From NBC's Courtney Kube
Just one week after the Army announced that more U.S. soldiers killed themselves in 2008 than in any other year on record, the U.S. Army announced today that they had 24 possible suicides during the month of January.

Video: Steep rise in soldier suicides.

That is more than the nine soldiers killed in Afghanistan last month, and the 14 killed in Iraq -- combined.

These numbers are up dramatically from the past few years' Januaries, too: January 2008 (4), 2007 (6), 2006 (10), 2005 (4), 2004 (3).

Just last week the Army announced a new service-wide training initiative to educate soldiers about suicide among the ranks. As many as 143 soldiers took their own lives last year, with 128 confirmed and 15 still pending investigation.

From NBC's Ken Strickland
Q: When's the thing gonna get passed?
A: Tonight, maybe. Senate Majority Leader Reid would like to pass it tonight, but it would probably be late evening if it happens today. That said, if Dems and Repubs don't play nice, it could be this weekend.

Video: NBC's Chuck Todd examines a potential blame game that may be unfolding on Capitol Hill regarding the proposed economic stimulus plan.

Q: What's the hold up?
A: Amendments. Everybody and their mother wants a vote on their amendment to "make the bill better." Reid and Senate Minority Leader McConnell have to figure out which amendments get votes and how much time to debate each one. There are dozens of amendments floating around and several difference areas: more taxes cuts, more energy, less pork, etc. (You name it, they've got one.)

Q: What's key to watch for?
A: The Nelson-Collins amendment. Ben Nelson (D) and Susan Collins (R) are working with Obama to cut about $100 billion of questionable spending from the bill. It would also have the likely side effect of bringing at least a half dozen Republicans on board to support the bill.
At this hour behind closed doors, Nelson and Collins are leading discussions of a bipartisan group that has grown to as many as 20 members on what spending measure should be cut from the bill. "We've agreed to tens of billions of dollars of adjustments and I think we're making good progress," Collins said during a break in the meeting. "It's been a painstaking, very thorough, very comprehensive process where we're going through line by line." 

Q: What else do you need to know?
A: It ain't over.  When the Senate passes it, there are still more hurdles before it gets to Obama. One, the House and Senate bills must be reconciled. Two, the new bill has to voted on by the House and Senate. And three, if both chambers pass the new bill, then it's over.

From NBC's Pete Williams
Breaking news: U.S. Supreme Court Justice Ruth Bader Ginsburg had surgery for pancreatic cancer at the Memorial Sloan-Kettering Cancer Center in New York City.

Video: Watch MSNBC's coverage of the Ginsburg news with NBC's Andrea Mitchell and Pete Williams.

The Supreme Court sends along this information: "According to Dr. Murray Brennan, the attending surgeon, Justice Ginsburg will likely remain in the hospital approximately 7-10 days.

Justice Ginsburg had no symptoms prior to the incidental discovery of the lesion during a routine annual check-up in late January at the National Institutes of Health in Bethesda, Maryland. A Computerized Axial Tomography (CAT) Scan revealed a small tumor, approximately 1 cm across, in the center of the pancreas." 

The announcement of the details of Justice Ginsburg's surgery, right down to the specific size of the tumor, is unusual for the Supreme Court.

Ordinarily, information about the health of the justices, especially any medical procedures, tends to be quite general.

This is an indication that the Justice Ginsburg, herself, wanted full disclosure.

From Chuck Todd, Mark Murray, and Domenico Montanaro
*** Back to candidate Obama: The president is ramping up the rhetoric as he tries to get back on offense to sell his economic stimulus plan. It started yesterday with two events, where for the first time in public he reminded folks who won the election, pointing to the scoreboard. And now he has an op-ed in the Washington Post. The op-ed's message -- not to the public, but rather to Washington (i.e. Congress and the media) -- makes another case for passage of the plan. Of course, the irony of this ramping up is that it's the Republicans who have come after this bill like a campaign, finding the negatives in the smallest of places and creating bumper-sticker attacks on them. The White House didn't seem ready to deal with the small-ball campaign tactics, hoping they could stay at 30,000 feet when selling the stimulus. Well, think again.

*** One year ago today…: Sticking with the campaign theme, today happens to be the one-year anniversary of Super Tuesday, when Hillary Clinton won the big states (California, New Jersey, New York), but Obama ended up netting more delegates. Seems like a lifetime ago, right? Super Tuesday, in fact, was perhaps the ultimate example of how well Obama's campaign did the little things right -- like organizing for the Idaho caucuses. But in these first 16 days, the Obama White House hasn't done the little things in this battle for the stimulus, and that's why they seem to be losing the spin war. The good news? They'll get their stimulus and learn a valuable lesson: They need to remember what got them here and never stop learning those "little things" lessons, like dispatching more surrogates to TV.

*** At least he didn't use a Nazi metaphor: When you're in campaign mode, it's probably best to choose your words -- and metaphors -- wisely. Texas Rep. Pete Sessions (R), the chairman of the National Republican Congressional Committee, didn't exactly do that when speaking yesterday to editors at The Hotline. Sessions referred to the Taliban when talking about the GOP's resistance to the stimulus, as well as its strategy as the minority party. "Insurgency, we understand perhaps a little bit more because of the Taliban," he said. "And that is that they went about systematically understanding how to disrupt and change a person's entire processes. And these Taliban -- I'm not trying to say the Republican Party is the Taliban -- no, that's not what we're saying. I'm saying an example of how you go about is to change a person from their messaging to their operations to their frontline message. And we need to understand that insurgency may be required when the other side, the House leadership, does not follow the same commands, which we entered the game with." Wow, we can think of plenty of other examples of insurgencies (American Revolution, Indian resistance to Great Britain), but the Taliban? Imagine what Drudge would do if a Democrat said this. 

*** Today's moving parts: It's another busy day in politics. President Obama just finished speaking at the National Prayer Breakfast (where he's talking about his vision for faith-based policies); he will later sign an executive order forming his advisory council on faith; and then he gives remarks at noon ET at the Energy Department.

Video: Obama talks faith and good works.

In addition, Senate Majority Leader Harry Reid said, per the New York Times, that a final vote on the Senate's stimulus legislation could happen tonight (which would allow senators to attend this weekend's conference in Munich). And Obama's pick to head the CIA, Leon Panetta, has his confirmation hearing before the Senate Intelligence Committee at 2:30 pm ET.

*** The intended effect: While plenty of day-after reports about Obama's CEO pay announcement note that it lacks some teeth and has its share of loopholes, the reaction from Wall Street firms seems to suggest that the plan might have its intended impact. Check this out: "On Wednesday, for instance, David A. Viniar, the chief financial officer of Goldman Sachs, which received $10 billion from the Treasury Department, told analysts that his firm wanted to repay the government as quickly as feasible to 'be under less scrutiny and under less pressure,' according to Bloomberg News."

*** Dodd and 2010: Earlier this week, Democratic Sen. Chris Dodd announced that he was refinancing the controversial VIP mortgages he received from Countywide.

And given that Dodd's up for re-election in 2010, the National Republican Senatorial Committee pounced on that news. While Connecticut is a fairly blue state, it will be interesting whether the Countrywide controversy or even Dodd's own presidential bid could make him vulnerable next year. Remember, when the recession began, the chairman of the Senate Banking Committee wasn't in Washington or Connecticut -- but in Iowa. That's an easy 30-second TV ad to write. Republicans in Connecticut, of course, have not fielded a competitive candidate for federal statewide office since Lowell Weicker, and he's now (basically) a Democrat. The one Republican Dodd may fear the most is recently ousted moderate Republican Chris Shays. If Obama wants to do Dodd a favor, he'll find a job for Shays. Perhaps the Peace Corps?

*** The never-ending recount: In the latest activity in Minnesota, Franken's attorneys today will bring a case before the state Supreme Court, arguing that Franken -- because he was ahead by 225 votes when the vote was certified -- should be seated in the U.S. Senate, despite the ongoing legal contest over the recount. The Minneapolis Star Tribune reminds us, "Gov. Tim Pawlenty, a Republican, and Secretary of State Mark Ritchie, a Democrat, have declined to sign an election certificate because state law says none can be issued before the legal battle ends."

Countdown to NJ GOP primary: 117 days
Countdown to VA Dem primary: 124 days
Countdown to Election Day 2009: 271 days
Countdown to Election Day 2010: 635 days

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As expected, the cost of the package in the Senate -- even with Republican input -- is going UP, not down. "The Senate on Wednesday voted to expand the economic stimulus package with a tax credit for homebuyers of up to $15,000, a provision championed by Republicans as addressing a root cause of the recession. The vote to add the tax credit, at a cost of about $18.5 billion, came as Senate leaders seemed to be nearing completion of negotiations. The majority leader, Senator Harry Reid of Nevada, suggested that a final vote on the stimulus plan could come on Thursday."

The AP calls the homebuyer addition "a victory for Republicans eager to leave their mark on a mammoth economic stimulus bill at the heart of President Obama's recovery plan." (So if the addition was a GOP victory, why did we get an email this morning from McConnell's office, saying: "It's Thursday in the Senate and as the ever expanding spending bill continues to grow due to Congressional Democrats who just can't help themselves"?)

Politico writes that Obama, so far, is losing the message war over the stimulus. "Despite Obama's sky high personal approval ratings, polls show support has declined for his stimulus bill since Republicans and their conservative talk-radio allies began railing against what they labeled as pork barrel spending within it."

But another Politico article might explain why Obama and the Democrats are losing: "[M]ore congressional Republicans than Democrats appeared on all of the major cable news networks -- CNN, Fox News, Fox Business and CNBC -- during three days last week surrounding the House vote on the stimulus plan. That's according to a report by Think Progress, a project of the left-leaning Center for American Progress, which added up congressional TV hits related to the stimulus bill."

"While the [National Endowment of the Arts] money is a minuscule portion of the $819 billion House bill, it has become a lightning rod for some critics, who question whether the dollars for the arts will create many jobs -- and who see the money as a symbol of House Democrats trying to lard up the plan with spending wish lists that have been pent up for years," the Boston Globe says. "The criticism has reached such a crescendo that some arts advocates are concerned that the push for the $50 million could backfire, reigniting a debate over the value of taxpayers funding everything from "poetry out loud" events to community theater."

Roll Call previews today's House Dem retreat, including the tension between Pelosi and Dem moderates, who want more legislative input.

And here it comes? "Hoping to keep House Democrats' ethics woes in the spotlight, Rep. John Carter (R-Texas) offered a resolution on the floor Wednesday demanding that Ways and Means Chairman Charlie Rangel (D-N.Y.) resign from his post amid an ongoing investigation into his personal finances."

The Wall Street Journal: "President Barack Obama laid out strict new regulations on executive compensation Wednesday, strafing Wall Street with tough talk as Washington asserts increasing control over a financial sector seeking more government funds… The rules do not apply retroactively, not even to those firms that have already been bailed out. But they will be imposed on all companies -- in the financial, auto or other sectors -- receiving any future help. This includes those that have received assistance already."

The reaction from Wall Street firms suggests the plan might have its intended impact. "On Wednesday, for instance, David A. Viniar, the chief financial officer of Goldman Sachs, which received $10 billion from the Treasury Department, told analysts that his firm wanted to repay the government as quickly as feasible to 'be under less scrutiny and under less pressure,' according to Bloomberg News."

The Washington Post says Obama "is struggling to contend with a different emotion among Americans -- anger. Livid about their own vanished jobs and decimated retirement accounts, people across the country are being subjected to story after story about the excesses of the wealthy: the $18 billion paid out in Wall Street bonuses last year, the $35,000 chest of drawers for the Merrill Lynch chief executive's office, the planned Wells Fargo retreat in Las Vegas. This week, they got a new target: an Obama Cabinet nominee who had earned millions and failed to pay all of his taxes."

The AP: "Obama planned to sign an executive order on Thursday forming the White House Office of Faith-based and Neighborhood Partnerships, the White House said. But the order also directs White House staff and lawyers and the Justice Department to develop a policy that would guide how government-supported programs can hire staff, according to a religious leader with knowledge of the plans. The official spoke on condition of anonymity because the details have not been released."

The AP also curtain-raises today's Panetta confirmation hearing. Noting that he will have to give up seats on corporate boards as well as speeches: "Panetta earned more than $800,000 in director's and consultant's fees, including a $50,000 salary as a professor at Santa Clara University in California. He also netted an additional $250,000 for 12 speeches last year, several of which earned him $28,000 apiece." He was paid for speeches by troubled financial institutions -- Wachovia and Merrill Lynch. But though he was a surprise pick and the Obama team committed the sin of bad manners (by not telling Dianne Feinstein and other intel senators), "Panetta was not expected to face major opposition."

Meanwhile, "An ex-aide to Commerce Secretary nominee Judd Gregg is under investigation for allegedly taking baseball and hockey tickets from a lobbyist in exchange for legislative favors. The revelation comes at a particularly bad time for President Barack Obama's administration, a day after he had to defend his selection process because two high-profile nominees withdrew due to tax problems… White House spokesman Robert Gibbs said Wednesday that Gregg 'is neither a target nor a subject' of the investigation, and he noted the aide in question stopped working for Gregg four years ago." 
 
Gregg, by the way, supports the stimulus, but still won't vote on it. "I'm going to support something that I think makes sense, and I think a major stimulus package, and I have said that all along, makes a lot of sense," Gregg told CNBC.

The AP: "Obama was to sign a presidential memorandum Thursday directing the Energy Department to get moving on energy standards for appliances, including a first batch he will order to be finalized by August. The fact that Obama is getting directly involved in speeding up household appliance standards underscores how much he wants to show quick, clear progress on energy -- part of a broader campaign promise to deal with economic and energy concerns all at once."

MINNESOTA:

Franken's attorneys will argue before the state Supreme Court "whether Franken should be seated in the Senate while their courtroom election fight continues… At 9 this morning, the Minnesota Supreme Court will hear Franken's motion to be granted a provisional certificate of election. Gov. Tim Pawlenty, a Republican, and Secretary of State Mark Ritchie, a Democrat, have declined to sign an election certificate because state law says none can be issued before the legal battle ends." 

The AP looks at the Senate landscape next year and finds reason for optimism for Democrats -- though Republicans have some opportunities as well. 
 
"Former Massachusetts Gov. Mitt Romney will headline the National Republican Senatorial Committee's annual fundraising dinner, keeping the potential 2012 presidential candidate's name in the news while providing minority Republicans with some much-needed cash." 
 
NEW HAMPSHIRE: Rep. Paul Hodes announced he's jumping into the Senate race for the potentially open seat -- if Judd Gregg's confirmed. 
 
OHIO: "Republican state Sen. Kevin Coughlin says he's running for governor in Ohio." Current Gov. Ted Strickland hasn't officially declared a reelection run yet though he's been raising money. And former GOP Rep. John Kasich is also "exploring a run." 
 
"A Quinnipiac University survey showed Ohio Lt. Gov. Lee Fisher (D) ahead of Portman in a hypothetical 2010 matchup, 42 percent to 27 percent, with 29 percent undecided."

From NBC's Athena Jones

WASHINGTON -- President Obama signed his second major piece of legislation into law Wednesday, calling the bill that expands health-care coverage for children a downpayment on reform.

The law continues government aid to cover seven million children, provides an additional four million children with coverage and lifts the ban on states providing insurance to legal immigrant children.

Obama said America's responsibility to ensure the health and well-being of the nation's children had only grown more urgent during this time of economic crisis and that signing this bill was only the beginning of what he hoped to do as president. 

"This bill is only a first step," he said. "The way I see it, providing coverage to 11 million children through CHIP is a down payment on my commitment to cover every single American and it is just one component of a much broader effort to finally bring our health care system into the twenty-first century."

He tied the SCHIP legislation to the economic recovery package making its way through Congress and again called for its swift passage.

"If Congress passes this recovery plan, in just one month, we'll have done more to modernize our health care system than we've done in the past decade," Obama told the audience assembled in the East Room, going on to talk about provisions included in the package that would computerize medical records, invest in prevention and extend health insurance for the unemployment.

Vice President Joe Biden, House Speaker Nancy Pelosi, Reps. Jim Clyburn, Charlie Rangel, Steny Hoyer, Henry Waxman, Jan Schakowsky and Sens. Harry Reid, Dick Durbin, Olympia Snowe and Dick Lugar were among those who joined the president on stage for the signing ceremony.

Also in attendance were New York Gov. David Paterson, Michigan Gov. Jennifer Granholm, New York Rep. Anthony Weiner and Senior Advisor Valerie Jarrett.

After signing the bill, which Obama hailed as a bipartisan effort, the president and first lady spent a few minutes mingling with the guests as the pianist played a series of tunes, starting with "The Greatest Love of All," which begins with the line "I believe the children are our future."

From NBC's Abby Livingston
The Boss is livid.

Riding high after Bruce Springsteen's Super Bowl appearance on February, fans looking to purchase face-value tickets from Ticketmaster.com encountered computer difficulties that slowed down purchases. When fans finally got through the online purchasing process on the site, they found themselves stuck with nosebleed seats, split-up groups, or worse, the concerts were sold out in minutes.

Later in the day, fans who went to TicketMaster to purchase tickets, discovered an option called "TicketsNow," which sold seats at substantially higher rates.

The rub? TicketsNow is a subsidiary of TicketMaster.

Then Congressman Bill Pascrell, Jr. of New Jersey entered the fray, filing a complaint with the Federal Trade Commission and the Department of Justice. Spokespeople from the FTC and DOJ acknowledged they had received the letters, but would not comment on the status of the complaint. 

"Scores of fans in New Jersey were met with technical difficulty on Ticketmaster.com that impaired them from making a purchase," Pascrell wrote. "Thousands of others who were fortunate enough to get beyond the technical problems were informed that the shows were sold out. …The speed with which tickets were made available on Ticketmaster's official resale affiliate site raises questions about whether TicketsNow brokers were given preferential treatment instead of competing on a level playing field with average consumers to purchase the tickets.

Springsteen agreed with Pascrell's assessment that it was a "conflict of interest," and in a letter to his fans, wrote, "The abuse of our fans and our trust by Ticketmaster has made us as furious as it has made many of you."

Springsteen called the practice between Ticketmaster and TicketsNow "scalping" and urged his fans to contact their Congressional representation on the matter. "Ticketmaster is there to ensure that we have a good, fair sale of our tickets at their face value plus normal ticketing charges," he also wrote. "TicketsNow is supposed to be a secondary site where people who already have tickets may exchange, trade, and, unfortunately, speculate with them. We have asked this redirection from Ticketmaster to TicketsNow cease and desist immediately and Ticketmaster has agreed to do so in the future and has removed its unwanted material from their and our site."

Neither TicketMaster or TicketsNow have returned calls or emails to NBC News.

*** UPDATE *** And now the New Jersey Attorney General's office is getting involved. The Springsteen camp sent NBC News a statement from the Attorney General's Office and the New Jersey Office of Consumer Affairs.

"Consumers are questioning what transpired and if they had an equal opportunity to purchase these concert tickets. We share these concerns and are investigating this matter," Attorney General Anne Milgram said.

From NBC's Libby Leist and Blayne Alexander
Secretary of State Clinton seemed to charm State Department employees today in her first town hall meeting as Secretary of State -- mixing serious business with some humor. Clinton described the gathering as "the latest of my listening tours," a reference to her days as a candidate for the Senate in New York.

She answered questions on a range of issues facing the State Department: everything from the role of the new special envoys to how to better fund the the department. But, there were some lighter moments, too -- like when she got a question about using science as a tool in public diplomacy.

Clinton began: "I was deeply disturbed as Senator and certainly during my presidential campaign."

Then she stopped and asked, "You know I ran for President...?" The audience broke out in laughter. She added, chuckling, "I sometimes totally forget that; it was like a blur it went by so fast."

She also stirred the pot by cracking a joke about the food in the cafeteria. She announced that starting Friday, State Department employees will be able to submit their ideas and suggestions on an internal Web site, but she pleaded, "I hope that we don't have most of the suggestions related to the food in the cafeteria."

Then there was this. A State Department employee came to the mic to let her know about the concerts and talent shows she organizes in the department. She then extended an open invitation to Bill to come play his saxaphone.

The room erupted in laughter and Secretary Clinton told the woman she chose the right member of her family for a talent show.

From NBC's Tom Costello
The House has voted to delay the digital TV conversion to June 12th.

The Senate has already voted to delay.

On Jan. 28th, the House defeated the first attempt at the delay.

From NBC's Mark Murray
Virginia gubernatorial candidate Terry McAuliffe (D) has released a new TV ad, which will air in the Richmond media market. A la Hillary Clinton in March-April '08, it seems that the Macker is trying to own the issue of the economy, to blunt what might be other concerns about his candidacy.

"I've spent four decades building business and creating jobs," McAuliffe says, looking at the camera. "I'm running for Governor because that's the experience we need now."

[Youtube:rbwqttpGb7Y]

The script:
McAuliffe: Circuit City closing its doors. 30,000 jobs lost. 1,500 of them … right here in Richmond.
I'm Terry McAuliffe. Times are tough, but there are solutions. We've got to retrain our workers … invest in renewable energy … and help universities like VCU … turn new discoveries into new jobs.
I've spent four decades building business and creating jobs. I'm running for Governor because that's the experience we need now.
I'll make it my job to protect your job.

From NBC's Ken Strickland
GOP Sens. Olympia Snowe (at 12:45 pm ET) and Susan Collins (3:30 pm ET), as well as Democratic Sen. Ben Nelson (4:00 pm ET), are meeting with President Obama today at the White House to talk about the stimulus.

Collins and Nelson are working together to draft a bill that could cut as much as $200 billion in questionable items from the stimulus package. It's a work in progress with no hard numbers or details just yet on which things would be eliminated. We're told there are more than 20 other senators working on this effort.

From NBC's Athena Jones

WASHINGTON -- President Obama used the announcement of restrictions on executive compensation for banks receiving federal aid to remind Congress and the American public who won the election and to push for passage of his recovery plan.

In a reprisal of one of the main themes of his fall campaign, Obama answered critics of his proposed stimulus package -- saying it was not just a plan for short-term spending, but one for long-term economic growth -- and used strong language to argue that the current crisis was caused, in part, by old approaches to solving problems.

"In the past few days I've heard criticisms that this plan is somehow wanting and these criticisms echo the very same failed economic theories that led us into this crisis in the first place," the president began.

"The notion that tax cuts alone will solve all our problems; that we can ignore fundamental challenges like energy independence and the high cost of health care, that we can somehow deal with this in piecemeal fashion and still expect our economy and our country to thrive," he continued. "I reject those theories, and so did the American people when they went to the polls in November and voted resoundingly for change."

Obama urged Congress to "act without delay" and to "not make the perfect the enemy of the essential" in passing the plan.

He made the remarks, alongside Treasury Secretary Tim Geithner, as the pair announced plans to limit to $500,000 the annual compensation for executives for companies that get bailout money. Any additional pay would have to be in restricted stock that does not vest until taxpayers have been repaid. Under the new guidelines, golden parachutes will be restricted, investors will have a say in salary structures for top executives and banks will face tougher transparency rules.

Geithner said the guidelines were meant to strengthen the public's trust in financial institutions, but it was unclear how the new rules would be enforced or what would happen to firms that violated them. In lieu of specific enforcement measures, senior officials pointed to current regulators and the notion of naming and shaming companies as a way of encouraging compliance with the new rules.

The president has spoken of the need for a plan to help restore stability to the banking system and next week Geithner is set to release what Obama called a "new strategy to get credit moving again -- a strategy that will reflect the lessons of past mistakes while laying a foundation for the future."

From NBC's Libby Leist

The State Department confirms that the USA Badminton team has been forced to cancel its trip to Iran because Iranian officials did not issue the team visas in time for the tournament that begins tomorrow.

The State Department is privately furious, and spokesman Robert Wood said on the record this morning that it was "a very unfortunate situation" and "not a good sign."

He said the U.S. is working through Swiss intermediaries to find out what happened and USA Badminton is seeking clarification from Iranian badminton representatives.

Wood even hinted this move by the Iranians could factor into the Obama administration's Iran policy review. 

From NBC's Mark Murray
As the Senate debates an economic stimulus plan whose price tag could come close to $900 billion, the Peter G. Peterson Foundation -- a non-partisan group created to bring awareness to the nation's rising spending and entitlement costs -- is launching an ad campaign to urge the Obama White House and Congress to address long-term fiscal challenges.

That campaign began today with a print advertisement in the Washington Post and Roll Call. "Today's economic crisis is just the tip of the iceberg," the ad says, with the picture of a gigantic iceberg. "We must also focus on a much larger yet less visible threat: the $56 trillion in liabilities and unfunded retirement and health care obligations (that's $483,000 per U.S. household), and the dangerous reliance on foreign lenders, that threaten our ship of state."

Tomorrow, Peterson Foundation president Dave Walker -- along with Sens. Kent Conrad (D) and George Voinovich (R), and Reps. Frank Wolf (R) and Jim Cooper (D) -- will hold a press conference to announce the group's full plans for a $1 million-plus advertising campaign.

From NBC's White House Team
During  his presidential campaign, Barack Obama never shied away from the fact he'd be open to having faith groups have a major role -- not unlike George W. Bush's famous office of faith based initiatives. On Thursday, President Obama will roll out details of how he'll form his faith based office. 

According to a White House official, key members of the president's faith council will meet with the president at the White House after tomorrow's National Prayer Breakfast.
 
The basic structure of the faith based office will remain the same: a White House Office, and Centers for Faith-Based and Neighborhood Partnerships in the executive agencies. Note the inclusion of the phrase "neighborhood partnerships" in addition to the faith-based part of this office. This may quiet the criticism from secular non-profit groups that felt the Bush White House's faith-based office wasn't open to them.
 
The office is supposed to be a substantial programming and policy arm of the federal government. Ideally, the office would serve as the primary mechanism for federal agencies to connect with local neighborhood and faith-based groups to deliver social services.  
 
One new addition to the Office of Faith-Based initiatives: an advisory council of 25 leaders, both religious and secular, who will provide advice on policy issues. The Council is supposed to be bipartisan and include voices from across the religious spectrum as well.

From NBC's Mark Murray
This can't be good for the New York governor's chances in 2010... "A review of public comments and interviews with more than a dozen people involved in the process make clear that Gov. David Paterson's administration released confidential information about [Caroline] Kennedy and misled reporters about its significance as part of an orchestrated effort to discredit her after she withdrew," the New York Times reports.

More: "One of the administration's central claims to reporters was that Ms. Kennedy had, in the words of a person close to the governor, 'a definite tax issue' and 'a nanny problem' that 'she didn't want to become public.' But that story was inaccurate. The governor and his aides now acknowledge that those issues — a tax lien of a few hundred dollars in 1994, and a lapsed visa for a foreign nanny who worked for Ms. Kennedy during the late 1980s — had been resolved years earlier and were never considered disqualifying during the vetting process."

"According to advisers to the governor who were involved in the process, the leaks against Ms. Kennedy were coordinated by Judith A. Smith, a consultant who has been acting as the governor's top communications strategist."

By the way, who is Judy Smith? A former Bush deputy press secretary...
*** Clarification *** She worked for Bush 41, not Bush 43.

From Chuck Todd, Mark Murray, and Domenico Montanaro
*** The ways of Washington: When Barack Obama launched his presidential bid in Springfield, IL, here's what he said: "I know I haven't spent a lot of time learning the ways of Washington. But I've been there long enough to know that the ways of Washington must change." The irony? The folks that have caused him the most trouble in the last two years have old Washington hands like Jim Johnson, Bill Richardson, and Tom Daschle. If President Obama listened to his own rhetoric, he would have avoided all three embarrassments. He's been making the case of changing the ways Washington did business, and NOT relying on old Washington hands is one of the ways to avoid old mistakes. There is a moment for Obama to turn lemons into lemonade here -- by sending the message to Washington and to Congress (in particular) that he's willing to allow a close ally like Daschle go, then he isn't going to be easily pressured on the political front, maybe. At least that's the message the administration needs to sell.

*** Future of health-care reform: So who will own the big portfolio that is health care? There is a vacuum now. On the Hill, Senate Finance Committee Chairman Max Baucus wants to be at the forefront of the debate, but there are a lot of angry Senate Dems at Baucus this morning (lots of finger-pointing at him today over the Daschle issue). Ted Kennedy's own health may prevent him from taking the role he wants to play, but he could pick a partner and go forward. And then there's Obama. Will he use the same model he had created with Daschle -- give his health-care person both a cabinet post and a West Wing office? If Obama wants a big-name person to take this issue on, he'll have to offer the same structure. An early front-runner is Kansas Gov. Kathleen Sebelius. The idea of a governor, who isn't afraid of the legislative process but isn't a creature of it, may be exactly what the president is looking for. Other names on the list include ex-Oregon Gov. John Kitzhaber (who may truly campaign for it); Howard Dean (who will NEVER get tapped but has plenty of supporters who will force his name on potential candidate lists); and John Podesta (who doesn't have a gig in the Obama administration, but did help put together the transition). Then again, is Podesta going to take heat for any of these early hiccups?

Video: Sen. Olympia Snow discusses whether Daschle's withdrawal is a loss to health care overhaul under the Obama administration.

*** Obama's salary cap: One reason why Daschle had to go -- he would have potentially contradicted Obama's message today on executive pay and perks. As the president told NBC's Brian Williams yesterday, "It's important for this administration to send a message that there aren't two sets of rules." Per sources, the president and Treasury Secretary Tim Geithner will announce at 11:00 am ET that they will limit the annual salaries of senior executives for companies receiving large amounts of bailout money to $500,000 per year. Moreover, any additional compensation will be in restricted stock that will not vest until taxpayers have been paid back. And all banks will face tougher restrictions, including restrictions on golden parachutes and "say on pay" shareholder policies to give a voice to average investors about salary structures for top executives. Banks also will face tougher transparency rules, including on expenses such as aviation services, office renovations, entertainment and holiday parties, conferences and events, and golden parachutes. The intended purpose of this rollout: to make it politically easier for Congress to support another financial bailout.

Video: How will Obama's new $500,000 salary cap will affect executives?

*** Here's bipartisan support for you: Lost in yesterday's Daschle news, of course, was Obama officially naming New Hampshire Sen. Judd Gregg (R) to serve as Commerce secretary. The Gregg pick is truly astounding when one looks at his ideological place in the GOP. He isn't Jim Jeffords, Lincoln Chafee, or Ray LaHood. Does Gregg's nomination help blunt the talk about a lack of Republican support for Obama's stimulus plan? It might more than Washington folks think… Will the average voter who is following the Obama administration on issues -- but not keeping partisan score -- notice how many Republicans support Obama's stimulus plan as long as it passes? Won't the picture of Republicans in his cabinet send the longer-term bipartisan message? Probably so. Meanwhile, the Washington Post is reporting that "Senate Democratic leaders conceded yesterday that they do not have the votes to pass the stimulus bill as currently written and said that to gain bipartisan support, they will seek to cut provisions that would not provide an immediate boost to the economy." Time for the White House and Senate Dems to get to work...

Video: Rachel Maddow explains her thoughts on why Gregg might not be the best choice to head Commerce.

*** Also on Obama's agenda: In addition to announcing his cap on executive pay, President Obama today will meet with Secretary of State Clinton and George Mitchell in the Oval Office (which is closed to the press); he'll sign the SCHIP legislation into law (open press); and he'll meet with Interior Secretary Ken Salazar in the Oval Office (closed press). Tomorrow, per CBN's Brody, Obama will announce "the creation of a new President's Advisory Council on Faith during this Thursday's National Prayer Breakfast in Washington DC."

*** Wanna bet this makes news today? In an interview with Politico, Dick Cheney -- sounding just like he finished watching the latest "24" episode -- "warned that there is a 'high probability' that terrorists will attempt a catastrophic nuclear or biological attack in coming years, and said he fears the Obama administration's policies will make it more likely the attempt will succeed."

*** Show Me a race: Yesterday, Missouri Secretary of State Robin Carnahan -- the daughter of the state's late governor (Mel) and former U.S. senator (Jean) -- announced that she's running for the Senate seat being vacated next year by Republican Sen. Kit Bond. Carnahan is a BIG recruit for the Democratic Senatorial Campaign Committee. With a possible GOP primary between Rep. Roy Blunt and ex-Sen. Jim Talent, the Missouri Senate contest will have it all next year: big-name candidates, lots of money, and all in presidential battleground state. Political reporters, start booking your 2010 travel to Missouri ASAP…

*** An end of an (Iowa) era: Speaking of political reporters, the dean of Iowa politics -- the Des Moines Register's David Yepsen -- is expected to leave the paper to become the director of the Paul Simon Public Policy Institute at Southern Illinois University. Who will fill Yepsen's shoes in 2012? (Hat tip: our former colleague Carrie Dann, who now works at CongressDaily.)

*** The never-ending recount: And in case you forgot, that Coleman-Franken recount in Minnesota still isn't over. (Sigh.) Yesterday, a three-judge panel ruled that Coleman could bring evidence to trial that as many as 4,800 absentee ballots were improperly rejected. As the Minneapolis Star Tribune writes, the ruling keeps alive Coleman's hopes of erasing Franken's 225-vote lead by potentially putting more ballots into play. But the decision doesn't mean that these ballots were wrongly rejected or, if they were, whether they'd actually benefit Coleman.

Countdown to NJ GOP primary: 118 days
Countdown to VA Dem primary: 125 days
Countdown to Election Day 2009: 272 days
Countdown to Election Day 2010: 636 days

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In his interview yesterday with NBC's Brian Williams, President Obama said he was "angry and disappointed" to lose Daschle and Nancy Killefer, who also withdrew her nomination over a failure to pay some taxes. And the president took part of the blame. "I appointed these folks. I think they are outstanding people. I think Tom Daschle as an example could have led this health-care effort ... better than just about anybody," the president remarked. "But as he acknowledged, this was a mistake. I don't think it was intentional on his part but it was a serious mistake. He owned up to it and ultimately made a decision that we couldn't afford the distraction, and I've got to own up to my mistake which is that, ultimately, it's important for this administration to send a message that there aren't two sets of rules -- you know, one for prominent people and one for ordinary folks who have to pay their taxes."

The Boston Globe calls Daschle's withdrawal yesterday "a stunning reversal that could sidetrack Obama's push for healthcare reform - and that underscored the difficulty of carrying out the new president's pledge to change the ways of Washington."

The Hill says the news was "a stunning turn of events." Tom Harkin who described himself as "emotionally distraught" had tears in his eyes. Max Baucus said he didn't expect it.

The New York Times: "It was the rockiest day yet for the new White House. Two hours before Mr. Daschle withdrew, Mr. Obama's nominee to be the chief White House performance officer, Nancy Killefer, pulled her name from consideration because of unpaid payroll taxes for a household employee." The paper also mentions that Daschle "had offered to step down over the weekend, but officials close to both men said Mr. Obama had urged him to fight for confirmation."

The lead from the AP's Sidoti: "His infant presidency already shaped by mounting national troubles, President Barack Obama now faces an added challenge: weathering the fallout of a spate of nomination glitches."

Is Daschle's absence a setback for health-care reform? "Mr. Daschle's decision to withdraw his candidacy for secretary of health and human services could slow the president's drive to reshape the nation's health care system as the White House searches for a replacement, and it could allow Congress to step into the vacuum during that delay, analysts said," per the New York Times.

Also: "The White House is considering replacing Mr. Daschle with two people. Mr. Daschle had negotiated a special arrangement to serve in the cabinet while also serving as director of a new White House Office of Health Reform… Instead, Mr. Obama's advisers said the president might appoint someone other than the next secretary to lead the White House office, possibly Jeanne M. Lambrew, Mr. Daschle's co-author, who had already started working as the office's deputy director."

Bloomberg News also notes that Daschle's departure "is likely to delay for months the momentum for an overhaul of the U.S. system." More: "None of about a half-dozen potential successors to Daschle as the U.S. Health and Human Services Department secretary carry the political influence and health-care expertise of the former Senate majority leader, analysts said. Among the possible replacements mentioned by lawmakers and activists are Kansas Governor Kathleen Sebelius; U.S. Representative Rosa DeLauro of Connecticut; Mark McClellan, a former head of the Food and Drug Administration; and former Democratic Party chief Howard Dean."

"The Obama administration plans to limit pay to $500,000 a year for executives of government-assisted financial institutions in a new get-tough approach to bankers and Wall Street," the AP writes. "Obama plans to announce the new limits with Treasury Secretary Timothy Geithner at the White House on Wednesday."

The New York Times adds, "The new rules would be far tougher than any restrictions imposed during the Bush administration, and they could force executives to accept deep reductions in their current pay. They come amid rising public fury about huge pay packages for executives at financial companies being propped up by federal tax dollars. Executives at companies that have already received money from the Treasury Department would not have to make any changes. But analysts and administration officials are bracing for a huge wave of new losses, largely because of the deepening recession, and many companies that have already received federal money may well be coming back."

The paper also notes that top executives at firms that have received bailout money make MUCH MORE than $500,000 per year. "Kenneth D. Lewis, the chief executive of Bank of America, took home more than $20 million in 2007. Of that, $5.75 million was in salary and bonuses. Vikram Pandit, who became chief executive of Citigroup in December of 2007 and previously held other senior positions at the bank, made $3.1 million. Richard Wagoner, the chief executive of General Motors, made $14.4 million, much of it in stock, options and other non-cash benefits. He earned a $1.6 million salary."

The Washington Post curtain-raises what would be the financial rescue plan that Treasury Secretary could unveil by next week. "The basic problem confronting the government is that banks hold large quantities of assets that they value on their books for much more than investors are willing to pay. Banks cannot sell these assets without recording massive losses. But holding the assets is tying up vast amounts of money, choking the financial system."

"Since the early days of the financial crisis, officials have struggled to unwind that knot. If the government buys the assets at prices that banks consider fair, the Treasury would take a huge loss when it ultimately sells the assets for much less. If, instead, the government insists on paying market prices, the banks may not survive their losses. Instead of taking a single approach, the Obama administration plans to divide assets and other loans into three categories, each with its own solution, according to sources familiar with the discussions, speaking on condition of anonymity because the details are not finalized." 

As for yesterday's Judd Gregg news… "Gregg sheepishly called his vote more than a decade ago against funding the Commerce Department a remnant of his 'wild and crazy days,' adding that he has since been an 'extremely strong supporter of that agency.'"

Potential vetting issues? Gregg owns quite a bit of bank stock.

Per the New York Times, "Gregg himself said in an interview that while the two had differences, he did not foresee being asked to promote any policy violating his conscience. 'He's willing to bring into his council chamber and to listen to somebody who comes from a different philosophy,' the senator said of the president, 'and he actively sought me out to do that. But he's the captain. Put another way, I'm a field commander.'"

"Aides to both men said that on crucial issues like efforts to rejuvenate the economy, the two mostly saw eye to eye, Mr. Gregg having been one of the chief negotiators for the $700 billion bank bailout passed last fall with Mr. Obama's support."

The Boston Globe call's J. Bonnie Newman, the New Hampshire governor's pick to replace Judd Gregg, a "low-key administrator." Newman is a self-proclaimed "reasonable Republican." "In fact, Newman's views on hot-button political issues are unknown, and she held back yesterday when asked how she might differ politically from Gregg...." 
 
The AP profiles Newman, who "has made a career out of being plucked from one high-profile job and plugged into another."

Also lost in all the Daschle mess yesterday: Senate Dem leaders are conceding they don't have the votes for the stimulus bill as it is currently written!?!?!?! The Washington Post front-pages, "Moderate Republicans are trying to trim the bill by as much as $200 billion, although Democrats working with those GOP senators have not agreed to a specific figure."

"The Senate's first vote on a stimulus amendment, a failed effort yesterday to add more infrastructure spending to the package, signaled the change in course. For weeks, the measure has grown to meet a worsening economic crisis with the largest possible infusion of government cash. Despite warnings of dire consequences if Congress does not act boldly, Republicans have become resolute in their opposition to what they view as runaway and unnecessary spending in the legislation. And as the total in the Senate version climbs to $900 billion, unease also is stirring among moderate Democrats."

The Hill: "Obama has scheduled one-on-one meetings at the White House with a handful of GOP centrists who he believes are most likely to support an economic recovery plan that Republican leaders have panned." 
 
In fact, Obama met with Arlen Specter and, Roll Call reports, reassured him he wants to avoid partisan fights over potential judicial nominations.

So some senators have new motivation to get the stimulus bill passed sooner rather than later -- they want to go to the Munich conference.

Meanwhile, here's a Politico story that Republicans are passing around: "Rep. Jim Cooper (D-TN) -- one of the lead Blue Dogs -- made a startling admission to lefty Liberadio today, suggesting the White House quietly encouraged him to buck House leadership on the stimulus. Cooper was one of 11 Dems to vote no -- joining every GOP House member. 'Well, I probably shouldn't tell you this, but I actually got some quiet encouragement from the Obama folks for what I'm doing,' said Cooper, one of about 55 House Democrats to sign a letter criticizing Speaker Nancy Pelosi for suspending normal debate and committee rules on the $819 billion package."

"He went on -- and on: 'They know its a messy bill and they wanted a clean bill. Now, I got in terrible trouble with our leadership because they don't care what's in the bill, they just want it pass and they want it to be unanimous. They don't mind the partisan fighting cause that's what they are used to. In fact, they're really good at it. And they're a little bit worried about what a post-partisan future might look like. If members actually had to read the bills and figure out whether they are any good or not. We're just told how to vote. We're treated like mushrooms most of the time.'"

MINNESOTA: "In a ruling that keeps alive Republican Norm Coleman's chances of overturning Minnesota's U.S. Senate recount, a three-judge panel on Tuesday allowed him to bring evidence to trial that as many as 4,800 absentee ballots were wrongly rejected and should now be counted," the Minneapolis Star Tribune reports. "The decision expands the evidence that can be considered in the recount trial, giving Coleman the opportunity to put more ballots into play in his effort to erase a 225-vote lead for DFLer Al Franken. The Franken campaign had tried to limit Coleman to bringing evidence on only 650 absentee ballots that he cited specifically when he filed his lawsuit challenging the recount results."

"Hamline University political scientist David Schultz said the ruling was crucial to Coleman. If he had been restricted to consideration of only the 650 ballots mentioned in his lawsuit, Schultz said, 'It would have been all but over today. This at least keeps him in the ballgame.'But Schultz cautioned that the court is simply allowing evidence to be introduced that the ballots were wrongly rejected. It doesn't mean they were improperly rejected, nor that counting any of them would help Coleman, he said."

The NRSC "is giving early indications it intends to lambaste Democrats in a much more aggressive fashion in the 2010 cycle. Observers say the NRSC is taking an early stand against several incumbent Democrats much earlier than it has in 2006 and 2008, following a model set by their Democratic counterparts that aims to create a constant refrain to hammer opponents," The Hill reports.

MISSOURI: "Robin Carnahan, the daughter of a former Missouri governor and U.S. senator, said today she will run for the Senate next year. Carnahan, the two-term Democratic secretary of state, will seek the seat being vacated by four-term Sen. Kit Bond, a Republican," the Kansas City Star writes. More: "Among Republicans said to be interested are Congressman Roy Blunt, former state treasurer Sarah Steelman and former Sen. Jim Talent."

OHIO: Per Roll Call, Rob Portman hired a campaign manager, Bob Paduchik, "best known for his work as campaign manager for President George W. Bush's Ohio victory in 2004." He now works for DCI Group in DC.