Strategy Memo: Done Deal?
Good morning, Washington. The Senate passed an $838 billion stimulus bill yesterday and immediately entered into negotiations with the House on a compromise package to send to President Obama. The progress of late night negotiations has reportedly caused lawmakers and White House officials to be "cautiously optimistic" that a deal could be passed as early as today.
Obama makes a much shorter trip today to pitch the stimulus plan, joining Gov. Tim Kaine at a construction site in Springfield, Va., to demonstrate how the legislation will create jobs. He'll then return to the White House, where he'll meet with Secretary of Defense Robert Gates.
Vice President Joe Biden heads a bit north to Pennsylvania, where he'll be joined by Gov. Ed Rendell to discuss the need to invest in infrastructure. Rendell is chair of the National Governors Association, and had chosen infrastructure as his yearly theme. Michelle Obama will be part of a panel discussion on African American History Month at Howard University.
Here's what else we're looking at today...
**Stimulus
*Senate and House negotiators may be closing in on an $800 billion stimulus plan, CNN reports. "Details are starting to emerge on the blending of House and Senate versions of the stimulus package. Two senior Democratic sources said negotiators had agreed on a top line number of $800 billion, but later one of those sources said the number could be even less."
*Politico: "Scaling the package back to $790 billion to $800 billion with the goal of still generating 3.5 million jobs is part of the discussions. One option would be to reduce Obama's signature 'Making Work Pay' tax break to $400 for individuals and $800 for couples--down from $500 and $1000 respectively."
*David Broder interviewed Vice President Biden as the bill passed. He said he understands why many Republicans might want to "wait and see what is in the final version" rather than be "the first to jump in the pool." But he said he thinks that "there are a couple dozen [Republicans] who would not have voted no if their votes had decided" the fate of the legislation.
*WSJ: The stock market reacted negatively to Treasury Secretary Timothy Geithner's rollout of a new TARP program. "The lack of detail in his much-anticipated speech helped drive stocks down nearly 5%, the worst selloff since President Barack Obama assumed office." Geithner told CNBC: "As you know, this is enormously complicated. We're being exceptionally careful that the taxpayer is being protected, that we're taking risks we understand, and that we're using these resources in a way that's going to give the maximum benefit in getting these markets going again."
**President Obama
*Chris Cillizza says a new name is in the mix for HHS, and it's a Dean - Lloyd Dean. He heads Catholic Healthcare West, a non-profit health provider based in northern California.
*Five presidents were tested by Gallup for the best ever, and here is how they finished: Reagan (24%), Kennedy (22%), Lincoln (22%), FDR (18%), Washington (9%).
**Congress
*Politico publishes the results of its survey of all 99 sitting senators' tax records. Offices were asked who prepares taxes, whether the IRS ever discovered errors, and if they've had to pay back taxes. 56 responded.
**Campaign Stuff
*John McCain e-mailed supporters last night to say: "I want you to know that I do intend to seek re-election. The magnitude of the financial crisis that many American families are facing makes it clear to me that I want to continue to serve our country in the Senate." He said he anticipates "a tough re-election challenge."
*His former running mate, Sarah Palin, has turned down an invitation to be the Monday headliner for the CPAC conference, with a spokesperson saying she had to focus on Alaska's legislative session. Meanwhile, Alaska Atty. Gen. Talis Colberg resigned Tuesday "as bad blood boils" between Palin and state legislators over Troopergate. "Colberg was under intense pressure from state legislators of both parties. They were furious at his attempt to quash legislative subpoenas in last fall's investigation of whether Palin abused her power and pressed for the firing of an Alaska State Trooper who was her former brother-in-law." Palin says: "It is a harsh political environment right now."
*Illinois Treas. Alexi Giannoulias looks like he'll challenge Sen. Roland Burris in the Democratic primary in March 2010, The Hill reports.
*VA Gov: On Saturday, Washington Post looked at Terry McAuliffe, and that he "has to determine how to unleash such a powerful political weapon" in Bill Clinton. Today, WaPo looks at Brian Moran, whose congressman brother, Jim Moran, could either be a "boon or bane" in Virginia.
--Mike Memoli and Kyle Trygstad



