Chief Sean O'Keefe. Five people were killed in the crash, but other identities were not known, nor are the conditions of the survivors.

Late through the night rescue crews were battling bad weather conditions to reach the scene, where Good Samaritan personnel had already made it, said Air National Guard spokesman Maj. Guy Hayes.

A military C-130 and a Pave Hawk helicopter were waiting in Dillingham for the weather to break and reached the site just after 7:30 a.m. Tuesday.

Stevens was the seventh-longest serving senator in history, appointed in 1968 and winning seven elections. His career ended when he lost a close election in 2008, following an indictment and subsequent conviction on charges he made false statements on financial disclosure forms. In 2009, a federal judge threw out the conviction, citing prosecutorial misconduct.

We'll update as the story is confirmed. But reaction is already pouring in.

by Mike Memoli

The House ethics committee has released more information about the specific charges against Rep. Maxine Waters (D-CA), which will be heard at a rare open session of the panel next month.

Documents made public today detail three specific charges against the Los Angeles congresswoman, related to apparent efforts to receive federal help for a bank where her husband owned stock and had served on its board.

According to the 10-page statement of alleged violations, Waters' chief of staff continued to seek assistance from the Treasury Department for OneUnited Bank even when Waters herself realized it was improper to do so because of her martial connection. Another charge finds that any attempt by Waters to assist the bank violated the spirit of House ethics rules because doing so preserved the value of a family investment.

Waters is the second Democratic member of Congress facing what is often compared to a trial before her peers before the House Committee on Standards of Official Conduct. The documents released today also include Waters' response to alleged wrongdoing, and the committee's subsequent refusal to do so.

Waters has said that once the charges were public, she hoped her constituents and all Americans "will understand that I have not violated any House rules."

by Mike Memoli

One of the few uncertainties lingering before this evening's vote on Elena Kagan's nomination to the Supreme Court was how Sen. Scott Brown (R-MA) would vote. The Bay State senator announced his decision a short time ago: a no.

"The reason is simple. I believe nominees to the Supreme Court should have previously served on the bench," he said in a statement released by his office. "No classroom can substitute for the courtroom itself, where decisions are made that affect the day-to-day lives of American citizens, and where one's judicial character and temperament is shaped in favor of the fair and just application of the law."

Borrowing from the familiar analogy of judges as umpires, he concluded: "The best umpires ... must not only call balls and strikes, but also have spent enough time on the playing field to know the strike zone. Therefore, I cannot support Elena Kagan's nomination."

Brown, elected in January to the seat once held by Ted Kennedy, had praised Kagan's background when he introduced her before the Senate Judiciary Committee. He has crossed party lines regularly since joining the chamber, offering Democrats a valuable vote on some key bills. But even with Kagan's Massachusetts ties, he would not vote with the majority today.

(Photo Credit: Joshua Roberts / Bloomberg)

Lisa Mascaro reports from Capitol Hill that Sen. Barbara Boxer (D-CA) couldn't help but allude to her rival's jab over her hair style during a press conference this morning.

After adjusting a step stool to boost her height as she often does, Boxer quipped: "Because of reasons you probably know, I don't want people to just see my hair."

Carly Fiorina, her Republican opponent this November, was caught on camera in June sharing a joke about Boxer, saying: "God, what is that hair?"

Boxer's comment came as the Senate moved forward on a $26.1 billion package of state aid that will help keep nearly 140,000 teachers on the job nationwide and continue extra funding for healthcare services to low-income households during the recession.

(Photo Credit: AP / Paul Sakuma)

by Mike Memoli

Just as the Charlie Rangel "trial" in the House ethics committee goes on hiatus until September, Democrats find another senior member of their House caucus under an ethical cloud: Los Angeles Congresswoman Maxine Waters.

As Lisa Mascaro and Richard Simon reported Friday night, the House ethics committee is prepared to charge Waters with "at least one ethics violation in her efforts to help a bank with ties to her husband." She plans to fight the charge, setting up just the third full committee hearing in a decade. New details are expected to be released by the committee today.

This comes as House Speaker Nancy Pelosi is defending one of her signature campaign promises from 2006, when Democrats recaptured the House and Senate for the first time since 1994.

"When I came in, I said we're draining the swamp, and we did," Pelosi said in an interviewed that aired Sunday on ABC's "This Week." "Any personal respect and affection we may have for people makes us sad about the course of events, but we have to uphold a high ethical standard, and none of our personalities is more important than that."

(Photo Credit: AP / Charles Dharapak)

by James Oliphant

Rep. Charles Rangel of New York was charged Thursday with 13 counts of violating House ethics rules, placing the Democrat's storied, 40-year political career in jeopardy.

A House ethics panel outlined the alleged violations in a meeting that set the stage for a full-blown proceeding that could take place as early as September.

The charges stem from Rangel's alleged use of rent-controlled apartments for campaign purposes, his alleged solicitation of corporate donors for a public-policy center at a New York City college using office letterhead, the alleged failure to disclose $600,000 in income on financial-disclosure statements and the alleged failure to disclose income and pay taxes on a Caribbean rental property.

Until the moment the committee convened Thursday afternoon, talk was filtering through congressional corridors that Rangel's attorneys had struck a deal to avoid the hearing.

But Rep. Michael McCaul of Texas, the ranking Republican on the subcommittee that will try Rangel, suggested the time for a settlement had passed, saying Rangel, a Democrat from Harlem, had been given an "opportunity to negotiate a settlement in the investigation phase."

"The American people need to hear the truth," McCaul said.

You can read more on the Rangel news here.

by Mike Memoli

Lisa Mascaro and I reported for today's papers on the new troubles of New York Democrat Charlie Rangel, former chair of the House Ways and Means Committee. He faces a hearing before the House ethics committee next Thursday, what amounts to a trial over allegations including improper use of official letterhead and failure to pay taxes on rental property in the Dominican Republic.

But the real political problem facing Democrats is here:

Rangel, 80, could face reprimand, censure or expulsion if the House Ethics Committee determines he violated rules. Any such sanction would be subject to a vote of the full House.

Only two members of the House have been expelled, and the last was Jim Traficant, who had already been convicted at the time of the vote of his peers. It is unclear if there is any criminal investigation underway of Rangel, but most of his charges here are for violating House rules only.

When Rangel surrendered his chairman's gavel earlier this year, he said it was because he didn't want to become an issue for fellow Democrats in an election year. This hearing now is scheduled to begin after the 100-day countdown begins toward election day. Don't be surprised, then, if others in the Democratic caucus are quietly pushing for Rangel to resign before the hearing, which is open to the public and TV cameras, begins.

Photo Credit: AP / Alex Brandon

by Lisa Mascaro

The House passed legislation Thursday extending unemployment insurance for 2.5 million jobless Americans, sending the bill to President Obama who is expected to quickly sign it into law.

Continued aid for the unemployed had been stalled for weeks over Republicans' insistence that the $33.9 billion cost be paid from spending cuts elsewhere. Democrats have argued that extending jobless aid has typically been treated as an emergency and not required a funding source.

The vote was 272-152.

The Senate broke the stalemate earlier this week when two Republicans joined Democrats to pass the bill.

Obama plans to quickly sign the legislation into law, which would unleash the aid to those who had their benefits cut off in late May. The aid would be retroactive to the cut off and continue through November.

by Kathleen Hennessey

Rep. Michele Bachmann has filed paperwork to form a "tea party" caucus in the House. The Minnesota Republican and conservative darling sent a letter on Thursday seeking to register the caucus with the House Committee on Administration. The caucus "will serve as an informal group of members dedicated to promote Americans' call for fiscal responsibility, adherence to the Constitution and limited government," the letter said. Bachmann will be its chair.

"The American people are speaking out loud and clear," she said in a statement. "They have had enough of the spending, the bureaucracy, and the government knows best mentality running rampant today throughout the halls of Congress. This caucus will espouse the timeless principles of our founding, principles that all Members of Congress have sworn to uphold."

While many other incumbent Republicans were unsure of how close to get to the tea party movement, Bachmann quickly embraced it and has acted as a sort of tea party ambassador to Congress. (http://articles.latimes.com/2009/dec/27/nation/la-na-michele-bachmann27-2009dec27)

Rand Paul, the Republican candidate for Senate in Kentucky, has said he would form a Senate Tea Party Caucus if he gets elected.

No word yet on who will join Bachmann in the House caucus. A spokesman from her office said she is still waiting for final approval from the House committee.

by Mike Memoli

Financial reform legislation edged closer to passage this morning, after the Senate voted to end debate on one of Democrats' key legislative priorities.

The vote to invoke cloture on the measure, a sweeping overhaul of rules governing Wall Street and the financial sector, received just enough votes to end filibuster. Sixty senators, including three Republicans, supported the motion, while 38 voted against it.

"It is not a perfect bill," Sen. Chris Dodd (D-Conn.), chair of the Banking Committee, said before the vote. "But we believe we've done the best we could under the circumstances to see to it that we never have another bailout of a major financial institution at taxpayer expense."

Vote on final passage is expected this afternoon, which would allow President Obama to sign the bill into law, likely next week.

But, as Jim Puzzanghera writes this morning, Obama's signature "won't mark the end of the high-stakes battle over remaking Wall Street. It will be more like the halftime show."

by Lisa Mascaro

Senate Majority Leader Harry Reid this afternoon offered the first broad outline of the energy bill he expects to bring to the floor later this month - including a possible limit on pollution from utility companies.

Senate leaders met with President Obama today at the White House where energy and other topics were discussed, and Reid was meeting this afternoon with Energy Secretary Steven Chu, Interior Secretary Ken Salazar and White House energy czar Carol Browner on the legislation.

At issue has been whether any energy bill would try to cap carbon, a contentious issue before the coming midterm elections that divides not only the parties, but Democrats as well.

Reid outlined four broad sections of the bill, but would not specifically say a carbon cap on coal-fired power plants was included.

"We're looking at a way of making sure that when we talk about pollution we're focused on just the utility sector," Reid told reporters.

by Michael Muskal

Massachusetts Sen. Scott Brown said on Monday that he will support the financial regulation overhaul, becoming one of the Republicans needed to moved one of the Obama administration's key pieces of legislation into law.

Brown had announced that he would oppose the compromise bill that had been negotiated by the House and Senate, but shifted his support after bargainers went back to the table and restructured about $19 billion in payments that was opposed by banks in Brown's state. A final Senate vote could come this week.

"I appreciate the efforts to improve the bill, especially the removal of the $19-billion bank tax. As a result, it is a better bill than it was when this whole process started. While it isn't perfect, I expect to support the bill when it comes up for a vote," Brown said in a prepared statement.

Brown joined Sen. Susan Collins of Maine as two crucial Republican votes for the legislation.

Democrats need 60 votes to prevent a GOP filibuster. Even with Brown and Collins, the vote is expected to be close. The death of Sen. Robert Byrd (D-W.Va.) has costs the Democrats a sure yes vote, and at least two Democrats have said they were unhappy with the final form of the bill, though at least one said she is likely to vote for it.

More over at D.C. Now.

Photo Credit: AP / Drew Angerer

Just as he's ramping up his effort to keep Congress in Democratic hands, Lisa Mascaro reports that President Obama is finding new resistance to his policies from his own caucus on Capitol Hill.

From her story today:

For the last year and a half, on issues including healthcare, financial regulation and climate change, Democrats in Congress have bent for President Obama. Liberals swallowed hard to accept compromises that fell short of their long-sought goals, and moderates cast tough votes that now threaten their reelection prospects as voters revolt against government overreach.

Then, last week, the president asked them to bend yet again -- this time to approve more money for his troop buildup in an Afghanistan war that many Democrats oppose.

And once again, lawmakers went to work. On the eve of the vote last week, Democratic leaders compiled a complicated $82-billion package of war funding, disaster aid and domestic spending that achieved the seemingly impossible -- meeting the president's request while accommodating the needs of its politically diverse members.

Obama responded with a one-word message that sent shudders through his party on the Hill: veto.In that exchange, the tension between the White House and the president's Democratic allies spilled over.

Obama has led what historians have called the most productive Congress since President Lyndon Johnson, but he may have a much harder time extracting difficult compromises in the future.

Check out the full piece here.

by Lisa Mascaro

Facing stiff Republican opposition, Congressional Democrats will try again this week to pass an extension of unemployment benefits for the more than 1.2 million jobless Americans whose aid expired earlier this month.

The House is likely to vote tonight, and the Senate Thursday, in an exercise that is as much about policy as politics. Democrats seek to illustrate for voters the stark differences between the two parties heading into the November mid-term elections.

"We are doing something that's very American - helping people in an emergency," said Sen. Harry Reid, (D-NV), the majority leader, on Wednesday. "It is the right thing to do."

Twice this month the Senate has been unable to pass a benefits extension, but the new stripped down bill, shorn of other domestic spending, has drawn support from two Senate Republicans, Reid said.

Still, with the death this week of Sen. Robert C. Byrd (D-W.Va.), the bill faces an uphill climb in the Senate, where Democrats now control 58 votes. To overcome a filibuster 60 votes are needed.

by Lisa Mascaro

The man who spent a lifetime in the Senate will be memorialized there on Thursday, as the late Sen. Robert Byrd lies in repose in the chamber as the West Virginia Democrat had requested.

Members of Byrd's family will receive lawmakers from the House and Senate in the morning and the public galleries will be opened throughout the day to those who wish to pay their respects to the longest serving member of Congress.

It has been more than 50 years since a senator has lain in state in the chamber, a tradition that was common in an earlier era when lawmakers lived alone in Washington and modern travel did not yet allow for easy transit around the nation, said Betty Koed, the associate historian of the Senate.

More than 40 senators have lain in repose in the Senate, the most recent being Sen. William Langer (R-ND) in 1959 and Sen. Joseph McCarthy (R-WI) in 1957. Memorial services have also been held in the Capitol rotunda, where Sen. Henry Clay laid in state in 1852 and more recently Ronald Reagan and Rosa Parks were memorialized in repose.

The service for Byrd is scheduled from 10:15 a.m. to 3:45 p.m. on Thursday.

That evening, the senator's casket will be flown to Charleston, West Virginia. A public procession will be held from the Robert C. Byrd U.S. Courthouse to the state Capitol, where viewing will be held in the rotunda.

A public memorial service is scheduled for Friday in Charleston, at the state capital, and the White House said both President Obama and Vice President Biden are expected to attend.

Public funeral services are scheduled for Tuesday at a Memorial Baptist Church in Arlington, Virginia.

by Mike Memoli

West Virginia Secretary of State Natalie Tennant announced today that a special election to fill the Senate seat held by Robert Byrd will not be held until 2012, settling some initial confusion about when a permanent replacement would take office.

Because the state filing period for the November 2010 election has already passed, Gov. Joe Manchin's (D) appointed replacement will serve until November 6, 2012, Tennant's office explained. On that date, two elections will be held -- one for the unexpired term ending January 3, 2013, and the second for the full six-year term beginning that same day.

It would represent the first special election contest for a Senate seat in West Virginia since 1958, when Jennings Randolph was elected to the seat that had been held by the late Matthew Mansfield Neely. Byrd was elected to his first full term the same day, defeating Republican incumbent William Chapman Revercomb. Revercomb is the last Republican to represent the Mountain State in the U.S. Senate.

Byrd's death has already triggered another Senate election -- that for the post of Senate President Pro Tempore. Hawaii's Daniel Inouye, now the longest-serving member of the upper chamber, was sworn into the ceremonial office this morning, becoming third in line to the presidency after Vice President Joe Biden and House Speaker Nancy Pelosi.

Three hundred individuals have been elected or appointed to the Senate since Inouye first took office in 1963.

Lisa Mascaro and Richard Simon report on the legislative impact of the passing of Sen. Robert Byrd (D-W.V.):

The death of Congress' longest serving member has thrown into doubt the ability of Senate Democrats to achieve their goal of pushing a sweeping Wall Street reform package through the chamber and to the president's desk by week's end.

As tributes to the late Sen. Robert C. Byrd (D-W.Va.) flowed throughout the capital Monday, Washington reassessed whether Democrats would have to postpone this week's vote on regulatory reform until a successor could be named.

Democrats are now left to scramble to secure a range of election year priorities - most immediately, what was expected to be a narrow victory for the financial reform package in the face of Republican opposition. President Obama wants the bill on his desk before Congress adjourns Friday for a weeklong Fourth of July holiday recess.

You can read the full piece here.

UPDATE: Sen. Russ Feingold, one of several Democrats who had yet to sign on to the Wall Street reform legislation, issued a statement today saying he still plans to vote no. "While there are some positive provisions in the final measure, the lack of strong reforms is clear confirmation that Wall Street lobbyists and their allies in Washington continue to wield significant influence on the process," he said in a statement.

by Mike Memoli

Washington begins the week in mourning after the passing overnight of Robert Byrd (D-WV), the longest-serving senator in U.S. history. He was 92.

The president pro-temps of the Senate, Byrd represented the Mountain State since 1959. From the Tribune obit:

Byrd's death marks another milestone in the demise of a postwar generation of "Old Bulls" who ran Congress for decades. Many of them -- such as Pete V. Domenici (R-N.M.) and John Warner (R-Va.) -- have retired. Ted Stevens (R- Alaska) lost his 2008 bid for reelection in the face of corruption charges. Edward M. Kennedy (D-Mass.) died last year.

...

Renowned for carrying a copy of the U.S. Constitution in his left shirt pocket to brandish at colleagues and constituents, Byrd had a deep commitment to history. A master of Senate rules, he was by turns protective and disruptive of procedure, slowing debate with long, florid orations that invoked Greek philosophers, Roman generals and the Founding Fathers. But he could also pierce debate with a pointed comment.

Byrd's passing comes at a precarious time for Democrats, who needed every one of their 59 votes in the upper chamber to move on financial regulation and energy legislation, for starters. West Virginia law allows for the state's Democratic Governor, Joe Manchin, to make an appointment to replace Byrd; that person would serve through 2012, when Byrd's term was set to expire.

Manchin himself would likely be favored to fill that seat, but he may be disinclined to appoint himself. The early talk is that Manchin, whose own term expires in 2012 and is term-limited, would appoint a caretaker and then potentially run for the seat in the regular election. A statement from Manchin made no mention of any appointment plans, with Manchin saying simply that Byrd "made a significant mark as a member of Congress in both our state's and nation's history. His accomplishments and contributions will define history for eternity."

Democrats dominate the state government, but Rep. Shelley Moore Capito (R) would be looked at as a potential Republican nominee in two years.

Photo Credit: AP

by Jim Puzzanghera

Ending more than two weeks of often-contentious negotiations, House and Senate lawmakers reached agreement early Friday on the most far-reaching rewrite of financial rules since the Great Depression.

The final details, including creation of an agency to protect consumers in the financial marketplace and new regulations to reduce risk-taking by large banks and limit their trading of complex derivatives, were hashed out in a marathon 20-hour session that began Thursday morning.

Lawmakers on a joint conference committee labored until dawn reconciling House and Senate versions of the legislation in time for President Obama to brief foreign leaders on the completed deal at a major economic summit in Canada starting Friday.

The House and Senate are expected to approve the bill next week, meeting Obama's July 4 deadline for passage of his top legislative priority heading into November's midterm elections. Lawmakers christened the bill the Dodd-Frank Act after the two main architects, Senate Banking Committee Chairman Christopher Dodd (D-Conn.) and House Financial Services Committee Chairman Barney Frank (D-Mass.)

Continue reading 'Deal reached on financial reform bill'

UPDATE: President Obama commented on the agreement just before heading to Toronto for meetings of the G-20.

"We are poised to pass the toughest financial reform since the ones we created in the aftermath of the Great Depression," he said. "Our economic growth and prosperity depend on a strong, robust financial sector, and I will continue to do what I can to foster and support a dynamic private sector. But we've all seen what happens when there's inadequate oversight and insufficient transparency on Wall Street."

The provisions in the bill "will hold Wall Street accountable so we can help prevent another financial crisis like the one that we're still recovering from," he added. Asked if the final draft could pass in both chambers, Obama replied simply: "You bet."

by Lisa Mascaro

Moved by photos of the devastation from the Gulf oil spill, Democratic senators emerged this afternoon from a caucus-wide meeting determined to tackle a comprehensive energy bill this summer -- regardless of legislation's ability to win the 60 votes needed to pass.

Senators called the meeting "motivating" and "almost like a little revival - a lot of clapping, a lot of yelling" as one speaker after another voiced a desire to debate the thorny issue.

"It's one of the best caucuses I've seen and I've been here over 25 years," said Sen. Frank Lautenberg (D-NJ).

"There is an incredible moment in front of us that has in many ways unified the public -- and that is how do we stop the terrible thing that happened in the gulf from being repeated," he said. "Even if we lose, we carry a message that has meaning."

What remains to be seen are the details of a bill that Senate leaders plan to craft from various measures and whether it would contain a provision to cap carbon - essentially a tax on polluters.

by Lisa Mascaro

After his Oval Office address was largely panned by pundits, President Obama took his push for energy legislation directly to supporters today in a video message reiterating his pledge to round up the votes needed to pass a bill.

"In the coming days, I will work with both parties to find the necessary votes to move comprehensive energy and climate change legislation forward," Obama said in the video sent to supporters from Organizing for America at the Democratic National Committee.

Obama is scheduled to meet on Wednesday with a bipartisan group of senators in a high-profile effort at bridging the political divide over energy legislation.

Finding the 60 votes needed to move an energy bill in the Senate is a difficult political task as even the president's own party is divided over various elements, especially a possible price on carbon emissions that scientists believe are causing climate change.

The president has talked tough before, most notably during an early June speech in Pittsburgh when he similarly said he would work to get the votes. He also has asked supporters in recent emails to back his efforts to legislate a carbon price.

by Mike Memoli

Rep. Joe Barton (R-Texas), whose comments alleging a "shakedown" of BP this morning prompted widespread criticism -- especially from Democrats, has now apologized for what he says was a misinterpretation of his statement.

"I want the record to be absolutely clear that I think BP is responsible for this accident, should be held responsible and should in every way, do everything possible to make good on they consequences that have resulted from this accident," he said after questioning BP CEO Tony Hayward this afternoon." "And if anything I have said this morning has been misconstrued in opposite effect, I want to apologize for that misconstruction."

In a difficult political environment for the party, Democrats can barely contain their delight at what the perceive to be a monumental gaffe from the Texas Republican. The party's campaign committees have been flooding reporters' inboxes with statements on the matter, and demanding other Republicans to say whether they agree with his sentiments.

The reaction is no different at the White House, where Vice President Biden echoed an earlier rebuke from press secretary Robert Gibbs. Briefing reporters in the last hour, Gibbs also shared President Obama's reaction upon hearing of Barton's morning statement, saying the president "shook his head and couldn't understand why anybody would say that."

But it's not just Democrats who are criticizing Barton. Rep. Jeff Miller (R), who represents a Pensacola-based district in Florida that's feeling the impact of the oil spill, called Barton's comments "out of touch with this tragedy," and suggested he should consider stepping down as ranking member of the Energy and Commerce Committee.

UPDATE: Barton has released yet another clarification in which he retracts his use of the word "shakedown" this morning. You can read it in full after the jump.

Photo credit: AP / Haraz N. Ghanbari

by Mike Memoli

Eager to go back on offense after weeks of scrutiny for its response to the Gulf oil spill, the White House has offered a quick strike against Rep. Joe Barton (R), who called the deal with BP a "shakedown."

"What is shameful is that Joe Barton seems to have more concern for big corporations that caused this disaster than the fishermen, small business owners and communities whose lives have been devastated by the destruction," press secretary Robert Gibbs said in a statement. "Congressman Barton may think that a fund to compensate these Americans is a 'tragedy', but most Americans know that the real tragedy is what the men and women of the Gulf Coast are going through right now. Members from both parties should repudiate his comments."

Today's subcommittee hearing has taken a brief recess to allow members to vote. BP CEO Tony Hayward has just offered his opening statement, and will face questions when the members return after noon.

UPDATE: During an appearance at the daily press briefing to promote the Recovery Act, Vice President Biden was asked for his reaction to Barton comments. He called them "incredibly sensitive, incredibly out of touch." "There's no shakedown," he said. "It's insisting on responsible conduct and a responsible response to something that they caused." If that wasn't enough, he added "outrageous" and "astounding" to the list.

Gibbs later said Republicans should consider whether Barton should remain as ranking member of the Energy and Commerce Committee. And he shared President Obama's reaction upon briefing him about the remarks, saying, "He shook his head and couldn't understand why anybody would say that."

by Mike Memoli

The agreement reached between the White House and energy giant BP emerged as an early partisan flashpoint at a Congressional hearing this morning, as a Republican Congressman apologized to the company's CEO for what he called a "shakedown."

"I'm ashamed of what happened in the White House yesterday," Rep. Joe Barton (R-Texas) told BP's Tony Hayward at today's hearing of the House Energy and Commerce subcommittee for Investigations and Oversight. "I do not want to live in a country where any time a citizen or a corporation does something that is legitimately wrong is subject to some sort of political pressure that is -- again, in my words, amounts to a shakedown."

Barton called the agreement to create an independent escrow account, funded by BP to the tune of at least $20 billion, "a tragedy of the first proportion," saying it had "no legal standing" and sets "a terrible precedent for the future." He also raised concerns over the participation of Attorney General Eric Holder, who is conducting a criminal investigation of BP over the incident at its Deepwater Horizon rig in the Gulf of Mexico, at yesterday's negotiations with company executives.

"There is no question that ... BP made decisions that objective people think compromise safety. There is no question that BP is liable for the damages. But we have a due process system, where we go through hearings, in some cases court cases, litigation, and determine what those damages are and when those damages should be paid," Barton said.

The Texas Republican said he was speaking only for himself, not his Party or any other member of Congress. Indeed, House Minority Leader John Boehner seemed to distance himself from the statement in an interview on Fox News Channel, saying: "I don't know what context Mr. Barton was making that remark, but, I'm glad BP has accepted responsibility for their actions."

His comments also invited a prompt retort from fellow subcommittee member Ed Markey (D-Mass.). Rather than a "shakedown," he called the agreement "the American government working at its best."

by Tom Hamburger and Kim Geiger

Two House committees will question government and oil industry officials about worker safety aboard the Deepwater Horizon oil rig the day it exploded in the Gulf of Mexico, focusing in part on worker complaints that the vessel was undermanned and had a confusing management structure, with the Captain in a subordinate position to the drilling manager.

These concerns were outlined this week in a Chicago Tribune/LA Times story that focused on the ship's registration with the Marshall Islands, which classified the vessel in such a way that a drilling manager rather than a captain was in charge of the vessel while it was drilling.

A top Coast Guard official, Rear Admiral Kevin Cook, will testify Thursday before the House Transportation Subcommittee on Coast Guard and Maritime Transportation and is expected to be closely questioned on Coast Guard safety and inspection requirements.

A member of the subcommittee, Rep. Gene Taylor, a Mississippi Democrat and Coast Guard veteran, is expected to ask particularly pointed questions. In a recent interview, he faulted his former branch of the service for allowing foreign and privately regulated entities to proliferate in U.S.-protected waters, many operating with standards that may not be embraced by the Coast Guard.

"They should have spotted this problem," said Taylor, whose district includes the shipbuilding center of Pascagoula. "They should have come to us and said, 'You need to tighten up the law,''' making clear what U.S. standards are - and enforcing them.

If the Deepwater Horizon were flying a U.S. flag, some maritime experts say it likely would have been classified in such a way that a licensed captain was in charge at all times. However, the ship was flagged to the Republic of the Marshall Islands and that nation allowed a drilling manager to be in charge of the vessel while it was seeking oil in the Gulf.

While the Marshall Islands fleet is generally well regarded, this classification has raised questions from lawyers about whether the ship's owner, Swiss-based TransOcean, deliberately sought less rigorous manning requirements, a charge the company has denied.

by Lisa Mascaro

Hours before President Obama is to address the nation about the oil spill in the Gulf, the administration released an analysis of a Senate cap-and-trade bill showing such a system would cost less than $1 a day in higher household energy costs.

The bill's authors, Sen. John Kerry (D-Ma.) and Sen. Joe Lieberman (I-Ct.) welcomed the Environmental Protection Agency's assessment, saying they believed Obama would make a push tonight for comprehensive energy and climate change legislation like theirs.

"The American Power Act will decrease energy bills for families and protect consumers while offering the most effective cost containment measures of any previous climate legislation," the senators said in a joint statement. "We look forward to hearing from the President this evening on just how critical passing a comprehensive solution is for our country."

The EPA's analysis showed American's household energy costs would rise an average of $79-$146 annually through 2050. The senators also pointed to a separate analysis out today from the ClimateWorks Foundation showing the bill would create 540,000 jobs annually through 2030, as well as an economic analysis released in May showing the legislation would reduce American oil consumption by 1.8 million barrels a day - many times the amount gushing in the Gulf.

"If Americans want to take a stand, this is the time," Kerry said.

Even though the House passed a climate change bill last year, the legislation faces a tougher climb in the Senate where Democrats are regionally divided and unable to collect the 60 votes needed to advance the bill.

You can read the EPA analysis here.

by Mike Memoli

North Carolina Rep. Bob Etheridge (D) has apologized for his actions captured in a YouTube video that went viral today.

"I deeply and profoundly regret my reaction and I apologize to all involved," Etheridge said in a statement. "Throughout my many years of service to the people of North Carolina, I have always tried to treat people from all viewpoints with respect. No matter how intrusive and partisan our politics can become, this does not justify a poor response. I have and I will always work to promote a civil public discourse."

There are many questions about the video, but this much is known. It was said to be shot in Washington outside of a fundraiser held by House Speaker Nancy Pelosi, which Etheridge attended. He is asked whether he fully supports the "Obama agenda," and responds by repeatedly asking the group, "Who are you?" It is unclear whether the video was edited. It was featured today on a conservative website that is known for its video sting of the group ACORN; the post is heavily promoted by the Drudge Report.

Etheridge has represented North Carolina's 2nd district since 1997. Among his former staffers is none other than White House press secretary Robert Gibbs, who sent this response to the home-state Raleigh News & Observer:

"I've known Bob Etheridge for more than a thirteen years and I am proud to have worked for him. He is one of the most honorable people I know. Everyone makes mistakes, and I'm proud of Bob for taking responsibility and apologizing for his."

The Senate today rejected an amendment offered by Sen. Lisa Murkowski (R-Alaska) that would have stopped the EPA from regulating greenhouse gases. The vote on a motion to proceed failed 47-53.

As Lisa Mascaro reported yesterday, the measure was backed by a majority of Republicans and many industry groups, including the U.S. Chamber of Commerce, who feel it is Congress' role, not the EPA's, to impose such regulations. President Obama had threatened to veto the measure if approved.

Six Democrats, including Sen. Blanche Lincoln of Arkansas, joined the unanimous GOP conference in the unsuccessful effort.

by Lisa Mascaro

WASHINGTON -- The White House was dialing for votes on the eve of a Senate showdown over the Environmental Protection Agency's ability to regulate green house gas emissions.

Senators said today the Obama administration has reached out to them before Thursday's vote on a Republican-led resolution that would register disapproval with the EPA's decision to put new rules on carbon emissions believed to cause climate change.

Sen. Susan Collins of Maine, one of the three Republicans who have not signed on to the resolution, said she received a phone call today from Energy Secretary Steven Chu.

"I told him one of my concerns was EPA's complete reversal on the treatment of biomass," said Collins, referring to a new EPA regulation that the paper industry said would treat the combustion of biomass the same as the combustion of fossil fuels. "He's going to look into that and get back to me."

A majority of Republicans and many industry groups, including the U.S. Chamber of Commerce, support the resolution, believing Congress should block EPA's authority to impose the regulations.

By Andrew Zajac

A group of insurance consumer advocates has asked Montana Democratic Sen. Max Baucus to back off plans to put rule-writing authority for drafting health care coverage standards in the hands of the National Association of Insurance Commissioners, a private organization long regarded by critics as cozy with the insurance industry.

The request, by current and former consumer representatives linked to the NAIC, argues that the association lacks the transparency and independence necessary to even-handedly craft rules, which could affect the flow of billions of premium dollars from currently uninsured Americans who would be required to obtain medical coverage under Baucus' health care overhaul legislation.

by James Oliphant and Mike Dorning

Poor Roland Burris.

The guy just can't buy a break right now.

The embattled senator just emerged from his hour-long meeting with Sen. Dick Durbin, the Senate Majority Whip and the senior senator from Burris' state of Illinois. Durbin wanted to hear Burris' explanation of his ties to disgraced former Gov. Rod Blagojevich for himself.

At the end of the session, Burris tried to sneak out through the side door in Durbin's third-floor office in the Capitol. Unfortunately for him, Chicago reporters who have covered Durbin know about the door, which leads almost directly to an elevator.

That meant that when a young aide emerged from Durbin's office and hit the "down" button, some in the press corps staking out the meeting knew what was up. Burris emerged and was quickly cornered by a handful of reporters in front of the elevator.

Burris said he had a "good discussion" with Durbin, but would not elaborate.

Then for a few long moments, he stood there, alone, and said nothing, perhaps setting some kind of record for the longest a senator has ever stood in the Capitol without saying anything.

Burris looked plaintively at the indicator light above the golden elevator doors. The car was still two floors below. You could almost hear him crying "Come on!"

More questions. He finally said he was "under orders" not to talk about the meeting.

"Under orders from who, sir?" someone asked.

"My lawyer," Burris said.

A trader with now-defunct Lehman Brothers watches the stock market plunge last September. (David Karp/AP)

by James Oliphant

For weeks, President Obama has been pushing hard on his plan to revive the nation's economy, driving the $787-billion stimulus package through Congress, following up with a plan for homeowners facing foreclosure and readying a strategy for reviving the moribund credit system.

But on one crucial piece of his overall strategy, Obama and his economic team have kept a relatively low profile: an overhaul of the federal regulatory system that sets and enforces the rules under which banks, hedge funds, stockbrokers and the rest of the nation's financial institutions must operate.

Of all the elements in Obama's strategy, regulatory reform could be the toughest -- and take the longest time to achieve.

The White House and Capitol Hill Democrats are separately developing the new framework for the sprawling and increasingly complex financial services industry, a step many experts view as essential for preventing future disasters.

Many factors contributed to the meltdown that struck Wall Street last year, to such calamities as the demise of investment bank Lehman Bros. Holdings and to the emergency bailouts that kept Citigroup and American International Group from collapsing as well.

But there is widespread agreement that an outdated regulatory system and lackluster oversight by watchdog agencies also played roles in bringing on the crisis. And in political terms, persuading Congress to pony up more money to support the financial system -- which many experts believe will be necessary -- will be nearly impossible without new safeguards.

Although many agree on the shortcomings of the current system, devising and winning agreement on a new one present a thicket of challenges, from overcoming industry opposition and defusing turf wars among federal agencies to striking a balance between protecting consumers and encouraging growth in finance and the economy as a whole.

"The challenge is going to be separating politics from policy," said Scott Talbott, the lead lobbyist for the financial services industry in Washington.

Read about the push to reform the nation's financial services industry in Monday's edition of the Los Angeles Times.

by James Oliphant

An effort to curb executive pay at the nation's most troubled banks, inserted at the last minute into Congress' mammoth economic stimulus bill, has sparked an outcry from financial services groups and others who warn the caps could harm the government's efforts to revive the economy.

During final negotiations on the $787-billion package last week, Senate Banking Committee Chairman Christopher J. Dodd (D-Conn.) slipped in a provision to limit bonuses for executives at institutions receiving government bailout funds to a third of their salaries. And the bonuses could be paid only in stock irredeemable until the government was paid back in full.

President Obama is expected to sign the stimulus into law Tuesday in Denver. But the White House and Senate Democrats could clash later over the executive pay caps if the White House seeks a legislative adjustment.

The limits go beyond those advocated by the Treasury Department and came as a surprise to Wall Street. Financial services experts are particularly troubled that the caps apply not just to senior executives but to traders, investment bankers, fund managers and others compensated largely through performance-based commissions.

Dodd's provision also would apply to the more than 350 firms that have received money from the Troubled Asset Relief Program launched by the Bush administration in the fall. It would affect senior executives and as many as 20 of the highest-paid employees of a participating firm.

"We expected compensation restrictions on TARP company executives, but not on the sales force," said Scott Talbott, head of government affairs for the Financial Services Roundtable in Washington.

by James Oliphant

Flip to the Senate channel on C-SPAN tonight and you are likely to see an empty chamber. There is probably more arresting television to be found.

Technically, the body is still voting on the economic stimulus package, but a almost all senators cast their votes over an hour ago. The final tally, however, is being held open tonight so that Sen. Sherrod Brown of Ohio can fly to back to Washington from Ohio, where he was attending a memorial service for his mother.

The White House dispatched a military jet to fly Brown from Cleveland to Washington--and he is expected to cast his vote later tonight. (Add that to the stimulus price tag.) Brown's vote is critical to give Democrats the 60-vote majority they need to avoid a filibuster and pass the massive bill. Three Republicans voted for the measure.The House passed the bill earlier today.

You might wonder why some other Republican, such as, for example, Brown's colleague from Ohio, Sen. George Voinovich, doesn't simply agree to vote for the package to save everyone the trouble. But such is the atmosphere in Washington right now that no one wants to break party ranks on a vote this large--even if, in the end, the measure is going to pass.

by James Oliphant and Janet Hook

Just about anyone connected with the $789 billion economic stimulus bill has agreed that it won't begin to fix the nation's broken economy over night. But just how soon can Americans begin to feel its benefits, and when will we know whether it's working?

After all, the scale of the legislation is so huge and its provisions so diverse that its effects could potentially be felt in almost every corner of American society -- from small businesses and major industries to individuals in their varied roles as workers, taxpayers, and consumers.

And that means the impact of the bill, which is expected to win final approval by Congress today, will be felt almost immediately -- and for months and years to come.

Like a time-release capsule, the plan's provisions will move into the nation's economic bloodstream in stages. A majority of Americans should see more money in their pockets quickly, as a result of tax cuts designed to reduce withholding and fatten take-home pay. Investments science, basic research and moving toward the so-called "green economy" may not yield sizable benefits for years, if not decades.

by Noam N. Levey

First-time home-buyers would get a larger tax break. Laid-off workers would receive higher unemployment benefits and new subsidies for heath insurance.

And all but the wealthiest workers would soon get a tax credit worth as much as $800 per couple.

Bigger government checks -- long favored by lawmakers in an ailing economy -- could soon begin landing in mailboxes across the country, and new tax breaks would be available to many families, if the economic stimulus package clears Congress this week.

The $789-billion compromise worked out by House and Senate negotiators Wednesday contains a long list of new ways that Americans can get money from Washington as they struggle through the worsening recession.

Below are some provisions of the bill, which must still be approved by the House and Senate before being sent to President Obama for his signature.

Taxpayers

For most Americans, aid would show up most directly in a simple tax credit.

Workers making less than $75,000 a year would get a $400 credit for 2009 and 2010. Couples making up to $150,000 would get $800.

Higher-income taxpayers would see smaller credits. Individuals making more than $100,000 a year and couples making more than $200,000 would not get the credit.

In addition, 24 million middle-income Americans would be spared from paying higher income taxes under the alternative minimum tax.

The tax was originally designed to apply only to the wealthiest Americans, but it was never indexed for inflation, so larger numbers of taxpayers have been required to pay it.

by James Oliphant and Richard Simon

Congressional staffers worked overnight putting the finishing touches on the sprawling compromise stimulus bill that Democrats hope can be passed and signed into law by President's Day.

House and Senate Democratic leaders reached agreement Wednesday on a $789-billion economic recovery bill that President Obama has called crucial to pulling the country out of its worst financial crisis since the Great Depression.

The bill, slimmed down and reworked to win the handful of GOP votes needed to ensure final approval by the Senate, would finance a flurry of infrastructure and construction projects, extend unemployment benefits, subsidize healthcare coverage for those out of work, and provide tax relief for many. Democrats say it will create or preserve 3.5 million jobs nationwide. The House could vote on the bill as soon as today, and the Senate shortly after, but the precise wording of the massive bill was still being hashed out late Wednesday night and early Thursday.

Republicans lined up early against the bill, saying it was bloated with unnecessary government spending programs, featured too few tax cuts and would substantially increase the national debt. Until the three GOP moderates defected late last week, it remained possible that the minority would be able to delay the bill from moving forward and perhaps force radical changes.

Some Democrats complained that the package was not big enough but said they had no choice but to accept it if the measure was to win the votes of deficit-minded senators. The stimulus package was the first major initiative of the Obama administration and a crucial first step in its plan for reviving the nation's troubled economy.

"There is no choice here, colleagues," Senate Finance Committee Chairman Max Baucus (D-Mont.) told fellow senators gathered in an ornate room in the Capitol to seal the deal. "We must enact this legislation to get jobs in this country."

The agreement came faster than many on Capitol Hill expected, but it didn't arrive without moments of high drama.

by James Oliphant and Richard Simon, and updated

Senate leaders said today that negotiators have struck a deal on a final version of a sweeping economic recovery package. If true, the bill could be sent to the president for his signature by the end of the week.

The new plan is budgeted at $789 billion, a figure about $50 billion less than the one attached to the Senate bill that passed Tuesday, they said.

However, there was no confirmation of the agreement from House leaders, including Speaker Nancy Pelosi's office -- and there were reports that some Democrats in the House were unhappy with the compromise.

A formal conference committee session involving House and Senate negotiators was postponed while details of the agreement were being worked out in Pelosi's office late Wednesday afternoon, with House members pushing for more money for school construction and modernization.

"I think we're moving very rapidly toward making an announcement of a deal," Nadeam Elshami, a spokesman for Pelosi, told a group of reporters camped outside the speaker's office.

Senate leaders this afternoon said that several House provisions were added to boost job creation, but the overall cost of the bill was trimmed, largely by adjusting some tax provisions and scaling back the reach of some Medicaid funding.

Senate Majority Leader Harry Reid (D-Nev., pictured here in an AP photo by Susan Walsh) said the compromise version "creates more jobs than the original Senate bill and spends less than the original House bill." The original Senate bill was valued at $838 billion; the cost of the House package was estimated at $819 billion.

House Democrats succeeded in restoring some funds that were stripped out by a group of Senate moderates last week, including $54 billion in aid to struggling state governments and $10 billion for school construction and modernization. Both line items were important to the White House, which appeared to take a leading role in pushing the parties to an agreement in last 24 hours.

The bill, as it stands now, looks cleared for passage. The small cadre of moderate Republicans who supported the $838 billion Senate bill, Sens. Susan Collins and Olympia Snowe of Maine and Arlen Specter of Pennsylvania, said Wednesday they will support the compromise agreement. They, along with some moderate Democrats, had suggested that if the bill deviates too much from the Senate package, they will not vote for it.

"This is obviously a very difficult vote," Specter said. "But I believe it is indispensable that strong action be taken."

by James Oliphant

Sometimes, Saturday Night Live is worth a thousand words of political analysis.

The latest exhibit: last night's show. In the opening, Fred Armisen playing Senate Majority Leader Harry Reid and Kristen Wiig playing House Speaker Nancy Pelosi detail their different approaches to the stimulus. The differences between the two Democrats are played for laughs, but the jokes aren't off the mark.

Where Reid must seek some Republican support to avoid a filibuster--witness his negotiations last week with a handful of moderate senators from the other party--Pelosi has the votes to simply ram anything she wants through her chamber. With the stimulus, she did just that, failing to secure a single vote from the GOP. The speaker clearly believes Democrats have a mandate after last year's elections and she isn't hesitating in acting on it.

Now the two versions of the stimulus bill must be reconciled--and in the end, perhaps to Pelosi' dismay, that small bloc of Republican moderates may hold the power to make or break the package.

Check it out above.

by James Oliphant

CAPE CORAL, Fla.--Jim Burch is a proud man from a proud town. But it has come to this.

"It breaks my heart to say we need help," he says.

This sprawling city on Florida's southwest coast values its tradition of not relying on government aid, of preferring to be left alone. That practice had sustained it through periods of dramatic growth.

But when the Florida housing market collapsed, Cape Coral tumbled with it. You can now buy a nice home near the water here for just over $100,000--70 percent less than it would have cost a few years ago. Unemployment has spiked over 10 percent largely because of the loss of construction work.

For Burch, the mayor of Cape Coral, the economic stimulus being debated in Congress might be a godsend. It could mean millions of dollars for work projects and thousands of jobs. For one thing, the city could re-start its upgrade of its sewer and water systems. The project stopped halfway through several months ago when the city ran out of funds for it--and more than a thousand jobs went away with it.

But to Burch's consternation, his representative in Congress, Connie Mack IV, voted against the $819 billion stimulus package last week in the House. Now the bill is bogged down in the Senate as Democrats and Republicans try to slash spending provisions in an effort to make the legislation more politically palatable.

By Andrew Zajac

The Government Accountability Office has churned out another report on the federal government's controversial Cuba broadcasting program and this one is similar to many previous negative reviews.

The document's bland title "Broadcasting to Cuba. Actions Are Needed to Improve Strategy and Operations", does not do justice to its sharply critical message, which can be distilled thusly:

--Few, if any Cubans, see U.S. government-sponsored programming beamed by the Office of Cuba Broadcasting through Radio and TV Marti.

--The quality of programming leaves much to be desired both in entertainment content and in meeting journalistic standards.

--This is a lousy use of tax money.

You can read the entire report here: GAO-Cuba.pdf

by Jim Tankersley

The Senate quickly confirmed seven of President Obama's cabinet nominees this afternoon, mere hours after the Inauguration - but it left many more, including Hillary Clinton, to wait at least another day.

Among those winning approval by unanimous consent: Interior Secretary Ken Salazar; Energy Secretary Steven Chu; Education Secretary Arne Duncan; Homeland Security Secretary Janet Napolitano; Peter Orszag, director of the Office of Management and Budget; Eric Shinseki, the secretary of Veterans' Affairs; and Agriculture Secretary Tom Vilsack.

Secretary-of-State-nominee Clinton was originally expected to make that list, but Sen. John Cornyn (R-Texas) held her up by a day over conflict-of-interest objections to her husband, former Bill Clinton, and his charitable foundation's foreign donors.

Others who face a more protracted process include Labor nominee Hilda Solis, Treasury nominee Timothy Geithner, Attorney General nominee Eric Holder and Transportation nominee Ray LaHood. Obama also still needs tp nominate a commerce secretary pick to replace Bill Richardson, who withdrew from consideration amidst a scandal in his home state New Mexico.

Most observers expect all of Obama's nominees to eventually win confirmation. Senate Majority Leader Harry Reid (D-Nev.) urged as much in a statement this afternoon.

"President Obama has nominated a cabinet of exceptionally bright and capable people," Reid said. "They represent a cross-section of our country, geographically and politically. It is up to us, Democrats and Republicans in the Senate, to confirm these worthy nominees quickly so that they, along with our new President, can hit the ground running."

By Jim Tankersley

For all the fire they can spit on C-SPAN, ranting about procedure or policy, the truth is that most United States senators are exceedingly polite to one another in public. Friendly, often.

Every once in a while - like, say, when a sitting member of a senate committee appears before that committee for a hearing into his pending nomination to a cabinet post - you get, in the words of one participant, "a full-fledged bouquet-tossing contest."

And oddly enough, a few nuggets of policy plans.

That's the scene this morning in a meeting of the Senate Energy and Natural Resources committee, which is quizzing committee member Sen. Ken Salazar (D-Colo.) on his nomination to be Interior Secretary under President-elect Barack Obama.

Republicans and Democrats have repeatedly told Salazar how much they admire his integrity and how they'll miss him when he leaves the Senate. They've called him brother, professed their love, and invited him to visit their states (and, in the case of Sen. Mel Martinez of Florida, offered to arrange for him to wrestle alligators in the Everglades).

"I think Mel just probably left to go buy you flowers," Sen. Richard Burr (R-N.C.) joked after Martinez called Salazar a "good friend." This after Sen. Ron Wyden (D-Ore.), made the crack about bouquet tossing.

By Jim Tankersley

Barack Obama has pitched his stimulus package as a quick jolt for the ailing economy and a "down payment" on his priorities as president. But those goals appear to be colliding in at least one key area: energy independence.

The stimulus plan increasingly appears unlikely to include major investments in so-called "green infrastructure" - the wires and rails that could deliver renewable energy to Americans' homes and help them kick their gasoline addictions - according to alternative-energy advocates who are discussing the plans with the Obama transition team.

It's a timing issue. The blueprints and, in many cases, the authority simply don't exist to lay miles of high-speed rail lines, or to build a sprawling web of new power lines to create a truly national electric grid.

"Before you spend billions of dollars on new lines, you have to spend millions of dollars on design work," said Michael Moynihan, the green project director of the liberal think tank NDN, who has worked extensively on green infrastructure and the stimulus. "Nobody had been thinking about this much money (becoming available). So the planning just has not been done."

by Jim Tankersley, and updated

Only on Capitol Hill - and maybe an elite physics department near you - does a Nobel-winning scientist garner round-the-corner lines, an overflow crowd and a cascade of flashbulbs when he steps out in public.

That was the reception this morning for Steven Chu, the physicist and director of the Lawrence Berkeley National Labratory, when he showed up in a Senate committee room this morning for a hearing on his nomination as Barack Obama's energy secretary.

Hillary Clinton may have the bigger star power in the confirmation world today, as she prepares for a committee grilling on her nomination as secretary of state. But here in the Dirksen Senate Office Building, packed with energy lobbyists and non-profit executives, Chu is the one basking in a warm, bipartisan welcome.

Sen. Jeff Bingaman (D-N.M.), who chairs the energy committee, opened the floodgates of praise for Chu's academic and scientific record, saying he uniquely possesses "the vision and insight necessary to forge an energy policy for the 21st century."

The committee's top Republican, Sen. Lisa Murkowski of Alaska, told Chu "It's probably fair to say that you are uniquely poised in your ability to bring with you your background that relates the science and the technology" of the energy department.

Chu's home state senators, Barbara Boxer and Diane Feinstein of California, were equally effusive: "Simply stating, in my opinion," Feinstein said, "there is no one brighter or more equipped than this man to become secretary of energy."

Chu may face at least mildly tougher questioning later, when committee members get a chance to question him on energy policy, nuclear weapons stockpiles and the Obama Administration's plans for global warming, among other topics.

by Jill Zuckman

Roland Burris won his battle to succeed Barack Obama as the junior senator from Illinois this afternoon as Senate Democratic leaders dropped their objections and said they expect him to be seated this week.

The agreement came after Senate lawyers said Burris met the chamber's rules and could be sworn in.

"Barring objections from Senate Republicans, we expect Senator-designee Burris to be sworn in and formally seated later this week," said a joint statement from Senate Majority Leader Harry Reid and Assistant Majority Leader Dick Durbin.

The Senate Democratic leaders had told Burris last week that he needed to testify before the Illinois House impeachment committee about his relationship with Gov. Rod Blagojevich and submit a signature from Illinois Secretary of State Jesse White certifying his appointment by Blagojevich.

"We have spoken to Mr. Burris to let him know that he is now the Senator-designate from Illinois and as such, will be accorded all the rights and privileges of a Senator-elect," said the joint statement.

by James Oliphant

Another Senate Republican is hanging them up.

Sen. George Voinovich of Ohio announced to day that he will not seek reelection in 2010. His retirement comes on the heels of the announcement last week from Sen. Christopher "Kit" Bond (R-Mo.) that he, too, will not seek reelection.

Sens. Mel Martinez (R-Fla.) and Sam Brownback (R-Kan.) have already said they won't return. The 2010 election cycle now looks to be increasingly competitive. Both Missouri and Ohio have shifted in the Democrats' direction in recent years. Ohio elected Sen. Sherrod Brown, a Democrat, in 2006.

Voinovich said he wants to focus on the problems facing the nation.

"In my lifetime of public service, I have never seen the country in such perilous circumstances," Voinovich said in a statement Monday. "Not since the Great Depression and the Second World War have we been confronted with such challenges, as a nation and as a world. Those of us that have been given the honor to serve in these times must step up to the plate and put this country on a course that will see it through these harrowing times and make it strong and viable for the 21st century."

While perhaps not the most dynamic member of the Senate, Voinovich has been a reliable centrist and has long been popular in the Buckeye State. A two-term governor, he also served as Cleveland's mayor. He was elected to the Senate in 1998.

by Mark Silva

How much pressure will there be on Congress to enact an economic stimulus plan swiftly? House Speaker Nancy Pelosi says there will be no congressional recess for the Presidents' Day holiday if they haven't finished work by then.

So, basically one month to enact a $775-billion booster-shot for the American economy, a price-tag which President-elect Barack Obama acknowledges may well grow once Congress gets its hands on the recovery plan he is proposing.

This is what Pelosi (D-Calif) said in an interview with PBS' Jim Lehrer aired this evening on The Newshour.

The plan is "to go through the... president-elect's proposal, have Congress work its will on it, and have it signed, sealed, and delivered for the American people before we leave the Presidents' Day recess,'' Pelosi said.

"That is your deadline?'' Lehrer asked.

"That is my deadline,'' the speaker said, "and if we do not have agreement and a bill by then, we won't have a recess. We cannot leave here without an economic recovery package for the American people, because, as the President-elect has said, the consequences are very severe. We lose 500,000 jobs a month -- a month, so this is long overdue. We begged President Bush to take action. The recession has only deepened. We must act, and we must act now.'

See the full transcript of the interview, courtesy of PBS

by Jim Puzzanghera

President-elect Barack Obama today asked Congress to delay next month's planned switch to all-digital broadcast television, warning that the TVs of millions of Americans could go dark because of major problems in the government's preparations.

In a letter to Congressional leaders, John Podesta, co-chairman of Obama's presidential transition team, urged that the Feb. 17 conversion date be extended. A major reason was the announcement this week by the Commerce Department that it had run out of money for a government program to provide $40 coupons for low-cost converter boxes to allow older TVs to receive the new digital signal. But Podesta also cited problems with the government's effort to educate the public about the switch and help prepare people, particularly the elderly, poor and those living in rural areas.

"With coupons unavailable, support and education insufficient, and the most vulnerable Americans exposed, I urge you to consider a change to the legislatively-mandated analog cutoff date," Podesta wrote to the chairmen and top Republicans on the Senate Commerce committee and the House Energy and Commerce committee.

Congress decided in 2005 to require all TV stations to broadcast only in digital to free up valuable airwaves. People with cable, satellite or phone company TV services will continue to get broadcast stations. But those who rely on antennas to watch TV must have either a newer set with a digital receiver or get a digital-to-analog converter box.

by James Oliphant

Senate leaders will announce Thursday an agreement with Citigroup in which the financial giant will throw its support behind legislation that allows homeowners in bankruptcy to modify the terms of their mortgages.

The provision has been long sought by Democrats as a means to give homeowners who are "underwater"--who owe more money on their homes than they are worth--the means to strike a more favorable deal with banks.

But giving bankruptcy judges the power to "cram down" mortgages has been strongly opposed by congressional Republicans and mortgage lenders, who say that it would make providing loans riskier and, because of that, reduce the amount of credit available to buyers.

The measure was termed a deal-breaker in last fall's $700 billion Wall Street bailout bill and was left out of the final package. But Citigroup's about-face suggests momentum is building to include the mortgage provision in the economic stimulus package under development in Congress.

"This is the breakthrough we've been waiting for," said the bill's sponsor in the Senate, Sen. Dick Durbin (D-Ill.) "They can make a big difference in convincing their fellow institutions to join us."

by Frank James

Don't get rid of those old analog televisions yet. The national transition to digital television was supposed to occur next month on Feb. 17. But some key members of Congress and the Obama presidential transition may engineer a delay of a few months because of problems in the transition.

There's been growing concern that the Federal Communications Commission has mishandled the roll-out in a way that could potentially leave millions of viewers with analog TVs unconnected to cable without the ability to get a signal.

The problem is a backlog in the federal program that provides coupons to the TV owners to offset the cost of converter boxes that will be needed by analog TVs to receive a signal once TV broadcasters completely change over to transmitting digital signals alone.

According to Broadcasting and Cable magazine's website:

Consumers Union (CU) late Wednesday asked the heads of the congressional committees with telecommunications oversight, as well as the current and future administrations, to consider delaying the Feb. 17, 2009 transition date.

In a letter to Rep. Markey, Rep. Henry Waxman (D-Calif.), the incoming chairman of the House Energy and Commerce Committe, and others, the CU requested that Congress consider a delay "until a plan is in place to minimize the number of consumers who will lose TV signals, particularly by fixing the flaws in the federal coupon program created to offset the cost of this transition."

by Frank James

President-elect Barack Obama is due to make a major speech on the economy today at George Mason University in Northern Virginia just outside Washington, D.C.

It is essentially a call for support of what is expected to be a huge economic stimulus package he hopes to get enacted in the first few months of his presidency. He warns that if an economic stimulus isn't passed quickly enough, it may come too late to stave off a dramatic decline not of just the economy but the nation too.

His presidential transition office has released excerpts:

I don't believe it's too late to change course, but it will be if we don't take dramatic action as soon as possible. If nothing is done, this recession could linger for years. The unemployment rate could reach double digits. Our economy could fall $1 trillion short of its full capacity, which translates into more than $12,000 in lost income for a family of four. We could lose a generation of potential and promise, as more young Americans are forced to forgo dreams of college or the chance to train for the jobs of the future. And our nation could lose the competitive edge that has served as a foundation for our strength and standing in the world.

There is no doubt that the cost of this plan will be considerable. It will certainly add to the budget deficit in the short-term. But equally certain are the consequences of doing too little or nothing at all, for that will lead to an even greater deficit of jobs, incomes, and confidence in our economy. It is true that we cannot depend on government alone to create jobs or long-term growth, but at this particular moment, only government can provide the short-term boost necessary to lift us from a recession this deep and severe. Only government can break the vicious cycles that are crippling our economy - where a lack of spending leads to lost jobs which leads to even less spending; where an inability to lend and borrow stops growth and leads to even less credit.

Jack Kemp, right, at a National Commission on Fair Housing and Equal Opportunity hearing at Access Chicago on Tuesday, July 15, 2008. He was accompanied by fellow former HUD secretary Henry Cisneros. (Chicago Tribune photo by Tom Van Dyke.)

by Frank James

Jack Kemp, the former congressman, Housing and Urban Development secretary and vice presidential running mate to 1996 for Republican presidential nominee Bob Dole, has cancer -- though details on the type of cancer haven't been made public.

Before Kemp entered politics, he was the star quarterback for the Buffalo Bills.

The Associated Press reports a statement was issued by his office. According to the AP:

The 73-year-old Kemp said he will continue to serve as chairman of his Washington-based Kemp Partners consulting firm and will remain involved in charitable and political work.

"He's a tough guy, of deep faith, and his multitudes of friends are praying for the best," Dole said today.

by Mike Dorning

Senate Majority Leader Harry Reid opened a potential path to seating Roland Burris in the Senate after a 45-minute meeting with the former Illinois attorney general at the Capitol this morning.

After days in which Senate leaders had demonstrated determined resistance to Burris's appointment to the Senate by scandal-tainted Illinois Gov. Rod Blagojevich, Reid praised Burris as "candid and forthright." And he suggested that testimony which Burris is to give before the state legislature's impeachment committee on Thursday could be crucial to his prospects of gaining the seat.

"He's going to go answer any other questions they might have. He's not trying to avoid any responsibility and trying to hide anything," said Reid (D-Nev.) "Once that's done, we'll be in a different position and see what we are going to do."

One Democratic aide said the Senate leadership's attitude toward the appointment had now "thawed."

Still, citing a Senate rule, Reid said the Senate would not seat Burris until his certificate of appointment is signed by Illinois Secretary of State Jesse White. White has declined to sign the certificate but Burris has gone to court to seek an order requiring White to certify the governor's appointment.

Reid said he still would ask a Senate committee to examine the circumstances surrounding the appointment before Burris is seated but said he hoped the process would move swiftly.

"There's going to come a time when the entire Senate is going to have to act on this, and that day I hope would come sooner rather than later," Reid said.

Burris's appearance at the opening of the Senate session and the refusal to seat him stirred saturation media coverage, eclipsing efforts by Democrats to promote their economic stimulus plans.

On Tuesday, an influential Democrat, Sen. Dianne Feinstein (D-Calif.) broke with the Senate leadership and urged them to seat Burris.

By Jim Tankersley

You can't cross a street in Washington these days without bumping into someone with a 12-point set of recommendations for President-elect Barack Obama and the massive economic stimulus plan he and Congressional leaders are drafting. And now that Congress is back in session, some of those plans are making their way into the public record - and key lawmakers' ears.

To wit: The Senate Environment and Public Works committee convened a briefing in a Senate hearing room this morning, on the topic of "green" investments and their role in economic recovery.

Testifying before a crowd of fawning Democratic senators were a pair of hot names in energy circles: New York Times columnist Thomas Friedman, author of "Hot, Flat, and Crowded: Why We Need a Green Revolution - and How It Can Renew America," and clean energy venture capitalist John Doerr, whose track record includes investments in Google and Amazon.com.

Both men called clean energy development the solution to America's economic, environmental and national security challenges. They urged major tax incentives to help speed renewable technologies to competitiveness and big spending to build an infrastructure to carry renewable energy from the wind turbines and solar panels that produce it to the cities and suburbs that consume it.

by Frank James

Mark Brown, the Chicago Sun-Times columnist, argues President-elect Barack Obama should either tell Roland Burris directly, or have some tough-talking emissary (Rahm Emanuel perhaps), tell the senator-in-limbo to end his bid to be seated in the Senate.

Obama doesn't want to do that. He's got bigger fish to fry and would prefer to stand pat with what he's already done, which was to issue a statement from a safe distance saying Burris is a great guy but agreeing the Senate shouldn't accept an appointment made by a governor accused by federal prosecutors of selling the very same seat. While that was helpful, it's not enough. We need Obama's direct intervention.

But we're in a bind here, one created in part by Obama's run for president. He bears some responsibility.

by Frank James

Democrat Roland Burris should be seated by the Democratic-controlled Senate, says the highly regarded lawyer Walter Dellinger, who headed the Justice Department's Office of Legal Counsel in the Clinton Administration.

He makes the same logical case many others have. It boils down to the law is the law. An excerpt from his New York Times op-ed:

The Constitution's text is simple enough: "Each house shall be the judge of the elections, returns and qualifications of its own members." Since no one disputes that Mr. Burris, a former Illinois attorney general, possesses the constitutional qualifications of age, residency and citizenship, the remaining issue is whether the Senate can adjudge Mr. Burris not to have been properly appointed. Although federal prosecutors are seeking a corruption indictment of Mr. Blagojevich, he is in fact still the governor. The charges that he sought bribes to appoint certain candidates to the Senate do not automatically render illegal other official acts of his office like signing laws or pardoning criminals. And because there is no evidence that a bribe was solicited from, or proffered by, Mr. Burris, his appointment is presumptively lawful.

Postponing the decision until Mr. Blagojevich's removal and replacement by the lieutenant governor is not a clean solution either. Mr. Burris will argue that if his appointment was valid, Illinois law entitles him to the seat until the 2010 election. In his view, there would be no vacancy for the new governor to fill. Having two rivals, one appointed by each governor, disputing who is the rightful senator might be the worst possible outcome.

By Jim Tankersley

The U.S. Chamber of Commerce will urge Congress this morning to invest heavily in so-called "clean coal" research, to expand incentives for nuclear energy and renewable fuels, and to keep its hands off domestic oil and gas drilling.

The powerful business group will host its annual "State of American Business" speech this morning in Washington, and this year, the event is focused squarely on America's top problem: how to reignite the domestic economy.

The plan Chamber officials are set to unveil includes several energy-themed pieces. And it urges caution on what is shaping up to be a top priority for the incoming Obama Administration: cracking down on carbon emissions to fight global warming.

by Frank James

A lot of people who checked out the House hearing yesterday on Bernard Madoff's alleged Ponzi scheme probably got a little confused by something Rep. Gary Ackerman of New York said.

Ackerman, a Democrat, was castigating the Security Investors Protection Corp. chief executive and other government officials for not doing enough to protect investors when he said:

I'm trying to figure out what we got here. We got the president of the Securities Investor Protection Corporation, who's been that for the last six years. Security investor protection, it seems to me, hasn't protected any of the security investors.

And we have the inspector general of the Securities and Exchange Commission, which is the inspector of the watchdog agency that didn't watch out for anything, which makes you the Jacques Cousteau of the Keystone Kops.

That was a real head scratcher.

Jacques-Yves Cousteau was, of course, the world-renowned French ocean expert and co-developer of the aqualung who took us below the surface of the world's seas to reveal their wonders. Try as I might, I couldn't puzzle through what Ackerman was driving (or diving?) at with the Captain Cousteau reference.

by Mike Dorning and Mark Silva

Roland Burris of Illinois, rejected in his attempt to take a new seat in the Senate this morning, averted any public showdown by quietly accepting the refusal of his credentials inside the Secretary of the Senate's office on the third floor of the Capitol.

"My name is Roland Burris, the junior Senator from the State of Illinois," Burris told reporters later as he stood in the rain in a park outside the Capitol. "I was advised that my credentials were not in order."

The former attorney general of Illinois said he would take legal action, challenging the Senate's refusal, but averted any showdown at the door of the Senate chambers. "I am not seeking to have any kind of confrontation," Burris added.

Off the Capitol grounds where his entry to the Senate had been refused, Burris was left to his own - the Capitol police who had escorted him away from the Capitol leaving him to a press conference in the park.

A podium was set up in a park across the street from the Capitol outside the Russell Office Building.

Timothy W. Wright, a lawyer for Burris, said: "We have presented our credentials to the Secretary of the Senate... Our credentials were rejected by the secretary... We were not allowed to proceed to the floor... '' He, too, vowed to fight the case.

Burris got into a silver minivan with Massachusetts plates at 11:03 am EST and drove away. It was an Odyssey.

* * * *

Roland Burris patted a Capitol police officer on the back as officers escorted him through a throng of media outside, with a soft rain falling on the crowd this morning, after Burris left the office of the Secretary of the Senate where his credentials as the new senator from Illinois had been rejected.

Terrance Gainer, sergeant at arms and an old friend from Illinois, had escorted Burris in and out of the private rejection. (Pictured at left in photo below by Mark Wilson / Getty Images)

Two Capitol police cleared a way for Burris through a crowd of photographers.... "OK, clear it out... I don't want anyone in front of me,'' one officer called out.

Burris stopped to sign a photograph for a homeless man in a wheelchair. The man said, "Thank you very much sir.'' Burris shook his hand and said, "Thank you.''

Burris, too, was without a home this morning.

* * * *

The rejected Roland Burris was escorted outside the Capitol surrounded by media - stopped by the arrival of the motorcade of the vice president-elect, Joe Biden.

It was raining outside.

"We've been dripped on before,'' Burris said, while waiting (photo below by Charles Dharapak / AP).

* * * *

Presenting his credentials in a third-floor Capitol room where he could not be seen by the media, Roland Burris was on a floor where press photography is prohibited.

There would be no visual image of the Senate's rejection of the disputed appointee from Illinois, whom Senate leaders refused to seat because of the "cloud" surrounding the Illinois governor who appointed him.

But Burris - appearing calm, and accepting no questions -- left the secretary's office at 10:50 am EST escorted by the sergeant at arms, ushering him to an elevator as Capitol police barred photographers from snapping shots

They were saying that Burris would hold a press conference outside the Capitol .

* * * *

A determined Roland Burris entered the Secretary of the Senate's office on the third floor of the Capitol this morning to present his credentials. The media were gathered around the corner - several abreast stretching down the hallway, held back by Capitol police.

Terrance Gainer, the sergeant at arms who would be charged with blocking Burris at the Senate chambers door if necessary, escorted him into the office. The secretary's office is one floor above the entrance to the Senate chambers.

Leaders have been negotiating what Burris will do today - and there was some word that Burris might accept his rejection in the secretary's office. Guards initially had been told they were to treat Burris as they would a senator, easing his path through the Capitol entrance, but were later told to take him through security as any visitor.

"We've been back and fourth four times,'' a Democratic aide said of the choreography of the morning -- see how it all started, below the jump:

by Frank James

Reports that President-elect Barack Obama intends to make Leon Panetta director of the Central Intelligence Agency not only surprised some key Capitol Hill Democrats but left them questioning the former congressman and Clinton Administration official's bona fides for the post.

For instance, Sen. Dianne Feinstein of California, who will be the new chair of the Senate Intelligence Committee, didn't sound pleased. As CNN reported:

(CNN) -- Sen. Dianne Feinstein, the Senate's incoming Intelligence committee chair, slammed President-elect Barack Obama's choice of Leon Panetta as director of the CIA Monday.

"The President-elect will now have a chance to make his arguments," the spokesman said. "Her next move is to listen."

by Frank James

Minnesota's state canvassing board today certified that former comedian Al Franken, a Democrat, outpolled Sen. Norm Coleman, the Republican incumbent by 225 votes.

But the Coleman forces aren't about to give up. Here's an excerpt from a statement by Coleman for Senate counsel Tony Trimble:

The actions today by the Canvassing Board are but the first step in what, unfortunately, will now have to be a longer process. This process isn't at the end; it is now just at the beginning. We will contest the results of the Canvassing Board -- otherwise, literally millions of Minnesotans will be disenfranchised.

While we appreciate the effort of this board to do the work, the reality is that any certification of vote totals at this point is only preliminary. As this Canvassing Board has recognized, there still exist serious problems with inconsistencies in the administrative recount, and therefore in the validity and reliability of the numbers certified today. There can be no count that is accurate or valid when 654 potentially valid absentee votes remain disenfranchised and when some votes are counted twice - leading to a violation of one of the most sacred principles of our constitution - "One person, One vote."

by James Oliphant

Rick Pearson and Ray Long are two longtime observers of the Illinois political scene. So when the two Chicago Tribune reporters wrote this week that Roland Burris, Gov. Rod Blagojevich's pick for the U.S. Senate, "has always maintained an outsized political ego even larger than that required of most politicians," you could likely take their word for it.

Or, if you desire some empirical evidence, take a look at this. Perhaps Burris does belong in Washington. He already has a monument.

The website Politico posted this earlier this week, a photo of a grave that Burris has built for himself at Chicago's Oak Woods Cemetery. If you look closely at the left side of the monument, you'll see a list of Burris' "major accomplishments."

Decide for yourself if being named to the Senate by Blagojevich falls within that category.

by Mark Silva

Sources in Albany are telling the Associated Press that Caroline Kennedy will probably be the governor's pick to replace Sen. Hillary Rodham Clinton of New York.

Gov. David Paterson, who maintains he's still thinking about it, is likely to settle on the daughter of the late President John F. Kennedy, two sources close to the governor tell the AP. "They believe Carline Kennedy will be his choice,'' the AP reports, "but the governor cautions he's still looking.''

The New York Times has reported that during the traditional New Year's Day open house at the executive mansion in Albany, Paterson invoked the words of a legendary baseball umpire, Bill Klem, in noting that: "It ain't nothin' till I calls it."

by James Oliphant and updated

In a statement released minutes ago, Senate Majority Leader Harry Reid said Democrats would not allow Roland Burris, Gov. Rod Blagojevich's apparent choice as Illinois' next senator, to be seated as a member of the Senate.

Reid's statement makes good on a threat issued two weeks ago by the Democratic Caucus, which will hold a commanding majority in the new Senate, that anyone named by the embattled Illinois governor would not be allowed to take office. The U.S. Constitution arguably grants the Senate the power to bar Burris from assuming the position. However, in the past, that power has been used in the past only when the senator in question was elected through fraud or corruption.

In this case, there is no evidence that Burris, a former state attorney general, figured in any way in Blagojevich's alleged scheme to leverage Barack Obama's vacated Senate seat for personal gain. And Burris would be been appointed, not elected. But Reid said Tuesday that does not matter.

"It is truly regrettable that despite requests from all 50 Democratic Senators and public officials throughout Illinois, Gov. Blagojevich would take the imprudent step of appointing someone to the United States Senate who would serve under a shadow and be plagued by questions of impropriety," Reid said. "We say this without prejudice toward Roland Burris's ability, and we respect his years of public service. But this is not about Mr. Burris; it is about the integrity of a governor accused of attempting to sell this United States Senate seat. Under these circumstances, anyone appointed by Gov. Blagojevich cannot be an effective representative of the people of Illinois and, as we have said, will not be seated by the Democratic Caucus."

On Dec. 17, citing the threat from Senate Democrats, Blagojevich's lawyer, Ed Genson, said the governor would not be making an appointment. Blagojevich apparently did not receive that memo.

Blagojevich is set to announce the appointment of Burris this afternoon, according to the Chicago Tribune. The question now becomes whether Burris will accept the appointment, and then whether he would choose to somehow challenge the Senate action. An Illinois state legislative panel is also determining Tuesday whether to recommend the impeachment of Blagojevich.

UPDATE: According to a Republican source, a GOP senator could, theoretically, prevent Democrats from refusing to seat Burris, should it come to that. That's because a dispute could end up before the Senate Rules Committee, which would produce a resolution either accepting or rejecting Burris. That could mean a floor vote, which, under Senate rules, could be filibustered. Senate Democrats will not have the required 60 votes to override a filibuster.

Why would a Republican want to help Burris, a Democrat, end up in the Senate and give the Dems another vote? Hard to say. But a 71-year-old Blagojevich appointee with little statewide name recognition could make for a tempting opponent for Republicans when a election to fill the seat comes around in 2010.

by James Oliphant

The leading Republican in the House, Rep. John Boehner, is beating the January rush and indicating some early opposition to President-elect Barack Obama's ever-growing economic stimulus plan.

Obama has called for a package that is likely to exceed $700 billion in an effort to revive the stalled economy. He hopes investment in rebuilding infrastructure and eco-friendly businesses will spark the creation or preservation of as many as three million jobs.

Boehner (R-Ohio), who will lead a diminished minority in the House after last fall's elections, doesn't sound ready to scale the package that large. In a statement released Monday, Boehner said:

"The American people are facing tough economic times, and they expect Washington to act - but we must act in a responsible way that helps get our economy moving again, not with more pork-barrel spending that does nothing but give taxpayers' money to special interests and campaign contributors. Republicans are prepared to work with the incoming Administration and with Democrats in Congress to craft legislation that will help our troubled economy."

"But now reports indicate that Congress may be asked to pass a bill spending as much as one trillion dollars of the taxpayers' money in January. If that is true, I hope that the Democratic Leadership will agree that such a massive piece of legislation should be debated in a fair, honest, and open way. To that end, I would ask the Democratic Leadership to guarantee that such a bill will not be brought to the floor of the House unless there have been public hearings in the appropriate committees, the entire text has been available online for the American people to review for at least one week, and it includes no special-interest earmarks."

"Polls show that the American people know that more irresponsible spending on government programs isn't what the economy needs. Now is the time for Democrats and Republicans to work together on reforms that will unleash America's economic potential and help our economy create jobs, and I hope President-elect Obama and the Democratic Leadership in Congress will keep their campaign promises to work with us in an open and bipartisan way."

Boehner is referring to a strategy often employed by House Speaker Nancy Pelosi that bypasses committee chairmen in favor of having House leadership assemble a bill and then present it to the chamber as a whole on the floor for a vote. However, Pelosi's office has said that several key committees will play prominent roles in crafting the stimulus plan. We'll see how it plays out when the curtain rises next week.

by James Oliphant

Rep. Rahm Emanuel will resign his House seat Friday.

Emanuel, set to serve as chief of staff to President-elect Barack Obama, sent a letter to Illinois Gov. Rod Blagojevich Monday indicating that he planned to step down at the end of the week. The new Congress will be sworn in on Jan. 6.

Unlike the case of Obama's vacated Senate seat, Blagojevich has no power to appoint Emanuel's replacement. Instead, state law gives Blagojevich five days to set a date for a special election to replace Emanuel once the seat is officially vacant. The election to fill the seat on Chicago's North Side must be held within 115 days. The governor will likely set a date for a primary election as well, although the state statute doesn't require that he do so.

Emanuel took a surprisingly personal tone in his missive to Blagojevich, considering the nature of his communication with the governor's office regarding Obama's successor has been the subject of intense scrutiny. "As sons of immigrants to this country," Emanuel wrote, "you and I have a deep appreciation for the opportunities America provides to those who are willing to work hard and sacrifice for their children."

In the letter, Emanuel made no reference to allegations that Blagojevich put Obama's Senate seat "up for sale" and made no suggestion that the governor should resign. Blagojevich, ironically, once held the same seat representing Illinois' 5th District.

A bevy of Chicago Democratic politicians have lined up to compete for Emanuel's seat.

Emanuel's staff said Monday that his offices in Chicago and Washington, D.C. will remain open following the congressman's departure to respond to constituents with questions or problems. Day-to-day management will be assumed by the House clerk's office.

by Frank James

Former comedian Al Franken has a negligible 48-vote lead over incumbent Sen. Norm Coleman in the contest for the Senate seat from Minnesota. He had led by about 250 votes at the end of last week.

If those election lawyers up there are billing by the hour, this should have a very good Christmas, at least for them.

As the Minneapolis Star Tribune reports, both sides still have plenty to fight over and the recount's outcome is far from certain, including the final disposition of 1,500 absentee ballots.

The only thing that appears safe to say is the counting will stop New Year's Eve because that's when the Minnesota Supreme Court said it would.

by Frank James

Bernard Madoff, Wall Street's alleged Ponzi king, made political donations to Washington types which evidently bought him some access in here.

But it appears he had a light footprint in the nation's capital and I haven't seen a story yet that indicates his money (or his clients' money perhaps) was able to buy him anything more than a returned phone call or invitation to appear at a hearing. Not saying that it didn't. Just haven't seen any evidence of that.

As Andy Zajac and Janet Hook of the Tribune's Washington D.C. bureau reported:

... For years, Madoff was a generous political donor to mostly Democratic causes and maintained a steady lobbying presence through the government relations firm of a former New York congressman.

"It's a bit odd," Baker said. "I was a big player on market data fees and electronic exchanges"--two of the issues that Madoff's lobbying firm, Lent Scrivner & Roth, listed as advocating on for the New York mogul. "I don't remember having a visit or a discussion on these matters with the firm."

by Frank James

It appears that a lot of money gets thrown at top bankers in good and bad times. Some Associated Press reporters examined the Securities and Exchange Commission filings of banks that received federal bailout money from the $700 billion Trouble Asset Relief Program.

An excerpt of what they found:

Banks that have their hands out in Washington this year were handing out multimillion-dollar rewards to their executives last year.

Some banks trimmed their executive compensation in the face of faltering performance that foreshadowed the current economic crisis, but they still granted multimillion-dollar packages. Benefits included cash bonuses, stock options, personal use of company jets and chauffeurs, home security, country club memberships and professional money management, the AP review of federal securities documents found.

Gov. Rod Blagojevich marches in the Indian community's Independence Day parade on Devon Avenue Aug. 16, 2003, in Chicago, with Raghuveer Nayak on his immediate left. (Alex Garcia/Chicago Tribune)..

by Frank James

We now know the Identity of the Rep. Jesse Jackson Jr. ally who mentioned in the federal criminal complaint against Gov. Rod Blagojevich as a Jackson "emissary" though the congressman has denied authorizing anyone to approach the governor about the vacant U.S. Senate seat. It's not exactly a household name.

According to a story by Chicago Tribune reporters David Kidwell and John Chase:

A key figure in Gov. Rod Blagojevich's alleged scheme to sell a U.S. Senate seat has sought immunity from federal authorities in return for his cooperation in their ongoing probe, the Tribune has learned.

Raghuveer P. Nayak, an Oak Brook businessman and political fundraiser, is the unnamed "Individual D" who prosecutors say was being squeezed by the governor for campaign cash in return for appointing U.S. Rep. Jesse Jackson Jr. to the Senate seat vacated by President-elect Barack Obama, sources said.

by Jim Tankersley

Barack Obama is done appointing his Cabinet. Now come the questions.

The Senate Environment and Natural Resources Committee announced today it will dive into confirmation hearings on Energy Secretary nominee Steven Chu and Interior Secretary nominee Ken Salazar. Chu's is scheduled for Jan. 13, a week after newly elected senators take office. Salazar's follows two days later.

Chu is a Nobel-winning physicist who directs the Lawrence Berkeley National Labratory. Salazar is a senator from Colorado and, technically, a member of the committee that will conduct his confirmation hearing. If you like the "Six Degrees" game, here's a quick academic link between the nominees: Chu is on extended leave from a professorship at Stanford University. One of Salazar's daughters is a Stanford undergraduate.

The committee press release hints at a fairly smooth ride for both men.

by Frank James

The Minneapolis Star Tribune has a useful widget on its website which provides the latest vote count in the Senate race between Republican incumbent Sen. Norm Coleman and challenger, Al Franken, the former comedian.

The current count has Franken leading by 266 votes, the first time he's been ahead. Franken received a boost yesterday when a court ruled that contested absentee votes had to be counted.

Just a few days ago it looked like Coleman would hang on to win. Now it's anyone's guess.

by Mike Dorning and James Janega

Barack Obama told reporters today to wait until he's out of town on Christmas vacation in Hawaii for answers to questions on his advisers' dealings with Illinois Gov. Rod Blagojevich.

Asked at a press conference moments ago about how he squared his commitment to transparency in government with the tight-lipped response he and his advisers have had to questions about their dealings with the scandal-tarnished governor, Obama said that it has been "frustrating" to maintain silence but that the questions will be answered next week--which happens to be when he will be in Hawaii on break.

"It's a little bit frustrating. There has been a little bit of speculation in the press that I would like to correct immediately. We are abiding by the request of the U.S. Attorney's office," Obama said. "But it's not going to be that long. By next week, you guys will have the answers to all of your questions."

As Obama spoke, his political advisor David Axelrod and chief of staff designate Rahm Emanuel watched from the margins of the room. Axelrod stood motionless, hands on hips, a frown partially hidden by his moustache and his attention laser-focused on Obama as he spoke. Emanuel, who was checking a message on his Blackberry when the question was asked, smiled in faint amusement, put the Blackberry away and watched the rest of Obama's response with his legs crossed at his ankles, arms crossed and a single finger pressed across his lips. He was still smiling.

by Frank James

Caroline Kennedy has evidently decided she wants U.S,. Senate seat from New York to be vacated by Sen. Hillary Clinton who was chosen by President-elect BaracK Obama to be his secretary of State.

This is not a happy day for a lot of other New York Democrats like Rep. Carolyn Maloney or Andrew Cuomo, the state's attorney general, who have either openly said they want the seat or have been pushed for it.

Because of her name, Kennedy is about as big a political big foot as they come. With virtually 100 percent name recognition and, more than that, a name that exerts a strong emotional tug still on many Democrats, she has about as close to a lock on the appointment as is possible.

It's hard to see Gov. David Paterson saying no to her, especially since if he appointed her to the Senate, New York would suffer no loss in star power when it comes its junior senator.

by Janet Hook

The collapse of legislation to bail out the U.S. auto industry is a fitting end to this year in Congress -- and a warning to President-elect Barack Obama that even larger Democratic majorities next year won't guarantee smooth sailing for his ambitious agenda on economics and other issues.

Polarized, beset by crises, and preoccupied with ideological and regional politics, this Congress followed a pattern all too familiar in the past decade. It railed and wrangled over the nation's toughest problems, but in the end failed to advance solutions.

From healthcare and costly dependence on foreign oil to the greatest economic crisis in more than half a century, the House and Senate have floundered into stalemate. Meanwhile, the economic woes have gone international.

The House and Senate this year did pass major legislation in response to the nation's economic problems -- but for the most part, they waited to act until a crisis could hardly be ignored. Each time, lawmakers had to struggle to reach agreement. Sometimes, as in the auto bailout, the legislation was not even approved.

See the rest of the story on Obama's congressional challenge in the Los Angeles Times and here in the Swamp:

by James Oliphant and Richard Simon

Since President-elect Barack Obama laid out plans for the largest injection of federal spending into the economy since the New Deal, just about everyone has started angling for a piece of the action.

With estimates of the package, which will be considered by the new Congress starting in January, topping out at anywhere between $500 billion and $1 trillion, ailing sectors such as home builders and sellers, airlines, railroads -- and, yes, the auto industry -- view the stimulus as a means to get healthy again.

That includes the air conditioning industry, America's libraries and even catfish farmers.

All of them, and many more, have deployed lobbyists to Capitol Hill in hope of benefiting from the spending spree.

"The ever-increasing cost of the yet-to-be-seen stimulus is like chum in the water for lobbyists circling to snap up some taxpayer cash for their clients," said Steve Ellis of Taxpayers for Common Sense, a watchdog group.

The primary goal of Obama's stimulus is job creation. His plan, he says, could lead to 2.5 million new jobs by 2011 and rebuild the nation's crumbling infrastructure, make school buildings more energy-efficient, modernize hospitals and extend broadband to underserved areas.

But so far, Obama has offered little in the way of specifics or a price tag. That is an opening for industry groups with no shortage of suggestions.

"It's not very often business and government run on parallel tracks," said Jerry Howard, chief executive of the National Assn. of Home Builders. "You've got to spend money to make money."

See the rest of the story on Obama's economic stimulus and the lobbying it has stimulated in the Los Angeles Times, the Chicago Tribune, other Tribune Co. newspapers and here in the Swamp:

by Frank James

There's a lot of suspicion in Washington and throughout the nation that Senate Republicans who thwarted the auto bailout last night were operating from a range of motives, including a desire for payback against the United Auto Workers,

The UAW has been the bane of Senate Republicans, throwing resources and people at defeating Senate Republicans, including no less than Senate Minority Leader Mitch McConnell of Kentucky in his recent reelection campaign.

Senate Republicans and organized labor have also been in a pitched battle over legislation that would make it easier for unions to organize workplaces without holding elections featuring secret ballots. Republicans have said the "card check" legislation would allow union heavies to strongarm workers into joining unions against their will.

Organized labor meanwhile has said anti-labor Senate Republicans want to make it harder for unions to organize, including in southern states. Senate Republicans have made it clear that the battle over the legislation will be one of the defining issues of the next Congress.

by Frank James

Dan Rostenkowski has forgotten more about political wheeling and dealing than most people will ever know.

So it's worth listening to the former congressman from Illinois and House Ways and Means Committee chairman who knows what it's like to be caught in a political and legal scandal, to be convicted on federal charges and to serve prison time.

He also has the years between his humiliation in the early 1990s and now to have a useful perspective.

Writing in The Daily Beast, Rostenkowski wants it known that Gov. Rod Blagojevich, who once occupied Rostenkowski's old House seat, doesn't represent Illinois's political class or politicians generally.

It is painful to recall my situation and, on a personal level, I can sympathize with the pain the governor's family must feel and can uniquely understand their concerns about what comes next.

But I find his reported behavior troubling. There's a big difference between running a sloppy office and staging a personally-beneficial auction to make policy and personnel decisions. That's what disturbs the public. It bothers me, too.

by Frank James

One of the stumbling blocks that reportedly caused the Senate to fail to pass the auto-bailout legislation was Senate Republican demands that the United Auto Workers at the Detroit Three auto plants get their wages to parity with workers at Toyota and Honda.

But just what is the divergence between the wages paid by the Detroit Three and those paid by the foreign transplants?

It's been said often that workers at the Detroit Three make more than $70 hourly while those at the foreign transplants are somewhat north of $40 an hour.

But as the New York Times' David Leonhardt recently pointed out, this is isn't true.

Let's start with the numbers. The $73-an-hour figure comes from the car companies themselves. As part of their public relations strategy during labor negotiations, the companies put out various charts and reports explaining what they paid their workers. Wall Street analysts have done similar calculations.

The calculations show, accurately enough, that for every hour a unionized worker puts in, one of the Big Three really does spend about $73 on compensation. So the number isn't made up. But it is the combination of three very different categories.

by Frank James

Now that Senate Republicans have foiled the Detroit 3 bailout in a late-night vote, any hope for a bailout falls to Treasury Secretary Henry Paulson Jr.

According to lawmakers on both sides of the aisle, the Emergency Economic Stabilization Act which created the $700 billion fund known as the Troubled Asset Relief Program, or TARP, could be used for the $14 billion bridge loan to the Detroit-based automakers.

In recent weeks, Paulson has resisted the idea of using TARP funds shouldn't be used for a Detroit rescue since it was created to provide liquidity to the financial sector.

But it may prove impossible for Paulson, and by extension President Bush, to remain purists on this as fears grow that a bankruptcy by one or more of the Detroit automakers could trigger a cascade of horribles and unintended consequences that could prove a devastating blow to an already sickly economy.

by James Oliphant

The prospect of a general election to select Illinois next senator has added some new potential candidates to the mix, ones who have not been involved in the Blagojevich scandal.

On the Republican side, Rep. Mark Kirk, who represents the 10th district in the north suburbs of Chicago, and is a proven fundraiser with a moderate message, has said he would take a look at running.

As for the Democrats, Rep. Melissa Bean, another strong fund-raiser from the northwest suburbs, is hearing calls to jump in should the Illinois General Assembly pass legislation establishing a special election, which would likely be held next spring. Rep. Jan Schakowsky, who also hails from the north side, is interested in running, as well.

A special election will already be necessary to replace outgoing Rep. Rahm Emanuel, once he formally resigns from the House to serve as President-elect Barack Obama's chief of staff. It's possible the two elections could be combined.

Such an election provides already-elected House members with major advantages they would not enjoy if Gov. Rod Blagojevich or his successor makes an appointment. For one thing, they wouldn't have to leave their current seats to make a Senate run. Another is that they could use federal campaign money--either their own or from their respective parties--in a Senate contest.

by Frank James

It looks like the nation may be very close to running an experiment to find out what happens when it loses one or more of its legacy automakers during the worst economic downturn since the Great Depression.

All indications are that the $14 billion rescue package drafted by the White House and congressional Democrats to save the Detroit 3 automakers will not have enough votes in the Senate since even some Democrats appear unwilling to vote for the legislation that has emerged.

And this is despite General Motors' warnings that it will burn through the last of its cash by the end of the month at which point it will be forced to file for Chapter 11 bankruptcy protection.

For the bill to have a chance at passage, it would likely need Sen. Mitch McConnell, the Senate Minority Leader, to support it or at least not to vociferously oppose it.

But he is very much opposed and has loudly stated his reasons on the Senate floor earlier today.

"Some argue that the effects of an auto industry collapse would be too acute and far-reaching for an already-struggling economy to bear. This is impossible to know. And even if we grant that these companies would fail without taxpayer help, we would still have to ask ourselves whether the proposal before us achieves the goal that everyone claims to embrace -- namely, the long-term viability of ailing car companies -- and, in my view, it does not.

by Frank James

Neel Kashkari, the Treasury official who oversees the Bush Administration's effort to inject money into the financial system, was hammered yesterday by House members over a large bonus payment to executive of AIG, an insurance company 80-percent owned by U.S. taxpayers.

Rep. Brad Sherman, a California Democrat, and Rep. Don Manzullo, an Illinois Republican, lit into Kashkari over a $3 million bonus to an AIG executive, just one of 130 AIG managers getting "retention" payments.

Sherman noted that the legislation that created the Troubled Asset Relief Program requires Treasury to set "appropriate" standards for pay and he repeatedly asked Kashkari if $3 million fit the Treasury official's idea of "appropriate."

Kashkari couldn't really answer the question. And how could he? What expertise does the federal government have at setting the pay for the executives of giant financial firms?

It's understandable why lawmakers placed limits on executive pay, especially when taxpayers have put $60 billion of their money into the company.

by Frank James

As expected, the House approved a $14 billion bailout package for the Detroit Three last night. That's the good news for auto workers, dealers, suppliers, communities, local media and all the others constituencies dependent on them.

But the Senate, of course, is another matter. Republicans there are more than balking. Some are openly hostile to the plan, despite warnings from many that a bankruptcy of one or more of the automakers could spell doom for an already moribund economy.

Jim Puzzanghera and Janet Hook of the Tribune's Washington Bureau captured the flavor of the debate taking place yesterday:

"The consequences of defeating this bill would be disaster for the economy that is already in trouble," House Financial Services Committee Chairman Barney Frank (D-Mass.) told his colleagues during the debate. The vote was 237-170, with 32 Republicans joining 205 Democrats in supporting it.

"People are rightly concerned that the automakers and unions won't follow through. Many simply don't believe that the changes that need to be made will be made," Sen. John Sununu (R-N.H.) said after the meeting.

by Frank James

Rep. Jesse Jackson Jr. held a Capitol Hill press conference to assert that he didn't participate in Gov. Rod Blagojevich's alleged scheme to sell the Senate seat vacated by President-elect Barack Obama.

Jackson, who's been openly interested in the seat, said he had no idea Blagojevich didn't plan on choosing Obama's replacement based on credentials but rather on what federal prosecutors allege was Blagojevich's desire to essentially auction the seat to the highest bidder.

Jackson has been identified as "Senate Candidate Five" in the criminal complaint against Blagojevich and his top aide John Harris. The complaint has Blagojevich saying that SC5 promised to raise $1 million for Blagojevich if he was named to the open Senate seat.

Jackson said:

I did not initiate or authorize anyone at any time to promise anything to Governor Blagojevich on my behalf. I never sent a message or an emissary to the governor to make an offer, to plead my case or to propose a deal about a U.S. Senate seat, period.

Clearly, I was badly mistaken. I did not know that the process had been corrupted. I did not know that credentials, that qualifications, that a record of service meant nothing to the governor. I did not know that the governor and his cronies were attempting to use the process to extort money and favors in a brazen pay-to-play scheme.

by Frank James

Blago # 5 is not a fragrance but Rep. Jesse Jackson Jr. who is the "Senate Candidate 5" mentioned repeatedly in the criminal complaint against Gov. Rod Blagojevich and his top aide John Harris.

The complaint quotes Blagojevich as saying someone representing SC5 offered to raise $1 million if Blagojevich appointed SC5, or Jackson, to the Senate seat vacated by President-elect Barack Obama.

Jackson denies any wrongdoing and the lawyer he's hired to represent him in discussions with the federal government makes the same denials.

Jackson is just one of probably many Illinois politicians who have some added anxiety right now, hoping that the angel of doom, otherwise known as U.S. Attorney Patrick Fitzgerald, passes over them.

An excerpt from the story on Tribune's "Breaking News" blog.

U.S. Rep. Jesse Jackson Jr. (D-Ill.) is "completely guiltless" in the alleged scheme to corrupt the appointment of a new U.S. senator from Illinois and will meet with federal investigators as soon as Friday, the congressman's newly hired attorney said today.

Jackson was not named in the criminal complaint yesterday charging Gov. Rod Blagojevich with trying to sell the Senate seat vacated by President-elect Barack Obama. But descriptions in the court document fit the congressman's profile and sources have further identified him as the "Senate Candidate 5" who was among those being considered for the job.

by James Oliphant

The office of Sen. Harry Reid, the Senate majority leader, is circulating a letter Wednesday to the Senate Democratic Caucus for signatures that recommends Gov. Rod Blagojevich resign and under no circumstances make an appointment to fill Illinois' vacant Senate seat.

The letter contains a threat to the governor, saying that the Senate is poised to use its power to refuse to seat any appointment Blagojevich makes.

The text of the letter is as follows:

December 10, 2008

Dear Governor Blagojevich:

We write to insist that you step down as Governor of Illinois and under no circumstance make an appointment to fill the vacant Illinois Senate seat.

by Frank James

All of those waiting to see if there'll be an auto bailout vote today in the Senate can stand down.

Senate Minority Leader Mitch McConnell says there'll be no vote on the bailout today:

Here's the statement he made on the Senate floor:

"Republicans were told last night that an agreement had been reached between Congressional Democrats and the White House on an auto package.

"But let me be clear: there will be no vote on this legislation today. On a bill this critical, with so much taxpayer money at stake, we cannot rush this through without adequate review.

By Jim Tankersley and Andrew Zajac

It's a quote likely destined for political infamy: A Senate seat, Illinois Gov. Rod Blagojevich allegedly said, "is a (expletive) valuable thing, you just don't give it away for nothing."

But if federal prosecutors' allegations are true, Blagojevich was set to give one away for far less than market value.

The feds arrested Blagojevich today on corruption charges including allegations that he put a "for sale" sign on the former Senate seat of President-elect Barack Obama. The criminal complaint prosecutors filed today, based heavily on taped conversations between the governor and his aides, lists several potential price tags floated by Blagojevich and co. It includes a cabinet appointment, up to $1 million in campaign contributions and lucrative employment for the governor and his wife.

by Frank James

If and when the federal government gives the Detroit Three billions of dollars in an effort keep them from collapsing, it only makes sense that federal policymakers would want to have oversight to prevent taxpayer money from being wasted.

That's particularly true after the widespread dissatisfaction with how the financial industry rescue has gone, with banks largely sitting on the $350 billion they're received to date instead of making new loans.

But here's the rub. Oversight means the federal government has to get involved in the manufacturing of cars to a degree that some are calling it nationalization since it will be the government, not the market that will be driving, so to speak, a lot of the decisions.

This remarkable situation is examined by David Sanger in the New York Times today as he lays out the potential pitfalls inherent in an auto bailout that places federal policymakers in what would normally be the role a corporate board.

The first, of course, is the one the president-elect himself highlighted. Government's record as a corporate manager is miserable, which is why the world has been on a three-decade-long privatization kick, turning national railroads, national airlines and national defense industries into private companies.

by Frank James

So do you still get to pick the Senate replacement for President-elect Barack Obama if you've been arrested on federal corruption charges as Illinois Gov. Rod Blagojevich was today?

Some pretty stunning allegations are being made by federal prosecutors, including U.S. Attorney Patrick Fitzgerald. According to a story on the Chicago Tribune's Breaking News site:

On the issue of the U.S. Senate selection, federal prosecutors alleged Blagojevich sought appointment as Secretary of Health and Human Services in the new Obama administration, or a lucrative job with a union in exchange for appointing a union-preferred candidate.

Blagojevich and Harris, along with others, obtained and sought to gain financial benefits for the governor, members of his family and his campaign fund in exchange for appointments to state boards and commissions, state jobs and state contracts.

by Frank James

If you thought the Republican war against ACORN ended on Election Day passed, you would be wrong. Very wrong.

House Minority Leader John Boehner of Ohio is demanding that the Housing and Urban Development Department withhold $17.2 million in funding from the controversial group which Republicans accused of voter fraud on behalf of Democrats, including President-elect Barack Obama, during the presidential campaign. ACORN also fell under suspicion because of financial wrongdoing and mismanagement, including an embezzlement it didn't report.

Worth nothing In Boehner's press release, in which he urges HUD not to give ACORN the funds until congressional hearings occur, is Boehner's implication of ACORN, Fannie Mae and Freddie Mac in much of the financial and economic meltdown.

It's a theory of the cause of the problem that's not accepted by most reputable experts on the crisis. But it has become an article of faith among many conservatives that ACORN and the government sponsored entities brought down the global economy by pushing for mortgages to low-income home buyers who couldn't afford them.

by Frank James

Steve Ellis of Taxpayers' for Common Sense has gotten a copy of the auto bailout legislation resulting from negotiations between Congress and the White House. Here's what his quick early take:

We just got it and are looking through it, but here is what we found so far:

It taps the existing $25 billion auto loan guarantee program created under the Energy bill. It also has a repayment structure (5 percent for 5 years, 9 percent after) similar to the bank investments under TARP. The starting point is the restructuring plans submitted by the companies on December 2, with a January 1 progress assessment due. Shorter term periodic reports are due upon release of the loans, every several days.

by Frank James

Looks like we could have an auto bailout deal between the White House and Congress by the end of the day.

As Jim Puzzanghera of the Tribune Washington bureau reports:

WASHINGTON - The White House said Monday morning it's "very likely" a deal will be reached today with Congress on a short-term bailout package for U.S. automakers.

Negotiations between the Bush administration and House and Senate Democratic leaders resumed Monday after a breakthrough Friday night on the source of the funding, said White House spokeswoman Dana Perino. The broad plan calls for about $15 billion to keep General Motors and Chrysler afloat until March 31. GM has told lawmakers it needs $10 billion and Chrysler has said it needed $4 billion for the period. Ford, the other of Detroit's Big Three, said it does not need any funding immediately, but said a failure by GM or Chrysler could cause it to fail as well because of numerous shared suppliers and dealers.

Republican Anh 'Joseph' Cao holds daughter Betsy, 4, at his victory party after defeating Rep. William Jefferson, D-La., for the 4th Congressional District in New Orleans Saturday, Dec. 6, 2008. (AP Photo/Alex Brandon)

by Frank James

In something of a surprise, Rep. William 'Cold Cash' Jefferson, the indicted Democratic congressman from New Orleans, was defeated by Anh "Joseph" Cao, a Republican lawyer who will become the first Vietnamese-American in Congress.

What made Jefferson's defeat news was that his district is so overwhelmingly Democratic that many observers just assumed he'd win re-election on that basis alone.

Here's an excerpt from a story on the WWLTV.com, a New Orleans television station with election details:

Anh 'Joseph" Cao received 33,122 votes, or 49 percent to Jefferson's 31,296, or 47 percent in the race for the Second Congressional District seat from Louisiana. He becomes the nation's first Vietnamese-American Congressman.

"I'm sure some people thought I'd already won," he said. "Many did not vote. Most of the people in the district supported us. I think some just ran out of gas."

Caroline Kennedy waves to the crowd after stumping for then Sen. Barack Obama at the Wilkes University student center in Wilkes-Barre, Pa., Sunday, Nov. 2, 2008. (AP Photo/Kristen Mullen, The Citizens' Voice)

by Frank James

It's easy to understand some of what must be tugging on Caroline Kennedy, President John F. Kennedy's daughter who, according to reports, is considering seeking the Senate seat from New York being vacated by Sen. Hillary Clinton, President-elect Barack Obama's choice to be his secretary of state.

A Kennedy has served in the Senate since 1952 when her father was first elected to the body, with only a brief interruption after JFK was elected president.

But her uncle, Sen. Edward Kennedy has an incurable brain cancer and is 76. The easiest way to ensure that the Kennedy Senate tradition continues would be for her to have New York Gov. David Patterson appoint her to fill the seat.

Of course, the seat being vacated by Clinton was once occupied by Kennedy's other uncle, Robert F. Kennedy, so that's quite possibly another draw.

by Frank James

At a time when we're desperately searching for things to laugh about, especially with the economy swooning, Rep. Ileana Ros-Lehtinen has given us something to smile about.

Who could not like the story about her repeated phone hang ups on President-elect Barack Obama and his chief of staff Rahm Emanuel? She didn't want to be played for a fool by what she thought were impersonators who would air her gullibility on a radio show, as happened to Alaska Gov. Sarah Palin.

So she hung up. Again and again. She has since apologized.

A lot of people are evidently more upset about this than Obama was. Her office has been fielding numerous angry callers who believe she hung up on Obama intentionally, according to an Associated Press story. Presumably, her staff isn't hanging up on those callers.

by Frank James

The Big Three auto makers take their pleas for an auto industry bailout to the House side today and as we saw yesterday after the Senate's hearing, it's far from certain they will get the $34 billion in taxpayer-subsidized bridge loans they're seeking.

They may get some perverse help from the economy today, with the Labor Department reporting this morning that the nation lost more jobs in November, 533,000, than economists had expected, more than anytime since 1974.

The Detroit Three employ 250,000 U.S. workers. GM alone has 100,000. So the November job loss figures could perhaps ease the resistance of some lawmakers who've been dubious about the bailout.

And even after yesterday's contrite appearances by the newly humbled auto chief executives, there still were lawmakers who remained to be swayed.

As Tribune Washington reporter Jim Puzzanghera reports:

But skepticism remained high on Capitol Hill during a hearing of the Senate Banking Committee, with lawmakers questioning Detroit's commitment to becoming more competitive and worrying that the taxpayers' money would quickly be frittered away.

"In just two short weeks the price tag has jumped from . . . $25 billion to $34 billion," said Sen. Richard C. Shelby of Alabama, the Banking Committee's top Republican. "I'm interested in hearing what changed and why we should believe things will get better."

by Frank James

It was the question the chiefs of the Big Three automakers knew was coming and they were ready. How did they get to Washington and how did they plan to return home?

They knew it was part of the penance they'd have to pay for being so disconnected to public appearances that they separately flew to Washington on their private jets in November to ask for a taxpayer bailout of their companies.

It was Sen. Richard Shelby, a Republican from Alabama, who, hours into the hearing, asked the question.

SEN. SHELBY: You flew up here before, I understand that. And you drove up here. Did you drive or did you have a driver? Did you drive a little and ride a little? And secondly, I guess, are you going to drive back? Because if you are, some of us might want to ride back with you.

SHELBY: Now wait a minute Sen. Dodd. I'll let you ask that question. The chairman wants to make light of it. But I can tell you this, are you planning to drive back? In all the press releases, I saw you drove up here.

All the auto CEOs said they drove to Washington and planned to drive back. All three, Bob Nardelli of Chrysler, Alan Mulally of Ford and GM's Rick Waggoner all split the driving duties with other drivers with Waggoner saying he planned to drive back himself tomorrow or Saturday.

It turned out to be one of the few moments of levity in a lengthy hearing that was generally fairly sobering.

by Frank James

First it was $25 billion to bailout the auto industry. Then, once the Big Three automakers submitted their plans to Congress, it was $34 billion.

Now, we've head Mark Zandi, chief economist at Moody's Economy.com, say at the Senate Banking Committee hearing that's still in progress that for a bailout to really work to save the Big Three, an effective bailout would have to be more like $75 billion to $125 billion in size.

Zandi, who's testifying today along with the auto executives, says $34 billion would only get the Big Three through the next few months. The higher range would be needed to get the companies through the next few years, especially if the automakers' annual sales come in around 10 million to 11 million vehicles compared with the 17 million units they were manufacturing annually before the bottom fell out of the auto market.

Needless to say, Zandi's numbers caught the attention of lawmakers who aren't too happy at the thought of a $34 billion bailout let alone one that, to be effective, might need to be more than twice as large.

by Frank James

The Big Three automakers are in Washington for the first of two congressional hearings this week, appearing before the Senate Finance Committee today and a House committee tomorrow.

In his opening statement Sen. Chris Dodd, chair of the committee, raised one of the most compelling reasons to help the auto industry. Call it the unintended consequences if no help is given.

Dodd uttered three words that should strike horror in the hearts of most Americans by now but probably doesn't: credit default swaps.

These are the financial weapons of mass destruction, as Warren Buffet might call them, that could wreak havoc on an already severely damaged economy.

Speculators used these swaps to place bets on the relative likelihood of some companies defaulting on their debts.

If companies default, holders of CDS on those companies have to be paid by those obliged to pay those CDS obligations.

These CDS are scattered across the financial system and many fall into the category of toxic assets. Indeed, one reason banks are hoarding cash is because they're worried about the CDS on their books as well as those held by other banks, insurers etc.

So if the Big Three default, the repercussions to an already weakened financial system could be disastrous, as Dodd pointed out.

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by Frank James

The Big Three auto makers all got their restructuring plans in to Congress and their chief executive officers are all reportedly in hybrid vehicles somewhere between Detroit and the nation's capital as they head to the first of two congressional hearings this week.

As someone who's driven from the Midwest to Washington, I hope they have a few good audiobooks. Ohio and Pennsylvania are much bigger in person than they seem from a corporate jet. Maybe they'll race each other along the Ohio Turnpike to keep things interesting. It all could be a great realty TV show: "Race to the Bottom," maybe?

But, alas, it may all be for nought since there are real questions as to whether there is enough support in Congress to give at least $25 billion in taxpayer-funded loans to the companies.

The companies' plans can be found on the GM, Chrysler and Ford websites.

As Tribune reporters Ken Bensinger and Jim Puzzanghera wrote:

Together, the Big Three U.S. automakers are asking Congress for $34 billion in low-cost government loans -- $9 billion more than the roughly $25 billion the automakers had sought just last month.

"Absent support, the company can't fund its operations," Henderson said.

by James Oliphant and Richard Fausset

The Democrats' dream of an overpowering, filibuster-proof majority in the U.S. Senate is officially on ice.

Republican Sen. Saxby Chambliss Tuesday held on to his Georgia Senate seat, fending off a challenge from Democrat Jim Martin that went into extra innings. Martin had forced a runoff election last month after keeping Chambliss from attaining 50 percent of the vote, a requirement for office under Georgia law.

As it stands, Democrats will control 58 seats in the newly seated Senate, where 60 votes are needed to cut off debate on a bill and force a floor vote. After Chambliss' victory, only one Senate race -- in Minnesota--still remained undecided.

If Democrats had secured that super-majority, their ability to enact major legislation over Republican objections would have been substantially enhanced. This is why the Georgia contest drew national attention throughout November. Cash poured into the state from interest groups and the national political parties. Big-name politicians such as Bill Clinton, Al Gore, Sen. John McCain, and Alaska Gov. Sarah Palin campaigned there.

Yet one who didn't campaign for Martin--President-elect Barack Obama--could have had the greatest impact. Martin was able to advance to a runoff largely because African-Americans had turned out on Nov. 4 in huge numbers to vote for Obama.

People gather around the plaster model of the Statue of Freedom, which was used to cast the bronze Statue of Freedom which tops the Capitol Dome, following the opening ceremony for the United States Capitol Visitor Center on Capitol Hill on Dec. 2, 2008. (AP Photo/Susan Walsh)

by Frank James

It's opening four years later than it was supposed to and cost tens of millions of dollars more than was initially budgeted, but at least the U.S. Capitol Visitors Center has finally, officially arrived, just in time for Inauguration Day, 2009 and the millions of people expected to visit Washington on Jan. 20.

by James Oliphant

It's down to the wire in Georgia. Today is the Senate runoff election between Republican incumbent Saxby Chambliss and Democratic challenger Jim Martin.

That meant that Monday was the opportunity for both sides to make their final case. Chambliss went for the home run, securing the campaigning services of an Alaska governor named Sarah Palin. You might have heard of her.

Martin, however, had less of a deep bench to call upon. The nation's number one Democrat, Barack Obama, remains in full post-partisanship mode, dealing with the recession (we can say that now!) and the attacks in Mumbai. Also, Obama isn't about to invest his precious political capital in a race where the Democrat looks like he isn't going to pull it out.

So that, perhaps, is one reason why Martin found himself sharing an Atlanta event last night with the rapper Ludacris at a rally designed to get African-American voters to the polls. In a runoff election, turnout is the most decisive factor. Martin needs a large number of black voters if he hopes to unseat Chambliss.

by Bob Shaw

When Sen. Mel Martinez of Florida gave up the chairmanship of the Republican National Committee, it was clear he was facing a little trouble back home in the Sunshine State. Now the Cuban-born Martinez is bowing out altogether.

Martinez, a former Cabinet member in the Bush administration and former chief executive of Orange County, has scheduled an 11 a.m. EST press conference today, and sources say it's to announce that he won't be running for re-election in 2010.

Martinez, who did an awkward one-year stint as chair of the RNC and lost a lot of GOP support for his backing of the immigration reform plan advanced by President Bush, is considered one of the most vulnerable Republicans whose terms expire in 2010.

The Orlando Sentinel's Jim Stratton reports that there's nothing official coming from Martinez yet, but word is he's called some top Republicans to let them know he will not run for re-election. One person familiar with the situation said, barring a last-minute change of heart, Martinez will announce his first term will be his last.

His announcement comes a day after the Politico website reported that Florida Chief Financial Officer Alex Sink, who had been considered the leading Democrat to challenge Martinez, has decided to run for re-election in 2010 rather than seek the Senate seat or take on Florida Gov. Charlie Crist.

Tribune Correspondent James Oliphant spent last week in Georgia, covering the U.S. Senate runoff between Republican Saxby Chambliss and Democrat Jim Martin. The race could determine the success of the Democratic legislative agenda. Here is his report:

by James Oliphant

ATLANTA - Here, in a campaign office on Martin Luther King Jr. Drive, Jim Martin is feeling the spirit.

The Democratic Senate candidate is normally so unassuming, he sometimes seems out of place at his own campaign events. But here at the historically black Morris Brown College, surrounded by former Barack Obama campaign staffers and African-American luminaries such as Reps. John Lewis and Bennie Thompson, the bespectacled, 63-year-old, white lawyer has discovered his inner preacher.

"We're all in this together!" Martin intones.

"Talk to me!" a man in the group shouts in response.

"The Republicans believe if they have 41 votes in the Senate, they can stop this great president!"

"That's right!"

"Now this isn't Landslide Jim, you're talkin' to," Martin says. "I need your help."

Martin was never supposed to be this close to a U.S. Senate seat. A relative unknown in Georgia politics, the former head of the state's Department of Human Resources had to survive two primaries before securing the privilege of receiving what promised to be a whomping at the hands of Republican incumbent Sen. Saxby Chambliss.

After all, this isn't some swing-state such as Ohio or Florida. This is Georgia, where John McCain topped Obama by 5 points and President George W. Bush won by 17 points four years ago. In 2002, Chambliss was able to unseat a decorated Vietnam War veteran, Max Cleland, in part by questioning his patriotism.

But Martin benefited from the heavy black turnout on election day Nov. 4 and was able to draw close enough to Chambliss to force a run-off election, to be held Tuesday.

For the past three weeks, the Georgia Senate race has given the political world a last campaign fix. Bill Clinton, Al Gore and Sen. John McCain have all stumped here. Monday promises the arrival of Alaska Gov. Sarah Palin to campaign for Chambliss.

The big-name attention to Georgia is rooted in the Democrats' effort to secure a 60-vote majority in the Senate, which would defeat Republican filibusters and allow easy passage of many pieces of legislation. Right now, they hold 58 seats, with two races, here and in Minnesota, still not settled. Chambliss repeatedly calls himself "the firewall," the man who can single-handedly derail the Democratic agenda.

by Frank James

Alaka Gov. Sarah Palin Georgia-bound next week to help fellow Republican Sen. Saxby Chambliss who's in a tough run-off with Democrat Jim Martin.

We're guessing no farm of any kind will be on her itinerary after last week's infamous turkey farm visit.

Here's an excerpt from the Atlanta Journal-Constitution report:

Alaska Gov. Sarah Palin will come to Georgia next week to campaign for incumbent Republican U.S. Sen. Saxby Chambliss on the eve of the runoff election.

Palin has been lambasted by the left, but she is immensely popular with many conservative voters. The McCain-Palin ticket carried Georgia on Nov. 4 by about 200,000 votes.

by Frank James

House Speaker Nancy Pelosi has a growing problem and it comes in the form of the raspy voiced Rep. Charlie Rangel, chairman of the House Ways and Means Committee.

The New York Times has a very strong story today which chronicles what is a clear appearance of conflict of interest on the part of Rangel who chairs the House Ways and Means Committee.

The bottom line: Rangel supported keeping a tax loophole that was important to a wealthy oil-drilling executive who pledged $1 million to a City College of New York public-policy school that will bear Rangel's name.

As the Times reports:

Representative Charles B. Rangel has helped raise $11 million for a City College of New York school of public service to be named in his honor. In recent months, as questions have emerged about his fund-raising, he has insisted that he has kept his efforts to attract donors scrupulously separate from his official duties in Congress.

But Congressional records and interviews show that Mr. Rangel was instrumental in preserving a lucrative tax loophole that benefited an oil-drilling company last year, while at the same time its chief executive was pledging $1 million to the project, the Charles B. Rangel School of Public Service at C.C.N.Y.

by James Oliphant

Delaware has been the Land of Biden for more than 35 years. And it appears poised to stay that way.

Monday, the governor of the state, Ruth Minner, named Ted Kaufman, a longtime aide to Joe Biden, now the vice-president elect, to fill Biden's vacated Senate seat.

Kaufman served as Biden's chief of staff in the Senate for almost 20 years and after moving on the private sector has continued to be a counselor and confidant to Biden, a six-term senator who twice ran for president. He is the co-chairman of Biden's vice presidential transition team.

"I have known Ted Kaufman for over 30 years," Biden said Monday in a statement. "He is a man of first-rate qualifications, unquestioned integrity and a long-time commitment to public service."

Kaufman, however, is widely believed to be keeping the seat warm for Biden's son, Beau, the Delaware attorney general. A captain in the state National Guard, Beau Biden was deployed to Iraq last month. A special election for the Senate seat will be held in 2010.

Joe Biden has yet to formally resign his Senate seat, but that's simply a matter of time. Minner's office said that Kaufman is likely to take his seat in early or mid-January.

by Frank James

General Motors is getting rid of some of its corporate jets after they became a symbol of the auto industry chief executives' cluelessness and hubris in their effort to get Congress to give their companies a $25 billion bailout, according to ABCNews.

An excerpt of ABCNews' report:

General Motors said today that it is putting two of its five corporate jets out of service because the planes are not being used enough. The top three executives at GM, however, will continue to use the private luxurious jets for all of their business and personal travel, despite a flurry of criticism over the perk following an ABC News report this week.

GM leased a fleet of seven planes at the beginning of this year, according to a company spokesperson. Two of the planes were dropped from the fleet in September and two more will be dropped by the end of the year.

by Frank James

Sen. Ted Stevens gave his valedictory speech on the Senate floor today. The 85-year old who holds the record as the longest-serving Republican senator in history said repeatedly stressed his love for and sense of duty to Alaska.

He said:

And home is where the heart is... If that is so I have two homes. One is right here in this chamber and the other is my beloved state of Alaska. Alaska and the Senate. I must leave one to return to the other."

He also said:

"My motto has been here, to hell with politics. Just do what is right for Alaska. And I've tried everyday to live up to those words."

Oh yes, he did say he hopes to clear the cloud caused by his conviction for lying on his federal financial disclosure forms which helped lead to his defeat this week by Anchorage Mayor Mark Begich.

by Frank James

Have the federal bailouts been biased towards white-collar and against blue-collar workers?

That question was starkly raised by Rep. Barney Frank, chair of the House Financial Services Committee, which yesterday heard the chief executives of the Big Three automakers beseech Congress for $25 billion in taxpayer-funded loans.

Frank, the committee's chair, said:

I have been struck, not happily, in the time that we've been discussing this, at what frankly seems to me an inherent cultural bias. There's a double standard here. Aid to blue-collar employees is being judged by a standard different than white-collar employees.

Ford Chief Executive Officer Alan Mulally arrives on Capitol Hill on Wednesday, Nov. 19, 2008, in a new Ford Fusion Hybrid, (AP Photo/Gerald Herbert)

by Frank James

It was kind of a cheap shot but still an effective moment that made the point the lawmaker was seeking.

Rep. Brad Sherman, a California Democrat on the House Financial Services Committee asked at today's hearing on a potential bailout for the struggling U.S. auto industry asked the Big Three's chief executive officers which of them had flown by private jet into Washington for the hearing. All three raised their hands.

Then he asked which would be heading home commercially. None of the three raised his hand.

It definitely didn't match the image of cash-strapped companies in desperate need of a taxpayer-financed bailout that the auto industry officials were trying to get across.

Not that there wasn't some thought given ahead of time to image. Alan Mulally, Ford's CEO made sure to arrive at Capitol Hill today in a Ford Fusion hybrid.

by Frank James

The White House is trying to shift blame to congressional Democrats if the auto industry doesn't get the financial bailout it's seeking, saying Democrats appear unwilling to loosen restrictions on $25 billion that's already been approved to help the industry retool to make their vehicles more fuel efficient.

White House spokeswoman Dana Perino, reflected that view in an exchange with a reporter today:

PERINO: Well, Senator Reid (the Senate majority leader) appeared to foreshadow this morning that the Congress will fail to address this issue before they leave. And I'd like to just make a few points clear on that. One, there is legislation that's being introduced by Senators Bond and Voinovich that the administration supports. That proposal would redirect existing funds already appropriated for the auto industry, rather than spending an additional $25 billion on top of the $25 billion we already support using, as we've said over the last few days.

That proposal of theirs would not rob the Treasury program of much needed funds to help save and strengthen the financial system. The purpose of the $700 billion was clearly intended for financial institutions, and we wanted to keep that whole.

Rep. John Boehner. (Photo: NICHOLAS KAMM/AFP/Getty Images)

by Frank James

House Republicans demonstrated their loyalty to Rep. John Boehner, the Ohio Republican, by re-electing him House Minority Leader today over challenger Rep. Dan Lungren of California.

They didn't blame Boehner for their Election Day losses in which they lost 20 seats. But Republicans who wanted some change in their leadership team were able to get it, since there are a couple new faces in the GOP House leadership.

Two leading House conservatives took positions at the top of the new leadership team: Rep. Eric Cantor of Virginia became the minority whip and Mike Pence of Indiana was elected chairman of the House Republican Conference.

A major theme observers have heard from conservatives since Election Day is the need for congressional Republicans to return to their core values of fiscal conservatism, meaning tax cuts and spending limits, if they have any hope of returning to the majority.

This "new" team will get plenty of opportunities to rehearse that message since Democrats are expected to call for new spending to try and boost the nation's foundering economy.

University of Maryland professor Peter Morici at a Senate hearing on the proposed auto industry bailout, Tuesday, Nov. 18, 2008. (AP Photo/Manuel Balce Ceneta)

by Frank James

It's doubtful Peter Morici will be receiving any awards any time soon from the United Auto Workers.

Morici, an international business professor at the University of Maryland was, as he noted, the only witness testifying against the Senate Banking Committee's hearing on bailing out the U.S. auto industry; the chief executives of Detroit's Big Three sat to his right.

But Morici made such a strong case against a bailout, he really didn't need any help. He was a one-man wrecking crew.

The nub of Morici's argument was that $25 billion isn't going to change the numeorus structural problems the industry has from higher costs due to its union contracts to the fact that cars are so well made now consumers can keep them longer. Add to that the foreign currency and trade issues that give foreign producers a price advantage and it's clear, at least to Morici, that $25 billion isn't the right medicine for the ailing industry.

Morici's remarks are worth reading because if he's diagnosing the situation correctly, than he presents President-elect Barack Obama and congressional Democrats who received strong backing from the UAW and organized labor generally with a real dilemma: The UAW desperately wants the bailout.

But a bailout to the tune of tens of billions of dollars may just be throwing good money after bad.

MR. MORICI: My name is Peter Morici. I'm an economist and professor at the University of Maryland. I'm the sole panelist here to speak against the bailout. I guess three CEOs and a president of a labor union, one Terrapin (the school's turtle mascot) -- I think it's a pretty fair matchup actually. I feel sort of like the mouse that stowed away on the Titanic.

The gradual erosion of the market shares, of the Detroit Three, over the last several decades, stems from higher labor costs, having origins in wages, benefits, work rules, poor management decisions and less than fully supportive government policies.

Sen. Ted Stevens talks with the media on Capitol Hill on Tuesday, Nov. 18, 2008. Photographer: Jim Lo Scalzo/Bloomberg News

by Frank James

What a way to mark your 85th birthday. It was on his birthday yesterday that octogenerian Sen. Ted Stevens of Alaska learned he has lost his Senate seat to Mayor Mark Begich of Anchorage who held a slim 3,724 vote lead.

The Senate will lose its longest serving Republican member who was just convicted by a federal jury for failing to make required financial disclosures. Meanwhile, Democrats pick up another seat which gives their caucus 58 seats, including the two independents who meet with the Democrats. They need just two more for the 60 votes that would allow them to move controversial legislation to a full Senate vote.

As the Anchorage Daily News reports:

Stevens could ask for a recount but his campaign would have to pay for it. The state pays if the margin is within .5 percent of the total votes cast. But Begich leads by just over 1 percent with more than 315,000 votes cast in the race.

The Stevens campaign did not respond to requests for comment after the senator's defeat was clear.

by James Oliphant

Move over James Bond. There's a new indestructible action hero: Joe Lieberman.

The senator from Connecticut, who was vilified by Democratic activists for his support of Republican presidential nominee John McCain, escaped serious retribution from his Democratic Senate colleagues Tuesday.

Lieberman will remain in the Democratic caucus and he will keep his chairmanship of the prestigious Homeland Security and Government Affairs Committee. As part of a resolution adopted overwhelmingly by Democratic senators, he will only have to forfeit chairmanship of an Environment and Public Works subcommittee. He will keep chairmanship of another Armed Services subcommittee.

The result is a far cry from the sentiments echoed by many Democrats after Lieberman spoke at the Republican National Convention this summer and suggested Barack Obama wasn't ready to be president. McCain seriously considered Lieberman as his running mate.

At the time, the talk was about expelling Lieberman from the Democratic caucus and stripping him of the Homeland Security chair.

by Frank James

Senate Democrats may be angry but they're not stupid.

Many of them would've liked nothing more than to punish Sen. Joe Lieberman, the Independent Democrat as he styles himself, for supporting Republican Sen. John McCain's presidential bid over President-elect Barack Obama's campaign.

There was real sentiment to yank Lieberman's Senate Homeland Security and Governmental Affairs chairmanship from him and give him a lesser subcommittee chairmanship.

But Democrats are within striking distance of reaching the 60 votes they need to be able to move controversial legislation through the Senate. With the two independents who caucus with them, and three Senate elections still undecided, they could get there but barely.

So they allowed the senator from Connecticut to keep his chairmanship. The vote was 42 to 13. It was really important to Lieberman to stay in the Homeland committee post since he authored the authorizing legislation for the Homeland Security Department.

"Joe Lieberman is a Democrat. He's part of this caucus," said Senate Majority Leader Harry Reid who said no Democrat was angrier than he was but that he wanted to let bygones be bygones.

An Obama spokeswoman had also publicly indicated that the president-elect was all right with Lieberman keeping his chairmanship. Coming from a former senator who just won a fairly sweeping victory for the White House, certainly made a difference.

by Paul West

House Democratic Leader Steny Hoyer said today that Congress could come back next month to deal with the national economic crisis, even as he conceded that action this week on an auto industry bailout looks unlikely.

At a question-and-answer session with reporters at the National Press Club, the second-ranking member of the House said that a December session of Congress is possible.

"The year has not ended," Hoyer said.

He expressed pessimism about the possibility of action this week on an auto industry bailout or a new economic stimulus package. Opposition from Senate Republicans and the Bush administration have dimmed chances for those measures to gain approval from the current Congress.

Hoyer said that an economic conference, planned for the week of December 8, would bring many members of Congress back to Washington. Though it is not a formal session of Congress, it could lead to one, he said.

The Maryland Democrat pointed out that this week's action in Congress, including a lame duck session of the Senate that opened Monday, coincided with previously scheduled meetings by members of both parties to organize committees and elect leaders for the new Congress, which convenes in January.

He said it was still unclear whether the House would even formally go into session this week. But in any case, he said he did not expect the House to adjourn for the remainder of the year.

Hoyer said that dealing with the plight of the Big Three domestic carmakers is "a pressing need," because of the large number of jobs that depend on the auto industry.

by Peter Brown

As bizarre as it may seem, Alaska Gov. Sarah Palin's presidential ambitions for 2012 hang to a considerable degree on her state's U.S. Senate race, a contest that could be decided this week

With about 24,000 votes still to be counted, it's less than even money that she will get the break she needs-Sen. Ted Stevens will win re-election over Democrat Mark Begich so that she can slide into the Senate seat.

Sen. Stevens, "Uncle Ted," as he is known around Alaska for his four decades in office and the federal dollars he brought home, was found guilty of felony corruption charges by a federal jury last month. If he wins another term, his Senate colleagues will almost certainly throw him out of the chamber next year, if he doesn't first resign on his own.

Gov. Palin could then appoint a successor, or there could be a special election. If Gov. Palin wants to run for president in 2012, common sense says she will appoint herself or run for the post, which would require her to stand for re-election in that job in 2010. Last week, she left open that possibility.

(Read the rest of Brown's posting from his Political Perceptions column on wsj.com. Brown is assistant director of the Quinnipiac University Polling Institute, specializes in polling of electoral battleground states. )

by Frank James

Sen. Ted Kennedy returned to Capitol Hill today following his recuperation from treatment for his malignant brain tumor.

The 76-year old senator had lost weight, walked with a cane and looked noticeably tired. But considering all he's gone through since he was diagnosed in the summer with cancer, the Massachusetts Democrat looked to be in remarkably good shape as he spoke of his desire to work on health-care, his signature issue, with the incoming Obama Administration.

He was accompanied by his Vicki and his two Portuguese Water Dogs.

Kennedy's office also issued a statement:

"It's good to be back in the Senate. I am particularly looking forward to seeing my staff and my colleagues and to working in the current brief session on a realistic new stimulus package to help our fellow Americans who are suffering in this economic crisis.

I am grateful for the prayers and good wishes I've received over the past several months. They have certainly lifted my spirits, as has the election of Barack Obama as our 44th President."

by Mark Silva

Good ole' Zell Miller.

The former Democratic governor of Georgia, who delivered the keynote address at the Republican National Convention in 2004 with his passionate appeal for President Bush and stern warnings about Sen. John Kerry, has come out with an endorsement for Republican Sen. Saxby Chambliss in the hotly contested Georgia Senate runoff.

Miller calls Chambliss "the last man standing between a far left liberal agenda sailing through the United States Senate, an agenda that (Democratic rival) Jim Martin just can't wait to help move on.'' (The runoff for one of the few still unresolved Senate races that will determine the Democrats' ultimate advantage comes Dec. 2)

This is the Democrat who starred at the GOP's convention in New York four years ago with a similar warning about liberals: "No pair has been more wrong, more loudly, more often than the two senators from Massachusetts, Ted Kennedy and John Kerry,'' he said back then. "Together, Kennedy/Kerry have opposed the very weapons system that won the Cold War and that is now winning the War on Terror.''

While Kerry opposed spending on new weapons, he said, Bush remained firm in the war on terror: "No matter what spider hole they may hide in or what rock they crawl under.... George Bush wants to grab terrorists by the throat and not let them go to get a better grip.''

Worked for Bush. Working for Chambliss?

by Frank James

Sen. Dick Durbin, the senior senator from Illinois, is the person who gets credit for asking President-elect Barack Obama in 2006 the critical question that helped the junior senator decide to run for the White House: "Do you really think sticking around the Senate for four more years and casting a thousand more votes will make you more qualified for president?"

Durbin obviously knew something a lot of other people didn't at the time. Today, Durbin issued a statement in response to Obama's announcement that he will resign his Senate seat on Sunday.

"No Senator in our history has made such an impact on America in so short a time.

Though he will no longer be by my side in the Senate, I will be by his side as he leads our nation forward."

by Frank James, updated at 3:25 pm ET

As Congressional Democrats try to come up with a financial package for the U.S. auto industry, Washington policy makers and Americans generally are torn on whether the auto makers should get a bailout or be allowed to go bankrupt.

The question has particular urgency for GM which is facing a cash crunch that could lead it to bankruptcy court in a matter of weeks, according to GM's chief executive Rick Wagoner.

The reason it's such a difficult debate is because there are powerful arguments on both sides.

Those who favor taxpayer money being used to infuse cash into the car makers argue that the collapse of U.S. auto industry would have a huge knock-on affect on an already weakened economy, harming suppliers and communities across the entire country.

by Frank James

Senate Democrats now have 57 members in their caucus, including two independents, and are awaiting the outcome of three additional races in Alaska, Minnesota and Georgia.

Getting those three additional seats would allow them to get up to the magical 60 number which would allow them to steamroller controversial legislation over Republican objections so long as all 60 held together or some Republicans sided with Democrats.

The Alaska Senate race is now looking more promising for the Democrats as Anchorage Mayor Mark Begich has taken the lead over federal convict Sen. Ted Stevens in the counting of the remaining ballots.

As the Anchorage Daily News reports:

Mark Begich made a dramatic comeback Wednesday to overtake 40-year incumbent Ted Stevens for the lead in Alaska's U.S. Senate race.

The state Division of Elections tallied about 60,000 absentee, early and questioned ballots from around the state on Wednesday. The ballots broke heavily in the Democrat's favor, erasing the 3,000-vote lead the Republican Stevens held after election night Nov. 4.

by Mark Silva

In Indiana, one of the remarkable battlegrounds where President-elect Barack Obama broadened his party's electoral base - defeating Republican John McCain by a vote of 1,370,189 to 1,343, 603 - Sen. Evan Bayh had once been considered part of a potential winning ticket that might be topped with Sen. Hillary Clinton of New York.

So Bayh, it seems, hasn't taken kindly to all the work that Sen. Joe Lieberman of Connecticut did on behalf of McCain's campaign - he might even have come close to becoming McCain's running mate, if the senior senator from Arizona had had his druthers, perhaps, rather than tacking to the right with the nomination of Alaska Gov. Sarah Palin.

(What would those potential gap-closing 29,209 voters in Indiana who went for Libertarian Bob Barr have done with a different set of tickets, McCain can only wonder.)

While Democrats ponder the fate of the independent Lieberman in the new and stronger Democratic Senate - with the proportion of the party's power still hanging on unresolved elections in Georgia, Minnesota and Alaska - Bayh suggests that Lieberman has to do one thing first:

Apologize.

"It is unusual territory,'' Bayh said on MSNBC's Rachel Maddow Show. "And you know, I was on another national show, one of the Sunday programs sitting right next to him when he basically said that Barack Obama was for defeat in Iraq. And I had to cut him off and say, Joe, that's not true. I mean, he said things that were simply unacceptable, and I think he needs to apologize for that.''

See the rest of the interview:

by Andrew Zajac

Senate Democrats face long odds to reach the 60 seats they crave to make their majority filibuster-proof, but you wouldn't know it from the intensity of the rhetoric in the run-up to the Dec. 2 run-off election in Georgia for the seat currently held by Republican Saxby Chambliss.

Chambliss was the top vote-getter but he fell just short of the 50 percent required for an outright win, so he's matched up against Democrat Jim Martin, whose party is still smarting from the hardball and some say below-the-belt tactics the GOP employed to dispatch the then-incumbent, Max Cleland, in 2002.

by Mark Silva and Ray Long

Illinois Sen. Dick Durbin, Majority Whip of the U.S. Senate and one of President-elect Barack Obama's best supporters, was asked today what fellow Democrats should do with that renegate Sen. Joe Lieberman of Connecticut, the independent who caucuses with the Democrats but campaigned hard for Republican John McCain.

"Here's the reality,'' Durbin said in an interview today. "The reality is that, at this moment, there are 57 Democratic senators. There are three races still in question--Georgia, Alaska and in Minnesota. And one may require a run-off in December.

"So at the end of the day, we may not have the 60 votes we need to enact measures in the Senate, and we will have to build on what we have. So every vote is important. That's the starting point,'' Durbin said.

"Secondly, despite what Sen. Lieberman did in campaigning for Sen. McCain and speaking at the Republican convention, he has voted with the Democrats an overwhelming percentage of the time,'' the Illinois Democrat noted. "What is going to happen is that we have asked three of our colleagues in the Senate--three Democratic senators, to make a recommendation, actually, it's four senators--to make a recommendation on what should be done with Sen. Lieberman.

"I don't know what the caucus will decide, '' Durbin said, "but we could take it up as early as next week."

by Frank James

Sen. Joe Lieberman's efforts to hold onto his Senate Homeland Security and Governmental Affairs chairmanship may be gaining Joementum.

TPM Election Central is reporting that Stepanie Cutter, an Obama transition spokeswoman, is sending public signals suggesting that President-elect Obama would just as well let bygone be bygones with the independent senator from Connecticut who was a vocal Sen. John McCain supporter.

Here's an excerpt from a posting from Greg Sargent of TPM:

"We aren't going to referee decisions about who should or should not be a committee chair," Obama transition spokesperson Stephanie Cutter emailed me, in response to questions about Obama's stance on Lieberman's future.

"President-elect Obama looks forward to working with anyone to move the country forward," Cutter continued. "We'd be happy to have Sen. Lieberman caucus with the Democrats. We don't hold any grudges."

by Mark Silva

CNBC's Donny Deutsch last night asked Rep. Jesse Jackson Jr. of Illinois if he'd be interested in an appointment to the opening seat of Sen. Barack Obama, who will be sworn in as president on Jan. 20.

"I'd be honored, I'd be humbled and yes, I would,'' Jackson replied on the cable network's The Big Idea with Donny Deutsch. "But it is the decision of the governor of the state of Illinois, he'll have to make that judgment.

"I have 13 years of service in the Congress, I have only missed two votes,'' Jackson said. "No Democrat or Republican can say that - I have a perfect voting record in Congress and I think I am up to the task.''

What will "Job One'' for the new president be?

"The economy. Returning comsumer confidence,' Jackson said. "We are suffering from an economic crisis that is two-fold. First, we have a liquidity problem and second we have an economic growth problem and I know that Barack Obama is focusing on both at this hour.

by James Oliphant

Sen. Joe Lieberman of Connecticut, who spent the weekend campaigning with Republican presidential nominee John McCain, has returned to Washington to face the music.

Lieberman, now an independent but for years a Democratic senator, still caucuses with Democrats and chairs the prestigious Homeland Security Committee.

That may change however. Democrats were not happy with Lieberman's support of his friend, McCain, and especially for his appearance at the Republican National Convention, where he questioned Barack Obama's fitness to be commander-in-chief. (See above.)

Lieberman met with Senate Majority Leader Harry Reid Thursday. After the meeting, Reid released a statement: "Today Senator Lieberman and I had the first of what I expect to be several conversations. No decisions have been made. While I understand that Senator Lieberman has voted with Democrats a majority of the time, his comments and actions have raised serious concerns among many in our caucus," Reid said. "I expect there to be additional discussions in the days to come, and Senator Lieberman and I will speak to our caucus in two weeks to discuss further steps."

But do the Dems still need Lieberman? It appears that they will have 56 solid votes in the next Senate, so a majority isn't a problem. But Lieberman's assistance will be crucial to reach the 60 votes necessary to overcome a filibuster, so Reid will have to play this carefully.

by James Oliphant

Democrats may have picked off another GOP seat in the Senate. This morning, the Oregonian, Portland's newspaper, is projecting that Jeff Merkley has unseated Republican incumbent Sen. Gordon Smith.

If that occurs, it would be the sixth Senate seat that Democrats have taken away from Republicans this election and would give them a 57-40 edge with three contests still undecided.

The newspaper based the projection on a mathematical analysis of the 340,000 votes that remain to be counted from counties that have leaned toward Merkley. Oregon's vote count has been agonizingly slow because that state uses mail-in ballots.

The results of the other three undecided Senate races won't be known for some time.

In Minnesota, Republican Sen. Norm Coleman and Democratic challenger Al Franken are separated now by just 477 votes. That margin guarantees a recount that will last weeks.

by Frank James

You thought the campaigning was over, right? Oh how wrong you are. In Washington, the campaigning never ends, it just takes different forms.

House Minority Leader John Boehner is fighting to keep his leadership job which is likely to be difficult since, following last night's electoral rout, Republicans are looking for new leaders and ideas to bring their party out of the political wilderness.

Boehner sent the following letter to House Republicans today. Consider it a plea for another chance.

November 5, 2008

America remains a center-right country. Democrats should not make the mistake of viewing Tuesday's results as a repudiation of conservatism or a validation of big government. Neither should we. Instead of throwing in the towel, as our opponents demand, we must redouble our efforts to develop forward-looking solutions to the challenges Americans face - solutions rooted in the enduring principles of reform that define us as a party. We need to focus on winning the issues, one by one, and presenting principled, superior alternatives that reflect the center-right priorities of the American people, rather than the self-serving priorities of Washington.

by Frank James

The Democrats made big gains in Congress last night though they didn't get to the 60 votes they needed to be able to get legislation or judicial nominations through the Senate without Republican cooperation.

At last count, they hold 56 seats, with Republican Sen. Norm Coleman getting 762 more votes in a tight-as-a-tick race in Minnesota. But there will be an automatic recount and the race may not be certified until December.

Here's an excerpt of an Associated Press report:

MINNEAPOLIS (AP) _ Republican Norm Coleman outlasted Democrat Al Franken in one of Minnesota's tightest Senate elections ever, squeaking past the former comedian early Wednesday by a margin that appeared certain to trigger a recount.

The margin was well within a threshold set by state law for an automatic recount. If it holds up, Coleman would be among the fortunate Republicans who survived big gains by Democrats nationwide.

by James Oliphant

Twelve Senate races are considered to be close this Election Day. The outcome could have a significant impact on the balance of power on the Hill. Democrats are chasing a 60-vote majority, which would allow them to break a Republican filibuster on any key piece of legislation.

Will they get to 60? Probably not. But the Democrats could grab enough seats to make filibusters difficult on anything that isn't a straight party-line vote.

Right now, the Senate is divided 49-49. Two senators, Joe Lieberman of Connecticut and Bernie Sanders of Vermont, are independents who largely vote with the Democrats.

A line of voters stretches around the corner as the polls open Tuesday, Nov. 4, 2008 in Surfside, Fla. (AP Photo/Wilfredo Lee)

by Frank James

Election Day is finally here! And what a most historic one at that. The nation will either elect its first African-American president or its first woman vice president. Most of the reputable polls in recent days suggest it will be the former.

We had expected long lines at polling places and those expectations are being met judging by reports we are seeing from the East Coast and southern states already open.

Besides whether the next president will be Barack Obama or John McCain by the end of the day (we hope), we should also know whether the Democrats will fully control Congress, with a Senate majority large enough -- 60 seats -- to allow them to pass legislation and approve judicial nominations over the objections of Senate Republicans.

An exciting day. An historic day. There are moments that are milestones; this is one of those times.

Make sure you get out to vote if you haven't already. That is a right too many Americans have fought, bled and died for on foreign shores as well as our own, for it to be taken lightly.

by James Oliphant

Congressional Democrats appear close to having something they haven't known for a long time: power.

After being marginalized by the Bush administration and stymied by a cohesive Republican minority, Democrats on the Hill look poised to score significant gains Tuesday in the House and Senate. As a result, they may be in a position to shape the near-term policy agenda, regardless of whether Republican John McCain or Democrat Barack Obama wins the presidency.

Estimates have Democrats picking up between six and 10 seats in the Senate and perhaps 20 to 30 seats in the House (more if everything breaks their way), which would give them a commanding majority.

The margin in the Senate is particularly significant. While the Democrats are ostensibly in control now by the slimmest degree, the body has been largely paralyzed by partisan discord and the inability to build cross-party coalitions. That has allowed Republicans to block any major piece of legislation they oppose.

by Frank James

I meant to get this one up earlier. Sen. Ted Stevens, who was recently convicted in federal court of failure to disclose gifts as required by federal law has his good friend, Democratic Sen. Daniel Inouye of Hawaii, vouching for him.

Inouye issued a statement saying that Stevens would get to stay in the Senate, a statement meant to neutralize assertions by Stevens' Democratic opponent for his Senate seat, Anchorage, Alaska Mayor Mark Begich, that Stevens would be ousted from the Senate because of his conviction.

This is from a press release issued by Stevens' office:

Senator Daniel K. Inouye (D-Hawaii), a 42-year veteran of the Senate and a revered Democrat in Congress, today told Alaskans that Senator Ted Stevens (R-Alaska) will retain his Senate seat while the legal process moves forward. Senator Inouye also echoed the sentiment of legal scholars across the United States saying that Senator Stevens will be vindicated through an appeal.

Sen. Ted Stevens, right, answers a question during a congressional debate in Anchorage, Alaska Thursday Oct. 30, 2008 as Democrat candidate Anchorage Mayor Mark Begich listens. (AP Photo/Al Grillo)

by Frank James

The freshly minted convict Sen. Ted Stevens had a debate in Alaska last night against Anchorage Mayor Mark Begich. One of the most interesting parts of the debate came early when the longest-serving Republican senator said he wasn't convicted.

He was asked what he would tell the Republican presidential ticket Sen. John McCain and Alaska Gov. Sarah Palin who have both called on him to resign following his being convicted by a jury in federal district court on seven counts of failing to disclose gifts on his Senate disclosure forms.

He answered with this whopper:

I have not been convicted of anything.

I would have to say John, and, and Sarah, I understand.

When an incredulous reporter asked him if the reporter had heard him correctly, was the senator really saying that McCain and Palin were cynically calling for his resignation for merely political reasons, Stevens said "yes."

by Frank James

The U.S. Senate race in North Carolina between incumbent Sen. Elizabeth Dole and Kay Hagan is so close that Dole has resorted to a much-discussed TV ad that tries to link the Democrat to "Godless Americans"

Hagen has responded with her own ad, accusing Dole of violating the Ninth Commandment against bearing false witness.

One way of looking at this is obviously the way most people have, which is that Dole is so desperate that she's resorted to a ridiculously outrageous ad in a last-ditch attempt to stay in her Senate seat.

Another way to look at it, however, is as a testament to how far away North Carolina has moved away from the racial politics of Jesse Helms. An African-American is at the top of the ballot for Democrats this year, yet he's not the focus of the flailing, last-minute Dole ad. Who would have believed that just a few short years ago?