"Senate Republicans blocked a $410 billion omnibus spending measure on Thursday night, forcing Congressional Democrats to prepare a stopgap budget resolution to keep the federal government from shutting down," the New York Times writes. "The ability of the diminished minority to delay the bill signaled growing unease in Congress, among Democrats and Republicans, over the levels of government spending in recent months and the staggering increase in the federal deficit." The paper also calls it "an embarrassment for Democrats and a striking, if temporary, victory for critics of so-called earmark spending initiative." 

But NBC's Ken Strickland reports that Democrats needed 60 votes, but they only had 59 and therefore did not bother to even take the formal vote. Because the bill would not pass last night or today, the government will run out of money for most of it's operations on Friday. As a result, the House will have to pass what's called a "continuing resolution or C.R.": this new bill will continue to fund government operations until this dispute in the Senate gets resolved. (The Senate will also have to pass it.)

Some points to keep in mind:
1. This does NOT mean there will be a government shutdown. That's highly unlikely. This is a reoccurring problem in the Capitol, and they always seem to pull themselves from the brink. (The Clinton years notwithstanding.)

2. In the grand scheme of things, this is not a huge deal from "funding the government standpoint," because it will get worked out in the end. But it could prove to be another moral victory for Republicans. Because the GOP held together, they blocked -- at least for the moment -- Democrats from passing what some considered a "pork-laden" bill. McCain and company will be able to continue attacking Obama's willingness to sign this bill, even though Obama campaigned against earmarks in legislation. 

3. There is also a chance next week that McCain may be successful in his next attempt to get some of those earmarks removed.

Politico wonders if Ted Kennedy's knighthood is constitutional: "The naysayers point to Article I Section 9 of the Constitution, which says 'No title of nobility shall be granted by the United States: and no person holding any office of profit or trust under them, shall, without the consent of the Congress, accept of any present, emolument, office, or title, of any kind whatever, from any king, prince, or foreign state.' Strict translation: You can't be a U.S. senator and a knight."

"Two candidates for top jobs at the Treasury have withdrawn their names from consideration, complicating efforts by Treasury Secretary Tim Geithner to staff his department at a time of economic crisis, according to people familiar with the matter," the Wall Street Journal reports. "Annette Nazareth, who was expected to be tapped as deputy Treasury secretary, and Caroline Atkinson, who was being considered to oversee international affairs, have both taken their names out of the running, these people said. Ms. Atkinson's name was withdrawn weeks ago and Ms. Nazareth withdrew several days ago.

"Across the administration, several potential candidates have been blocked by the Obama administration's tough rules about who it will hire. In addition, the White House increased the rigor of its vetting process after tax problems threatened Mr. Geithner's confirmation and scuttled that of former Sen. Tom Daschle. The withdrawals aren't confined to the Treasury. Susan Tierney recently withdrew her name from consideration for the job of deputy secretary of energy for what a person close to her said were family reasons. Jane Garvey recently withdrew from consideration for the deputy secretary post at the Department of Transportation, according to people familiar with the matter.  

Spitzer's Back: "Eliot Spitzer is returning to Washington, D.C., but this time as an investor in the commercial real-estate market," the Wall Street Journal reports. "The former New York governor, who resigned in disgrace a year ago after getting caught patronizing a prostitute in a Washington hotel, has purchased a prominent office building blocks from the White House through his father's real-estate company." 

NBC's Abigail Williams reported that First Lady Michelle Obama spent her afternoon at Miriam's Kitchen yesterday, volunteering her time scooping mushroom risotto for the Washington, D.C., homeless. Dressed in bright spring colors and wearing a smile, the First Lady stood alongside Miriam's volunteers offering a hot meal and on more than one occasion a knowing wink of the eye. Standing in front of a diverse group of volunteers and D.C.-area homeless Mrs. Obama spoke about the difficult economic climate and the growing need for volunteerism throughout the United States. "Back in the kitchen I served food with six or seven volunteers who were here pouring their blood, sweat and tears into preparing the food and serving it," she said. "There are people all across the country even in these times who can lend a hand and volunteer at a soup kitchen, even if they don't have the resources to donate." (More later today.)

The Chicago Sun Times' Sweet reports, "A few weeks ago -- on Feb. 17 -- Oprah Winfrey talked to First Lady Michelle Obama at the White House. According to Oprah.com and confirmed Thursday by an Oprah spokesman, Oprah will talk about her interview with the First Lady on her Friday show and show pictures from the visit."

"The RNC announced Thursday that it would transfer $1 million apiece to the cash-hungry National Republican Congressional Committee and the National Republican Senatorial Committee -- contributions that could buy Steele good will among party operatives and GOP members of Congress," Politico reports. "Still, an array of top GOP officials and strategists are expressing concern over Steele's month-long tenure, including some of those he defeated for the post.

" 'I have a very different management philosophy and style,' said Katon Dawson, the South Carolina GOP chair who finished second to Steele. 'It wouldn't have taken me four weeks to give them the money,' he said, alluding to the transfers to the congressional campaign committees."

NBC's Lauren Appelbaum reports that in the wake of James Dobson retiring from Focus on the Family, leaving a possible vacuum of power in evangelical leadership, Dr. Gary Dull and other Christian leaders are forming The Faith and Freedom Institute to combat "satanic wickedness" in order to return America to a foundation of biblical principles. (More on that later today.)

MINNESOTA: "Democrat Al Franken called Thursday for dismissal of Republican Norm Coleman's lawsuit challenging the Minnesota Senate recount, saying the fight had gone on long enough and Coleman hadn't proved his case," the Minneapolis Star-Tribune reports. "The motion for dismissal filed by his lawyers could be argued before a three-judge panel on Friday. It contends that Coleman has failed to meet his burden of proof that would enable him to overcome Franken's 225-vote lead."

PENNSYLVANIA: The Club for Growth's Pat Toomey looks closer to a primary run against incumbent Republican Arlen Specter.

WASHINGTON: "Former Microsoft executive Suzan DelBene has a strikingly similar résumé to that of Darcy Burner, the candidate who gave Reichert fits in 2006 and 2008. Burner is not planning to run again in 2010," The Hill reports. "As Washington state political science Professor Travis Ridout noted, Reichert can expect Democrats to launch a full-fledged attack next year because, after making significant gains in the House in the past two elections, they have a much smaller playing field. Democrats put the district in their 'Red to Blue' program last cycle and are expected to do the same in 2010."

From NBC's Pete Williams

Based on their questions and comments during three hours of oral argument Thursday, a majority of the California Supreme Court appeared ready to uphold Proposition 8, the ballot initiative that ended gay marriage in the state.

Approved by 52 percent of voters last November after a bitter election battle, it amended the state constitution to add a single sentence: "Only marriage between a man and a woman is valid or recognized in California." 

However, it seemed equally apparent that the court was prepared to rule that the 18,000 same-sex marriages performed in the state last year should remain valid. Licenses for those marriages were issued between May, when the state Supreme Court struck down laws against same-sex marriage, and November, when the constitution was amended by Proposition 8 to undo that ruling.

In arguing that Prop 8 was invalid, opponents claimed that the state constitution cannot be amended in a manner that takes away a fundamental right from a minority historically subject to discrimination. 

"An unpopular group cannot be selectively stripped of fundamental rights by a simple majority of voters," argued Shannon Minter, a lawyer for the opponents. "A majority cannot take away rights from a disadvantaged minority."

If Proposition 8 is upheld, opponents said, then voters could end mixed-race marriages, too. of they wanted.

But the justices were clearly skeptical of that argument, noting that the state Supreme Court has never found that such a limit applies to constitutional amendments adopted through the ballot box.

"What I'm picking up from the oral argument in this case is this court should willy-nilly disregard the will of the people," Justice Joyce Kennard said .

Appearing for the supporters of Prop 8, Kenneth Starr, the former Whitewater prosecutor, said the people hold the right to modify the state constitution by adding or subtracting protections for civil rights.

"The people have the raw power to define rights. The people are sovereign and can even do very unwise things," he said.

However, a majority of justices appeared to believe that marriages performed last year, after the court struck down state laws against gay marriage, should nonetheless continue to be valid. Proposition 8 did not explicitly apply to marriages performed before it was adopted in November, they noted.

The court will most likely issue its ruling within 90 days, sometime in early June.

From NBC's John Yang

Senior administration officials tell NBC News that Dr. Sanjay Gupta has withdrawn his name from consideration to the Surgeon General. Chuck Todd further reports that Gupta had been offered the job but was weighing the financial considerations (i.e. pay cut) that it would entail.

From NBC's Lauren Appelbaum
WASHINGTON -- Judicial Watch formally filed a federal civil rights law suit on behalf of Samuel Joseph Wurzelbacher, Joe the Plumber today. It alleges that "officials of the State of Ohio violated Mr. Wurzelbacher's constitutional rights by illegally accessing confidential information from its official databases," per Thomas Fitton, president of Judicial Watch.

Video: Countdown's Keith Olbermann discusses a lawsuit filed by Joe the Plumber against the state of Ohio for violating his Constitutional rights.

"It is our contention that there is an open question whether Joe the Plumber was number one on Obama's enemies list," Fitton said, referring to the alleged White House enemies list including Rush Limbaugh. "We already have evidence that government officials were misuisng government resources to, in our view, to try harm our client for speaking out against Mr. Obama."

Fitton said four days after Wurzelbacher's interaction with Obama on Oct. 12, 2008, the three highest ranking employees of the Ohio Department of Job and Family Services at the time held a meeting where they discussed Joe the Plumber. Fitton also said the three Ohio employees, who Fitton said are "believed to have been supporters of Obama's presidential campaign," then instructed agency personel to search confidential databases for information about Wurzelbacher.

"No American should be investigated for simply asking a question of a public official," Fitton said at the National Press Club. "It is unconscionable that high ranking state officials pried into confidential government files in retaliation for Joe's exercise of his First Amendment rights."  

"For state employees to do something like that to me, it shows that there is a problem that elected officials believe that they can slam just every civilian whenever they feel like it if they ask a question that embarrasses them, catches them off guard," Wurzelbacher said. "It's not the way it works. It works that way in Cuba but not in the United States of America."

Wurzelbacher also blamed the media. "Stop doing it with an agenda," he said to the media. "I wish they would report the facts and not what they think."

"Mainstream media has done their best to discredit everything and anything about me," Wurzelbacher said, telling reporters he can no longer find work as a plumber after this incident. "I'm actually making less than what I made as a plumber. He [Obama] has damaged me in that aspect as well."

Wurzelbacher said allegations of not having a plumbing license is not to blame. Instead, he said, people may like his work but say he overcharged, etc if they do not agree with him politically. Wurzelbacher is now doing some reporting work for Pajamas Media.

The lawsuit was filed in the U.S. District Court for the Southern District of Ohio, Eastern Division in conjunction with Ohio attorney David R. Langdon. The lawsuit includes punitive damages, but Langdon said they have not specified a particular amount yet. Regardless, Fitton said this suit is for all Americans who dare to question an elected official or candidate.

"Anyone watching what happened to Joe the Plumber is going to think twice about asking a question of a presidential candidate in the future," Fitton said.

From NBC's Domenico Montanaro
We posted on what the AFL-CIO was doing yesterday in pushing the Employee Free Choice Act, or card check, from its side, but its opponents, as we noted are also ratcheting up efforts.

The "Workforce Fairness Institute" frames the act as the Employee "Forced" Choice Act." And it equates increased union rolls with a potential loss of jobs -- in fact, 1.5 million more union members would mean a loss of 600,000 jobs, according to a study cited by the group.

Here's the full release:
The Workforce Fairness Institute today warned Congress not to pass the Employee Free 'Forced' Choice Act (EFCA) given a new study by noted economist Dr. Anne Layne-Farrar which reveals every three percentage points gained in union membership through card checks and mandatory arbitration would result in a one percentage point rise in the unemployment the following year.

The Employee 'Forced' Choice Act would take away a workers' right to cast a secret ballot in union elections and allow the federal government to impose a contract on businesses which don't yield to union demands within 90 days.  The federal government would be able to saddle businesses with federal bureaucrats dictating workplace salaries, benefits, and rules. 

According to the new study, An Empirical Assessment of the Employee Free Choice Act: The Economic Implications, an increase of 1.5 million union members in year one would lead to the loss of 600,000 jobs by the following year.  Job losses directly attributed to the passage of the EFCA would be equal to the entire population of Boston, MA.

Dr. Layne-Farrar concludes, "The costs [of EFCA] should be carefully weighed against any purported benefits of passing the Act, all of which appears to benefit some groups at the expense of others. There is no coherent theoretical argument that explains how the higher costs, greater legal uncertainty, and expanded government intervention entailed in EFCA would improve overall social welfare."

"This study clearly shows how devastating the Employee 'Forced' Choice Act would be to our economy.  If passed, we would see unemployment rise dramatically and the American people cannot afford legislation that further damages the economy.  EFCA puts everything at risk – our jobs, businesses, sacred right to a secret ballot, and right to keep the federal government from setting wages and benefits," said Katie Packer, executive director of the Workforce Fairness Institute.  "Congress must reject the Employee 'Forced' Choice Act, which is nothing more than political payback to union bosses who want to increase their membership at the expense of workers, businesses, and the economy."

From NBC's Claire Luke
Supporters of the Employee Free Choice Act, otherwise known as "card check," say the time is now for the bill to pass, and are summoning support for the bill before its forthcoming introduction to Congress.

The AFL-CIO held a conference call and issued a press release stressing the urgency and dedication needed from supporters of the bill, which they say would allow workers to organize a union by signing a card instead of holding secret-ballot elections, in order for it to pass through Congress. Since President Obama previously expressed his support for the bill, and labor unions are strong supporters of the Democratic Party, its passage through Congress is a primary focus of the AFL-CIO.

Vice President Biden, an ardent union supporter, spoke before the AFL-CIO's executive council today in Miami.

Card check is a divisive issue and a mobilizing one for conservatives. They have ratched up efforts to lobby against the act and are sending out daily e-mail blasts to national reporters.

Bill Samuel, AFL-CIO legislative director said on a conference call yesterday that the organization is confident that the bill, which is expected to be introduced in the coming months, has majority support in the House and Senate. (A majority is one thing, since Democrats control both chambers. But filibuster-proof is another story.)

But in a real show of confidence, Samuel also said on the call, "I'm confident it will pass the Senate with at least 60 votes."

The union used a poll it conducted as proof that there is public support for the measure. The group says 73% of Americans support the measure, which it says would make it easier for workers to bargain with their employers for better wages, benefits and working conditions.

John Schmidt, senior economist at the Center for Economic and Policy Research, said card check is an attempt to stop illegal firing of pro-union workers, a tactic used by corporations to weaken unions, he said.

The AFL-CIO also used a National Labor Relations Board report to back up its cause, saying it shows 1,291 discriminatory firings occurred between 2001 and 2007. Additionally, illegal firings have marred more than one-in-four board-sponsored union elections since 2000, and reached 30% of elections in 2007, per its report. The firm also estimates that almost one-in-five union organizers or activists can expect to be fired as a result of their activities in a union election campaign.

But the other side points to its own studies, including one that it says shows the act would cost the country 600,000 jobs in 2010. 

The group even brought on a former bus driver from New Jersey to share a story of being fired, she says, because of union participation.

"We need the employee free choice act to fix this broken system that gives corporations far too much power," said Marybeth Maxwell, executive director of American Rights at Work. "It's absolutely unacceptable that this happens everyday in the United States of America. We are asking for a level playing field and for money to bring home and invest and spend to get the economy rolling again. This is about fairness for American families and getting the economy moving again."

In an attempt to counteract the well-funded opposition to the Employee Free Choice Act, union advocates have invested about $10 million in a media campaign to educate the public and generate attention surrounding the employee free choice act. Maxwell said many allies to the cause, including environmental groups, civil rights groups and women's organizations, have joined the AFL-CIO in rallying for the bill.

In March 2007, card check passed the House and narrowly failed in the Senate; Sen. Arlen Specter of Pennsylvania was the only Republican to vote in favor of the bill.

From NBC's Domenico Montanaro
Al Franken's getting pretty impatient with all this recount business.

Now on Day 121, Franken filed a motion to dismiss Norm Coleman's lawsuit challenging the results of the recount.

AP: "The motion goes point-by-point through Coleman's lawsuit and disputes the validity of the former senator's claims on double-counted ballots and other irregularities. The filing says Coleman has failed to show the vast majority of rejected absentee ballots it wants counted were properly cast. It whittles the pool of Coleman-requested ballots down to nine, and attaches qualifications to some of those. Coleman's attorneys have said they are highlighting
inconsistencies and flaws in the election that deserve to be seen through."

One thing that has been certain in this recount, just when things look like they're going to end, they don't.

From NBC's Domenico Montanaro and Chuck Todd
Other than The Replacements -- Roland Burris and Kirsten Gillibrand -- likely no other Democratic senator will have a bigger target on his or her back in 2010 than Harry Reid.

And today Reid got a helping hand from liberal interest group Americans United for Change. The group, which is also running an ad dubbing Rush Limbaugh the "leader" of the Republican party, is up with one praising Majority Leader Reid for his efforts to create jobs.

The ad is a "small buy" running on local broadcast in Las Vegas and will be up through the end of the week.

The group contends that "this isn't getting involved in a Senate race, but recognizing leadership on an important issue to Nevada."

While the ad doesn't expressly advocate for Reid for Senate, it's never unhelpful for a senator in jeopardy to have a positive ad running for him on someone else's dime a year before he's up for re-election.

The group has targeted other House and Senate members for not supporting the stimulus or and will do so as well for the impending budget. But it is not on air supporting another candidate.

DNC buying billboard for Rush
Democrats keeping turning the screws on Rush Limbaugh. The Democratic National Committee is buying a billboard in Limbaugh's hometown, West Palm Beach, Fla., and running a contest encouraging Democrats to submit a slogan. The catch? The DNC gets your e-mail address.

From NBC's Domenico Montanaro
More Democrats are saying they might offer a primary challenge to Kirsten Gillibrand, and that is going to make her line to walk on guns even finer as 2010 approaches.

The pro-gun Upstate Democrat met yesterday with the Brady Campaign to Prevent Gun Violence. The Brady Campaign called it a "good start," adding that it "will be working with her to draft, advance and enact gun violence prevention legislation."

"Yesterday, the Chair of our Board of Trustees, Michael Wolkowitz, and I met with Senator Kirsten Gillibrand to discuss a number of issues related to gun violence prevention. We felt the meeting was a good start toward what we hope will be a strong and productive relationship helping to strengthen our gun laws and keep dangerous weapons away from dangerous people. Senator Gillibrand expressed particular interest in combating illegal gun trafficking, and we will be working with her to draft, advance and enact gun violence prevention legislation.
 
"I'm hopeful that Senator Gillibrand will be a key leader in the United States Senate on these issues. Gun violence kills 30,000 and injures another 70,000 Americans each year, including deaths of more than a thousand New Yorkers."

From NBC's Domenico Montanaro
The president may be holding a health-care summit today at the White House, in an effort to cull ideas for health-care reform, but some Republicans are making it clear they aren't going to stand for it.

Zach Wamp, the always self-assured Tennessee congressman, was on MSNBC this morning, railing against any health-care reform effort, calling it a move toward "socialism" and that Obama was engaging in almost "class warfare."

Video: Rep. Zach Wamp discusses President Obama's health-care summit with MSNBC's Tameron Hall.  

Wamp went so far as to say, "Health care is a privilege," before clarifying that he meant, "It's not necessarily a right" for those who choose not to pay for health care. He asserted that of the 47 million uninsured, half opt out of their employer's provided health care.

"It's probably the next major step towards socialism," Wamp began. "I hate to sound so harsh, but.... this literally is a fast march towards socialism, where the government is bigger than the private sector in our country and health care's the next major step, so we oughta all be worried about it." 
 
He compared Obama's reform effort to what "Mrs. Clinton" tried to do "a number of years ago." (That's despite the White House's efforts to appear very different in its approach by inviting a multitude of voices, including Republicans and insurers, to the table at today's health-care summit.)

Wamp added a thinly veiled "redistribution of wealth" argument, saying that the president wants to take money from those who already have health care to pay for those that don't have it.

"Listen, the 45 million people that don't have health insurance -- about half of them choose not to have health insurance...," Wamp said before issuing these warnings: "If you're on Medicare, beware. If you're a small businessperson, he [Obama] proposes to take away your deductions for charitable contributions, for your mortgage deduction on your home, in order to pay for health care. So, if you're one of those people who choose not to have health insurance, maybe you will have health insurance. But if you're one of those people that currently have health care, maybe they're going to take a benefit from you to pay for getting it to the other people. So, this is almost class warfare, in order for him to be able to say, 'Everyone now has health care.'"

Then he added, "Listen, health care is a privilege" (about 3:09 into the video.)

MSNBC Anchor Tamron Hall interjected. "It's a privilege? Health care? If you have cancer right now, do you see it as a privilege to get some treatment?" she asked.

"I was just about to finish to say, that for some people it's a right," Wamp said, "but for everyone, frankly, it's not necessarily a right. Some people choose not to pay."

Asked who is not entitled to health care, Wamp responded, "An employee who rejects the health care provided by their employer 'cause they don't want any of the money deducted from" their pay check. He again insisted, "Half the people today choose to remain uninsured. Half of them don't have any choice, but half of them choose to, what's called, 'Go naked.' And just take a risk of getting sick. They end up in the emergency room, costing you and me a whole lot more money. How many illegal immigrants are in this country today, getting our health care? Gobs of 'em."

But isn't the emergency room point exactly one of the arguments FOR reforming health care?

Wamp said the GOP is for "extending health care to the people that need it, not turning the whole health-care system over to the government." And he added that any solution should be "through the tax code; you give incentives for people to have health insurance."

But Obama is not proposing a single-payer system that would turn "health care over to the government," as the congressman suggested.

Later on MSNBC, former Senior Health Care Adviser to Bill Clinton Chris Jennings said Wamp's comments are just "their talking points every time the debate over health care comes up."

He added that Obama is not suggesting getting rid of employer-based health care, and it's a fallacy to suggest otherwise.

"I don't see how anyone can read that as anywhere close to socialism," Jennings said. "Most people outside the very far right wing of the Republican party agree with that. … There's an attempt to throw fear-mongering into this debate, because" Republicans don't have any "policy ideas."

The White House also took exception.

"If you go around the country, you won't hear many people saying, 'I don't want health care,'" a White House source said, adding that the point of today's summit, in fact, is to bring together people with varying views on the issue. "Now is the time to reform health care," the source said, "No one says, 'We agree with everything.' …We welcome voices from all sides of the spectrum."

From NBC's Ken Strickland
Sen. Ted Kennedy has returned to Washington today and will attend the health-care forum this afternoon at the White House.

From Chuck Todd, Mark Murray, and Domenico Montanaro
*** Focusing on health care: A week after his fiscal responsibility summit, President Obama today holds another summit -- this time on the topic of health care. The format is pretty much the same: Obama delivers opening remarks from the East Room at 1:00 pm ET, participants then attend breakout sessions, and finally the president holds a question hour with beginning at 4:00 pm. Per NBC's John Yang, the president will tie health care to the economy his opening remarks. "The cost of health care now causes a bankruptcy in America every 30 seconds. By the end of the year, it could cause 1.5 million Americans to lose their homes," he is expected to say. "If we want to create jobs and rebuild our economy, then we must address the crushing cost of health care this year, in this Administration. Making investments in reform now, investments that will dramatically lower costs, won't add to our budget deficits in the long-term -- rather, it is one of the best ways to reduce them." By the way, HHS Secretary-designate Kathleen Sebelius won't be at today's summit, but Nancy-Ann DeParle will be.

*** The two goals: Today's summit is about a couple of things. The first goal is to show off the idea that this will be an open process. The White House is live-streaming all five of the breakout sessions, allowing C-Span to broadcast at least one of them. What's more, the live streams will be archived for the public. The other goal of this summit is to make it appear as if all the stakeholders have a say -- so they invited as diverse of a group as they could, including prominent opponents of Clinton's health care plan from the early 1990s.

*** The four health-care horsemen: As for the policy debate itself, the administration's starting point is Obama's plan from the campaign. But in talking with key White House officials, they realize their best chance at getting something big to pass is to let the plan get written in the Senate (sorry, Mr. Waxman). That means there will be at least four key players. The biggest is Senate Finance Committee Chairman Max Baucus; he'll be the guy who probably will end up as the plan's architect. Then there are Sens. Wyden and Bennett, who have a surprisingly popular bipartisan idea that, among other things, proposes shifting the Medicaid burden away from the states (we think we know 50 governors who will LOVE that idea). The fourth big Senate player: Sir Teddy. This is not to say the House won't be involved, but the reality is the Senate is the more difficult lift.

Video: Kennedy honored with knighthood.

*** Party like it's 1993? With today's focus on health care, it's worth noting that the new NBC/WSJ poll doesn't show a huge appetite for an overhaul of health care right now. According to the poll, 49% say they would be willing to pay higher taxes so everyone could have health insurance, versus 45% who say they'd be unwilling to do this. Yet back in March 1993 -- just as the Clintons were embarking on their health-care drive -- 66% said they'd be willing to pay higher taxes here. And, of course, we know how that effort turned out. This is probably why you're seeing the Obama administration focus on lowering health-care costs than press for universal care. That said, the poll does find that, by a 69%-25% margin, Americans support increased spending on health care.

*** Demonizing Rahm: The Democrats have found their boogeyman in Rush Limbaugh, and now Republicans have found their own in … Rahm Emanuel. That's right, House Minority Leader John Boehner released a statement yesterday blaming "political operatives" in the White House from diverting attention away from the country's economic challenges to Rush Limbaugh (even though Limbaugh was in the news because he was the concluding speaker at the same conservative confab Boehner addressed). And on TODAY this morning, Newt Gingrich compared Rahm to Nixon chief of staff H.R. Haldeman.

*** A Fu(gate) good men: Think Team Obama learned not to repeat this Bush administration mistake -- appoint someone to head FEMA with little prior experience in emergency management? Yesterday, Obama named Craig Fugate, director of Florida's emergency management -- who knows a thing or two about natural disasters -- to lead FEMA. And today, Fugate will appear with Homeland Security Secretary Napolitano and HUD Secretary Shaun Donovan at an event in New Orleans to signal the Obama administration's commitment to rebuilding the Gulf Coast. Fugate is a Republican, and the pick was praised by former Florida Gov. Jeb Bush and current Florida Sen. Mel Martinez, who said in a statement: "Florida's loss will be the nation's gain. Craig is a top-notch individual who has helped Florida through some very severe hurricanes. He set the national model for disaster preparedness and I look forward to his swift confirmation."
 
Countdown to NJ GOP primary: 89 days
Countdown to VA Dem primary: 96 days
Countdown to Election Day 2009: 243 days
Countdown to Election Day 2010: 607 days

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The AP previews Obama's White House health-care summit today. "[M]ore than 120 people who hold a wide range of views on how to fix the world's costliest health care system, one that still leaves millions uninsured," will attend. "A broad group of doctors, patients, business owners and insurers were to gather for a forum Thursday in hopes of building support for big changes in health care. Republicans are invited, and they're expected to speak up."

The Washington Post: "Obama's opening gambit to dramatically expand the health-care system has attracted surprising notes of support from insurers, hospitals and other players in the powerful medical lobby who are set to participate in an unusual White House summit on the issue this afternoon. The lure for the industry is the prospect of tens of millions of new customers: If Obama succeeds in fulfilling his pledge to cover many more Americans, those newly insured people will get checkups, purchase medicine, undergo physical therapy and get surgeries they cannot afford today." 

The New York Times on President Obama's pick to head FEMA, Craig Fugate, who "has been director of the Florida Division of Emergency Management since 2001 and is credited with steering the state through some of the most devastating hurricane seasons in recent history. In a 2006 profile, Florida Trend Magazine said that in times of crisis Mr. Fugate was usually 'the calmest guy in the room.'" 

Here's coverage of Obama's housing plan… "The Obama administration yesterday sketched in the details of its most ambitious attempt to reduce foreclosures and stabilize the beleaguered housing market at the root of the economic meltdown," the Washington Post front-pages. The program has two key elements: a refinancing program for borrowers with little equity in their homes but current on their loans, and a $75 billion program to help reduce mortgage payments for struggling borrowers."  

The New York Times adds, "People with mortgages as high as $729,750 could qualify for help, and there is no ceiling on how high their income can be as long as they are in danger of losing their homes. Interest rates on loans could go as low as 2 percent for some. Many homeowners could see their mortgage payments drop by several hundred dollars a month, and some could save more than $1,000 a month."

The Wall Street Journal says the housing package "represents an effort to tackle the political challenges inherent in any housing rescue. While the administration wants a sweeping program that would prevent millions of foreclosures, it doesn't want to be seen as rewarding the greedy or reckless. 'It is imperative that we continue to move with speed to help make housing more affordable and help arrest the damaging spiral in our housing markets, just as we work to stabilize our financial system, create jobs and help businesses thrive,' Treasury Secretary Timothy Geithner said in a written statement." 

The AP gets into the weeds on Obama's housing plan. "It's not intended to prevent every foreclosure or to help every homeowner," a senior Treasury Department official told reporters. "It's really targeted at responsible homeowners." There was also skepticism that banks would be willing to participate."

Per NBC's Lauren Appelbaum, Biden will deliver the commencement at Syracuse University on May 10.

Sens. Evan Bayh and Russ Feingold said they are voting against the omnibus spending bill and urged the president to veto it.

"President Barack Obama's proposal to limit itemized tax deductions for high earners is running into opposition from key Democrats in Congress who worry that charities and the housing market would be hurt," AP reports.

Salon's Mike Madden asks, "Why is John McCain being such a jerk?" From the story: "A couple of weeks after Barack Obama beat John McCain in the election last year, the former rivals got together in Chicago for a friendly chat. The meeting went so well, despite the months of political combat, that they issued a joint statement afterward, promising to work hand-in-hand to reform government. The night before Obama took office this year, he threw a dinner in McCain's honor. Both men said they hoped they could put the bruising campaign behind them. Which is why the way McCain is spending his time less than two months later is a little strange: Lately, he seems to be going out of his way to remind the country of how much he and Obama disagree."

NBC's Mike Viqueira reports that a deal was reached yesterday for Karl Rove and Harriet Miers to testify before Congress on the firings of US attorneys during the Bush administration. Under the arrangement, both would testify behind closed doors to the House Judiciary Committee. The testimony would NOT be under oath, but the Dem source hastens to add that lying to Congress -- sworn or not sworn -- is a criminal offense.

Video: Karl Rove, along with former White House Counsel Harriet Miers, have agreed to testify before Congress.

No date has been set. The committee is also expected to get access to long-requested documents.

The Hill: "The agreement follows months of negotiations between Rep. John Conyers (D-Mich.), the chairman of the Judiciary panel, and the two advisers to then-President Bush. The deal ends a months-long separation-of-powers standoff between Congress and the administration."

"Four months after John McCain's sweeping defeat, senior Republicans are coming to grips with the fact that the party is still -- in stock market terms -- looking for the bottom," Politico's Ben Smith writes. "Republicans this week are processing two sobering new polls that found the party's support reduced to a slim one-quarter of Americans. In the absence of a popular elected leader, its most visible figure is a polarizing radio host. Its strategic powerhouse is a still-divisive former House speaker forced from power 15 years ago."

"And its hopes of demonstrating swift and visible change by pushing people of color to the fore have been dented by the stumbles of the party's two most prominent non-white leaders, national Chairman Michael Steele and Louisiana Gov. Bobby Jindal. So perhaps it's no surprise that many prominent Republicans are forecasting a long winter." 

How about Roger Simon's lead: "Michael Steele has just dipped his toe into the water and is already in over his head. ... Steele's job is really not that difficult. Being a party chairman is not what it used to be. Steele's job is to raise money and go on TV every now and then and not screw things up too badly. He has failed at this last task."

The Washington Post writes, "Republican National Committee Chairman Michael S. Steele says he will keep pressing forward on his plans to remake the party, even if he occasionally annoys moderates or conservatives. 'I'm in the business of ticking people off,' he said in an interview. 'That's why I'm chairman.'"

Repeating a statement his office released yesterday, House Minority Leader John Boehner pens a Washington Post op-ed calling the Dem effort to tie Rush Limbaugh to the Republicans a diversion.

More Boehner… "Despite being in the minority and coming up against a wildly popular Democratic president, House Minority Leader John Boehner (R-Ohio) said Wednesday that his party is off to 'a good start' this year," Roll Call reports. " 'Americans like the president. They want him to succeed. That's why his numbers are where they are,' Boehner said. 'Having said that, the things they're doing are becoming increasingly unpopular.'"

MINNESOTA: The recount trial continues. Yesterday, Al Franken's legal team brought forward a parade of people who say their votes may have been wrongly rejected in the U.S. Senate race. But Franken attorney Marc Elias said those voters were the exceptions dealt a raw deal by an election system that '[got] it right 99.99 percent of the time.' He said his side will move today to dismiss parts of the election recount trial that was initiated by Republican Coleman in an attempt to overturn Democrat Franken's 225-vote lead." 

The Hill looks at the potential risks and rewards for the differing strategies of Democrats (which is more low key) and Republicans (more intense) in the Minnesota Senate race.

MICHIGAN: "Coming off a surprisingly close reelection race in 2008, Rep. Thaddeus McCotter (R-Mich.) dodged a bullet Wednesday when state House Speaker Andy Dillon (D) told national Democrats he would not run in 2010… A Michigan source tells The Hill that Dillon is more interested in running for governor, an office that will be vacated when Jennifer Granholm (D) is forced out by term limits."

NEW YORK: Stu Rothenberg, writing in Roll Call, asks this key question when it comes to NY-20: "[S]hould the DCCC keep expectations low by doing little more than it has already done for its nominee?" That said, he adds, if the DCCC jumps in, the race could be closer than expected, as the GOP's registration advantage is misleading.

Manhattan borough president Scott Stringer says he's thinking about challenging Sen. Kirsten Gillibrand in a 2010 Dem primary. "The number of potential challengers considering a run against Ms. Gillibrand, who was appointed by Gov. David A. Paterson in January, is growing, underscoring not only Ms. Gillibrand's perceived vulnerability but also the governor's inability, so far, to gather support for her."

From NBC's Athena Jones

WASHINGTON -- The White House kept the focus on cutting costs Wednesday, saying changes to government spending procedures, especially in the area of contracting, would save up to $40 billion a year.

The presidential memorandum President Obama signed today asks OMB Director Peter Orszag to work with Cabinet officials and agency heads to develop new guidelines on contracting by the end of September that would end unnecessary outsourcing and no-bid contracts, open up the contracting process to small businesses and strengthen oversight.

Video: Obama talks about his plan to cut wasteful spending.

Obama has repeatedly emphasized the need for states, cities and federal agencies to spend taxpayer money wisely, especially as they implement the massive $787 billion stimulus package he signed into law last month. He argues that while the current economic crisis calls for a hefty increase in government spending in the short-term, the country's long-term economic health will require fiscal restraint.

"Even as we make the necessary investments to put our economy back on track, we're proposing significant changes that will help bring the yawning deficits we inherited under control. We are cutting what we don't need to make room for what we do," he said. "My budget reduces discretionary spending for non-defense programs as a share of the economy by more than 10 percent over the next decade, and it will take it to the lowest level in nearly half a century."

Agriculture Secretary Tom Vilsack and Homeland Security Secretary Janet Napolitano later briefed reporters on cost-cutting efforts in their departments to underscore the administration's focus.

Vilsack said he had asked USDA staffers to look for costs savings weekly and listed several changes that had been made, including the cancelation of a $400,000 consulting contract. According to a list released by the White House, the department also expected to save $1.3 million a year by using technology instead of people to train rural development staffers.

Napolitano said her department had identified at least $17 million it could save by using technology to move frequent travelers through the ports of entry.

Still, some members of Congress like Arizona Republican Sen. John McCain -- who was on hand for the president's morning remarks on contracting -- and Indiana Democrat Sen. Evan Bayh have criticized a $410 billion omnibus spending bill the president plans to sign that they say is laden with the very earmarks he railed against on the campaign trail.

Bayh argued in a Wall Street Journal op-ed published today that the bill exacerbates budget problems and that the debate over it is "not merely a battle over last year's unfinished business, but the first indication of how we will shape our fiscal future."

But the White House has argued just the opposite.

"This is the culmination of the legislative business from the previous fiscal year and the previous Congress," White House Press Secretary Robert Gibbs said. "The president is greatly concerned, and I think that shows in the efforts that he's taken to illuminate through transparency and accountability wasteful spending and earmarks in legislation. That's why he put his on the Internet. That's why he hasn't asked for any in the past few years. And the president believes that we can work with Congress to reduce wasteful spending in the future."

Gibbs said the president would soon lay out "very clear objectives" regarding earmarks in future legislation.

"There will be, over the course of the next several years, dozens and dozens of appropriations bills that cross his desk," he said. "And we'll change the rules going forward, understanding that we have to deal with last year's business. "

The administration also released promised guidelines today on its $75 billion plan to help struggling homeowners avoid foreclosure, part of a multi-pronged attempt to help jumpstart an economic recovery. The new details spell out eligibility requirements and verification procedures and loan modification terms and procedures.

From NBC's Domenico Montanaro and Mark Murray
President Obama named the head of emergency management for the state of Florida to be his nominee for head of the Federal Emergency Management Agency.

Craig Fugate has made a career of serving in local government as well as heading up emergency management from the town level all the way up to the state level in a state that deals with its share of natural disasters.

The pick follows in the model of Bill Clinton on FEMA, selecting someone with specific experience in the field. Symbolically, this is also a marked departure from former President George W. Bush's FEMA choice. Ironically, Fugate was first appointed by the former president's brother, Jeb Bush, in October 2001.

That point was not lost on this White House. To underscore the point, Fugate will be introduced tomorrow with Department of Homeland Security head Janet Napolitano in New Orleans.

"From his experience as a first responder to his strong leadership as Florida's Emergency Manager, Craig has what it takes to help us improve our preparedness, response and recovery efforts and I can think of no one better to lead FEMA. I'm confident that Craig is the right person for the job and will ensure that the failures of the past are never repeated," President Obama said in a statement.

From NBC's Domenico Montanaro
British Prime Minister Gordon Brown called on the United States today to join the U.K. and other countries around the world to "seize the moment" and launch a "Global New Deal."
 
"[W]e should seize the moment, because never before have I seen a world so willing to come together," Brown said in an address to a joint session of Congress in Washington. "Never before has that been more needed. … We can achieve more working together."
 
He continued, "I believe that ours too is a time for renewal, for a plan for tackling recession and building for the future. Every continent playing their part in a global new deal, a plan for prosperity that can benefit us all."
 
Brown used the word prosperity, by the way, eight times in his approximately 32-minute speech, an average of about once every four minutes.
 
The intent of his speech was to call for the U.S. to do more about the global economy -- by outlawing shadow bank systems and off-shore tax havens, uniform bank regulations and lowered worldwide interest rates and to reduce carbon emissions -- but he didn't get there until about two-thirds of the way through. 
 
Brown, who is faltering in polls back home, seemed to relish in the hand-shaking and adulatory applause -- a familiar sight from this chamber for Americans, who are accustomed to seeing similar displays during State of the Unions. Brown seemed to get to every hand he could reach, even shaking hands off from the podium during introductory applause for him.
 
"I come in friendship," he proclaimed, adding, "to renew our special relationship."
 
He cited the U.S.'s role in putting a man on the moon as well as helping to end the Cold War. "You are irrepressible…. It's impossible to come here without your faith in the future renewed."
 
He thanked the U.S. for fighting in World Wars One and Two and added that in today's fight, terrorists "have not and will not destroy the American spirit."
 
But he then went right in on the global recession. He said that one lesson learned has to be that markets have to be "free, but not values free." He added that ideology shouldn't get in the way and that markets shouldn't just enrich the rich. Brown lauded Obama's efforts with the stimulus and the restructuring of banks. He called for investments in education domestically as well as in places like Africa, so poor children aren't lured away to madrassas where they learn to "hate us."

America's "reach goes far beyond its geography," he reminded.
 
He called current European leader the most "pro-American" he can remember. And that there is no "old Europe" or "new Europe" – "only your friend Europe."
 
Elevating Obama
Brown's elevation of Obama to iconic status should not be missed.

It has been widely noted that Brown was hoping to come to the U.S. at a difficult political time and bask in the glow of Obama, who, according to the latest NBC News/Wall Street Journal poll, enjoys high ratings.
 
"America is renewed under a new president," Brown said before thanking Obama for, in fact, giving the whole world a "renewed hope in itself."

He even went so far as to put Obama in the class of 20th Century icons -- Franklin D. Roosevelt and Ronald Reagan, who have held idol status as aspirational emblems of their political parties.

"[W]orking together, there is no challenge to which we are not equal, no obstacle that we cannot overcome, no aspiration so high that it cannot be achieved," Brown said. "In the depths of the Depression, when Franklin Roosevelt did battle with fear itself, it was not simply by the power of his words, his personality and his example that he triumphed. Yes, all these things mattered. But what mattered more was this enduring truth -- that you, the American people, at your core, were, as you remain, every bit as optimistic as your Roosevelts, your Reagans and your Obamas. This is the faith in the future that has always been the story and promise of America."
 
'Sir Edward Kennedy'
Brown also announced that the U.K. was granting honorary knighthood to Massachusetts Sen. Ted Kennedy, or "Sir Edward Kennedy." Patrick Kennedy sought out Brown and the two hugged after the speech.

From NBC's Libby Leist

The State Department today pressed the Sudanese government to "take seriously" the arrest warrant of President Bashir issued by the International Criminal Court and to respond "in a positive matter."

The U.S. is not a signatory to the court, so spokesman Gordon Duguid would not explicitly welcome the arrest warrant today. 

Instead he said, "The United States is strongly committed to the pursuit of peace in Sudan and believes those who have committed atrocities should be held accountable for their crimes."

He added later that he thought the warrant could be "helpful" in bringing peace to Sudan.

The U.S. is calling for restraint from the government of Sudan and armed rebel groups in responding to the arrest warrant, Duguid said, and he stressed the need to ensure the safety of Sudanese populations, international citizens and peacekeepers.

As for U.S. embassy operations in Khartoum, Duguid said the embassy is open and functioning and all U.S. citizens are safe and accounted for.

Egyptian Foreign Minister Ahmed Aboul Gheit took a different tack earlier, calling "on the U.N. Security Council to suspend" the arrest warrant and "hold an urgent and emergency meeting" to decide to do so, per Reuters.

Meanwhile, while in the Middle East, Secretary of State Clinton publically pressured Israel to stop the demolition of homes in East Jerusalem, calling it "unhelpful" and a breach of Israel's international obligations.

She also pressed the need to do more to open border crossings into Gaza, to allow humanitarian aid to get through.