IRAN GIVEN INCENTIVES TO STOP NUCLEAR PROGRAM: The United States and five other major world powers agreed Thursday to offer Iran a broad new collection of rewards if it halts its drive to master nuclear technology, but they threatened "further steps in the Security Council" if Iran refuses. The agreement, announced here by British Foreign Secretary Margaret Beckett following extended talks, brings general unity to the countries' approach to Iran after months of discord, diplomats said. It is intended to sharpen the choice facing Iran, giving it a clear reason to opt for cooperation over confrontation on its nuclear program. Washington Post: Six Powers Reach Accord On Iran Plan

NEW IRAQI PM SLAMS U.S. TROOPS; CALLS VIOLENCE AGAINST CIVILIANS "A DAILY PHENOMENON": Prime Minister Nuri Kamal al-Maliki lashed out at the American military on Thursday, denouncing what he characterized as habitual attacks by troops against Iraqi civilians. As outrage over reports that American marines killed 24 Iraqis in the town of Haditha last year continued to shake the new government, the country's senior leaders said that they would demand that American officials turn over their investigative files on the killings and that the Iraqi government would conduct its own inquiry. In his comments, Mr. Maliki said violence against civilians had become a "daily phenomenon" by many troops in the American-led coalition who "do not respect the Iraqi people." "They crush them with their vehicles and kill them just on suspicion," he said. "This is completely unacceptable." New York Times: Iraqi Accuses U.S. of 'Daily' Attacks Against Civilians

FRIST'S CAMPAIGN CMTE HIT WITH $11K FINE FOR IMPROPERLY REPORTED LOAN: The Federal Election Commission levied an $11,000 fine on the campaign committee of Senate Majority Leader Bill Frist (R-Tenn.) for its failure to properly report a $1.44 million loan taken out more than five years ago. The FEC found that the late 2000 loan - which was part of an elaborate effort to close down Frist's separate 1994 campaign committee and repay himself more than $1.2 million that he had loaned to his maiden political campaign - should have been disclosed for both the '94 committee and the 2000 campaign committee. The finding was agreed to in mid-May but released today by Citizens for Responsibility and Ethics in Washington, the liberal group that filed the complaint with the FEC when media reports surfaced about the questionable loan last year. Roll Call: FEC Fines Frist Campaign Committee

BUSH CALLS HOUSE GOP "WRONG AND UNREALISTIC" ON SENDING ALIENS BACK: President Bush yesterday rejected House Republicans' stance that illegal aliens must return home, calling it "wrong and unrealistic" and saying many will have to be allowed to stay. Speaking to the U.S. Chamber of Commerce, a block from the White House, Mr. Bush also directly challenged businesses to hire only legal workers, and said those that don't should be prepared to face increased fines. In addition, he said both the House and Senate will have to compromise, but said voters expect a bill and he said that bill should tackle both enforcement and a pathway to citizenship for illegal aliens. "The difficulty of this task is no excuse for avoiding it," he said. Washington Times: Bush shuns Republicans' stand to return illegals

CBO PREDICTS 20M LEGAL IMMIGRANTS IN THE NEXT 10 YEARS UNDER SENATE PLAN: The nation's population of legal immigrants would increase by nearly 20 million over the next decade if the recently passed Senate immigration bill becomes law, and taxpayers would spend more than $50 billion to operate a new guest-worker program and pay for extra welfare, Social Security and public health-care costs, according to a Congressional Budget Office report. But the cost of absorbing the newcomers would be offset by a boost of $66 billion in federal revenue from income taxes and payroll taxes generated by the temporary guest-worker program, along with fees that immigrants must pay to participate, the report said. Washington Post: Senate Bill Would Add 20 Million Legal Immigrants, Report Says

DOJ WANTS WEB-SURFING RECORDS FROM NET COMPANIES: The Justice Department is asking Internet companies to keep records on the Web-surfing activities of their customers to aid law enforcement, and may propose legislation to force them to do so. The director of the Federal Bureau of Investigation, Robert S. Mueller III, and Attorney General Alberto R. Gonzales held a meeting in Washington last Friday where they offered a general proposal on record-keeping to a group of senior executives from Internet companies, said Brian Roehrkasse, a spokesman for the department. The meeting included representatives from America Online, Microsoft, Google, Verizon and Comcast... The Justice Department is not asking the Internet companies to give it data about users, but rather to retain information that could be subpoenaed through existing laws and procedures, Mr. Roehrkasse said. New York Times: U.S. Wants Companies to Keep Web Usage Records

HASTERT SETS A RECORD: Rep. Dennis Hastert, who vaulted out of political obscurity when Newt Gingrich resigned as speaker of the House more than seven years ago, on Thursday became the longest-serving Republican speaker in history. Hastert, 64, surpasses fellow Illinoisan Joseph "Uncle Joe" Cannon, a pugnacious politician who ruled the House from November 1903 until the Democrats regained the majority in March, 1911. "The House has achieved unprecedented success under his leadership," said Senate Majority Leader Bill Frist, R-Tenn., noting GOP successes in Medicare, education and tax cut legislation. "It's no wonder Denny has become the longest-serving Republican speaker in history." AP via Yahoo! News: Hastert is longest-serving GOP speaker

ARNOLD SENDS 1K TROOPS TO BORDER: Despite some misgivings, Gov. Arnold Schwarzenegger said Thursday he would send 1,000 National Guard troops to the Mexican border as part of President Bush's plan to curb illegal immigration. Schwarzenegger said the mission would begin July 15 and end no later than Dec. 31, 2008 - a deadline, he said, that ensures the Guard won't be locked into an open-ended commitment. Schwarzenegger, speaking at a news conference in the Capitol, also said the Guard would rely on volunteers for the assignment and that troops would be spared the riskiest duty, involving arrest and detention of people crossing the border illegally. About 700 Guard troops have expressed interest thus far, he said. Los Angeles Times: Gov. to Send 1,000 National Guard Troops to the Border

WESTLY, ANGELIDES "TEARING EACH OTHER APART" BEFORE PRIMARY: Republican Gov. Arnold Schwarzenegger is wounded and vulnerable, and yet the two Democrats vying to unseat him are tearing each other apart in the very nightmare scenario party leaders had feared. State Treasurer Phil Angelides and Controller Steve Westly are spending millions on attack ads heading into Tuesday's primary, trading accusations of being corrupt, indulging in dirty politics and wanting to raise taxes. "The script couldn't have been written any better by the Schwarzenegger campaign," said GOP consultant Kevin Spillane. "Whichever Democrat wins is going to be a dirty campaigner and a tax increaser." AP via Yahoo! News: Democrats tear each other apart in Calif.

CHUCK "WOULD PUT A BULLET BETWEEN THE PRESIDENT'S EYES," SAYS NY COMPTROLLER: State Comptroller Alan Hevesi shot himself in the foot yesterday during a Queens College commencement address when he said Sen. Charles Schumer would gun down President Bush if he could. In a clumsy aim for laughs that he later apologized for, Hevesi remarked that the senior Democratic senator "will put a bullet between the president's eyes if he could get away with it." Hevesi made the gaffe after Schumer had left the ceremony following a light speech about how he pulled himself together following a breakup with a college girlfriend. "We really feel bad for poor Chuck, United States senator, the man who, uh, uh, how do I phrase this diplomatically - will put a bullet between the president's eyes if he could get away with it," Hevesi said. The inappropriate comment blew away members in the audience, which collectively gasped. New York Post: Hevesi Misfires in Chuck Boost

MENENDEZ LAUNCHES SENATE BID; KEAN JR. DROWNED OUT BY MOWERS: Democrat Robert Menendez got a warm hometown welcome in Hudson County yesterday when he returned to his high school to formally launch his campaign for the U.S. Senate, blasting the Bush administration and portraying himself as "an agent of change." A half-hour later, his likely Republican opponent, Tom Kean Jr., received a much ruder Hudson County reception. Kean called a news conference on the county courthouse steps in Jersey City to counter the Menendez rally. Kean castigated Menendez as "unethical" and "intellectually dishonest," saying the Senate race comes down to "a clear choice between an entrenched party boss and a proven reformer." The trouble was, nobody could hear him. As soon as Kean stepped to the podium to speak -- without a public address system -- he was drowned out by catcalls from a dozen union tradesmen and the high-decibel roar of lawn mowers fired up by a crew of Hudson County corrections inmates tending to the same patch of grass they had cut two days before. Newark Star-Ledger: Crowd's cheer vs. mowers' roar

BAD DAY FOR CO GOV CANDIDATE: Republican Marc Holtzman's campaign bus came to a screeching halt Thursday when the secretary of state notified the gubernatorial candidate that he did not have enough valid signatures to make the Aug. 8 primary ballot. The news came just hours after a judge ruled Holtzman broke campaign finance-laws by appearing in anti-Referendum C ads that were intended to jump-start his run for governor. Holtzman said he was "supremely confident" that he had enough signatures to make the ballot and would continue fighting. "If necessary, we will take this to the Supreme Court of Colorado," he said. "Under absolutely no circumstances will I drop out." Denver Post: Holtzman misses ballot

DOOLITTLE'S JACK AND DUKE PROBLEM: Representative John Doolittle heads into a primary contest next week burdened by two dubious fund- raising distinctions. The California Republican not only got the biggest campaign check ever written by lobbyist Jack Abramoff; he also leads Congress in donations from a businessman involved in the bribery case of now-imprisoned former Representative Randy "Duke" Cunningham. Doolittle's ties to the Washington scandals have helped attract challengers for his job, both in the June 6 Republican primary and in November's general election. "He seems to be at the intersection of an awful lot of stuff here," said Norman Ornstein of the Washington-based American Enterprise Institute. "If I were Mr. Doolittle, I wouldn't be sleeping very well these days." Bloomberg: Doolittle Faces Election Burdened by Abramoff, Cunningham Ties

JOE BIDEN'S SON LAUNCHES DE AG BID: Joseph R. "Beau" Biden III officially kicked off his run for attorney general Thursday, promising new approaches to cyber-crimes and offenses against the elderly, and suggesting new steps to bolster community policing efforts. Biden, a Democrat, talked to a noontime crowd of more than 200 at the Schwartz Center for the Performing Arts as part of the traditional three-county tour candidates make to launch statewide campaigns. This year, the race for attorney general won't feature an incumbent, following M. Jane Brady's retirement last year to take a seat on the Superior Court bench. Wilmington News Journal: Beau Biden kicks off his campaign