**Health Care
*The Senate Finance Committee "twice beat back efforts Tuesday to create a government-run insurance plan, dealing a crippling blow to the hopes of liberals seeking to expand the federal role in health coverage as a cornerstone of reform," WaPo reports.

*Politico: "Now, squabbling Democrats are looking to the president to be the final arbiter of whether they include the public option in the version of the bill that goes to the Senate floor -- and later, whether it will emerge in compromise legislation from a House-Senate conference."

*Dan Balz also writes that Obama is being looked at for leadership. "The time of hanging back is quickly coming to an end if he hopes to find the 60 votes needed to pass a bill in the Senate," he writes.

*Jay Rockefeller said on CNN that he is disappointed in Obama's level of support for the public option. "I know he's strongly for it, and I know his tactic has been to let the Congress do his work and then he'll come in when the crunch really counts. What I'm saying is that the crunch is really beginning to count now, and I think he's -- I know he's for it, and said so publicly, and campaigned on it, so I think it's important that he come in at this point strongly."

**President Obama
*Wall Street Journal: "The White House began its review of the Afghan war strategy in earnest Tuesday, with senior administration officials meeting via videoconference with the top commander in Kabul, Gen. Stanley McChrystal, at the start of what could be weeks of debate over whether to send thousands of reinforcements. White House officials said President Barack Obama will join in the discussions Wednesday, when he is expected to meet with Vice President Joe Biden and Secretary of Defense Robert Gates, among other top officials."

*Obama today will announce $5 billion from the stimulus package for the NIH to support research into cures for cancer and other diseases, and to create jobs.

*USA Today explores the czars debate. "Some senators of both parties ... say they're concerned that the advisers add to the government bureaucracy, duplicate work being done at departments and blur the lines of authority with other top officials."

*Vice President Biden continues his active fundraising schedule. He'll headline Iowa Democrats' annual dinner, raise money in New York for New Hampshire's Paul Hodes, and speak at the Allegheny County Democrats' dinner October 19.

**Congress
*"U.S. House Majority Leader Steny Hoyer (D., Md.) will host a meeting Wednesday between auto dealers and representatives of General Motors Co. and Chrysler Group LLC aimed at reaching an "equitable agreement" for the thousands of dealers forced to close when the two car makers declared bankruptcy," Wall Street Journal reports.

*"Lawmakers are readying tough new sanctions against Iran in the wake of its recent disclosure of a second secret nuclear facility. A parade of bills in both chambers has drawn wide bipartisan support that suggests passage would be a cinch," The Hill reports.

*"Congress is on the verge of giving itself a bump in its annual budget -- even as local governments, families and businesses across the country are tightening their belts in the worst recession in decades. Under a House-Senate conference measure, approved by the House last week and poised for passage in the Senate on Wednesday, spending for the legislative branch will increase 5.8 percent this year, boosting Capitol Hill's annual budget to $4.7 billion," Politico reports.

*"After weathering the worst financial crisis since the Great Depression, getting a financial regulatory overhaul done should be as close to a slam dunk for Democrats as anything else on their agenda this year -- and they sure could use a victory," Roll Call reports.

*"The decision by Sens. John Kerry (D-Mass.) and Barbara Boxer (D-Calif.) to seek steeper greenhouse gas emissions cuts than their House counterparts drew mixed reviews from senators yesterday, underscoring the challenges the pair will face after unveiling their climate bill today," NY Times reports.

**Campaign Stuff
*NV Sen: Politico asks, What if Harry Reid loses in the 2010 midterm elections? "It's a question few in the Senate will ask aloud but one that's creeping into the chamber's collective consciousness."

DSCC Chairman Bob Menendez (D-N.J.) doesn't believe the majority leader is in trouble. "I am convinced that while it has become the new system to go after the majority leader, Harry Reid is not Tom Daschle and this is not South Dakota," said Menendez.

*PA Gov: A new Quinnipiac poll finds Atty Gen Tom Corbett leading Rep. Jim Gerlach (R-Pa.) 42%-13%, as well as his potential Dem opponents in the general election.

*The New York Times dives into the Colorado Senate primary. "Democrats in the state are deeply divided" after Andrew Romanoff's entry to the race, "and Republicans see an opportunity to break a recent Democratic hold on statewide offices."

*The Boston Globe writes about how Attorney General Martha Coakley, a Hillary supporter in 2008, is lining up women in support of her Senate bid. She'll be formally endorsed by Senate President Therese Murray and other women legislators today.

*"Florida Gov. Charlie Crist is playing the role of a confident - and even cocky -- frontrunner as he vies to become the state's junior senator," Politico's Kraushaar writes.

*NYC Runoff: Councilman John Liu is poised to be the first Asian-American to win city-wide office, after winning the Democratic primary for comptroller. Mark Green's comeback effort failed, as Councilman Bill de Blasio won the race for public advocate.

--Mike Memoli and Kyle Trygstad