From NBC's Domenico Montanaro
Two House aides confirm to NBC News that Upstate New York Congressman Eric Massa will resign Monday at 5 pm ET.

[EDITOR'S NOTE: An earlier version of this post incorrectly noted that Massa was resigning today.]

*** UPDATE *** Here's a statement from Massa's on his House Web site:

Two days ago as I sat reading my new annual CAT scan, having been told that the anomalies in the films may or may not be scar tissue, I decided to finally take the advice that my doctors have repeatedly given me, and that is to take care of my family and myself before my profession. After I decided not to run again I was told, for the first time, that a member of my staff believed I had made statements that made him feel "uncomfortable." I was told that a report had been filed with the Congressional Ethics Committee. At no point prior to this had any member of the Ethics Committee communicated with me directly - if fact I first read it on the internet.

I own this reality. There is no doubt in my mind that I did in fact, use language in the privacy of my own home and in my inner office that, after 24 years in the Navy, might make a Chief Petty Officer feel uncomfortable. In fact, there is no doubt that this Ethics issue is my fault and mine alone. But in the incredibly toxic atmosphere that is Washington D.C., with the destruction of our elected leaders having become a blood sport, especially in talk radio and on the internet, there is also no doubt that an Ethics investigation would tear my family and my staff apart. Some would say that this is what happens when you stand apart from political parties, which I have done. Others will say that this is what happens to a non politician when they go to Washington DC. I want to make something perfectly clear. My difficulties are of my own making. Period. I am also aware that blogs and radio will have a field day with this in today's destructive and unforgiving political environment. In that investigators would be free to ask anything about me going back to my birth, I simply cannot rise to that level of perfection. God knows that I am a deeply flawed and imperfect person.

During long car rides, in the early hours of the evening, late at night and always in private, I know that my own language failed to meet the standards that I set for all around me and myself. I fell short and I believe now, as I have always believed, that it is not enough to simply talk the talk, but rather I must take action to hold myself accountable.

Therefore, effective at 5 PM on Monday the 8th of March I will resign my position as the Federal Representative of New York's 29th Congressional District in the 111th Congress. I do so with a profound sense of failure and a deep apology to all those whom, for the past year, I tried to represent as our Nation struggles with problems far greater than anyone can possibly imagine. I hope that my family, constituents, and fellow Members of Congress can accept this apology as being both genuine and heartfelt and I wish for them and all Americans only the best. I will take all actions possible to ensure that my personal health is secured in that I know that mine is a far more fragile lifeline than most. For the millions of fellow cancer survivors with whom I share this experience, they, more than anyone else, will understand the honesty and openness in this statement.

I ask that members of the press respect the privacy of my family, my staff, and me at this time.

NBC's Luke Russert has a timeline of events:

Feb. 8th:  Hoyer was alerted by Massa's office that a staffer was filing a complaint against the Congressmen for sexual harassment. Hoyer said it needed to go to the Ethics Comt within 48 hours or he would bring it himself.

Ethics Committee got info on Feb. 9th.

March 3rd: Reports surface that Massa would not run for re-election. He cited a recurrence of cancer, but there were allegations of an ethics complaint that he harassed a male staffer. Majority Leader's office says it knew about it and urged the staffer to report to the ethics committee.

March 4th: House speaker Nancy Pelosi says while her staff knew about the allegation, she had NO direct knowledge.

THE ETHICS COMMITTEE WILL NO LONGER INVESTIGATE MASSA ONCE HE RESIGNS BECAUSE THEY NO LONGER HAVE JURISDICTION.

From NBC's Domenico Montanaro
A month after the Illinois GOP gubernatorial primary date, state Sen. Bill Brady was declared the winner today.

Election officials declared "that he edged state Sen. Kirk Dillard by a margin of 193 votes," CQ reports.

Dillard is expected to concede at a 2:30 pm ET press conference.

From NBC's Athena Jones
ARLINGTON, Va. -- President Obama used a trip to a company that promotes energy savings to tout his proposals to boost job creation and accelerate the country's recovery from the worst economic crisis since the Great Depression.

His remarks came on the same day the Bureau of Labor Statistics announced the unemployment rate held steady at 9.7 percent during the month of February, a sign that job growth remains flat. Even so, the 36,000 jobs lost during the month was less than the 50,000 many analysts had forecast. Administration officials had suggested the economy could lose as much as 200,000 jobs during the month as a consequence of severe winter storms.

"It shows that the measures that we're taking to turn our economy around are having some impact," he said. "But even though it's better than expected, it's more than we should tolerate. Far too many Americans remain out of work. Far too many families are still struggling in these difficult economic times and that's why I'm not going to rest, and my administration is not going to rest, in our efforts to help people who are looking to find a job; to help business owners who want to expand feel comfortable hiring again."

The administration has sought to show it is focused on jobs by proposing a series of measures to jump-start hiring, including a bill that would give businesses that hire workers a tax credit. The House passed that legislation yesterday, but it will have to go back to the Senate, because members made changes to it to gain votes.

At OPOWER today, the president hailed the passage earlier this week of a bill extending unemployment and health care benefits after the Republican senator who had held up a vote on the measure finally relented. Still, he noted the extension would only last for about a month and called on Congress to extend this relief through the end of the year.

He also touched on one of his favorite agenda items, clean energy, touting a program designed to create jobs by providing rebates to homeowners who retrofit their homes to make them more energy efficient.

"Think about the way that the rebates we're talking about could help spur private sector job growth," Obama said, explaining that local contractors hired to upgrade homes would benefit, leading to a ripple effect. "These companies then, in turn, have to purchase supplies and that creates business for retailers. These retailers would need to restock their shelves, and that creates business for manufacturers. And almost all the goods that are required to make homes more energy efficient are actually produced right here in the United States of America."

The Democrats experience a pretty rough week, although a better-than-expected jobs report lessens the bad news… Republicans convince Nathan Deal to postpone his retirement (increasing the Dems' magic number on health care to 217), while Democrats continue to herd cats… Is the Obama administration changing its mind on the KSM trial?… Looking numerically at McCain's voting record… First Read's Top 10 House takeovers (and also Top 10 toss-ups and majority-makers)… And William Delahunt becomes the latest House Dem to announce retirement.

From Chuck Todd, Mark Murray, Domenico Montanaro, and Ali Weinberg
*** Dems' rough week: Simply put, this has been a rough week for Democrats. They now have a competitive Senate primary in Arkansas, which makes the party's chances of holding the Arkansas Senate seat look even less likely. Rep. Charlie Rangel had to step down as Ways and Means Committee chairman due to ethics problems. Rep. Eric Massa announced he was retiring, and no matter the reason, it gives Republicans an excellent pick-up opportunity in that Upstate New York district -- and also cements the "ethics problems hurting Democrats" storyline. And the capstone: Last night, we learned that Rep. William Delahunt is retiring, putting another Democratic House seat up for grabs (although Dems have a much better chance of holding on to that seat than Massa's).

*** But on the bright side…: Still, the week wasn't all bad news for Democrats. The Bunning blockade was a P.R. disaster for congressional Republicans. The new jobs report (the unemployment rate remains unchanged at 9.7%, with 36,000 jobs lost in February) was better than expected, though it's more evidence that Dems can't catch a break (had it not been for the snow in the Northeast, the report could have been VERY good news). And, despite the Democrats' difficulty herding cats on health care (see below), everything we're hearing suggests that they're on course to pass health care. And they better: If Obama does NOT get health care, it'll paralyze the party and the president for the rest of the year.

*** Let's make a deal: If you want to see the difference between Democrats and Republicans -- or more accurately, the difference between the majority and minority parties -- just consider what happened yesterday. On the Republican side, House Minority Whip Eric Cantor was able to convince Rep. Nathan Deal (R) to postpone his decision to resign from Congress to concentrate solely on his race for Georgia governor. That decision -- putting the party before the personal -- now means House Democrats will now need 217 votes to pass health care, not 216. On the other hand yesterday, Democrats were hearing Rep. Bart Stupak (D) say that he and a handful of other House Dems would vote against the health measure if he didn't get his way on abortion. One other thing: The White House's deadline for the House to pass health care by March 18 may seem like a bit much for House Dems. But how does delay get them MORE votes? More time equals more public debate, no? What makes Dems think if they can't get the votes by 3/18 that they CAN get them by 3/25?

*** Backing down on KSM? The Washington Post has this scoop: "President Obama's advisers are nearing a recommendation that Khalid Sheik Mohammed, the self-proclaimed mastermind of the Sept. 11, 2001, attacks, be prosecuted in a military tribunal, administration officials said, a step that would reverse Attorney General Eric H. Holder Jr.'s plan to try him in civilian court in New York City. The president's advisers feel increasingly hemmed in by bipartisan opposition to a federal trial in New York and demands, mainly from Republicans, that Mohammed and his accused co-conspirators remain under military jurisdiction, officials said." Of course, this does beg the question of the issue of "politics influencing the Justice Department." The only reason this is happening is due to politics. 

*** McCain's more conservative record: Today and tomorrow, John McCain campaigns in Arizona with Sen. Scott Brown (R). And you could say that McCain has done everything possible to protect his right flank as he faces a GOP primary challenge in this political environment. Besides stumping with Brown, McCain has embraced Sarah Palin (who campaigns for McCain later), and he has built up a more conservative voting record. How more conservative has it become? According to National Journal's vote ratings, McCain's composite conservative score in 1995 was 70.2, meaning that he was more conservative than 70.2% of the Senate (putting him in the middle of the GOP pack). Here are the other years:

1996: 75.3
1997: 71.5
1998: 68.3
1999: 67.7
2000: 61.7
2001: 66.8
2002: 59.8
2003: 62
2004: 51.7
2005: 59.2
2006: 56.7
2007: NA, missed too many votes while campaigning for president
2008: NA; missed too many votes while campaigning for president
2009: 84.3.

*** All about Obama and the Dem Congress? If you make those numbers above into a linear graph, you can see that McCain became steadily less conservative -- especially during the Bush years -- before racking up his highest conservative rating last year. McCain spokeswoman Brooke Buchanan tells First Read that McCain's more conservative score in 2009 shouldn't be surprising given the stimulus, omnibus, and health-care votes. "We are in different times," she said. "We are right to this Congress and we are right to this administration." She also says that McCain's conservative score in 2009 came before J.D. Hayworth officially entered the race this year. And she adds that McCain's votes against the Bush tax cuts, his support for immigration reform, etc. is reflected in his lower conservative scores from 2001 to 2006.

*** First Read's Top 10 House Takeovers: If it's Friday, it's another First Read Top 10 list -- this time our look at what we consider the 10 most likely congressional districts to switch parties in November:

1. LA-2 (R-Cao): The Vietnamese-American, who surprisingly won this African-American majority district that was held by convicted William Jefferson, has been a Democratic target since his 2008 victory and is facing an uphill battle.
2. TN-6 (D-Open-Gordon): The retirement of Democrat Bart Gordon makes this GOP-leaning district a nearly automatic pick-up for Republicans.
3. DE-AL (R-Open-Castle): Mike Castle's decision to run for the Senate gives Democrats an excellent chance of winning Delaware's sole congressional seat.
4. LA-3 (D-Open-Melancon): Once again, a Senate committee's gain is the congressional committee's loss. Rep. Charlie Melancon's decision to run against David Vitter for Senate gives the GOP another good takeover opportunity.
5. IN-8 (D-Open-Ellsworth): Brad Ellsworth's decision to run for the Senate seat opened up by Evan Bayh's exit puts this once-longtime GOP seat potentially back in the Republican column.
6. NY-29 (D-Open-Massa): Whatever freshman Eric Massa's reason for not running for reelection, his retirement gives the GOP a very good chance in this Upstate New York district McCain carried in '08.
7. MD-1 (D-Kratovil): Freshman Frank Kratovil, who eked out a narrow victory in '08, looks to be in danger in this traditionally Republican district. Obama may have won the state overwhelmingly, but McCain won the district 58%-40%. And there won't be an Obama surge this time.
8. IL-10 (R-Open-Kirk): The third-best chance for Democrats this cycle is Mark Kirk's old seat; Kirk is running for the Senate.
9. KS-3 (D-Open-Moore): Another retirement. Dennis Moore's decision to not run for re-election has given the GOP yet another target. And Democrats still don't have a candidate. Some think the best Dem could be Moore's wife, but she hasn't committed.
10. OH-15 (D-Kilroy): This perennial target seat could be switching hands, as the incumbent Democrat here underperformed Obama in 2008

*** Top 10 House Toss-Ups: Here, in alphabetical order by state, are what we consider to be the 10 most competitive House districts, all of which are held by Democrats: CO-4 (D-Markey); ID-1 (D-Minnick); NM-2 (D-Teague); NH-2 (D-Open-Hodes); NV-3 (D-Titus); OH-1 (D-Driehaus); PA-7 (D-Open-Sestak);TN-8 (D-Open-Tanner); VA-5 (D-Perriello); and WA-3 (D-Open-Baird).

*** Top 10 Majority Makers: And here, in alphabetical order by state, are what we consider to be 10 districts -- where Democrats are currently favored -- that could tell us whether or not Republicans will win back control of the House: AZ-8 (D-Giffords); IA-3 (D-Boswell); MO-4 (D-Skelton); NY-1 (D-Bishop); OH-16 (D-Boccieri); OH-18 (D-Space); PA-8 (D-Murphy); SC-5 (D-Spratt); WV-1 (D-Mollohan); and WI-8 (D-Kagen).

*** More midterm news: In Arkansas, on the same day that Bill Clinton's spokesman said that the former president was backing Blanche Lincoln in her Democratic primary, EMILY's List said it wouldn't be helping the incumbent Democrat… In Massachusetts, Rep. William Delahunt (D) announced his retirement; the Rothenberg Political Report moved the district from "Safe" to "Democrat Favored"… And in Wyoming, Gov. Dave Freudenthal's (D) announcement that he won't seek another term gives Republicans an excellent shot at taking over the governor's mansion.

*** Programming notes: MSNBC's Daily Rundown interviews White House economic adviser Christina Romer on the jobs report. And MSNBC's "Andrea Mitchell Reports" has Democratic Sens. Chris Dodd and Carl Levin, and new Ways and Means Chairman Sandy Levin (Carl's brother).

Countdown to AR filing deadline: 3 days
Countdown to OR, PA filing deadlines: 4 days
Countdown to CA, NV filing deadlines: 7 days
Countdown to IA, UT filing deadlines: 14 days
Countdown to Election Day 2010: 242 days

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The Washington Post: "An aide to President Obama urged lawmakers on Thursday to make substantial progress on his health-care plan before he leaves on a foreign trip in mid-March, as Obama summoned wavering House Democrats to the White House for a private sales pitch. The president also made a surprise visit to insurance company chief executives, brandishing a letter from a cancer patient as he admonished them about what he has called excessive rate increases."

"Taken together, the actions reflected the sense of urgency inside the West Wing for Congress to brush aside legislative delays and election-year politics and pass the president's top domestic priority."

"Several lawmakers who were invited [to a Thursday meeting at the White House] said Obama didn't tell them what the meetings were about, but that it was fairly obvious based on the guest list. 'It's the problem children who are being invited,' said one Member who planned on attending the meeting."

On the charge that Obama has in the past spoken out against using a 50-plus-one legislative strategy, AP finds against White House Press Secretary Robert Gibbs, who said Obama was talking about electoral strategy. "Obama wasn't talking about polls or public opinion -- or only about electoral politics -- in the interview," the AP writes.

And: "The House Foreign Affairs Committee narrowly passed a nonbinding resolution yesterday that condemns the World War I-era killings of Armenians as genocide, despite warnings by the Obama administration that such a move would anger Turkey, a key US ally in the Middle East, and would put fragile reconciliation efforts between Turkey and Armenia at risk," the AP writes. As a result, Turkey pulled its ambassador.

"The House passed the Senate's $15 billion jobs bill in a 217-201 vote on Thursday," The Hill writes. "Lawmakers voted to approve the package, which provides a series of tax credits for job creation and other stimulus measures, after Democrats struggled to pass a rule for the legislation."

The New York Times adds, "The Senate passed the bill last week on a bipartisan vote. But because the House altered the measure, the Senate must approve the revised bill before President Obama can sign it into law. The Senate is expected to take it up again next week." 

The Times also links the Rangel, Massa, and Paterson news -- along with Edwards and Spitzer. "The ethical woes facing Democrats are piling up, with barely a day passing in recent weeks without headlines from Washington to New York and beyond filled with word of scandal or allegations of wrongdoing. The troubles of Gov. David A. Paterson of New York, followed by those of two of the state's congressmen, Charles B. Rangel and Eric J. Massa, have added to the ranks of episodes involving prominent Democrats like Eliot Spitzer, Rod R. Blagojevich and John Edwards."

"Taken together, the cases have opened the party to the same lines of criticism that Democrats, led by Representatives Nancy Pelosi, now the House speaker, and Rahm Emanuel, now White House chief of staff, used effectively against Republicans in winning control of the House and Senate four years ago." 

An abortion fix? "House Majority Leader Steny Hoyer (D-Md.) said Thursday that lawmakers could draft separate pieces of legislation with abortion language to earn the support of anti-abortion rights Democrats on healthcare reform legislation," The Hill reports. "Stupak has said that 12 lawmakers who previously backed healthcare reform legislation in the House could withhold their support if the Senate's abortion language, which was largely upheld by the president's fixes, remains unchanged."  
 
"Majority Leader Harry Reid (D-Nev.) predicted Thursday that the Senate would pass a one-year extension of unemployment and other benefits measures by early next week," Roll Call reports.  
 
"The House ethics committee confirmed Thursday that it is investigating unspecified allegations against Rep. Eric Massa (D-N.Y.)," Roll Call writes. By the way, check out Pelosi's response: "There had been a rumor, but just that," Pelosi told reporters Thursday at her weekly news conference. "A one-, two-, three-person rumor that had been reported to Mr. Hoyer's office and reported to my staff, which they did not report to me because, you know what, this is rumor city. There are rumors. I have a job to do, and I've been doing just that."

In his National Journal column, Ron Brownstein notes the contradiction of Romney portraying himself as a "Fix-It" man -- but also giving that combative CPAC speech and launching a broadside at Democrats at the end of his new book. "[T]hese messages vary enough to suggest that Romney still hasn't entirely decided whether to take the pragmatist or crusader path if he runs in 2012."

Brownstein concludes, "He seems determined to simultaneously convey that he is reasonable and angry. Reasonable suits Romney better, and yet now, as in 2008, he appears uncertain that he can capture the GOP's heart while wearing the clothes that fit him best."

Palin's reality show? "No one ever doubted that Sarah Palin was a survivor, but she's taking that a step further by pitching a reality show with 'Survivor' producer Mark Burnett," the New York Daily News reports. "Palin and the master of reality television have been shopping a docudrama about Alaska to all the major broadcasters, multiple sources told EntertainmentWeekly.com. She and Burnett have taken meetings at ABC and CBS, with plans to stop by NBC. They also confabbed with reality chief Mike Darnell at Fox, where the Palin family seized the opportunity to visit 'American Idol,' though the former vice-presidential candidate stayed in the green room."

ARIZONA: The Boston Globe tees up Scott Brown's campaigning with Sen. John McCain, who it says "will attempt to enhance his conservative bona fides by hosting the party's new darling." They'll hit a campaign rally and fundraiser in Phoenix today, then a trip to Tucson tomorrow where they'll take in a University of Arizona basketball game. "This will be the first campaign event outside Massachusetts for Brown, who was virtually unknown outside his Wrentham state Senate district just three months ago. The new senator has received dozens of invitations from candidates wanting him to campaign on their behalf around the nation, but he has no other events scheduled beyond McCain's."

ARKANSAS: Sen. Blanche Lincoln released a new ad yesterday, featuring a room full of bickering children exemplifying "what it's like in Washington these days." And on the same day former President Bill Clinton endorsed Lincoln, the pro-choice group EMILY's List reiterated its withdrawal of support for her, which was first announced in 1999.

GEORGIA: "Rep. Nathan Deal (R-Ga.) will not be leaving Congress on Monday, as he announced earlier this week, but will instead stay through the upcoming House vote on a health care overhaul." This means Democrats need one more vote, 217, to pass health care.  

MASSACHUSETTS: "Representative William Delahunt will not seek re-election to Congress, the seven-term Democrat will announce [today], ending a nearly 40-year career in elected office and giving Republicans hope of capturing the seat," the Boston Globe reports. Stu Rothenberg moved the race from "Safe" to "Democrat Favored."   
 
NEW YORK: Dead man walking? "Gov. David A. Paterson lost another top administration official on Thursday, when his communications director announced that he could no longer 'in good conscience' continue in that role for the governor."
 
"Signs of unease" are surfacing among black political leaders, who have been among [Paterson's] strongest allies, the New York Times writes. "At the gathering on Thursday night at Sylvia's, the fabled restaurant where [Rev. Al] Sharpton regularly holds court, the question of resignation was on the minds of the dozens of black and Hispanic political leaders and ministers who attended. Tensions in the meeting ran high, participants said, with the group largely divided into two camps: a minority who felt the governor should leave office and a majority who said that the legal process must be allowed to play out first."   

"Paterson has sought the help of a veteran lawyer with a decent track record when it comes to helping someone in that office," the Times also reports. "The lawyer, Theodore V. Wells, Jr., was on the defense team that persuaded federal prosecutors not to charge Gov. Eliot Spitzer when he was under investigation in 2008 for patronizing a prostitution ring."   
 
WYOMING: With Gov. Dave Freudenthanl (D)'s retirement announcement, Republicans are expected to add another "top tier" candidate in a race Republicans are now expected to win, CQ reports: State Rep. Colin Simpson, the current state Speaker, whose father is Alan K. Simpson, a former Wyoming Senator whom President Obama recently named to a bipartisan debt-reduction commission.

From NBC's Mark Murray
While liberal groups and bloggers are coalescing around Bill Halter in his primary challenge to Arkansas Sen. Blanche Lincoln (D), Greg Sargent reports that former President Bill Clinton is backing Lincoln.

"Sen. Lincoln asked President Clinton several months ago to support her reelection," Clinton's spokesman told Sargent. "He said he would, and he does."

"[The spokesman] confirmed that this applies to the Dem primary, too, and declined further comment."

From NBC's Betsy Cline
In their respective weekly briefings, both House Speaker Nancy Pelosi and House Republican Leader John Boehner touched briefly on the abortion controversy stemming from the Democrats' health care proposal.

Pelosi said she wouldn't have a debate about abortion, because "this is not about abortion, this is a bill about providing quality health care for all Americans." According to Pelosi, if everyone agrees that "there is no federally funded abortion, ... there is no change to the access to abortion," then there is a health care bill, Democrats can and will pass it.

When asked about reports of Democratic defections over the abortion controversy, including Michigan Rep. Bart Stupak's line in the sand on MSNBC's Hardball with Chris Matthew yesterday, Pelosi said, "When people think there isn't going to be a bill, they can take whatever position they want," but now, "these members are saying, 'Let's talk'."

Boehner told reporters that under the Democrats' health care proposal, many Americans will pay a monthly fee to fund "elective abortions."

"Under the Senate bill, everyone who buys a health insurance policy at these so-called exchanges will pay a monthly abortion fee," he claimed. "That goes in a fund to pay for elective abortions. Some say a dollar-per-month isn't a tax, but you try to explain that to the American people."

*** UPDATE *** The First Read team searched the independent fact-checkers on Boehner's claim of a fee. Here's what a Politifact post from November says:

"But does the bill language dictate an abortion fee as Boehner says?
Usha Ranji, a policy analyst for the Kaiser Family Foundation, says no.

" 'I don't understand what [Boehner's] reference is to,' she said. The provision simply 'outlines some technical direction of how you would establish cost of an abortion benefit.'

"Lara Cartwright-Smith of George Washington University's public health school concurred, adding that everyone participating in the exchange would have the option of choosing a plan that does not include abortion. So, back to Boehner's claim. The bill does not require a fee, or a charge above and beyond the premium cost specifically to cover abortions. And technically speaking, we don't know whether the public option will offer abortion coverage or not. Instead, it gives the Health and Human Services secretary a minimum for estimating the cost of covering abortions. So we give Boehner a False."

*** UPDATE *** The bill passed the House 217-201

From NBC's Luke Russert and Domenico Montanaro
The $15 billion jobs bill, which passed the Senate last week 70-28, is on the House floor right now. The final vote will most likely be at around 3:00 pm ET.

A vote wasn't held earlier on the legislation because negotiations weren't complete with the Congressional Black Caucus, which saw the bill more as a tax-cut bill and not a jobs bill. Reportedly, a deal was cut to include an additional $1.5 billion "for a summer jobs program that sends funds to local organizations who hire unemployed youth during the summer," The Hill reported.

Republicans are upset because the final bill language was released at 9:35 am today, not giving them enough time to read the bill, they say.

Some details of the bill from Speaker Pelosi's office:

H.R. 2847, HIRE Act

Key Points: Getting Americans back to work is our number one priority and today we will take another step forward, with more action to come, in our multi-pronged effort to create jobs and strengthen our economy.  Today, the House will move forward with House amendments to the Senate amendments to H.R. 2847, the Hiring Incentives to Restore Employment (HIRE) Act, a bipartisan bill to create and save hundreds of thousands of jobs this year. This $15 billion measure includes:  A payroll tax holiday for businesses that hire unemployed workers, to create some 300,000 jobs and an income tax credit of $1,000 for businesses that retain these employees  Tax cuts to spur new investment by small businesses to help them expand and hire more workers  Extension of the Highway Trust Fund allowing for tens of billions of dollars in infrastructure investment  Provisions -- modeled after the Build America Bonds program - to make it easier for states to borrow for infrastructure projects, such as school construction and energy projects  This bipartisan job creation measure passed by a vote of 70-28 in the Senate last week, and is one in a series of measures this Congress will take to restore the American economy.  The House is making some modest changes to: ensure the bill is fully paid for, ensure that small businesses can take advantage of the payroll tax holiday, increase the bond subsidy for cash-strapped states, and continue requirements ensuring that a portion of the highway and transit funding goes to minority-owned businesses.  While this bill is not perfect, passing this measure now is critical to getting more Americans back to work soon and restoring confidence that the Congress can work together to take action to get our economy back on track.  In December, the House passed the broader Jobs for Main Street Act to rebuild highways and transit, expand small business lending so they can grow and hire, support job training and keep police and firefighters on the streets and teachers in the classrooms. We are also committed to taking action on additional job creating measures to help the chronically unemployed and improving the highway provisions in this bill in subsequent legislation.  The Senate is likewise committed to more action on jobs, including helping small businesses grow and hire more workers, investments in public services, and creating jobs through energy efficiency.  Over 10 years, the bill is fully paid for, while it makes key investments in business and infrastructure to help get us out of this economic crisis now.
Today, the House will consider House amendments to the Senate amendments to H.R. 2847, the Hiring Incentives to Restore Employment (HIRE) Act.

New Tax Incentives for Businesses to Hire Unemployed Workers

· Tax incentives for businesses to spur immediate job growth. A new payroll tax exemption would create a common-sense, targeted, and effective way to encourage employers to begin hiring unemployed workers today and is estimated to spur about 300,000 new jobs, according to economist Mark Zandi of Moody's Economy.com. [The Hill, 2/18/10 <http://thehill.com/blogs/blog-briefing-room/news/81945-economist-says-jobs-bill-could-create-300k-more-jobs>]

· Payroll Tax Exemption. Provides businesses with an exemption from Social Security payroll taxes for every worker hired in 2010 who has been unemployed for at least 60 days. (The maximum value of this incentive is $6,621, which equals to 6.2 percent of wages paid in 2010 up to the FICA wage cap of $106,800.) The longer that a business has a new qualified worker on its payroll, the greater the tax benefit. The House amendments incorporate an IRS fix to make sure that small businesses can take advantage of the payroll tax holiday.

· Bonus for Keeping Employees Long Term. Provides an additional $1,000 income tax credit for every new employee retained for 52 weeks. Estimated cost of these provisions: $13 billion over 10 years.

Spur Small Business Investments to Grow

· Small Business Expensing. Extends Recovery Act provisions that double the amount small businesses can immediately write off their taxes for capital investments and purchases of new equipment made in 2010 from $125,000 to $250,000. This will help small business make the investments they need to grow and hire more workers. Estimated cost: $35 million over 10 years.

Highways and Infrastructure

· School Construction, Energy Conservation and Renewable Energy. Allows qualified school construction bonds, qualified zone academy bonds, clean renewable energy bonds, and qualified energy conservation bonds to take advantage of the Build America bonds direct payment program. TIME magazine calls the Build America Bonds "one of the economic recovery efforts biggest successes." The House will act later to expand the Build America Bonds program. Estimated cost: $4.6 billion over 10 years.

· Transportation Extension. Extends surface transportation programs through December 31, 2010 to provide states and localities with the certainty they need to make decisions on capital-intensive projects and allow for billions more to be invested in infrastructure throughout the United States. It includes language continuing the application and enforcement of the minority-owned business enterprise contracting requirements for surface transportation projects.

· Avoiding a Highway Shortfall & Bolstering the Trust Fund. Transfers approximately $20 billion from the General Treasury and to the Highway Trust Fund (HTF), as the HTF is estimated to run short of funds in June. This transfer will reimburse the HTF for interest it should have collected in the past and will allow the federal government to support existing federal highway and transit programs through the end of this year at the levels authorized for Fiscal Year 2009. Under the bill, the HTF will be more financially healthy as it will able accrue interest going forward, just like other federal trust funds. The bill also restores $8.7 billion that was rescinded in SAFTEA-LU.

· Critical to Job Creation. Every $1 billion in federal funds creates 34,700 jobs. Construction-related manufacturing is operating at 68 percent of capacity and has an unemployment rate of nearly 25 percent.

Offsets

· Cracks down on Overseas Tax Havens. Provides the U.S. Treasury Department with significant new tools to find and prosecute U.S. individuals that hide assets overseas from the Internal Revenue Service. Recent events have highlighted the growing use of foreign financial institutions, foreign trusts, and foreign corporations by U.S. individuals to evade U.S. tax. In order to prevent this tax evasion, the bill would require new reporting by foreign financial institutions to give the IRS more data to detect fraud and tax evasion. Estimated to raise $8.7 billion over ten years.

· Delaying tax break for foreign interest payments. Delays for 3 years (through 2020) a questionable tax break enacted in 2004 that would let U.S. multinational companies that have shipped jobs overseas reduce their U.S. taxes by deducting more of their worldwide interest income against their U.S. income. This provision has not gone into effect, and not one company currently utilizes this provision. Estimated to raise $9.9 billion over 10 years.

From NBC's Athena Jones
Calling transparency among health insurance providers "an important step for consumers" Health and Human Services Secretary Kathleen Sebelius said companies should make information about their requests to raise insurance premiums available online.

Sebelius made the remarks after a meeting with executives from the nation's top insurance providers and a handful of state insurance commissioners on how to bring down health care costs.

"I'm hoping the CEOs respond to the call" of putting this information up in public so the administration can "shine a bright light" on their practices, she said.

The call comes just weeks after WellPoint's Anthem Blue Cross proposed raising premiums by as much as 39% in California. That rate increase request has been withdrawn for at least two months and the California insurance commission has opened an investigation into the matter, Sebelius said.

Sebelius told reporters President Obama had stopped by the meeting briefly to share his concerns about the current system, which he believes is "simply unsustainable," something she said was acknowledged by the company executives present. And in a rare direct reference to the political opposition to the health care overhaul legislation the administration hopes will work its way through Congress by the Easter recess, the secretary spoke about "a big disagreement" between Republicans' strategy and the president's strategy.

"Republicans at the end of the day feel it's acceptable to have a risk pool that only has sick people in it," Sebelius said, a reference to group people with pre-existing conditions in high risk pools. "The president said we need a different marketplace."

The meeting's participants included: WellPoint, Inc. CEO Angela F. Braly; CIGNA HealthCare, Inc. CEO David M. Cordani; Health Care Service Corporation CEO Patricia Hemingway-Hall; Aetna, Inc. CEO Ronald Allen Williams; UnitedHealth Group CEO Stephen Hemsley; Pennsylvania Insurance Commissioner Joel Ario (Chair NAIC Health Committee); Kansas Insurance Commissioner Sandy Praeger (Chair NAIC Health Committee); West Virginia Insurance Commissioner Jane Cline (President, NAIC); NAIC Executive Director Therese Vaughan.

Early in the meeting, Aetna CEO Williams acknowledged the need to bring down costs across all parts of the health care delivery system -- from pharmaceutical companies to hospitals to device manufacturers -- to help bring down premiums.

"We do things that don't need to be done in terms of paying for procedures and not paying for results," he said.

From NBC's Domenico Montanaro
Who, Blanche Lincoln, a Washington, D.C., Democrat?

Lincoln, one of the most vulnerable Democratic incumbents running for re-election this year, is up with a new ad seeking to distance herself from Washington -- and the Democratic Party.

The ad depicts Washington as rowdy schoolchildren. "This is why I voted against giving more money to Wall Street, against the auto company bailout, against the public option health care plan, and against the cap and trade bill that would have raised energy costs on Arkansans," Lincoln says in the ad. "None of those were right for Arkansas. Some in my party didn't like it very much. But I approved this message because I don't answer to my party. I answer to Arkansas."

The ad is running from March 5-12 statewide. A Lincoln source calls it "a substantial buy."

From NBC's Betsy Cline
House Speaker Nancy Pelosi said today the American people ought to know more about what she called "total obstruction" by the Republican Party in the Senate. Referring to Sen. Jim Bunning's hold-up of unemployment benefits earlier this week, Pelosi said, "It's not about rules, it's about a decision they've made to obstruct."

"The idea you need 100 percent in order to proceed is something the American people should know more about," she said.

In her weekly briefing on Capitol Hill, Pelosi seemed encouraged about passing health reform: "Our members are very excited about what comes next," but she cautioned, "Every legislative vote is a heavy lift around here, assume nothing."

Pelosi was also asked if the Democratic Party was in crisis, to which she responded, "I feel strong. We were very effective in passing the Obama agenda in 2009," but she said, "When you're effective, you're a target.

From NBC's Pete Williams
Wyoming political sources say Gov. Dave Freudenthal will announce today that he will not run for a third term.

The two-term Democrat is hugely popular, winning re-election in 2006 by the largest margin in state history. His high approval ratings are especially surprising in a staunchly Republican state.

The Wyoming governorship will now almost certainly switch back to Republican control. No Democrats in the state have anything approaching Freudenthal's popularity. Republicans who have already announced their candidacies include Matt Mead, grandson of former Wyoming Sen. Cliff Hansen. Another who may now get into the race is state House Speaker Colin Simpson, son of former Wyoming Sen. Al Simpson.

Had Freudenthal decided to run again, he would have faced a state law limiting the state's top elected officials to two terms. But it was expected that he could have successfully mounted a challenge to the law under the state constitution. The Wyoming Supreme Court earlier invalidated a term limit for state legislators.

From NBC's Shawna Thomas and Domenico Montanaro
Pete Stark's tenure as chairman of the House Ways and Means Committee may go down as the shortest chairmanship in history.

Democrats have chosen Michigan Congressman Sander Levin, 78, as Ways and Means chairman, replacing embattled Rep. Charlie Rangel (D-NY), who relinquished his chairmanship yesterday amid an ongoing ethics investigation, according to Rep. Chris Van Hollen. The decision does not have to go to the full house for a vote.

Here's some of AP's reporting: "House Speaker Nancy Pelosi announced the appointment at a closed door caucus meeting, the spokesman said. Democratic Rep. Pete Stark of California had been in line for the post based on seniority. But a Democratic lawmaker said he chose instead to remain chairman of the panel's health subcommittee."

Many Democrats had been concerned about some of Stark's prior comments, many of which have been highlighted by Republicans.

*** UPDATE *** Van Hollen, chairman of the DCCC,  said that Stark wanted to stay on as the Chairman of the House Subcommittee. "It's obviously an issue he's been very involved in ," Van Hollen said, "and in his view it didn't make sense to switch horses midstream on the health care subcommittee. It's a critical juncture and the next [in line] according to the rules would be Sandy Levin."

When asked if the full House needed to vote on Levin being the next chairman, Van Hollen said, "Under the rules of the temporary chairmanship, this is now complete."

Are we all experiencing 2006 déjà vu?... President Obama's doubles down on health care… Rove admits in his book -- point blank -- that Bush went to war under false pretenses in Iraq… Trying to make sense of the Democrats' Massa Mess… Co-chairs at Ways and Means? … Club for Growth goes after Bennett in Utah… Giannoulias' struggles in Illinois… And the name (blame) game down in Texas.

From Chuck Todd, Mark Murray, Domenico Montanaro, and Ali Weinberg
*** Back to the Future: Who else has the feeling we've jumped into a time machine -- DeLorean or hot tub, your pick -- and traveled back to 2006? A powerful congressional leader (swap Tom DeLay for Charlie Rangel) has stepped down from his powerful leadership post. A congressman hailing from the majority (swap Mark Foley for Eric Massa) is battling allegations of misconduct with underlings/staffers. The president's top domestic priorities (swap Social Security and immigration for health care and cap-and-trade) are in trouble. And the party in power is staring at the distinct possibility of losing lots of seats, maybe even its majorities, in the upcoming midterms. Just to add to the 2006 déjà vu, Reuters has this news from Iraq ("Suicide bombers killed seven soldiers and wounded 25 in two separate attacks on polling centres in Baghdad as security forces, inmates and the infirm took part in early voting ahead of Iraq's national polls"), and Karl Rove is back in the news with his new memoir defending George W. Bush's legacy.

*** Boy, that escalated quickly. I mean, that really got out of hand fast: What should be particularly striking is that the GOP woes in 2006 came after a decade in control of Congress and in Bush's sixth year in office; for Democrats, this bad news is coming after three-plus years in the congressional majority and in their president's second year. On the bright side for Democrats, we guess, is that these troubles are coming a full eight months before the midterms, giving them time to repair the damage and hope for better news (that the economy turns around, that health care gets passed). Still, folks should take a bit of a deep breath, because the key word in describing a volatile political environment is the word "volatile." And when there is time before an election, there's time for more volatility.

*** The health-care gamble: Turning to President Obama's health-care speech yesterday, we thought this was his most striking line: ''At stake right now is not just our ability to solve this problem, but our ability to solve any problem. The American people want to know if it's still possible for Washington to look out for their interests and their future.'' The AP's Ron Fournier interprets this line as Obama running against Washington, casting himself as the outsider as he sits inside the White House. But it's also an admission that if he CAN'T get this done now, it's proof that Washington is truly broken. Lost in all the debates over process -- should Senate Democrats use reconciliation, what kind of assurances should House Democrats receive from the Senate? -- is what a HUGE political gamble this now is for the president. He's doubling down on health care. And if he can't get this done, it will diminish his presidency as it will send a signal he can't lead his own party. It would also signal that, despite their significant majorities, congressional Democrats can't govern, either. Which, of course, is what that line in the president's speech basically warned, and it's the LAST best political pitch the White House has with wavering House Democrats.

*** Rove's admission: Speaking of Karl Rove's new memoir, is it us, or does he admit in his book -- point blank -- that George W. Bush went to war in Iraq under false pretenses? "Would the Iraq war have occurred without W.M.D.? I doubt it," Rove writes. "Congress was very unlikely to have supported the use-of-force resolution without the W.M.D. threat. The Bush administration itself would probably have sought other ways to constrain Saddam, bring about regime change, and deal with Iraq's horrendous human rights violations." Wow. Many in the chattering class take for granted the facts regarding WMD and Iraq now, but to have someone THIS close to the former president tell the world that this war was waged under false pretenses is stunning. Now partisans on both sides will get into their corners, but Rove has re-opened the Iraq debate again, and it's happening on the eve of one of the most crucial periods in THAT country's history. 

*** The Massa mess: Regarding Rep. Eric Massa's (D) retirement and the allegations of misconduct with his staffers (which he denies, saying his retirement is due to a recurrence of cancer), House Majority Leader Steny Hoyer's office released a statement that suggested there's smoke to the proverbial fire. "The week of February 8th, a member of Rep. Massa's staff brought to the attention of Mr. Hoyer's staff allegations of misconduct that had been made against Mr. Massa. Mr. Hoyer's staff immediately informed him of what they had been told. Mr. Hoyer instructed his staff that if Mr. Massa or his staff did not bring the matter to the attention of the bipartisan Ethics Committee within 48 hours, Mr. Hoyer would do so. Within 48 hours, Mr. Hoyer received confirmation from both the Ethics Committee staff and Mr. Massa's staff that the Ethics Committee had been contacted and would review the allegations. Mr. Hoyer does not know whether the allegations are true or false, but wanted to ensure that the bipartisan committee charged with overseeing conduct of Members was immediately involved to determine the facts."

*** Another GOP pick-up opportunity: Still, we suggest that everyone take a deep breath with this story. It was pretty astonishing to watch all of collective Washington immediately jump to the Mark Foley comparisons. But there is one key difference: The Foley news came just weeks before Election Day 2006, while we're still eight months away from the midterms. That said, Massa's retirement is very good news for Republicans and bad news for Democrats. He represents a swing district in upstate New York that used to be reliably Republican. This is a huge opportunity for the GOP. 

*** Leap frog game at Ways and Means: By the way, here's our latest reporting on who will succeed Rangel at the House Ways and Means Committee. Speaker Nancy Pelosi -- as a compromise -- is pushing a co-chair idea for rest of this year for both Pete Stark and Sandy Levin. Stark offered to be chair until November only, but Ways and Means Democrats couldn't unite around that, either. Pelosi would like to avoid a full caucus vote on this issue, though Stark is pushing that. Ways and Means Democrats are meeting again today in an attempt to resolve this without having to go to entire Dem caucus.

*** The Club vs. Bennett: Pegged to Utah's upcoming March 23 precinct caucuses, the Club for Growth is running a TV ad targeting Sen. Bob Bennett. We've said before that this is the best GOP primary no one is talking about. Here's the TV ad: "Since Utahns last sent Senator Bob Bennett to Washington, he voted to bail out Wall Street, voted for billions in wasteful spending like Alaska's 'Bridge to Nowhere,' even joined with liberals supporting big government health care. Had enough? On March 23rd, vote for a change at your local Utah Republican precinct caucus. To learn more, go to StopBobBennett.com." Our question, the Club has targeted only two other incumbent senators -- Arlen Specter and Lincoln Chafee -- THIS aggressively in the past. But is Bennett really in the same ideological category as Specter and Chafee?

*** Alexi's troubles: Meanwhile, in Illinois, Alexi Giannoulias is trying to get out in front of more damaging stories about his family's bank. "Democratic U.S. Senate candidate Alexi Giannoulias sought to blunt a potentially damaging political issue today about questions regarding his involvement in his family's struggling bank, which he said he expects will likely fail in the coming months," the Chicago Tribune reports. "But questions were still left unanswered following a more than 70-minute meeting with the Chicago Tribune's editorial board. Among them were exactly what Giannoulias knew about convicted bookmaker Michael Giorango's criminal past when he received loans from Broadway Bank, and how many of the bank's troubled loans were made while Giannoulias was working there." Does the White House and Illinois Democratic Party deserve blame here for having a nominee with this kind of baggage? This wasn't news; everyone with Chicago ties that now resides in Washington was fully aware of this baggage, and even privately worried about it. How comfortable is the president of the United States going to be campaigning for the Dem nominee in his home state? Will every event Obama does in Illinois be a joint event with the governor or entire Dem Party?

*** The name game: Republican political consultants who are trying to improve the GOP's standing with Latino voters might consider this a troubling development. In the Texas GOP primary Tuesday night, a virtually unknown CPA (David Porter) surprisingly defeated a sitting commissioner on the powerful Texas Railroad Commission (Victor Carrillo), despite being greatly outspent. And Carrillo is now attributing his loss to his Hispanic surname. "Given the choice between 'Porter' and 'Carrillo' -- unfortunately, the Hispanic-surname was a serious setback from which I could never recover although I did all in my power to overcome this built-in bias," Carrillo said. "I saw it last time but was able to win because the 'non-Carrillo' vote was spread among three Anglo GOP primary opponents instead of just one. Also, the political dynamics have changed some since 2004." Of course, Carrillo's charge could simply be sour grapes. Still, it's also clear -- with Rick Perry's flirtation with secession and with Debra Medina getting 18% on Tuesday -- that this is no longer George W. Bush's Texas GOP.

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The New York Times: "President Obama, beginning his final push for a health care overhaul, called Wednesday for Congress to allow an 'up or down vote' on the measure, and sketched out an ambitious — and, some Democrats said, unrealistic — timetable for his party to pass a bill on its own within weeks."

The Washington Post adds, "In a speech at the White House, Obama urged Congress to "finish its work" on health care and indicated support for a strategy that includes the budget maneuver known as reconciliation, which would protect the final product from a Republican filibuster in the Senate. Obama told an audience of medical professionals that Congress 'owes the American people a final vote on health-care reform.'"

The Boston Globe: "Obama's comments, the strongest public tactical direction he has offered in the 15-month battle over health care overhaul, were welcomed by Democrats, some of whom have been grousing privately that Obama needed to show more leadership."

Roll Call writes of Obama's message to Congress yesterday: "No more meetings. No more compromises. Pass a final health care reform bill within the next three weeks."

Roll Call also reports on this good news for Democrats -- moderates appear open to the idea of reconciliation now, a change from a year ago.

Democratic Rep. John Dingell has this op-ed in the Detroit News: "While we would prefer to have bipartisan support for health care reform, the universal opposition of Republicans leaves us no option other than to consider using budget reconciliation going forward. This is despite the historic efforts of President Barack Obama to incorporate the ideas of anyone willing to seriously help cut our spiraling, out-of-control health care costs."

"And don't be fooled by rhetoric that reconciliation is a gimmick. It's not. Reconciliation has been used to reform health care before. COBRA health insurance subsidies for the unemployed, the Children's Health Insurance Program and Medicare Advantage all passed under reconciliation. Between 1981 and 2008, reconciliation has been used 21 times. The vast majority of the bills -- 16 out of the 21 -- have been initiated by Republicans. And many of these were for sweeping policy changes. Most recently, Republicans used the reconciliation process to enact the $1.3 trillion George W. Bush tax cuts."

Stu Rothenberg notes how much has changed in a year for Democrats -- and how they botched health reform. "Unfortunately for Democrats, passing legislation between now and November isn't likely to change the political landscape nationally, though it could close the enthusiasm gap by energizing Democratic voters who have been disappointed by the Obama administration's performance… Still, Democratic leaders from the White House to Congress have to do anything they can to alter the trajectory of the 2010 elections, and with eight months to go until Election Day, almost anything is possible. But the one thing Obama and Congressional Democrats need is some good news."

"Rep. Eric Massa (D-N.Y.) said Wednesday that he has used 'salty language' with staff but that it's not the reason he's retiring, The Hill writes. Massa announced he would retire from Congress after just one term, but said reports that he is under investigation for sexually harassing a male staffer are besides the point."

Roll Call: "Ironically, Massa prospered politically in part because of the whiff of scandal surrounding the man he ousted last cycle, then-Rep. Randy Kuhl (R-N.Y.). When Kuhl was first running for the seat in 2004, details of a prior drunken driving arrest and his messy divorce became public -- including testimony that he had threatened his ex-wife with two shotguns -- and Kuhl never really regained his political footing, even though he won two House terms (defeating Massa by 3 points in 2006). Kuhl on Wednesday night hinted that he might run for his old seat, but he mostly sent best wishes to Massa in a two-paragraph statement."

Details of allegations of sexual harassment were not clear. "The incident, which was described only as a situation where a member of Massa's staff was made to feel uncomfortable, was relayed on Feb. 8 by a Massa staff member to the staff of House Majority Leader Steny Hoyer (D-Md.), according to Hoyer's office," The Hill notes, adding that "the exact nature of the complaint itself remains shrouded in mystery. A Democratic aide said a Massa staffer was made to feel uncomfortable but it was not detailed how… Democratic aides said they understood the Ethics Committee was still gathering information about the complaint, meaning the committee may not have informed Massa that they had launched a formal inquiry."

The AP adds, "The allegation involved a male staffer, a House aide told The Associated Press, but the aide wouldn't characterize the allegation further."

The New York Daily News, which broke the story of Massa's retirement, writes: "A top Washington Democrat compared Massa, 50, to disgraced former GOP Rep. Mark Foley, who quit in 2006 amid charges of sending sexually explicit messages to male congressional pages. 'Massa just killed us,' the Democrat said. 'It's like what Foley did to them in the last cycle.' That scandal tainted numerous Republicans who were accused of covering up for Foley."

Here's video of Massa's statement.

Turning to the Rangel/Ways and Means story… "Rep. Pete Stark (Calif.) may have the shortest chairmanship in the young history of the House Democratic majority," Roll Call reports, adding, "The leaders' original plan -- to keep the chairmanship in Stark's hands -- met stiff resistance Wednesday from committee members who feel the unpredictable Californian is too great a liability to helm the powerful tax-writing panel. After huddling for several hours Wednesday, panel members broke in the early evening with no decision and planned to reconvene in the morning."

"Junior Senate Democrats are pushing their leaders to take a much more aggressive stance toward the Republican minority, arguing that their defeat of Sen. Jim Bunning's (R-Ky.) unemployment benefits blockade this week proves a strategy of an active offense is far better than a passive defense," Roll Call writes.

"House Democrats are nearing a deal with the Congressional Black Caucus (CBC) that could allow a vote on the Senate jobs bill Thursday, according to senior members," The Hill reports, adding, "To address CBC concerns, House leaders are considering a proposal to add $1.5 billion to the bill for a summer jobs program that sends funds to local organizations who hire unemployed youth during the summer, said Rep. Emanuel Cleaver (D-Mo.), the CBC vice chairman."

The Republican National Committee plans to raise money this election cycle through an aggressive campaign capitalizing on "fear" of President Barack Obama and a promise to "save the country from trending toward socialism," Politico's Ben Smith reports. "In neat PowerPoint pages, [the presentation] lifts the curtain on the often-cynical terms of political marketing, displaying an air of disdain for the party's donors that is usually confined to the barroom conversations of political operatives.

"Karl Rove, the chief political adviser to President George W. Bush and architect of his two successful campaigns for the White House, says in a new memoir that Mr. Bush probably would not have invaded Iraq had he known there were no unconventional weapons there," the New York Times says. "Mr. Rove adamantly rejects accusations that the administration deliberately lied about the presence of such weapons in Saddam Hussein's Iraq. But he acknowledges that the failure to find them badly damaged Mr. Bush's presidency, and he blames himself for not countering the narrative that 'Bush lied,' calling it 'one of the biggest mistakes of the Bush years.'"

ARIZONA: It's 2006 all over again, but not in the way you'd think: "Sen. John McCain (R-Ariz.) is using J.D. Hayworth's legal trust to hammer his primary opponent about his entanglement in the Jack Abramoff lobbying scandal," The Hill reports.

CONNECTICUT: Senate candidate and WWE CEO Linda McMahon is out with a new campaign ad, with her daughter narrating Linda's role in building up the wrestling empire.

ILLINOIS: State Treasurer Alexi Giannoulias acknowledged Wednesday that his family bank, Broadway Bank, will probably fail," the Chicago Sun-Times reports. Starting a tour of 'clearing the air' meetings with the media to talk about the bank that entered a consent decree with federal regulators just before the primary election, Giannoulias admitted, in hindsight, he probably should not have focused so much on real estate. 'I take my share of responsibility for possibly concentrating too much in commercial real estate,' Giannoulias told the Sun-Times' editorial board." 
 
KENTUCKY: Secretary of State and Senate candidate Trey Grayson is up with a new TV ad, playing up his record of cutting spending and reducing waste.  
 
MICHIGAN: Mike Huckabee endorsed Republican gubernatorial candidate Mike Cox.

NEW YORK: Lookin' for Guv in All the Wrong Places: "Gov. Paterson was called out and charged yesterday by the state's top watchdog agency with breaking the law by improperly soliciting $6,000 worth of free World Series tickets from the Yankees and then lying about it under oath to investigators," the New York Post reports.

The New York Post has this headline: "Et tu, Rev. Al?" "The Rev. Al Sharpton, one of Gov. Paterson's last remaining backers, has called an 'emergency meeting' today in Harlem to reassess the governor's ability to stay in office, The Post learned last night. Ominously for Paterson, Sharpton refused in an interview to say if he still believes the governor should remain in the job."

What's worse -- hookers or an affair? Eliot Spitzer to Time magazine: "Asked why not just have an affair, instead of going to hookers, Spitzer said, 'I know this is parsing it very thin, but the emotional component would have in some ways been a worse violation.'"

"Mayor Bloomberg thinks Sen. Kirsten Gillibrand could have been defeated by either one of the people who were considering running against her," the New York Post writes. "Bloomberg also believes New Yorkers would have been 'better off' with more choices… The mayor is a friend of Zuckerman, and a few of his ex-campaign aides were helping Ford in his exploratory effort."

The New York Daily News looks at potential successors from Harlem to replace Rangel: "Harlem's skies were filled with trial balloons Wednesday as a bevy of politicians floated their names as potential successors to Rep. Charles Rangel."

NORTH DAKOTA: Former Attorney General Heidi Heitkamp (D) will not run for Senate against Republican Gov. John Hoeven. 
 
TEXAS: Analyzing Gov. Rick Perry's win over Sen. Kay Bailey Hutchison, the AP writes, "Perry didn't just catch the anti-establishment, anti-Washington wave of the nascent tea party movement. He saw it coming, then helped shape it and might now even be considered one of its leaders… Perry was the consummate Texas country boy. He skewered federal bureaucrats and political insiders with a deep Paint Creek drawl that he can turn on and off at will. He made 'stimulus' sound like a dirty word. This isn't Bush's compassionate conservatism. His is a full-throttle, blue-collar, pro-gun, states' rights, red-meat conservatism." (That said, the Tea Party candidate in the race did get almost 19% of the vote.) 
 
UTAH: The Club for Growth has a new ad against Sen. Robert Bennett, criticizing him for supporting the bank bailout and his "joining with liberals on big-government health care."

From NBC's Brenda Shepard and Jessica Stringfield
In a conference call with reporters today, the campaign of New Hampshire Senate candidate Paul Hodes (D) seized on GOP Senate candidate Kelly Ayotte's stated opposition to the $15 billion jobs bill that passed the Senate last week.

"Hodes is offering solutions, and all we're getting from [Ayotte] is silence and political rhetoric," Hodes Communications Director Mark Bergman said on the call. 

Ayotte "hasn't offered any real concrete ideas," added Hodes Campaign Manager Martin. "This is the most important issue facing Granite Staters every day. They're worried about their jobs. They're worried about keeping their jobs, finding one. And she's yet to put anything on the table that's really substantive that would actually include the economy."

In an interview with ABC this week, Ayotte said this about the Senate jobs bill: "I don't think that particular proposal I would have supported... I did like pieces of it. I liked the payroll tax-cut piece. There were other pieces of spending in it that I don't think we would have; one of the concerns I had with the bill is how we're going to pay for it. And there wasn't a proposal on the table to say we're going to have corresponding cuts to pay for it, or even we're going to use existing stimulus money to pay for it."

*** UPDATE *** Ayotte's camp responds: "Paul Hodes' campaign lecturing anyone on job creation is absurd. His plan to grow jobs has already failed, giving him zero credibility on this issue. Hodes outrageously claimed the stimulus would create millions of jobs, but instead we've seen 2.8 million jobs lost and unemployment hovers near 10%. Hodes is down in Washington working against New Hampshire's small business owners. His push for a government takeover of health care, paid for with higher taxes, is an obvious job killer. The same can be said for his vote to pass 'cap and trade,' a de facto national energy tax, and his support for the patently undemocratic 'card check' bill. Bottom line, Paul Hodes has created a culture of uncertainty that makes it difficult for Granite State business owners to plan, invest and hire workers."

From NBC's Athena Jones
Saying the American people and the American economy could not afford to wait another decade or more to pass a meaningful overhaul of the health care system, President Obama on Wednesday urged Congress to "finish its work" and get a bill to his desk.

Revamping the nation's health care system has long been at the top of the president's domestic agenda and the issue has sparked rancorous debate, especially during a series of town hall meetings last summer. Critics say Obama has spent too much time and too much political capital on the issue at the expense of focusing on efforts to put Americans back to work.

Today's brief remarks represented what the White House hopes will be the beginning of the final act in the long and winding saga to pass health care legislation. The goal is to get the bill through Congress in the "next few weeks" -- ideally before the Easter recess -- with the House passing the Senate bill with fixes and the Senate passing the fixes through reconciliation, which requires a simple majority rather than the 60 votes needed to break a filibuster. Obama today sought to make the case for moving forward quickly, given consistent and unified Republican opposition to the plan after a year of debate.

"I believe the United States Congress owes the American people a final vote on health care reform," he said to applause before East Room audience of health care professionals from around the country, many of them wearing their trademark white coats. "We have debated this issue thoroughly, not just for the past year, but for decades. Reform has already passed the House with a majority. It has already passed the Senate with a supermajority of sixty votes."

The president went on to name past bills that passed using reconciliation -- though he used the term "up-or-down vote" -- including welfare reform, the Children's Health Insurance Program, COBRA health coverage for the unemployed, and both Bush tax cuts.

Obama's proposal would expand coverage, adding some 30 million people to the health insurance rolls, ban discrimination against people with pre-existing conditions, expand Medicare prescription drug coverage and provide subsidies to low-income people to help them buy coverage. It would pay for these changes by taxing high-cost health plans and reducing Medicare spending.

The administration and many Democratic members of Congress have long-emphasized that a piece-meal approach to the health care overhaul simply won't work, points the president repeated at last week's televised bipartisan health care summit at Blair House, across the street from the White House. The administration is confident Democrats in Congress will be able to muster the votes for the roughly $950 billion plan.

In a letter to congressional leaders from both parties yesterday, the president offered to consider Republican ideas to combat fraud, increase Medicaid payments to doctors, expand funding for pilot programs to resolve medical malpractice disputes -- for instance through health courts -- and expand Health Savings Accounts as part of the planned overhaul.

"This is our proposal; this is where we've ended up," Obama said. "It's an approach that has been debated and changed and I believe improved over the last year. It incorporates the best ideas from Democrats and Republicans - including some of the ideas that Republicans offered during the health care summit."

House Minority Leader John Boehner shot down the offer to include the Republican proposals in a bill he sees as fundamentally flawed.

The president, whose last best push on health care has him hitting the road next week to sell his proposal in Philadelphia and St. Louis, closed his remarks by arguing that congressional passage of this overhaul legislation was not just about bringing down health care costs.

"At stake right now is not just our ability to solve this problem, but our ability to solve any problem," he said. "The American people want to know if it's still possible for Washington to look out for their interests and their future. They are waiting for us to act. They are waiting for us to lead. And as long as I hold this office, I intend to provide that leadership. I do not know how this plays politically, but I know it's right."

From NBC's Mark Murray
Later this afternoon, President Obama hosts a reception at the White House thanking members of Congress for their efforts to pass pay-as-go (PAYGO) legislation -- something congressional Blue Dogs have championed. And as we mentioned earlier this morning, don't be surprised if the president tries to twist some arms on health care.

The White House has released a list of the 31 senators and members of Congress who will be attending. As it turns out, 10 of the House members attending voted against the health-care legislation that passed last year: Jason Altmire (PA), Allan Boyd (FL), Lincoln Davis (TN), Stephanie Herseth-Sandlin (SD), Frank Kratovil (MD), Betsy Markey (CO), Jim Matheson (UT), Scott Murphy (NY), Heath Shuler (NC), and John Tanner (TN).

Sixteen House members attending this afternoon -- including Speaker Nancy Pelosi and Majority Leader Steny Hoyer -- voted for the bill.

And all five senators attending voted for the Senate bill that passed on Christmas Eve, but would probably be needed on a reconciliation vote: Mark Begich (AK), Michael Bennet (CO), Kent Conrad (ND), Claire McCaskill (MO), and Arlen Specter (PA).

From NBC's Luke Russert and Domenico Montanaro
An aide to the Democratic Leadership confirms New York Rep. Eric Massa is not running for re-election.

There is no confirmation as to the reasoning at this point. Massa is expected to hold a 3:30 pm ET conference call to make the announcement.

Massa, a freshman, represents an Upstate New York district. Massa won the longtime GOP-held seat in 2008 by a 51%-49% margin over former Rep. Randy Kuhl. McCain won the district 51%-48% in 2008; Bush won it 56%-42% in 2004.

Massa's retirement gives Republicans yet another House target. He is 16th Democrat not running for re-election to their House seat this cycle. While more Republicans -- 20 -- won't be running for re-election, more of those Democratic seats are in competitive districts.

*** UPDATE *** NBC's Shawna Thomas reports that Massa spoke to camera this afternoon on why he wasn't running for re-election. He cited a reoccurrence of cancer. He read from a statement and said that last December, he went through another cancer scare. He said he had told his family but not his staff.

On the allegations that he is not running because of sexual harassment of a male staffer, he said, "Do I use salty language? Yes."

On a conference call earlier, he said, per Hotline, "Do I, or have I ever used salty language when I am angry, especially in the privacy of my inner office or even at home? Yes I have and I have apologized to those who where it's appropriate. But those kinds of articles, unsubstantiated without fact or backing, are a symptom of what's wrong with this city."

*** UPDATE 2 *** Here's Massa's statement that he read to camera:

"This last December I underwent my third major cancer recurrence scare.  I kept this private only to members of my immediate family. I did not tell my Staff. It was a every intense and personal experience especially in light of having gone through this before. I am a direct, salty guy who runs at 100 miles per hour and my doctors have now clearly told me that I can no longer do that. It is only fair and right that I announce that I will not run again in time for others to consider a run for this office. I will now enter a final phase of my life at a more controlled pace and remained fully committed to helped the families of the 29th District.

"There are blogs that are saying that I am leaving because of charges of harassing my staff. Do I and have I used salty language? Yes, and I have tried to do better. But these blogs are a symptom of the problem in this city and I no longer have the life's energy to fight every battle. I make this decision based on being a cancer survivor who following the advice of my doctors in Washington and in New York, cannot and will not prevent others from serice in the contgress that I hold in such great esteem."