Video: The G-20 summit, if it's Tuesday... NY-20, Geithner on Meet the Press, and BIG Bill Clinton news.

 

 

From NBC's Ken Strickland
On Wednesday, General David Petraeus returns to Capitol Hill to discuss the president's new Afghanistan-Pakistan strategy. He'll testify before the Senate Armed Services Committee in his role as the Centcom commander. Also testifying will be Michele Flournoy, the under secretary of Defense for Policy.

Kansas Gov. Kathleen Sebelius will have two confirmation hearings next week to become HHS secretary. On Tuesday, she'll appear before the Senate Health, Education, Labor & Pension Committee (which is a courtesy hearing because it doesn't approve the nomination). And on Thursday, Sebelius has her official hearing before the Finance Committee.

There are a couple of financial oversight, follow-the-money-type hearings that could generate some fireworks since fiscal accountability became all the rage. On Tuesday, the Finance Committee will get a six-month update on TARP spending from a panel that includes the TARP Special Inspector General Neil Barofsky. 

And the Homeland Security/Governmental Affairs Committee will hear the administration's plan on how it will keep track of the billions being spent in the stimulus bill. OMB deputy Rob Nabors and Inspector General Earl Devaney will be the witnesses in this Thursday hearing.

The Senate's version of the budget resolution moves to the floor Monday, and is expected to consume the week's legislative activity before Congress begins a two-week recess on April 6.

From NBC's Mark Murray
Finding their candidate in a tight contest -- even trailing by four points in a new poll -- the National Republican Congressional Committee has unveiled a provocative new Web ad that hits Democratic candidate for opposing the death penalty, even for terrorists.

[Youtube:lmwnnNPGVUQ]

From NBC's Chuck Todd

In the midst of the congressional outrage over bonuses and bailouts, many of the very firms who benefitted from TARP funds are still making political donations. And the politicians are still taking them.

According to the latest F.E.C. data for February, several members of Congress who have been critical of the federal government's bailout of U.S. companies have received campaign contributions just in the last six weeks – from the firms they bailed out.

Campaign-finance-reform advocate Fred Wertheimer says the government's been bailing out banks and other major "too-big-to-fail" firms -- as these same companies continue to use their PACs to make contributions. "It all adds up to kind of a magic circle involving the government, TARP recipients, members of Congress, and campaign contributions."  The reality, of course, is that these contributions, individually, aren't a lot of money. But many members of Congress (including Speaker Pelosi and Financial Services Chair Barney Frank) have decided against taking any of the money. The optics of this for both the banks and for the members of Congress is bad, and only feeds the credibility problems both entities have with the American public.

NBC's Chuck Todd reports on the political contributions some politicians are getting from businesses and other organizations receiving bailout money.

So who is getting money and giving it right back to the politicians? Here's a list of companies who received at least $1 billion in TARP funds and in February alone also gave money to members of Congress or national parties:

(Note: more TARP-recipients may have given money in February but not every company PAC reports their contributions monthly, some do it quarterly, meaning we won't know until mid-April if these figures are actually higher)

Citigroup
Bank of America
Goldman Sachs
U.S. Bancorp employee PAC
Chrysler
American Express
KeyCorp
BB&T
Huntington Shares

Now here's a list of House leadership and banking committee members who got money from these bailed-out companies:

(Note: Some members of Congress received contributions directly to their campaign accounts and some received money to their leadership PACs.)

Steve Austria, R-Ohio, $1,000 from Huntington Shares
Spencer Bachus, R-Ala., $5,000 from Bank of America
Melissa Bean, D-Ill., $5,000 from Bank of America
Roy Blunt, R-Mo., $1,500 from U.S. Bancorp employee PAC
John Boehner, R-Ohio, $5,000 from Bank of America; $5,000 from American Express; $1,500 from U.S.
Bancorp employee PAC
Kevin Brady, R-Texas, $1,000 from Citigroup; $1,000 from American Express
Eric Cantor, R-Va., $2,500 from Citigroup; $5,000 from Bank of America; $1,000 from Chrysler; $2,500
from American Express
Jim Clyburn, D-S.C., $1,000 from Bank of America; $5,000 from Bank of America
Joe Crowley, D-N.Y., $5,000 from Bank of American
Joe Donnelly, D-Ind., $1,000 from Chrysler
Vern Ehlers, R-Mich., $1,200 from Huntington Shares
Jeb Hensarling, R-Texas, $1,000 from Citigroup; $5,000 from Bank of America
Steny Hoyer, D-Md., $1,500 from Bank of America; $5,000 from Bank of America
Lynn Jenkins, R-Kan., $1,000 from Citigroup; $1,000 from Bank of America; $1,000 from U.S. Bancorp
Jim Jordan, R-Ohio, $1,000 from Huntington Shares
Mary Jo Kilroy, D-Ohio, $1,000 from Huntington Shares
Leonard Lance, R-N.J., $1,000 from Citigroup; $2,000 from Goldman Sachs
Kevin McCarthy, R-Calif., $1,000 from Citigroup; $5,000 from Bank of America
Greg Meeks, D-N.Y., $5,000 from Bank of America
Gary Miller, R-Calif., $1,000 from Bank of America
Gwen Moore, D-Wis., $2,500 from Bank of America
Richard Neal, D-Mass., $4,000 from Citigroup; $5,000 from Bank of America; $1,000 from American
Express
Randy Neugebauer, R-Texas, $1,000 from U.S. Bancorp employee PAC
Devin Nunes, R-Calif., $5,000 from Bank of America
Glenn Nye, D-Va., $250 from BB&T
Mike Pence, R-Ind., $1,000 from Chrysler
Earl Pomeroy, D-N.D., $1,000 from Chrysler
Mike Rogers, R-Mich., $1,000 from Chrysler
Pete Sessions, R-Texas, $5,000 from Bank of America
Lamar Smith, R-Texas, $1,000 from American Express
Pat Tiberi, R-Ohio, $1,000 from Huntington Shares
Mel Watt, D-N.C., $1,000 from Bank of America; $1,000 from BB&T; $1,000 from U.S. Bancorp
employee PAC

But Senators also benefitted:

(Note: Both Reid and Shelby say they returned their checks. *** UPDATE *** Sen. Blanche Lincoln's office also notes that she returned her check. And Sen. Sherrod Brown's office says that if he had received donations from a firm receiving TARP funds, they will be returned.)

Michael Bennet, D-Colo., $1,000 from U.S. Bancorp employee PAC
Robert Bennett, R-Utah, $1,000 from Chrysler
Sherrod Brown, D-Ohio, $1,000 from Chrysler
Richard Burr, R-N.C., $5,000 from Bank of America
Tom Carper, D-Del., $620 from Citigroup; $1,000 from Bank of America; $5,000 from Bank of America
Jim DeMint, R-S.C., $2,000 from Citigroup; $1,000 from Bank of America; $2,000 from BB&T; $1,000
from U.S. Bancorp employee PAC
Johnny Isakson, R-Ga., $1,000 from Citigroup
Blanche Lincoln, D-Ark., $1,000 from Bank of America
Bob Menendez, D-N.J., $5,000 from Bank of America
Jeff Merkley, D-Ore., $2,500 from Citigroup; $4,000 from Bank of America
Harry Reid, D-Nev., $1,000 from U.S. Bancorp employee PAC
Richard Shelby, R-Ala., $5,000 from Bank of America
Arlen Specter, R-Pa., $2,000 from Chrysler
George Voinovich, R-Ohio, $5,000 from Bank of America

And so did the Parties.

The Democrats:
(Note: Both the DSCC and the DCCC say they never received the checks Bank of America reported in their March FEC report)

NDCPAC, $5,000 from Citigroup, $5,000 from Bank of America
Blue Dog PAC, $5,000 from Citigroup; $5,000 from Bank of America
DSCC , $15,000 from Bank of America
DCCC,  $15,000 from Bank of America
FourOhDems, $1,000 from Huntington Shares

And the Republicans:

HouseConFund, $5,000 from Bank of America
GOP Main Street, $5,000 from Bank of America
NRSC, $15,000 from Bank of America
NRCC $15,000 from Bank of America

Interestingly, Goldman Sachs actually reported members of Congress who refused to cash their checks, including Rep. Stephanie Herseth, D-S.D., Rep. Pete DeFazio, D-Ore., and then-Congressman and now chief of staff, Rahm Emanuel.

Want to know if your Congressman is getting these contributions?
Check out the FEC's reports on "Campaign Reports and Data" and "Disclosure Data Search" to search by donor or politician).
(Note: some companies have multiple PACs, like Bank of America.)

What about whether or not your Congressman's contributors have taken bailout money?
Try here at the Treasury TARP Transactions List.

From NBC's Athena Jones

The future of Afghanistan is "inextricably linked" to the future of Pakistan, President Obama argued today as he announced a sweeping new policy toward Afghanistan that will include more troops for the country and more aid for its increasingly unstable neighbor.

In stern, forceful language, the president sought to make the case to the American people -- and to the world -- that the security situation in Afghanistan and Pakistan was a shared responsibility that would require a sustained international effort to go after Al Qaeda and to help with economic development in the region.

"For the American people, this border region has become the most dangerous place in the world," he said. "I want the American people to understand that we have a clear and focused goal: to disrupt, dismantle, and defeat al Qaeda in Pakistan and Afghanistan, and to prevent their return to either country in the future."

Obama has already ordered 17,000 additional troops be sent to Afghanistan this year and today he announced that an additional roughly 4,000 troops would be sent to help train Afghan security forces. He also called on Congress to pass two bills -- one that would provide $1.5 billion a year for five years to build schools, roads and hospitals in Pakistan; and another that would create "opportunity zones" in border regions to develop the economy.

Throughout the presidential campaign, Obama argued that Afghanistan was the central front in the war on terror, and that the situation in the region had deteriorated because resources that had been diverted to the war in Iraq.

The struggle in this mountainous -- sometimes lawless -- part of the world presents a complicated challenge to the Obama administration, and some critics have expressed concern this new policy could represent an unending commitment.

A perilous quagmire?
"I regret that President Obama, in his desire to protect our nation from a genuine threat, has outlined a policy that will undermine our security, not enhance it," said Win Without War's National Director Tom Andrews in a statement. "We want to be able to support the president and his efforts to protect the American people from the threat of al Qaeda. But the policy announced today will fail to do so and instead takes a significant step toward a perilous quagmire."

Obama acknowledged that the road ahead would be long and tough, but he insisted that America would "not blindly stay the course" and would instead set clear standards for measuring progress in the region.

The president was joined by Bruce Reidel, who headed the policy review, and Ambassador Richard Holbrooke, who was appointed to serve as special representative to both countries. Also in attendance were Defense Secretary Robert Gates, Secretary of State Hillary Clinton, National Security Adviser Jim Jones, General David Petraeus, several Afghan women, diplomats, and members of the military.

Obama called Al Qaeda and its allies a "cancer that risks killing Pakistan from within," and he said intelligence estimates had warned the group was actively planning attacks on the United States from its safe haven in Pakistan. He argued that failure in the region would be a threat to nations across the world, reminding them that attacks in London, Bali, North Africa, the Middle East, Pakistan, and Afghanistan were tied to Al Qaeda.

"To the terrorists who oppose us, my message is the same: we will defeat you," he said, though he insisted America would not give Pakistan a "blank check" and that it must show a willingness to root out Al Qaeda and other extremists.

The administration white paper added that America must overcome a "trust deficit" in the two countries, where many people believe the U.S. is not a reliable long-term partner. Obama's policy for the region calls for a "standing, trilateral dialogue" among the United States, Afghanistan, and Pakistan to be led by Clinton and Gates.

In the speech this morning, the president said a return to Taliban rule would doom Afghanistan, but he also stressed that America had no wish to control the country or dictate its future, even as it sought to strengthen its democracy and fight corruption.

April's NATO summit in Europe will give Obama a chance to sell member countries on his Afghanistan-Pakistan policy and seek the kind of international help he believes is crucial. In a statement this morning, Afghanistan's ambassador to the U.S., Said Jawad, asked NATO and other major donors to support the new plan with resources.

Reaction from the Hill
Republicans like New York Rep. John McHugh, the top GOPer on the House Armed Services Committee, and Indiana Sen. Dick Lugar, the ranking Republican of the Foreign Relations Committee, came out in support of the new policy.

In separate statements, McHugh called on Congress "to ensure the strategy is fully funded, resourced and executed." Lugar, meanwhile, called Afghanistan a "a crucial test for NATO and the international community" and said Obama's policy properly focuses on aid to civilians and economic development.

Senate Minority Leader Mitch McConnell (R-KY) also supports the strategy, which he termed a surge -- a loaded word given Obama's frequent insistence during the campaign that the surge in Iraq had reduced violence but had not achieved its goals politically.

"I commend the president's announced strategy for Afghanistan today, which includes a surge of forces and a renewed commitment to dismantling Al Qaeda and combating the Taliban," McConnell's statement read in part. "Republicans are supportive of these national objectives and will work with the administration to develop policies to secure greater cooperation from the government of Pakistan to rid the tribal areas of terrorist sanctuaries."

On the Democratic side, Speaker Nancy Pelosi called the new policy "the right plan to stabilize Afghanistan and to protect the American people." But Wisconsin Sen. Russ Feingold, who is a member of the Foreign Relations and Intelligence committees, expressed concern that the new policy might be too narrowly focused and should be even more regional.

Feingold's statement said he was pleased the new strategy included benchmarks for progress, an emphasis on fighting corruption in the Afghan government and increased assistance to civilians, but said a larger effort was needed in Pakistan. "The proposed military escalation in Afghanistan, without an adequate strategy in Pakistan, could make the situation worse, not better," he said.

From NBC's Mark Murray
This is potentially bad news for the GOP: A new Siena Research Institute poll shows Scott Murphy (D) leading Jim Tedisco (R), 47%-43%, in that special election taking place in upstate New York on Tuesday. (Hat tip: Taegan Goddard.)

An earlier Siena poll this month had Tedisco up by fours points (45%-41%), and in February, Tedisco was ahead by 12 (46% to 34%).

As we've written, it would be a P.R. disaster for Republicans if they lose this GOP-leaning congressional district, where registered Republicans outnumber Democrats and which the GOP held for 28 years until Kirsten Gillibrand (D) won it in 2006. (That said, Obama did capture 51% of the vote in this district last November.)

"If Republicans lose this race, it is likely to have more significant aftershocks than if Democrats lose," Amy Walter of the Hotline told First Read.

"I think Republicans will have to do some introspection if they lose this race," added David Wasserman of the Cook Political Report. "If there is any district in New York they should be able to get back, it is this one."

Meanwhile, Tedisco released this statement about the new Siena poll: "Heading into Election Day, our campaign's internal polling shows us continuing to lead, just as we have for this entire race. Today's Siena poll is simply another in a line of polls that show this race within the margin of error.  In the end this race is coming down to voter intensity and turnout, and our internal polls show us with strong leads in both areas."

From Chuck Todd, Mark Murray, and Domenico Montanaro
*** The Afghan-Pak strategy: At 9:25 am ET, President Obama will announce that he's sending an additional 4,000 military trainers and advisers to Afghanistan, on top of the 17,000 he's already deployed there. As NBC's Jim Miklaszewski reported last night, the president's new strategy will focus on accelerating the training and doubling the size of Afghan security forces to take over the fighting. But this isn't just about Afghanistan; today's policies will also be about neighboring Pakistan. As Bloomberg News notes, "Obama also would support legislation to triple economic aid to Pakistan to about $1.5 billion a year in exchange for that country cracking down on Taliban and terrorists hiding out along border… The goal is to weaken and ultimately destroy al-Qaeda's havens and sanctuaries in Pakistan and prevent the terrorist group from returning across the border to Afghanistan, the officials said." Some might see today's announcement as a ramping of activity in Afghanistan, but is sending 4,000 trainers/advisers an acknowledgement of the opposite? Everything about this announcement today, in fact, has the feel of trying to minimize the military aspect of the conflict. To put it another way, this is a dramatic shift away from the philosophy some in the Bush administration pushed -- which was democracy for Afghanistan.

Video: NBC's David Gregory joins Morning Joe to discuss the usuage of bailout funds and the Republican Party's alternative budget proposal.

*** Dude, where's my budget? Let's be honest: Yesterday's House Republican budget rollout was a P.R. disaster for the GOP. "Here it is, Mr. President" was the title of the GOP Leader blog touting that they had answered Obama's dare to produce a budget. The problem -- their budget rollout didn't contain any hard budget numbers or deficit projections. They say those hard numbers will come out next week. But now we learn that Reps. Eric Cantor and Paul Ryan objected to unveiling yesterday's "blueprint," but were overruled by Reps. John Boehner and Mike Pence. But bigger than any internal disagreements or any criticism about a lack of details is the fact that yesterday's GOP non-announcement moved the attention away from the Obama-vs.-congressional Democrat storyline to the GOP's lack of a budget. In fact, after yesterday, the White House and congressional Democrats can agree on one thing: The GOP -- at least until next week -- is the "Party of No." What's more, it puts more pressure on Ryan to truly put out a comprehensive budget alternative; Also, this episode could end up creating a rift in the GOP over how to combat the Obama White House. After all, Senate Republicans wanted nothing to do with an alternative, and now Mitch McConnell, et al are either laughing at their House GOP colleagues, furious at them, or both.

*** And where's the money? We've suggested that the economic downturn could affect political fundraising, and today's Washington Post has numbers to back up that assumption. "In January and February 2005, the six national party committees collected a total of almost $49 million in individual contributions, according to an analysis of FEC records," the Post writes. "In the first two months of this year, those same committees collected $30.7 million, a drop of nearly 40 percent."

*** The magic circle: Speaking of political contributions, one of us on TODAY followed up on the recent reporting that several members of Congress who have been critical of the federal government's bailout of U.S. companies have received campaign contributions from these very firms just in the last six weeks, in the midst of the congressional venom directed toward the bailouts. Campaign-finance-reform advocate Fred Wertheimer says the government's been bailing out banks and other major "too-big-to-fail" firms -- as these same companies continue to use their PACs to make contributions. "It all adds up to kind of a magic circle involving the government, TARP recipients, members of Congress, and campaign contributions."  The reality, of course, is that these contributions, individually, aren't a lot of money. But many members of Congress (including Speaker Pelosi and Financial Services Chair Barney Frank) have decided against taking any of the money. The optics of this for both the banks and for the members of Congress is bad, and only feeds the credibility problems both entities have with the American public.

*** More tough news for Gillibrand? New York liberals have criticized Sen. Kristen Gillibrand over her past views on guns and immigration. And now they might have another beef  -- her past attorney work for Phillip Morris, according to the New York Times. "Now in the Senate seat formerly held by Hillary Rodham Clinton, Ms. Gillibrand plays down her work as a lawyer representing Philip Morris, saying she was a junior associate with little control over the cases she was handed and limited involvement in defending the tobacco maker. But a review of thousands of documents and interviews with dozens of lawyers and industry experts indicate that Ms. Gillibrand was involved in some of the most sensitive matters related to the defense of the tobacco giant as it confronted pivotal legal battles beginning in the mid-1990s."

*** Obama makes an appearance in NY-20 -- sort of: Turning to Gillibrand's old congressional seat, the DNC has announced that it's airing a new TV ad that notes President Obama's endorsement of Scott Murphy (D) in the NY-20 special election. "In the worst recession in a generation," the ad goes, "upstate New Yorkers deserve someone with the right skills to represent them in Washington… In Congress, he'll work with President Obama to spur investment and create jobs right here at home." As Roll Call puts it, the DNC's ad is the "strongest attempt yet to link Obama with Murphy."

*** Man of Steele? As we've previously noted, Tuesday's special election in NY-20 contains plenty of good storylines. The race has turned into a battle over Obama's stimulus (Murphy supports it, while GOPer Jim Tedisco opposes it). It has become a barometer of the Republican Party's health in the post-Bush era (a loss would be devastating for the Republicans in this GOP-leaning district). And here's a third storyline: The contest has become a test for embattled RNC Chairman Michael Steele, given that he has made it a personal crusade of sorts. The RNC says it has transferred $200,000 to help Tedisco, and Steele has campaigned for him. What's more, Steele had said that a win in the race "will send a powerful signal to the rest of the country and especially those folks in the elite media who think they know so much more than the rest of the us." But what happens if Republicans lose this toss-up contest? As one GOP strategist told First Read, "Part of being an effective party leader is winning races we can win or should win. And this is a race we very much should win." (Click here for more.)

*** If it's Sunday… : Be sure to watch "Meet the Press" this Sunday, which will have Treasury Secretary Tim Geithner in his first live Sunday morning interview, as well as John McCain.

Countdown to NY-20 special: 4 days
Countdown to Obama's 100th day: 33 days 
Countdown to NJ GOP primary: 67 days
Countdown to VA Dem primary: 74 days
Countdown to Election Day 2009: 221 days
Countdown to Election Day 2010: 585 days

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The AP: "Obama plans to dispatch thousands more military and civilian trainers to Afghanistan by the fall on top of the 17,000 combat troops he has already ordered, senior administration officials said Thursday. Obama's war strategy, which he will unveil today, includes no time line for withdrawal of troops. The war began more than seven years ago. The sources said Obama's goal is to stabilize Afghanistan and eliminate the terrorist havens that have taken root in Pakistan. They said the plan is built around benchmarks that will allow the President and Congress to check whether it is working."

The Washington Post says that the strategy isn't only about Afghanistan; it's also about Pakistan. "In outlining his plan after a two-month review that began the week of his inauguration, Obama will describe it as a sharp break with what officials called a directionless and under-resourced conflict inherited from the Bush administration. Far from al-Qaeda being vanquished and the threat to the United States diminished, the official said, 'seven and a half years after 9/11, al-Qaeda's core leadership has moved from Kandahar, in Afghanistan, to a location unknown in Pakistan . . . where we know they're plotting new attacks" against this country and its allies.'" 

"Obama plans to announce a "simple, clear, concise goal -- to disrupt, dismantle and eventually destroy al-Qaeda in Pakistan," said the official, one of three authorized to anonymously discuss the strategy. The president will describe his plan in a White House speech to a group of selected military, diplomatic and development officials and nongovernmental aid groups."

Bloomberg: "Obama also would support legislation to triple economic aid to Pakistan to about $1.5 billion a year in exchange for that country cracking down on Taliban and terrorists hiding out along border… The goal is to weaken and ultimately destroy al-Qaeda's havens and sanctuaries in Pakistan and prevent the terrorist group from returning across the border to Afghanistan, the officials said."

The New York Times on the benchmarks for Afghanistan: "Although the administration is still developing the specific benchmarks for Afghanistan and Pakistan, officials said they would be the most explicit demands ever presented to the governments in Kabul and Islamabad. In effect, Mr. Obama would be insisting that two fractured countries plagued by ancient tribal rivalries and modern geopolitical hostility find ways to work together and transform their societies. American officials have repeatedly said that Afghanistan has to make more progress in fighting corruption, curbing the drug trade and sharing power with the regions, while they have insisted that Pakistan do more to cut ties between parts of its government and the Taliban."

More: "Setting benchmarks for Pakistan could be particularly difficult. For years, the United States has simply paid bills submitted by the Pakistani government for counterterrorism operations, even during truces when its military was not involved in counterterrorism. Pakistan has resisted linking its aid to specific performance criteria and officials acknowledged that developing those criteria could be problematic."

The Boston Globe: "Obama's decision to send additional US troops has drawn praise from many in Congress, who worried that the mission there suffered from neglect since 2003, as troops and resources flowed to Iraq, though some are wary. Last year, with 155 US military deaths in Afghanistan, was the bloodiest for US forces since the war began in 2001."

"President Obama is expected to provide additional money to General Motors and Chrysler, but will tie that aid to strict conditions on their restructuring," The Hill writes. "Two industry sources predicted that additional aid to GM and Chrysler would come with conditions the administration would try to portray as 'tough love.'"

"In his continuing non-traditional media blitz, President Obama used a popular Spanish-language music awards show tonight to reach out to Hispanics," the Boston Globe reports. "'Buenas noches. I want to thank the millions of you who voted for tonight's winners, and I also want to thank all of you who voted in that other election back in November -- even if it wasn't for me,' he said in a pre-recorded message that aired during Univision's live coverage of the 'Premio Lo Nuestro' Latin music awards from Miami's BankUnited Center."

The Senate Budget Committee yesterday passed a budget resolution along party lines, 13-10. The Hill: "Compared to the president's proposal, Conrad's (D-N.D.) includes less non-defense discretionary spending and fewer details over how to overhaul the healthcare system and curb global warming. But it does tackle Obama's top priorities of healthcare, energy, education and deficit reduction."

Regarding that GOP "budget" yesterday… Republicans' "19-page proposal included few details. Instead, it promised Republican themes of curbing spending, creating jobs, cutting taxes and controlling debt."
 
White House Press Secretary Robert Gibbs "ridiculed the GOP proposal for being brief and containing a 'picture of a windmill' instead of numbers. He also used a string of one-liners at yesterday's briefing to knock it down: "It took me several minutes to read it" and "I think the 'Party of No' has become the party of no new ideas."
 
Boehner spokeswoman Antonia Ferrier responded this way: "I'm glad Mr. Gibbs mentioned windmills. The administration must be tilting at windmills thinking their bloated budget puts our nation on a path to fiscal sanity. No amount of pithy language can hide the fact that the nonpartisan Congressional Budget Office found that their budget costs $2.3 trillion more than the administration thought."
 
"The Senate approved a major national-service bill Thursday that triples the AmeriCorps program to 250,000 participants and designates Sept. 11 as a 'National Day of Service and Remembrance.'"

HHS nominee Kathleen Sebelius will get her first of two Senate confirmation hearings, beginning Thursday.

MINNESOTA: Per the Star Tribune, "The former finance chief of a Texas company controlled by Nasser Kazeminy, a close friend of former Sen. Norm Coleman, said in a deposition last week that Kazeminy ordered $100,000 in fees be paid to a Minneapolis insurance agency where Coleman's wife was employed. B.J. Thomas, who was chief financial officer of Deep Marine Technology Inc., said that $75,000 of that sum was paid to Hays Companies even though he saw no evidence of Deep Marine receiving any consulting services from Hays."

The article also notes this: "In the deposition, Thomas recounted a March 2007 telephone conversation in which Kazeminy purportedly lamented the amount of money Coleman was paid as a senator. According to the transcript, Thomas was asked, 'In that conversation that you had with Mr. Kazeminy, did he tell you, quote, United States senators don't make sh&%, close quote? Or words to that effect?' Thomas answered: 'Yes, sir.''"

The DSCC says it's going to donate that $100,000 in Madoff contributions, after it resisted doing so earlier. 
 
CONNECTICUT: Chris Dodd leads Rob Simmons in a potential 2010 Senate match-up 45%-40%, per a new Siena poll. In a Quinnipiac poll earlier this month, Dodd had trailed Simmons by a point. The poll also reveals voters are largely split on Dodd's favorability (47% positive, 40% negative). Simmons is largely unknown, but most that did have an opinion expressed a positive one. (By the way, the poll also reveals that 54% view Sen. Joe Lieberman negatively, while only 40% viewed him favorably.) *** CORRECTION *** That Connecticut poll mentioned above is a Research 2000 poll, not a Siena survey. 
 
NEW YORK: Murphy and Tedisco faced off in their final debate yesterday. "'I think he is better for the dodge ball team, he's a pretty dodger on particular issue,' said Jim Tedisco. 'I guess that how they do things in Albany, what I want to do is solve the problem,' said Scott Murphy."

"It didn't take long. It the last time Republican Jim Tedisco and Democrat Scott Murphy meet face to face and the last time to trade barbs. 'Either he knew what was in the that bill, he knew those AIG bonuses were in there. There's nobody else to blame,' said Tedisco. 'You can't have it both ways. You can't say that it is pork and then say it is important money we need to get here, and you are fighting to get those dollars here. If it is all pork, you should be against it,' said Murphy."

"This might be a local election but it you won't hear them talking about pot holes on Route 9. It's all about the nation's faltering economy. It's a packed ball room listening at the in Latham Holiday Inn Express heard Murphy continue his solid support of the stimulus."

"The Democratic National Committee will begin airing a 30-second TV ad on Murphy's behalf in the Albany media market Friday. The ad, which will run through Monday, is the national Democratic Party's strongest attempt yet to link Obama with Murphy in the March 31 special election against state Assembly Minority Leader James Tedisco (R). But Obama does not speak in the ad. His image appears briefly next to Murphy early in the spot." 
 
And: "The Justice Department announced Thursday that the special election in New York's 20th district will go ahead as planned next Tuesday -- but that absentee ballots from military personnel stationed overseas must be counted through April 13."

From NBC's Athena Jones

In the first-ever online town hall at the White House, President Obama today discussed the economy, health-care reform, education, clean energy, help for small businesses, and other issues all in an effort to sell his $3.6 trillion budget to the American people.

The event -- much of which cable stations carried live, and which the White House says drew more than 67,000 viewers online -- consisted of the president answering the most popular questions submitted in written and video form and several from a live audience assembled in the East Room. Some 92,933 people submitted 104,082 questions online, and cast 3.6 million votes to select which ones should be answered, according to www.whitehouse.gov.

Obama's responses yielded no news, and the town hall felt at times like a university lecture. But there were two interesting moments. At one point, the president acknowledged a popular question about marijuana that he felt he needed to address.

"I have to say that there was one question that was voted on that ranked fairly high, and that was whether legalizing marijuana would improve the economy and job creation," he said to laughter. "And I don't know what this says about the online audience, but I just want -- I don't want people to think that -- this was a fairly popular question. We want to make sure that it was answered. The answer is, no, I don't think that is a good strategy to grow our economy."

Later, in response to a question about health-care reform, Obama spoke about a bias he had toward nurses and shared a story about his youngest daughter that long-time Obama watchers had never heard before.

"I'm biased toward nurses," he said. "I just like nurses. When Michelle and I went in and Malia was being born, the OB/GYN was a close friend of ours, and so was much more attentive than the usual OB/GYN might be. But the fact is, we only saw her for like 15 minutes. The rest of the time, it was nurses who were doing everything. When Sasha, our little precious pea -- she got meningitis, when she was three months old -- very dangerous. The doctors did a terrific job. But, frankly, it was the nurses that were there with us when she had to get a spinal tap, and all sorts of things that were just bringing me to tears."

Obama said the event -- moderated by Dr. Jared Bernstein, a top economic adviser to Vice President Biden -- was an experiment. During the press briefing later in the day, White House press secretary Robert Gibbs said Obama planned to do it again, but could not say when.

From NBC's Mark Murray
Yesterday, House Republicans made a pretty big deal about unveiling their budget alternative.

In fact, we received this email from a House GOP spokeswoman, "Given the President's comments [Tuesday] night that, 'we haven't seen a budget out of [Republicans],' we wanted to make sure to make you all aware that we are introducing our Republican Budget Alternative tomorrow."

And then what happens today? House Republicans release a 19-page document that contains no hard spending numbers or deficit projections. Per the AP, "One of the few hard bits of information is a promise to simplify the tax code and cut income tax rates to 10 percent for people making $100,000 or less down. They also promise to cut domestic spending below current levels but don't say whether they are exempting Social Security. It's impossible to determine the projected deficit based on their offering."

The House GOP leaders say they'll unveil more details next week. "We were always planning on putting out an overall blueprint, which we did today," House Minority Leader Boehner's office emails First Read. "The numbers will come next week with a multi-hundred page piece of legislation that Paul Ryan is currently drafting."

Not surprisingly, the Democratic National Committee pounced on the GOP's budget -- or lack thereof. "After 27 days, the best House Republicans could come up with is a 19-page pamphlet that does not include a single real budget proposal or estimate," said DNC spokesman Hari Sevugan. "While there had been talk that House Republicans were overriding their Senate counterparts to offer a budget alternative, it's clear after this announcement that neither of them have anything to offer but criticism."

From NBC's Mark Murray and Domenico Montanaro
Here's our piece on MSNBC.com about Tuesday's special election in New York...

When it comes to political races, 2008 will certainly go down as a year to remember.

It featured more than 50 individual Democratic presidential primary contests; it produced dozens of competitive Senate and House races (one of which is still undecided); and it concluded with a general election between Barack Obama and John McCain that captivated America.

Now, just four months later, the first truly competitive contest of 2009 is already upon us. On Tuesday, in upstate New York, Democrat Scott Murphy faces off against Republican Jim Tedisco in the special election to fill the seat in the 20th Congressional District vacated by Kirsten Gillibrand, D-N.Y., who was appointed to replace Hillary Clinton in the U.S. Senate.

While political analysts usually caution not to read too much into special elections, this race seems to take up where 2008 left off. It has turned into a battle over President Obama's economic stimulus. It also has become the first real test for embattled Republican National Committee Chairman Michael Steele.

And, looking forward to next year's midterms, Republicans have touted it as an early barometer of their political health in the post-Bush era — especially since it takes place in a region, the Northeast, where the GOP has found little recent success.

Click here for the rest of the story.

From NBC's Mark Murray
Obama's Organizing for America is the latest group to air a TV ad touting the president's budget. The ad is running on national and DC cable (read: a relatively small buy).

[Youtube:KtE4YX7_GVk]

From Chuck Todd, Mark Murray, and Domenico Montanaro
*** Budget battle wages on: Despite their differences over the budget (middle-class tax cuts, health-care spending, additional money for Wall Street's rescue), Obama's meeting yesterday with Senate Democrats was a big love fest. And here's what happened: They punted all the tough decisions for down the road -- which is what White House wants. Team Obama wants the tough debates getting less attention. Meanwhile, it looks like House Republicans have accepted the president's dare. "There's an interesting reason why some of these [GOP critics] haven't put out their own budget," the president said at Tuesday's press conference. "I mean, we haven't seen an alternative budget out of them."

Video: President Barack Obama tried to rally Democrats on his massive $3.6 trillion budget on Capitol Hill Wednesday. NBC's Savannah Guthrie reports.

And now, House GOPers will unveil their own budget at 11:45 am ET today. It will be interesting to see if the GOP budget contains gimmicks (not counting Iraq war costs, including Alternative Minimum Tax revenues) that mask the true size of the deficit. And it will be especially interesting to see if Senate Republicans embrace the House GOP alternative. Senate Republicans have suggested they want nothing to do with an alternative. 

*** We pruned the hedge (funds) of many small villages: After what most consider a rough start in his first two months on the job, Treasury Secretary Tim Geithner has been taking on a more and more visible role this week. On Monday, he unveiled the administration's toxic-assets plan (to a favorable reception on Wall Street).

On Tuesday, he and Fed Chairman Ben Bernanke testified before Capitol Hill on AIG oversight. And today, Geithner's back on the Hill -- this time unveiling the Obama administration's plan to subject hedge funds and other exotic financial instruments (like derivatives) to more government oversight. Per CNBC's Mary Thompson, senior administration officials say the plan addresses systemic risk; regulatory gaps and holes within the system; consumer and investor protection; and international cooperation among regulators. The focus of today's testimony, however, will be on systemic risk, with details about the three other parts of the plan to be unveiled over the next two to three weeks.

*** Now that would be some meeting: The Geithner reforms, in fact, might be the most important long-term issue the administration is dealing with today. It was the deregulation decisions of the 1980s-90s that played a role in today's crisis. Some day, the key economic players of the '80s and '90s will get in one room and start hashing out their decisions. Can't we get Phil Gramm, Jim Johnson, Alan Greenspan, Bob Rubin, Larry Summers, Chris Cox, Hank Greenberg, Tom Bliley, etc.? We're leaving a number of people out, but you get the point. How do we know where were going if we don't know how we got here? One thing we've learned: There wasn't one reason; there were a slew of them. Of course, to get all of these folks in one room, someone would need to have subpoena authority and hold hearings. Hmmm, maybe a special committee or commission?

*** Town Hall 2.0: President Obama has hit the road to sell his economic agenda. He's appeared on Leno and "60 Minutes." And now the president hits … the Internet. At 11:30 am ET, he answers questions in an online town hall. So far, per the White House, 76,000 people have submitted almost 84,000 questions for the president.

*** Hillary dips her toes back into politics? Yesterday, Planned Parenthood announced that it would be honoring Secretary of State Clinton at a gala on Friday in Houston. While it's hardly surprising that she supports Planned Parenthood and abortion rights, this seems to be a bit more political than your usual State Department event, no? And speaking of politics, check out Hillary's comments about the assault weapons ban. She basically, well, endorsed it. "I think these assault weapons, these military style weapons don't belong on anyone's street," she told NBC's Andrea Mitchell. That isn't something that rural Democrats want to hear... And we're guessing something the president would not be caught saying in public, or would he? What say you, Mr. LaPierre?

*** You are a radio star…: Sticking with politics, Politico's Martin reports that Vice President Biden has cut a radio ad for Scott Murphy (D) in the NY-20 special congressional race that takes place on Tuesday. This ad comes after President Obama released an email to supporters in Upstate New York asking them to back the Democratic candidate. "While Obama is unlikely to appear in New York on Murphy's behalf," Politico writes, "Democrats familiar with strategy considerations say the national committee is mulling over spending significantly more money on the race. Biden's radio ad is a major first step, though it's uncertain whether he'll trek up to the district, and first lady Michelle Obama may play a role."

*** Steele in the news: And just when we thought we hadn't heard from Michael Steele in a while, the RNC chairman gave an interview yesterday to CNN, in which he said he might be open to running for president someday -- if that's "where God wants me to be." Steele: "God has a way of revealing stuff to you, and making it real for you, through others. And if that's part of the plan, it'll be the plan… [If I run] it'll be because that's where God wants me to be at that time." Per the Huffington Post, Steele also told CNN that his dust-up with (and later apology to) Rush Limbaugh was planned and "strategic." Said Steele: "So if I do something, there's a reason for it... It may look like a mistake, a gaffe. There is a rationale, there is a logic behind it." More: "It helps me understand my position on the chess board. It helps me understand, where, you know, the enemy camp is and where those who are inside the tent are… It's all strategic." OK…

Countdown to NY-20 special: 5 days
Countdown to Obama's 100th day: 34 days 
Countdown to NJ GOP primary: 68 days
Countdown to VA Dem primary: 75 days
Countdown to Election Day 2009: 222 days
Countdown to Election Day 2010: 586 days

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Per the New York Times, Treasury Secretary Tim Geithner today will detail a "wide-ranging plan to overhaul financial regulation by subjecting hedge funds and traders of exotic financial instruments, now among the biggest and most freewheeling players on Wall Street, to potentially strict new government supervision… The plan, which would require Congressional approval, would give the government vast new powers over 'systemically important' banks and other financial institutions that are so big that their collapse would jeopardize the economy as a whole."

More: "The government would have the power to peer into the inner workings of companies that currently escape most federal supervision -- insurance companies like the American International Group, multibillion-dollar hedge funds like the Citadel Group and private equity firms like the Carlyle Group or Kohlberg, Kravis & Roberts."

The Wall Street Journal: "The move represents an early salvo in what will likely be a long debate about how to overhaul the rules governing markets, an effort officials say is designed to help restore confidence in the U.S. financial system. It comes just days before Mr. Geithner and President Barack Obama travel to London" for the G-20. 

The Washington Post adds, "In coming months, the administration plans to detail its strategy in three other areas: protecting consumers, eliminating flaws in existing regulations and enhancing international coordination." 

The AP previews Obama's online town hall today, which will take place from the White House East Room -- where he held the prime-time news conference on Tuesday night -- and will include "an in-person audience of about 100 people, including teachers, nurses, small-business owners and community leaders." 
 
"Call it Round Two of the news conference," the AP's Elliott writes. By 7 a.m. Thursday, the White House Web site had already logged more than 77,000 questions." The administration is using the tactic as a way to bypass traditional media. "Now in power, he is employing the same online network and style to speak -- unfiltered -- with Americans. The president already has taken that tactic on the road, spending two days on the West Coast last week at town hall-style meetings and appearing on Jay Leno's late-night talk show. It offered easier questions and a chance to get his message to the widest possible audience."

The fundraiser-in-chief… "Last night, Obama headlined two sold-out events in Washington, which were expected to bring in about $3 million for the DNC, which is struggling to keep financial pace with its Republican counterpart despite coming off a successful election in which Democrats won the White House and expanded their power in Congress."

Tony Bennett sang at the fundraiser. He lauded Michelle Obama and "dedicated a song to the 'AIG guys' -- the lyrics of which included 'kiss the sweet good life goodbye.'"

"In candid comments aimed at reassuring a sensitive neighbor, Secretary of State Hillary Rodham Clinton accepted Wednesday that the United States shares blame for Mexico's drug violence, and promised more equipment and support to help the country's war against traffickers," the Los Angeles Times reports. "Clinton said the U.S. has a duty to help since it is a major consumer of illicit drugs and a key supplier of weapons smuggled to cartel hit men."

And the Notre Dame backlash continues: "As of early Wednesday morning, more than 117,000 people have signed a petition to Father John Jenkins, Notre Dame's president, lambasting the decision to invite Obama to the May 17 event."

Obama went to Capitol Hill yesterday to meet with Senate Democrats, and he got this headline from the AP: "Democrats unify around Obama budget." But: "Even so, both the House and Senate versions lack specifics for any of the administration's signature proposals. And Democrats decided to cut spending -- and exploding deficits -- below levels envisioned in the plan Obama presented less than a month ago."

The New York Times: "Just before midnight, the House Budget Committee voted, 24 to 15 along party lines, to approve its spending plan, sending it to the full House for consideration next week. While both the House and Senate plans protect the president's top priorities, neither would extend a middle-class tax cut championed by Mr. Obama beyond 2010 unless a source of revenue to pay for it is identified. And though Mr. Obama laid out specific plans to raise $634 billion over 10 years for a down payment on national health care reform, lawmakers provided only a framework for the White House and Congress to move forward, provided that the health initiative does not raise the debt." 

The Wall Street Journal looks at more budget differences between the Obama administration and Democratic Congress. "Democratic leaders in both chambers are pushing packages that call for narrower deficits and less spending than proposed by the White House… Significantly, both the House and Senate decided to abandon a White House request for additional money for the Wall Street rescue. The two chambers also don't intend to invoke special legislative powers -- known as 'reconciliation' -- that would allow climate-change legislation to avoid a filibuster in the Senate."

"Still up in the air is whether legislation designed to expand access to health care, another major Obama administration priority, will receive those filibuster-proof protections. The House budget does provide such protection, and sets a Sept. 29 deadline for committees to act on a bill. The Senate budget, however, is silent on the issue." 

The Times' Zeleny makes this point: The divisions between the Obama White House and the Democratic Congress "are no greater than those that existed within the Republican Party when it was in power, and at this point they do not threaten Mr. Obama's ability to win the main elements of what he is seeking in his budget. But they bring to life a paradox of political success: As a party expands its ideological and geographic reach, as the Democrats have in the last two elections, it becomes harder to hold together, forcing its leaders to spend time papering over internal differences even as they confront a smaller but more unified opposition." 

The Hill profiles the interesting transformation of Judd Gregg "from cabinet to chief fiscal critic."

MINNESOTA: "Minnesota's U.S. Senate race set a record Wednesday for delay. No election for statewide office in Minnesota has dragged on so long after the autumn vote without a winner being seated," the Star Tribune writes. "The old record was set by the 1962 governor's election between DFLer Karl Rolvaag and incumbent Republican Elmer L. Andersen. When that contest ended the following spring, Andersen, who thought he had been reelected, lost by 91 votes. Rolvaag took the oath of office on March 25, 1963."

KENTUCKY: Republicans trying to force Jim Bunning out may be a dose of his own medicine, The Hill points out. Bunning lobbied for Anne Northup over Ernie Fletcher in 2007 for governor, because he wanted "to make sure that we nominate someone who can win in November." 
 
MICHIGAN: "Domino's Pizza Chairman and CEO David Brandon has been on national television for two weeks touting the 'Big Taste Bailout' in advertisements that are running during top-watched shows like 'American Idol' and the NCAA basketball tournament. The spot, which features both the Capitol and a faux-Wall Street executive, would be great public relations for any company that hasn't received TARP or bailout funding, but they're even better for Brandon. Reports say he's considering joining the already-crowded Republican field running for governor of Michigan." 
 
NEW YORK: Vice President Biden has cut a radio ad for Scott Murphy (D) in the special congressional election to replace Kirsten Gillibrand. "While Obama is unlikely to appear in New York on Murphy's behalf, Democrats familiar with strategy considerations say the national committee is mulling over spending significantly more money on the race. Biden's radio ad is a major first step, though it's uncertain whether he'll trek up to the district, and first lady Michelle Obama may play a role."

The DNC sent $10,000 for the homestretch, but the Republican National Committee has poured $200,000 into the race." A Democratic official tells First Read, "There are other bolts to come, yet to be fired. Stay tuned."    

Roll Call previews NY-20, which it says is headed for a "photo finish." 
 
Here's Stu Rothenberg's analysis of NY-20: "Is the special election in New York's 20th district a referendum on the national political environment -- on President Barack Obama, Washington, D.C.'s handling of the American International Group bonus scandal, the economic stimulus package and the national reputations of the two parties? Or, rather, is it about the skills and appeal of the two candidates? It's about both."

VIRGINIA: Let's get ready to rumble… Yesterday, the Deeds, McAuliffe, and Moran campaigns agreed to participate in five upcoming debates (on April 19, April 23, April 28, April 29, and May 19), as well as three additional forums.

From NBC's Pete Williams

President Obama has nominated one of the nation's prominent liberal academics to be the top lawyer at the State Department, another sign that the administration plans a big break with Bush administration policies in the war on terror.

Formally announced late yesterday but getting little attention today, the White House nominated Harold Koh, dean of the Yale Law School, to be the State Department's legal advisor. 

Koh has been one of the most outspoken opponents of Bush interrogation and detention policies. He told a 2005 Senate hearing that a Justice Department memo authorizing harsh interrogation methods was, "a stain on our law, a stain on our national reputation."

If confirmed, Koh would undoubtedly play a role in shaping the Obama administration's plans for closing down the US detention center at Guantanamo Bay. He has advocated putting terrorism detainees on trial in regular civilian U.S. courts, rather than before military tribunals. 

Deciding where to try such Guantanamo detainees as Khalid Sheikh Mohammed, the 9/11 mastermind, is one of the biggest challenges facing Obama in closing down the detention center.

Koh is a Korean-American native of Boston. He served in the Clinton
administration as Assistant Secretary of State for Human Rights and in the Reagan administration as a lawyer in the Justice Department's Office of Legal Counsel, where the most controversial Bush legal memos in the war on terror were written.

From NBC's Ken Strickland
The Administration and Senate Democrats are suggesting their budget outlines are in sync in addressing the White House's priorities. This morning, OMB Director Peter Orszag said, "The resolutions may not be identical twins to what the president submitted, but they are certainly brothers that look an awful lot alike." 

In fact, it's more like they have different fathers.

Here's why: While the Senate version is supportive of most of the president's programs, it stops well short endorsing the administration's tactics for enacting them into law.  For example, the Senate budget supports the broad idea of a health-care reserve fund, but it doesn't make "assumptions" about how it will be paid for or even how much it should be.

While the budget itself is a non-binding document, those written assumptions -- in the form of how much to spend on a specified programs -- give Congress clear guidance on how to move forward on things like spending, taxes, and even policy. But because Budget Committee Chairman Kent Conrad did NOT make concrete recommendations about cost -- which he could have done -- it could be argued that Conrad is rejecting the president's budget. That's half right.

On the other side of the argument, Budget Committee Democrats argue that their budget does not prohibit Congress from following through on the president's plans. At the end of the day, there can still be a $600 billion health-care reserve that's paid for, in part, by reducing itemized deductions. And there could still be a cap-and-trade program that pays for making Obama's tax cuts permanent.

Writing the budget this way does a couple of things. First, it keeps Democrats from backing themselves into a corner, because some of them don't support all of Obama's proposals; this way there's wiggle room for compromise later on other tough issues. And second, by not committing to hard numbers -- numbers in the billions -- Conrad's budget is more fiscally responsible and produces larger deficit reductions.

From NBC's Libby Leist

En route to Mexico City today, Secretary of State Hillary Clinton was forceful in sending the message to the Mexican government and people that the U.S. takes a "shared responsibility" for the drug violence and drug trafficking plaguing Mexico, and that past U.S. efforts have not worked.

Clinton said she was asked yesterday in an interview with a Mexican reporter to respond to criticism in Mexico that the U.S. is responsible for much of the Mexican crisis. She said she responded to the reporter, "I agree -- we are!"

Clinton added today, "How could anybody conclude differently? Our insatiable demand for illegal drugs fuels the drug trade! Our inability to prevent weapons from being illegally smuggled across the border to arm these criminals causes the deaths of police officers, soldiers, civilians. So, yes, I feel very strongly we have a co-responsibility. And part of what we're trying to do is not only acknowledge that but working with the Mexicans to create the very best possible responses."

Clinton was very critical of past U.S. efforts, saying the drug demand has not decreased and drugs are still coming in. "We have been pursuing these strategies for 30 years... It's been very difficult," she said.

"I think we've got to take a hard look at what we can do to cut off the supply and stop the bad guys. Because the amount of violence that's going on because of these drug wars in Mexico is horrific," she added. 

On guns and weapons, Clinton promised more U.S. help to stop the flow across the border. And she expressed dismay that the "bad guys" have military-style equipment, much of it coming from the U.S. "These criminals are out gunning the law enforcement officials," she said.

Clinton also emphasized that the Mexican drug issue is only a part of a broader relationship with Mexico that includes the economy, environmental issues, energy, health, immigration, and trade.

She described Mexico as "very important" and "very special" to the U.S. because of its border location and close cultural ties. She even noted that she and her husband, the former president, spent their honeymoon in Mexico.

Clinton also dismissed suggestions that the U.S.-Mexico relationship was in a crisis moment, given the drug issues and recent trade flap. "I think that our relationship, you know, is very strong and it faces challenges from time to time and that's why we have to work together to meet them," she said.

She expressed confidence that the Obama administration and Congress would work through a trucking dispute, and she said the U.S. was pressing very hard for the funding and delivery of equipment to help Mexico fight the drug cartels. (Her aides hint there may be news later today on delivery of U.S. helicopters to help the fight.)

In her meetings today with Mexican officials, her aides said, she will focus in part on judicial and police reforms in the Mexican government, and encourage the leadership to keep up the fight.  

Clinton had great praise for President Calderon's efforts over the past years calling it a "courageous fight"

On a lighter note... At the start of our briefing, Clinton kept being interrupted by a phone ringing in the plane cabin. Finally, a reporter picked it up and Clinton joked, "It's the 3:00 am call!"

As it turns out, the phone call was for one of Clinton's press aides.

From MSNBC.com's Tom Curry

Democratic Sen. Evan Bayh of Indiana is the target of a campaign by left-of-center Democratic groups like MoveOn.org, the Campaign for America's Future, and USAction, which accuse him and other centrist Democrats of what Bob Borosage, co-director of Campaign for America's Future, calls "standing in the way of the president's programs."

As previously mentioned, a new MoveOn radio ad, which will start running in Indiana Thursday, will urge listeners to "Call Senator Bayh at (202) 224-3121 and tell him to vote for the Obama budget. We've tried it Wall Street's way long enough. It's time Washington listens to the rest of us."

Video: Will Bayh's new caucus of eight moderate Democrats oppose White House policies?

Bayh was one of seven Democratic senators to sign a letter opposing the idea of using the budget reconciliation process, which requires only a simple majority vote rather than 60 votes, to pass a climate change cap-and-trade bill.

Bayh is running for a third term next year in a state that Obama barely carried last November, though Obama became the first Democratic presidential candidate to win it since 1964. Bayh has never lost in five statewide elections (as secretary of state, governor, and senator).

Borosage said Bayh was wrong to oppose the use of the reconciliation process to enact Obama's agenda. "Giving (reconciliation) away preemptively reduces your ability to negotiate," Borosage said in a conference call with reporters Tuesday. "We might end up with a set of policies that have majority support with the public, majority support in the House, majority support in the Senate, and yet fail" because some Democrats oppose using reconciliation as the vehicle to pass them.

Borosage also ripped Bayh as "simply wrong-headed" for calling for the federal government to restrain its spending. America is "on the verge of a depression," Borosage said. "We need the federal government to be doing more, not less."

On MSNBC's Morning Joe last week, Bayh unveiled a centrist group of 15 Democrat senators whom he described as "pragmatists" and "not ideologues" and "not strident partisans." Three of the 15 are up for election next year -- Bayh himself, Michael Bennet of Colorado, and Blanche Lincoln of Arkansas.

Bayh has a history of sparring with the left in his party. As chairman of the Democratic Leadership Council in 2003, he warned of then-rising presidential campaign of Howard Dean. "The Democratic Party is at risk of being taken over by the far left," he told DLC members in 2003. "We have an important choice to make: Do we want to vent, or do we want to govern?"

At the start of the 2008 campaign Bayh wasn't an Obama man. Bayh made a preliminary run for the 2008 Democratic presidential nomination himself, with a campaign-style trip to Iowa in May 2006 and he showed up to campaign in New Hampshire in December 2006 on the eve of Obama's spectacular debut speech.

A few days later, Bayh quit the race. He vigorously backed Hillary Clinton over Obama for the nomination, helping her defeat Obama (narrowly) in the Indiana primary.

Asked what recourse they have against Democrats such as Bayh who may oppose part of Obama's agenda, Borosage said "I don't think we want to make that assumption yet. We assume that if you're from Colorado or from Indiana, where the president won handily, and you hear from your constituents, you'll get with the program ... rather than standing in the way."

William McNary, the president of USAction, argued that Obama carried Indiana -- and therefore Bayh should advance Obama's agenda. (But one might compare Obama's winning margin in Indiana, one percentage point, to Bayh's winning margin in 2004, 25 percentage points.)