"Congressional Republicans are debating how much they should work with President Barack Obama and Democrats," The Hill writes. "GOP lawmakers in both chambers told The Hill they sense new leverage on healthcare reform and job creation in the wake of the Massachusetts special election. Some fear that if the party resists engaging the president outright, it would suffer a public backlash. But while those interviewed expressed a desire to share their ideas with Obama, starting this week when he visits the House Republican retreat in Baltimore, some said they do not expect Democratic leaders and their interest groups to accept many of their ideas."

"Sen. Jim DeMint (R-S.C.) said Wednesday that President Barack Obama's administration is 'trying to divide' Senate Republicans by selectively calling a few of them to lobby them on legislative issues. DeMint, a one-time friend of Obama's when the president was a senator, said White House Chief of Staff Rahm Emanuel has been seeking out GOP senators to press them on healthcare reform and other topics."

"Republican National Committee Chairman Michael S. Steele said Wednesday that he opposes a controversial 'purity' resolution that would keep party money from candidates deemed to be too moderate, all but ensuring the defeat of a proposal that divided GOP leaders as they opened their four-day winter meeting here Wednesday."

NEW YORK: It just keeps getting nastier between Kirsten Gillibrand and Harold Ford. Gillibrand took a shot at Ford on Twitter before the State of the Union. "Looking forward to the [State of the Union] tonight," she Tweeted. "If HF were here, he would probably be sitting on the Republican side."

PENNSYLVANIA: Pat Toomey (R) has opened a 45-31 lead over Sen. Arlen Specter (D) in Pennsylvania in likely voters, according to a Franklin and Marshall poll.

From NBC's Mark Murray
For a man who's given plenty of big speeches, President Obama's State of the Union tonight was certainly ambitious and multi-layered -- even paradoxical. He tried to appeal to independents (deficit reduction, tough talk on lobbyists and special interests), but also struck a populist tone (singling out Wall Street and the banks). He tried to reach across party lines (agreeing to GOP ideas on trade, energy, and taxes), but also reminded Americans about the economy he inherited. And he maintained that jobs would be his No. 1 priority of 2010, but also said he wasn't giving up on health care ("Let's get it done").

The line cable TV will probably replay tomorrow: "But we still need to govern. To Democrats, I would remind you that we still have the largest majority in decades, and the people expect us to solve some problems, not run for the hills. And if the Republican leadership is going to insist that sixty votes in the Senate are required to do any business at all in this town, then the responsibility to govern is now yours as well."

His line about change also was striking: "I campaigned on the promise of change – change we can believe in, the slogan went. And right now, I know there are many Americans who aren't sure if they still believe we can change – or at least, that I can deliver it. But remember this – I never suggested that change would be easy, or that I can do it alone. Democracy in a nation of three hundred million people can be noisy and messy and complicated. And when you try to do big things and make big changes, it stirs passions and controversy. That's just how it is. Those of us in public office can respond to this reality by playing it safe and avoid telling hard truths. We can do what's necessary to keep our poll numbers high, and get through the next election instead of doing what's best for the next generation."

Other takeaways:
-- Obama's first applause line didn't come until the 12th paragraph of his speech ("I have never been more hopeful"), and that's a departure from past SOTU's I've watched
-- He didn't discuss health care until halfway through the speech
-- He took a shot at the Supreme Court, which was a pretty awkward moment with them in attendance
-- He called for repealing Don't Ask, Don't Tell
-- Republicans groaned when he talked about global warming, and when he said that the budget freezes wouldn't go into effect until next year

A final word about Bob McDonnell's GOP response: It wasn't Bobby Jindal, but it was certainly a bit jarring to have a man who's been in office for 11 days acting like a mini-president, and getting showered with praise from an audience only of supporters.

From NBC's Pete Williams
A law enforcement official says the four men arrested for attempting to tamper with the phones in the New Orleans office of Sen. Mary Landrieu (D) were not trying to intercept or wiretap the calls.

Instead, the official says, the men, led by conservative videomaker James O'Keefe, wanted to see how her local office staff would respond if the phones were inoperative. They were apparently motivated, the official says, by criticism that when Sen. Landrieu became a big player in the health care debate, people in Louisiana were having a hard time getting through on the phones to register their views. 

That is, the official says, what led the four men to pull this stunt -- to see how the local staffers would react if the phones went out. Would the staff just laugh it off, or would they express great concern that local folks couldn't get through?

From NBC's Mark Murray
And here are the excerpts of Virginia Gov. Bob McDonnell's response to the State of the Union. McDonnell will say this about jobs:

Good government policy should spur economic growth, and strengthen the private sector's ability to create new jobs. We must enact policies that promote entrepreneurship and innovation, so America can better compete with the world. What government should not do is pile on more taxation, regulation, and litigation that kill jobs and hurt the middle class.

About spending:

The amount of this debt is on pace to double in five years, and triple in ten. The federal debt is already over $100,000 per household. This is simply unsustainable. The President's partial freeze on discretionary spending is a laudable step, but a small one. The circumstances of our time demand that we reconsider and restore the proper, limited role of government at every level.  

And about health care:

All Americans agree, we need a health care system that is affordable, accessible, and high quality. But most Americans do not want to turn over the best medical care system in the world to the federal government.

From NBC's Mark Murray
According to excerpts the White House has released, President Obama will use his State of the Union address to call for Democrats and Republicans to work together, and he will express his optimism about America's future:

We face big and difficult challenges.  And what the American people hope – what they deserve – is for all of us, Democrats and Republicans, to work through our differences; to overcome the numbing weight of our politics.  For while the people who sent us here have different backgrounds and different stories and different beliefs, the anxieties they face are the same.  The aspirations they hold are shared.  A job that pays the bill.  A chance to get ahead.  Most of all, the ability to give their children a better life. 

You know what else they share?  They share a stubborn resilience in the face of adversity.  After one of the most difficult years in our history, they remain busy building cars and teaching kids; starting businesses and going back to school.  They are coaching little league and helping their neighbors.  As one woman wrote to me, "We are strained but hopeful, struggling but encouraged." 

It is because of this spirit – this great decency and great strength – that I have never been more hopeful about America's future than I am tonight.  Despite our hardships, our union is strong.  We do not give up.  We do not quit.  We don't allow fear or division to break our spirit.  In this new decade, it's time the American people get a government that matches their decency; that embodies their strength.   And tonight, I'd like to talk about how together, we can deliver on that promise.

Obama also will stress that he won't walk away from health care, despite the fact that Democrats no longer have a filibuster-proof majority in the Senate.

By the time I'm finished speaking tonight, more Americans will have lost their health insurance.  Millions will lose it this year.  Our deficit will grow.  Premiums will go up.  Co-pays will go up.  Patients will be denied the care they need.  Small business owners will continue to drop coverage altogether.  I will not walk away from these Americans.  And neither should the people in this chamber.   

From NBC's Domenico Montanaro
James O'Keefe, the conservative activist arrested yesterday for allegedly trying to wire tap phones in Sen. Mary Landrieu's office in Louisiana, had been a Republican darling.

So much so that 31 Republicans sponsored legislation (HR 809) in October "honoring the fact-finding reporting done by Hannah Giles and James O'Keefe III in their investigation in the fraudulent and illegal practices and misuse of taxpayer dollars by the Association of Community Organization for Reform Now (ACORN)."

In Arkansas, Democratic operatives are already using this against Rep. John Boozman, considering a Senate challenge to Blanche Lincoln. 

O'Keefe and Giles went "undercover" and dressed as a pimp and prostitute to record and implicate ACORN members. Their videos led to Congress cutting off funding for the group.

The resolution goes so far as to label them "investigative journalists" -- despite the serious ethical issues raised by their tactics, which would concern any serious journalist.

The list of sponsors is below, from the Library of Congress. The actual resolution is here. And the text of the legislation is copied after the jump.

Rep Akin, W. Todd [MO-2] - 11/19/2009
Rep Bartlett, Roscoe G. [MD-6] - 11/19/2009
Rep Barton, Joe [TX-6] - 11/19/2009
Rep Bishop, Rob [UT-1] - 11/19/2009
Rep Bonner, Jo [AL-1] - 11/19/2009
Rep Boozman, John [AR-3] - 11/19/2009
Rep Broun, Paul C. [GA-10] - 10/13/2009
Rep Brown, Henry E., Jr. [SC-1] - 10/13/2009
Rep Campbell, John [CA-48] - 11/19/2009
Rep Carter, John R. [TX-31] - 11/19/2009
Rep Coble, Howard [NC-6] - 11/19/2009
Rep Cole, Tom [OK-4] - 11/19/2009
Rep Conaway, K. Michael [TX-11] - 11/19/2009
Rep Culberson, John Abney [TX-7] - 11/19/2009
Rep Fallin, Mary [OK-5] - 11/19/2009
Rep Franks, Trent [AZ-2] - 11/19/2009
Rep Gohmert, Louie [TX-1] - 11/19/2009
Rep Granger, Kay [TX-12] - 11/19/2009
Rep Hall, Ralph M. [TX-4] - 11/19/2009
Rep Jordan, Jim [OH-4] - 11/19/2009
Rep King, Steve [IA-5] - 11/19/2009
Rep Kline, John [MN-2] - 11/19/2009
Rep Lamborn, Doug [CO-5] - 11/19/2009
Rep Luetkemeyer, Blaine [MO-9] - 11/19/2009
Rep Lungren, Daniel E. [CA-3] - 11/19/2009
Rep Marchant, Kenny [TX-24] - 11/19/2009
Rep Pitts, Joseph R. [PA-16] - 11/19/2009
Rep Posey, Bill [FL-15] - 11/19/2009
Rep Roe, David P. [TN-1] - 11/19/2009
Rep Schmidt, Jean [OH-2] - 11/19/2009
Rep Shadegg, John B. [AZ-3] - 11/19/2009

Here's the text of the bill:

HRES 809 IH
 
111th CONGRESS
 
1st Session
 
H. RES. 809
 
Honoring the fact-finding reporting done by Hannah Giles and James O'Keefe III in their investigation in the fraudulent and illegal practices and misuse of taxpayer dollars by the Association of Community Organization for Reform Now (ACORN).
 
IN THE HOUSE OF REPRESENTATIVES
 
October 7, 2009
 
Mr. OLSON submitted the following resolution; which was referred to the Committee on Oversight and Government Reform
 
RESOLUTION
 
Honoring the fact-finding reporting done by Hannah Giles and James O'Keefe III in their investigation in the fraudulent and illegal practices and misuse of taxpayer dollars by the Association of Community Organization for Reform Now (ACORN).
 
Whereas Hannah Giles and James O'Keefe III filmed investigatory videos uncovering the fraudulent and illegal practices of the Association of Community Organization for Reform Now (ACORN);
 
Whereas the House of Representatives voted to completely defund ACORN on September 17, 2009;
 
Whereas these videos resulted in the potential annual savings of millions of taxpayer dollars to organizations that contract with ACORN;
 
Whereas Hannah Giles and James O'Keefe III have displayed exemplary actions as government watchdogs and young journalists uncovering wasteful government spending; and
 
Whereas Hannah Giles and James O'Keefe III are owed a debt of gratitude by the people of the United States: Now, therefore, be it
 
Resolved, That the House of Representatives--
 
(1) honors Hannah Giles and James O'Keefe III for their work as investigative journalists;
 
(2) commends Hannah Giles and James O'Keefe III for bringing to light the fraudulent behavior of the Association of Community Organization for Reform Now (ACORN) and helping save millions of taxpayer dollars that otherwise would have funded ACORN; and
 
(3) respectfully requests the Clerk of the House to transmit an enrolled copy of this resolution to Hannah Giles and James O'Keefe III.

From NBC's Ali Weinberg 
When it comes to the State of the Union, liberal and conservative bloggers and writers seem to agree: in terms of delivery, Obama has a clear goal: demonstrate his administration's commitment to getting people back to work. But there is a split on how to translate his speech into action once Obama leaves the Congressional chamber.

The Weekly Standard's Matthew Continetti on what he predicts the message of President's State of the Union Address contain, and his low expectations of it: "I expect Obama to focus heavily on the economy while denouncing the 'special interests' that stand between the American people and the 'change' they voted for in November 2008…When Obama said health care stood at the precipice, he wasn't kidding. What stopped the momentum wasn't backroom deals. It was public opposition."

Continetti adds that the Obama administration should anticipate more upsets in strong Democratic districts if it doesn't heed the "public opposition" to health care reform: "If the White House still can't figure that out, we can expect one, two, many more Massachusettses [misspelling intentional] in November."

Red State's Matthew Hurtt also suggests that Obama should use his prime time address to articulate Democrats' commitment to the issues most important to Americans, and that his failure to do so will spell Democratic losses in the midterms: "Tonight's State of the Union Address might allow President Obama to regroup and refocus his message on job creation and stimulating the economy. If he doesn't make headway soon, it could spell certain doom for Congressional Democrats."

Blogging at the liberal Washington Monthly, Steve Benen pushes back on the idea that Obama's relatively low approval ratings could drag down many Congressional Democrats running for re-election. Citing our most recent NBC/WSJ poll numbers, which show that most respondents blamed either Congressional Democrats or Republican (41% and 48%, respectively) for the problems in Washington, versus 27% who blame President Obama, Benen comments: "Dems' success is inextricably tied to Obama's standing…The more they argue amongst themselves, or delay (or deliberately kill) key parts of the party's agenda, the more they drag Obama's support down."

Writing at center-left magazine The New Republic's blog, Jonathan Cohn also suggests the results of the Massachusetts special election indicate the voter sentiment that President Obama must address in his speech. "Whatever the true meaning of the Massachusetts election -- and you can count me among those who think it's been wildly over-interpreted -- there's no question that the public has become frustrated with the Obama presidency," Cohn writes. But rather than back away from his ambitious agenda, he should restate the goals that originally applealed to voters enough for them to elect him President: "No, Obama can't ignore the voter anger or pretend Massachusetts didn't happen. He needs to promise action on the economy -- and a commitment to cleaning up government. But he doesn't have to abandon his agenda, either. The people elected him on a platform of 'change,' he can say. And change is what he still intends to give them."

From NBC's Domenico Montanaro
Don't give up the fight, Mr. President. That's the message from the labor community ahead of tonight's State of the Union address.

SEIU Secretary-Treasurer Anna Burger, in a phone interview with First Read, stressed that she wants President Obama tonight not to shirk from a progressive agenda, to call out Republicans (which she called "the party of nope") and advocated for using reconciliation to pass health care.

She also expects the president to speak "very strongly" about what can be done for working families and to be tough on banks.

The sentiment is indicative of how liberals feel after the Massachusetts election. They point out that Democrats still have a 59-41 majority in the Senate -- the second largest in 30 years -- and that there's a reason for that majority. Labor unions play a major role in helping Democrats get elected -- with campaign ads, and activists on the ground.

"Jobs," Burger said, "is my favorite four-letter word in the English language."

Burger expressed urgency on health care.

"We have to get health-care reform done," she said, adding that Congress is "really close."

She said Obama should "shake up the Senate" and "make them understand that 51 is a majority."

Reconciliation would require that every item in the Senate bill be tied to the budget. It would also temporary -- as the Bush tax cuts were -- and each item would be subject to the approval of the Senate parliamentarian. But those considerations do not make Burger believe the Senate shouldn't go through with it.

"The lack of action is much more concerning," she said. "We cannot move forward if we don't act. ... It is a crime that we haven't solved this problem."

As far as whether or not she thinks the House should go first and go back to the Senate or vice versa, she said, "I don't care what we do as long as we get it done. … I don't care if we do a rain dance."

This, despite the Massachusetts result. She stressed that the Massachusetts result was not a vote against health care, as Massachusetts already has health care, though she acknowledged that voters "were worried it would somehow cost them more money." But the overarching issue, she said, was the economy. "They voted for change," she said, "They were worried about jobs."

She cited Oregon voting yesterday for tax hikes on the wealthy and corporations as well as a sign of voters voting for change.

From NBC's David Gregory
As I gear up for tonight's coverage of the State of the Union address -- I'll join Brian Williams for the speech at 9:00 pm ET. -- here's my preview of what the stakes are for the president from TODAY this AM. More analysis from Morning Joe. And here are some things I'm reading this morning.

I have been invited to join a group of journalists for lunch with the president. I will be curious to know how Obama intends to account for the difficulty of his first year and the message voters sent in Massachusetts.

The other question is health care. An adviser I spoke to last night insisted that, while health care is a priority, they want to get a jobs bill through Congress first. It says something about the public's priorities. Here is what our new NBC/Wall Street Journal poll shows about the mood of the country.

Finally, what about bipartisanship? Look for the president to call out Republicans who have been "rooting for failure," as one White House insider says. He will likely call on them to get off the sidelines. What will he offer that they can support? Isn't it also interesting that the GOP has chosen a moderate governor to give the Republican response -- not a tea party activist? Is Bob McDonnell the model for the GOP of the future?

For more, check out David Gregory's blog.

From NBC's Shawna Thomas
No event is safe from the politics of the State of the Union, not even one whose point was to honor Special Olympics athletes and gather support for the Eunice Kennedy Shriver Act.

This morning Speaker Nancy Pelosi held a photo opportunity with Special Olympics athletes, Best Buddies participants, Timothy and Anthony Shriver, Joe Jonas (cue girlish screams here) and the health-care debate.

After hearing the stories of one decorated Special Olympics athlete and a Best Buddy participant, Pelosi gave Timothy Shriver, the Chairman & CEO of Special Olympics International and Eunice Kennedy Shriver's son an opportunity to speak. 

Shriver began by pointing out that many Special Olympics athletes don't have private health insurance.

"We're here with a message of inspiration, all the things that are possible," he said, "but also with your support and the support of a bipartisan community here on the Hill with a strong message that these movements, Special Olympics and Best Buddies, are about challenging the nation to do better. And about reminding the nation about unfinished business and opening the doors to full and equal access whether it's on the playing field or the doctor's office or the work place. "

One reporter threw out an "unfinished business" question at the end of the photo opportunity. The reporter asked Pelosi if it was possible that there would be no health-care bill. 

"I don't see that as a possibility," Pelosi responded. "But I think that you've seen a very eloquent presentation about the difference in opportunity that is there for people who have access to health care."

She continued, "Put it this way, the present system is unsustainable. We can no longer afford it. It's about the character of our country as Sen. Kennedy has said. We will make every effort to have a health care bill. But we will make progress whatever it is. One way or another we will go forward with that. "

Joe Jonas did not weigh in on the health-care debate.

With Obama set to deliver his first State of the Union, the American public is angry at Washington… But they blame Dems and GOPers in Congress more than the president… Republicans maintain their enthusiasm edge, but the midterm cake isn't baked just yet… The seven Republicans who were FOR the debt commission before the voted AGAINST it… And a populist revolt in Oregon?

From Chuck Todd, Mark Murray, Domenico Montanaro, and Ali Weinberg
*** Fed up: NBC/WSJ co-pollster Peter Hart (D) gives this advice to members of Congress who will be attending tonight's State of the Union: Don't stand up and clap (or conversely yell, "You lie!"), because the public is fed up with the politics as usual in Washington. According to our new poll, which was released on the eve of tonight's speech, only 28% believe the federal government is "working well" or even works "okay," versus 70% who say government isn't working and needs major reform. By comparison, in December of 2000 -- during the height of the disputed Bush-Gore presidential recount -- 55% said the government WAS working. In addition, a whopping 93% believe there's too much partisan fighting; 84% think the special interests have too much influence over legislation; nearly three-quarters say that not enough has been done to regulate Wall Street and the banking industry; and an equal 61% complain that both Democrats and Republicans in Congress aren't willing to compromise. And 58% believe the country is headed on the wrong track, the highest level of Obama's presidency.

*** Blaming Congress more than Obama: It's important to note that the public isn't necessarily taking out its frustrations on President Obama. Just 27% say they blame him for not being able to find solutions to the country's problems. By contrast, 48% blame Republicans in Congress and 41% blame congressional Democrats. In fact, Obama's numbers are virtually unchanged from last week's poll. His approval rating inched up two points to 50%, while the number believing his health care plan is a good idea declined two points to 31%. And only 39% are confident Obama has the right goals, down five points (this has to be a number that is a major concern of the White House and one they hope is addressed with tonight's SOTU). "This data set reminds us that the Scott Brown election has been a huge even in Washington, D.C.," said NBC/WSJ co-pollster Bill McInturff (R). "But around the country, I think this polling would suggest that it had modest effect."

*** The midterm cake isn't baked ... yet: Looking ahead to the November midterms, our NBC/WSJ poll shows that 44% of registered voters prefer a Dem-controlled Congress, versus 42% who want a GOP-controlled one. Last week's survey showed a 41%-41% tie on this question. But Republicans continue to enjoy a significant enthusiasm advantage. Voters who are most interested in the midterms prefer a Republican-controlled Congress by eight points, 49%-41%. And those who say they blame BOTH Democrats and Republicans side with GOP on the generic ballot by a 2-to-1 margin. But the poll also shows that the midterm cake isn't baked just yet, although the ingredients certainly are there. Low-interest voters prefer Democrats on the generic ballot by 10 points, 47%-37% -- so if they turn out, Democrats have a chance to minimize their midterm losses. What's more, the survey provides some evidence that Obama might be more of an asset than a liability in November: 37% say their vote will be a signal of support for the president, while 27% say it will be a signal of opposition; 35% said it won't signal anything about Obama. By comparison, just days before the '06 midterms, Bush was a -15 net negative on that question. This may explain why Republicans aren't yet running ads that take the Democratic candidate for Congress/Senate and morph them into Obama (a la Bill Clinton in 1994).

*** SOTU details and programming: President Obama delivers his first State of the Union address tonight at 9:00 pm ET. Brand-new Virginia Gov. Bob McDonnell will deliver the Republican response afterward. Pre-game analysis begins at 9:00 am ET with MSNBC's "Daily Rundown" with Robert Gibbs, Sens. Barbara Boxer (D) and Orrin Hatch (R). MSNBC's "Andrea Mitchell Reports" will have White House adviser Valerie Jarrett and Sens. Bernie Sanders (I) and Arlen Specter (D). And MSNBC's "Hardball" will interview David Axelrod (beginning at the 5:00 pm ET hour) and Democratic Sen. Claire McCaskill (at the 7:00 pm hour).

*** I was for the commission before I voted against it: Yesterday, we singled out John McCain for once CO-SPONSORING -- and then yesterday voting AGAINST -- the bipartisan proposal to create an independent commission to reduce the debt. But as it turns out, there were five other Republicans who did this (Mike Crapo, Kay Bailey Hutchison, Sam Brownback, John Ensign, and Jim Inhofe), and Robert Bennett, who remained a co-sponsor, also voted against it. What do most of these folks have in common? Answer: Crapo, Brownback, Bennett, Hutchison, and McCain are running for office this year and (in many cases) are facing competitive primaries. Indeed, NBC's Ken Strickland and msnbc.com's Carrie Dann note that of the 12 Republicans in the Senate facing re-election this year, nine of them voted AGAINST the commission. Those nine: Bennett, Burr, Coburn, Crapo, DeMint, Grassley, McCain, Shelby, and Thune. And then add Brownback and Hutchison, who are running for governor… By comparison, only four out of the 14 Democratic senators running for re-election voted against it: Inouye, Mikulski, Murray, and Specter. (Specter, of course, is facing a primary…)

*** Bernanke cloture vote set for Thursday: Strick also reports that, on Thursday, the Senate will take a cloture vote -- to break a filibuster -- on Ben Bernanke's confirmation. Sixty votes will be needed to advance the nomination to a final confirmation vote. It's unclear when the final vote would be, but Thursday's vote is significant.

*** A populist revolt brewing? And in Oregon yesterday, voters APPROVED two tax hikes -- one on those making more than $250,000; the other raising the state's corporate income tax. Liberal blogger Jonathan Singer argues that the results in Oregon, and also perhaps in Massachusetts, signal a populist revolt, not an anti-government one. Indeed, what happened yesterday in Oregon -- which has traditionally been an anti-tax state -- appears to be an opening for left-of-center populism. On this same note, note that in the current NBC/WSJ poll, 74% tell us Washington has NOT done enough to regulate Wall Street.

Countdown to IL primary: 6 days
Countdown to TX primary: 34 days
Countdown to Election Day 2010: 279 days

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Here's our take on the latest NBC/WSJ poll: "As President Barack Obama prepares to deliver his first State of the Union address Wednesday night, he will be speaking to an American public that's fed up with Congress, the country's two main political parties, and the federal government, according to a new NBC News/Wall Street Journal poll. Only 28 percent believe the federal government is 'working well' or even works 'okay,' versus seven in 10 who think it's 'unhealthy,' 'stagnant' or needs large reforms. By comparison, in December of 2000 -- during the height of the disputed Bush-Gore presidential election -- 55 percent said the government was working well or okay." 

Here's the Journal's: "Americans think the president has paid too much attention to health care and not enough to the economy. At the same time, the number of people who approve of the job Mr. Obama is doing on the economy has ticked up to 47%, five points higher than in the December survey. Only 27% of registered voters said their decision on whom to support in the November congressional elections would be 'a vote to send a signal of opposition' to the president."

Meanwhile, here are the previews of tonight's State of the Union. The New York Times: "When Mr. Obama presents his first State of the Union address on Wednesday evening, aides said he would accept responsibility, though not necessarily blame, for failing to deliver swiftly on some of the changes he promised a year ago. But he will not, aides said, accede to criticism that his priorities are out of step with the nation's." 

"The focus of the speech will be 'getting our economy moving again,' White House spokesman Robert Gibbs said. The president also will call for a three-year freeze on most domestic spending, with exemptions for defense, homeland security and foreign aid as well as Medicare and Social Security," USA Today says.  

"Facing a divided Congress and a dissatisfied nation, President Barack Obama will unveil a jobs-heavy agenda in his State of the Union address Wednesday, retooling his message more than his mission," AP's Feller writes. "His goal: Get the economy, the confidence of voters and his own presidency on surer footing." AP adds, that tonight's speech "has enormous stakes for Obama." Though as political analyst Charlie Cook said on Hardball yesterday, they rarely matter to a president's poll numbers historically.

The Washington Post adds that Obama will call for more education funding. "The proposal to raise federal education spending by as much as $4 billion in the next fiscal year was described by administration officials Tuesday night as the start of an effort to revamp the No Child Left Behind law enacted under President George W. Bush. Obama will highlight his school reform agenda Wednesday in the address." 

The Boston Globe: "The president's address, his first official State of the Union speech, is shaping up as a policy answer to the political wake-up call Obama and Democrats received with the election of Republican Scott Brown to fill the seat of the late Edward M. Kennedy."

And just in case… The AP checks in with Joe Wilson to see if there will be any outbursts. "Wilson said there won't be another outburst. But he says he's happy that voters in recent elections have signaled that they share his concerns about health care legislation."

"With no clear path forward on major health care legislation, Democratic leaders in Congress effectively slammed the brakes on President Obama's top domestic priority on Tuesday, saying they no longer felt pressure to move quickly on a health bill after eight months of setting deadlines and missing them," the New York Times reports. "Some Democrats said they did not expect any action on health care legislation until late February at the earliest. But the Democrats stand to lose momentum, and every day closer to the November election could reduce their chances of passing a far-reaching bill."

The AP has a similar story. "Democrats retreated yesterday from a quick push to pass President Obama's health care overhaul, lacking a workable strategy to salvage the legislation that has consumed Congress for more than a year," the AP says. Now, Harry Reid says, 'There is no rush.' His comments were made as two centrists said they would oppose the plan Democratic leaders were considering to reconcile differences between the House and Senate bills and put comprehensive legislation on Obama's desk."

Running in circles? "Centrist Democratic senators have circumvented party leadership to approach Maine GOP Sens. Olympia Snowe and Susan Collins about reviving healthcare talks. Democrats such as Sens. Blanche Lincoln (Ark.), Bill Nelson (Fla.) and Max Baucus (Mont.) have approached Snowe within the past week to discuss her potential support for various healthcare proposals."

Watch out for pitchforks… Hank Paulson and Tim Geithner testify on Capitol Hill today.

A local Hawaii TV station asked RNC Chairman Steele about criticisms of having the RNC Winter Meeting in Hawaii. 

"A lot of folks out there relax, we're working hard out here," Steele said, lei draped around his neck over a Hawaiian shirt. "This is not a vacation this is a working meeting this is our winter meeting, we're here to do the business of the party and we'll get it done." 
 
The Honolulu Advertiser takes a look at the RNC Winter Meeting as well: "The Republican National Committee opens its winter meeting today in Honolulu, a four-day strategy session that GOP activists from the across the country hope will position the party to make gains in the mid-term elections in November."

It also questions the RNC holding its conference in Hawaii: "Michael Steele, the RNC chairman, defended selecting Hawai'i as the site of the winter meeting after criticism from some Republicans that visuals of GOP activists on the beach in January would send the wrong message nationally." He said, "It's a chance to really kind of expose Hawai'i to the rest of America. I mean it's part of the growth and the fabric of this nation, and I think it's important for us as a party to be here," Steele told KHON on Monday. 

The New York Daily News obtained a copy of Edwards aide Andrew Young's book. The cover of the Daily News: "Baby, what a liar." It has all sorts of sordid "too much information" details, including that Rielle Hunter's nickname for Edwards was the seemingly romance novel-inspired "Love Lips."

Congress couldn't come up with the votes to form a commission to raise taxes yesterday, but in a surprising outcome, voters in usually anti-tax Oregon chose to raise taxes on high-income households and corporations. The stae voted 54%-46% yesterday to raise taxes on high-income households and corporations. Oregon's $10-minimum corporate tax hadn't changed since 1931. Expect Democratic lawmakers around the country to see this as validation that "tax the rich" may be palatable to voters in 2010. And that left-of-center populism can be just as potent as an anti-big government message.

FLORIDA: "Marco Rubio may be leading, but Charlie Crist has the cash to fight back. The Florida governor turned in a third-straight prodigious fundraising quarter between October and December, raising more than $2 million to bring his cash on hand to $7.5 million after just three quarters. The release of the numbers was timed to coincide with a Quinnipiac poll that showed Crist trailing Rubio 47-44 this morning," The Hill writes. 

Crist said he "will be with" President Obama on Thursday if he can "work it out logistically," the St. Petersburg Times reports. The President will visit the University of Tampa where he may announce an award of high-speed rail money for the state. 

MICHIGAN: "U.S. Rep. Bart Stupak said Tuesday he won't seek the Democratic nomination for Michigan governor this year and instead will run for re-election to Congress," the AP reports.  

NEVADA: "Majority Leader Harry Reid (D-Nev.) may be trailing in the polls against prospective Republican challengers, but he still enjoys a major financial advantage as the 2010 campaign season gets underway," CQ Politics says. "Former state Republican party chairwoman Sue Lowden emerged as the top fundraiser in Nevada Senate GOP primary in the fourth quarter of 2009, her first quarter in the race. But her $800,000 haul is a pittance compared with the $7.5 million Reid raised through the first three quarters of the year and the $8.7 million cash on hand he had at the end of September. Reid has yet to release his year-end totals."

NEW YORK: "It's getting personal," the New York Daily News writes of the back and forth between Sen. Kirsten Gillibrand and potential challenger Harold Ford. "A day after Harold Ford slammed New York's senators as 'parakeets' for always parroting the Democratic Party line, Sen. Kirsten Gillibrand accused the ex-Tennessee congressman of running an 'in-the-gutter' campaign. 'I think it is an insult to New York that he comes and just starts calling names for everyone he feels like attacking,' Gillibrand said of fellow Democrat Ford, who is weighing a primary bid against her. 'I wouldn't allow my 6-year old to engage in that kind of name-calling,' she said, calling the 'parakeet' squawk 'unacceptable' for an aspiring senator."

And the New York Post being the New York Post (it's comical, really) says Gillibrand "went ballistic" on Ford and the headline says, "Parakeet flips the bird." Here's what she said, per the Post: "I really don't know who Harold Ford thinks I am but I'm not gonna be pushed aside [by] his banker buddies," she told The Post in an unsolicited phone call. "This guy aspires to be a US senator? Him calling me names doesn't hurt me but it affects New York because it distracts from issues."

TEXAS: Gov. Rick Perry's camp announced he would not be visiting the editorial boards for any Texas newspaper before the March 2nd primary election, the El Paso Times' Texas Capitol blog reports. A Perry spokeswoman told the paper, ""The best use of the governor's time is to be talking directly to Texans as opposed to traveling across the state to different newspapers to sit in a conference room for hours at a time."

From NBC's Mark Murray
Here's our write-up of the brand-new NBC/WSJ poll:

WASHINGTON - As President Barack Obama prepares to deliver his first State of the Union address Wednesday night, he will be speaking to an American public that's fed up with Congress, the country's two main political parties, and the federal government, according to a new NBC News/Wall Street Journal poll.

Only 28 percent believe the federal government is "working well" or even works "okay," versus seven in 10 who think it's "unhealthy," "stagnant" or needs large reforms.

By comparison, in December of 2000 — during the height of the disputed Bush-Gore presidential election — 55 percent said the government was working well or okay.

What's more, a whopping 93 percent believe there's too much partisan infighting; 84 percent think the special interests have too much influence over legislation; nearly three-quarters say that not enough has been done to regulate Wall Street and the banking industry; and an equal 61 percent complain that both Democrats and Republicans in Congress aren't willing to compromise.

And the percentage who believe the country is headed in the wrong direction now stands at 58 percent, the highest level of Obama's presidency.

"The message is a big one," said Democratic pollster Peter D. Hart, who conducted this survey with Republican pollster Bill McInturff. "The message is, 'We hate what's going in Washington.'"

Click here for the rest of the story...

From NBC's Ken Strickland
Reaction to the president's proposal to have a three year freeze on discretionary spending received luke warm, wait-and-see, conditional support from Democratic and Republican Senators today.

The common theme was the plan is "a good place to start." But for some, it doesn't go far enough and for others it may go too far.

Senate Democrats were split.

"I think we've got to freeze spending, but why are we exempting probably one of the biggest open faucets we have in the government which is the defense department" asked health committee chairman Tom Harkin. He specifically pointed to waste within the department.

Democratic Sen. Russ Feingold is open to the idea, but thought more could be done to cut spending. "A much more serious thing would be to created a limited line item veto for the president for earmarks," he said. "That would create a real mechanism into the future to get at some of these things."

Other Democrats seems leery of reductions or cuts in popular federal programs and warned of doing too much in the midst of tough economic times. "I'm just concerned that in recessionary times you don't pull back government and what that means for job growth," said Senate Sherrod Brown.

Even Majority Leader Harry Reid withheld unconditional support. "We'll have to look at see what the president's talking about cutting," he said. "We have to make sure that we have money for education. We have to make sure we have money to take care of the -- our civil society, police, fire. We have all kinds of programs I'll look at very, very closely."

Republicans were open to the idea but suggested the president was merely working around the edges of the real problem.

Republican Leader Mitch McConnell welcomed any effort to reduce spending, but quickly pointed out that the administration's recent spending "binge" undermines his proposal.

"Freezing non-defense domestic discretionary spending would be a good idea," McConnell said at his weekly news conference. "However, if you put into the baseline the stimulus, TARP, and you account for inflation, it's not nearly as big a step as the American people are asking us to take."

Banking Committee Republican Robert Bennett was more to the point. "He's talking about one-third of budget and ignoring two-thirds of the budget that is growing inexorably," Bennett said. "If he's really serious about spending he needs to talk about entitlements."

"It's obvious as to why he's doing it," said Republican Jim Inhofe. "And I think the idea is smart: he's going to try to make people think that he is concerned about spending -- which he isn't."

From NBC's Domenico Montanaro
Remember the guy who posed as a pimp and took all those undercover videos of ACORN workers?

Well, the New Orleans Times-Picayune reports: "Alleging a plot to wiretap Democratic Sen. Mary Landrieu's office in the Hale Boggs Federal Building in downtown New Orleans, the FBI arrested four people Monday, including James O'Keefe, a conservative filmmaker whose undercover videos at ACORN field offices severely damaged the advocacy group's credibility."

Three others were arrested, and "all four were charged with entering federal property under false pretenses with the intent of committing a felony."

And it was dress-up time again: "FBI Special Agent Steven Rayes alleges that O'Keefe aided and abetted two others, Joseph Basel and Robert Flanagan, who dressed up as employees of a telephone company and attempted to interfere with the office's telephone system."

Not only that but the guy had been "hailed as a conservative hero" for his role in taking down ACORN before a speech to Libertarian Pelican Institute in New Orleans, the Times-Picayune reports.

AP notes that Landrieu had "been in the news recently because she negotiated an increase in Medicaid funds for her state before announcing her support for Senate health care legislation.

From NBC's Andrea Mitchell, Courtney Kube and Carroll Ann Mears
At a town hall with State Department employees marking her first anniversary as Secretary of State, Hillary Clinton opened by strongly rebutting international critics (including the French and British press) of the U.S. relief effort.

She also took a question from a Haitian-American senior foreign service officer who said he'd lost family there, had volunteered to go, took the shots and malaria pills and was still waiting to be sent. She told him, we'll get you to Haiti.

Before taking questions she said about Haiti:

• "The needs are overwhelming, we are trying to meet the humanitarian needs in this period while at the same time working with the haitian govt, the UN and other countries, organizations to plan for the long-term."
• "As is often the case some of the international press either misunderstood or deliberately misconstrued what was a civilian and military response both of them necessary in order to be able to deliver aid to the haitians that desperately needed it."
• "I deeply resent those who would attack our country, the generosity of our people and the leadership of our president when trying to respond to historically disastrous conditions after the earthquake."

At one point, a disgruntled employee complained that she hasn't had any support for her criticism, and Hillary joked, "I've had more criticism in my life than most countries."

That was greeted by laughter.

From NBC's Betsy Cline
The top GOP lawmaker, Sen. Mitch McConnell, sought to speak for all Americans on what the past year's message should be for the administration.

"The lesson of the last year should be crystal clear: Americans aren't
happy with the administration's approach," McConnell said on the Senate floor.

He did give the president and the administration credit for attempting to quell the economic crisis, but faulted them for "missing the mark" and increasing the country's debt.

"Americans waited patiently for the administration and Congress to implement policies that would create the conditions for creating jobs, grow businesses, and help struggling middle class families weather the recession," McConnell said. "Instead, they got policies that vastly increased government spending and put a crushing amount of debt onto the federal credit card."

McConnell also accused the White House of misreading the public's response in the recent elections.

"They seem to think that voters are frustrated at nothing in particular," he said, "that they're just angry in general. The proper response to these elections, the administration seems to think, is to retool its message, to make people believe that it's finding new ways to help the economy -- even as it continues to pursue the same exact policies as before."

From NBC's Domenico Montanaro
A recruiting push by Republicans after the Massachusetts election result and a robo-poll showing GOP Rep. Mike Pence leading Democratic incumbent Sen. Evan Bayh weren't enough to convince the Indiana Republican to run for Senate this year.

"Mr. Pence will make his decision based on what is in the best interest of his family, constituents and the country," Pence spokesman Matt Lloyd told First Read yesterday in an e-mail before Pence made his decision today in a letter to supporters. "He does not make decisions based on the latest polling data." 

Republicans always thought it was an outside chance that Pence would run anyway, but after Massachusetts it was worth a shot.

One reason they thought they could get him to run is beacause Pence is widely believed to have higher ambitions. He's traveled to Iowa this year already, but if he wants to be taken seriously as a presidential contender, observers believe he needs a higher platform. After all, no one from the U.S. House has been elected to the White House since James Garfield in 1880.

"I am staying for two reasons," Pence wrote in his letter. "First because I have been given the responsibility to shape the Republican comeback as a member of the House Republican Leadership and, second, because I believe Republicans will win back the majority in the House of Representatives in 2010."

He also cites his faith, the Bible and a marathon he and his wife ran.

Here's the full letter:

January 26, 2010
 
Open Letter to Friends and Supporters
 
As many of you are aware, I have been approached about running for the United States Senate in 2010. Karen and I have been humbled by the outpouring of support and encouragement which we received from across Indiana, especially since there are several capable and qualified candidates already seeking the Republican nomination.

After much prayer and deliberation, I have decided to remain in the House and to seek reelection to the 6th Congressional District in 2010.

I am staying for two reasons. First because I have been given the responsibility to shape the Republican comeback as a member of the House Republican Leadership and, second, because I believe Republicans will win back the majority in the House of Representatives in 2010.

One year ago I was unanimously elected chairman of the House Republican Conference, the third ranking position in House Republican leadership. I accepted that responsibility because I believed that if Republicans returned to their conservative roots, they could win back the confidence of the American people. And I see it happening every day.

As a Republican leader, I have the opportunity to shape the policy and strategy that will return a Republican majority to the Congress in 2010. So my duty is here, in the House, serving my constituents and my colleagues as we fight to restore a conservative majority to the Congress of the United States. I am not going to leave my post when the fate of the House hangs in the balance. My place is here, in that fight, with the brave men and women who will be winning that victory for the American people.

I also am staying because I believe we will win back the majority in the House of Representatives in 2010, and I am excited to be a part of it. While the opportunity to serve in the United States Senate is significant, I believe the best chance this nation has to restore fiscal discipline, common sense and common values to Washington, D.C., is for conservatives to retake the House in 2010. When we win back the House, we will make history and we will have the power to stop the big government plans of this administration and to steer our nation to a more secure, free and prosperous future.
 
Last fall, Karen and I completed our first full marathon. We finished the 26.2 miles in just under seven hours despite the rigors on this 50 year-old body and despite many opportunities to step off the track and call it a day. Our inspiration for the day came from a verse in the Bible that reads, "let us run with perseverance the race marked out for us."
 
I believe the race marked out for me in 2010 is in the House of Representatives. I believe that if we run that race with conviction and endurance, we can win back the Congress for the common sense and the common values of the American people, turn this tide of big government back and set the stage for a boundless American future.
 
Thanks to you all who prayed our little family through this difficult decision. I hope that God will someday permit me to perform some wider service to the people of Indiana and the country, but for now my focus must remain on finishing the job I was elected to do by my constituents and my Republican colleagues; representing conservative values in Congress and winning back the House of Representatives.

Obama to propose a freeze in non-security discretionary spending, which affects only a portion of the nation's $3.5 trillion budget… Senate expected to reject an independent commission to reduce the nation's debt… How John McCain no longer seems so bipartisan… House Dem leaders MIGHT be willing to pass Senate health-care bill if Senate makes changes (via reconciliation) first… Rubio now has the lead over Crist in Florida, while Obama's numbers are upside down in the Sunshine State… And could Democrats also lose Obama's old Senate seat?

From Chuck Todd, Mark Murray, Domenico Montanaro, and Ali Weinberg
*** Deep freeze? The latest leak before tomorrow night's State of the Union address is that President Obama will propose freezing non-security discretionary spending over the next three budget years (beginning Oct. 1). This "non-security" freeze means that it will NOT apply to the Defense, Veterans Affairs, Homeland Security, or State departments. In 2010, this non-security discretionary piece of the budget pie amounted to $447 billion. So the president's proposal is to keep this budget piece at the same level (not even adjusted for inflation) for the next three years. If enacted, the administration estimates it will save $250 billion over the next 10 years. Of course, this is just a small slice of the budget pie. As the Washington Post writes, it "would affect only about one-eighth of the nation's $3.5 trillion budget, the bulk of which is devoted to entitlement programs such as Social Security, Medicare and Medicaid, which are responsible for much of the future increase in spending." Even if it's mostly symbolic, the White House believes that the country is demanding more fiscal discipline after all of last year's spending to help revive the economy.

*** Epitomizing Washington's political paralysis: But just how hard is it to really cut into the nation's debt? Look no further than today's Senate vote to establish an independent debt commission, which would come up with bipartisan recommendations to reduce the debt. Today's vote isn't expected to get 60 votes because conservatives are worried that the commission's recommendations would include tax increases, while liberals are concerned that there would be cuts in entitlement spending. Well, yeah -- the only way to really reduce the debt (outside of another economic boom like we saw in the late '90s) is to both raise taxes and cut entitlement spending. That Democrats and Republicans can't come together on something like this only adds to the perception that Washington isn't working. 

*** Mr. Bipartisan? At 12:30 pm, John McCain teams up with Evan Bayh to hold a news conference on the budget deficit. Beyond this event, however, it's pretty remarkable that on the most bipartisan issue Congress has worked on lately -- the re-confirmation of Fed Chairman Ben Bernanke -- McCain has decided to sit it out. Yesterday, the man associated with the Gang of 14 effort on judges, bipartisan immigration reform, and McCain-Feingold said he was opposing Bernanke. Also, as the Washington Post's Dana Milbank notes, McCain withdrew his support on the independent debt commission that the Senate votes on today. Of course, there's one big reason why McCain hasn't been as bipartisan as he used to be: the primary challenge he's receiving from J.D. Hayworth. That's probably why he's opposing Bernanke, voting against the debt commission (due to the likelihood of raising taxes), issuing a fairly muted response (by McCain standards) on last week's Supreme Court ruling, and remaining relatively silent on immigration reform. By the way, Hayworth will appear on MSNBC's "Hardball" tonight.

*** Other SOTU odds and ends: In advance of tomorrow's State of the Union address, labor leaders Andy Stern and Anna Burger hold a dialogue this morning on the state of the American worker at the Center for American Progress. Also, House Majority Leader Steny Hoyer is delivering a speech at the National Press Club, where he will discuss the House's agenda for 2010. "So it is crucial for the Senate to work with the House to get a jobs bill to the President's desk as soon as possible," Hoyer is expected to say. "If Republicans continue to stand in the way of Americans going back to work, it is crucial to make them own their record." Finally, the Washington Post has a fantastic story profiling what has happened to the three honored guests of Obama's first address to Congress last year.

*** Returning to health care: Here's the latest news we've picked up on health care: The House leadership believes it can pass the Senate bill IF the changes are made by the Senate via reconciliation. MORE IMPORTANTLY, the House leaders want those changes made FIRST before they pass the Senate health care bill itself. The deadline: before the president's day recess.

*** Rubio takes the lead: In Florida, a new Quinnipiac poll shows Marco Rubio now leading Charlie Crist, 47%-44%, although that's within the margin of error. Back in June, Crist had a 31-point lead over Rubio in poll. And in October, Crist's lead was 15 points. (This begs the question: Outside of Mark Sanford and John Edwards, did any other American politician have a worse 2009 than Charlie Crist?) The survey also shows both Rubio and Crist beating Democrat Kendrick Meek in a hypothetical match up. What's more, the poll shows Obama with a 45%-49% approval/disapproval rating, which isn't good news for the White House in this important battleground state. And it just so happens, Obama will be in Florida this Thursday…

*** Losing Kennedy's seat, Biden's, and Obama's? A week from today, Illinois will hold the first primary of the 2010 midterm season, and it features competitive Dem and GOP contests for Senate and governor. And after Democrats lost Ted Kennedy's seat last week, and appear on their way to losing Joe Biden's, there's the distinct possibility that they might lose Barack Obama's old Senate seat, too. (Symbolically, if Republicans end up winning the president's Senate seat, the vice president's, Harry Reid's, and Ted Kennedy's seat, how is not seen as a symbolic repudiation of the Democratic Party leadership?) One reason is due to candidate recruitment. Six years ago, the Senate Democratic primary featured a strong field including wealthy Blair Hull, the Chicago pol Dan Hynes, and a state senator named Barack Obama. But this year, after the Obama White House failed to get their desired candidate Lisa Madigan, the field consists of State Treasurer Alexi Giannoulias, Chicago Urban League CEO Cheryle Jackson, and David Hoffman, and all of them have flaws -- Giannoulias has ties to Tony Rezko; Jackson was once Blago's spokeswoman, and Hoffman's name ID remains pretty low. A new Chicago Tribune poll shows Giannoulias leading the Dem field.

*** Lisa Madigan, where are you? A second difficulty is the overall political environment. (Did you know that the state's unemployment rate is 11.1%?) The winner of the Democratic primary will most likely face GOP Rep. Mark Kirk, who actually has a good shot of beating the Dem nominee in this blue state (but who must survive his own crowded primary first). Third, as we mentioned yesterday, Democrats really bungled their Senate appointments in late 2008/early 2009. If Blago had not appointed someone, or if Roland Burris had simply refused the appointment, Democrats could have had a stronger candidate -- a Lisa Madigan or perhaps even a Dan Hynes -- as their current senator… And speaking of Hynes, don't forget about Illinois' gubernatorial primary, where Hynes is challenging incumbent Gov. Pat Quinn. There's the real possibility that Hynes could defeat the incumbent.

*** More midterm news: Staying with the Democratic Senate primary in Illinois, both Hoffman and Giannoulias are engaged in a TV ad war… And in Arkansas, the Democratic Senatorial Campaign Committee is denying reports that it wants vulnerable Blanche Lincoln to retire.

Countdown to IL primary: 7 days
Countdown to TX primary: 35 days
Countdown to Election Day 2010: 280 days

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Per the New York Times, "President Obama will call for a three-year freeze in spending on many domestic programs, and for increases no greater than inflation after that, an initiative intended to signal his seriousness about cutting the budget deficit, administration officials said Monday. The officials said the proposal would be a major component both of Mr. Obama's State of the Union address on Wednesday and of the budget he will send to Congress on Monday for the fiscal year that begins in October."

"The spending freeze would apply to a relatively small portion of the federal budget, affecting... Some of those agencies could get increases, others would have to face cuts; such programs got an almost 10 percent increase this year. The federal budget total was $3.5 trillion. The three-year plan will be part of the budget Obama will submit Feb. 1, senior administration officials said, commenting on condition of anonymity to reveal private details."

More from the Washington Post: "Although the freeze would shave no more than $15 billion off next year's budget -- barely denting a deficit projected to exceed $1 trillion for the third year in a row -- White House officials said it could save significantly more during the next decade. They described the freeze as a critical component of a broader deficit-reduction campaign intended to restore confidence in Obama's ability to control the excesses of Washington and the most lavish aspirations of his own administration."

"Lobbyists and representatives for interest groups are engaging in last-minute conference calls and meetings with White House officials hoping to sway what President Barack Obama says to Congress and the nation during his State of the Union address Wednesday night," Roll Call reports. "While most K Streeters find themselves on the sidelines when it comes to influencing the annual presidential address, everyone downtown, at the very least, is working to keep their clients and member companies posted on the issues that Obama is likely to bring up."