Blagojevich just can't stop. The ousted Illinois governor was on Letterman last night. Dave asked what we're all thinking, "Why exactly are you here, honest to God?"

Video: MSNBC's Willie Geist looks back at Blagojevich's latest round of TV interviews.

From NBC's Mark Murray and Domenico Montanaro
In his interview with NBC's Brian Williams, which will air this evening on Nightly News, President Obama discussed the withdrawal of Tom Daschle's nomination, the economic stimulus, and the wars in Iraq and Afghanistan.

Video: In an interview with NBC's Brian Williams, Obama talks about making mistakes and trying to usher in an "era of responsibility." 

Obama said he was "angry and disappointed" to lose Daschle and Nancy Killefer, who also withdrew her nomination today over a failure to pay some taxes. And the president also 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."

Obama later added, "I'm here on television saying I screwed up, and that's part of the era of responsibility. It's not never making mistakes; it's owning up to them and trying to make sure you never repeat them and that's what we intend to do." He also offered one more mea culpa: "[S]o, did I screw up in this situation? Absolutely and I'm willing to take my lumps, you know that's part of the job here. But I think it's important not to paint a broad brush here, because overall, not only have we gotten in place a -- functioning government in record time -- but overall the quality of [the other appointments] are outstanding."

On the economy and his stimulus plan, Obama told Williams, "I'm waking up everyday thinking, 'How do I make sure that ordinary families are able to survive, thrive, send their kids to college, keep their homes, keep their jobs?' And there's no magic bullet. We dug a deep hole for ourselves, and because of some bad decisions that we made, we have the worst economy since the Great Depression."

And Obama also spoke about his consultations with the joint chiefs on Iraq and Afghanistan: "The encouraging thing is that there's actually I think a convergence between myself and the joint chiefs and my national security team about what we have to do. I think there's a general view that we've got to drawdown our troops from Iraq; that we've got to do it responsibly; that we've got to do it carefully. I think the timeframe is closer than it may have appeared during the campaign. I think there's also a shared view that Afghanistan is getting worse, not getting better. And that we have to have a comprehensive strategy that not only deals with the military side but also the diplomacy."

From NBC's Doug Adams
New Hampshire governor John Lynch is holding a news conference at 4:30 p.m. today to announce a successor to Sen. Judd Gregg -- if Gregg is confirmed as Commerce Secretary.

The pick is expected to be a Republican -- part of a deal worked out by Gregg, a Republican, and Lynch, a Democrat. The appointee would reportedly agree to be a "caretaker" for two years, and not run in the 2010 election.

The expected choice is Bonnie Newman, a 63-year-old Republican with a long biography of high profile political and educational appointments. She has served in two Republican administrations (Reagan and George H.W. Bush) and has close ties to Sen. Gregg, having been his chief of staff in the House in the 1980s. She was once president of the University of New Hampshire and executive dean of Harvard's Kennedy School of Government.

Though the deal to appoint a caretaker Republican has raised anger from both sides in New Hampshire, Lynch does have a history of reaching across party lines -- having appointed Republicans to several top positions in his administration. Newman and Lynch also have a close working relationship -- she was one of the first Republicans to endorse him in 2004 when he first ran for governor.

That being said, it is pretty rare for a governor to reach across the aisle on a Senate pick. The last time a governor freely chose a member of the other party to replace an outgoing senator was in 1960, when Republican Gov. Mark Hatfield of Oregon chose a Democrat to replace a Democratic senator who died.

As for the Republicans in 2010 -- if Gregg's appointment is indeed a caretaker -- the list begins with former Sen. John Sununu Jr. At 45, he was the youngest member of the U.S. Senate, and he lost a bitter election to Jeanne Shaheen last fall. 

Other names that mentioned by New Hampshire politicos are former Rep. Charlie Bass, who lost his re-election race in 2006 and has already expressed interest in the seat; and former Manchester mayor Frank Guinta.

For the Democrats, Rep. Paul Hodes is wasting no time in declaring his intent to run for the seat in 2010.

The New Hampshire Union Leader is reporting that Hodes will announce his candidacy this week. Another House member, Carol Shea Porter, is not ruling out a run, which would set up a messy primary for the Democrats. 

The other question is whether Lynch himself might run in 2010, which is when his gubernatorial term ends. He is easily the most popular Democrat in the state.

From NBC's Chris Donovan
A few interesting tidbits IF Gregg resigns his seat and Bonnie Newman takes his place...
 
1. The Senate will then have 18 female members -- a new record. Interestingly enough, in 2000 the then-nine female senators who served published a book titled, "Nine and Counting: The Women of the Senate" -- so that number has now been doubled.
 
2. New Hampshire will become the FOURTH state to currently have two female senators: (Washington, California and Maine do now)
 
3. Sen. Jeanne Shaheen (D-NH) will, after only 30 days in office, become the SENIOR Senator from New Hampshire. As Senate Historical Office's Betty Koed points out, with that new title comes the privilege of getting the coveted Daniel Webster Senate desk. By law, the senior senator from NH gets to use the desk!

From NBC's Andrea Mitchell

Tom Daschle told NBC News that he called President Obama this morning after reading the New York Times editorial calling for the withdrawal of Daschle's nomination.

Clearly emotional in a brief telephone conversation, Daschle said: "I read the New York Times. I can't pass health care if it's too much of a distraction ... so I called the president this morning."

From NBC's Mark Murray
Yesterday we mentioned that President Obama had tapped into his email list to mobilize his supporters to back his economic stimulus plan.

Well, now John McCain has done the same -- but in opposition to the plan.

"I cannot and do not support the package on the table from the Democrats and the Obama administration," McCain says in the email to his Country First PAC list. "Our country does not need just another spending bill, particularly not one that will load future generations with the burden of massive debt. We need a short term stimulus bill that will directly help people, create jobs, and provide a jolt to our economy."

He adds, "I appreciate the discussions President Obama is having with my Republican colleagues, but the time for talking has come to an end and we must now begin some serious negotiation. But as of yet, Republicans have not been given the opportunity to be involved. The House of Representatives passed a stimulus bill without a single Republican supporting it. In the Senate, the Democrat leadership is trying to jam the existing proposal through regardless of reservations from a number of members. With so much at stake, the last thing we need is partisanship driving our attempts to turn the economy around."

From NBC's Libby Leist

Secretary Clinton held her first diplomatic meeting today as Secretary of State, and it was a love fest -- with a little substance, too.

British Foreign Secretary David Miliband was the first foreign minister to meet with Clinton since her confirmation two weeks ago. The two spoke to reporters afterward.

Clinton and Miliband both remarked about the change a new administration brings in American politics, but also the continuity. Clinton said that no matter what party is in power in the U.S., the relationship with Britain always "stands the test of time."

Miliband said he was "delighted" to be meeting with Clinton three months after Obama was elected, two weeks after his inauguration and one day after Clinton was sworn-in. He called their discussions "determined, substantive and friendly."

Miliband also gushed over Clinton's long career in public service. He said she has been a great ambassador for America and to America.

As for the substance: Clinton spoke forcefully about the need for Iran to show the world that it is willing to be serious about negotiations.

"It is clear that ... Iran has an opportunity to step up and become a productive member of the international community," she said.

Clinton reiterated that the U.S. is reviewing its Iran policy, and "we will see how we proceed."

She noted that Undersecretary of State William Burns, the third-ranking official at the State Department, will attend a meeting in Berlin tomorrow with representatives of Germany, France, the UK, China and Russia to discuss an international approach toward Iran.

From NBC's Athena Jones

Breaking News: Tom Daschle has withdrawn his name to be President Obama's HHS secretary. More information to come.

*** UPDATE *** Obama issued this statement: "This morning, Tom Daschle asked me to withdraw his nomination for Secretary of Health and Human Services. I accept his decision with sadness and regret."

"Tom Daschle has devoted his life to public service and health care reform, so that every American has access to health care they can afford. I had hoped that he could bring this passion and expertise to bear to finally achieve that goal, which is so essential to the progress of our economy and the well-being of businesses and families across our nation.

"Tom made a mistake, which he has openly acknowledged. He has not excused it, nor do I. But that mistake, and this decision, cannot diminish the many contributions Tom has made to this country, from his years in the military to his decades of public service. Now we much move forward, with our plan to lift this economy and put people back to work."

*** UPDATE 2 *** The statement from Daschle: "I have just informed the president that I am withdrawing my name from consideration for Secretary of Health and Human Services. To be chosen by President Obama to run the Department of Health and Human Services and to lead the reform of America's health care system is one of the signal honors of an improbable career."

"But if 30 years of exposure to the challenges inherent in our system has taught me anything, it has taught me that this work will require a leader who can operate with the full faith of Congress and the American people, and without distraction. Right now, I am not that leader, and will not be a distraction. The focus of Congress should be on the urgent business moving the President's economic agenda forward, including affordable health care for every American."

"We need the best care in America to be availabe to all Americans. We need this effort to succeed. Lives and livelihoods are at stake. I will not be the architect of America's health system reform, but I remain one of its most fervent supporters. Thank you." 

*** UPDATE 3 *** The White House confirms that Daschle will not stay on in the White House role as health care czar created for him.

From NBC's Athena Jones

WASHINGTON -- President Obama tapped Sen. Judd Gregg to head the Commerce Department, making the New Hampshire lawmaker the third Republican to be nominated for a Cabinet position.

Obama ran on the notion of taking a pragmatic approach to problem solving that is not based on party.

"We know the only way to solve the great challenges of our time is to put aside stale ideology and petty partisanship, and embrace what works," he said of Gregg, who would join his fellow GOPers Transportation Secretary Ray LaHood and Defense Secretary Robert Gates.

The president again called for quick passage of the recovery package that is working its way through Congress and reiterated that the "vast majority" of the investments in the plan would be made within the first year and a half.

Joking that he and Gregg disagreed on who should have won the presidential election, Obama went on to hail him for his "proud record of service," saying his experience as a businessman, attorney, state executive councilor, congressman, governor and senator meant he had seen how the economy affects communities, businesses and families and that as the Commerce Subcommittee chair on the Senate Appropriations Committee, Gregg was already familiar with the department.

Obama also applauded Gregg's ability to reach across the aisle and his reputation of strict fiscal discipline.

"He'll be an outstanding addition to the depth and experience of my economic team, a trusted voice in my Cabinet, and an able and persuasive ambassador for industry who makes it known to the world that America is open for business," he said.

Gregg also focused on bipartisanship during his brief remarks.

"This is not a time when we should stand in our ideological corners and shout at each other," Gregg said. "This is a time to govern and govern well."

The news came on a day when the Obama administration was battling perception issues with one Cabinet designee, former Sen. Tom Daschle, under fire for failing to pay taxes on a car and driver and another designee, Nancy Killefer, withdrawing her name as chief compliance officer in the new administration for tax reasons.

Obama ignored a shouted question about tax issues at the end of the event announcing Gregg.

From NBC's Libby Leist

After returning from his first Middle East trip last night, U.S. envoy George Mitchell briefed Secretary Clinton this morning about his discussions in the region. Mitchell and Clinton expect to brief President Obama in the next 24 hours.

In remarks to reporters after the meeting, Clinton said the U.S. will "work with all parties" to try to end the Israeli-Palestinian conflict and she promised a concerted U.S. effort toward that goal.

Clinton announced that former Sen. Mitchell would return to the region before the end of the month.

"This is the first of what will be on-going, high-level engagement," Clinton said.

Today, Clinton heard from Mitchell about the regional efforts to bring about a lasting ceasefire between Israel and Hamas and the international plans to deliver aid to the Palestinians in Gaza.

She also made an appeal to those in the region concerned about the fate of children on both the Israeli and Palestinian side. She stressed that the U.S. is engaged and committed to their cause.

"We'll work in good faith to solve the problems that are obviously afflicting that region," Clinton said.

Secretary Clinton was asked by NBC's Andrea Mitchell whether there needs to be a diplomatic path with Hamas to solve the Gaza crisis, but Clinton did not break from past U.S. policy.

"Our conditions with respect to Hamas have not and will not change," she said. She reiterated they must renounce violence, recognize Israel and abide by past peace agreements.

Clinton also condemned the Hamas rocket attacks into Israel in the past few days and expressed support for Israel's self-defense.

"It is very difficult to ask any nation to do anything other than defend itself," Clinton said.

For his part, Mitchell called the situation in the Middle East "complex and difficult," but said with "patient, determined, persevering diplomacy" the U.S. can help make a difference.

He thanked President Obama and Secretary Clinton for their efforts to help launch his first trip -- specifically, Obama's interview with Al Arabiya and Secretary Clinton's phone calls with regional leaders.

From NBC's Abby Livingston

Tom Daschle is proving Mel Brooks' theory, "We mock what we are to be."

As first reported by First Read on Sunday, we learned of the existence of a 1986 Daschle for Senate campaign ad called "Old Car," which we dug up for NBC Nightly News last night. (Watch a clip in NBC's Chuck Todd's piece on Nightly News last night.)

The ad features a young Daschle driving around Washington in a beat up car, thumbing his nose at the Washington establishment, most notably those who drive expensive cars, or worse, are chauffeured.

Click here to watch the ad.

From NBC's Mark Murray
This endorsement will endear Palin to conservatives. But could it undermine a potential 2011/2012 message about women breaking barriers in politics? And what does it say about her trying to shore up her weaknesses with independents and the political middle?

The Dallas Morning News: "Alaska Gov. Sarah Palin has endorsed Rick Perry for re-election, calling him the 'true conservative' in a primary election showdown with fellow Republican Kay Bailey Hutchison."

"Palin, who electrified the GOP base as the party's vice presidential nominee last year, has strong support among the party's social conservatives. Her endorsement appeared aimed at undercutting Hutchison's appeal with GOP women. Both groups will be important in picking the party's nominee in next year's GOP primary."

From NBC's Lisa Myers, Chuck Todd, Savannah Guthrie, and Ken Strickland
NBC News has learned that the president's choice for "chief performance officer" -- technically a deputy OMB director post -- could end up having to withdraw over a number of issues, including tax problems. The withdrawal of Nancy Killefer could happen as soon as today. So far the White House has no comment on the situation.

Video: Nancy Killefer withdraws her candidacy to be the first chief performing officer for the federal government. NBC's Savannah Guthrie reports. 

When President Obama announced Killefer, he made a big deal out of the creation of this post.

It's not clear if Killefer's issues are significant in a vacuum or whether she's a victim of the "Rule of Three" -- i.e., being lumped in with Geithner and Daschle. Then again, Killefer was involved with the IRS in a significant way, so there may be a zero tolerance on the tax front for her, specifically.

*** UPDATE *** The AP reports, and NBC confirms, that Killefer has withdrawn her nomination.

*** UPDATE 2 *** There was a tax lien owed to D.C. for $949.69 by Killefer filed on March 7, 2005. This amount certainly pales in comparison to what was owed by Geithner (more than $30,000) and Daschle (about $140,000).

Here's the letter from Killefer to Obama, per the White House:

Letter from Nancy Killefer to President Obama

February 3, 2009

Dear Mr. President,

I recognize that your agenda and the duties facing your Chief Performance Officer are urgent. I have also come to realize in the current environment that my personal tax issue of D.C. Unemployment tax could be used to create exactly the kind of distraction and delay those duties must avoid. Because of this I must reluctantly ask you to withdraw my name from consideration.

I am deeply honored to have been selected by you and you have my deep appreciation for your confidence in me. You have my heartfelt support and best wishes for success in all your endeavors.

Respectfully yours,
Nancy Killefer

From Chuck Todd, Mark Murray, and Domenico Montanaro
*** A tipping point for Daschle? A day after we suggested that Tom Daschle would win confirmation because of (1) his help during the Democratic primary and (2) the fact that U.S. senators rarely eat their own, Daschle's nomination to lead HHS has now reached a tipping point of sorts. First, the New York Times today delivers a one-two punch at Daschle -- with a front-page story how the former senator's tax issues appear to contradict President Obama's call for an "era of responsibility," as well as an editorial calling for the withdrawal of his nomination. The Boston Globe's Peter Canellos also piles on, questioning how Obama can scold Wall Street for its excesses but then tolerate Daschle's tax lapses. And now there's the revelation that Daschle failed to pay even more taxes, plus an old Daschle TV ad showing him driving around DC in a simple Pontiac car. Despite the criticism and contradictions, Daschle can probably still get confirmed by a party-line vote. But is this what Obama wants, especially with so much else on his plate?

Video: Obama continues to support Daschle as his pick for HHS secretary. NBC's Savannah Guthrie reports.

*** If at first you don't succeed…: Filling the Commerce slot hasn't been easy for Obama, either. First, he tapped Bill Richardson for the post, but the New Mexico governor withdrew his nomination after he became entangled in an alleged pay-to-play scheme in his home state. Then other names, including former Time-Warner CEO Richard Parsons and Symantec CEO John Thompson, surfaced and fizzled. But Obama seems to finally have his man now -- unless, of course, any tax problems come up. At 11:00 am ET at the White House, Obama will announce New Hampshire GOP Sen. Judd Gregg as his Commerce Secretary. But the biggest story surrounding the nomination is the increasing likelihood that New Hampshire's Democratic governor will appoint a Republican to replace Gregg in the Senate. Just how much involvement did the Obama team have with the governor to compromise on the idea of appointing a GOPer to fill this Senate seat? White House Press Secretary Robert Gibbs said they had no involvement yesterday. But everything, including yesterday's statement from the governor, suggests they did play a role. By the way, here's something that might have people scratching their heads: Per CQ, Gregg voted in 1995 to abolish the Commerce Department before he agreed to lead it.  

*** Stimulus odds and ends: So what happened at last night's meeting between congressional Dem leaders and the president? It's interesting that the leaders somehow missed their chance to speak to reporters after the meeting -- something those folks RARELY do. Just what happened behind closed doors? We have our theories. Here's the Washington Post's take: "[T]wo Democratic sources with knowledge of the meeting said the president took a blunt tone with the lawmakers, urging them to drop whatever needs to be cut from the bill to gain bipartisan support and to pass Congress soon. One thing worth noting: The Obama White House appears adamant not to legislate publicly; they may be doing deals behind the scenes, but they hesitate to go public with deal specifics. Meanwhile, according to NBC's Savannah Guthrie, 19 Democratic and Republican governors -- led by Arnold Schwarzenegger, Charlie Crist, Jodi Rell, Deval Patrick, and Bill Ritter -- have signed a letter to Obama that expresses their support for the stimulus. "As stewards of the economies of our respective states and regions, we urge the Congress to reach prompt resolution of all outstanding differences and you to sign the bill when it reaches your desk." 

Video: The Obama administration found itself on the defensive Monday, fighting Congressional resistance to the economic stimulus package. NBC's Chuck Todd reports.
 
*** The price of voting no? Sticking with the stimulus debate, the Los Angeles Times runs a story that the Obama administration probably would love more news outlets to do: checking in on some GOP congressional district where voters might be upset by their representative's vote against the stimulus. "Few believe [Rep. Connie] Mack's position puts his political fortunes in jeopardy. The stimulus bill is likely to pass, allowing the congressman to maintain his stance as a fiscal hawk with no risk to his constituents… However, if Mack chooses to run for Senate next year to replace the retiring Sen. Mel Martinez (R-Fla.), Democrats will be waiting to remind him of his vote. 'Americans will hold Republicans accountable for being the party of no economic help and status quo policies,' says Jennifer Crider, a spokeswoman for the Democratic Congressional Campaign Committee."  
 
Countdown to NJ GOP primary: 119 days
Countdown to VA Dem primary: 126 days
Countdown to Election Day 2009: 273 days
Countdown to Election Day 2010: 637 days

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The New York Times gives Tom Daschle a one-two punch -- with 1) a front-page story on how nominees like Daschle aren't necessarily following through on Obama's call for an "era of responsibility" and 2) an editorial calling for the withdrawal of his nomination.

The front-page article: "President Obama said Monday that he was 'absolutely' standing behind former Senator Tom Daschle, his nominee for health and human services secretary, and Mr. Daschle, who met late in the day with leading senators in an effort to keep his confirmation on track, said he had 'no excuse' and wanted to 'deeply apologize' for his failure to pay $128,000 in federal taxes. But the episode has already shown how, when faced with the perennial clash between campaign rhetoric and Washington reality, Mr. Obama has proved willing to compromise." 

The editorial: "When President Obama nominated former Senator Tom Daschle to be his secretary of health and human services, it seemed to be a good choice… Unfortunately, new facts have come to light -- involving his failure to pay substantial taxes that were owed and his sizable income from health-related companies while he worked in the private sector -- that call into question his suitability for the job. We believe that Mr. Daschle ought to step aside and let the president choose a less-blemished successor."

It concludes, "Mr. Daschle is another in a long line of politicians who move cozily between government and industry. We don't know that his industry ties would influence his judgments on health issues, but they could potentially throw a cloud over health care reform. Mr. Daschle could clear the atmosphere by withdrawing his name."

The Boston Globe's Peter Canellos also piles on. For Wall Street excess, Obama was a "breath of fresh air" and "didn't mince words," Canellos writes. "But the following day, when news reports came out that Obama's health and human services secretary-designate, Tom Daschle, had initially failed to pay about $140,000 in taxes, mostly on a car and driver provided by a private equity firm, there was no scolding from the commander in chief."

More: "Already, the tax avoidance of his nominees is giving fuel to the late-night comedians who have struggled to develop a take on the new administration. And Obama, whose high-mindedness at times verges on aloofness, will inevitably be attacked for putting his own team's sense of superiority - the belief that Geithner and Daschle are so talented that they're irreplaceable - ahead of the normal sense of accountability that would apply to people who fail to pay their taxes on time. Tolerating such lapses could also diminish Obama's moral leadership, the strong voice that rang out in condemning last week's news of the Wall Street bonuses. The president's ability to call a halt to irresponsible behavior by powerful people is needed to fulfill his pledge to reform the political system."

In a separate report, the New York Times claims there are more taxes Daschle owes. "Daschle's failure to pay Medicare taxes on the income was discovered by the Finance Committee. The amount of the unpaid Medicare tax has not been disclosed. But in his amended returns, filed on Jan. 2, Mr. Daschle estimated that the value of the car service was equivalent to income totaling $255,256 in the years from 2005 to 2007."

Here's the rub, per the Washington Post: "Republicans remained noncommittal yesterday, weighing the costs and benefits of perhaps killing the nomination of a former colleague and close personal friend of the president. Democrats rose to Daschle's defense, including, most notably, the man who would be without much of his top staff were it not for Daschle." 

While the New York Times editorial board has called for Daschle to withdraw his nomination, the Washington Post's says Obama should keep him if he wants him. "Mr. Daschle deserves to be judged also on the basis of his long career in public service and his knowledge of and interest in health-care reform. Ordinary Americans who pay their taxes may well wonder why Mr. Obama can't find Cabinet secretaries who do the same. But if Mr. Obama still wants Mr. Daschle in the job, and he said yesterday that he does, based on the record known so far he's entitled to have him." 

The Boston Globe's lead story: "Cabinet deal is set for Gregg." "President Obama plans to nominate Senator Judd Gregg of New Hampshire for secretary of commerce today… [NH Gov. John] Lynch said that Gregg would only take the job on condition that a Republican be appointed to serve out his term, an assertion Gregg quickly confirmed. … New Hampshire Democrats widely expect Lynch to choose J. Bonnie Newman, a Republican with extensive Washington experience and ties to both Gregg and Lynch." She's not expected to run again in 2010.

The New York Times has a tick-tock of how the Gregg idea came to fruition. "The idea of offering the job to Mr. Gregg came, at least in part, from the Senate majority leader, Harry Reid of Nevada. (The two senators are close, aides to both men said.) Mr. Reid mentioned the idea to Rahm Emanuel, Mr. Obama's chief of staff, who passed it on to the president-elect."

How does Gregg explain this? CQ writes, "President Obama's new candidate to run the Commerce Department voted in favor of abolishing the agency as a member of the Budget Committee and on the Senate floor in 1995. Sen. Judd Gregg, R-N.H., whose nomination was expected to be announced Tuesday, also worked in the Senate to trim the department's budget as head of the Commerce-Justice-Science Appropriations Subcommittee."

"Gregg's 1995 votes were cast for the fiscal 1996 budget resolution, a nonbinding blueprint that outlined the GOP's fiscal priorities after Republicans won full control of Congress for the first time in 40 years."

"The Senate confirmed Eric H. Holder Jr. as the nation's first African American attorney general by a vote of 75 to 21 yesterday, opening a new chapter for a Justice Department that had suffered under allegations of improper political influence and policy disputes over wiretapping and harsh interrogation practices," the Washington Post says.

Meanwhile, John McCain "will no longer hold up the nomination of [Bill] Lynn, who came under scrutiny after he was granted a special waiver last month to sidestep the Obama administration's new ethics rules prohibiting former lobbyists from overseeing industries they represented within the previous two years. Last week, McCain had demanded more information on Lynn's role, ending last July, lobbying on behalf of the Waltham-based defense giant, which receives billions of dollars in contracts each year from the Pentagon. 'He received an adequate response from Mr. Lynn and intends to move forward with the nomination process,' McCain's office said in an e-mail." But Chuck Grassley remains unconvinced.

And the Chicago Sun-Times reports that Obama will tap Tammy Duckworth "to be an assistant secretary in the U.S. Department of Veterans Affairs…Duckworth, a wounded Iraq war vet, will be assistant secretary of public and intergovernmental affairs. Duckworth is close to Obama, White House Chief of Staff Rahm Emanuel and David Axelrod, senior White House adviser. The announcement is expected today."

Per the Los Angeles Times, "Obama met with top Democratic congressional leaders Monday to discuss the stimulus bill and other upcoming legislation. A Democratic source familiar with the meeting said there was a consensus that when all possible additions or changes to the bill have been decided, the total cost should not exceed $900 billion. That means some spending items would have to be jettisoned. Congressional Democrats indicated that they would be willing to drop some business tax breaks but that the administration wanted to keep them in hopes of attracting Republican support." 

The Washington Post adds, "The meeting was 'productive,' press secretary Robert Gibbs said in a statement afterward, adding that the president and the Democratic leaders agreed on the urgency of working to 'achieve the bipartisan consensus that the president has sought throughout this process.' But two Democratic sources with knowledge of the meeting said the president took a blunt tone with the lawmakers, urging them to drop whatever needs to be cut from the bill to gain bipartisan support and to pass Congress soon."

More: "One source said Obama appeared to be frustrated by the public perception that the recovery bill was becoming laden with partisan pet projects."

The Hill: "Despite confident talk from Obama and Senate Democratic leaders predicting eventual GOP support for their plan, members of the Senate's ideological center so far have resisted backing the legislation.  Among those undecided are Sens. Ben Nelson (D-Neb.), Jim Webb (D-Va.), Susan Collins (R-Maine) and Olympia Snowe (R-Maine). 'I'd have trouble with it and so would a number of other people,' Nelson said Monday in an interview. Democratic leaders are poised to let senators rework it with a series of amendments to be voted on this week."

Chris Dodd is refinancing those two Countrywide "VIP" loans.

And Michigan Rep. John Dingell will become the longest-serving member of Congress "Wednesday, Feb. 11, when he eclipses Rep. Jamie Whitten's (D-Miss.) 19,419 days in office."

Lots of speculation that Florida Gov. Charlie Crist is at the least weighing the idea of running for Senate in 2010. McClatchy writes, "Crist didn't quell the hype Monday, insisting that he's ''focused on Florida'' but refusing to rule out running for Sen. Mel Martinez's seat in 2010. He's likely to keep everybody guessing until the annual legislative session ends May 1."

The Washington Post's Cillizza reports that Crist is "long shot" to run for Senate, however. That matches what we've heard as well. Says one GOP source with knowledge of Florida politics: "Crist is looking at it. Count me as doubtful but he's getting the hard press."

From NBC's Pete Williams
Eric Holder has been confirmed as the nation's first African-American attorney general.

The vote was 75-21.

He'll be sworn in at a public ceremony tomorrow at the Justice Department.

From NBC's Andrea Mitchell and Libby Leist
Despite some delays -- and considerable debate in the media over his area of responsibility --  longtime Middle East negotiator Dennis Ross will be coming back to the State Department as a "strategic advisor" on the near east and gulf region. 

Translation: Iran, Saudi Arabia, Iraq and the other Gulf states.

He will not be described as an envoy negotiating agreements and will not be involved in Middle East talks. That job will be up to former Sen. George Mitchell, who returns tonight from his first "listening tour" of the region. Pointedly, Mitchell began his tour in Cairo to assess Arab sentiment -- and no U.S. diplomacy is expected to get very far before Israeli elections next week produce a new Prime Minister on Feb. 10th.

Hill to be ambassador to Iraq
NBC News confirms a Reuters report that veteran diplomat Christopher Hill will be the new ambassador to Iraq.
 
Most recently, Hill was assistant secretary of state for East Asia and Pacific Affairs -- point man for the complicated six-party negotiations with North Korea.  

In past administrations, he was a key member of Amb. Richard Holbrooke's negotiating team on the Dayton accords that resolved the Bosnia crisis.

He's replacing another veteran foreign service officer, Ryan Crocker, who is retiring.

From NBC's Andrea Mitchell and Libby Leist
Vice President Biden administered the oath of office to Hillary Clinton at a State Department ceremony -- and momentarily botched the oath by tripping over his words, but made a quick recovery (even though the crowd had chanted, "Get it right" before he even started).

The formal ceremony duplicated a private swearing-in in her Senate office after she was confirmed Jan. 22.

This time, her husband Bill, daughter Chelsea, and mother Dorothy Rodham jointly held the bible, as four previous secretaries of state (Baker, Kissinger, Eagleburger, Albright) and many Clinton supporters looked on.

As Clinton expressed her gratitude to her family members individually, she paused -- clearly searching for the right words to thank her husband. Grinning, she ended up thanking him for a life full of "all kinds of experiences." The crowd laughed, somewhat awkwardly.

Clinton also expressed surprise and wonder that she and Biden were in that circumstance -- Biden being VP, swearing her in as Secretary of State. "Life has a funny way of unfolding," she said.

Especially when it comes to politics.

From NBC's Mark Murray and Domenico Montanaro
The liberal consortium -- made up of groups like Americans United for Change, key labor unions, and MoveOn -- that's running TV and radio ads urging GOP senators to support the economic stimulus has expanded its campaign. It's now airing TV ads targeting Dick Lugar in Indiana and Kit Bond in Missouri, and running those Rush Limbaugh radio ads targeting Jim Bunning in Kentucky, Richard Burr in North Carolina, and Mel Martinez in Florida.

Here's the TV ad running in Missouri.

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Meanwhile, MoveOn has sent an email to its five million members, asking them to pledge money for future TV ads against senators -- either Democratic or Republican -- who vote against the stimulus package. "We need to get started now, so politicians and the media know their constituents are paying attention," the email says.

From NBC's Ken Strickland
As the Senate starts debate today on the economic stimulus bill, Republicans are urging Democratic leaders to listen to their president when they meet with him this afternoon.  Republican Leader Mitch McConnell came out today quoting recent remarks from President Obama, which touted his desire for a bill free of earmarks and inclusive of Republican ideas.

"I hope [Obama] can get through to them that the way to build this package is, indeed, to do it on a bipartisan basis," McConnell said. "He needs to let them know that the measures that they are moving forward don't meet his own standard."

McConnell also noted there is Democratic resistance to the bill as it's currently written.  "There is considerable -- and you're hearing it -- considerable Democratic senatorial unrest about this package. Considerable. I think there's a bipartisan feeling that this is not the way to get the economy moving."

A Senate Republican "working group" is moving forward with its own stimulus package -- a substitute for the current proposal. The cost is significantly lower at $713 billion. It's heavier on tax cuts and infrastructure spending, while dramatically reducing spending on items Republicans find questionable in their stimulative effect.

Video:  Time's Joe Klein says Obama's stimulus plan will eventually please Republicans and others who are not happy with it.

While not a truly "Senate Republican conference" proposal, the working group has about a dozen members including Martinez, McCain, Thune, Graham, and Collins, according to an aide to one of the members. The aide said at least one member was actively courting Democratic co-sponsors.

From NBC's Athena Jones

Invited by Illinois Sen. Dick Durbin, President Obama will travel to Springfield, IL for the commemoration of Lincoln's 200th birthday (on Feb. 12), according to White House press secretary Robert Gibbs.

Obama will attend and speak at the banquet there, Gibbs said at the top of today's press briefing.

From NBC's Chuck Todd and Mark Murray
This morning, tapping into his 13 million-strong email list for the first time since becoming president, Obama urged supporters to "spread the word and build support" for his economic stimulus plan.

In particular, he asks them to host or attend an Economic Recovery House Meeting this weekend.

"I hope to sign the recovery plan into law in the next few weeks," Obama says in the email. "But I need your help to spread the word and build support. It's not enough for this bill to simply pass Congress. Americans need to know how it will affect their lives -- they need to know that help is on the way and that this administration is investing in economic growth and stability."