From NBC's Chuck Todd and Domenico Montanaro
We mentioned in First Thoughts Sen. Susan Collins' criticism of how the Obama administration has handled the alleged, so-calledChristmas Day bomber, Abdulmutallab.

In light of NBC's Pete Williams' reporting on the information the administration has been getting out of questioning Abdulmutallab, Collins' office sent along an updated statement:

"I remain concerned that there was no consultation with intelligence officials before the Department of Justice unilaterally decided to treat Abdulmutallab as if he were an ordinary criminal. If Abdulmutallab is now talking in the context of plea negotiations, that is, of course, welcome, but it implies that the government is willing to grant him a measure of leniency for the information he is willing to provide. We will never know whether the quality and quantity of information might have been superior had he not been given a lawyer who is now guiding him on what to reveal and what not to disclose. The lack of coordination on the front end and the inexplicable, reflexive choice to use a law enforcement approach were dangerous decisions."

It's Giannoulias vs. Kirk for Obama's old Senate seat… Quinn leads by 7,000 in the Dem IL Gov race, while Brady has a 503-vote lead (!!!) on the GOP side… It wasn't a bad thing to be an establishment candidate in the statewide contests, but the same wasn't true in the House contests… Denny Hastert's son lost… Ex-GOP Sen. Dan Coats to challenge Evan Bayh… White House pushes back on security… And House and Senate play Alphonse and Gaston on health care.

From Chuck Todd, Mark Murray, Domenico Montanaro, and Ali Weinberg
*** What we learned: So what did we learn from the primary contests in Illinois last night? For starters, in the statewide races, it wasn't a bad thing to be the establishment candidate. State Treasurer Alexi Giannoulias (D) and Congressman Mark Kirk (R) won their respective Senate primaries, setting up a very competitive contest in November for Barack Obama's old Senate seat. We also learned that we don't have a winner in the gubernatorial races -- yet. On the Democratic side, sitting Gov. Pat Quinn leads challenger Dan Hynes by slightly more than 7,000 votes with 99% of precincts reporting. In the GOP contest, state Sen. Bill Brady leads fellow State Sen. Kirk Dillard by just 503 votes (!!!), with Andy McKenna and Jim Ryan closely behind. We also learned that the conservative/Tea Party candidates in the statewide contests didn't have much a bite. In the Senate GOP primary, Patrick Hughes got just 19% of the vote, while Adam Andrzejewski finished fifth in the GOP gubernatorial race. Finally, we learned that turnout was down, especially compared with the last time (2004) there was a wide-open Senate field. If you a build a primary in a February (in a non-presidential year), they won't come. It was the DEAD of winter.

*** On the House side: But if it wasn't harmful to be an establishment candidate in the statewide contests, that wasn't necessarily true on the House side. In IL-14, Ethan Hastert was unable to win his father's old congressional seat (following in the footsteps of Dick Armey's son). In IL-10 (Kirk's seat), the more conservative Republican Robert Dold beat the more moderate Elizabeth Coulson, setting up a competitive general election against Dan Seals (D), who will see if three times is finally the charm. And in IL-11, Adam Kinzinger won the GOP primary for the right to challenge Rep. Debbie Halvorson (D). By the way, for those keeping score on these things, it was another bad night for EMILY's List; it candidates in the Senate race (Cheryle Jackson) and IL-10 (Julie Hamos) both lost. Also on the House side -- but in Florida -- state Sen. Ted Deutch won the Democratic primary for Robert Wexler's (D) congressional seat. The general election there takes place April 13.

*** Grabbing Coats out of the political closet: Outside of Illinois (and Florida), the biggest political news last night came in Indiana, where we learned ex-GOP Sen. Dan Coats plans to challenge Democratic Sen. Evan Bayh. As Democrats have reminded us, Coats is far from a perfect GOP recruit -- he left the Senate in 1999 (fearful of facing the popular Bayh), and also has served as a lobbyist. But what Coats does is put yet another Senate seat in play for the Republicans. They now have eight legitimate pick-up opportunities, in ND, DE, NV, CO, AR, IL, PA, and IN. But to be able take back control of the Senate, Republicans now have to put AT LEAST two of these states in play: CA, CT, OR, WA, WI, and NY. Coats' entry also is going to frustrate the Obama White House. Make no mistake, Bayh is the front-runner in this contest, but if the White House thinks Bayh's recent statements have been problematic, just think what it's going to look like now that he has a serious challenger. In short, Coats' entry is at the least a legislative victory for Senate Republicans.

*** Administration pushes back: Yesterday, we really saw the Obama administration push back against the GOP critiques about 1) trying 9/11 suspected terrorists in civilian courts, and 2) that the alleged Christmas Day bomber stopped talking after he was read his Miranda rights. In fact, it was Maine Sen. Susan Collins – of all people – who delivered last weekend's blistering GOP radio address: "Abdulmutallab was questioned for less than one hour before the Justice Department advised him that he could remain silent and offered him an attorney at our expense. Once afforded the protection our Constitution guarantees American citizens, this foreign terrorist 'lawyered up' and stopped talking." But as NBC reported yesterday, citing officials close to the case, Abdulmutallab has begun talking again. And the methods used to get him to talk, according to the administration, was longstanding FBI practices -- in this case using Abdulmutallab's family. The administration argues that Abdulmutallab would have been less cooperative had he faced an interrogator in a military uniform. Of course, this won't end the debate; it just adds more nuance to something that it appears is never as black and white as some would like to believe.

*** Playing Alphonse and Gaston on health care: It likely won't provide the political theater that Friday's Q&A with House Republicans did, but President Obama addresses Senate Democrats at their meeting in DC at 10:00 am ET. And what is said about health care could be the most interesting news at the meeting. NBC's Ken Strickland reports that House Speaker Nancy Pelosi told bloggers yesterday that the Senate would have to pass a health-care bill first -- via reconciliation -- that addressed House Democrats concerns before the House would vote on a final health care bill. But a few house later, Senate Majority Leader Harry Reid insisted he didn't know how that could happen, procedurally. "We can't go first. I don't know a way procedurally we can start a reconciliation," Reid said to reporters as he left a meeting in Pelosi's office. "If somebody could figure it out and tell me, I'd be happy to take a look at it." Reid countered, Strick adds, that it was more likely the House would pass a reconciliation bill with its desired fixes first, and then send it to the Senate. "Yes, that seems like a strong possibility.

*** A matter of Anti-trust: Meanwhile, House Democratic leadership officials confirm to First Read that they are going ahead with a stand-alone vote next week to repeal the anti-trust exemption for health-insurance companies. A repeal was included in the House's health reform legislation, but they're going forward with a stand-alone measure, signaling the beginning of a larger effort to break up the bill and put Republicans on record on potentially politically popular measures. "They can side with their constituents or the insurance giants," one House Democratic aide said.

*** Another busy day on the Hill: It's another busy day on Capitol Hill. Defense Secretary Gates, Labor Secretary Solis, Transportation Secretary LaHood, Treasury Secretary Geithner, and OMB Director Orszag fan out to testify on the FY2011 budget. Also, HHS Secretary Sebelius goes before the Senate Finance Committee to talk about health care. And DNI Director Blair talks to the House Intelligence Committee.

*** A programming note: MSNBC's "Daily Rundown," which airs beginning at 9:00 am ET, has an interview with top White House domestic policy adviser Melody Barnes. And MSNBC's "Andrea Mitchell Reports" has GOP Sens. Susan Collins and Orrin Hatch.

Countdown to TX primary: 27 days
Countdown to Election Day 2010: 272 days

Click here to sign up for First Read emails. 
Text FIRST to 622639, to sign up for First Read alerts to your mobile phone.
Check us out on Facebook and also on Twitter.

In addition to his talk with Senate Democrats, "President Barack Obama is meeting with governors from coal-producing states, hoping to earn their support for a languishing energy bill and to bolster his image as a leader willing to work with Republicans as well as Democrats," the AP writes. "Obama planned to announce on Wednesday new steps to increase the role of biofuels in powering the nation and to release a report detailing how Washington could increase investments in green technologies, an administration official said. The president was also expected to discuss so-called clean coal technologies, said the official, who spoke ahead of the announcement only on condition of anonymity."

Also, "With the 2010 Vancouver Olympics drawing closer, Obama and Vice President Joe Biden will meet with Cabinet members to discuss crisis responses and other preparations for the Winter Games. Biden, along with his wife, Jill, and members of the president's Cabinet are heading to Vancouver next week to represent the United States at the opening ceremonies."

The Boston Globe front-pages Obama's New Hampshire event. "The setting was reminiscent of an Obama campaign event, with supporters jamming the auditorium, thrusting their cellphones in the air to take photos, and interrupting several times with applause. Some came to be inspired, but others said they just wanted reassurances they were being heard and legislative action would follow politicians' words… While Obama repeated his calls for bipartisanship, his message had a campaign edge and, at times, an accusatory undertone toward Republicans, who have succeeded in holding up health care overhaul, climate change legislation, and other items on Obama's wish list."

The scene outside: "Maybe it was the weather, or the hour, or the lack of parking. But just a few dozen demonstrators waited to greet President Obama along the rotary near Nashua High School North before his town hall yesterday -- a fraction of the hundreds who crowded outside before a similar event last summer in Portsmouth, N.H., when police were herding boisterous sign-wielders into two camps, pro and con. Yesterday, there was plenty of room for everyone, and that made for unlikely neighbors: A 'Don't You Dare Fundamentally Transform Our Great Country' right next to '47 Million Need Help'; a 'Hey GOP: Try Yes for a Change' a few paces from 'Joe Wilson was Right: You Lie and Lie and Lie.'"

The Washington Post frames Obama's NH visit as a way to reconnect with the middle class. "He is a rare president who comes from the middle class, yet people still perceive him as disconnected from it. As he arrived in Nashua, nearly two-thirds of Americans believed that his economic policies had hurt the country or made no difference at all; almost half thought he did not understand their problems. Obama has made it his goal in the past 10 days to convince them otherwise. In Nashua, he hoped to connect with the unemployed despite holding the country's most prestigious job; to disparage Washington politics despite being a product of them; to have a self-described "direct conversation with the folks of New Hampshire" even as bomb squads, Secret Service officers, political dignitaries and television cameras occupied every corner of the room."

The AP: "President Barack Obama's decision not to participate in an annual summit with European Union leaders is feeding doubts about whether Washington views Europe as a strong player on the international stage. The president's decision was announced days before Spanish Prime Minister Jose Luis Rodriguez Zapatero, who was to host the summit in Madrid, arrives Wednesday on a two-day visit to Washington. Zapatero, whose nation now holds the EU's rotating presidency, was not scheduled to meet with Obama but may have a chance to speak with him at Thursday's annual National Prayer Breakfast, where the Spanish prime minister was to give a Bible reading."

"As congressional Democrats mobilize to limit the impact of last month's Supreme Court decision gutting decades of campaign finance law, Senator John Kerry joined calls yesterday for states to go a step further by amending the Constitution," The Boston Globe writes. "Such an action, Kerry acknowledged, would be dramatic but he said it is necessary to restore restrictions on corporate influence in politics. 'We need a constitutional amendment to make it clear once and for all that corporations do not have the same free speech rights as individuals,' Kerry testified at a Senate hearing."

"Two Illinois Democrats were virtually tied early Wednesday in the race to decide who will defend the governor's office from a Republican Party eager to exploit political disarray in President Obama's home state come November," the AP says. "In the nation's first primary, voters selected the candidates who will fight for Obama's former Senate seat, but the governor's races were exceptionally tight on both sides. Though Gov. Pat Quinn declared victory in the Democratic race, challenger Dan Hynes vowed to fight until every vote was counted."

With razor-thin margins in the Democratic and Republican gubernatorial races (as well as county races and for state Comptroller), Illinois elections officials are preparing for the worst. "The razor thin margins could lead to unprecedented recounts for a state with no automatic provisions for them," NBC Chicago reports. "It's a tricky proposition. The provisions follow thusly. Election authorities first must count late-arriving absentee ballots, randomly check some of the results, inspect voting equipment and then declare official winners. That takes up to two weeks.

"Then a candidate can petition for a 'discovery recount.' A 'discovery recount' can be called for if a losing margin is within 5 percent of the winner. The losing candidate can petition the state board of elections, or the county clerks office for smaller races, to retabulate votes in up to 25 percent of its precincts of the candidate's choosing… If the discovery recount uncovers evidence of missed votes or disenfranchisement, the candidate can then opt to sue in circuit court for a full recount, a process Orr said can take months to complete. Filing for discovery recounts is March 1. If the discovery recount uncovers voting discrepancies, a candidate can then petition either the Circuit Court, for city and county elections, and the Supreme Court for statewide elections, to authorize a full recount. The petitioning candidate would have to pay for it, too."

It's Giannoulias vs. Kirk for Senate: "Illinois state Treasurer Alexi Giannoulias withstood some late drama and held on to win the Democratic primary for President Barack Obama's old Senate seat on Tuesday," The Hill writes. "The 33-year old former Obama basketball buddy led former Chicago Inspector General David Hoffman 39-34 with 86 percent of precincts reporting. Chicago Urban League President Cheryle Robinson Jackson was third with 20 percent."

The Hill also looks at the tough fight ahead for the Democrat: "Not all is well for Giannoulias, though, who faced plenty of questions this past week over his family's bank. It was reported a week ago that Broadway Bank needs federal and state help to avoid collapse. The bank has also made loans to some unsavory characters, including convicted political fixer Tony Rezko. It is expected to be a major issue in the general election, when more attention will be paid to the details of the situation and when Giannoulias's opponent will have more money to drive the issue home."

Washington Post: "[Rep. Mark] Kirk, a five-term congressman with a moderate record, cruised to victory over five rivals. Giannoulias -- at age 31 a relative political novice -- edged out former Chicago inspector general David Hoffman in a result that may have signaled fractures in the state Democratic Party heading into the general election… Gov. Pat Quinn (D) was fighting for his political life, trying to stave off an aggressive effort to unseat him by state Comptroller Dan Hynes at a time when voters' populist anger is turning against officeholders. Quinn led Hynes by about 5,200 votes (out of more than 850,000 cast)."

For full results, check out the Chicago Tribune's elections page.

The Hotline points out the good -- and bad -- news for Democrats in fourth-quarter fundraising reports, which showed even vulnerable incumbents like Blanche Lincoln (AR) Barbara Boxer (CA) and Harry Reid (NV) raking in the cash: "Despite the unfavorable climate, [Democratic] incumbents showed no signs of losing steam (though challengers were more of a mixed bag). The bad news: the fundraising took place pre-MA SEN and pre-health care reform meltdown." 

INDIANA: "Former Sen. Dan Coats (R-Ind.), who preceded Sen. Evan Bayh (D-Ind.), will challenge successor."

KENTUCKY: "Money is getting scarce in Kentucky, where three top candidates [each] turned in fourth quarter reports with less than $500,000 raised," The Hill reports. "Kentucky Secretary of State Trey Grayson's (R) $446,000 report would have been more disappointing, had it not been for the meager quarters eventually turned in by the two top Democrats in the race -- state Attorney General Jack Conway and Lt. Gov. Dan Mongiardo. Conway ($333,000) and Mongiardo ($225,000) both raised less than half of their third quarter totals." Grayson is being outspent by primary opponent Rand Paul, who raised $650,000 in the fourth quarter although Grayson has a slight cash-on-hand advantage, with $1.4 million to Paul's $1.3 million. 

NEVADA: Former state senator and GOP chairwoman Sue Lowden is up with her first campaign ad against Senator Harry Reid (D). Per Talking Points Memo, "the ad does not ever mention Reid, [but] instead focuses on Lowden herself, in order to introduce her to the electorate in her Republican primary against former UNLV basketball player Danny Tarkanian and former state Rep. Sharron Angle." 

VIRGINIA: "The NRCC apparently sent a release to Virginia Beach suggesting New Mexicans, rather than Virginians, have had quite about enough of freshman Rep. Glenn Nye (D-Va.)," The Hill reports. "It's not yet clear what Nye has done to offend voters in the Southwest." From the press release: "If New Mexico taxpayers thought they had seen the worst of Glenn Nye's fiscal recklessness, today's White House budget proposal makes it clear that the worst could be yet to come." 

From NBC's Ali Weinberg
Conservative bloggers seem resigned to the fact that their preferred candidate in the Republican gubernatorial race, Adam Andrzejewski, stands little chance of winning the GOP nomination tonight. Some are pushing back on Republican claims that Rep. Mark Kirk is too moderate, having voted in favor of House cap-and-trade legislation. Meanwhile, both sides have plenty to say about the differences between Republican candidates in the California governors' race --including the fact that Federal forces may become involved. And Democrats are still floating an idea -- shot down by Gov. Charlie Crist's campaign -- that the Florida governor might switch party affiliation to Independent to avoid a Republican primary against conservative darling Marco Rubio.

Conservatives have rallied around Andrzejewski, especially after he received the endorsement of former Polish president and Solidarity founder Lech Walesa and the title of  "the Scott Brown of his contest" from radio host Rush Limbaugh. NRO's Stephen Spruiell excerpts from a phone interview he conducted with the candidate, including an exchange where the interview stopped so Andrzejewski could greet supporters:  "'We were pulled over by a Chicago police officer who wanted to shake my hand,' he says sheepishly. I ask him if he's kidding. He says no, he's not, that this is the kind of attention he's been getting since the Walesa endorsement."

Spruiell also includes Andrzejewski's response to the question of why conservatives seem to be backing him over state GOP chair Andy McKenna: ""He calls himself the only outsider in the race. That's a disingenuous statement at best," Andrzejewski said.

Also blogging at NRO, Jim Geraghty makes a distinction between Kirk and DeDe Scozzafava, nominated by leaders in her district's party. "While some conservatives may end up grumbling that they've ended up with a pro-choice candidate who had to renounce his vote on cap and trade… Kirk gets the nomination, he'll have won it the old-fashioned way, by getting Republicans to vote for him."

Geraghty also expresses excitement over the state's Republican gubernatorial primary, noting that while Andrzejewski hasn't gotten much media attention, "I'm going to go out on a limb and guess that if you're a Polish-American in the Chicago area, you heard about it the moment Walesa entered the city limits." Geraghty gives his two cents on the race: "My readers have wildly different preferences; some love Andrzejewski, others dismiss him as "a child"; some prefer Dan Proft, others say they could live with Kirk Dillard. I wouldn't pretend to know each of these candidates inside and out, but none of them scream "general election poison", at least not so far. And particularly not in a year with the wind at the GOP's back (although we can count on President Obama to make an all-out effort in his home state). 

Right-wing blog Hot Air links to Cassy Fiano, a conservative blogger whose views on the Illinois Senate and governor races echo Geraghty's: "Some conservatives think Kirk is too liberal a Republican, but he seems to be similar to Scott Brown: a fiscal conservative and a social moderate. In these times, that should be good enough for us right now… The [gubernatorial] race is likely to be a toss-up for the Democrats, but what about for Republicans? The tea party candidate is clearly Adam Andrzejewski… Dillard is the most moderate of all the Republicans running, and ads are showing clips of him praising Obama. I'd like to believe that Andrzejewski will pull it out, but it still seems unlikely."

In the California gubernatorial race, Geraghty doesn't seem to enjoy the rather unconventional intra-party showdown between Republican candidates Meg Whitman and Steve Poizner. The backstory: Whitman's consultant and advisor, longtime Republican strategist Mike Murphy, wrote an email expressing hope that Poizner, one of Whitman's primary opponents, would leave the governor's race to avoid "spending $20 million beating the other in a primary." Poizner's reaction was to contact various state law enforcement bodies, including the Sacramento FBI, "asking them to investigate whether a crime had been committed."

Geraghty asks, "Really, guys? Really? Calling the FBI over an e-mail encouraging him to consider another run for another office? This isn't even remotely the most threatening comment in California politics in recent years. Back in 2003, during the recall election, California Democratic Party Spokesman Bob Mulholland said that 'Schwarzenegger is going to find out, that unlike a Hollywood movie set, the bullets coming at him in this campaign are going to be real bullets and he is going to have to respond to them.' Maybe this will rebound to Poizner's advantage, but I can't help but suspect that he just put up a big sign that says, 'if I'm this apoplectic about a Whitman adviser, just think of what Jerry Brown will do to me.'"

Geraghty later notes Whitman's sizeable lead over Poizner in a recent McLaughlin & Associates poll, 39% to 12%, making two observations: "With that many remaining undecided, obviously Poizner has room to grow, but the whole calling-in-the-FBI schtick doesn't seem to be the right move."

On the liberal side, the Huffington Post notes that Whitman's own poor campaign performance, PR-wise, may have compelled Poizner to stay in the race, believing he could catch up to her. The Post writes that Whitman came off as "cold, controlling, scripted" to a Sacramento focus group and that her press conferences, "few as they have been, have been disastrous," while "Poizner has regular free-flowing discussions of the troubled state's issues with reporters and others. And the Democratic favorite, Jerry Brown -- who according to the constantly polling Whitman is 10 points ahead of her -- frequently banters and jousts with reporters on the phone and at his appearances as California's attorney general. Given all this, it shouldn't be a surprise that Whitman engaged in a very messy and unsuccessful attempt to clear the Republican primary field."

Liberal blogger Dave Weigel notes Florida Senate candidate Marco Rubio's trouncing of Gov. Charlie Crist in two polls, one from Rasmussen and the other from private pollster Tony Fabrizio: "The incredible aspect of Rubio's steady progress is that it has come without paid TV media or a fundraising advantage. Blog buzz, Twitter, Facebook, talk radio, local activism fueled by Tea Parties — all of that has turned Rubio into the sudden frontrunner for a race he was encouraged to drop out of."

Washington Monthly blogger Steve Benen also marvels at the polls showing Rubio's growing popularity, borne mostly of "grassroots sentiment" even as "Rubio hasn't really been campaigning very hard."

And of rumors that Crist might switch parties and run as an independent (which the Crist camp denies), Benen suggests an option that he says "hasn't even risen to the level that the Crist campaign feels the need to address it:" running as a Democrat. Writes Benen: "Campaigns can be unpredictable, but it's hard to imagine the scenario in which Crist recovers and wins this primary. If he wants to hold elected office in January, Crist is apparently going to have to consider alternative plans… I've asked around among Florida politicos about whether there was any chance at all of Crist becoming a Dem, and while no one literally laughed at the idea, no one thought it was a plausible move, either. Crist has some options -- run as an independent, drop out and run for another gubernatorial term -- but joining the Democrats probably isn't one of them, despite the fact that it might offer him his best chance at winning."

From NBC's Pete Williams and Chuck Todd
After initially talking freely to FBI interrogators, and then refusing to answer questions, the man accused of the Christmas Day bomb plot has begun talking again, according to officials familiar with the case.

Asked today at a Senate hearing about Umar Abdulmutallab, the director of national intelligence, Dennis Blair, said the government needs to balance the need for intelligence versus the need for prosecution.
 
"The balance in Abdulmutallab was understandable. We got good intelligence. We're getting more," he said.

It's an important development, because the administration has been widely criticized for treating Abdulmutallab as a criminal defendant and giving him a Miranda warning, instead of declaring him an enemy combatant and subjecting him to questioning by intelligence officers.

Abdulmutallab's renewed cooperation appears to be in preparation for a guilty plea, which would spare him the death penalty.

FBI Director Robert Mueller told the Senate today that Abdulmutallab did talk to FBI agents after he was arrested on Christmas Day, speaking freely until he went into surgery for burns on his legs. After the surgery, when the FBI sought to resume the questioning, Abdulmutallab made it clear he would not answer further questions. When agents had satisfied themselves of that, they read him his Miranda rights.

From NBC's Mark Murray
Today, GOP Sen. John McCain said this when arguing against the Obama administration's effort to repeal "Don't Ask, Don't Tell":

This would be a substantial and controversial change to a policy that has been successful for two decades. It would also present yet another challenge to our military at a time of already tremendous stress and strain. Our men and women in uniform are fighting two wars, guarding the frontlines against a global terrorist enemy, serving and sacrificing on battlefields far from home, and working to rebuild and reform the force after more than eight years of conflict. At this moment of immense hardship for our armed services, we should not be seeking to overturn the Don't Ask, Don't Tell policy.

But Democrats are passing around this statement McCain made in 2006, when he appeared on "Hardball":

We have the most qualified, the bravest and most capable military we've ever had in our history, and so I think that the policy is working. And I understand the opposition to it, and I've had these debates and discussions, but the day that the leadership of the military comes to me and says, Senator, we ought to change the policy, then I think we ought to consider seriously changing it because those leaders in the military are the ones we give the responsibility to.

Yet as liberal blogger John Aravosis notes, here's what one of those military leaders -- Joint Chiefs Chairman Mike Mullen -- said today:

It is my personal belief that allowing gays and lesbians to serve openly is the right thing to do.

*** UPDATE *** McCain spokeswoman Brooke Buchanan called First Read, maintaining that the Arizona senator has not changed his position on "Don't Ask, Don't Tell." She said that Mullen was speaking for himself, and that the military will undergo a yearlong review to study whether or not to repeal DADT. "A determination has not been made," she said.

When asked if McCain would support repealing DADT -- if that's what the review recommends -- Buchanan declined to answer, saying it was a hypothetical question.

From NBC's Mark Murray
In a wide-ranging interview on MSNBC's "Andrea Mitchell Reports," Vice President Biden discussed the administration's budget, the stimulus, health care, and even his Oscar pick for "Best Picture."

Yet perhaps the biggest news in the interview was when he said political prognosticators were quick to write off the Democrats' chances of holding on to his old Senate seat after his son Beau said he wouldn't run -- a decision Biden said was made over Thanksgiving.

"We have a first-rate candidate now," Biden said. "We have a county executive, a young guy named Chris Coons who has two graduate degrees... The fact of the matter is that I predict to you that Chris Coons is going to surprise the devil out of them."

Most political handicappers believe that GOP Congressman Mike Castle is the favorite to win the seat. Coons has yet to officially enter the Senate race, but was reported last week saying he was "leaning" toward a run.

Also in the interview, Biden maintained that health care's prospects for passage aren't dead ("We don't believe this is over yet"); predicted positive and sustained job growth by the spring ("You're going to see jobs being created"); and dismissed bipartisan attempts to stop the administration from trying 9/11 terrorist suspects in civilian court ("Right after 9/11, about a month after 9/11, Richard Reid tried to blow up a plane just like the Christmas bomber... And they read him his Miranda Rights, tried him in civilian court").

And Biden predicted that "Avatar" would won win "Best Picture," although he had a little trouble remembering the film's title.

Biden: And I think one of the odds-on favorites, Jill didn't do with me, is this new program that I looked at and I wish I was seeing it in 3-D and you sit there and you watch this science fiction thing unfold in front of you.

MS. MITCHELL: "Avatar?"

VICE PRESIDENT BIDEN: "Avatar." The magic of it is kind of overwhelming. There are some other real good ones out there, but I predict "Avatar" will win.

MS. MITCHELL: All right. We'll hold you to that.

From NBC's Pete Williams and Ken Strickland
A bipartisan group of senators today introduced a bill to cut off federal funds for putting the 9/11 terror detainees on trial in US civilian courts. The senators instead want the suspects tried though military commissions.

"The law enforcement model being used by the Obama administration should be rejected," said GOP Sen. Lindsey Graham, who is also an Air Force Judge Advocate General. "We're not fighting a crime; we're fighting a war."

Graham and his co-sponsors said the civilian trials favored by the White House are "unnecessarily dangerous, messy, confusing, and expensive."

"Do we really want to give Khalid Sheikh Mohammed the biggest microphone in the world to spread his message of hate?" Graham asked.

A similar legislative effort failed last November, 45-54. But if five senators change their votes, the measure would pass. Since then, the Christmas day airline bomb plot and the decision to move the terror trials outside New York has prompted new criticism of the administration's anti-terror policies.

But Democratic leaders counter that hundreds of other terrorists have been successfully tried in civilian courts. Senate Judiciary Committee Chairman Pat Leahy said in a statement today, "Federal courts have proven time and again that they are capable of handling terrorism cases. They have successfully tried hundreds of terrorism cases... In stark contrast to that record, very few of the detainees held at Guantanamo Bay have been brought to justice through military commissions."

Graham dismissed that critique, saying that Congress beefed up the commissions last year with a new law. "The Military Commission Act of 2009 was improved with extensive discussions with the Obama administration and [Armed Services Committee] Chairman [Carl] Levin... The system was unavailable Richard Reid, the blind sheik, and other terrorists."

Other senators participating in the news conference were included Independent Joe Lieberman and Republicans John McCain, Jeff Sessions, Orrin Hatch, Saxby Chambliss, John Barrasso, and Democrats Blanche Lincoln and Jim Webb.

"To try them as common criminals, giving them the constitutional rights of American citizens in our courts is justice according to Alice in Wonderland," said Lieberman. Webb added, "We run the risk of having a very costly show trials that would benefit the international terrorist movement."

The senators also criticized FBI's 50-minute interrogation of the alleged Christmas Day bomber. "I would also remind you that I have some experience with interrogations," said John McCain, "and 50 minutes doesn't get you all the information you need."

From NBC's Mark Murray
A new Research 2000 poll of more than 2,000 Republicans, conducted for the liberal blog Daily Kos, has some eyebrow-raising findings:
-- 63% of them believe President Obama is a socialist
-- 53% believe Sarah Palin is more qualified to be president than Obama is
-- 39% believe he should be impeached
-- 36% believe he wasn't born in the United States
-- 31% believe the president hates white people
-- 24% believe the president wants the terrorists to win
-- 23% believe their state should secede from the union

The poll was conducted Jan. 20-31, and it has a margin of error of +/- 2%.

From NBC's John Yang
CHICAGO -- So far, turnout is very low. Some Chicago polling places have reported as few as one or two voters this morning. It is snowing, but weather should not be a major factor-- only about two inches is forecast.

Another thing to keep in mind: This is the first election for new vote-counting software in Chicago and Cook County. Voters have the option of voting on a touch screen, which generates a written record for the voter to check before making the vote final, or optical scanning cards. For the first time, the card will at first be rejected if a voter has not marked each race. The voter then has the choice of marking the unmarked races or casting the ballot as-is.

From NBC's Kelly O'Donnell
Democratic aides tell NBC News that 19-term Pennsylvania Rep. John Murtha (D) is hospitalized after complications arose after scheduled surgery to remove his gallbladder.  Murtha is currently in intensive care at the Virginia Hospital Center in Arlington, VA.

The surgery followed an issue that arose in December, according to aides.

Murtha is 77. He is a powerful member of the House Appropriations Committee, and he's under scrutiny and an ethics cloud for his ties to the now-defunct lobbying firm PMA.

The 2010 primary season kicks off today in IL… Three things to watch in today's primaries: 1) Dem vs. GOP turnout, 2) anti-incumbent fervor, and 3) Tea Party performance… Polls close at 8:00 pm ET… Is the NRSC fortunate that the Senate primary is taking place today and not a month from now?... Obama heads to New Hampshire… A busy day on Capitol Hill… Charlie Rangel's hefty legal bill… And Virginia's vote against health care.

From Chuck Todd, Mark Murray, Domenico Montanaro, and Ali Weinberg
*** And we're off…:  This year's main political event -- the battle for control of Congress -- doesn't take place until November. But beginning today and lasting through September, we officially embark on the 2010 undercard contests -- the various Dem and GOP primaries -- which could very well be as revealing and entertaining as the November midterms. Today, voters head to the polls in Illinois to pick Dem and GOP nominees for Senate, House, and governor. And these primary races might provide us with additional clues about what to expect nine months from now.

*** Three things to watch: One, do Republicans continue to hold an enthusiasm advantage? (In 2004, when Obama won the Senate primary, Dem turnout was nearly 1,243,000 in that contest, and GOP turnout was 662,000; in 2006, during Blago's re-elect, the Dem gubernatorial candidates got 944,000 votes, the GOP ones got 736,000.) Two, are incumbents marked men and women? (Does the sitting governor, Pat Quinn, lose tonight?) And three, how potent and potentially divisive is the Tea Party movement? (How close does Patrick Hughes get to Mark Kirk in the Senate race, and how many votes does conservative fav Adam Andrzejewski get in the Gov primary?)

*** The skinny on today's primaries: In the race for Obama's old Senate seat, state Treasurer Alexi Giannoulias, Chicago Urban League head Cheryle Jackson, and former Chicago Inspector General David Hoffman lead the Dem field, while GOP Congressman Kirk and developer Hughes lead the Republican one. In the contest for governor, Gov. Quinn and state Comptroller Dan Hynes duke it out on the Dem side, while the GOP field includes state party chair Andy McKenna, former state AG Jim Ryan, state Sen. Bill Brady, and businessman Andrzejewski. And for the House, there are primaries worth watching in IL-10 (which is Kirk's seat), IL-14 (where Denny Hastert's son is running for his dad's old seat), IL-11 (where GOPers are running to challenge Rep. Debbie Halvorson) and possibly IL-8 (where GOPers are running to challenge Rep. Melissa Bean). Polls in Illinois opened at 7:00 am ET and close at 8:00 pm ET.

*** Timing is everything: Here's one final observation about Illinois: The National Republican Senatorial Committee has to feel very fortunate about the timing of today's primaries in the state. Why? Because had the primaries been next month (as had been normal pre-'08), we're guessing that front-runner Giannoulias -- who has political baggage -- might no longer be the front-runner, especially if the story about his family's bank continued to play for several more days. Make no mistake, the NRSC feels that Kirk would have an easier time in a general election against Giannoulias than, say, Hoffman. We're also guessing that if the primary took place a month from now, Kirk -- who voted for cap-and-trade and supports abortion rights -- would be facing a stronger Tea Party challenge that he currently is. However, as we said above, it's worth watching how close Hughes might get to Kirk tonight. This INCREDIBLY early primary (six weeks earlier than what WAS normal for Illinois) meant the campaign season didn't kick off until after New Year's, leaving underdog challengers just three weeks to gain traction.

*** Granite State of mind: As voters in President Obama's home state go to the polls -- and both Obamas already cast their absentee ballots -- the president today heads to Nashua, NH, where he will propose taking $30 billion that Wall Street banks repaid and using that to help community banks issue more loans. "These are the small, local banks that work most closely with our small businesses that provide them their first loan, and watch them grow through good times and bad," Obama is expected to say, according to excerpts the White House released last night. "Combined with my proposal back in December to continue waiving fees and increasing guarantees for SBA-backed loans, this will help small banks do even more of what our economy needs -- ensure that small businesses are once again the engine of job growth in America." The president's town hall meeting in New Hampshire begins at 2:15 pm ET. By the way, NBC's Chris Donovan reminds us that Nashua is the place where Obama unveiled his "Yes we can" slogan, in his concession speech after losing the NH primary in '08. And if there is ANY state that's a place for the president to test-drive his pitch to independents, it's New Hampshire.

*** Busy day on the Hill: Meanwhile, there's plenty of action today on Capitol Hill, too. At noon ET, Defense Secretary Gates and Joint Chiefs Chairman Mullen testify before the Senate Armed Services Committee on overturning "Don't Ask, Don't Tell." Per the New York Times, "Gay rights leaders say they expect Mr. Gates to announce in the interim that the Defense Department will not take action to discharge service members whose sexual orientation is revealed by third parties or jilted partners, one of the most onerous aspects of the law." Also testifying on the Hill today will be OMB Director Orszag and Treasury Secretary Geithner (on the budget), as well as DNI Blair, CIA head Panetta, and FBI Director Mueller (on global threats). And at 11:00 am, Sens. McCain (R), Graham (R), Chambliss (R), Lieberman (I), and Lincoln (D) hold a news conference to introduce legislation cutting off funding for the trials of 9/11 conspirators in civilian court. Critics, of course, will point out that we didn't see similar legislation from Congress when the Bush administration was trying suspected terrorists in federal courts.

*** Programming note: MSNBC's "Andrea Mitchell Reports," which airs at 1:00 pm ET, interviews Vice President Biden. And MSNBC's "Daily Rundown," which begins at 9:00 am, has an interview with Sen. Lamar Alexander (R), as well as a discussion on this primary day with former Reps. Tom Davis (R) and Martin Frost (D), both ex-heads of the NRCC and DCCC, respectively. 

*** Stimulating the law business: Did you know that embattled House Ways and Means Committee Chairman Charlie Rangel spent more than half a million dollars on lawyers -- in the last quarter alone? The New York Daily News: "Ever since Rangel ran afoul of several ethical rules last year - from unreported income on a Dominican Republic villa to using office letterhead to raise money - his five teams of lawyers have chewed through campaign cash faster than Rangel can raise it. During all of 2009, Rangel raised about $1.3 million, but spent more than $1.5 million on lawyers out of the $2.2 million he spent in total." *** UDPATE *** Roll Call lets us know that it published this story first.

*** Virginia's rebuke on health care? In Virginia yesterday, the state's Democratic-controlled Senate "passed measures Monday that would make it illegal to require individuals to purchase health insurance, a direct challenge to the party's efforts in Washington to reform health care. The bills, a top priority of Virginia's 'tea party' movement, were approved 23 to 17 as five Democrats who represent swing areas of the state joined all 18 Republicans in the chamber in backing the legislation." The Virginia House is supposed to pass the legislation as well, and Gov. McDonnell (R) is expected to sign it into law. However, it's debatable whether such a state law is constitutional, but the action certainly is a P.R. blow of sorts to the national Democratic efforts to overhaul health care. (It's also worth noting that the 23-17 majority wouldn't clear a filibuster in the U.S. Senate.)

*** More midterm news: In Florida, be careful of the hype some are giving to a poll that GOP pollster Tony Fabrizio conducted showing Charlie Crist (R) losing as an independent in a three-way general election against Marco Rubio (R) and Kendrick Meek (D). Crist has made NO moves or even coyly hinted at an indie run; in fact, some argue that this is another attempt by supporters of Rubio to alienate Crist further from the GOP in the state. But among conservatives in the blogosphere, the poll is gaining buzz and Crist folks are realizing they need to push back… In New York, Harold Ford was on "Colbert" last night, as a new Marist poll shows him trailing Gillibrand, 44%-27%, with 25% undecided.

Countdown to TX primary: 28 days
Countdown to Election Day 2010: 273 days

Click here to sign up for First Read emails.
Text FIRST to 622639, to sign up for First Read alerts to your mobile phone.
Check us out on Facebook and also on Twitter. 

The Hill writes, "President Barack Obama on Tuesday will call for a new, $30 billion small business lending fund drawn from bailout funds as part of his push for new job creation. The president will unveil his new "Small Business Lending Fund" during an appearance in Nashua, N.H., part of the series of new proposals meant to bolster economic growth and new jobs."

The New York Times analyzes the deficits in Obama's budget. "In a federal budget filled with mind-boggling statistics, two numbers stand out as particularly stunning, for the way they may change American politics and American power. The first is the projected deficit in the coming year, nearly 11 percent of the country's entire economic output. That is not unprecedented: During the Civil War, World War I and World War II, the United States ran soaring deficits, but usually with the expectation that they would come back down once peace was restored and war spending abated."

"But the second number, buried deeper in the budget's projections, is the one that really commands attention: By President Obama's own optimistic projections, American deficits will not return to what are widely considered sustainable levels over the next 10 years. In fact, in 2019 and 2020 — years after Mr. Obama has left the political scene, even if he serves two terms — they start rising again sharply, to more than 5 percent of gross domestic product. His budget draws a picture of a nation that like many American homeowners simply cannot get above water."

The New York Times on today's "Don't Ask, Don't Tell" testimony on Capitol Hill: "Gay rights leaders say they expect Mr. Gates to announce in the interim that the Defense Department will not take action to discharge service members whose sexual orientation is revealed by third parties or jilted partners, one of the most onerous aspects of the law. Pentagon officials had no comment."

The Boston Globe: "Pentagon officials are expected to announce today that they will significantly relax enforcement of the ban on gays serving openly in the military, according to sources inside and outside the military who have been briefed on the plan… Secretary of Defense Robert M. Gates and Admiral Mike Mullen, chairman of the Joint Chiefs of Staff, are expected to announce at least two specific policy shifts: No longer will a 'third party,' such as a spouse or informant outside the military, be able to prompt investigations of service members by saying they are gay; and only generals and admirals will be authorized to decide whether someone should be discharged for being gay. Such decisions are now often made lower in the chain of command."

Broken promise? "Grappling to contain record deficits, President Barack Obama is seeking to end a middle-class tax break he once said would be permanent," The Hill's Alarkon writes. "The $3.8 trillion budget request rolled out by the White House on Monday would renew the Making Work Pay tax credit for fiscal 2011, but then would have it sunset. That's a switch from last year, when Obama's budget called for making the tax credit permanent."

"President Barack Obama's proposed budget represents a "death march" for United States space flight, Sen. Richard Shelby (R-Ala.) said Monday," The Hill notes. "Obama has proposed canceling NASA's 'Constellation' project for manned space flight. NASA had hoped to return a man to the moon in 2010. Shelby is the ranking member of the Appropriations subcommittee handling NASA funding, and Alabama is home to NASA's Marshall Space Flight Center." Cuts always do look a lot better when they're not in your district.

Rep. Charlie Rangel "dropped $575,000 on five teams of lawyers since Oct. 1 -- the lion's share of the $687,000 he spent that quarter," the New York Post says. "It's twice the $235,000 he raised in that three-month span."

NBC's Kelly O'Donnell reports that Republican Scott Brown will be sworn in as the junior senator from Massachusetts on Thursday, Feb. 11 at 12:45 pm ET.

Roll Call looks at life as a freshman senator by profiling Virginia Sen. Mark Warner (D): "Fifteen months later, the elation of Election Day and excitement and pageantry of being sworn in as a United States Senator has given way to the realities of the hectic pace of life as a Member of Congress. The former governor and millionaire business entrepreneur has celebrated victories in the legislative arena with new colleagues and old role models, but he also admits there are times when aggravation has set in, especially when it comes to the ability of a freshman Senator to make a real difference in the world's greatest deliberative body."

"It's 'worse than Eliot Spitzer!' exclaimed one of disgraced South Carolina Gov. Mark Sanford's young sons after their mom revealed he was having an affair with a sexy Argentine mistress, his wife says in a new tell-all book."

"Republicans are on track to have more than 100 challengers running this cycle, but many of them will be in the same races," The Hill reports. "Well-funded candidates crowded GOP primaries across the country in the fourth quarter of 2009, after the dust settled on a summer that saw the rise of the Tea Party movement. Republicans now face primaries in about two-thirds of their top-targeted races, with most of them coming to fruition in the fourth quarter. Most of the new insurgent candidates come with the ability to self-fund, at least at the start of their campaigns."

"If the Democrats suffer significant losses in House elections this fall, it won't be because their incumbents weren't ready for the fight… The 42 Members to whom House Democratic leaders have provided added logistical and financial aid had an average of $800,000 in their campaign accounts as the election year began, according to a Roll Call analysis of updated reports filed with the Federal Election Commission by a Jan. 31 deadline."

Politico lists its picks for the winners and losers of the Jan. 30th campaign fundraising disclosures. Among the winners are Florida Senate candidate Marco Rubio (R), Rep. Walt Minnick of Idaho (D), who is "in surprisingly solid shape" despite representing "one of the most conservative districts in the country." The losers include Missouri Senate candidate and Secretary of State Robin Carnahan and Rep. Alan Mollohan (D-W.Va), who "starts the new year with less campaign cash than his newly announced Republican challenger, former state Del. David McKinley."

The Hill also does a House fundraising winners and losers.

COLORADO: In "the latest sign that former Colorado House Speaker [Andrew Romanoff] is serious about his primary challenge to Sen. Michael Bennet," Romanoff has hired "big-name" Democratic strategists Joe Trippi and Celinda Lake, Politico reports.

ILLINOIS: "Voters go to the polls Tuesday in Illinois for the first primaries of 2010, where a Senate race and a few competitive House races have been overshadowed by intraparty bickering in the gubernatorial contest," CQ writes. "The gubernatorial candidates in both parties have been sucking up air time in Illinois, leaving little time or space for congressional candidates to break through the noise." 
 
State Journal-Register: "Candidates cris-crossed Illinois Monday, using the last full day of campaigning before today's primary election to get their message out," appearing in hotel ballrooms, statehouses, campaign headquarters and pizza parlors. 
 
The New York Times' Gail Collins on what she perceives as one of the prevailing strategies in the Illinois primaries: distance yourself, as far as you can, from the Washington establishment. "Every single person running in the Illinois primaries seems to be an outsider. The state comptroller is an outsider. The former Republican Party chairman is an outsider. If Rod Blagojevich were allowed to run for things anymore, he'd be in this as an outsider. As things stand, however, the former governor is a contender only in the upcoming season of 'Celebrity Apprentice.'" 
 
The Hill breaks down each of the races in a couple of paragraphs each.
 
"Voters will head to the polls for the first primaries of 2010 today in Illinois, where a Senate race and a few competitive House races have been overshadowed by intraparty bickering in the gubernatorial contest," Roll Call writes. 
 
The AP also previews the gubernatorial and Senate races.

INDIANA: "Indiana Secretary of State Todd Rokita (R) will run to succeed retiring Rep. Steve Buyer (R) in the state's 4th district," Roll Call says.

KENTUCKY: Sarah Palin endorsed Rand Paul in his Senate bid.

NEW YORK: "A week after getting thrashed by Stephen Colbert as a flip-flopper, potential Senate candidate Harold Ford Jr. said he wanted to see if the comedian 'wants to beat me up in person.' Ford got his answer Monday night when Colbert did exactly that on 'The Colbert Report.' 'Evidently, six minutes at my interview table counts as New York State residency,' Colbert said to the former Tennessee congressman, who registered to vote here last fall. It didn't get any better for Ford. Colbert began by pressing him on abortion, noting that in 2006, Ford called himself 'pro-life' but now insists he has always been pro-choice."

From NBC's Mark Murray
It's getting ugly in the Meg Whitman-vs.-Steve Poizner GOP gubernatorial primary in California.

First, in a statement to reporters, the Poizner campaign accused Whitman strategist Mike Murphy of contacting a Poizner campaign consultant and threatening Poizner to exit the race. 

"After the Whitman campaign's Mike Murphy's call to a high ranking member of the Poizner campaign proved to be unsuccessful in forcing Steve Poizner from the race, Murphy sent the following e-mail to a senior member of Steve Poizner's team," the statement reads. "In the e-mail, Murphy threatens that the Whitman campaign 'can spend $40M+ tearing up Steve if we must; bad for him…' The Murphy e-mail has been sent to the proper authorities, including the FBI, the U.S. Attorney's office, and the Attorney General's office for review of ethical violations."

Wow.

Now Murphy is firing back. "After reading the ridiculous charges made by Steve Poizner during today's strange press conference, all I can say is that I'm starting to worry about Commissioner's mental condition."

Double wow.

More Murphy: "Several weeks ago I was advised by a source close to Steve Poizner that his pollster, my old friend Jan van Lohuizen, had been expressing grave doubts about the viability of the faltering Poizner campaign. So I emailed Jan; this is the email the Commissioner is so excited about. About ten days ago I also placed a phone call to a second senior Poizner consultant. We had a nice talk and discussed the option of Poizner considering a race for Senate in 2012. The consultant offered to discuss this with Commissioner Poizner and asked for a number where I could be called back. I do not plan to make any further comment on these discussions, as I do not want to create even more embarrassment for his consultants, or get anybody fired."

From NBC's Domenico Montanaro
Apparently Sarah Palin's PAC spent more money on her book, "Going Rogue," than on other candidates.

Hotline On Call:

The papers filed over the weekend show SarahPAC spent $47,777 on copies of "Going Rogue" during the last 6 months of the year. Meanwhile, she handed out just $43K in donations to candidates seeking federal office.

The PAC bought the books from HarperCollins, Palin's publisher. The FEC reports show Palin has been purchasing the book to send to donors, some of whom got a copy after contributing a certain amount to the PAC.

From NBC's Mark Murray
Here's House Minority Leader John Boehner: "Filled with more reckless spending and more unsustainable debt, the President's budget is just more of the same at a time when the American people are looking for Democrats in Washington to listen and change course."

House Minority Whip Eric Cantor: "The President's budget spends more than any other in history, creates the largest deficits in history, and imposes the largest tax increases in history - at a time when our country can least afford it. Small businesses and job creators simply cannot afford the massive Obama tax increases included in this budget and be expected to hire more workers."

And here's House Speaker Nancy Pelosi: "President Obama has approached this budget with equal commitment to economic growth and fiscal responsibility. I look forward to examining the president's proposal to freeze spending and believe waste can be found in all departments and agencies -- including the Defense Department -- so it too must come under scrutiny. We will continue to fully support our veterans and our men and women in uniform and their families, but curbing military contractors' wasteful practices must be part of our efforts to restore accountability, transparency, and fiscal discipline to the federal budget." 

From NBC's Athena Jones
Saying it was time to save what we can, spend what we must, and live within our means once again, President Obama today unveiled a budget that includes new spending on job creation proposals and education, while urging both parties to come together to find ways to cut wasteful spending in other areas.

The proposed FY2011 budget puts overall spending at $3.83 trillion dollars during the fiscal year, and projects a deficit of $1.27 trillion, or 8.3% of the Gross Domestic Product.

With the unemployment rate stuck at 10%, the administration has been under pressure to defend its spending decisions. Republican critics say efforts to pull the economy out of recession have done little to produce jobs and have added too much to the deficit. Obama has consistently argued the spending was necessary to prevent total economic collapse and has sought to remind people that he inherited an already huge $1.3 trillion deficit, was prepared to take steps to reduce it, and wants help from both parties.

"If we had taken office during ordinary times, we would have started bringing down these deficits immediately. But one year ago, our country was in crisis," the president said during his brief remarks from the Grand Foyer. "We initiated a rescue and that rescue was not without significant costs. It added to the deficit as well. One year later, because of the steps we've taken, we're in a very different place. But we can't simply move beyond this crisis; we have to address the irresponsibility that led to it and that includes the failure to reign in spending as well as reliance on borrowing."

The president -- who was joined by Treasury Secretary Tim Geithner, OMB Director Peter Orszag, and economic advisers Christina Romer and Larry Summers -- has called for freezing non-security discretionary spending for three years, which the administration estimates will save $250 billion over 10 years.

"We're not simply photocopying last year's budget. Freezing spending does not mean we won't cut what doesn't work to pay for what does," Obama said. "We have gone through every department's spending line by line, item by item, looking for inefficiency, duplication, and programs that have outlived their usefulness."

He also outlined some of the $20 billion in savings the administration had identified -- including mine clean up and ending a program that allows people to collect advances for their Earned Income Tax Credit. (Obama said that while he supports the EITC, the advances program was not run effectively.)

The president responded to critics who say his proposals steps don't go far enough to rein in federal spending they see as out of control by focusing anew on bipartisanship.

"I'm willing to reduce waste in programs I care about, and I'm asking members of Congress to do the same," he said. "I'm asking Republicans and Democrats alike to take a fresh look at programs they've supported in the past to see what's working and what's not, and trim back accordingly."

Along those same lines, the Obama called on the Republican leaders in Congress -- Ohio Rep. John Boehner and Kentucky Sen. Mitch McConnell -- to support a bipartisan fiscal commission on the deficit, which is set to be established by executive order after failing to pass the Senate despite early support from members of both parties.

Obama closed by reiterating that he was open to Republican ideas. "I welcome any idea, from Democrats and Republicans," he said. "What I will not welcome -- what I reject -- is the same old grandstanding when the cameras are on, and the same irresponsible budget policies when the cameras are off. It's time to hold Washington to the same standards families and businesses hold themselves."

The 2011 budget focuses on key parts of the president's agenda from education and clean energy, to infrastructure and efforts to boost job creation -- like $33 billion for tax cuts for small businesses to encourage them to hire new workers and increase salaries.

From NBC's Mark Murray
In another sign that Democrats are trying to tap into the rising populism by aiming their political fire at Wall Street, the Democratic-leaning group Americans United for Change has a new TV ad taking on the financial industry.

[Youtube:S0zNf6asRhM]

Oink, oink. 

From NBC's Domenico Montanaro
Joe Lieberman's speech at the Alfalfa Club dinner last night has some groan-worthy lines in it, including his assertion that Robert E. Lee was actually named Robert E. Lieberman, that Dick Cheney invited warlords and Gilbert Arenas, and that he would do whatever's necessary to get reelected including posing nude in Cosmo.

He also took shots at Cheney for Guantanamo "water sports," Bill and Hillary Clinton, John McCain for picking Sarah Palin as his VP, John Edwards, and MSNBC's Keith Olberman (who he said would be in his cabinet as Secretary of the Interior in the hopes he'd get lost in a national park).

Here are some excerpts, per his office, after the jump:

Senator Joe Lieberman
Excerpts from Alfalfa Nomination Speech
January 30, 2010

* * * * *

Thank you all and thank you, Mr. Vice President.

You have to hand it to Dick.  Who but Dick Cheney would invite as his guests tonight . . . two Afghan warlords and Gilbert Arenas? 

* * * * *

My fellow Alfalfans…I accept your nomination!  As I said to Al Gore in 2000—there's no way we can lose this thing.

As you know, the Alfalfa was originally formed to celebrate the birthday of Robert E. Lee.  I stand before you tonight having much in common with General Lee . . . as many of my previous presidential bids have gone south.

In fact, General Lee and I have more in common than you might imagine.  I know this will surprise a lot of people, but the great general's real name was Robert E. Lieberman.

My fellow Alfalfans, as your candidate, I will fight as tenaciously as my namesake General Lee.  I will do whatever's necessary to get elected -- even appear nude as the newly elected senator from Massachusetts did in the pages of Cosmopolitan. 

In my case, back in the days of the old New York Sun I was once the subject of a very tasteful nude Currier and Ives lithograph.

Nothing to worry about, however.  I very gracefully put my hand over my private parts . . . which shows that even then I was against the public option! 

* * * * *

Alfalfans, our campaign has many advantages.  As Harry Reid has pointed out, I am light-skinned and don't have a Yiddish dialect.

* * * * *

My big advantage as your nominee, of course, is that I have had national campaign experience. 

As you may recall, I was Al Gore's running mate in 2000.  A lot of pundits said he picked me because I was willing to criticize Bill Clinton. 

But by those standards, he should have picked Hillary!

There was some controversy from my Senate Democratic colleagues that at the same time I was running as vice president with Al, I was also running for reelection to the Senate.

When John Edwards heard about it, he said to me, "Isn't that like two-timing?"

Then in 2004, I ran for the Democratic presidential nomination myself.  I thought my hawkish stance would appeal to voters. 

Unfortunately, Don Rumsfeld and Sean Hannity couldn't vote in the Democratic primaries. 

Then in 2008, I was apparently John McCain's first choice for vice president.  But I have absolutely no hard feelings about being passed over in favor of Sarah Palin. 

She survived the vetting process. 

True, it pretty much consisted of holding her drivers' license up to the light, but she survived it.

Believe it or not, I'm the one who actually first suggested to John that he consider Sarah Palin as a running mate. 

John, it's called sarcasm.

* * * * *

Now, as for my presidential appointments, I have not made any selections yet. 

But in choosing my cabinet, my wife Hadassah will help, because no Jewish man can pick out cabinets without his wife.

I'm going to reach out to people who disagree with me.  The only nomination I know for certain is Keith Olberman, whom I plan to make Secretary of Interior . . . in hopes he'll get lost in a national park.

Many of you Alfalfans will be considered for the cabinet.  After all, you in this room represent the machinery that makes our nation function . . . which reminds me of our crumbling infrastructure… 

* * * * *

On foreign affairs, I understand what Guantanamo has come to mean in world opinion.  But we can fix that, without closing Guantanamo.

All we have to do is change its name.  How about calling it the Richard B. Cheney Resort and Rehabilitation Spa?

I bet the water sports will be really great.