GOP Sen. Judd Gregg yesterday withdrew from consideration for the post of Commerce Secretary. USA Today notes Gregg cited "irresolvable conflicts" with President Obama over "the economic stimulus and 2010 census." The Union Leader reports that "in a news conference with New Hampshire reporters, Gregg emphasized his fiscal conservative philosophy. 'This was more of a question of just being me,' he said. 'For 30 years I've basically run my own shop and made my own decisions.'"
The Administration's response to Gregg's announcement is coming under fire. The Washington Post says "the timing of Gregg's communication with the White House about his decision was murky through much of the day, as the president's aides scrambled to revise their sometimes conflicting statements about when Obama was notified." The Post adds, "Returning to Washington from Springfield, Ill., Obama told reporters on Air Force One that he learned just yesterday of Gregg's decision. He later clarified that he had spoken with the senator from New Hampshire a day earlier but 'wasn't sure whether he'd made a final decision.'" The Washington Times reports White House spokesman Robert Gibbs "disputed senior Obama adviser David Axelrod's statement that the president learned of the withdrawal Thursday. The press secretary said Mr. Gregg told the president of his intent to withdraw during a meeting Wednesday." Obama "himself said a short bit later that he had indeed found out Thursday at the last minute."
Media reports are also casting the development as a serious political blow to Obama. The Wall Street Journal says "the announcement was a fresh embarrassment for an administration rocked by a number of setbacks. While his recent predecessors each lost one or two early cabinet nominees, Mr. Obama has lost three less than a month into his term." Moreover, "Gregg's withdrawal comes two days after a bank rescue plan was widely panned by financial markets and lawmakers from both parties, partly because of its lack of detail." On the CBS Evening News Bob Schieffer said, "To have these incidents happening over and over again, this does not help this Administration's credibility. There's no other way you can say it." ABC World News called it "another stumble."
The New York Times reports that "since the president took office last month, not a week has passed without the White House responding to a personnel crisis. The Financial Times notes "Obama is hardly the first president to face embarrassment over botched nominations. It took...Clinton three tries to fill the attorney-general job after his first two nominees withdrew. But Mr Obama has now exceeded Mr Clinton's record." The Hill refers to a "stunning blow."
Did Gregg Reach Out, Or Did Reid Broker Deal? NBC Nightly News said "the Obama White House quickly called what" Gregg "did a blindside hit." In a telephone interview with the Springfield (IL) State Journal-Register, the President said Gregg's withdrawal "comes as something of a surprise, because the truth is Mr. Gregg approached us with interest and seemed enthusiastic." USA Today notes the White House press secretary said "Gregg reached out to the president and offered his name for secretary of Commerce." The CBS Evening News reported that "a top Democratic source on Capitol Hill was more blunt, saying Gregg actively campaigned for the job, then erratically dropped out, without warning." But the Wall Street Journal notes "Gregg, at his news conference, gave a different version, saying an 'intermediary' had sought him out to see if he was interested in the job."
The New York Times, meanwhile, reports "the Senate majority leader, Harry Reid, Democrat of Nevada, had recommended Mr. Gregg for commerce secretary. The White House accepted Mr. Reid's suggestion, in part, because the president had said he wanted his cabinet to be filled with a variety of viewpoints." The Washington Times notes "Reid spokesman Jim Manley confirmed to The Washington Times that Mr. Emanuel asked for suggestions for the commerce post and that Mr. Reid suggested Mr. Gregg."
Gregg Won't Run For Reelection The AP (2/13, Ramer) reports, "After withdrawing his nomination as Commerce secretary Thursday, Gregg said he doesn't plan to run for re-election in 2010." Gregg "didn't give specifics, telling reporters, 'Sometimes, there's other things to do in life.'" The Boston Globe reports, "Representative Paul Hodes, a Democrat, quickly issued a statement affirming his candidacy. John E. Sununu, a former US senator, is among those mentioned as possible Republican candidates."
President Obama was in Peoria, IL, yesterday to promote his economic stimulus package. The story was covered by national media outlets, but it got second billing to Sen. Judd Gregg's decision to withdraw his nomination to lead the Commerce Department. The Journal Star (Central Illinois) reports that in Peoria, "Obama cited Caterpillar Inc. as one of the big reasons the country needs his $800 billion stimulus bill." On ABC World News, Obama was shown saying, "Jim, the head of Caterpillar said that if Congress passes our plan, this company will be able to rehire some of the folks who were just laid off." But ABC added, "Not so fast. Just after the President left that event, CEO Jim Owens contradicted that claim." Owens said, "I think, realistically, you know, the honest reality is, we'll probably have to have more layoffs before we start hiring again." Owens, ABC continued, "said the bill will help the country in the long-term, but he also argued this bill might not be enough in terms of construction projects." NBC Nightly News also noted that Owens "had been saying publicly he would hire back some of those 20,000 laid off workers if the stimulus plan passed and other countries followed suit." But yesterday "Owens hedged a bit."
Under the headline "Obama's Premature Victory Lap," The Politico says "Obama's victory seemed premature when" Owens "said he did not, in fact, think that the stimulus plan would stop more layoffs at Caterpillar or spark new hiring." The comments "came after an afternoon in which Obama visited the plant and, flanked by the Caterpillar's signature yellow tractors bearing the unmistakable CAT label, declared he was confident the stimulus would bring new hiring to the company."
Under the headline "Obama's Stimulus Message Falls On Skeptical Ears At Caterpillar Plant," the Los Angeles Times reports "the audience was dotted with dispirited workers who had just gotten word of 20,000 layoffs coming at the heavy-equipment giant, and while community leaders and managers cheered Obama's words, others in the crowd were in no mood to join in." The Washington Post, New York Times, Chicago Sun-Times and USA Today also report on Obama's trip.
News accounts this morning suggest a number of economists are skeptical that the stimulus legislation will create or protect as many jobs as President Obama has promised. McClatchy, in an article titled, "Will The Stimulus Actually Stimulate? Economists Say No," reports that "the compromise...is short on incentives to get consumers spending again and long on social goals that won't stimulate economic activity, according to a range of respected economists." Edward Luce, writing for the Financial Times, says "economists disagree over the effects of the...stimulus bill, but few think its impact will be felt any time soon by average voters." The Washington Post reports that "for months," Obama "has been selling his economic stimulus package as a jobs bill that would spare the nation from a frightening spike in unemployment. ... But congressional negotiators have since trimmed billions of dollars from the package to satisfy Senate Republicans, diminishing its potential for job creation along with its overall cost." According to the Post, "Analysts are slashing their estimates of its ability to counteract a deepening recession, with several prominent economists now saying the package will save or create fewer than 2.5 million jobs by the end of next year."
In an analysis for the AP (2/13), Jeannine Aversa says, "No, the big stimulus plan won't 'save or create 3.5 million jobs,' as the president and congressional Democrats claim - at least not this year." And The Politico's Ben Smith writes, "A White House estimate of the number of jobs stimulus legislation will create includes some sharp discrepancies between state and local jobs claims. Those differences -- which the document suggests are large rounding errors" were "spotted by the office of House Minority Whip Eric Cantor."
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The Politico reports that Democratic Senatorial Campaign Committee chief Sen. Robert Menendez "is targeting nine Republican-held Senate seats in 2010, warning the GOP that Democrats are positioning themselves for a third straight election where they pick up seats." The Hill adds that Menendez "criticized Republicans for signaling that they will go after Democrats for the current stimulus package, which has passed with almost no GOP support. The stimulus has emerged as the first major campaign issue of the 2010 election cycle, which Menendez said prompted him to call a press conference so early in the cycle." Roll Call adds that despite Menendez's confidence, "four Democrats have already left the chamber because of President Barack Obama's election. The DSCC no doubt faces a more complicated playing field because it will have to defend the seats held by three appointed Senators as well as an open seat in Delaware."
The Hill reports that the National Republican Congressional Committee "has launched the first wave of ads in the 2010 cycle targeting 30 vulnerable Democrats who supported the economic stimulus package. The ads accuse the representatives in GOP-leaning districts of backing frivolous spending and highlight funding in the House-passed bill that would prevent the spread of sexually transmitted diseases, aid smoking cessation and fund the National Endowment for the Arts."
The Las Vegas Review-Journal reports that while "High-speed railroads that might someday whisk visitors between Las Vegas and Southern California received a boost under the economic stimulus bill," Republicans "are trying to make" Senate Majority Leader Harry Reid of Nevada "pay a price for the plan. Reid inserted $8 billion in the bill to construct high-speed rail lines," which "was four times more than the Senate approved in an earlier version of the stimulus bill." The National Republican Senatorial Committee "seized on the funding," arguing in a press release Wednesday that "the rail money was evidence that Reid...was going back on a promise to keep pet projects out of the $789 billion stimulus bill."
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The Anchorage Daily News reported that Alaska Gov. Sarah Palin (R) "on Wednesday called an e-mail pitch in her name for Planned Parenthood that ran wild on the Internet during the presidential campaign 'great theater.' But she said it wouldn't change her view that 'every life is precious.'" Planned Parenthood "wasn't behind the effort, but the e-mails asking for donations" wound "up generating more than $1 million for the organization nationwide," according to an official with "Planned Parenthood of the Great Northwest."
The AP reports, "The judges in Minnesota's Senate trial" on Thursday "heard...arguments" from attorneys for Norm Coleman (R) and Al Franken (D) "over what kinds of rejected absentee ballots should be counted." The Minneapolis Star Tribune reports that Coleman attorney James Langdon "argued that state law seeks 'to do everything possible to enfranchise voters,'" while the St. Paul Pioneer Press quotes a Franken attorney saying, "The (Coleman legal team) talks a lot about what they wish the law must be. But not a lot about what the law is. And the law is what the law is. It has strict requirements that must be adhered to."
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Jay Leno: "Well, it's Thursday. You know what that means? Another Obama Cabinet member nominee has quit."
Jay Leno: "Well, just a few days after being nominated, New Hampshire Sen. Judd Gregg...has withdrawn as the nominee for commerce secretary." In "a statement explaining why he turned it down, he...cited 'irresolvable conflict.' So, apparently, he must have paid his taxes."
Craig Ferguson: "It's a great day for America, everybody," but a "very tough day for the President." Another "Obama Cabinet pick has withdrawn his name from contention. Obama's nominees are dropping faster than babies out of that octuplet mother."
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