President Obama's comments Monday in support of his economic stimulus package generated largely skeptical coverage from the news media, which cast doubt on the new White House forecasts and cast the President as facing growing political dangers on economic and fiscal issues. The CBS Evening News, which led with the story, was the only network newscast to mention the President's remarks: "It's been nearly four months since...Obama signed that $787 billion stimulus into law," said CBS, and "the economy is continuing to hemorrhage jobs." The AP says that Obama was "scrambling" yesterday to calm Americans unnerved by unemployment rates still persistently rising nearly four months after he signed the biggest economic stimulus in history." The Washington Post says that "the list of spending plans detailed...amounted to little more than a restatement of plans already underway for the coming months, without any explanation of what steps, if any, the White House would take to accelerate the pace of spending." The Wall Street Journal also reports that "the White House offered no new details Monday on how it would speed up spending from the $787 billion stimulus package, and in many ways the administration is limited by the gradual pace set out in the law passed earlier this year."
The AP reports, "For the first time, the administration admitted the economic forecasts it used to sell the stimulus were overly optimistic." Vice President Joe Biden's "top economic adviser," Jared Bernstein, said, "At the time, our forecast seemed reasonable." The Politico notes that "Republicans say the 'save or create' metric for jobs is meaningless, since it's impossible to prove or disprove." The Washington Post reports that the Administration's "push to spin the package was accompanied by a classic...misstatement" by Vice President Biden, who said "that a big chunk of the money was geared toward 'make-work projects.'"
The Los Angeles Times reports that Obama "billed" the stimulus "as an adrenaline jolt," but the economy is "still sputtering." More positive is the report in the New York Times, which describes Obama as a President "now in the position of trying to convince Americans that...his signature legislative achievement thus far...is working, even as the job losses mount." Also positive is the report on AFP, which says "the 10 new projects announced included improvements on 98 airports and over 1,500 highways, federal funding for 135,000 education jobs and maintenance work at 359 military bases and other facilities."
51% Disapprove Of Obama's Handling Of Spending The Wall Street Journal reports that "a Gallup poll released Monday showed for the first time that a majority, 51%, disapprove of Mr. Obama's handling of federal spending." Meanwhile, "support for his handling of the economy overall has slipped, according to Gallup, with 55% approving and 42% disapproving, as opposition among Republicans has hardened." The Washington Times notes, however, that Obama "remains more popular than either of his two immediate predecessors at this point in his presidency, with a 67 percent overall approval rating."
Media reports suggest the outlines of the healthcare reform debate are about to be defined, with key policy decisions looming. Coverage of the proposals made by congressional Democrats and the Administration remains mostly positive, with some sources noting bipartisanship is already fraying. The AP reports House Ways and Means Chairman Charles Rangel said senior House Democrats "drafting health care legislation are considering slapping an unspecified financial penalty on anyone who refuses to purchase affordable health insurance."
The Wall Street Journal reports, "Two pressure points are emerging in Congress's rush to pass health-care legislation by the August break: how to pay for the package and whether to create a new public health-insurance plan." Fox News' Special Report reported, "Several Republicans on the Senate Finance Committee sent President Obama a letter today warning against insisting on a government health insurance option for the middle class." The Washington Times reports, "Stirred by President Obama's warnings of rising costs, Congress is shaping sweeping health care reform plans that could create a public health insurance program and a mandate that all Americans carry insurance."
The Hill reports a debate "over creating a government-run insurance plan as part of sweeping healthcare reform intensified Monday, putting President Obama's prospects for signing legislation with strong bipartisan support in jeopardy." Ed Schultz, at the opening of MSNBC's The Ed Show, said, "The battle lines are being drawn when it comes to healthcare. President Obama wants a public option. He's made that very clear. ... The Republicans don't want to talk about this issue. Flat-out, folks, they're not on your side."
Some See Consensus As Elusive The Washington Post, meanwhile, reports there is "rare unanimity among Washington decision makers: The U.S. health system needs a major overhaul." But the "consensus breaks down on the question of how best to create a coordinated, high-performing, evidence-based system that provides the right care at the right time to the right people."
Likewise, CNN's The Situation Room reported, "Battle lines appear to be hardening right now over...healthcare. On one side, Democrats with their ideas for health reform. On the other, Republicans suggesting gloom and doom if Democrats get their way."
Business Opposition May Become Vocal Roll Call reports as health care reform "takes shape in the House and Senate and shows signs of veering decidedly left, business lobbyists are considering joining their Republican allies and mounting a public relations offensive to put the brakes on President Barack Obama's overhaul plans." As legislative details "have emerged in recent days and suggested the business community could be stuck with costly mandates and a government-run, public plan option, lobbying groups are preparing to step up their opposition messaging."
Kennedy's Absence Looms Large The New York Times reports that although ailing Senate Health, Education, Labor and Pensions Chairman Edward Kennedy "continues to work closely on the unfolding legislation and is in constant touch with staff members and colleagues, he is not expected to return to the Capitol as formal debate begins this month, either for committee hearings or when the legislation moves to the Senate floor."
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The Washington Post reports that auto parts suppliers "are planning to ask the Obama administration for an additional $8 billion to $10 billion in federal aid." The Motor and Equipment Manufacturers Association "is preparing to present its proposal for several aid programs tomorrow during a meeting with the president's autos task force."
Meanwhile, the Detroit News notes that on Sunday, White House economic advisor Austan Goolsbee said former president Bush "had done little to force GM's turnaround, except give the automaker money.'" Former White House spokeswoman Dana Perino replied that President-elect Barack Obama "had endorsed the decision of Bush in late December to bail out GM and Chrysler with $17.4 billion in emergency loans. Perino said if Obama hadn't wanted Bush to offer automakers money, they likely wouldn't have gotten it."
The Politico, in an article titled, "GOP Hopes GM Is Obama's Katrina," claims Republicans see President Barack Obama's "decision to help the unpopular carmaker as an easy opportunity to paint him as a bailout-happy, deficit-drunk spendthrift eager to impose a heavy government hand on a swath of industries. The Republicans are linking the decision to pour about $50 billion into 'Government Motors' to the new administration's energy, health care and housing plans - all of which, they argue, will result in higher costs for consumers and bigger national deficits."
Meanwhile, the Washington Post in an editorial, says, "America can have nationalized auto companies with a chance, however slim, of someday turning a profit. Or it can have nationalized firms subject to constant political tinkering. It can't have both."
Saturn Will Compete With GM After Sale The Los Angeles Times, in an editorial, writes, "Last week, GM announced an agreement to sell Saturn to Penske Automotive Group, which bought the brand but not the factories that make its cars." One "irony in Saturn's latest transformation is that it's happening because the Obama administration pressed GM to shed more brands in order to receive a federal bailout. And so...Saturn will soon be competing with the company that created it -- and almost certainly doing so with imported vehicles."
The AP reports that President Barack Obama's "penchant for last-minute demands, and a rebellion by liberal allies over his efforts to block the release of detainee abuse photos, have combined to sidetrack his bill to pay for an expanded war in Afghanistan as well as continuing military operations in Iraq." The $100 billion measure "is awaiting a House-Senate conference committee after winning easy approval last month in both chambers, but an emerging compromise on the bill has become caught in the crosscurrents coming from both Obama's left and right on Capitol Hill."
McClatchy says the bill's approval "should be one of the easiest tasks facing the White House and Congress this spring, but partisan politics has stalled the effort, a signal that getting anything done this year won't be easy." Glenn Thrush reports on his blog for The Politico that "in a reversal, House Speaker Nancy Pelosi will 'likely' block attempts by Senate Republicans to impose a three-year ban on the release of classified photos showing possible abuses of terror detainees, according to a senior Democratic aide."
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With voters going to the polls today, The Politico reports a SurveyUSA poll of 535 likely Virginia Democratic primary voters conducted June 5-7 shows state sen. Creigh Deeds leading with 42%, followed by Terry McAuliffe with 30% and Brian Moran with 21%; McAuliffe had a six-point lead over Deeds in a similar poll a week ago.
In a story headlined "Dark-horse candidate gains as Virginia voters head to the polls Tuesday," The Hill reports that "Deeds has built momentum over the final weeks, using an endorsement from The Washington Post and a final television blitz to vault to the top of the field before Tuesday's primary." With Deeds surging, "McAuliffe has turned his attention to his opponent for the first time, suggesting that Deeds will not be able to win a general election." The New York Times says Deeds "has been traveling the state" since 2007, "gradually rising in the polls as he has met with voters in small groups to promote his legislative record."
Still, the Washington Post notes the volatility in recent polls and says "all three campaigns have agreed that victory will come to the candidate whose supporters are energized enough to visit the polls on a muggy and possibly stormy June day." In a story headlined "Voter turnout is key in Democratic race," the Richmond Times-Dispatch says "Strategists suggest that an unknown heading into the first Democratic primary for governor in 32 years is the impact of get-out-the-vote apparatuses assembled by the candidates largely out of view. ... Virginia has about 5 million registered voters, but turnout is expected to be below 5 percent." The Politico also says that turnout is expected to be low despite the lively campaign being waged.
The AP reports that Alaska Gov. Sarah Palin "appeared at a Republican congressional fundraiser Monday night" in Washington, "ending a will-she-or-won't-she mystery that overshadowed the event and frustrated the GOP." Palin was "initially slated to headline the annual Senate-House" fundraising gala, but "left organizers hanging as late as Monday afternoon after she was told she wouldn't have a speaking role at the event." The Washington Post says Palin's "appearance came after a bizarre, weeks-long saga that had party leaders questioning whether she would show up." The New York Times adds that while she "did not speak," Palin was introduced to the crowd. The Post notes that the event did ultimately generate about $14 million for the National Republican Congressional Committee and the National Republican Senatorial Committee.
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The AP reports that former New Hampshire Sen. Bob Smith (R) announced yesterday that he would run for the open Senate seat in Florida, where he has lived since he retired seven years ago. The Concord (NH) Monitor says Smith "likely faces an uphill battle against a well-known and relatively popular incumbent, Florida Gov. Charlie Crist." The Sarasota Herald-Tribune adds that it is the second time Smith "has tried to make a comeback. In 2004, Smith filed to run for the U.S. Senate in Florida and briefly opened a campaign office in Sarasota but never qualified for the election."
Roll Call reports attorney Ethan Hastert (R) has filed to run for the IL14 seat previously held by his father, former Speaker Dennis Hastert (R), and now held by Rep. Bill Foster (D). The Politico adds that Foster "won the seat in a low turnout March 2008 special election to replace Hastert and then won the full term with 58 percent in November. A once-reliably Republican district just outside the Chicago metropolitan orbit, the 14th District gave 55 percent to George W. Bush in 2004. Four years later, it delivered 55 percent to Barack Obama."
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Conan O'Brien: "This morning, Supreme Court nominee Sonya Sotomayor fell and broke her ankle at LaGuardia Airport. Yeah, yeah. Yeah, if she's confirmed, the first case she'll hear is Sotomayor vs. LaGuardia Airport."
David Letterman: "The newest nominee for the Supreme Court, Sonia Sotomayor, broke her ankle at LaGuardia Airport. Broke it in three places. And listen to this, at least two of those breaks have to be approved by the Senate."
David Letterman: "You know who was in town this weekend, went to a Yankee game? Sarah Palin, governor of Alaska. ... And she was up there with Rudy Giuliani. They were sitting together. And their seats were, well, let me tell you where their seats were. They were way, way in far right field. They were so far right. Crazy."
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