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  • Bachmann reaffirms opposition to Boehner bill

    WASHINGTON, DC -- During a roughly 30-minute speech at the National Press Club, Republican presidential hopeful Michele Bachmann delivered a critique of the size of the federal government, and vowed to oppose any plan that would raise the debt ceiling -- promising she had the "titanium spine" to see her position through.

    The speech came as the House was preparing to vote on a hotly debated bill plan designed by Speaker John Boehner, which would raise the debt limit in exchange for key cuts. 

    Bachmann said she opposes the legislation, but praised Boehner during her speech.

    "Even today, as we are here gathered for this luncheon in this august room," Bachmann said, "we do not have a plan from the president. Now again, John Boehner has put forward a plan. I embrace those principles."

    Reserving her criticism for President Obama, Bachmann took issue with the language of the  president's primetime address Monday night. "The president called raising the debt limit the 'routine' thing that's done in Washington, DC.  I'm here to say to all of you today that's the problem," Bachmann said. 

    Calling for a restructuring of the size and reach of the federal government, Bachmann challenged Obama to resolve the debt crisis by paying off the interest on the national debt. "It is non-negotiable that we maintain the full faith and credit of the United States of America," she said.

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  • Pawlenty talks electability and experience

    CHEROKEE, IOWA -- Republican presidential candidate Tim Pawlenty spent his day here asking GOP voters to consider electability in the run-up to next month's Ames straw poll and next year's Iowa caucuses.

    "It's not much of a consolation prize for Iowa to have somebody who's right for that moment, who's exciting for the day but really can't be the nominee of the party, really can't beat Barack Obama," he said in Carroll.

    In four campaign stops throughout the state today, the former Minnesota governor split his time between criticizing President Obama and highlighting the inexperience of his competitors in the GOP field.

    "Any bobble head can stand up here and say the right words as a Republican candidate... The question is have you done it," he said in Jefferson.

    For most of today, Pawlenty shied away from naming names. He mentioned fellow Minnesotan and presidential hopeful Michele Bachmann and just once, saying: "What I've tried to say generically is, whether it's Congresswoman Bachmann or anyone else, and there's been a little back-and-forth with her and me, is that I think it's just basic common sense...to put somebody in the office who's had executive experience."

  • A delay on Boehner's bill

    A Democratic aide tells NBC News that the GOP floor staff informed Democrats that a vote on Speaker Boehner's bill will be delayed. Republicans, however, have yet to confirm that news.

    After debate is completed on the bill in the next 20 to 30 minutes, according to the Democratic aide, there will NOT be a final vote on the Boehner bill; instead they will move to suspension bills, in this case naming post offices.

    This does not mean that they won't vote on the Boehner bill tonight -- it just means the vote is delayed.

    Why the delay? Democrats are speculating that Boehner and House Republicans do not have the votes, although that has not been confirmed.

    More as it happens.

    *** UPDATE *** It's official, per NBC's Chuck Todd and Mike Viqueira: Boehner's bill has been pulled off the floor for the time being. The House is now re-naming post offices.

  • Van Hollen: Trigger mechanism a way to get compromise

    Congressman Chris Van Hollen, ranking member of the House Budget Committee, hinted at the possibility of a deal between House and Senate leaders to raise the debt ceiling before the Aug. 2 deadline.
     
    "If you can create a mechanism so that if you don't get the deficit savings through the normal process, you have these triggers that guarantee that deficit savings in a balanced way through both spending cuts, but also revenue, then you can get there," Van Hollen said on MSNBC's "Andrea Mitchell Reports."
     
    The Maryland Democrat said this would be possible because it would guarantee deficit reduction, so that congress could "extend the debt ceiling for whatever period of time" it wants.
     
    "We have always said we should have triggers in order to provide that guarantee that you get the deficit reduction. What's always happened is that our Republican colleagues have refused to have balance," he said.

  • Boehner's magic number tonight: 216

    Speaker John Boehner's magic number for passage of his debt bill is 216 votes.

    Rep. Gabby Giffords (D-AZ) is still recovering from her gunshot wounds and will not vote.

    Rep. Maurice Hinchey (D-NY) is recovering from colon cancer surgery and will not vote.

    With the two other House vacancies -- in New York (Anthony Weiner's old seat) and in Nevada (Dean Heller's) -- the total number of House members is 431 members

    Interestingly, Rep. David Wu (D-OR) has said he will resign after the debt vote, even though he is accused of having an unwanted sexual encounter with a teenage girl. The Democratic Leadership is fine with him staying around until after the debt issue.

  • Perry's backtrack

    After being assailed by some social-conservative groups, potential presidential contender and fierce states-rights advocate Gov. Rick Perry (R-TX) reversed his statement last week that he is "fine with" New York's new same-sex marriage law that he called the state's "business."

    In an interview with socially conservative Family Research Council President Tony Perkins, Perry said he remains opposed to gay marriage and that he should have added "a few words" to clarify the statement. 

    "I probably needed to add a few words after that 'it's fine with me,' and that it's fine with me that a state is using their sovereign rights to decide an issue," Perry said according to FRC. "Obviously gay marriage is not fine with me. My stance hasn't changed." 

    In Aspen, Colo., last Friday, Perry won applause from a crowd of Republican donors for saying that if New Yorkers support the new law, it's "their call." 

    "Our friends in New York six weeks ago passed a statute that said marriage can be between two people of the same sex," he said on Friday. "And you know what? That's New York, and that's their business, and that's fine with me. That is their call. If you believe in the 10th Amendment, stay out of their business."

    Perry's reversal is reminiscent of a similar clarification made by declared candidate Rep. Michele Bachmann during the a GOP debate in New Hampshire in June. 

    Bachmann initially responded to a question about the New York law, saying that she doesn't "see that it's the role of a president to go into states and interfere with their state laws."

    But, she added after several other candidates weighed in on the matter, that she also supports a federal law defining marriage. "I do support a constitutional amendment on marriage between a man and a woman, but I would not be going into the states to overturn their state law." 

    Per FRC, the interview with Perkins was in the works before Perry's comments in Aspen and was planned in order to promote an August 6 prayer event in which both men are slated to participate.

    Perkins is a co-chair of "The Response," advertised as a day of fasting and prayer at Reliant Stadium in Houston. Perry's role in the event is less clear, but he confirmed to reporters yesterday that he will attend.

    More of the interview will air over the weekend on FRCradio.com.

  • Pataki says he’s ‘considering’ WH run

    MANCHESTER, NH -- You can add another prominent Republican who’s thinking about a White House bid.
     
    “I am definitely considering a run for president,” former New York Gov. George Pataki told reporters here.

    Fresh off a trip to Iowa, Pataki was in the Granite State leading a discussion on the debt crisis at the New Hampshire Institute of Politics at Saint Anselm's College. (Organizers claimed it was scheduled long before the current debt impasse began producing headlines.)

    "We are engaged in generational theft. Politicians in Washington are stealing from our children's future… This is not leadership,” Pataki told the group.

    When asked about the current GOP presidential field's handling of the debt problem, Pataki seemed dissatisfied.

    "A Republican has to make as part of their campaign how they're going deal with the deficit and debt issue,” he told NBC News. “We have to have solutions. So far, I haven’t heard that. I'm certainly looking to see if someone has that plan in the tone of their campaign.”

    Then Pataki paused to reiterate that he is taking a closer look at the White House. “I’m seriously thinking about it."

    Here in New Hampshire, Pataki is the honorary chairman of a group called No American Debt, which hosted today’s event. He joined state Senate President Peter Bragdon and House Speaker Bill O’Brien to answer questions from approximately 20 concerned citizens, business leaders, and one college student.

    Pataki wasted no time in attacking President Obama’s positions on a broad range of issues including energy, jobs, taxes, and the subject du jour: the debt debate.

    As for when he might declare a run for the White House, Pataki knows the clock is ticking.

    "I don’t want to put a specific date on it, but I understand that sooner is better than not.”

    Pataki said it would “be great” if Texas Gov. Rick Perry entered the presidential race, but he stated firmly that Perry’s move would not ultimately affect his own decision.

    “I will be very involved in some way, whether it's as a candidate or supporting another candidate or some other capacity."

  • Lord of the Zings

    Sen. Rand Paul (R-KY), left, took a swipe at Sen. John McCain (R-AZ), right, invoking Gollum from the Lord of the Rings, center.

    There might not be two factions more irascible, more willing to sling barbs, than John McCain and the Tea Party. And they proved it yesterday and today.

    McCain, the veteran Arizona Republican senator, has never been one to shrink from a fight. In a scalding Senate floor speech yesterday, he blasted the Tea Party and freshmen members of Congress, as well as Senate Majority Leader Harry Reid (D-NV) and the president of the United States.

    McCain’s comments against the Tea Party members centered on their demand that a balanced-budget amendment be attached to a deal that raises the debt ceiling. He said he supports a balanced-budget amendment, but that there’s no chance of its passage with Democrats controlling the Senate and the White House.

    He derided their logic as “bizarre,” “foolish,” “unfair,” and even the Seinfeldian “bizarro.” He went on to quote a Wall Street Journal editorial likening the Tea Party to “hobbits,” who “could return to middle earth.” And that “this is the kind of crack political thinking that turn Sharron Angle and Christine O'Donnell into GOP nominees.”

    Angle and O'Donnell, of course, won their party's nominations, but lost in general elections.

    Asked if McCain endorsed the language of the editorial he read into the record yesterday, spokesman Brian Rogers told First Read: “He obviously doesn’t believe that Tea Party folks are ‘hobbits,’ but he does strongly agree with the viewpoint of the editorial that the Boehner plan is a good one despite the protests by Democrats and some conservatives.”

    Nonetheless, McCain’s comments drew a swift rebuke from those aligned with the Tea Party, including the aforementioned Angle, who pointed out the irony of McCain putting Sarah Palin on his presidential ticket and McCain campaigning for Angle in 2010.

    She called him the “Lord of the TARP."

    Palin also campaigned for McCain during his contentious Senate reelection primary last year at the height of the Tea Party’s power. Many credit Palin for insulating McCain, no darling of the Tea Party, from the full ire of the group's fiery activists.

    “One man in Washington, who chose Sarah Palin to be his VP running-mate and came to Nevada to campaign for me last year in the Senate race against Harry Reid, is now promoting attacks against TEA Party activists, ordinary American citizens, and fiscally conservative members of congress -- all of whom are adamantly opposed to continuing the deficit-spending strategies proposed by some congressional members and the President,” Angle said. “Ironically, this man campaigned for TEA Party support in his last re-election, but now throws Christine O’Donnell and I into the harbor with Sarah Palin. As in the fable, it is the hobbits who are the heroes and save the land. This Lord of the TARP actually ought to read to the end of the story and join forces with the TEA Party, not criticize it. It is regrettable that a man seeking dialogue, action and cooperation for votes on the floor of the United States Senate has only one strategy to achieve that effort: name-calling. Nice.”

    Rogers points out that McCain also slammed Reid and, in particular, Obama for not presenting a plan. And he did -- forcefully.

    But Angle turned the tables on McCain and hit him for not presenting any "new ideas."

    “It is similarly unfortunate that Senator McCain brings no new ideas to the Senate floor,” Angle said, charging that McCain, instead, has resorted to using “borrowed soliloquies.”

    But the jibes didn’t just come from failed candidates. They also came from elected members of his own party, including at least one in the Senate.

    On Twitter, a place that makes it easy to be venomous, Rep. Connie Mack (R-FL) wrote, “Senator McCain has lost his way again. Hey Senator, we are Republicans and we are over here. Please join us.”

    And Sen. Rand “I have a message from the Tea Party” Paul got personal.

    “To those referring to ‘Tea Party hobbits.’ I'd rather be a hobbit than a troll,” Paul Tweeted.

    And showing he can fight fantasy geekery with fantasy geekery, Paul included a photo of Lord of the Rings curmudgeon Gollum.

    Precious.

  • Reid announces he'll table Boehner bill

    Echoing White House Senior Adviser David Plouffe's declaration that House Speaker Boehner's bill is D.O.A. in the Senate, Senate Majority Leader Harry Reid announced on the Senate would table the GOP legislation.

    Today the House of Representatives will vote on Speaker Boehner’s short-term plan to raise the debt ceiling. As soon as the House completes its vote tonight, the Senate will move to take up that bill. It will be defeated. No Democrat will vote for a short-term Band-Aid that would put our economy at risk and put the nation back in this untenable situation a few short months from now.

    A Reid spokesman tells First Read how the Boehner legislation is tabled: "As soon as the Senate receives the House Message (Boehner bill), a motion to concur with the House Message is made. The Leader moves to table the motion to concur (majority vote threshold). The Boehner plan is defeated in the Senate."

    Indeed, Reid needs only 51 votes to do this, and then he can bring it back up if need be (if/when they compromise).

  • Plouffe: Boehner bill is 'dead on arrival'

    First Read this morning asked if the White House and Senate Democrats would blink on the issue of Boehner's two-part debt limit extension versus Reid's one-step extension.

    In an appearance on "Daily Rundown," White House Senior Adviser David Plouffe didn't explicitly say President Obama would veto a two-step plan. But he emphasized that Senate Democrats would never accept it, saying Boehner’s bill “is never going to get to” the president’s desk.

    “We should stop talking about the Boehner bill, as if it's some recipe for solution here,” Plouffe said. “It's dead on arrival.”

    Ultimately, he added, the final bill may be a combination of the Boehner and Reid proposals. “What you're going to have to do is reconcile what's in Reid and Boehner.”

  • NJ Gov. Christie hospitalized because of difficulty breathing

    AP

    Chris Christie (R-NJ) was hospitalized after experience difficulty breathing, related to asthma, his office says.

    New Jersey Gov. Chris Christie (R) was hospitalized with “difficulty breathing,” his office confirms to WNBC’s Brian Thompson.

    Here’s a statement from Christie Press Secretary Michael Drewniak:

    "Governor Christie was having difficulty breathing this morning and out of an abundance of caution he went to Somerset Medical Center to be checked out. In line with someone dealing with asthma, he is being given routine tests as a precautionary measure. The Governor is extremely grateful for the quality of care he is receiving this morning and has nothing but praise for the world-class doctors, nurses and staff."

    *** UPDATE *** Thompson has more:
    While it is not known if this is an asthmatic attack at this point, a source close to the governor confirms Christie has suffered from asthma for years.

    "He carries an inhaler with him," this source told NBC New York.

    He also noted that the governor's weight doesn't help his health issues.

    ***UPDATE*** WNBC's Pat Battle has more:
    The Christie team is attributing this incident to complications from asthma. He will reportedly be released this evening and will return to the state house tomorrow.

    His wife, Mary Pat, is expected to attend their son's baseball game tonight, as planned.

     ***UPDATE***
    Christie has left the hospital. He tells reporters he will be back to work Friday.

     

  • Banks urge passage of debt ceiling; call consequences of inaction 'very grave'

    After consecutive days of red arrows on Wall Street, CNBC's Eamon Javers reports that the heads of 14 of America's largest banks have sent a letter to President Obama and Congress, urging them to act this week to reach an agreement on the debt and deficit.

    Here's the letter:

    July 28, 2011

    The President of the United States
    The White House
    Washington, DC 20500

    Members of the United States Congress
    United States Capitol
    Washington, DC 20510

    Dear Mr. President and Members of Congress,

    We write to you today to urge you to act this week to reach an agreement that will ensure that our Nation continues to meet all of its financial obligations, and that will entail meaningful and concrete steps to put our Nation on a sound fiscal footing.  The consequences of inaction - for our economy, the already struggling job market, the financial circumstances of American businesses and families, and for America's global economic leadership - would be very grave.

    Our economic recovery remains very fragile.  A default on our Nation's obligations, or a downgrade of America's credit rating, would be a tremendous blow to business and investor confidence - raising interest rates for everyone who borrows, undermining the value of the Dollar, and roiling stock and bond markets - and, therefore, dramatically worsening our Nation's already difficult economic circumstances.  Given this very real risk, policymakers must correct our fiscal course now, inspire market confidence by paying all of our bills on time, and demonstrate that America is a democracy capable of putting differences aside to solve our most challenging problems.

    A credible and predictable path forward, entailing tough decisions on the budget, will create the needed environment for businesses and entrepreneurs to start, grow, innovate, and create high quality jobs for Americans, now and in generations to come.

    We strongly urge you to reach an agreement this week.

    Respectfully,

    Thomas J. Wilson
    Chairman, President and CEO
    Allstate Insurance Company

    Brian Moynihan
    Chief Executive Officer
    Bank of America

    Robert Kelly
    Chairman and CEO
    BNY Mellon

    Vikram S. Pandit
    Chief Executive Officer
    Citigroup, Inc.

    Jim Weddle
    Managing Partner
    Edward Jones

    Lloyd C. Blankfein
    Chairman and CEO
    Goldman Sachs

    James Dimon
    Chairman and CEO
    JPMorgan Chase & Co.

    Steven A. Kandarian
    President and CEO
    MetLife, Inc.

    James P. Gorman
    President and CEO
    Morgan Stanley

    John R. Strangfeld
    Chairman and CEO
    Prudential Financial, Inc.

    Joseph L. Hooley
    Chairman, President and CEO
    State Street Corporation

    Richard K. Davis
    Chairman, President and CEO
    US Bancorp

    John G. Stumpf
    Chairman and CEO
    Wells Fargo & Company

    Robert S. Nichols
    President and CEO
    Financial Services Forum

  • First Thoughts: In retreat

    Dems in retreat… They draw another line in the sand, but will we see another concession?... Democrats reply: They might be losing this negotiating battle, but they could end up winning the larger war… Today’s House vote on the Boehner bill is expected early this evening, and the momentum appears to be on Boehner’s side… Reid’s two options if Boehner’s legislation passes… Romney still hasn’t taken a position on the Boehner bill… Cain apologizes… DNC seizes on bundler transparency… And Palin to return to Iowa in September.

    *** In retreat: In this debt debate, who’s up one day can quickly go down the next -- and vice versa. That’s why, after we wrote yesterday that House Speaker John Boehner was boxed in, he now appears likely to get his legislation through the House today (he turned things around the old fashioned way; he willed it). But when you take a step back from the hour-by-hour movements in this debate, it’s obvious how much ground the White House and Democrats have conceded. First, they retreated on their push for a clean debt-ceiling raise. Then they retreated on the size of the spending cuts (now both sides say the cuts must equal or exceed the eventual debt-limit hike). Then they backed away from insisting that tax revenues be included in the final package (both the Boehner and Reid plans exclude them). And now it seems that their final line in the sand is insisting that the debt ceiling must -- in one step -- be raised beyond 2012, versus Boehner’s two-step approach, which would guarantee another debt showdown early next year.

    *** Another line in the sand, and another retreat? Yesterday afternoon, the entire Dem Senate caucus -- the 51 Democrats and two Dem-leaning independents -- signed a letter to Boehner saying they’d oppose his legislation if it gets to their chamber. “A short-term extension like the one in your bill would put America at risk, along with every family and business in it,” the letter states. “Your approach would force us once again to face the threat of default in five or six short months. Every day, another expert warns us that your short-term approach could be nearly as disastrous as a default and would lead to a downgrade in our credit rating.” But will Democrats once again blink? Bottom line: It looks like they’ve gotten their clocks cleaned in these negotiations, and Republicans are once again counting on Democrats to retreat. The one thing that could bail out Democrats: that the GOP doesn't know when to declare victory and walk away from the blackjack table.

    *** Losing the debt battle, but winning the larger war? Democrats admit that this entire debt battle hasn’t been a big winner for them. But they argue that they could end up winning the longer-term war. They point to polls showing them winning the actual tax debate (that the public wants balance and is willing to pay higher taxes); they say they could still get their revenues through the commission the eventual legislation sets up, or with the expiration of the Bush tax cuts (if Obama wins in 2012); and they contend that the president likely comes out this messy debate looking better than anyone in Congress. In large part, Republicans have gained the upper hand in this game of chicken, because they’ve proved that their Tea Party is tying their hands to the steering wheel (and Republicans have proven adept at using the "we can't control these guys" negotiating strategy). But Democrats could wield this argument in 2012: No matter how much ground they gave up, they protected the country from the guys who were willing to crash both cars.

    *** Today’s House vote on the Boehner bill: As for today’s House vote on Boehner’s legislation, NBC’s Frank Thorp reports that it’s expected to occur in the early evening. There are 10 bills and seven amendments that the House will consider today in addition to Boehner’s bill, and the last votes are scheduled to be between 6:00 pm and 7:00 pm ET. So it would make sense for them to wait until then, Thorp says, so they can use as much of the day to whip for more votes. Anecdotally, it appears that Boehner’s motivational speeches, the GOP whipping, and even “The Town” reenactment have worked to shift the momentum to get the 217 votes Boehner needs. “In a meeting with House Republicans on Wednesday morning, Mr. Boehner and the majority leader, Representative Eric Cantor, scolded members for allowing Democrats to unify in protest against them,” the New York Times recounts. “‘This is the bill,’ Mr. Boehner said, according to those who attended the meeting, who said he advised them to ‘get your ass in line.’”

    *** Reid’s two options: So what happens if Boehner’s bill passes the House? Harry Reid and Senate Democrats essentially have two options. One, they could schedule a vote on it, and try to vote it down -- proving that it can’t pass the Senate. Or Reid and the Dems could take the Boehner bill and amend it. Right now, we’re hearing that they would probably pursue Option 2.

    *** Romney still hasn’t taken a position on Boehner’s bill: NBC’s Garrett Haake reported that Mitt Romney told reporters in Ohio yesterday that he would not comment on the debt negotiations in Washington. And so far, he has refused to either endorse Boehner’s legislation (as Huntsman has done) or oppose it (as Pawlenty and Bachman have done). Our question: How does someone who wants to be the leader of the Republican Party not have a position on one of the biggest issues facing Washington, especially after the dueling primetime speeches by Obama and Boehner? It's actually quite surprising; this isn't just another Washington fight. Is the lack of a position proof of how fragile Team Romney believes its front-runner status is right now?

    *** Cain apologizes:  In other 2012 news, Herman Cain apologized “to Muslim leaders for vitriolic remarks he made about Islam while campaigning for the presidential nomination,” the AP writes. “On Wednesday, Cain met with four Muslim leaders in Sterling, Va. He said in a statement later he was ‘truly sorry’ for comments that may have ‘betrayed’ his commitment to the Constitution and the religious freedom it guarantees. He also acknowledged that Muslims, ‘like all Americans,’ have the right to practice freely their faith and that most Muslim Americans are peaceful and patriotic.

    *** DNC seizes on bundler transparency: At 12:15 pm ET today, DNC Chair Debbie Wasserman Schultz will hold a conference call with reporters, emphasizing that all the GOP presidential candidates have so far refused to reveal their fundraising bundlers. By contrast, the Obama campaign has revealed its bundlers. 

    *** On the 2012 trail: Pawlenty and Santorum remain in Iowa… McCottter joins them in the Hawkeye State… Gingrich is still in Georgia… Bachmann, in DC, addresses the National Press Club… And Romney’s wife, Ann, stumps in New Hampshire. 

    *** Palin to return to Iowa: In “Summer of Speculation” news, Sarah Palin is headed back to Iowa on Sept. 3. She will be the keynote speaker at a Tea Party of America event in Waukee. The Des Moines Register: “Political strategists from both parties agree the former Alaskan governor and 2008 Republican vice presidential candidate risks falling flat in organizing a presidential campaign in Iowa if she plays the waiting game beyond her next visit.” Also today, in New Hampshire, former New York Gov. George Pataki holds a roundtable discussion on the debt the New Hampshire Institute of Politics at Saint Anselm College.

    *** Thursday’s “Daily Rundown” line-up: White House Senior Adviser David Plouffe on the debt deliberations… Former Reps. Tom Davis (R-VA) & Martin Frost (D-TX) on how Hill leaders whip a vote like this… 2012 and more with National Journal’s Major Garrett, N.Y. Times’ Helene Cooper, and L.A. Times’ Matea Gold.

    *** Thursday’s “Andrea Mitchell Reports” line-up: Meanwhile, NBC’s Andrea Mitchell interviews GOP Sen. John Thune, Dem Congressman Chris Van Hollen, and GOP Sen. Mike Crapo.

    Countdown to Wisconsin recall general for GOP senators: 12 days
    Countdown to Iowa GOP straw poll: 16 days
    Countdown to Wisconsin recall general for Dem senators: 29 days
    Countdown to NV-2 and NY-9 special elections: 47 days
    Countdown to Election Day 2011: 103 days
    Countdown to the Iowa caucuses: 193 days
    * Note: When the IA caucuses take place depends on whether other states move up

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  • Obama agenda: On the sidelines

    The New York Times writes that President Obama is now largely standing on the sidelines in the debt debate. “Having already deployed the heavy weapons from the presidential arsenal, including a national address on Monday night and a veto threat, Mr. Obama is in danger of seeming a spectator at one of the most critical moments of his presidency. Having been unable to get the grand bargain he wanted — a debt limit increase and up to $4 trillion in debt-reduction through spending cuts and taxes — Mr. Obama’s challenge now is to reassert himself in a way that produces the next-best outcome, or at least one that does no harm to his re-election hopes.”

    Per the AP: “Twice as many Americans as previously reported by law enforcement have traveled overseas to join a Qaeda-linked organization, a congressional investigation found. The findings, discussed in a congressional hearing yesterday, are an indication the Somalia-based terrorist group has an even deeper reach into the United States. More than 40 Americans have traveled to war-torn Somalia to join the terrorist group Al Shabab, an investigation by Republican staff on the House Homeland Security Committee found.”

    “The Senate extended the term of FBI Director Robert Mueller for up to two years yesterday, a day after President Obama signed legislation making an exception to the 10-year limit for an FBI chief,” the AP writes. “The vote was 100-0.”

    “Massachusetts supporters of President Obama are planning a big birthday party in his absence,” the Boston Globe reports. “On Aug. 3, the night before the president turns 50, they are holding a reelection campaign fund-raiser at Town Stove and Spirits on Boylston Street. The featured guests will be former White House Press Secretary Robert Gibbs and current Deputy Campaign Manager Jennifer O’Malley Dillon, according to the invitation.”

  • Congress: Can Boehner get to 217?

    Where do things stand? Roll Call: “House to Take Crucial Vote; Senate in Limbo.” From the story: “Uncertainty pervaded the Capitol on Wednesday, as Speaker John Boehner (R-Ohio) tried to wrestle every last vote out of his caucus for his debt and deficit plan and the Senate bided its time awaiting that crucial House vote today.”

    “House Republicans began coalescing yesterday around House Speaker John Boehner’s plan to avoid default on the national debt, saying the very future of their party was at stake in the fight, even as Senate Democrats said the bill stands no chance of passing their chamber,” the Boston Globe reports. “A day after Boehner’s plan encountered stiff resistance from conservatives in his own party, House Republicans held an emotional closed-door meeting where leadership pressured members to vote for the speaker’s proposal when it comes to the floor today. The legislation would raise the debt ceiling in two steps, now and early next year, and make offsetting spending cuts over the next decade.”

    The New York Times profiles Boehner and his tougher style. “The speaker has used the many resources at his disposal to coax along his fellow Republicans, from listening sessions in which House leaders sought to educate Republican newcomers on the issue, to an informal party last week.”

    “What for months had been a quiet campaign to pressure the GOP into a more conservative footing has, over the course of the debt limit negotiations, blossomed into a full-blown insurrection, led by Republican Steering Committee Chairman Jim DeMint (S.C.) in the Senate and Republican Study Committee Chairman Jim Jordan (Ohio) in the House,” Roll Call reports. “And at a Wednesday Conference meeting, the conflict was exposed raw, as Republicans dressed down Jordan for his tactics. According to aides familiar with the situation, Paul Teller, the RSC’s executive director, and top DeMint aides, including  Communications Director Wesley Denton, have worked closely for years in coordinating their work.”

    Roll Call profiles Teller and says he “was probably the last person Speaker John Boehner (R-Ohio) thought he'd have to slap around during the debate over the debt ceiling.”

    Jordan apologized, per The Hill.

    The CBO revised Boehner’s bill to $917 billion in savings, meeting “his original target of exceeding the size of the $900 billion debt limit increase by cutting the deficit by $917 billion, something Senate Majority Leader Harry Reid’s bill does not yet do,” Roll Call writes, adding, “After the new score, the discretionary cuts in Boehner’s bill match up almost exactly with Reid’s package, a good sign for reaching a compromise agreement.” (More: “Reid’s cuts include about $1.3 trillion in war savings, which the GOP called a gimmick. Boehner’s proposal includes the same war spending levels, but House Republicans say they shouldn’t be counted toward deficit reduction.”)

    Stu Rothenberg makes this point: “[R]aising the debt ceiling with the backing of Democrats while most conservative Republicans sit on the sidelines would mean the end of Boehner’s Speakership and would be an invitation for a civil war within the Republican Party.” And he concludes: “‘In the end,’ one GOP strategist told me recently, ‘somebody is going to have to blink.’ It’s still unclear whether it will be Boehner, Reid or Obama. But I wouldn’t yet count on it being House tea party conservatives.”

    “A growing faction of House Democrats is renewing its push for a clean debt limit vote — pressing ahead even as the White House and Senate Democrats appear committed to fulfilling Republican demands for spending cuts to accompany a deal. But liberals risk being labeled as out of touch with the political climate,” Roll Call reports.

    The Hill: “House Democratic leaders on Wednesday called for a clean vote on raising the debt ceiling to prevent a government default.”

    Ben Affleck, a liberal, on Republicans’ use of his film “The Town” in their conference meeting yesterday: “[I]f they're going to be watching movies, I think 'The Company Men' is more appropriate.”

  • House GOP gets revised CBO score

    If at first you don't succeed, try, try again.

    After House Speaker John Boehner received a disappointing score from the Congressional Budget Office yesterday on his debt-limit legislation, House Republicans are touting revised numbers for the plan.

    GOP aides say the revised CBO score confirms spending cuts exceed the debt hike, and that there are $22 billion in cuts in the first year.

    According to these new numbers, the House GOP leadership would raise the debt ceiling by $900 billion, which would keep the country from defaulting until approximately some time in Feb. 2012.

    Guidance for tomorrow: There should be two big votes -- 1) the rule for Boehner's debt-ceiling bill, and 2) a final vote on it.

  • Romney talks trade and China in Ohio

    PATASKALA, OH – GOP presidential front-runner Mitt Romney today brought his economy-focused campaign to a massive factory floor here in Central Ohio, promising he would fight to help manufacturing thrive in an era of free trade.

    “The truth is trade is good for those economies that are productive, and efficient and our economy and our workers are the most productive in the world -- so trade ought to be good for us,” he told an audience of roughly 100 workers and supporters.

    "If other people follow the trade agreements and compete at a fare basis, we ought to be able to sell this product all over the world and put more and more people to work right here in central Ohio because this is the best product in the world.”

    Romney made these remarks after a tour of Screen Machines Industries, a manufacturer of portable crushing and screening plants. (Democrats noted that the company received hundreds of thousands of dollars in stimulus funds.)

    Strikingly, Romney did not criticize President Obama as aggressively as he has done in other recent campaign appearances. Instead, he saved his harshest words for Chinese businesses, which he called the world’s “worst offenders” when it comes to following free trade rules.

    “For too long we've let China cheat,” he said of Chinese businesses that flout American intellectual property rights. “We’ve got to get serious about recognizing that. We will crack down on cheaters like China and protect the intellectual property and the jobs of American workers, and American enterprises. And I will do that when I am president.” *** CORRECTION *** Romney said, "And I will do that if I am president."

    After the speech, Romney greeted supporters and told a group of reporters he would not comment on the daily back-and-forth debt negotiations currently gripping Washington, but that he continued to favor a “cut, cap and balance” approach to solving the crisis. Romney so far has refused to either endorse or oppose House Speaker John Boehner’s debt-ceiling legislation.

    The former Massachusetts governor and CEO looked relaxed in shirtsleeves, and spoke without notes. He departed from his jobs and trade message only briefly, getting applause for remarking that the government should not spend more than it takes in.

    And he received a few laughs for lamenting that he was introduced to the Ohio State University fight song.

    “I didn’t expect to hear ‘Hail to the Victors, valiant. I know that,” the Michigan native joked. “This is Woody Hayes country.”

  • A $1 trillion difference on war funding

    From msnbc.com's Tom Curry:
    As the Congressional Budget Office made clear in comparing the deficit reduction proposals offered by House Speaker John Boehner and Senate Majority Leader Harry Reid, their plans differ in one important way: Reid’s plan would impose a fixed ceiling on funding for the wars in Afghanistan and Iraq and for what CBO calls “similar activities (sometimes referred to as overseas contingency operations or OCO)”, including U.S. military operations in Yemen and Somalia.

    Reid’s proposed overseas contingency cap is $127 billion for the fiscal year that starts on Oct. 1 and $450 billion over the 2013-2021.

    Boehner’s plan exempts overseas contingency operations from a cap, even though it caps other discretionary spending.

    The Reid proposal could reduce Afghanistan/Iraq/OCO outlays by $1 trillion, when measured against the most recent Congressional Budget Office baseline estimate.

    (The CBO baseline assumes that discretionary spending grows each year in step with inflation from the amounts provided for the most recent year.)

    So what would that $1 trillion amount to? About a 13 percent reduction in the 10-year total of defense spending.

    Bigger money and far faster spending growth lies outside Defense Department – in spending on Medicare, Medicare and Social Security – but neither the Reid nor the Boehner plan supplies specifics on how or where that entitlement spending might be curbed or cut.

    CBO has forecast that over the next ten years the defense spending – other than military retirement benefits– will grow at an average rate of 2.3 percent a year, while Medicare will grow by nearly 7 percent a year, Medicaid by 9 percent a year and Social Security by nearly 6 percent a year. These growth rates would far outpace what CBO sees as the likely annual growth rate of the economy.

    Both Boehner and Reid plans would establish a new congressional committee on deficit reduction.

    Reid’s task for that committee: find a way to reduce the budget deficit to 3 percent of gross domestic product (instead of the 9 percent of GDP it was last year.) Boehner’s task for the committee: come up with another $1.8 trillion in deficit reduction by end of November.

    That almost certainly some curbs on Medicare, Medicaid and Social Security growth.

    But CBO did not attempt to estimate the size of cuts in entitlement spending that the new committee would be able to come up with. No one can predict at this point what proposals that committee might develop, or what Congress might pass.

    Hence the bond ratings agencies would have a difficult time assessing how credible any entitlement spending curbs would be.

  • Backlash at House GOP staffer who opposes Boehner bill

    AP

    Rep. Jim Jordan (R), head of the Republican Study Committee.

    Members of the Republican Study Committee, the ideologically conservative faction of the House GOP Conference, has been lukewarm in supporting House Speaker Boehner's debt limit plan. The head of the RSC, Rep. Jim Jordan (R-OH), came out strongly against the plan earlier this week.

    But this morning, at the GOP conference meeting, it came to light that an RSC staffer -- Paul Teller -- reached out to outside conservative groups, telling them to target RSC members who were on the fence about the Boehner plan and to persuade them to vote no.

    Needless to say, this angered many RSC members, and some have even said they may want to leave the group.

    As Politico reports:

    Infuriated by the e-mails from Paul Teller, the executive director of the RSC, members started chanting “Fire him, fire him!” while Teller stood silently at a closed-door meetings of House Republicans.

    “It was an unbelievable moment,” said one GOP insider. “I’ve never seen anything like it.”

    The Republican Study Committee released this statement:

    "Earlier this week, an RSC staffer sent an inappropriate email to outside groups that identified members of Congress he believed were undecided on the debt reduction proposal offered by the speaker. This action was clearly inappropriate and was not authorized by the Chairman or any other members of the staff. This has never been - and never will be - the way we do business at the RSC. We apologize to everyone affected, and we have already taken steps to ensure that it never happens again - either by this staffer or any other RSC staffer."

    The Atlantic's Josh Green explains that this backlash at Teller is a clear sign that Boehner's debt plan will probably pass the House.

    *** CLARIFICATION *** A spokesman for the Republican Study Group tells NBC News that Teller was not the RSC staffer who sent the email targeting RSC members who were on the fence.

  • Poll: Perry would vault to second in GOP field

    AP

    Texas Gov. Rick Perry (R)

    While former Massachusetts Gov. Mitt Romney remains at the top of national polls of 2012 Republican hopefuls, a new Gallup survey shows potential rival Gov. Rick Perry poised to surge into second place if he decides to run.

    Romney enjoys a nine-point lead ahead of the rest of the pack of declared GOP candidates, coming in at 27 percent support among the Republicans and Republican-leading independents surveyed. Rep. Michele Bachmann (R-MN) stood at 18 percent among all formally announced contenders.

    But when three additional GOP heavyweights -- Perry, former Alaska Gov. Sarah Palin, and 2008 presidential candidate Rudy Giuliani -- are included in the mix, Romney's support drops to 17 percent, with Perry in second place just two points behind.

    And when Perry is the only as-yet-undeclared Republican added to the current lineup, Gallup found the Texas governor winning 18 percent support.

    With Perry (but not Palin or Giuliani) in the race, Romney's level of support would fall to 23 percent and Bachmann's to 13 percent, according to the poll.

  • Signs of compromise?

    Congresswoman Jo Ann Emerson (R-MO) spoke to Chuck Todd on MSNBC’s "The Daily Rundown" this morning. She uttered a word we haven't heard much from Republicans lately: compromise.

    Emerson co-chairs the Tuesday Group, a group of about 45 center-right House Republicans who could emerge as an important bloc of votes in getting a debt-ceiling deal passed in the House.

    When discussing public anger over the inability of Congress to get results, Emerson said, "Ultimately, because the government’s divided and we don't have a parliamentary system, we do have to compromise."

    She followed up saying, "That's a bad word, I know!"

    So perhaps there is a glimmer of hope that House Republicans are willing to move toward the middle to pass a bill.

    That would be an encouraging sign for a bill passing, given that Emerson also said she does not expect Speaker Boehner to increase the cuts in his existing proposal, despite the Congressional Budget Office scoring Boehner’s latest bill as having less than his goal of $1 trillion.

    In a departure from Republican talking points, Emerson also pointed out that the very state of play in the talks indicated a big win for Republicans.

    "When people stop to think of how far we've moved the discussion from raising taxes to only lifting the debt limit to being able to cut spending at the same rate," she said. "They have to consider it as being quite successful."

    But how pervasive is the attitude that the shift in the discussion itself is a win for Republicans? Perhaps more so for veterans like Emerson than for many of the House freshmen swept in by the Tea Party tidal wave last November.

    "You know for a lot of our new members who haven't ever been in a legislative branch before, it's hard for people to sometimes understand that we're only one-half of one-third of the government," Emerson said. "So just because Republicans control the House doesn't mean anything in the big picture, I suppose other than being very successful in getting the Democratic Senate and the White House to start talking about spending reductions as opposed to just raising the debt ceiling."

    As for the prospects of an actual compromise in the near future, she said she is “cautiously optimistic.”

  • Romney makes another appearance outside of IA and NH

    AP

    Mitt Romney speaks outside a shuttered factory in Allentown, Pa., June 30, 2011

    As several of his rivals for the GOP presidential nomination criss-cross Iowa this week in advance of next month's straw poll and the first-in-the-nation caucuses there, Mitt Romney continues to follow a different strategy.

    He's on the campaign trail today -- but not in the Hawkeye State. Or New Hampshire. Or South Carolina. Or even Nevada.

    Instead, he will bring his economy-focused message to Central Ohio, a visit that will mark his fourth public campaign appearance in a non-early-nominating state in the past month.

    Last week, Romney criticized President Obama's economic policies at a vacant strip mall in Southern California. On June 30, he spoke outside a shuttered factory in Allentown, PA, while the president attended two fundraisers in Philadelphia. And a month ago today, he spoke to crowds from the back of a pickup truck in Utah. Each of these stops also included fundraisers for the Romney campaign.

    But while Romney has made multiple campaign stops in New Hampshire in the past month, he has campaigned in Iowa only once this year. He also declined to actively compete in next month's Iowa straw poll, but was added to the ballot last weekend by the event’s organizers.

    This is a significant departure from Romney’s presidential bid four years ago, when he campaigned vigorously in both Iowa and New Hampshire, but finished second in those contests.

    This time around, however, the strategy of focusing beyond the early nominating states is a deliberate one.

    “We are running a national campaign against President Obama and his failed economic policies,” said Romney campaign spokeswoman Andrea Saul. “That means our focus is not just the early states, but places like Ohio and elsewhere that people are looking for leadership on jobs.”

    Some observers say forgoing campaigning in early states like Iowa -- in favor of campaigning elsewhere -- could backfire on the current GOP front-runner.

    "I understand his strategy," Iowa Gov. Terry Branstad (R) said last month. But, he added, "I think he jeopardizes his front-runner status if he does poorly in Iowa."

    Rival campaigns also have criticized the former Massachusetts governor.

    "Gov. Romney is the front-runner for the Republican nomination, but it's telling that he apparently doesn't feel confident in his campaign's ability to win support from conservatives in swing states like Iowa,” Tim Pawlenty spokesman Alex Conant told NBC News. “Gov. Pawlenty's ability to unite Republicans in both Iowa and New Hampshire is indicative of what a strong Republican nominee he will be against President Obama."

    But making campaign swings through Ohio and Pennsylvania doesn't mean he's ignoring the early states. He maintains a large lead in New Hampshire, where he kicked off his 2012 presidential campaign. And the Washington Post wrote over the weekend that Romney is waging a "stealth campaign" in Iowa.

    "Romney is engineering low expectations so that if he finishes second or third — or worse — it won’t set him back," the Post said. "Yet he also wants to be in position to pounce if he sees an opportunity." 

  • First Thoughts: Boehner's boxed in

    Boehner now finds himself boxed in… And because he’s fixing his legislation after the CBO score, he has a harder argument to make that Reid and the Dems are on board with his plan… Desperately searching for an acceptable trigger… Due to all of this chaos and confusion, the odds of a short-term extension (like 10 days) are more likely… The WSJ: Debt-ceiling debate is creating business uncertainty… Is Mitt Romney counting his chickens before they hatch?... On the trail: Pawlenty and Santorum are in Iowa, Romney’s in Ohio, and Gingrich is in Georgia.

    AP

    House Speaker John Boehner (R-OH) (right), House Majority Leader Eric Cantor (R-VA) (left).

    *** Boehner’s boxed in: Speaker John Boehner had to walk away from the negotiations with President Obama, in large part because too many members of his House GOP conference wouldn’t accept the deal (even before the controversy over that extra $400 billion in revenue). Now, a growing number of House conservatives -- along with the Club for Growth and the Heritage Foundation’s political arm -- oppose Boehner’s go-it-alone debt plan. To make matters worse for the speaker, the Congressional Budget Office determined that his legislation cut less spending than promised, and a vote is now postponed until tomorrow as he goes back to the drawing board. What’s more, Standard & Poor’s said on CNBC it’s “concerned” about Boehner’s plan requiring the debt limit to be raised once again in early 2012. Bottom line -- Boehner is boxed in. But there’s an escape hatch: Does he go back to House Majority Leader Eric Cantor and his GOP conference and make his case that a “grand bargain” with the president is an easier lift than what they have now, since at least they'll have the help of Democrats to pass something and the "grand bargain" actually could change the deficit trajectory?

    *** Boehner now has a harder argument to say that Reid and Dems are on board: Here’s another consequence of the CBO score: Boehner has argued to his caucus that Senate Majority Harry Reid accepted his plan (which Reid denies, but clearly the similarities between Reid and Boehner on the first round of cuts show there's some truth buried in there), and therefore Reid and Senate Democrats will ultimately vote for it if it reaches the Senate. But now that Boehner has to go back to the drawing board to fix his legislation, is it harder for him to argue that Reid and the Dems will accept it? And does Boehner "fix" the bill so much in order to get the votes that it becomes even less credible as a compromise vehicle?

    *** Desperately searching for an acceptable trigger: Before yesterday’s CBO score, we can report that Boehner and Reid were in agreement on a two-step process to reduce the deficit. But the sticking point is the enforcement mechanism for the second round of cuts. Boehner wants that enforcement mechanism to be a second debt-ceiling hike to get through 2012. Reid, on the other hand, wants the second step to be deficit reduction that ISN’T tied to another debt-ceiling raise. In that respect, Boehner and Reid are stuck in the same place where Boehner and Obama were last week -- looking for an acceptable enforcement mechanism or “trigger.”

    *** The odds of a short-term extension are now more likely: Due to this impasse, the CBO score, and the general uncertainty that anything is going to get done, the odds that the White House could sign a short-term debt extension (by 10 days or so) are MUCH more likely. It’s clear that everyone needs more time. Folks, this isn't speculation; this is a whisper that is growing louder among the players involved. By the way, with SO much uncertainty in the talks today, don't be surprised to see/hear all sorts of things today: Obama-Boehner talking? Reid-McConnell? Reid-Boehner? Gang of Six? It's all possible today. Thunderdome? In all seriousness, the new "key player of the day": Mitch McConnell. When does he simply cut a deal with Reid again and help move the ball forward?

    *** Talk about business uncertainty: Last year, Boehner often attacked the Obama White House’s policies, arguing that they created business uncertainty. But as we’ve pointed out before, the GOP’s insistence on tying the debt ceiling to deficit reduction has created plenty of business uncertainty, too. Indeed, the Wall Street Journal reports that businesses are hoarding cash and delaying hiring because of the possibility of a U.S. debt default. “While companies generally expect Washington to resolve the debt-ceiling impasse at the last moment, they are lining up extra sources of financing, and carefully husbanding cash just in case a deal falls through. All the uncertainty comes just as businesses were starting to spend some of their record piles of cash. The confusion is also giving them another reason to delay hiring and investment.”

    NBC's Kelly O'Donnell reports on the debt impass in Washington.

    *** Is Romney counting his chickens before they hatch? Turning to the Republicans campaigning for president, Mitt Romney is starting to resemble a gambler who’s up $500 at the blackjack table and is already counting the ways he’s going to spend his earnings -- but before he walks away from the table. As we’ve said before, he’s acting like someone who’s already wrapped up the GOP nomination, or even the White House. In the past month or so, he told a New Hampshire lumber company owner that he’d be back in four years, “only this time it will be a larger group and I will probably have Secret Service." His public events have taken him to states (like Pennsylvania, California, and today Ohio) that aren’t early primary states. And now it’s being reported that Romney mentioned at a Virginia fundraiser that the VP shortlist was Virginia Gov. Bob McDonnell, Florida Sen. Marco Rubio, and New Jersey Gov. Chris Christie. A source later told Politico that Romney wasn’t revealing his own VP list, but rather the obvious contenders for any GOP nominee. Still, as Romney knows well -- and Howard Dean and Hillary Clinton know it, too -- being the front-runner in the summer isn’t a guarantee of winning the nomination.

    *** On the 2012 trail: Pawlenty and Santorum stump in Iowa… Romney holds another campaign event in a non-early nominating state -- this time Ohio -- as he delivers remarks in Pataskala, OH… And Gingrich is in Georgia.

    ***Wednesday’s “Daily Rundown” line-up: Sen. Chuck Schumer (D-NY) and Rep. Jo Ann Emerson (R-MO) on what debt limit bill(s?) will/can move through each chamber and how… PolitiFact’s Bill Adair breaks down some debt declarations… The Washington Post’s Perry Bacon, Republican strategist Kevin Madden and Democratic strategist Karen Finney on 2012 news.

    *** Wednesday’s “Andrea Mitchell Reports” line-up: Democratic Congressman James Clyburn, Dem Sen. Kent Conrad, and GOP Rep. Tom Price.

    Countdown to Wisconsin recall general for GOP senators: 13 days
    Countdown to Iowa GOP straw poll: 17 days
    Countdown to Wisconsin recall general for Dem senators: 20 days
    Countdown to NV-2 and NY-9 special elections: 48 days
    Countdown to Election Day 2012: 104 days
    Countdown to the Iowa caucuses: 194 days
    * Note: When the IA caucuses take place depends on whether other states move up

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  • Obama agenda: A qualified veto threat

    “The White House on Tuesday released a two-sentence veto threat against the House Republican plan to cut $1.2 trillion over 10 years, raise the debt ceiling by $1 trillion and set up another $1.8 trillion in cuts by the end of this year,” The Hill reports.

    (But read the statement carefully. It says “the President’s senior [advisers] would recommend that he veto this bill.” It doesn’t say the president would veto it, just that adviser would recommend he do so.)

    “Financial institutions across the country were reviewing their holdings, preparing contingency plans, and working to calm anxious investors as the government moved another day closer to defaulting on its financial obligations,” the Boston Globe reports. “While most banks and investment firms expect Congress to strike a deal, they are nonetheless preparing for what might happen if lawmakers fail to lift the debt ceiling and avoid a default by next week’s deadline.”

    The Wall Street Journal makes the same point. “While companies generally expect Washington to resolve the debt-ceiling impasse at the last moment, they are lining up extra sources of financing, and carefully husbanding cash just in case a deal falls through. All the uncertainty comes just as businesses were starting to spend some of their record piles of cash. The confusion is also giving them another reason to delay hiring and investment.”

    “Voters will get the chance to decide whether Ohio can opt out of the national health care overhaul after the state’s top election official said yesterday that opponents of the federal law have enough signatures to put a constitutional amendment on the Nov. 8 ballot,” the AP writes. “Secretary of State Jon Husted determined that supporters of the amendment, which would prohibit Ohio from participating in the federal Affordable Care Act, had gathered 427,000 valid signatures. They had submitted more than 546,000 and needed roughly 358,000 validated to make it onto the ballot.”

  • Congress: Boehner’s CBO setback

    “House Republicans delayed a vote on Boehner’s bill, which had been set for Wednesday, after congressional budget analysts dealt the legislation a potentially devastating setback by saying it would save far less over the next decade than the $1.2 trillion advertised. The Congressional Budget Office projected that the spending cuts would save only about $850 billion over that period,” the Washington Post writes. “The news from the CBO alarmed conservatives, who were already balking at what they considered timid spending reductions. It also meant Boehner’s bill would not meet his own demand that the cuts exceed the size of the $900 billion debt-limit increase.”

    The New York Times: “The pushback on the bill was the latest chaotic twist in the fiscal fracas on Capitol Hill, as the clock ticked closer to Aug. 2, when the Obama administration has warned that the nation risks defaulting on its bills. The scramble to come up with a plan that could be put to a vote, now moved from Wednesday to Thursday, represents a test of Speaker John A. Boehner’s ability to lead his restive caucus. The expected showdown over the legislation is the culmination of months of efforts by Tea Party-allied freshmen and fellow conservatives to demand a fundamentally smaller government in exchange for raising the federal borrowing limit.”

    The Boston Globe adds, “Boehner encountered strong resistance from within his own caucus all day yesterday, as many conservative Republicans insisted his bill on the government’s debt ceiling did not cut deeply enough into federal programs. They vowed to oppose the legislation when it comes up for a vote, now possibly tomorrow. Also, President Obama threatened to veto Boehner’s measure, further diminishing its prospects. Adding to Boehner’s problems was a report by congressional analysts saying his plan would create $850 billion in savings, not the $1.2 trillion he had projected.”

    The Hill: “Speaker John Boehner (R-Ohio) is heading into a critical House vote on his deficit-reduction plan, at risk of losing significant leverage in the GOP’s drag-out fight with the White House over raising the $14.3 trillion debt limit.”

    The real problem is there’s no moderate middle left: “The Republican Party has, in fact, moved away from its moderate wing in recent years, according to national polls, resulting in a growing chasm between its political leaders and a significant group of disenchanted voters,” the Boston Globe says.

    The New York Post’s headline on Oregon Democrat David Wu’s resignation: “Wu pulls a Weiner.”

    Missouri Republican Congressman Billy Long, who likened the debt crisis to Amy Winehouse’s death apologized to her family yesterday.

    And: “Rep. Luis Gutierrez (D-Ill.) was arrested Tuesday outside the White House, during a protest against immigrant deportation, a spokesman confirmed,” The Hill reports.

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