**President Obama
*HHS Secretary Kathleen Sebelius appeared on all of the morning shows today to follow up on yesterday's health care announcement. She said the White House "wouldn't hesitate" to call out providers and insurance companies if they don't live up to their pledge to slow spending increases.

*LA Times: "As the president was celebrating the collaboration among industry groups responsible for derailing previous healthcare overhaul campaigns, it became apparent that the carefully tended effort was about to face its biggest test. ... Insurance industry leaders have already rebelled at the administration's proposal to pare federal spending on the Medicare Advantage program, under which private insurers contract with the federal government to provide health coverage to seniors."

*The New York Times reports that "the continuing crisis still bedevils [Obama's] budget projections and his domestic agenda." Revised figures released by OMB showed a deficit $90 billion higher than projected, and Treasury figures showed a plan to finance health care would raise $267 billion less than projected. "Congressional Republicans seized on the new deficit projection to tweak the Democratic administration for its boast last week that its 'line-by-line scrub' of the federal budget had produced proposals to save $17 billion in the 2010 fiscal year."

*AP on the decision to change commanders in Afghanistan: "Lt. Gen. Stanley McChrystal, a senior administrator with the Joint Chiefs of Staff, will take the place of Gen. David McKiernan once he is confirmed by the Senate. ... McKiernan's exit after less than a year comes as more than 21,000 additional U.S. forces begin to arrive in Afghanistan, dispatched by President Barack Obama to confront the Taliban more forcefully this spring and summer."

*Washington Post reports on the SCOTUS pick, saying that those involved in the process inside the White House and those advising from outside "say President Obama would relish" the choice of a Hispanic nominee. "He studiously and successfully courted Hispanic support during the campaign and has maintained close ties to Latino leaders since coming to office. But the White House is constructing its appointment strategy on the belief that this will not be his only appointment to the court and that he need not reach his goal of changing the racial, ethnic and gender balance on the court with just one pick."

*In a letter to the president, Senators Barbara Boxer (D-Calif.) and Olympia Snowe (R-Maine) asked Obama to select a woman for the Supreme Court, stating "it needs to be diverse and better reflect America," where more than half of the population is female.

**Congress
*A silver lining for GOP after Specter defection? "Senate Minority Leader Mitch McConnell (R-Ky.) now leads a leaner, more politically unified Conference and arguably has a freer hand to swing a conservative hatchet at President Barack Obama and Congressional Democrats," Roll Call reports.

*Robert C. Murtha Jr. has made a sizable living for years working with companies that rely on Pentagon contracts over which his uncle, Rep. John P. Murtha (D-Pa.), holds considerable sway," WaPo reports, citing newly obtained documents showing RM namedropping JM as leverage in business dealings.

*"Usually a master of message discipline, Pelosi has been thrown off balance by a mounting firestorm over whether she or her staff learned six years ago that intelligence officials were using extreme tactics such as waterboarding," Roll Call reports.

**Campaign Stuff
*VA Gov: Hip hop stars Biz Markie and will.i.am at a Terry McAuliffe fundraiser in Arlington last night. Biz, singing his hit "Just a Friend," alters the tune a bit: "Oh baby you, got what I need, because Terry is our friend, because Terry is our friend. Oh baby you!" will.i.am, a bit more serious, told reporters: "I wouldn't be here if I didn't believe in the guy."

*The Palm Beach Post reports that in choosing the Senate, Charlie Crist is the first Florida governor to decline a re-election bid since term limits were expanded in 1968.

*Miami Herald: "For the next 18 months, as the state battles its worst financial crisis in at least half a century, Florida will be led by a bunch of lame ducks. Virtually every statewide leader in Tallahassee, beginning with Gov. Charlie Crist, is expected to be seeking higher office."

*Sheryl Crowe and Bette Midler will perform at a May 26 fundraiser President Obama headlines for Senate Majority Leader Harry Reid, Jon Ralston reports.

*"Former Massachusetts Gov. Mitt Romney's (R) camp is not happy with Republican National Committee chairman Michael Steele's suggestion that base Republicans had a problem with the 2008 presidential candidate's Mormonism," The Hill reports.

*Romney spokesperson Eric Fehrnstrom reacts to Michael Steele's comments on why he lost in the '08 primaries: "Sometimes when you shoot from the hip you miss the target. This is one of those times."

**Sports Alert: Last night was a good one for Washington sports fans. The Caps forced a Game 7 in the Eastern Conference Semifinals against the Penguins after a 5-4 overtime victory last night in Pittsburgh. And up-and-coming Nationals star Ryan Zimmerman extended his hit streak to 29 games, batting 4 for 5 with two home runs.

--Kyle Trygstad and Mike Memoli