**Health Care
*Washington Post: "Six months into his presidency, Barack Obama may have no greater test of his ability to translate personal popularity into a successful legislative agenda than the upcoming two weeks." Because of that, the White House is launching "a new phase of its strategy designed to dramatically increase public pressure on Congress: all Obama, all the time."

*And that test comes as the Post/ABC poll puts Obama's approval rating under 60 percent for the first time. It's dropped six points since June. Only 49 percent approve of his handling of health care, and 43 percent approve of his handling of the budget deficit.

The Post's analysis: "The erosion in Obama's overall rating on health care is particularly notable among political independents: While positive in their assessments of his handling of health-care reform at the 100-day mark of his presidency (53 percent approved and 30 percent disapproved), independents now are divided at 44 percent positive and 49 percent negative. At the same time, there is no slackening in public desire for Obama to keep pressing for action on the major issues of the economy, health care and the deficit. Majorities think he is either doing the right amount or should put greater emphasis on each of these issues."

*Sunday shows: "Facing independent budget predictions that contradict the White House's rhetoric, officials sought to refute Republican objections to massive changes in how Americans receive health care. They emphasized that Congress has not yet settled on an outline for health care legislation and reiterated Obama's desire for a bipartisan approach," AP reports. "This is a work in progress," Health and Human Services Secretary Kathleen Sebelius said.

*OMB Dir. Peter Orszag "refused Sunday to rule out the possibility that federal tax money might be used to pay for abortions under proposed health care legislation," New York Times reports.

The NYT also reports that Orszag "appeared to soften on the administration's insistence that a health care reform bill be delivered by August. 'It's still the goal,' Mr. Orszag said on CNN's 'State of the Union,' after he was asked if the president still wanted a bill on his desk before the summer recess. 'We think we can make that.' "

*Last Friday, Sen. Jim DeMint (R-S.C.) said on a conference call: "If we're able to stop Obama on this, it will be his Waterloo. It will break him." ABC: "You should expect to hear that quote this week from the White House as they use it to rally their troops."

*Ted Kennedy writes about the health care fight in Newsweek.

*At this weekend's National Governors Association Conference, some questioned the health insurance proposals in Congress. "The governors' backlash creates yet another health care headache for the Obama administration, which has tried to recruit state leaders to pressure members of Congress to wrap up their fitful negotiations," the Times reports.

*Politico: "Trying to sell a historic health bill to a balky caucus, House Speaker Nancy Pelosi told POLITICO in an interview that she wants to soften a proposed surcharge on the wealthy so that it applies only to families that make $1 million or more. The change could help mollify the conservative Democrats who expect to have a tough time selling the package back home. Their support is the single biggest key to meeting the speaker's goal of having health care reform pass the House by the August recess."

*Today at the National Press Club, RNC chair Michael Steele will accuse Obama of conducting "risky experimentation" with his health care proposals, saying they will hurt the economy and force millions to drop their current coverag, per AP. He'll also say that Obama and Pelosi are part of a "cabal" that wants to implement government-run health care.

*The Hill reports that "the biggest threat to the August goal - if not successful passage of the bill altogether - is coming from fiscally conservative Blue Dog Democrats, who have banded together in opposition to everything from Medicare reimbursement rates to an automatic public plan, and have hinted at bolting on the idea of taxes of any kind. The will of these Democrats, and the power of their leaders to cut deals with them, will be on full display starting on Monday when the critical Energy and Commerce Committee continues its markup of major portions of the House bill."

*WaPo: "For his first feat this legislative session, Rep. Henry A. Waxman (D-Calif.) staged a coup and deposed a sitting chairman and dean of the House. He followed that up with a nail-biter victory in the House for his beloved climate change bill. But on Monday, the hard work will begin for the chairman of the House Energy and Commerce Committee as he labors to advance President Obama's endangered health-reform agenda."

*WSJ: "A plan to end a program that would cut government payments to doctors is emerging as the flash point in the debate over whether President Barack Obama's effort to overhaul the health system would increase the federal budget deficit. The proposal was crucial to winning support from the politically powerful American Medical Association -- but it has also made it tougher to argue that the health overhaul would pay for itself."

*AP: "The White House is being forced to acknowledge the wide gap between its once-upbeat predictions about the economy and today's bleak landscape. The administration's annual midsummer budget update is sure to show higher deficits and unemployment and slower growth than projected in President Barack Obama's budget in February and update in May, and that could complicate his efforts to get his signature health care and global-warming proposals through Congress."

**Campaign Stuff
*AP talks to Sarah Palin in her final week as governor, and she insists she won't ditch Alaska for good. "I am Alaskan. I've grown up here and I'm going to remain in Alaska," she said. "It's not farewell, it's more like thanks for letting me be here and I'll see you soon."

*Cillizza reports that Gov. Bobby Jindal (R-La.) prepares to re-emerge on the national stage, weighing in on the health care debate with op-eds in Politico and the Wall Street Journal, and cable news hits. "Governor Jindal has seen enough," said Curt Anderson, a consultant for Jindal. "As a health-care policy expert, he strongly believes that the House Democrat[ic] plan would be a disaster for the long-term health of the American people, and the long-term health of the economy."

*Politics Daily sits down for an interesting interview with former Bush and McCain adviser Mark McKinnon.

*A Nevada poll shows that a slight plurailty of sate voters don't think John Ensign should not seek re-election - 45-43 percent. Only 34 percent think he should resign (up from 29 percent in June), and his favorability rating is 31/38, compared to 39/37 in June.

*Ahead in the polls, Republican Chris Christie "is sticking to a simple challenger's strategy of offering lots of headlines that grab attention and little fine print that can trigger trouble from critics, the Star-Ledger reports. "Christie has released plans on alternative-energy usage and revitalizing the state's urban centers. But Democrats insist Christie has given no clear explanation of how he would pay for his plans and what he would sacrifice in a state government perpetually in a fiscal crisis."

*Out-of-state groups have spent $6 million already on the Virginia governor race, compared to just $61,000 at this point in 2005, according to the Richmond Times Dispatch.

*Ethan Hastert, son of the former House Speaker, will seek his old seat, the Sun-Times notes. Rep. Aaron Schock will headline a fundraiser for him July 24.

*In Kentucky, Gov. Steve Beshear has named his running mate - for an election that is still two years away. It's Louisville Mayor Jerry Abramson. The current lieutenant governor, Dan Mongiardo, is running for U.S. Senate. And under state law, Beshear needed to name a new running mate now to raise funds for 2011.

--Mike Memoli and Kyle Trygstad