"The Senate confirmed Timothy Geithner as President Barack Obama's Treasury secretary by a 60-34 vote, paving the way for the new administration to usher in its financial-rescue plan," the Wall Street Journal writes. "With Mr. Geithner now officially on board, the Obama administration is expected to detail shortly efforts to shore up the financial sector. In his first move, the Treasury Secretary is expected Tuesday to announce new rules intended to curb the influence of lobbyists and special interests in determining who gets aid from the government. The new efforts, part of Mr. Obama's plan to revamp the financial bailout, are aimed at ensuring that investment decisions are based on what is best for the stability of the financial system, rather than on any type of political influence."

The Washington Post: "Despite their misgivings about his failure to pay nearly $43,000 in taxes on time, senators endorsed Geithner as the best candidate to lead the government's response to the financial crisis. But the 60-to-34 vote was relatively close for a cabinet confirmation, reflecting the controversy that dogged his nomination."

NBC's Ken Strickland breaks down the 60-34 vote on Geithner. Four Dems voted against his confirmation: Byrd, Feingold, Harkin, Sanders. (Note: Sanders is an independent, but a member of the Dem caucus.) Meanwhile, 10 Republicans voted for him: Corker, Cornyn, Crapo, Ensign, Graham, Gregg, Hatch, Shelby, Snowe, Voinovich. Senators not voting: Bond, Brown, Kennedy, Wyden. 

Kirsten Gillibrand, Hillary Clinton's replacement in the U.S. Senate, gets sworn in at 12:30 p.m. ET.

Meanwhile, CIA-designate Leon Panetta's confirmation hearing was postponed this week because he has yet to provide the Senate the necessary paperwork. "The hearings are now scheduled for next week, and it could be mid-February before Mr. Panetta takes over at C.I.A. headquarters, in Langley, Va. Until then, the departing C.I.A. director, Michael V. Hayden, will stay on as the chief."

"Rep. Peter Welch (Vt.), a new Democratic member of the House ethics committee, gave back nearly $20,000 in donations he received from Rep. Charles Rangel (D-N.Y.), who is under investigation by the panel for an array of ethics charges," The Hill reports, adding, "Bob Rogan, Welch's chief of staff, said his boss decided to return the money to avoid any appearance of impropriety when Speaker Nancy Pelosi (D-Calif.) named him to the panel, along with four other new Democratic members of the ethics committee. The check was sent Monday."

The AP curtain-raises what Defense Secretary Bob Gates will face when he testifies on Capitol Hill today. Expect Afghanistan, Iraq and Guantanamo to be some of the topics he's pressed on.

House Judiciary Chairman John Conyers yesterday subpoenaed Karl Rove, seeking his appearance at a deposition Feb. 2. Mr. Conyers wants the former aide to President George W. Bush to answer questions on the Justice Department's firings of U.S. attorneys in 2006, among other matters," the Wall Street Journal writes.

The Chicago Tribune covers the first day of Blagojevich's impeachment trial, which provided two very different scenes. "The lead prosecutor in Illinois' historic impeachment trial urged the state Senate on Monday to remove Gov. Rod Blagojevich from office for crimes against the public while the governor spent the day in New York, lashing out at his accusers on national television."

"The solemnity of the political trial within the ornate state Senate chamber contrasted with a TV appearance in which talk-show co-host Joy Behar mussed Blagojevich's hair and unsuccessfully urged the governor to do a Richard Nixon impression saying, 'I am not a crook.'"

The Washington Post's Milbank snarks, "Rod Blagojevich may be about to lose the 'gov' before his name, but the man's entertainment skills are unimpeachable."

Blago also spoke with Larry King. "King noted that some of the comments from the federal wiretaps sounded 'bad. 'Oh, of course it sounds bad,' Blagojevich said. 'But think about some of the private conversations you might have on the telephone. .... You can take all kinds of things out of context.'"

So this is what it used to be like in the old days of conventions? "As RNC members arrive in Washington before Wednesday's winter meeting begins, candidates hoping to win the chairmanship have resorted to horse-trading tactics to bring in the votes. The next party chairman will be selected Friday with a simple majority," The Hill's Reid Wilson reports. "In interviews with The Hill, several committee members said former Ohio Secretary of State Ken Blackwell and current RNC Chairman Robert "Mike" Duncan have put together deals in some form or other. Duncan has been the most aggressive in doling out favors, according to several sources. He has already pledged to put staffers in each state, and surrogates have been handing out money at fortuitous times, the sources said. Duncan's aides deny that money has been offered. They said the chairman has only discussed how much it would cost to place a staffer in each state as part of Duncan's 'Partnership 2010,' which would send one staffer to each state in an effort to duplicate Democrats' 50-state strategy."

Channeling Friday's First Read, The Hill and Roll Call point out that the GOP now seems to have an opportunity in New York.

MINNESOTA: "The trial to determine Minnesota's disputed U.S. Senate election got off to a slow start Monday -- and then bogged down," the Minneapolis Star Tribune reports. "The trouble came over testimony that workers for Republican Norm Coleman's campaign had marked or obscured copies of some absentee ballot envelopes offered as evidence. The acknowledgment provoked confusion and prompted the judges to demand the original documents."

"On that note, the first day of the trial abruptly halted, leaving the second's agenda something of a mystery. That turn promised to prolong a trial that Coleman lawyer Joe Friedberg predicted in his opening statement would be 'extremely tedious' and involve the examination of 5,000 ballots, one at a time."

NEW YORK: Mayor Bloomberg lashed out at Paterson's office for its handling of Caroline Kennedy. "I thought that the stuff that I saw in the papers was totally inappropriate," he said, per the New York Daily News. "It's as good an example of cheap dirty politics as you could ever find, and I thought it was reprehensible. I have no idea where it came from, and no, I don't know her personal life well enough to know whether there's anything there whatsoever."

TEXAS: "Republican sources confirmed Monday that Sen. Kay Bailey Hutchison (R-Texas) has hired Rick Wiley to serve as the campaign manager for her 2010 gubernatorial bid," Roll Call reports. "Wiley is a former Wisconsin GOP executive director who last year went to work for former New York Mayor Rudy Giuliani's (R) 2008 presidential primary campaign. ... Hutchison, who held a strategy meeting in Austin on Saturday with about 300 supporters, said over the weekend that a formal announcement on the gubernatorial race will come sometime this summer. But the Senator has already transferred millions into her exploratory campaign committee, and at Saturday's meeting she released a list of nearly 900 statewide supporters."

From NBC's Ken Strickland and Domenico Montanaro
Obama's pick for Treasury Secretary was confirmed, but the vote was not without its drama. The vote, which is still going on, was closer than assumed. At last count, it was 59 for, 33 against.

Included in the "No" votes were Democrats Tom Harkin, Robert Byrd and Russ Feingold, as well as Independent Bernie Sanders, who caucuses with the Democrats.

This was probably not the "strong bipartisan support" the White House was hoping for.

*** UPDATE *** The vote before the officially confirming Geithner: 60-34.

*** UPDATE 2 *** NBC's Antoine Sanfuentes adds that President Obama is expected to attend Geithner's swearing in at the Treasury Department between 7 p.m. and 7:15 p.m.

From NBC's Abby Livingston
The trial to determine the occupant of the Minnesota U.S. Senate seat began this afternoon in St. Paul.

Meanwhile, the campaigns sparred with dueling conference calls. The Franken campaign held the first one, crying foul against the Coleman camp, saying, "The truth is, that they are seeking to disenfranchise Minnesota voters left and right which has been their pattern throughout this entire effort."

Franken attorney Marc Elias accused the Coleman campaign members of doing "an about-face" and as "charter members of the Flat Earth Club."

The Flat Earth line was reiterated throughout the call.

"Don't believe them when they say they want every vote counted," Elias continued. "That has never been their posture in this recount…. So don't believe the hype you get from Ben Ginsberg, from Washington, D.C., when he comes in here and tells you that's what they're here to do."

Not long afterward, that same Ben Ginsberg, the Bush 2000 recount attorney, held his own conference call with reporters on behalf of the Coleman campaign.

He continued the Coleman push to re-examine all 12,000 rejected absentee ballots. Ginsberg said he was "surprised" that the Franken campaign did not join their call to review the 12,000 ballots.

Later in the day, Coleman himself put out a statement, saying, "I had hoped that Mr. Franken would join me in ensuring that every valid vote is counted. Unfortunately, his campaign is actively proceeding to take whatever legal action is necessary to try to stop these votes from being counted. Let me be clear: We don't know, nor do we care, the party affiliation or the candidate choice of the individuals whose ballots were rejected.  It's not in anyone's interests to have a process in which rejected absentee ballots are being cherry-picked -- every valid vote must count."

From NBC's Ken Strickland
At 6 p.m. today, the Senate will take the final vote on Tim Geithner's nomination to become Secretary of Treasury. 

It appears all but certain he will be confirmed with no known opposition from any of the 58 Senate Democrats (and only 51 are needed for confirmation). But it remains to be seen how many Republicans will vote against him.

Today, moderate Republican Susan Collins issued a statement saying she'll vote "nay," because he neglected to pay self-employment taxes. 

"When these issues first arose, they were cited as examples of the baffling complexity of our tax code and of the need for reform," Collins said. "As more details have emerged, it has become clear to me that this is not merely a matter of complexity leading to mistakes, but of inexcusable negligence."

Last week, when the Senate Finance Committee voted favorably to send the nomination to the full Senate, half of the Republicans on the panel voted against him: Grassley, Roberts, Bunning, Kyl and Enzi.

Since then, a few other Republicans -- not on the committee -- have joined their ranks, including Richard Burr and Jeff Sessions. 

"I have decided to vote against Mr. Geithner's nomination, because his failure to properly pay his taxes on multiple occasions was, in my view, likely a deliberate attempt to avoid his tax obligations," Session said in a statement last week.

The circumstances are such that several others could join the opposition. For senators already considering their reelection prospects, a "no" vote may win them points back home. 

With constituents fed up with Wall Street, bailouts and corporate types defrauding the system, voting against Geithner could rally populist support without the responsibility of killing a popular nomination.

*** UPDATE *** Democratic Sen. Tom Harkin just said on the floor he will not vote for Geithner.

*** UPDATE 2 *** We Senate watchers are still convinced Tim Geithner will be confirmed by the Senate when the chamber votes at 6 p.m., but you wouldn't know if you've been watching the debate today. Republican support is scarce, and the Democrats have just had their first defection in Harkin.

Since the debated started at 4pm today, only one Republican (Hatch) has spoken on the floor in support of Geithner. Most of the time has been used by Republicans who've come out AGAINST him.

The most notable Republican to oppose the nominee is moderate Republican Susan Collins.  Other Republicans to announce there "no" votes today, included Chambliss, Inhofe, Thune, and Martinez.

By our unofficial tally thus far--based on committee votes, floor speeches, and press releases--there will be at least 12 GOP "nay" votes.

From NBC's Libby Leist

U.S. special Middle East envoy George Mitchell will depart today for the Middle East, the State Department said this morning.

Spokesman Robert Wood told reporters that Mitchell's trip will include stops in : Egypt, Israel, the West Bank, Jordan, and Saudi Arabia.

Mitchell will focus his discussions on ceasefire efforts being made by Egypt, anti-smuggling plans to stop weapons from entering Gaza, opening up border crossings into Gaza and humanitarian needs in Gaza.

"He is in listening mode ... to get the peace process back on track," Wood said.

Mitchell's trip runs through Feb 3. State and NSC officials will join Mitchell.

From NBC's Ken Strickland and Mike Viqueira
Kirsten Gillibrand, Hillary Clinton's replacement in the U.S. Senate, resigned her House seat this afternoon. At about 2 p.m., the House Clerk read the resignation letter on the House floor.

Gillibrand will be sworn in on the Senate floor tomorrow at 12:30 p.m., according to the majority leader's press shop.

From NBC's George Lewis and Domenico Montanaro
An astute reader of the "Valleywag" blog pointed out today that Google Maps now has a clear satellite view of the Vice-President's residence in Washington, D.C.

When Dick Cheney lived there, the house was digitally obscured. Before and after pictures can be seen here.

"The changeover happened on January 18 in Google Earth, the search engine's 3D mapping service, and on Thursday in Google Maps," Valleywag writes. "In other words, the vice president's house was revealed on Google the same week Cheney moved out and Joe Biden moved in.

How about that for… transparency?

From NBC's Athena Jones

WASHINGTON -- In his latest effort to mark a clear departure from his predecessor's policies, President Obama signed two presidential memoranda that set new fuel efficiency standards and addressed greenhouse gas emissions.

The documents implement new fuel efficiency standards for cars for the model year 2011 and direct the Environmental Protection Agency to immediately review the Bush administration's denial of the California waiver request that would allow the state to impose its own tough restrictions on greenhouse gas emissions, though that memorandum does not order that the waiver be granted.

Obama has sought to tie the quest to develop more renewable energy sources with America's economic and national security. He began today's brief announcement by talking about jobs losses at firms like Microsoft and Caterpillar and said the economic recovery plan before Congress would put people to work, while helping reduce the country's dependence on foreign oil.

"Now is the time to make the tough choices," Obama said. "Now is the time to meet the challenge of this crossroads in history by choosing a future that is safe for our country, prosperous for our planet and sustainable."

Transportation Secretary Ray LaHood and EPA Director Lisa Jackson accompanied the president at the East Room event before representatives from the Auto Alliance, Wal-Mart, environmental groups like The Ocean Conservancy, Environment America and the Sierra Club among others.

Reprising a theme he touched on often on the campaign trail, the president said no single issue was as fundamental to America's future as energy and that the country's dependence on foreign oil helped support dictators, pay for nuclear proliferation, fund terrorism and hurt our ability to compete.

He said action was needed on climate change and that America must show its willingness to lead the world on clean energy and energy indendence.

"It falls on us to choose whether to risk the peril that comes with you our current course or to seize the promise of energy independence, for the sake or our security, our economy and our planet, we must have the courage and the commitment to change," he said. "It will be the policy of my administration to reverse our dependence on foreign oil, while building a new energy economy that will create millions of jobs."

The president has repeatedly said that an economic recovery would not happen overnight and today he stressed that the road to building a clean energy economy and reaching energy independence would also be long.

NBC's From Les Kretman adds Jackson said in a written statement: "Knowing EPA has the full support of the President as we proceed to revisit the Bush era denial of the California waiver is very encouraging. The president's actions today herald a seachange in America's commitment to addressing climate change."

NBC's Mike Viqueira has the response from House Minority Leader John Boehner: "The President's action today is disappointing," Boehner said in a written statement. "The effect of this policy will be to destroy American jobs at the very time government leaders should be working together to protect and create them. Millions of American jobs will be placed in further jeopardy if automakers are forced to spend billions to comply with potentially dozens of different emissions standards in dozens of different states."

From NBC's Domenico Montanaro
President Obama's first Gallup approval rating since taking office is the highest for a president -- after an election -- at the start of their tenure since Kennedy.

Obama had a 69% approval rating, according to Gallup, on Jan. 21, the day after his inauguration. The only president to have a higher approval since World War II was Kennedy, who had 72% approval rating on Feb. 15, 1961.

Eisenhower equaled Obama's approval at 68%. Since Kennedy, Carter started with 66%, Reagan 51%, George H.W. Bush 51%, Clinton 58%, George W. Bush 57%.

Gallup notes: It "did not measure those three presidents' initial ratings until early February, and new presidents' approval ratings typically increase in the first few months of their presidencies. Thus, Obama's initial approval rating of 68% looks more impressive compared to the average 55% approval rating for the four presidents whose first ratings were measured in January after their inaugurations."

More: "The three presidents who took office after the death or resignation of their predecessors tended to start out with even greater public support, as the nation rallied around the new chief executive in times of crisis. These include Harry Truman in 1945 with an 87% approval rating, Lyndon Johnson with 78% in 1963, and Gerald Ford with 71% in 1974."

It will be interesting to track Obama's approval in the coming months. Even though he starts with a greater honeymoon than nearly any president in history, the myriad of challenges he faces could take a toll on his approval -- if particularly the economic climate doesn't appear to improve within a year.

From NBC's Domenico Montanaro
Terry McAuliffe is getting an early jump on the 2009 Virginia campaign for governor with his first TV ad.

In the ad called "Listened," McAuliffe stresses protecting and creating jobs and makes an outside-of-Richmond pitch.

"It goes to show the best ideas don't always come out of Richmond," McAuliffe says.

Among his ideas, he says at the top of the ad: "Make our ports more competitive. Invest in renewable energy to create jobs. Keep our carriers here in Virginia where they belong."

The former Democratic National Committee chairman and Clinton fundraiser also bills himself as having "spent four decades building businesses and creating jobs. Now, I'm running for governor because I know we can create thousands more right here."

The ad will begin running in the Hampton Roads area this week, his campaign said in a conference call this morning. It will followed by other ads soon, but the campaign declined to say when those would go up.

"We're excited to continue the conversation between Terry and the people of Virginia," said adviser Mo Elleithee, adding, "This is just the beginning of what is going to be a long conversation with Virginians."

The campaign called the ad buy "a healthy buy."

Aides denied this means McAuliffe can be labeled the "big-money candidate," despite how early the ad is airing. They justified it by pointing to the Democratic being just months away (June).

Aides also said they "do not intend to say anything negative about the other Democrats in this race. … Terry is going to save his criticism for [Republican] Bob McDonnell."

Here's the full script:
MCAULIFFE: Make our ports more competitive. Invest in renewable energy to create jobs. Keep our carriers here in Virginia where they belong.

I'm Terry McAuliffe. These are just some of the ideas I've heard from you in Hampton Roads. It goes to show the best ideas don't always come out of Richmond.

I've spent four decades building businesses and creating jobs. Now, I'm running for Governor because I know we can create thousands more right here. I'll make it my job to protect your job -- and get Virginia's economy moving.

From NBC's Libby Leist

In coordination with today's White House announcements related to the environment, administration officials tell NBC News Secretary of State Hillary Clinton will announce the appointment of a climate change envoy this afternoon at the State Department.

She is expected to name Washington, D.C., lawyer and climate change and environmental expert Todd Stern. Stern served in a variety of positions during the Clinton administration, including the President's Coordinator for Climate Change. Stern was the chief negotiator at the 1997 Kyoto climate change talks.

In testimony before the Senate Foreign Relations Committee two weeks ago, Clinton promised senators that the Obama administration will take the lead at U.N. climate change negotiations scheduled for December in Copenhagen.

"We will have a climate change envoy negotiator, because we want to elevate it," she said, "and we want to have one person who will lead our international efforts."

Clinton also told the senators that any agreement must include the world's rising economic powers.

"As we move toward Copenhagen and attempt to craft a climate change agreement," she said, "all the major nations must be part of it. You know, China, India, Russia and others; they have to be part of whatever agreement we put forth."

*** UPDATE *** In naming Todd Stern today as special envoy for climate change, Secretary of State Clinton said the Obama administration will make climate change and energy a top priority, unlike the Bush years.

"We are sending an unequivacol message that the United States will be energetic, focused, strategic and serious about addressing global climate change and the corollary issue of clean energy," Clinton said.

She also stressed the need to act immediately.

"The urgency of the global climate crisis must not be underestimated," she said, "nor should the science behind it or the facts on the ground be ignored or dismissed. The time for realism and action is now."

Stern will be empowered to negotiate on behalf of the United States at climate change talks in Copenhagen in December and other bilateral discussions, Clinton said.

In his remarks, Stern thanked Secretary Clinton for the appointment and joked that he was first introduced to "Hillaryland" through his wife. He said of the climate change issue, "The time for denial, delay and dispute is over."

From NBC's Chuck Todd

One of the candidates to be President Obama's Commerce Secretary, retiring Symantec CEO John Thompson, appears to be the leading candidate now.

He's been dispatched for meetings with key members of the Senate for, shall we say, pre-screening. 

Some background:
-- Former President Bush appointed him to the National Infrastructure Advisory Committee (NIAC), to make recommendations regarding the security of the critical infrastructure of the United States.
-- Before Symantec, he was with IBM.
-- An FEC database search indicates Thompson has been a reliable Democratic donor to just about every major candidate in the last 10 years, with a couple of Republicans mixed in who have had some jurisdiction over issues related to Symantec.

From Chuck Todd, Mark Murray, and Domenico Montanaro
*** Checking all the boxes: It seems as if President Obama is using his first week in office to make sure many key constituency groups are happy -- from those that care most about international issues (see the naming of key envoys and State visit, as well as the GITMO closing), to those who care about the economy first (see the introduction of the new daily economic briefing, as well tomorrow's visit to Capitol Hill to sell the stimulus), and to those who care about women's issues (see Friday's executive order overturning the abortion gag rule). And today, at 10:30 am ET, Obama checks a box on the environment when he calls for federal regulators to address tighter fuel standards for cars. The New York Times has a good graf summing up all of these moves: "Obama will use the announcement to bolster the impression of a sharp break from the Bush era on all fronts, following his decisions last week to close the detention facility at Guantánamo Bay, Cuba; tighten limits on interrogation tactics by Central Intelligence Agency officers; order plans to withdraw combat forces from Iraq; and reverse President George W. Bush's financing restrictions on groups that promote or provide abortion overseas, administration officials said."

*** Looking for bipartisanship down the road: Why does bipartisanship support for the stimulus matter? Let's get one thing straight: Obama's stimulus plan is going to pass Congress, and the vote won't be that close. But this isn't the goal this week -- or next. For Team Obama, it's about winning over Republicans. And for some on the left, this doesn't compute. After all, some might ask, "Who cares? The election just happened and voters overwhelmingly chose Democrats to run the government, both in the White House and in Congress." But what Obama needs is a Republican Party that isn't consistently confrontational, because he's going to be asking for some trickier bills, including more money for the financial industry, potentially support for nationalizing some parts of the banking industry, and a bunch of money to shore up the housing crisis. So while Obama doesn't need GOP support for stimulus, he wants the opposition to be against him in a way that he can win them over for more favors and -- most importantly -- prevent potential filibusters.

Video: This week Obama will head to Capitol Hill to seek support for his economic stimulus plan. NBC's Chuck Todd reports.

*** The trial of the century: Pick your metaphor, Illinois Gov. Rod Blagojevich (D) is the hero in a film about Pearl Harbor, or a Frank Capra movie, or a spaghetti western. Or, as some of his critics like Chicago Mayor Richard Daley have suggested, perhaps he's an extra in "One Flew over the Cuckoo's Nest." Well, Blago gets to play the starring role in an impeachment trial drama in Springfield, Ill., that begins today. To oust the governor from office, at least 40 out of 59 state senators must vote to convict him. But Blago won't be there in person; he has boycotted the trial, calling it a "kangaroo court." Instead, he's conducting a series of media interviews. He told NBC's Amy Robach on TODAY that he didn't commit a crime. "I did nothing wrong, and if I did something wrong I would have resigned." And, as has been mentioned repeatedly over the weekend, Blago compared himself to Nelson Mandela, Gandhi, and Martin Luther King Jr.

Video: Gov. Rod Blagojevich tells NBC's Amy Robach he will boycott his impeachment trial.

*** How you really know you screwed things up: Just how badly did Blagojevich and New York Gov. David Paterson apparently botch their Senate appointments? Well, Sen. Russ Feingold announced yesterday that he will introduce a constitutional amendment this week to end gubernatorial appointments to the Senate, requiring special elections instead. Just askin,' but is Paterson the biggest loser out of this mess? Does this mean he doesn't seem so invulnerable to a primary challenge (from someone like Andrew Cuomo)? Speaking of Paterson and controversial appointments, Kirsten Gillibrand talked to NBC's Lester Holt in an interview that appeared this morning on TODAY. On whether she was Paterson's first choice: "In the end I was." On Caroline Kennedy: "I admire her very much." And on her support for gun rights: "It is part of our culture. It is part of our heritage." But she also said she wants to work with ardent gun opponent Rep. Carolyn McCarthy -- who says she'll challenge Gillibrand in a primary -- to reduce gun violence. Moreover, at 10:00 am ET today, Paterson delivers the keynote address at Gillibrand's economic development summit on green jobs and will hold a press avail afterward. 

*** The Never-Ending Recount, Day 83: In Minnesota today, a three-judge panel will begin hearing Norm Coleman's challenge to overturn Al Franken's 225-vote lead in the state's still-undecided Senate contest. The race, in fact, has now extended a whopping 83 days since Election Day. And given that this trial could last four to six weeks -- and also given that the loser of the trial can appeal to the state Supreme Court -- we might not know until February or March who'll fill this Senate seat. As the AP noted over the weekend, however, legal experts say Coleman faces the bigger challenge at the trial. "His lawyers have to produce proof of the irregularities and inconsistencies that they allege have made the vote tally fatally flawed. And even if the alleged mistakes are corrected, Franken would probably gain some more votes too."

Video: Norm Coleman will challenge the recount that gave Al Franken a 225-vote lead in the Minnesota senate race.

*** More fodder for the RNC? In addition to the controversy over Bill Lynn, the lobbyist whom Obama tapped to work at the Defense Department, the AP is reporting that while there will be no earmarking in the stimulus package at the congressional level, it could happen at the state and local level. "Instead, the money will be doled out according to arcane formulas spelled out in the bill and in some cases based on the decisions of Obama administration officials, governors and state and local agencies that will choose the projects." Close followers of government know that lobbyists at the state level are actually more influential on lawmakers than federal lobbyists are with members of Congress. And even more disconcerting to government watch-doggers, there are fewer watchdogs on state and local lawmakers than there are here in Washington. The question is whether this will catch fire and the transparency promises Obama wants in place on the national level can even be implemented on a state-by-state basis, or even a city-by-city basis. 
 
*** A sense of urgency: We've learned that the full Senate will vote on Tim Geithner's nomination to serve as Obama's Treasury secretary at 6:00 pm ET today. It's possible that Obama and Geithner -- if he's confirmed -- will do something right after the vote to get him sworn in as a way to show a sense of urgency.

*** Stuck in the middle with you? In our final look at some of the challenges facing the GOP, with the RNC chair race taking place this Friday, we examine the GOP's recent trouble with the political center. Obama beat McCain among independents by eight points, 52%-44% (and remember that McCain was perhaps the Republican who has the most appeal to independents and the middle). Moreover, while 49% of adults (including 36% of independents) viewed the Democratic Party favorably in December's NBC/WSJ poll, just 27% of adults (and 18% of independents) said the same about the GOP. And get this -- while 73% of Republicans in that December NBC/WSJ poll view Sarah Palin favorably, only 35% of the nation at large thinks that way. 

Countdown to RNC winter meeting: 2 days
Countdown to NJ GOP primary: 127 days
Countdown to VA Dem primary: 134 days
Countdown to Election Day 2009: 281 days
Countdown to Election Day 2010: 645 days

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Per the New York Times, "President Obama will direct federal regulators on Monday to move swiftly on an application by California and 13 other states to set strict automobile emission and fuel efficiency standards… The directive makes good on an Obama campaign pledge and signifies a sharp reversal of Bush administration policy. Granting California and the other states the right to regulate tailpipe emissions would be one of the most emphatic actions Mr. Obama could take to quickly put his stamp on environmental policy."

The AP adds, "Obama is poised to give states a freer hand in curbing emissions from cars, and to get his government moving on fuel-efficiency standards that could remake the auto industry… The attention to energy comes as Obama heads into his first full week as president, with an agenda dominated by economic woes and a push to get a huge stimulus plan through Congress."

The Washington Post says the move, "which the White House has privately trumpeted to supporters as 'the first environment and energy actions taken by the president, helping our country move toward greater energy independence,' could reverse two Bush-era decisions that have helped shape the nation's climate policy and its auto market." 

The Washington Post notes that GOP opposition to the stimulus is mounting. "Sen. John McCain (R-Ariz.), who lost the presidency to Obama last fall, declared that he opposes the bill in its current form, though he declined to say that he would try to filibuster its passage. 'I am opposed to most of the provisions in the bill. As it stands now, I would not support it,' McCain said on 'Fox News Sunday.' 'I mean, I want us all to sit down and negotiate. The Republicans have not been brought in to the degree that we should be into these negotiations and discussions.'"  

Also: "The House Republican leader, John A. Boehner (Ohio), predicted that members of his party will vote against the package because it includes too much spending that does not create jobs, and too few tax cuts. 'Right now, given the concerns that we have over the size of the package, I think a lot of Republicans will vote no, because they see this as a lot of wasteful Washington spending,' he said on NBC's 'Meet the Press.'"

Indeed, the Los Angeles Times observes how congressional Republicans are becoming more comfortable criticizing Obama. "Republicans signaled Sunday that they would not be daunted by President Obama's soaring approval ratings, criticizing his proposed $825-billion economic stimulus plan, his strategy for closing the prison at Guantanamo Bay, Cuba, and his decision to exempt a top-ranking Pentagon appointee from new ethics rules."

That said, "Obama's decision to go to the Capitol to meet with the opposing party just days after his inauguration is unusual. Bush met only twice in eight years with House Democrats, and only at retreats outside Washington. "

The worst kept secret in DC: the fact that the Obama admin will ask for BILLIONS more dollars to bail out the financial industry, above and beyond the remaining $350 billion they have at their disposal.

Biden, appearing on CBS's Face the Nation, "said the plan offered by Democrats would likely change as it wends its way through Congress. But he said that the package was already the product of bipartisan negotiation."

The Chicago Tribune breaks down the impeachment trial that begins today. "With senators serving as Blagojevich's judge and jury, House representatives prosecuting the case, and the governor mounting no defense and likely not attending, the Senate trial is expected to conclude within days. A conviction, which would require at least 40 of the 59 senators, would result in the governor's immediate removal from office."

More: "Over the weekend, House prosecutors moved swiftly to ask that four secret recordings of the governor, part of the federal criminal charges that led to his arrest, be played in the Senate. The recordings involve alleged attempts by the two-term Democratic governor to secure campaign funds from the horse-racing industry in return for signing a bill to divert casino gambling revenue to horse tracks."

"The impeachment of Blagojevich, who compared himself Sunday with persecuted icons Nelson Mandela and Mahatma Gandhi, is a foregone conclusion. The vote to convict him could come as early as Monday. But the governor, who was caught on FBI wiretaps scheming to sell President Obama's vacated Senate seat, is ignoring the whole thing."

The AP: "Legal experts see little benefit to Blagojevich from boycotting the trial while refusing to resign. The decision means he'll still be leaving office soon, but only after proceedings guaranteed to put him in a bad light. Senators, and thus the public, will hear details of the criminal charges against Blagojevich. They're likely to hear recordings that allegedly reveal the governor talking about signing legislation in exchange for campaign contributions. And in addition to simply removing Blagojevich, the Senate could vote to bar him from ever again holding public office in Illinois."

OBAMA'S DEMOCRATIC PARTY.
The New York Times front-pages how Team Obama is trying to integrate its supporters into the governing process. 
 
Politico takes a look at the problems the Dem Party may have in raising money -- thanks to a recession and an Obama-run DNC that could siphon off 2010 money. 
 
This is a fascinating story if it's true... A slew of Dem lobbyists are laundering themselves on Cap Hill as chiefs of staff to senators or House members in order to make themselves eligible for an Obama admin job in a year or so.
  
By the way, will Congress follow the president's suit and freeze salaries? Seems like a no-brainer politically.

"Congress is set to tackle the economy this week by considering President Barack Obama's choice to head the Treasury Department and by acting on legislation to spur economic growth. The Senate could confirm Timothy Geithner as Treasury secretary as early as Monday, after delaying a vote because Geithner failed to pay some of his federal taxes earlier this decade."

The Washington Post profiles Colorado's newest senator, Michael Bennet. "The 44-year-old Democrat, who has never even run for elected office, was sworn in Thursday as the youngest, greenest and least well-known member of the Senate. In the span of three weeks, he went from Denver schools superintendent to U.S. senator, a dizzying ascent for a man whose life has been marked by unusual turns."

More: "He gave up $5 million in unvested stock and a job in finance for the low-paying, high-stress position of chief of staff to Hickenlooper. He left that post to take the helm of an urban school district. Throughout his working life, Bennet has zigged and zagged between seemingly unrelated jobs for which he had no prior experience. And in each case, he left with a measure of success… [Colorado Gov. Bill] Ritter said that he was most impressed by Bennet's intellectual depth, geniality and political savvy and that he recognized similarities to his own start in politics. 'I became a district attorney in 1993 by appointment,' Ritter said. 'I was a total dark horse. The governor saw potential in me, and it worked out.'"

Rep. Jim Clyburn doesn't expect health care reform to be tackled this year. And he challenged Republicans to invite Obama to their winter retreat, as Dems did for Bush.  

"Tucked deep inside President Barack Obama's new White House Web site last week was a little-noticed campaign pledge that is already causing heartburn on Capitol Hill: a commitment to slash earmarks back to 1994 levels, a nearly 75 percent cut from 2006," Roll Call writes. "Several appropriators said they were unaware of the pledge -- initially made during the presidential campaign... . Appropriators on both sides of Capitol Hill generally resist the idea of slashing earmarks that dramatically, arguing that it is always in the White House's interest to eliminate them because it gives the administration the power to decide how to spend the money."

MINNESOTA: The trial in Minnesota's undecided Senate race begins today. "Three district judges appointed for the job will be hearing the case brought by Republican Norm Coleman to overturn the current 225-vote lead held by Democrat Al Franken," the AP says. "Legal experts believe Coleman faces a bigger challenge. His lawyers have to produce proof of the irregularities and inconsistencies that they allege have made the vote tally fatally flawed. And even if the alleged mistakes are corrected, Franken would probably gain some more votes too. The trial could last weeks." 

The Washington Post: "Coleman's attorneys are arguing that the canvassing board that oversaw the hand recount established no uniform standard for reviewing the nearly 13,000 absentee ballots rejected on Election Day. The board ultimately allowed in 933 such ballots, which tilted the race from a jump ball to a 225-vote edge for Franken. Coleman hopes an additional 3,000 to 5,000 rejected absentee ballots will be allowed into the count, which could flip the race back to him. The lawyers also contend that this trial phase will allow them to fully litigate other issues, including Coleman's contention that more than 100 votes from a Franken-friendly precinct in Minneapolis were counted twice." 

The Minneapolis Star Tribune profiles the three judges who will hear the legal contest. "The judges -- from St. Cloud, Minneapolis and Thief River Falls -- are largely unknown outside their community's legal circles. One made a controversial ruling in a cop-killing case. Another hangs her kindergarten diploma in her office. The third has 'the patience of Job,' according to a colleague, which might not be a bad qualification in the weeks ahead."  

NEW YORK: "Caroline Kennedy's 'personal reasons' for withdrawing from Senate consideration were not connected to damaging claims from Gov. Paterson's camp that she owed back taxes, had a nanny problem or faced a marital scandal, two sources close to her have told The Post." The sources said the personal reasons had nothing to do with taxes, nannies or her husband, but they didn't say what the reason was. They said she would have taken the job had Paterson acted earlier, because the problem hadn't yet arisen. 
 
Gillibrand may be shifting on gun rights. She "pledged Sunday to combat gun violence while protecting hunters' rights, saying 'there's enormous space for common ground' on issues that she differs from fellow New York Democrats," the AP says. "Gillibrand met Sunday with Gov. David Paterson, senior Sen. Charles Schumer and Secretary of State Hillary Rodham Clinton, whose vacant Senate seat Gillibrand was appointed to fill Friday." 
 
"Judy Smith, a Washington-based PR guru and former Bush White House deputy press secretary, orchestrated the ill-conceived character attack on Kennedy, sources said Sunday," the New York Daily News' Benjamin reports. 
 
The end for Paterson? "Paterson's handling of the U.S. Senate appointment has even his allies critical of the governor -- and fearful that erosion in public confidence in him could impact efforts next year by Democrats to keep their tenuous control over the state Senate as well as the controller's office," the New York Daily News reports. 

Roll Call curtain raises NRSC Chairman John Cornyn's pitch to some potential 2010 Senate candidates, and why they shouldn't run for U.S. House: "In describing a conversation with Rep. Mike Castle (R-Del.), whom Cornyn is trying to lure to run for what will be an open seat in 2010, the NRSC chairman said: 'Being in the House right now -- and as a Republican -- is not a lot of fun. So I think it's more fun, and you can have a lot of impact being in the Senate right now, so I hope he'll come join us.'" 
 
OHIO: Rob Portman "was at NRSC headquarters [last] week presumably to discuss his Senate bid in Ohio. Portman announced last week that he was running to replace Sen. George Voinovich (R-Ohio), who announced his retirement on Jan. 12."

From NBC's Athena Jones
The excitement never ends in the White House briefing room.

A day after President Obama visited the press corps, creating a mob scene in the narrow hallways and small booths where reporters, photographers and television producers spend their days, the motor in one of the doors to the briefing room malfunctioned and began to smoke Friday.

The door got stuck when Obama aide Bill Burton tried to enter the room and another reporter was leaving.

The smell of burning metal filled the room and cameras and photographers battled for position to capture technicians as they opened the box covering the motor.

Note, there were no flames, but talk about trial by fire.

From NBC's Ken Strickland
The Obama administration has given an ethics waiver for Bill Lynn, a Defense Department nominee who is a former lobbyist. 

In a written statement released moments ago, Armed Service Committee Chairman Carl Levin said the administration "has removed an obstacle to the confirmation of Bill Lynn to be Deputy Secretary of Defense by waiving the provisions of President Obama's Executive Order on Ethics Commitments that would have precluded Mr. Lynn's service."

*** UPDATE *** Yesterday, Levin said he would have to delay Lynn's confirmation process because as a former defense lobbyist for Raytheon, Lynn's service would conflict with the Administration's new ethics rules.  Those rules prohibit former lobbyist from working in the area they once lobbied, unless a waiver is given. 

Even with the waiver, Levin said today the committee "will continue to insist that Mr. Lynn comply with a strict set of ethics rules... including the requirement to recuse himself, for a period of one year, from any decisions involving his prior employer, unless specifically authorized to participate by an appropriate ethics official."

The move immediately drew criticism from Sen. John McCain, the top Republican on the Armed Services Committee. "I am disappointed in President Obama's decision to waive the 'revolving door' provisions of the executive order for Mr. Bill Lynn," he said in a written statement. "While I applaud the President's action to implement new, more stringent ethical rules, I had hoped he would not find it necessary to waive them so soon." 

McCain also said he would need to ask Lynn "to clarify for the record what matters and decisions will require his recusal" before he decided to support his confirmation.