From NBC's John Yang
The Obama transition office and First Lady Laura Bush's office confirms that Michelle Obama, her mother, Marion Robinson, and her two daughters, Malia and Sasha, will be visiting the White House, their new home, this afternoon.

Michelle Obama didn't want to take the girls out of school when she and the President-elect visited last week and Laura Bush invited Michelle Obama back when the girls could come.

The First Lady's office says there will be no photo released.

From NBC's Pete Williams
President-elect Obama has offered Eric Holder the position of attorney general, and Holder has accepted it, according to sources involved in the process. The formal announcement has been held up while Obama transition team members ran the idea past key senators. And Obama wanted to announce members of his financial team first -- Treasury Secretary and so on.

Holder is a former superior court judge and U.S. attorney in Washington and a former prosecutor in the Public Integrity section of the Justice Department. He was Deputy Attorney General under Janet Reno, during which he was well regarded. At one point, he strongly considered running for mayor of Washington, D.C., but decided being the No. 2 official at Justice was too good to pass up.

He also led the search team for Obama's running mate.

His only potential hang-up for confirmation is the controversy over the pardon of Marc Rich in the closing hours of the Clinton administration. Holder approved the pardon as acting attorney general, after Reno left, without paying much attention to it, and it turned out to be a big embarrassment to Clinton. 

So far, the Hill response to Holder has been positive, officials say.

The offer to Holder was made last week, officials say, and he accepted it, conditioned on a good reception from the Hill. So this is as close to a done deal as it can get before it's announced.

*** UPDATE *** NBC's Chris Donovan adds that Holder has held three jobs over his career that required U.S. Senate confirmation and he has yet to see a recorded vote against him.

In July 1997 he was confirmed by the U.S. Senate by a roll call vote of 100-0 for the job of Deputy Attorney General.

In September 1993 he was confirmed by the U.S. Senate by Voice Vote for the job of U.S. Attorney for D.C.

In October 1988 he was confirmed by the U.S. Senate by Unanimous Consent for the job of Associate Judge of Superior Court of D.C.

[excerpt]
From NBC's Carrie Dann
Sen. John Cornyn says that he's ready to "hit the ground running" in his new post as the Chairman of the National Republican Senatorial Committee.

Cornyn, a Texas senator since 2002 and the state's former Attorney General, could be the second Texan in Republican Party elective leadership should Rep. Pete Sessions beat Rep. Tom Cole for the top spot in the NRCC.  Cornyn's ascension to the post as the Senate's top elections architect comes as some Republicans worry aloud that the GOP has become increasingly limited to Southern states and that the party is losing ground in the Mountain West and the Northeast.
 
In his new role, Cornyn will have to oversee a coming election cycle in which Republicans could stand to weather further losses.  Among GOPers whose 2010 races are shaping up as potential nailbiters are Sen. Mel Martinez of Florida, Sen. Jim Bunning of Kentucky, and Sen. Judd Gregg of New Hampshire. 

In a statement, Cornyn vowed to dive into the new job, starting by aiding his Republican colleagues who are locked in unresolved reelection races. 
 
"This is a critical time for Republicans in the Senate and across the country, particularly as Democrats stand on the doorstep of a super-majority in the Congress," Cornyn said in the press release, warning of dire legislative consequences if Democrats are to reach the 60-vote filibuster-proof threshold in the U.S Senate.

The Texas Senator, who sits on the Armed Services and Judiciary Committees, was elected unanimously to fill the post previously held by Nevada Sen. John Ensign, who in turn is running to lead the Senate's Policy Committee. Republican Norm Coleman had previously indicated that he would run for the NRSC job but withdrew when his reelection run against Al Franken was thrown into a high-stakes recount.
 
Cornyn himself survived a reelection challenge from Democrat Rick Noriega, who blasted the Texas Senator during the election season on his closeness to George W. Bush and his backing of the $700 billion economic bailout plan passed in October.   Cornyn's campaign manager in that race, Rob Jesmer, will serve as the Executive Director of the NRSC.

Here's the full release:

WASHINGTON--U.S. Sen. John Cornyn, R-Texas, made the following statement regarding his unanimous election today by the Senate Republican Conference to serve as the Chairman of the National Republican Senatorial Committee (NRSC) for the 2010 election cycle.

"I am honored by the confidence my Republican colleagues have placed in me to serve as the next Chairman of the NRSC.  This is a critical time for Republicans in the Senate and across the country, particularly as Democrats stand on the doorstep of a super-majority in the Congress.  If that is allowed to happen, the Democratic Congress will have unchecked authority to raise taxes, diminish our military's readiness, and continue Washington's unaccountable spending spree.  We must have checks and balances because the American people deserve accountability from Washington now more than ever.  To that end, I will continue to do whatever I can in the days ahead to help our Republican candidates emerge victorious in the outstanding Senate races.  

"At the same time, I intend to hit the ground running and start laying the ground work with my colleagues for Republican victories in 2010.  We must ensure our Party has the candidates and the financial resources to effectively communicate our positive vision for our country.  There is simply no time to waste, and I will work as hard as possible in my capacity as NRSC Chair to help move our Party forward.

Sen. Cornyn also announced today that Rob Jesmer will serve as Executive Director of the NRSC.   Jesmer, who managed Sen. Cornyn's strong re-election victory in Texas earlier this month, is a seasoned political operative with an extensive background managing and consulting in Republican races across the country.  Prior to his most recent position, Jesmer served as a Regional Political Director for the Southeast Region at the Republican National Committee for the 2006 election cycle, Chief of Staff to Congressman Mike Rogers (R-AL) and as National Field Director for the National Republican Congressional Campaign Committee for the 2002 election cycle. 

"I am very impressed with the political acumen, intelligence and work ethic that Rob displayed in managing my recent re-election victory.  Those qualities, coupled with his extensive leadership experience working on campaigns across the country, will be an invaluable asset for the NRSC moving forward," Sen. Cornyn said. 

From NBC's Domenico Montanaro
Democrats in Congress have allowed Joe Lieberman to hold onto his powerful chairmanship of the Homeland Security Committee in a secret ballot vote.

Video: Sen. Joe Lieberman and Senate Majority Leader Harry Reid speak to reporters after the Democratic caucus voted Tuesday to let Lieberman keep his committee chairmanship.

Majority Leader Harry Reid, however, asked the Connecticut senator to step down as chairman of the Private Sector and Consumer Solutions to Global Warming and Wildlife Protection subcommittee of the Environmental & Public Works Committee, which Lieberman said he did.

Lieberman, who caucuses with the Democrats, retains his AirLand subcommitte chairmanship of the Armed Services Committee.

Lieberman said he regretted some of his comments regarding President-elect Obama during the campaign trail, or that he would have liked to have made them more clearly.

From NBC's Mark Murray
Politico's Ben Smith reports that the current focus of the Obama-Clinton negotiations over Bill Clinton's foundation and presidential library is looking forward --not necessarily vetting the past.

Still, it's worth remembering that during the primary season, Obama called for the disclosure of presidential library donors. Consider this exchange from the MSNBC debate at Dartmouth in September 2007:

RUSSERT: In light of that, do you believe that the Clinton Foundation and the Clinton library should publish all the donors who give contributions to those two entities?
CLINTON: Well, Tim, I actually co-sponsored legislation that would have sitting presidents reveal any donation to their presidential library, and I think that's a good policy.
RUSSERT: And the foundation?
CLINTON: Well, it would be the same, because that's where the library comes from.
RUSSERT: Until such legislation, would they voluntarily, the Clinton library and Clinton Foundation, make their donors public?
CLINTON: Well, you'll have to ask them.
RUSSERT: What's your recommendation?
CLINTON: Well, I don't talk about my private conversations with my husband, but I'm sure he'd be happy to consider that.
RUSSERT: Is there anyone here who doesn't believe that presidential libraries and presidential foundations should make public all their donors?
OBAMA: I just want to amplify on this issue. Because I think it's important not only that all this information is disclosed, but I also think that we need to have a situation in which we are disclosing the funneling of large donors.
And that is something that we were able to successfully do. I pushed it with Russ Feingold to make sure that large funnelers who were lobbyists were disclosed.
We are now in the process of presenting a bill where any large bundler has to disclose who they're bundling money from and who are they funneling it to. And I think that should be passed right away. 

From Chuck Todd, Mark Murray, Domenico Montanaro, and Carrie Dann
*** Joe the Chairman? If the news is correct, then the liberal blogosphere isn't going to be happy. NBC's Ken Strickland reported yesterday that, according to sources familiar with the negotiations, Democrats today are expected to vote in favor of letting Joe Lieberman keep his chairmanship of the Senate Homeland Security Committee -- but give up the gavel on a subcommittee he chairs. (The vote happens this morning by secret ballot, and Lieberman is expected to address Senate Democrats before they vote. Per Strickland, we should know the final outcome by late morning.) So what happened? First, Strick says, Obama told Senate Majority Leader Harry Reid that he wanted Lieberman to stay in the Democratic caucus. Later, Lieberman told Reid it would be "unacceptable" for him to give up his gavel, which was considered by some as a veiled threat that Lieberman would jump to caucus with Republicans if he was forced to give up the gavel. In short, Obama tipped the scales in Lieberman's favor, one source said, explaining it this way: If the wrath was directed at Obama, and he got over it, shouldn't the Democratic caucus do the same? 

*** Obama's first test with the left: The news that Obama is the one mainly responsible for the wrist slap that Lieberman is expected to receive -- as well as the continued speculation that the president-elect is inching closer towards selecting Hillary Clinton as his secretary of state -- is really going to test Obama's base. Many of the true believers aren't going to be happy campers. Then again, with some pundits suggesting that Obama's initial moves (picking Rahm Emanuel as his chief of staff, courting the Clintons) don't really signal the change he promised to bring to Washington, isn't it precisely change that Lieberman is about to go unpunished? After all, one of Obama's messages was to put the bitter partisanship of the last 16 years behind us. Does anyone think that a Clinton or a Bush Administration would be as forgiving?

Video: President elect Barack Obama's credo 'no drama Obama' is being tested early as he eyes Sen. Hillary Clinton for Sec. of State and Senate Democrats decide Joe Lieberman's fate. NBC's Chuck Todd reports.

Also, as Maureen Dowd wrote on Sunday, Obama bringing in Hillary as his secretary of state doesn't represent the return of the Clintons; it says the opposite. "If you have a president who's willing to open up his universe to other smart, strong people, if you have a big dog who shares his food dish, the Bill Clinton era is truly over." One more point about Lieberman going unpunished: Could Obama truly meet with McCain yesterday in a sign of bipartisanship as Obama and Senate Democrats plotted to take away Lieberman's gavel at the Homeland Security committee? By the way, imagine what this week would be like in the press corps had a more severe Lieberman punishment been on the docket. Talk about your drama.

*** When rivals meet: Speaking of yesterday's Obama-McCain meeting, does the fact that nothing concrete leaked out mean nothing concrete was worked out? Also, it was supposed to be a 90-minute meeting, so why did it end up only 40 minutes. Not a good sign?

*** "V" is for Vetting: For the second day in a row, the vetting of Bill Clinton dominates the chatter about Hillary's chances of becoming secretary of state. Today's New York Times doesn't feature just any byline -- but one that has given the Clintons particular heartburn: Don Van Natta Jr. How much stomach will Team Obama have for a Van Natta (or potentially a Michael Isikoff) sniffing around the Clintons?

*** Bailing out the bailout: In addition to today's vote on Lieberman, the other big news on Capitol Hill is today's testimony by the Big Three US automakers and the United Auto Workers in favor of a bailout. There is still a split between the two political parties on this issue. As the New York Times writes, "A showdown vote over the auto deal is set for Wednesday, and at the moment Democrats appear short of the 60 votes they need to move ahead, meaning the session is likely to be abbreviated." The New York Times also has a very good separate piece about how the political power for the entire auto industry -- from the corporate heads to the labor unions -- is waning. By the way, how much does the perceived failure (to date) of the $700 billion financial bailout hurt the auto industry's chances of their own bailout? Why should any member of Congress feel comfortable about voting for an auto bailout if the one of the financial services industry hasn't worked out as planned? 

*** Playing defense: As for the $700 billion bailout, Treasury Secretary Hank Paulson has an op-ed today defending his actions. "I am very proud of the decisive actions by the Treasury Department, the Federal Reserve and the F.D.I.C. to stabilize our financial system," he writes. "We have done what was necessary as facts and conditions in the market and economy have changed, adjusting our strategy to most effectively address the crisis. We have preserved the flexibility of President-elect Barack Obama and the new secretary of the Treasury to address the challenges in the economy and capital markets they will face. As policymakers face the difficult challenges ahead, they will begin with two considerable advantages: a significantly more stable banking system, one where the failure of a major bank is no longer a pressing concern; and the resources, authority and potential programs available to deal with the future capital and liquidity needs of credit providers."

*** The remaining races: In Alaska, election workers will count approximately 24,000 ballots today, which could give us a clearer picture in a race where challenger Mark Begich (D) currently leads incumbent Sen. Ted Stevens by 1,022 votes. After today, overseas ballots will remain to be counted, and the process, according to the Anchorage Daily News, will last through the week of December 1… In Georgia, early voting began yesterday for the Chambliss-Martin Senate run-off, and there were reports of some lines (the turnout of the youth and black vote in this runoff, by the way, will be the ultimate test of Obama's base; have they become permanently engaged in the overall political process or only engaged in Obama individually?)… And in Minnesota, the five-member state canvassing board meets today to officially certify the original results in the Coleman-Franken race, with the manual recount beginning tomorrow. 
 
Countdown to Georgia Senate run-off: 14 days
Countdown to Electoral Vote Count: 51 days
Countdown to Inauguration Day 2009: 63 days

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Per the transition office, Obama and Biden hold private meetings in Chicago today and have no public events. 

Speculation over Hillary Clinton becoming Obama's secretary of state continues to dominate the transition chatter. The New York Times has this piece (and it's not your ordinary story; it's by investigative reporters Van Natta and Becker): "While aides to the president-elect declined Monday to discuss what sort of requirements would make it possible for Mrs. Clinton to serve as secretary of state, they said Mr. Obama would not formally offer her the job unless he was satisfied that there would be no conflicts posed by Mr. Clinton's activities abroad."

Video: Former White House Chief of Staff discusses the transfer of power to Barack Obama and what it would mean for both Clintons if Hillary Clinton was chosen as secretary of state.

"Associates of the Clintons said that Mr. Clinton was likely to have to make significant concessions and that he was inclined to do so. Among other things, they said, he would probably have to agree not to take money for speeches from foreign businesses that have a stake in the actions of the American government. Another obvious issue, Democratic lawyers said, would be whether Mr. Clinton's foundation should accept money from foreign governments, businesses or individuals for the foundation's philanthropic activities and if it should disclose those donors publicly."

But Politico says the vetting of Bill Clinton is not going well. Obama "aides are becoming exasperated by the Clinton camp's pokey response to demands for extensive information about former President Bill Clinton's finances, according to numerous Democrats involved in the process. 'The sense among the no-drama Obama world is: This is well on its way to winning best Oscar for drama,' said one well-connected Democratic official." 

More: Democratic officials make it sound as if the job has been all but offered to Hillary Clinton. But the ball is in her court to show that the former president's many foreign and financial entanglements would not pose huge conflicts of interest if she were the nation's chief diplomat, the officials said."

Channeling First Read, the Boston Globe notes the would-be irony if Obama were to pick Clinton to be secretary of state. "[H]e would be giving her oversight of an area where the two former rivals diverged sharply during their prolonged primary battle: foreign policy… It is the one arena in which Obama and Clinton articulated significantly different visions."

Politico's Ben Smith adds, "From his supporters on the progressive wing of the Democratic Party, to campaign aides of the soon-to-be commander-in-chief, there's a sense of ambivalence about giving a top political plum to a woman they spent 18 months hammering as the compromised standard-bearer of an era that deserves to be forgotten."

Bloomberg News reports that Gates' chances of staying on at the Pentagon rise if Clinton is tapped as secretary of state. Do note the very positive words that Jack Reed, someone Obama relies on for national security advice, has for Gates.

The Washington Post delves into the overall vetting process for every Obama appointee. "Inquiries into candidates' backgrounds grow deeper as each administration's scandals add new thresholds. In the 1980s, a history of marijuana use killed some nominations. During the past decade, scandals about domestic workers clouded transitions. Clinton's nominee for attorney general, Zoe Baird, withdrew from consideration when it became public that she and her husband had hired a Peruvian couple living in the country illegally as a babysitter and chauffeur. Eight years later, Bush's nominee for secretary of labor, Linda Chavez, withdrew after she was found to have provided haven to an illegal immigrant from Guatemala. Obama's questionnaire has four questions about domestic workers."

The Washington Post also notes the number of aides being hired by Obama who have Capitol Hill experience, and it speculates this could mean that Obama ends up with a better relationship with the Hill than any previous president in quite some time. 
 
USA Today dives into the choices Obama has for picking a church.

OUR OBAMA CABINET SPECULATION LIST:
Chief of staff: Emanuel NAMED / Deputies: Jim Messina NAMED, Mona Sutphen NAMED:
Senior advisers: Valerie Jarrett NAMED, Peter Rouse NAMED
Assistant to the president for legislative affairs: Phil Schiliro NAMED
White House counsel: Greg Craig
Press Secretary: Robert Gibbs
Biden chief of staff: Ron Klain NAMED
 
POTENTIAL CABINET MEMBERS:
Agriculture: Tom Vilsack, Tom Buis (Natl Farmers Union), Charlie Stenholm, Jim Leach, Stephanie Herseth Sandlin
Commerce: Penny Pritzker, Kathleen Sebelius, John Thompson (Symantec), Ron Kirk (former Dallas Mayor), Scott Harris (Harris, Wiltshire & Grannis fndr)
Defense: Robert Gates, Richard Danzig, Chuck Hagel, Sam Nunn, Jack Reed, Colin Powell, John Hamre, Tim Roemer, Thomas Pickering, Anthony Zinni
Education: Joel Klein (NYC), Linda Darling-Hammond, Kathleen Sebelius, Colin Powell, Jim Hunt, Arne Duncan, Inez Tenenbaum, Michael Bennett, George Miller
Energy: Kathleen Sebelius, Philip Sharp, Ed Rendell, Arnold Schwarzenegger (has said no), Al Gore, Jeff Bingaman, Jennifer Granholm, Steve Westly, Frederico Pena, Dan Reicher, Jason Grumet
HHS: Tom Daschle, Howard Dean (reportedly ruled out), Eric Whitaker Homeland Security: Tim Roemer, Ray Kelly, James Lee Witt, Tom Kean Sr, Jane Harman, Janet Napolitano, Artur Davis
HUD: Jim Clyburn, Shirley Franklin (Atlanta mayor)
Interior: Bill Richardson, Jay Inslee, John Kitzhaber, Tony Knowles, Ken Salazar, Jamie Rappoport Clark, Brian Schweitzer
Justice (AG): Eric Holder, Janet Napolitano, Charles Ogletree, Deval Patrick, James Comey, Patrick Fitzgerald, Artur Davis, Tim Kaine, Jamie Gorelick (but was vice chair of Fannie), Ken Feinberg, Cass Sunstein, Kathleen Sullivan (Stanford Law prof, possible Solicitor General. Also possible SGs: Beth Brinkmann – DC Atty; Preeta Bansal – Skadden, Arps; Elena Kagan –Harvard law dean; Pamela Karlan—Stanford; Teresa Wynn Roseborough -- MetLife litigation counsel)
Labor: Andy Stern (SEIU) (said not interested), Richard Gephardt, George Miller, David Bonior
State: John Kerry, Bill Richardson, Richard Lugar, Chuck Hagel, Richard Holbrooke, Chris Dodd, Hillary Clinton, Thomas Pickering
Transportation: Ed Rendell, Jane Garvey, Mortimer Downey, Earl Blumenauer, Steve Heminger, James Oberstar
Treasury: Larry Summers, Tim Geithner, Paul Volcker, Robert Rubin, Jon Corzine, Warren Buffett, Michael Bloomberg, Laura Tyson, Jamie Dimon (JP MorganChase), Jacob "Jack" Lew, Sheila Bair, Indira Nooyi,
Veterans Affairs: Max Cleland, Tammy Duckworth
 
OTHER POSITIONS:
CIA: Tony Lake, John Brennan
DNI: Tony Lake, John Brennan, Tim Roemer, Rand Beers, Jane Harman, John Abizaid, Evan Bayh
FEMA: James Lee Witt
EPA: Howard Learner (Pres, Exec. Dir, Environmental Law and Policy Center), Ian Bowles (MA), Robert F. Kennedy Jr., Kathleen Sebelius, Kathleen McGinty (former secretary of Pennsylvania's Department of Environmental Protection), Mary Nichols (chair of California's Air Resources Board), Robert Sussman, Dan Esty
FBI: Robert Mueller (term expires 2011)
Fed Chair: Ben Bernanke (at least for first year)
FDA: Steven Nissen (Cleveland Clinic), Joshua Sharfstein (Baltimore health commissioner), Janet Woodcock (Big Pharma's choice), Susan Wood (GWU occupational and environmental health professor), Diana Zuckerman (president, National Research Center for Women & Families)
Natl. Economic Council: Jason Furman, Austan Goolsbee, Laura Tyson Natl Sec Adviser: Jim Steinberg, Rand Beers, Susan Rice, Greg Craig
NSC: Dennis Ross, Susan Rice, Tony Lake
OMB: John Spratt Jr., Gene Sperling, Jason Furman Peace Corps: Chris Shays
UN Ambassador: Caroline Kennedy, Susan Rice
USTR: Cal Dooley (American Chemistry Council president), Daniel K. Tarullo (Georgetown University law professor), Lael Brainard (Brookings Institution vice president)
 
Other mentions for various White House staff posts: Patti Solis Doyle, David Wilhelm, John Rogers, Bill Daley, Cass Sunstein, Bob Bauer (WH counsel), Michael Froman, Federico Pena, Lawrence J. Korb, Carol Browner (Clinton's EPA head), Thomas Perrelli, David Ogden, Terry Tamminen (climate change, adviser to Schwarzenegger)

The AP's lead on yesterday's meeting: "No longer foes but not yet allies, President-elect Barack Obama and Sen. John McCain buried their bitter campaign in public smiles and searched for common ground in private on Monday, discussing possible collaboration on climate change, immigration, Guantanamo Bay and more."
 
The New York Times notes that Obama's promises on domestic spying issue will be put to an early test. "The Justice Department will be asked to respond to motions in legal challenges to the National Security Agency's wiretapping program, and must decide whether to continue the tactics used by the Bush administration — which has used broad claims of national security and 'state secrets' to try to derail the challenges — or instead agree to disclose publicly more information about how the program was run.

Video: President-elect Barack Obama and his former rival for the White House, Sen. John McCain, meet at Obama's transition headquarters in Chicago. NBC's Savannah Guthrie reports.

When he takes office, Mr. Obama will inherit greater power in domestic spying power than any other new president in more than 30 years, but he may find himself in an awkward position as he weighs how to wield it. As a presidential candidate, he condemned the N.S.A. operation as illegal, and threatened to filibuster a bill that would grant the government expanded surveillance powers and provide immunity to phone companies that helped in the Bush administration's program of wiretapping without warrants. But Mr. Obama switched positions and ultimately supported the measure in the Senate, angering liberal supporters who accused him of bowing to pressure from the right."

Health Care for America Now, the advocacy group pushing for universal health care, will today begin airing this brand-new TV ad in the DC area.

The AP outlines some of Palin's challenges as she heads back to governing in Alaska. Among them: "Palin's state budget proposal is due in a month, with plummeting oil prices slashing Alaska's revenues by billions of dollars. The 1,700-mile natural gas pipeline she bragged about on the campaign trail ... is nowhere near being built. Some hard feelings linger over her administration's initial decision to ignore subpoenas in the investigation of whether she abused her power in firing the public safety commissioner who wouldn't oust her ex-brother-in-law from his job as a state trooper." And: "Uncertain is whether the bipartisanship that existed during Palin's 20 months as governor can survive the heated rhetoric from the presidential campaign and her own political ambitions."

The Washington Post: "A pair of Senate Democrats will offer a compromise plan today to sanction Sen. Joseph I. Lieberman (I-Conn.) for his support of the Republican presidential ticket but allow him to keep a key committee chairmanship and remain in the party caucus. Senators and aides said yesterday that Sens. Christopher J. Dodd (Conn.) and Ken Salazar (Colo.) will present a plan at a caucus meeting that would strip Lieberman of a low-profile subcommittee chairmanship, possibly one on global warming. But Lieberman would retain the gavel of the Homeland Security and Governmental Affairs Committee."

More: "No final decisions have been made, and senators who support stronger punishment of Lieberman are expected to have a chance to express their views."

Roll Call adds that "Democrats appeared to lose their nerve after the election when Obama and other influential Democrats called on the party to forgive and forget Lieberman's harsh criticism of the president-elect during campaign appearances for Republican presidential nominee Sen. John McCain (Ariz.). Senate Democratic sources cautioned that that proposal might change depending on the outcome of discussions this morning. Lieberman is expected to make his case to the entire Senate Democratic Conference — including newly elected Senators — during a meeting in which the caucus will also elect their leaders for the next Congress." 

Ted Kennedy returned to Capitol Hill yesterday. "[O]verall, Kennedy looked remarkably spry for a man battling a malignant glioma, a fast-growing brain tumor that was diagnosed after Kennedy had a seizure in May," the Boston Globe writes. "His color was strong, and he sported a full head of his characteristic white hair. He appeared to have lost a substantial amount of weight and displayed none of the puffiness he showed during his last appearance on Capitol Hill on July 9, when he made an emotion- laden visit to cast a critical vote on a Medicare funding bill. While the senator is still receiving treatment, he didn't look tired as he prepared to get to work on issues facing the incoming Congress, with healthcare as his stated top priority."

Meanwhile, Senate Republicans may avoid taking on a hot topic at today's Conference meeting: whether or not to vote to expel Sen. Ted Stevens from their caucus. 

Steny Hoyer, the House's No. 2 Democrat, will give a speech at the National Press Club today at 10:00 am ET. With the House leadership elections today, and with many thinking they'll signify a shift to the left, an aide says Hoyer will argue that Democrats must be pragmatic instead of dogmatic. "The 33 new members of Congress coming to Washington to swell our side of the aisle are pragmatic, not dogmatic. They were elected on promises of bipartisanship and fiscal discipline. They were elected, quite simply, to solve problems, not further politicize Washington," he will say, according to excerpts. "Democrats won in every region of the country, and our nominee for president won more than 50% of the vote. For the first time in decades, we are true national majority party -- and if we want to stay that way, we must govern like one."

About policy, Hoyer will add: "Smart spending can help us get back to long-term fiscal health. Spending wisely today can save us money tomorrow. That is why our country needs far-reaching proposals, even in this recession. In the broad sense, fiscal responsibility should be at the core of our entire governing philosophy." 

The Hill also previews Hoyer's speech.

ALASKA: The Anchorage Daily News says that election workers today "will count 24,000 votes from Anchorage, the Kenai Peninsula, Southwest and Southeast Alaska." Challenger Mark Begich (D) currently has a 1,022-vote lead over incumbent Sen. Ted Stevens (R).

Some more Q&As from the Anchorage Daily News. "What happens after today's count? Absentee ballots arrive from overseas through Wednesday. When will it be final? Week of Dec. 1. Then what? Recount if the voters or loser asks."

GEORGIA: Early voting began yesterday for the run-off between Sen. Saxby Chambliss (R) and challenger Jim Martin (D), the Atlanta Journal-Constitution says. The run-off "apparently was enough to bring early voters to the polls on Monday, the first day most metro Atlanta counties opened offices for early voting. Elections officials across the region reported steady voting and, in some places, lines."

Political headwinds certainly didn't help Chambliss hold off Martin in the Georgia Senate race, which will be decided in a Dec. 2 runoff. Roll Call: "But some state Republicans are also casting blame on what they describe as a poorly run campaign that had to be resuscitated in the final weeks before the November election by a National Republican Senatorial Committee that already had plenty of other contests to worry about. One Georgia Republican insider last week pointed the finger at Chambliss' longtime political strategist Tom Perdue for putting together a weak direct-mail program and 'substandard' and 'impersonal' television commercials during the crucial late summer and fall months." 

MINNESOTA: In a release yesterday, Minnesota Secretary of State Mark Ritchie announced that his office "will post daily recount results beginning Wednesday, Nov. 19 after 8 p.m. The results will include the tally of uncontested votes for Coleman and Franken, a tally of the 'other' uncontested votes, and tallies of the ballots challenged by each candidate. The Web site will also post the percentage of precincts recounted and the percent of ballots recounted. The public is welcome to view the recount webpage at: www.sos.state.mn.us. The recount page will be updated everyday at 8 p.m… The numbers will remain unofficial until the results are certified by the State Canvassing Board which is scheduled to begin meeting on Dec. 16."

The AP writes, "Al Franken's Senate campaign, trailing slightly just before a statewide recount, argued Monday that a key Minnesota election board should examine rejected absentee ballots before certifying the race results. Those ballots are at the heart of legal and procedural disputes that have emerged as the near-deadlocked election moves into this week's manual recount of more than 2.9 million ballots. Republican Sen. Norm Coleman leads by 206 votes - a lead so slim that it triggered the automatic recount."

New York Sen. Chuck Schumer, who is up for re-election in 2010, appears to finally be ready to give up the DSCC gavel. His likely successor is New Jersey Sen. Bob Menendez. "Menendez, Schumer's No. 2 at the DSCC during the 2008 cycle, has been viewed as Schumer's heir apparent for the past two years, with no other names receiving consistent mention. Menendez would have his work cut out for him, succeeding the aggressive New Yorker who helped Senate Democrats first claim, and then expand, their majority. Despite the fact that Schumer is up for re-election in 2010, some Democratic insiders are not fully convinced he is ready to give up control of the DSCC. Some Democratic sources even go so far as to predict that Schumer will retain the chairmanship." 
 
A new Quinnipiac poll in Florida shows that GOP Gov. Charlie Crist ends 2008 in pretty good political shape considering the drubbing his party took in his state and nationally. But GOP Sen. Mel Martinez, who is also up for re-election in 2010, doesn't sport the type of poll ratings that indicate he'll be safe. Ambitious Dems may look at this poll and decide Martinez is the GOPer to challenge in Florida -- not Crist. 
 
Speaking of 2010 polls, one in New York that matches up Gov. David Paterson (D) and Rudy Giuliani (R) shows Paterson sporting a narrow 49%-43% lead.

From NBC's Ken Strickland
Tomorrow, Senate Democrats gather to decide if Sen. Joe Lieberman (I-D) should keep his position as chairman of Homeland Security Committee, and it looks like he just may. Several Democrats and Democratic-leaning groups were calling for Lieberman to stripped of his chairmanship for not only supporting John McCain's candidacy for president -- but also criticizing Barack Obama in the process. 

According to sources familiar with negotiations, Democrats are expected to vote in favor of letting the Connecticut senator keep his chairmanship and seniority, but give up the gavel on a subcommittee he chairs. The vote happens tomorrow morning by secret ballot.

The tide turned in Lieberman's favor, sources say, after two events in recent weeks.  First, President-elect Obama told Senate Majority Leader Harry Reid that he wanted Lieberman to stay in the Democratic caucus. Later, in a meeting with Senate Majority Leader Harry Reid, Lieberman told him it would be "unacceptable" for him to give up his gavel. That was considered by some as a veiled threat that Lieberman would jump to caucus with Republicans if he was forced to give up the gavel.

Obama tipped the scales in Lieberman's favor, one source said. The source essentially explained it like this: If the wrath was directed at Obama and got over it, shouldn't the Democratic caucus do the same? 

From NBC's Ken Strickland and Domenico Montanaro
Sen. Ted Kennedy returned to Capitol Hill today and briefly took questions. Kennedy, who is pushing his health-care reform plan, said he felt fine. The Massachusetts senator said he is confident President-elect Obama will take up health care as one of his priorities, though he recognized that the economy will be a pressing issue for the 44th president.

The Massachusetts senator is expected back tomorrow for leadership votes and may meet later in the week with other Senators to talk health-care reform.

NOTES: Kennedy's return today is exactly six months after he had his first seizure. … Kennedy walks with a cane that belonged to his father and is the same cane he used after the 1964 plane crash. Kennedy has also, in the past, loaned the cane out to other Senate colleagues like Chris Dodd and John Warner.

From NBC's Domenico Montanaro
Former rivals Obama and McCain put out a joint statement following their meeting in Chicago:

"At this defining moment in history, we believe that Americans of all parties want and need their leaders to come together and change the bad habits of Washington so that we can solve the common and urgent challenges of our time. It is in this spirit that we had a productive conversation today about the need to launch a new era of reform where we take on government waste and bitter partisanship in Washington in order to restore trust in government, and bring back prosperity and opportunity for every hardworking American family. We hope to work together in the days and months ahead on critical challenges like solving our financial crisis, creating a new energy economy, and protecting our nation's security."

Following the meeting, NBC's Kelly O'Donnell reports, McCain was back in Washington, as he returned to his Senate office. Perhaps the final event of his presidential campaign happens tonight, as McCain hosts a party in Virginia to thank the campaign staff.

From NBC's CarrollAnn Mears
WASHINGTON -- Sen. Dianne Feinstein (D-CA) announced legislation that should be voted on this week to prohibit the sale and counterfeiting of tickets for the inaugural. She said inaugural tickets "are not issues of commerce."

"Excitement is at an all-time high," said Feinstein, chair of the Senate Rules Committee and as such is in charge of the Inauguration of the President. "People are desperate to be part of it."

She also said there could be "as many as 1.5 million people descend on the capital."

The legislation would treat the selling of tickets for the Obama inaugural as a Class A misdemeanor with a fine and/or imprisonment for up to a year. Tickets to the inaugural are not yet available.

The legislation is intended at stopping those "who try to dupe the public," Feinstein said. She added that "the chance to witness [the inaugural] ... should not be bought and sold like tickets to a football game. This is not a football game." 

Of course, scalping tickets to football games is also illegal.

Feinstein said tickets -- which again are not even yet available -- are being offered on the Internet from $5,000 to as high as $45,000 apiece. There are as many as 15 to 20 Internet sites "selling" tickets they do not have.

"I find it unconscionable," Feinstein said. "Tickets are supposed to be free to people" who worked on the election, for African-American community, for people all across the country. "They are free, and they should stay that way."

Feinstin added they must make sure the inaugural has the "dignity it deserves." She told her fellow senators that she is working to see if there is any way the Senate can secure more tickets.

Feinstin also thanked eBay for announcing that no Inaugural tickets will be sold on its Web site.

From NBC's Doug Adams
Remember William Jefferson, the Louisiana congressman who was indicted last year on bribery, racketeering and money laundering charges?

Well, he's still in Congress, and he's likely to stay there for a while.

Technically, Jefferson still has to win a Dec. 6th runoff in Louisiana. But his opponent, little known Republican lawyer Anh "Joseph" Cao, stands little chance in Louisiana's heavily Democratic second congressional district.

Ironically, Jefferson's long-delayed federal trial is also likely to start that week -- Dec. 2nd in Virginia.

Last week, the Fourth U.S. Circuit Court of Appeals cleared the way for the trial to start -- upholding his indictment by ruling that Jefferson's rights weren't violated when the grand jury received evidence that violated legislative immunity.

While normally, a federal corruption trial would be a detriment to winning re-election, Jefferson has shown repeatedly that he is popular in his district. He is seen by constituents as being a key figure in helping his district, which represents New Orleans and surrounding suburban parishes, rebound from Hurricane Katrina.

On Capitol Hill though, Democrats have already tried to marginalize him. They removed him from the prominent Ways and Means Committee. Speaker Pelosi did allow him to be on the Homeland Security Committee, arguing that it was an "appropriate" seat for Jefferson, given the committee's jurisdiction over Katrina-related matters.

But it's unclear if Democrats would allow that again in the new Congress. The House Ethics committee will also take up his case if he is found guilty.

From NBC's Abby Livingston
There is a new development in the photo finish that is the Minnesota U.S. Senate race.

Today, the Franken campaign filed a brief with the Minnesota State Canvassing Board to learn why some absentee ballots were rejected and to determine if any of those rejections were improper. 

The campaign cited various reasons oversights might have occurred with absentee ballots, including human error and various technicalities.
 
Franken spokesman Andy Barr also quoted an audit observation project coordinator for the Citizens for Election Integrity Minnesota who said the voting machines were 99.9% accurate. If that is true, the remaining 0.1 percentage point margin of error would be about 15 times more than the 206 votes that separate Franken and Coleman.
 
The recount for all the ballots will begin on Wednesday.

From MSNBC.com's Tom Curry
New presidents have often gotten off on the wrong foot, either in botched Cabinet nominations or in policy initiatives that caused a ruckus at the start of their presidency. Obama stands to learn from mistakes made by Kennedy in 1961, Carter in 1977, Bush in 1989 and Clinton in 1993.

The Bay of Pigs fiasco is the classic case of a brand new president blundering his way into calamity. In this situation, the botched invasion had long-term consequences. Following the failure, Kennedy felt compelled to assure anti-Communist President Ngo Dinh Diem of South Vietnam that the Cuban disaster didn't lessen the U.S. commitment to fighting communism in Asia.

Barack Obama is a man nearly as young as Kennedy was when he became president. Like Kennedy, Obama is a best-selling author with a reputation for being cerebral, articulate and charismatic. As he prepares to become president, he could consider Kennedy's error.

For more, click here.

From NBC's Doug Adams
With President-elect Obama having resigned his Senate seat yesterday, folks may be wondering about what Vice President-elect Biden might do.

Biden told a local TV station right before Election Day he didn't want to resign his seat right away, leading to speculation about whether he is trying to deny the outgoing governor of Delaware -- Democrat Ruth Ann Minner -- the chance to appoint his successor. 

Under that scenario, Biden would wait until moments before he is sworn in as vice president to resign his seat, which could enable the new governor, Jack Markell, to make the appointment.

Biden has been said for some time to be grooming his son Beau Biden to succeed him in the Senate. Beau is currently Delaware's Attorney General. He is on leave while he serves on active duty in the Delaware National Guard, where he is a captain.

Beau Biden is scheduled to be deployed to Iraq for about a year, making it unlikely he'd be appointed now to his father's seat. But he would be well positioned to run in 2010, when a special election will be held to fill the remaining four years of his father's term. 

The current thinking then is that a placeholder would be appointed to fill the seat for two years until the younger Biden could run. The consensus choice of Delaware Democratic officials is the outgoing Lt. Gov. Jack Carney, who lost his own bid governor to Markell in a bitter primary.

But others worry Carney might not want to step down in 2010, and might instead seek to keep the seat and present an obstacle to Beau Biden.

With all of this swirling, Obama's resignation Sunday is putting a lot of pressure on Biden to announce his intentions soon, several Delaware political observers tell NBC News. Waiting to resign could be seen as unseemly -- an obvious political ploy to manipulate the system and clear the way for his son.

So the likely speculation now -- and that's all it is at this point -- is that Joe Biden will step down sooner rather than later, and allow outgoing Gov. Minner to name his successor.

For those who care -- any appointee named before the incoming 2009 freshman class is sworn in on Jan. 3rd would have more seniority. And if Carney isn't the pick, then Delaware Secretary of State Harriet Smith Windsor could be the choice, observers say. She's in her late 60s, a loyal ally of Gov. Minner, and unlikely to want a long career in the US Senate. If selected, she'd be the first female US senator from Delaware. 

From NBC's John Yang
This is the first time a U.S. President has called Libyan leader Muammar Qadhafi, a man the United States once tried to topple and whom President Reagan called the "mad dog of the Middle East."

Here's a readout of the call, per Deputy White House Press Secretary Gordon Johndroe: "The President called Libyan leader Colonel Qadhafi to express his satisfaction that the claims settlement agreement was fully implemented on October 31. The two leaders discussed that this agreement should help to bring a painful chapter in the history between our two countries closer to closure."

More: "While we will always mourn the loss of life as a result of past terrorist activities, the settlement agreement is an important step in repairing the relationship between Libya and the United States. Libya has taken important steps on the road to normalizing its relations with the international community, beginning with its renunciation in 2003 of terrorism and weapons of mass destruction. The United States will continue to work on the bilateral relationship with Libya, with the aim of establishing a dialogue that encompasses all subjects, including human rights, reform, and the fight against terrorism."

On a potential auto industry bailout, White House Press Secretary Dana Perino, in her on-camera daily briefing, repeated the administration's desire to see the auto industry aid come from the $25 billion in loan guarantees in the energy bill, not the TARP. She said taxpayer money should only to go companies that "show viability and a willingness to make tough decisions to restructure themselves."

While Perino said the energy bill's loan program includes a definition of "viability," the legislation does not (checking to see if the Energy Department's loan regulations do). She said it's "too early to say" whether President Bush would veto legislation expanding the TARP to include auto companies.

From Chuck Todd, Mark Murray, Domenico Montanaro, and Carrie Dann
*** A busy week on tap: Two weeks removed from the presidential election, the political activity remains almost as busy -- we, of course, stress the word "almost." For starters, President-elect Obama meets in Chicago at noon ET with the man he defeated in the general election, John McCain, and they will be joined by incoming chief of staff Rahm Emanuel and GOP Sen. Lindsey Graham. This meeting comes as Obama has officially named several new staffers to his White House team and as speculation continues that he might select Hillary Clinton to head the State Department. Meanwhile, the Senate returns to action today with the agenda including freshman orientation, an economic stimulus package (extending unemployment insurance and relief for the automotive industry), and the fate of Joe Lieberman as chairman of the Homeland Security and Governmental Affairs Committee (which will be done by secret ballot; is that good news for Lieberman since it isn't cool to be publicly pro-Lieberman, or is it bad news so his detractors can stay anonymous?). In addition, the House will return to work on Wednesday, when Minority Leader John Boehner receives a long-shot leadership challenge from Rep. Dan Lundgren. And finally, there are those three unresolved Senate races in Alaska, Georgia, and Minnesota (more on them below), let alone a vacant seat in Illinois.

Video: President-elect Barack Obama meets with his former rival for the White House, Sen. John McCain, to discuss how they might work together.

*** More on today's Obama-McCain meeting: It's important to point out that McCain hasn't been given enough credit for making today's meeting happen -- convening a meeting like this is easy for the victor, but much more difficult for the loser. Just compare today with the amount of time it took for McCain to hold a face-to-face with George W. Bush after the 2000 GOP primaries. McCain didn't have to do this so quickly, and he's giving Obama an easy political point or two by showing up. There are a number of things the two could do together, including climate change, stem cells, ethics and spending reform, even Afghanistan. The two are meeting for 90 minutes, we're told, so there will be time to talk about, well, everything under the sun. By the way, here's another way in which Obama appears to be mimicking Lincoln: USA Today notes that Lincoln met with the man he defeated, Stephen Douglas, early on in his tenure as president.

*** Great expectations: How high are expectations for Obama? There are dueling Obama-as-FDR vs. Obama-as-Lincoln covers on the two major news magazines (Time and Newsweek, respectively). We guess it's better than being compared to Hoover or Carter, right?

*** Bill Clinton's vetting day: With fresh sound of Bill Clinton, combined with the New York Times and Washington Post coverage of the vetting process, it looks like there's plenty of fodder to keep the Hillary-for-secretary-of-state story alive for another day. The New York Times gets into some of the international issues Bill Clinton has delved into, which could cause conflict with his wife should she get the job. Just askin,' but how galling is it for the 42nd president that the idea he can't vet could somehow torpedo his wife's appointment? It's probably making him a little nuts that all of these questions about his post-presidency lifestyle are going to be brought up into the public arena yet again. Also just askin,' but how big of a story would Bill's conflicts of interest have been if Hillary had won the Democratic nomination -- and what kind of problem would that have presented the Democrats? Has the momentum for a Hillary appointment gotten to the point where the only way this doesn't happen is if Clinton says no? Obama can't pull the offer (even if he hasn't officially made it) at this point, right? 

*** That auto bailout: Take a look at the coverage of the debate on whether the government should do a full-fledged bailout of the American auto industry. The tone has clearly been shaped by the auto makers; they are winning the PR battle. This is all very reminiscent of the pro-$700 billion bailout press back in September-October. Lots of clips today about the number of jobs at stake if GM is allowed to fall into bankruptcy protection. Meanwhile, the congressional Republicans who are suspect of a bailout are being shown the political map and how blue the industrial Midwest (including Michigan, Wisconsin, Illinois, Ohio, and Indiana) went -- which happen to house a number of jobs. Just curious: What does the battle to bailout GM do for the battle between John Dingell and Henry Waxman for the chairmanship of the House Commerce Committee? Could some quid pro quos be popping up in that campaign having to do with the bailout? Speaking of bailouts, various state and city governments are now looking for handouts or bailouts. How soon will some states begin raising the idea of suspending budget balancing laws that most state governments are forced to live under?

*** The remaining races: In Alaska, after additional counting of early and absentee ballots on Friday, Mark Begich (D) now has a 1,022-vote lead over incumbent Sen. Ted Stevens (R). On Tuesday, a remaining 24,000 votes from Anchorage (Begich's home base), Southeast Alaska, and the Kenai Peninsula will be counted. The situation looks particularly grim for Stevens, because Friday's count included all the early and absentee ballots from his base of support in the Matanuska-Susitna Borough… In Georgia, Jim Martin (D) has a new TV ad blasting Saxby Chambliss (R) on the economy. Meanwhile, Huckabee campaigned for Chambliss over the weekend, and now we've learned that Bill Clinton will stump for Martin on Wednesday… And in Minnesota, the original vote count in the Coleman-Franken race gets certified on Tuesday, and the four-week recount begins right after that. By the way, Franken will be coming to DC on Tuesday. 

*** A few other stray Senate thoughts: By the way, has anyone else noticed that the GOP seems more interested in saving Coleman in his recount than pushing Chambliss or Stevens to victory in Georgia and Alaska? This isn't to say the party isn't doing whatever it takes to help Chambliss, but the emotion that Republicans are showing in their collective comments about the Minnesota recount send the signal that losing the Senate seat to Franken would be a lot more demoralizing than losing the run-off in Georgia or the count in Alaska (By the way, don't miss Minnesota Gov. Tim Pawlenty's comments Sunday, when he admitted that he knows of no shenanigans at all in the re-canvass process yet. That's not the talking point he was speaking off of last week)… With Bill Clinton now heading to Georgia, what will Obama do? Will he at least cut radio ads or do recorded phone calls?… There are officially 99 senators, instead of 100, thanks to Obama's resignation on Sunday. What will Illinois Dem Gov. Rod Blagojevich do? As one person who knows him well put it, he's trying to figure out how to monetize this appointment (no, not SELL it, but gather some political chit), but he can't figure out how to do it yet. Does he appoint a potential gubernatorial primary rival (though most think the unpopular governor isn't running)? Does he try to cut a deal with House Speaker Michael Madigan (and appoint his daughter, Attorney General Lisa Madigan)? What about the pressure to appoint a non-white male (like Tammy Duckworth, Jesse Jackson Jr., Jan Schakowsky, or Melissa Bean)?
 
Countdown to Georgia Senate run-off: 15 days
Countdown to Electoral Vote Count: 52 days
Countdown to Inauguration Day 2009: 64 days

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The New York Times writes that Bill Clinton perhaps remains the last obstacle to Hillary Clinton being named as Obama's secretary of state. "President-elect Barack Obama's advisers have begun reviewing former President Bill Clinton's finances and activities to see whether they would preclude the appointment of his wife, Hillary Rodham Clinton, as secretary of state, Democrats close to the situation said Sunday. The examination of the former president suggests how seriously Mr. Obama is considering bringing his onetime rival for the Democratic presidential nomination into his cabinet."

More: "A team of lawyers trying to facilitate the potential nomination spent the weekend looking into Mr. Clinton's philanthropic organization, interactions with foreign governments and ties to pharmaceutical companies, a Democrat close to both camps said. While Mr. Clinton has used his foundation to champion efforts to fight AIDS, poverty and climate change around the world, he has also taken millions in speaking fees and contributions from foreign officials and businesses with interests in American governmental policies."

The Washington Post also looks at the potential conflicts of interest that Bill Clinton poses to an Obama Administration. "'He's a former president of the United States. He's been traveling around the world, and he's got his foundation and a lot of foreign policy efforts going on,' said Leon Panetta, Clinton's former chief of staff and now a professor of public policy. 'What they will have to obviously be careful of are the potential conflicts that might appear.'" 

"Obama is considering primary election rivals Hillary Clinton and Bill Richardson to be his secretary of state, as Senator John F. Kerry, an early supporter of Obama, appeared to be out of the running according to Democratic officials," the AP's Pickler writes. Obama met with Richardson on Friday, per AP, and Clinton over the weekend, he confirmed on 60 Minutes. "Staff for Kerry appeared to prepare for the senator to take over leadership of the Senate Foreign Relations committee."

In previewing today's Obama-McCain meeting, USA Today notes that Obama appears to be mimicking Lincoln in another way besides courting onetime Dem rival Hillary Clinton to serve in his cabinet. "Early in his tenure, after the outbreak of the Civil War, Lincoln met with one of the men he defeated in the 1860 general election, Stephen Douglas."

More: "The former antagonists will have close associates with them: Rahm Emanuel, Obama's pick for White House chief of staff, and McCain's friend, Sen. Lindsey Graham, R-S.C. Graham said that in some ways, the meeting is a follow-up to the rivals' separate remarks on Nov. 4. Obama had praised McCain, a former Vietnam prisoner of war, as a 'brave and selfless leader,' and said he looked forward to working with him 'to renew this nation's promise.' In his concession speech, McCain pledged 'to do all in my power to help him lead us through the many challenges we face.' There is no agenda for the meeting, Graham said. McCain wants to learn how Obama plans to proceed and 'where we can fit in,' Graham said, citing work on climate change as a potential area of common ground." 

The AP says don't expect Obama to make a job offer to McCain.

Over the weekend, Obama named the following appointments to his White House staff: Jim Messina and Mona Sutphen as deputy chiefs of staff; Valerie Jarrett and Peter Rouse as senior advisers; Ron Klain as Biden's chief of staff; and Phil Schiliro as assistant to the president for legislative affairs.

Also, NBC's Andrea Mitchell confirmed that Greg Craig will be Obama's White House counsel. Craig was a member of Obama's campaign team and is a well-known Washington lawyer at Williams and Connolly. He is a former Hill staffer for Sen. Edward Kennedy, and in 1998 he defended President Bill Clinton before the Senate in his impeachment trial.

Speculation over whom New York Gov. David Paterson could appoint to replace Hillary Clinton -- should she be appointed secretary of state -- is heating up.

Al Hunt writes about the balance Obama needs in his Cabinet between change and "smart retreads." "[T]he appointments over the next several weeks will establish the early persona of the Obama presidency. Two dominant realities are in conflict. One, he promised change, not just from the Bush administration but from the 'decades of broken politics in Washington.' He faces the most perilous situations of any new president since Franklin D. Roosevelt, with a financial crisis and two wars, conditions that demand experienced judgment. He wants to assemble a group that has gravitas and is fresh, one that reflects the diversity of his political appeal and the depth and knowledge he promised to bring to government. Insiders and outsiders. The large Obama-Biden transition team illustrates these conflicts. There are a lot of able people who understand governance."

The Los Angeles Times looks at who Obama might appoint to the Supreme Court. "Three frequently mentioned candidates are Judges Diane Wood, 58, of the U.S. appeals court in Chicago; Sonia Sotomayor, 54, of the U.S. appeals court in New York; and Elena Kagan, 48, dean of Harvard Law School." 

Very little media speculation has focused on Homeland Security.

OUR OBAMA CABINET SPECULATION LIST:
Chief of staff: Emanuel NAMED / Deputies: Jim Messina NAMED, Mona Sutphen NAMED
Senior advisers: Valerie Jarrett NAMED, Peter Rouse NAMED
Assistant to the president for legislative affairs: Phil Schiliro
White House counsel: Greg Craig
Press Secretary: Gibbs
Biden chief of staff: Ron Klain NAMED
 
POTENTIAL CABINET MEMBERS:
Agriculture: Tom Vilsack, Tom Buis (Natl Farmers Union), Charlie Stenholm, Jim Leach, Stephanie Herseth Sandlin
Commerce: Penny Pritzker, Kathleen Sebelius, John Thompson (Symantec), Ron Kirk (former Dallas Mayor), Scott Harris (Harris, Wiltshire & Grannis fndr)
Defense: Robert Gates, Richard Danzig, Chuck Hagel, Sam Nunn, Jack Reed, Colin Powell, John Hamre, Tim Roemer, Thomas Pickering, Anthony Zinni
Education: Joel Klein (NYC), Linda Darling-Hammond, Kathleen Sebelius, Colin Powell, Jim Hunt, Arne Duncan, Inez Tenenbaum, Michael Bennett, George Miller
Energy: Kathleen Sebelius, Philip Sharp, Ed Rendell, Arnold Schwarzenegger (has said no), Al Gore, Jeff Bingaman, Jennifer Granholm, Steve Westly, Frederico Pena, Dan Reicher, Jason Grumet
HHS: Tom Daschle, Howard Dean (reportedly ruled out), Eric Whitaker Homeland Security: Tim Roemer, Ray Kelly, James Lee Witt, Tom Kean Sr, Jane Harman, Janet Napolitano, Artur Davis
HUD: Jim Clyburn, Shirley Franklin (Atlanta mayor)
Interior: Bill Richardson, Jay Inslee, John Kitzhaber, Tony Knowles, Ken Salazar, Jamie Rappoport Clark, Brian Schweitzer
Justice (AG): Eric Holder, Janet Napolitano, Charles Ogletree, Deval Patrick, James Comey, Patrick Fitzgerald, Artur Davis, Tim Kaine, Jamie Gorelick (but was vice chair of Fannie), Ken Feinberg, Cass Sunstein, Kathleen Sullivan (Stanford Law prof, possible Solicitor General. Also possible SGs: Beth Brinkmann – DC Atty; Preeta Bansal – Skadden, Arps; Elena Kagan –Harvard law dean; Pamela Karlan—Stanford; Teresa Wynn Roseborough -- MetLife litigation counsel)
Labor: Andy Stern (SEIU) (said not interested), Richard Gephardt, George Miller, David Bonior
State: John Kerry, Bill Richardson, Richard Lugar, Chuck Hagel, Richard Holbrooke, Chris Dodd, Hillary Clinton, Thomas Pickering
Transportation: Ed Rendell, Jane Garvey, Mortimer Downey, Earl Blumenauer, Steve Heminger, James Oberstar
Treasury: Larry Summers, Tim Geithner, Paul Volcker, Robert Rubin, Jon Corzine, Warren Buffett, Michael Bloomberg, Laura Tyson, Jamie Dimon (JP MorganChase), Jacob "Jack" Lew, Sheila Bair, Indira Nooyi,
Veterans Affairs: Max Cleland, Tammy Duckworth
 
OTHER POSITIONS:
CIA: Tony Lake, John Brennan
DNI: Tony Lake, John Brennan, Tim Roemer, Rand Beers, Jane Harman, John Abizaid, Evan Bayh
FEMA: James Lee Witt
EPA: Howard Learner (Pres, Exec. Dir, Environmental Law and Policy Center), Ian Bowles (MA), Robert F. Kennedy Jr., Kathleen Sebelius, Kathleen McGinty (former secretary of Pennsylvania's Department of Environmental Protection), Mary Nichols (chair of California's Air Resources Board), Robert Sussman, Dan Esty
FBI: Robert Mueller (term expires 2011)
Fed Chair: Ben Bernanke (at least for first year)
FDA: Steven Nissen (Cleveland Clinic), Joshua Sharfstein (Baltimore health commissioner), Janet Woodcock (Big Pharma's choice), Susan Wood (GWU occupational and environmental health professor), Diana Zuckerman (president, National Research Center for Women & Families)
Natl. Economic Council: Jason Furman, Austan Goolsbee, Laura Tyson Natl Sec Adviser: Jim Steinberg, Rand Beers, Susan Rice, Greg Craig
NSC: Dennis Ross, Susan Rice, Tony Lake
OMB: John Spratt Jr., Gene Sperling, Jason Furman Peace Corps: Chris Shays
UN Ambassador: Caroline Kennedy, Susan Rice
USTR: Cal Dooley (American Chemistry Council president), Daniel K. Tarullo (Georgetown University law professor), Lael Brainard (Brookings Institution vice president)
 
Other mentions for various White House staff posts: Patti Solis Doyle, David Wilhelm, John Rogers, Bill Daley, Cass Sunstein, Bob Bauer, Michael Froman, Federico Pena, Lawrence J. Korb, Carol Browner (Clinton's EPA head), Thomas Perrelli, David Ogden, Terry Tamminen (climate change, adviser to Schwarzenegger)

The Iraqi cabinet has given Obama something he'll be touting in a re-election bid: a deadline to pull troops out of Iraq. "After months of painstaking negotiations between Baghdad and Washington, the Iraqi Cabinet yesterday approved a bilateral agreement allowing US troops to remain in Iraq for three more years. The accord still needs approval by Iraq's Parliament, but the Cabinet vote indicated that most major Iraqi parties supported it. An Iraqi government spokesman portrayed the pact as closing the book on the occupation that began with the US-led invasion in 2003."

Bloomberg News reports an Obama-Pelosi deal on stimulus could top $500 billion.

So how many jobs could be affected by the auto industry's collapse? The Los Angeles Times: "All told, each truck contains 4,350 parts, made by 270 suppliers in 26 states as well as several foreign countries. Every F-150 that doesn't sell hits literally hundreds of thousands of people who play a role in putting the big machine on the road. When it comes to the U.S. automakers and their financial troubles, politicians and the public tend to think about the 240,000 jobs that could be lost at the Big Three's assembly lines in Michigan and nearby Rust Belt states."

"President-elect Barack Obama said in an interview on the CBS program "60 Minutes" on Sunday that one of his top priorities will be to 'restore a sense of balance' to the regulation of financial markets, but rejected the idea of a so-called 'new New Deal' for America," the New York Times writes. "Mr. Obama acknowledged the parallels between the current economic crisis and the problems of the Great Depression, but said that he supported solutions that are 'true to our times.'"

"'For us to simply recreate what existed back in the 30s in the 21st century -- I think would be missing the boat,' Mr. Obama said in the interview. 'I think the basic principle that government has a role to play in kick-starting an economy that has ground to a halt is sound. I think our basic principle that this is a free market system and that that has worked for us, that it creates innovation and risk taking, I think that's a principle that we've got to hold to as well.'" 

"Before a huge crowd in San Diego last summer, Barack Obama vowed to make fixing illegal immigration a top priority as president, and Latinos nationwide responded with massive support for him on Election Day. Now, they are pressing him to keep his promise. From Cape Cod to California, activists on both sides of the volatile issue are girding for battle. Supporters of the nation's 12 million illegal immigrants -- most of whom are Latino -- want Obama to press for a path to legal residency for them. Opponents say reform is impossible at a time when unemployment is soaring, and instead want tougher border security and less immigration to preserve Americans' jobs."

"In wooing federal employee votes on the eve of the election, Barack Obama wrote a series of letters to workers that offer detailed descriptions of how he intends to add muscle to specific government programs, give new power to bureaucrats and roll back some Bush administration policies," the Washington Post front-pages. "The letters, sent to employees at seven agencies, describe Obama's intention to scale back on contracts to private firms doing government work, to remove censorship from scientific research, and to champion tougher industry regulation to protect workers and the environment. He made it clear that the Department of Housing and Urban Development would have an enhanced role in restoring public confidence in the housing market, shaken because of the ongoing mortgage crisis."

"Using more specifics than he did on the campaign trail, Obama said he would add staff to erase the backlog of Social Security disability claims. He said he would help Transportation Security Administration officers obtain the same bargaining rights and workplace protections as other federal workers. He even expressed a desire to protect the Environmental Protection Agency's library system, which the Bush administration tried to eliminate." 

The New York Times reports that some Republicans are wondering if they must move beyond Ronald Reagan. At last week's Republican Governors Association meeting, "there was even the suggestion, made gingerly and reverently, that Republicans could not continue to make 'Ronald Reagan' the answer to every question at a time when they are overwhelmingly losing the young voters who were children, or were not yet born, when he was president. That was the implication of Gov. Tim Pawlenty of Minnesota, who told the group of fellow Republican governors that Reagan was one of his heroes, and recalled being spat at by a hippie while volunteering for one of his campaigns. 'But Ronald Reagan was president a long time ago,' Mr. Pawlenty said. 'A lot has happened since then. So the challenge for us is how do you take the principles from the late '70s and '80s and apply them to the circumstances and issues and opportunities of our time.'"

Bill Kristol speculates if Bush will follow in Herbert Hoover's footsteps: make it even more difficult for Republicans to appeal to voters on economic issues. "From 1933 to 1980, Republicans repeatedly failed to convince the country they were no longer the party of Herbert Hoover -- the party, as it was perceived, of economic incompetence, austerity and recession (if not depression)."

"Only two Republicans won presidential elections in that half-century, Dwight D. Eisenhower and Richard M. Nixon. Both were able to take the White House only because we were mired down in difficult wars, in Korea and Vietnam. And Ike and Nixon were unable -- they didn't really try -- to change the generally liberal course of domestic and economic policy. The G.O.P.'s fate on Capitol Hill was worse. The party controlled Congress for only 4 of those 47 years. That's what happens when a depression begins on your watch and when you can't offer a coherent explanation of how and why it occurred and what you are going to do differently."   

Politico's Martin writes that "GOP officials and strategists at party conferences last week offered sharply contrasting assessments of what went wrong, and of how difficult it will be to rebuild. Perhaps not surprisingly, the split tended to fall along generational lines. Older party hands pointed to John McCain's lackluster campaign and the difficult terrain Republicans found themselves battling on this year, and eschewed any sky-is-falling rhetoric. The up-and-comers, meanwhile, sounded the alarm of impending permanent minority status unless the party changes."  

Tom Edsall: "...GOP aspirants face the possibility of a nightmare scenario: taking the helm of a party so weighed down by doctrinaire hard-liners and hectoring moralists that no one, especially an RNC chair, will be able to change course and avoid a tsunami of culturally disinhibited, secularizing 'creatives,' Hispanics, African Americans, and a young netroot-savvy demographic cohort larger than the Baby Boom."

The incoming No.2 leader in the House for the GOP, Eric Cantor, gave an interview to the Washington Times. Cantor "said the Republican Party in Washington is no longer 'relevant' to voters and must stop simply espousing principles. Instead, it must craft real solutions to health care and the economy. 'Where we have really fallen down is, we have lacked the ability to be relevant to people's lives. Let's set aside the last eight years, and our falling down in living up to expectations of what we said we were going to do,' Mr. Cantor told The Washington Times in his district office outside of Richmond. 'It's the relevancy question.'"

Just what did Newt Gingrich mean when he said Sarah Palin would only be one of 20-30 players in the future of the party? That's not exactly a ringing endorsement.

It looks like Florida GOP Chair Jim Greer's potential RNC chair bid will end before it starts. Some questions about the state party's lavish spending have now made it into the FL media spotlight.

Speaking of the RNC chair race, apparently ex-UT Gov. Mike Leavitt, who is leaving the Bush administration as HHS secretary, is pondering the race.