On "The Situation Room" today, we asked viewers the following questions, and here are some of our favorite responses that we didn't get to read on air:

What does it mean when the U.S. Senate votes to build a fence along the Mexican border, but then votes against the funding?

In November, the politicians can say they voted for keeping illegals out of the U.S. They don't care what happens; all they want are votes.
Hubert, Oberlin, Louisiana

It means that America is broke and that tax cuts are more precious than the security of America. We have spent and spent and spent and now we are reaping the rewards of this Congress' party-line voting.
Eileen, Bend, Oregon

It means they believe the American people are stupid and do not pay attention. Maybe we the people should elect the "fools" and then fail to pay them or their benefits or their perks.
Carolyn, Wentzville, Missouri

What does it mean if Iran is supplying missiles to Hezbollah?

It means Hezbollah is getting small arm supplies from Iran, while Israel gets advanced jets, tanks, satellite imagery, and guided missiles from us.
Sal, New York, New York

This is exactly why Iran should not have nuclear weapons. It has been proven that they supply weapons to terrorist organizations. What would make them refrain from giving the terrorist nukes? They must be stopped now before it gets worse!
Matt, New York

It simply means that, ultimately, Iran will have to be dealt with if peace is ever to be restored in the region. Like it or not, the U.S. will have to take on Iran in one way or another, and the end result will not be pretty! Everyone will lose!
Ted, British Columbia

Are Republicans in jeopardy of losing control of Congress in November?

There is no way the Republicans will lose in November. The war in Iraq and now the Israeli war in the Middle East will pave the way for victory. Get used to it, Jack, Republicans rule.
Maurice, Two Rivers, Wisconsin

We can only hope. Maybe it'll spark the more moderate members of the Republican Party to take control back from the fundamentalists that are running the party and the country into the ground.
Jon, Alpharetta, Georgia

I'm not sure I understand, Jack. What's in November? If by chance you're referring to that "event" where we all rush out and cast ballots that are then miscounted in favor of the Republicans, then I'd have to say don't hold your breath. These people have a firm hold of power and aren't letting it go.
Chris, Enoloa, Pennsylvania

One can only hope so. Let's make the lobbyists and the special interests work for their money by electing a new Congress.
Geoff, Alta Loma, California

From The Morning Grind

Democratic Reps. Chet Edwards (Texas) and John Spratt (S.C.) have called on the Democratic Congressional Campaign Committee to pull down a controversial web video that uses images of flag-draped coffins and a grave of a fallen soldier.

The two Democrats sent letters to DCCC Chairman Rahm Emanuel (Illinois) asking him to remove the video, "America Needs a New Direction" from its website after Republicans accused Democrats of trying to gain politically from the pictures. Emanuel urged political supporters in a fundraising e-mail sent Tuesday to view the video on the DCCC's website.

"I would not have included the clip showing the flag-draped caskets or the clip showing a soldier standing at the grave of a fallen comrade," Spratt wrote Thursday in his letter to Emanuel. "I strongly recommend that you pull this ad and delete both of these clips before running it again."

Chris Turner, Edwards' campaign manager, told the Grind that the Texas Democrat wrote a similar letter to the DCCC chairman.

A DCCC spokesman told the Grind this morning they had no comment on the letters. But House Minority Leader Nancy Pelosi (D-California) defended the video yesterday and pointed out that President Bush's top political adviser Karl Rove has spoken about how the GOP needs to capitalize politically on the war.

"I don't know why they are making an issue of this except that, again, it speaks truth to power about what is happening in Iraq," she said.

The video has raised new questions about how the Iraq war can be discussed in the November elections. Privately, Democrats acknowledge that Spratt and Edwards must condemn the video because they represent Republican districts.

In Edwards Waco-based district, Bush soundly defeated Sen. John Kerry (D-Massachusetts) 70 percent to 30 percent in the 2004 presidential contest, while Edwards won re-election that same year by a 51 percent to 47 percent margin. Edwards is favored to win re-election again this year, but his GOP opponent Van Taylor is an Iraq war veteran and he is trying to capitalize on the DCCC video. In South Carolina, Spratt is also coming under fire from his GOP opponent, state Rep. Ralph Norman. Bush received 57 percent of the vote in Spratt's Rock Hill based-district in 2004 compared to Kerry's 42 percent. Spratt sailed to re-election that same year with 63 percent of the vote, but he is expected to face a tougher challenge from Norman.

House Republican leaders have urged candidates to speak out against the video this weekend as they travel throughout their districts. For example, Rep. Thelma Drake (R-Virginia) is holding a news conference with veterans in Virginia Beach this afternoon to condemn it.

From The Morning Grind

First Lady Laura Bush told a German journalist in an interview that, of course, she gives President Bush advice but does so in small doses. And she noted that it is impossible not to discuss politics, after all they live "above the shop."

Excerpted from a transcript provided by the White House:

Q. Do you actually give advice to your husband, even critical or controversial advice?

MRS. BUSH: Sure, doesn't every wife give their husband some advice? But I also am aware that I don't want him to give me a lot of advice or criticism, so I refrain from criticizing too much.

Q. Do you actually discuss politics in your marriage at all?

MRS. BUSH: Sure, of course. I mean, we live politics. We live in the White House. We live above the shop, so to speak, because the Oval Office is right there where we both live and work. So we constantly discuss issues and politics. That's what we think about all day and that's what the President is faced with every day in his office, of course.

Q. Is it sometimes controversial? Do you have a different point of view sometimes?

MRS. BUSH: Sometimes we have a different point of view.

Q. What about?

MRS. BUSH: We also have been married for a long time; we have a real understanding of each other. So even when we might differ on an issue, I understand where he comes from on that issue and I think he understands my point of view, as well.

From The Morning Grind

House Speaker Dennis Hastert (R-Illinois) was hospitalized Thursday for a skin infection that is expected to keep him off his feet for a few days. Doctors are treating Hastert for cellulitis, a bacterial infection that first appeared on his lower left leg a few days ago. If left untreated, it can spread quickly and be life threatening, according to the Mayo Clinic's website. But Hastert is expected to be back to work next week.

PLAME, WILSON SUE CHENEY LIBBY AND ROVE: Former CIA officer Valerie Plame and her husband, former ambassador Joseph C. Wilson IV, filed a lawsuit yesterday against Vice President Cheney, presidential adviser Karl Rove and former vice presidential aide I. Lewis "Scooter" Libby, accusing the three of violating their constitutional rights in retaliation for Wilson's criticism of President Bush. Plame and Wilson say that, after Wilson accused Bush of twisting intelligence about Iraq's pursuit of weapons of mass destruction, Cheney, Rove and Libby conspired to "discredit, punish and seek revenge against the plaintiffs that included, among other things, disclosing to members of the press Plaintiff Valerie Plame Wilson's classified CIA employment." Washington Post: Vice President Sued by Plame And Husband

BUSH "FREEFALL" OVER, BUT SOME SCARY NUMBERS FOR GOP: Republicans are in jeopardy of losing their grip on Congress in November. With less than four months to the midterm elections, the latest Associated Press-Ipsos poll found that Americans by an almost 3-to-1 margin hold the GOP-controlled Congress in low regard and profess a desire to see Democrats wrest control after a dozen years of Republican rule... The AP-Ipsos poll of 1,000 adults conducted Monday through Wednesday found that President Bush has stopped his political freefall, with his approval rating of 36 percent basically unchanged from last month... The AP-Ipsos survey asked 789 registered voters if the election for the House were held today, would they vote for the Democratic or Republican candidate in their district. Democrats were favored 51 percent to 40 percent. AP via Yahoo! News: Most Americans plan to vote for Democrats

WH TO "TEST THE CONSTITUTIONALITY" OF WARRANTLESS WIRETAPS: After months of resistance, the White House agreed Thursday to allow a secret intelligence court to review the legality of the National Security Agency's program to conduct wiretaps without warrants on Americans suspected of having ties to terrorists. If approved by Congress, the deal would put the court, the Foreign Intelligence Surveillance Court, in the unusual position of deciding whether the wiretapping program is a legitimate use of the president's power to fight terrorism. The aim of the plan, Attorney General Alberto R. Gonzales told reporters, would be to "test the constitutionality" of the program. New York Times: Bush Would Let Secret Court Sift Wiretap Process

"DEEPLY DIVIDED" ON DETAINEE RIGHTS: Three days of congressional testimony this week by senior Bush administration officials about U.S. treatment of detainees in the war on terrorism have made clear that the administration remains deeply divided on the issue and unsure how to replace a key policy that the Supreme Court declared illegal two weeks ago. Interagency divisions normally kept hidden from public view have been on unusual display as officials from the Justice Department and the Pentagon have offered starkly different accounts of the administration's reaction to the court's opinion, baffling members of Congress and other interested parties about U.S. intentions. Washington Post: Policy Rewrite Reveals Rift in Administration

BUSH'S "BOAR BANTER": With the world's most perplexing problems weighing on him, President Bush has sought comic relief in a certain pig. This is the wild game boar that German chef Olaf Micheel bagged for Bush and served Thursday evening at a barbecue in Trinwillershagen, a tiny town on the Baltic Sea where the boar chef also serves as second deputy mayor... The president's host, German Chancellor Angela Merkel, started a serious ball rolling at this news conference in the 13th Century town hall on the cobblestone square of Stralsund. But Bush seemed more focused on "the feast" promised later. "Thanks for having me," Bush told the chancellor. "I'm looking forward to that pig tonight."... When an American reporter asked Bush whether he is concerned about the Israeli bombing of the Beirut airport and about Iran's failure to respond to an offer for negotiations that the U.S. and its European allies have made, Bush replied with more boar jokes before delving into the substance of the questions. "I thought you were going to ask about the pig," said the president, promising a full report from the barbecue. "I'll tell you about the pig tomorrow." Chicago Tribune: Hogging the humor spotlight

VOTING RIGHTS ACT EXTENDED: The House voted overwhelmingly on Thursday to renew expiring provisions of the Voting Rights Act after supporters of it defeated challenges mounted by conservative opponents. The 390-to-33 vote on the landmark civil rights act capped a day of impassioned debate that heightened the politically charged atmosphere surrounding race and ethnicity, already aggravated by the recent fight in Congress over immigration. New York Times: After Challenges, House Approves Renewal of Voting Act

VOTING FOR, AND PAYING FOR, TWO ENTIRELY DIFFERENT THINGS: Less than two months after voting overwhelmingly to build 370 miles of new fencing along the border with Mexico, the Senate yesterday voted against providing funds to build it. "We do a lot of talking. We do a lot of legislating," said Sen. Jeff Sessions, the Alabama Republican whose amendment to fund the fence was killed on a 71-29 vote. "The things we do often sound very good, but we never quite get there." Mr. Sessions offered his amendment to authorize $1.8 billion to pay for the fencing that the Senate voted 83-16 to build along high-traffic areas of the border with Mexico. In the same vote on May 17, the Senate also directed 500 miles of vehicle barriers to be built along the border. Washington Times: Senate denies funds for new border fence

DCCC AD PROVOKES FUROR: Rep. Nancy Pelosi of San Francisco and House Republican leaders exchanged verbal blasts Thursday over an Internet ad produced by Pelosi's Democratic House campaign committee that shows the flag-draped coffins of American soldiers killed in Iraq. Republicans, sensing an opportunity to rally their conservative base in the midterm election-year campaign, said they were outraged and called on Democrats to pull the ad, which was posted July 2 on the Democratic Congressional Campaign Committee's Web site. Refusing to back down, Pelosi scoffed at the criticism, saying the Republicans are "in denial of the consequences of their actions in Iraq." San Francisco Chronicle: GOP Slams Democrats Over Coffin in Ad

HASTERT HOSPITALIZED: Speaker Dennis Hastert (R-Ill.) was admitted to Bethesda Naval Hospital today for treatment of a skin infection, and is likely to remain hospitalized for several days. According to a statement from Hastert's office, "The Speaker's physician is requiring him to remain at the hospital over the weekend and be off his feet for at least 72 hours so that it can be properly treated with intravenous antibiotics before returning to his normal schedule next week." The skin infection has been diagnosed as cellulitis, which is common among diabetics like Hastert. Roll Call: Hastert Admitted to Hospital for Skin Infection

GILLESPIE, GOP OFFICIALS COULD BE QUESTIONED IN PHONE-JAMMING SUIT: A judge yesterday allowed state Democratic attorneys to question a former Republican national chairman and other high-ranking GOP officials about an illegal election day 2002 phone-jamming operation. Attorneys for the national and state Republican parties did not object to the Democrats' request in Hillsborough County Superior Court prior to the ruling by Hillsborough County Superior Court Judge Philip Mangones. But targets of soon-to-be-issued Democratic subpoenas will have the legal option of trying to have those subpoenas quashed in court, attorneys said. The targets include former Republican National Chairman Ed Gillespie, former White House political affairs official Alicia Davis and two former Republican Party officials who are now consultants well-known in political circles. The Democrats also want to examine cell phone records of former White House political affairs director Ken Mehlman, the current RNC chairman. Manchester Union-Leader: GOP officials to face jamming questions

ROMNEY TAKES OVER AS OFFICIALS FIND MORE BIG DIG DEFECTS: Big Dig officials announced last night that the entire Interstate 90 tunnel network under South Boston is riddled with as many as 250 places where ceiling supports were pulling away from the tunnel roof - the flaw that apparently dropped a massive panel on a car, killing Milena Del Valle Monday. Shortly after last night's announcement, lawmakers passed emergency legislation proposed by Romney to let him take control of inspections from embattled Turnpike Chairman Matthew Amorello and embark on a "stem to stern" audit of tunnel safety. Boston Herald: Problems ignored in rush to wrap it up: Gov takes control

TURNPIKE CHIEF REFUSES TO STEP ASIDE: The Legislature overwhelmingly passed a bill last night to strip Turnpike Authority chairman Matthew J. Amorello of much of his oversight over the Big Dig and give Governor Mitt Romney the power to decide when to reopen a tunnel where a 38-year-old woman was killed in a ceiling collapse this week. The nearly unanimous votes in the House and Senate showed how Amorello, a divisive figure in his four years leading the agency, lost the support of his most powerful Beacon Hill allies yesterday. Legislative leaders discussed plans to ease Amorello out of his job, but he continued to reject the pressure to step down. Boston Globe: Turnpike chief resisting pressure to step down

UPDATE: KT'S "EITHER A LIAR OR DELUSIONAL": Republican senate candidate Kathleen (KT) McFarland bitterly broke with her whole family in 1992 when she accused her father of incest - an explosive charge her brother calls "complete baloney." "I'm not telling people how to vote, but she's either a liar or delusional," said Tom Troia, 52, who still lives in Wisconsin, where they grew up. "I've described her as evil. That's a pretty apt description." At a campaign event in Brooklyn, a poised McFarland, 54, refused to discuss her brother's stunning accusations. New York Daily News: KT's evil & a liar, cries bro

61 PERCENT SAY YASSKY'S RACE SHOULDN'T DISQUALIFY HIM: Most voters don't think black politicians in a predominately black Brooklyn district should try to keep a white candidate out of the race, according to a poll released yesterday. The race to fill Rep. Major Owens' 11th District seat has been overshadowed by efforts by some black leaders to oppose the candidacy of Councilman David Yassky, who is white. But a Quinnipiac poll of voters across the city shows that 61 percent don't think Yassky should be discouraged from running just because he is white. New York Post: Poll: White Candidate Has Right to Run

"JOE'S DEAD INTERN" AND THE HARRIS EXODUS: Katherine Harris' floundering U.S. Senate campaign lost its high-level staff again this week and is groping for a message -- which doesn't surprise Republican insiders who trace the seeds of her trouble to the story of "Joe's dead intern." This wasn't any old Joe. It was Joe Scarborough, host of the prime-time MSNBC show Scarborough Country and a former Pensacola Republican congressman who was courted last summer by national Republicans to run against Harris. But before he could announce he wouldn't, Harris called major donors and suggested Scarborough would have to answer questions about the strange death of a former staff member in 2001, according to two former high-level Harris staff members, a GOP donor and Scarborough. "That was the first clue that something wasn't right with Katherine Harris," Scarborough told The Miami Herald in a recent interview, noting that a medical examiner found his staff member's death was natural and not the result of foul play. Miami Herald: Story of 'Joe's dead intern' began Harris' slide, insiders say

MENENDEZ RAISED TWICE AS MUCH AS KEAN IN Q2: Democratic Sen. Robert Menendez continues to outpace Republican challenger Tom Kean Jr. in fundraising for the New Jersey seat, amassing $2.58 million from April through June, more than double what Kean raised. Menendez has $7.4 million cash on hand, said campaign spokesman Matt Miller. He raised slightly more than he did in the first quarter of the year. Kean, the son of former New Jersey Gov. Thomas Kean, raised $1.1 million for the latest three-month period, $500,000 less than he raised in the first quarter of this year. Kean has $2.25 million cash on hand. The bulk of Kean's second quarter cash came from a June fundraiser hosted by first lady Laura Bush. AP via Yahoo! News: Menendez outpaces Kean in N.J. fundraising

On "The Situation Room" today, we asked viewers the following questions, and here are some of our favorite responses that we didn't get to read on air:

Has Israel overreacted to the kidnapping of three of its soldiers?

Israel has every right to defend itself by responding to kidnappers of its people. They are not overreacting, they are making a statement "Leave Our People Alone!"
David, Plainview, Texas

Absolutely, Israel has overreacted. I am pro-Israel, but I do not see how the world can let them bombard and destroy a neighbor over the lives of two soldiers. Reactions should be proportionate.
Thomas, Chicago, Illinois

Hell no! Time was, this country would have reacted even more strongly, before the age of political constipation arrived. Nice to know someone still acts on their citizens' interests.
Mike, Blandinsville, Illinois

Over-reacted? Supposing a rogue band of American thugs kidnapped two Mexican soldiers, would that give Mexico the right to bomb and cripple JFK, LaGuardia and Newark airports? Like America's invasion of Iraq, Israel's actions show a total disregard for the basic rule of law.
John, Sarasota, Florida

Why has the White House agreed to let a special court review the NSA domestic surveillance program?

Ahhhh, come on Jack! We all know this is gonna be another dog and pony show. The secret court will ask for stuff from the White House and won't get it. You see, it's all secret. But the whole charade will continue until after the mid-terms are over. The name of the game from now till then is "smoke and mirrors"!
Gary, Hollywood, Florida

Because they are afraid they will lose control of the Senate and/or the House in the elections when us taxpayers are sick of no oversight and kick the Republican majority out! They are truly afriad.
Melanie, Los Angeles, California

Why? Only one reason, Jack, and that is the elections in November. Everything the White House does from now until election day will be carefully crafted to ensure a Republican victory in November, because it is the only thing that will prevent Bush from being impeached.
Cara, Edgewood, New Mexico

Should the U.S. have vetoed a U.N. Security Council resolution condemning Israel's military incursion into Gaza?

The U.S. was absolutely wrong in vetoing that resolution. It is like a biased judge dismissing criminal charges against an accused only because the accused is the judge's personal friend.
Al, Los Angeles, California

I think the U.N. has long been biased against Israel. The nations that adopt and vote for these resolutions are the same nations that want to wipe Israel off the map.
Francis, Ontario

Amazing that the unoccupied Palestinian state still attacks... so much for Israel giving back the land argument... If you were Israel, would you not respond with even more force? Let the Crusades begin again
B.

No way should we veto a condemnation of Israel... How can we object when China vetoes anything negative about North Korea? The stupidity of our double standard is nauseating.
Bill, Denver, Colorado

Merging wildfires
Governor Schwarzenegger has just declared a state of emergency for San Bernadino county, California, where wildfires continue to burn for the fourth day straight. The latest incident reports and maps provide an inside look at how two California wildfires are threatening to merge.

CIA leak lawsuit
Former CIA operative Valerie Plame Wilson has filed a federal lawsuit against Vice President Cheney, former Cheney Chief of Staff Scooter Libby, and White House advisor Karl Rove. The suit (PDF), filed by Plame and her husband, Joseph Wilson, a former U.S. ambassador, accuses Cheney, Libby, and Rove of conspiring to destroy her career by revealing her identity publicly.

Watch "The Situation Room" at 4:00 PM, 5:00 PM, and 7:00 PM, ET for this story and more from our Internet reporters.

WASHINGTON (CNN) -- Speaker of the House J. Dennis Hastert was hospitalized Thursday for treatment of a skin infection, his office said in a written statement.

Hastert, 64, was admitted to the National Naval Medical Center -- commonly called Bethesda Naval Hospital -- for treatment of cellulitis, a bacterial infection, and will remain hospitalized over the weekend and off his feet for at least three days "so that it can be properly treated with intravenous antibiotics," the statement said.

A spokesman for the speaker, Ron Bonjean, said Hastert is in good condition, talking on the telephone and eager to get back to work.

The infection appeared several days ago on his lower left leg.

Its symptoms are a swollen, red section of skin that feels hot and tender. Untreated, it can spread quickly and be life-threatening, according to the Mayo Clinic's Web site.

WASHINGTON (CNN) -- A bill proposed Thursday -- offered by Sen. Arlen Specter with the assent of the Bush administration -- would require a court to review the constitutionality of the National Security Agency's controversial intelligence-gathering program. (Full story)

Specter, a Pennsylvania Republican, unveiled the bill at a meeting of the Senate Judiciary Committee, which he chairs. Soon after, the White House voiced support for the legislation, saying it shows "the president and the Congress ... coming together to codify the capacity of future presidents to take actions to protect the country."

Sen. Orrin Hatch, R-Utah, said the agreement reflects "a major, major change" in the White House's approach to the contentious issue.

Electronic surveillance programs run by the secretive NSA have been under fire since December, when The New York Times disclosed that the government was listening in -- without obtaining a court order -- on international phone calls, e-mails and other communications between people in the United States and those overseas involving people suspected of having ties to terrorists.

Some legal scholars have said the program is an illegal and unwarranted intrusion on Americans' privacy, but the Bush administration has defended it as a necessary tool in the battle against the al Qaeda terrorist network.

--CNN's Ted Barrett and Dana Bash contributed to this report.

From The Morning Grind

Republicans sharply criticized Democrats Wednesday for using images of flag-draped coffins and a makeshift grave of a fallen soldier in a new web-based video.

The Democratic Congressional Campaign Committee distributed a link to the video "America Needs a New Direction" on Tuesday to political supporters in a fundraising e-mail.

"I hope you will watch it, forward it on to your friends and family and ask them to join our movement for a Democratic Congress and a new direction for America," DCCC Chairman Rahm Emanuel (Illinois) writes in the e-mail letter.

National Republican Congressional Committee Chairman Tom Reynolds (New York) charged that Democrats are trying to "blatantly exploit the sacrifices made by the men and women of our Armed Forces" for political purposes.

"Regardless of what your views on the war may be, this crosses the line," Reynolds said in a statement released by the NRCC. "Rahm Emanuel owes our troops, their families, and the families of the fallen an apology."

DCCC spokesman Bill Burton said there are no plans to take the video down and accused Republicans of going to "great lengths to obscure the pictures of these brave young men and women who come home having paid the ultimate sacrifice.

"Perhaps if these Republicans had been able to summon up this same level of outrage when President Bush sent out troops off to war without the body armor they needed and the Humvee armor they required, so many wouldn't have come home in flag-draped coffins or with life changing injuries," Burton said in a written statement.

The video shows at least 12 coffins covered with flags inside a cargo plane followed by an image of a soldier staring at a helmet propped up by a machine gun that is stuck in the ground. It also shows pictures of New Orleans following Hurricane Katrina, and successive photos of Bush, a mug shot of former House Majority Leader Tom DeLay (R-Texas), Jack Abramoff and Vice President Cheney.

Republicans will continue to pressure Democrats to take down the video at a news conference today being held in the lobby of the Republican National Committee.

From The Morning Grind

House Speaker Dennis Hastert (R-Illinois) predicted Wednesday that not only will the GOP maintain control of the chamber but also add to their majority, CNN's Deirdre Walsh reports. Hastert's declaration flies in the face of what the political pundits predict will be a bad and potentially catastrophic year for Republicans that could lead to a Democratic majority in the 110th Congress.

"We're looking forward to increasing our majority next year," Hastert said. "It's the pundits that say we can't do it."

Speaking specifically about the economy and Iraq, Hastert said, "We have a good story to tell, and we're going to move forward now and tell that story."

And in order to effectively tell that story you need money and the Speaker noted he is not only asking GOP donors to contribute, but also his colleagues.

"We're about to raise enough money from our own members, and we do this on an annual basis," he said. "People are anteing up."

Democrats dismissed Hastert's prediction and suggested the tide is turning against Republicans.

"It shows that Republicans are completely out of touch with what's going on in the country," said Jennifer Crider, a spokeswoman for House Minority Leader Nancy Pelosi (D-California). "Americans have a choice between Republicans for more of the same or Democrats for a new direction."

From The Morning Grind

A close friend of British Prime Minister Tony Blair was arrested Wednesday in connection with a political fundraising scandal, CNN's Robin Oakley and Angus Walker report.

Lord Michael Levy is accused of offering political donors and lenders of Blair's Labour Party knighthoods and peerages in exchange for their financial support. Levy is the chief fundraiser for the Labour Party and often plays tennis with Blair.

"He was arrested in connection with alleged offenses under the 'Honors (Prevention of Abuses) Act 1925 and Political Parties, Elections and Referendums Act 2000,'" police said in a prepared statement.

A Levy spokesman said he "vigorously denies any wrongdoing."

Oakley and Walker note that Levy's arrest comes at a difficult time for Blair, who faces mounting pressure to quit as party leader for his unwavering support of President Bush and the U.S.-led war in Iraq.

From The Morning Grind

The White House announced this morning that Iraqi Prime Minister Nuri al-Maliki will visit Washington on July 25. The administration sees the prime minister as someone who may be able to bring together Iraq's warring factions. Al-Maliki and President Bush will discuss how to proceed in Iraq.

From The Morning Grind

The Pew Hispanic Center released a new poll this morning that is likely to receive wide media attention.

From The Morning Grind

While it is still early in the day, it will be difficult to top this quote President Bush made at a joint news conference with Chancellor Angela Merkel in Stralsund.

AP's Terry Hunt: Mr. President, were you surprised by President Putin replying to Vice President Cheney's criticism, saying that it was an "unsuccessful hunting shot?"

Bush: Did I think it was a clever response? It was pretty clever. Actually, quite humorous -- not to dis my friend, the Vice President.

From The Morning Grind

Democrats are on the verge of taking a major step towards altering the 2008 presidential nominating calendar. The DNC's Rules and Bylaws Committee meets later this month to vote on a proposal that would place a caucus between the Iowa caucuses and New Hampshire primary as well as add a primary following the Granite State's contest. At this meeting, the Rules and Bylaws panel will also propose the two states to join Iowa and New Hampshire in this much sought after position on the calendar. If approved, as expected, the recommendation will be put to the full DNC membership for a vote in August at the Democrat's summer meeting in Chicago.

Alabama, Arizona, Arkansas, Colorado, the District of Columbia, Hawaii, Michigan, Mississippi, Nevada, South Carolina and West Virginia are vying for the two early calendar slots. Nebraska, which initially asked to be considered for an early primary position, withdrew its application.

The proposal has divided Democrats. The Morning Grind today offers readers two leading, but opposing voices on the issue. The order in which these opinion columns appear was determined by a coin flip.
-- Mark Preston
CNN Political Editor

***

Iowa and New Hampshire plus two: A good recipe

By Donna Brazile

Today, while much of the world is focusing its attention on developments in North Korea, India and the Middle East, a small group of people, including reporters, are spending an inordinate amount of time discussing two small states that have traditionally held the key to the selection of the leader of the "free world."

For years, Iowa and New Hampshire have been granted the privilege of holding the "first in the nation" Democratic presidential caucus and primary election, respectively. After a slow and lengthy process, the Democratic National Committee's Rules and Bylaws Committee has voted to recommend that the party include two additional states in the pre-window period. One will hold a caucus, the other a primary.

While Iowa's and New Hampshire's respective distinction of holding the first Democratic presidential caucus and primary in the nation have been preserved and lauded, I am delighted that two additional states will play a role in winnowing out the field of Democratic presidential candidates.

The Rules and Bylaws panel will select from among such diverse states as Arizona, South Carolina, Alabama, Nevada, Arkansas, Mississippi, Michigan and the District of Columbia. Judging from the many calls, letters and emails received by my colleagues on the committee from activists and political leaders in those states, they are eager to help select the next president of the United States.

States have not only submitted plans describing ways to improve Democratic performance and turnout, some are raising large sums of money to help "promote the notion" that the voters of their state are stepping up to help make this important decision.

I don't know about the people of Iowa and New Hampshire, but I am excited by the idea of allowing other states to do what Iowa and New Hampshire have done remarkably well. Candidates are free to campaign -- if they so desire -- wherever they see fit. But they will have additional options and numerous opportunities to listen to, learn from and stand up for many more Americans.

Back home in Louisiana, we often compare politics to cooking a good Cajun or Creole meal. It's time we add more seasoning and a couple of diverse states to our recipe for early success in 2008.

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Donna Brazile, an at-large member of the DNC and a CNN political commentator, is a member of the DNC's Rules and Bylaws Committee.

***

Frontloading the calendar will lead to unintended consequences

By Kathy Sullivan

Soon, some of the Democratic Party's brightest minds will be meeting for two days in Washington. But instead of discussing strategy for the critical 2006 midterm elections, members of the Democratic National Committee's Rules and Bylaws Committee will determine the 2008 presidential nominating calendar.

This untimely distraction is the result of a movement to change the calendar that is about to create a train wreck. With 14 or so states planning to hold events on Feb. 5, 2008, the plan will cram another four states into the two weeks preceding, so that candidates will face at least 18 elections or caucuses in 21 days.

The under-funded, unknown insurgent candidate will not have the opportunity to surge, a kid will have no time to come back, and the nomination will be over before the rest of the country even knows the names of candidates.

Motivation to change the calendar is twofold: provide racial, economic and geographic diversity early in the calendar and to strip what some see as too much influence by Iowa and New Hampshire. The proposed calendar is so compressed, however, that voters from diverse backgrounds and regions will not have the time or chance to reflect and make considered judgments. The candidates will race across the country, doing TV ad buys and campaign fly-bys.

At one time, primaries in California, West Virginia, Florida, Wisconsin, and other states mattered greatly - and mattered more than Iowa and New Hampshire. Frontloading changed that and caused voters around the country to become frustrated with their lack of input. It is time for both the DNC and the Republican National Committee to address the real problem. It is a hard problem, as so many states are rushing to the front of the calendar. But by working together and recognizing the importance of providing a real opportunity for all voters across the country to have a say in the nominating process both parties and our country will be better served.

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Kathy Sullivan is the chairman of the New Hampshire Democratic Party and a member of the DNC's Rules and Bylaws Committee

"DISTRACTED" WH PLAYS "MINOR ROLE" AS ISRAEL GOES TO WAR: President George W. Bush and U.S. diplomats, distracted by threats from North Korea to Iraq, are playing a minor role as an escalating confrontation between Israelis and Arabs risks wider Middle East violence. David Welch, U.S. assistant secretary of state for Near Eastern affairs, and Elliott Abrams, deputy assistant to the president, only arrived in the region yesterday, 17 days after the abduction of an Israeli soldier in the Gaza Strip set off the crisis. Bush hasn't spoken to any Middle Eastern leaders in the past couple of weeks, according to National Security Council spokesman Frederick Jones. Bloomberg: Bush Middle East Role Limited as Israel, Arabs Fight

WH WANTS CONGRESS TO LIMIT DETAINEE RIGHTS...: A day after saying that terror suspects had a right to protections under the Geneva Conventions, the Bush administration said Wednesday that it wanted Congress to pass legislation that would limit the rights granted to detainees. The earlier statement had been widely interpreted as a retreat, but testimony to Congress by administration lawyers on Wednesday made clear that the picture was more complicated. New York Times: Administration Prods Congress to Curb the Rights of Detainees

...BUT CAN THE HOUSE AND SENATE FIND COMMON GROUND? House Republicans signaled a coming clash with the Senate over the future of military tribunals yesterday when Armed Service Committee members indicated they were inclined to give the Bush administration largely what it wants in the conduct of terrorism trials. The tone at the first House hearing since the Supreme Court tossed out President Bush's tribunals last month was markedly different from Tuesday's Senate hearing, where lawmakers from both parties said they wanted to make significant changes to the White House's plans. Washington Post: Battle Looms In Congress Over Military Tribunals

GANG GET-TOGETHER: The bipartisan "Gang of 14" will meet for the first time in two months this afternoon in a gathering intended to determine group members' attitudes on a series of outstanding judicial nominations, according to sources. The seven Democratic and seven Republican Senators will meet at 1:15 p.m. in the office of Sen. Mark Pryor (D-Ark.). While organizers said there was no firm agenda outlined for the meeting, Senators and aides speculated the session largely would focus on the pending nomination of William Haynes to the 4th U.S. Circuit Court of Appeals. Pryor said there was no specific agenda, but that he anticipated a general discussion among the 14 Senators who last year brokered a deal to avert a procedural showdown that could have put an end to judicial filibusters. Roll Call: 'Gang' Returns As Fight Looms

THE FIGHT FOR $7.15/HR: Democrats, seeking to energize voters over economic issues in much the way that Republicans have rallied conservatives with efforts to ban same-sex marriage, have begun a broad campaign to raise the minimum wage and focus attention on income inequality. The Democratic argument is straightforward: it has been more than eight years since Congress last raised the minimum wage, to $5.15 an hour, and inflation has reduced its real value to the lowest level in more than 20 years. At the same time, Democrats say, executive pay has risen to ever-higher levels and Congress has regularly approved pay raises for itself. New York Times: Democrats Link Fortunes to Rise in Minimum Wage

PAPER: SENATE BILL WOULD PAY GUEST WORKERS MORE THAN AMERICANS: The Senate immigration bill would require that foreign construction laborers here under the guest-worker program be paid well above the minimum wage, even as American workers at the same work site could earn less. The bill "would guarantee wages to some foreign workers that could be higher than those paid to American workers at the same work site," says a policy paper released this week by the Senate's Republican Policy Committee. "This is unfair to U.S. workers, inappropriate, and unnecessary." The 11-page, harshly critical analysis of the Senate immigration bill on this one point reveals how torn Senate Republicans are over the larger issue of immigration. Washington Times: Senate bill seeks more pay for aliens

ALABAMA-COUSHATTA TRIBE SUES REED, ABRAMOFF: An East Texas tribe sued disgraced Washington lobbyist Jack Abramoff and former Christian Coalition leader Ralph Reed on Wednesday, claiming they illegally lobbied Texas officials to shutter the tribe's casino operations. The federal lawsuit, filed in Austin on behalf of the Alabama-Coushatta tribe of Texas, tells a tale of deceit and double-dealing. The tribe says the Washington figures conspired in 2001 to hide millions of dollars spent by a competing Louisiana tribe against a bill legalizing casino gambling for Texas tribes, including the Alabama-Coushattas. Austin American-Statesman: Texas tribe sues Abramoff, former Christian Coalition leader

THERE'S SOMETHING ABOUT HILLARY: Anna Shelley, a mother of three from Utah, says she is ready for a female president, and she is sure that Sen. Hillary Rodham Clinton has what it takes. But Shelley, a Democrat, is not sure she could ever pull a lever for Clinton. Her reservations are vague but unmistakable: Something about Clinton leaves her cold... "I think she's a little hard," she said. "She may be strong, but at the same time, if you're driven sometimes you're perceived as not having sympathy. And perception is reality for most of us." It is a reality that Clinton's advisers are confronting as they seek to position the former first lady for a possible 2008 presidential run.... Never has a politician stepped onto a presidential stage before an audience of voters who already have so many strong and personal opinions about her, or amid arguments that revolve around the intangibles of personality and the ways people react to it. Washington Post: Beyond the Poll Numbers, Voter Doubts About Clinton

CRISIS IN BEANTOWN AND MITT GOES ON VACATION: Gov. Mitt Romney rushed back to his bucolic New Hampshire vacation home yesterday as fast as he had hurried here Tuesday to demand the head of the Big Dig chieftain Matt Amorello. Meanwhile, state and federal officials hunkered down to do the hard work of finding out why a tunnel ceiling collapsed and killed a Jamaica Plain woman. "Unbelievable," state Sen. Marc Pacheco said when told Romney had quickly resumed his vacation, saying he was sending the governor a formal request to suspend Big Dig manager Bechtel/Parsons Brinckerhoff from doing any more state work until all criminal investigations of the I-90 Seaport connector tunnel catastrophe are complete. "Maybe we'll have to send it by Pony Express," Pacheco added. Boston Herald: Mitt's MIA as bigs dig into tunnel tragedy

SPOKESMAN LEAVES HARRIS CAMPAIGN: U.S. Rep. Katherine Harris' troubled campaign for U.S. Senate lost yet another top-level staffer Wednesday: Her office issued a statement confirming the departure of spokesman Chris Ingram. Neither Ingram nor other staffers could be reached late Wednesday to explain why. Harris, said by many to be feeling the pressure as her poll numbers sink while Republican leaders turn their backs on her, has weathered the departure of a number of high level staff members -- including Ed Rollins, a Reagan Revolution architect, former campaign manager Jim Dornan and seasoned Florida political consultant Adam Goodman. Miami Herald: Another staff member leaves Harris campaign

SCHLESINGER "NUDGED" TO QUIT OVER "WAMPUM CARD": Gov. M. Jodi Rell and GOP State Chairman George Gallo publicly urged fellow Republican Alan Schlesinger to reconsider his candidacy for U.S. Senate after learning Wednesday that he gambled at the Foxwoods Resorts Casino under an assumed name while an elected official in the 1990s. Schlesinger said Rell and Gallo were overreacting to an innocent act: giving a fake name to obtain a Foxwoods "wampum card" that rewards casino patrons with meals, rooms and merchandise based on how much they gamble. "I am not going to let this bother me," said Schlesinger, who described himself as a recreational blackjack player. "I am going to continue in the race." Hartford Courant: Senate Hopeful Nudged To Quit

VT DEMS MAKING WAY FOR AN INDEPENDENT? Vermont's Democratic Party is maneuvering to keep the Democratic candidates for the state's open US Senate seat off the November ballot, as party leaders seek to clear the way for independent Representative Bernard Sanders in his bid for the Senate. State Democratic leaders are spearheading efforts to gather signatures to put Sanders on the ballot as a Democrat, even though Sanders has repeatedly said he would turn down the party's nomination if he wins the primary. At least three other candidates have announced their intention to run for the Democratic nomination in the Sept. 12 primary, but party leaders prefer Sanders to any of them. Ian Carleton, the chairman of the Vermont Democratic Party, said the party's efforts to secure the nomination for Sanders is a concession to political reality: Polls indicate that Sanders is so popular in Vermont that no Democrat has a real chance of beating him. Boston Globe: Party shuns Vermont Democrats in race

"GRANDMA" SUES TX SEC OF STATE: Independent gubernatorial candidate Carole Keeton Strayhorn sued the Texas secretary of state Wednesday in her attempt to have the nickname "Grandma" listed with her name on the Nov. 7 ballot. Strayhorn had promised to sue earlier this week after Secretary of State Roger Williams ruled that "Grandma" is a slogan, not a nickname permitted on the ballot. At the same time, Williams allowed independent candidate Kinky Friedman to be listed as Richard "Kinky" Friedman on the ballot. Friedman has used the nickname for years. Strayhorn's suit says that the Texas Election Code guarantees her the right to use her nickname. Her attorney, Roy Minton, has said that Strayhorn began using the name when she became a grandmother in 1994. AP via Yahoo! News: Texas gov. candidate sues over nickname

NEW YORKERS NOT THRILLED ABOUT A BLOOMY '08 BID: City voters don't believe Mayor Bloomberg will launch a bid for the White House - and even if he did, they wouldn't rush to support him, a new poll found. Amid all the buzz about Hizzoner contemplating a run for President, 62% of registered city voters say it is "not too likely" or "not likely at all," according to a Quinnipiac University Polling Institute poll released yesterday. Bloomberg, 64, has denied any interest in a White House bid, but if he changed his mind, 48% said they "probably" or "definitely" won't vote for him, and 40% say they "definitely" or "probably" would vote for him. New York Daily News: N.Y.ers aren't bustin' to see Mike as Prez

HARSH WORDS FOR SIS: The brother of GOP Senate candidate Kathleen Troia "KT" McFarland accused his sister yesterday of being "evil" and he vehemently denied her charges that their father was abusive. Tom Troia, of Janesville, Wis., accused his sister of conjuring up the allegations in a spiteful letter she gave to her parents in 1992 in hopes of killing her father with a heart attack while also rubbing in another brother's face that he was dying of AIDS. "It's a complete fabrication," Troia, 52, told The Post of his sister's charges. "If I had one word to describe my sister, it would be 'evil.'" Asked why his sister, who is in the middle of a Republican primary battle with former Yonkers Mayor John Spencer to take on Sen. Hillary Rodham Clinton, would make up horrendous charges about their father, Troia said, "Evil needs no reason." New York Post: KT Brother: Evil Sis Lied on 'Dad Abuse'

On "The Situation Room" today, we asked viewers the following three questions, and here are some of our favorite responses that we didn't get to read on air:

What does it mean that the Army is ending its contract with Halliburton?

It means that an election is coming closer and the money-grab needs to come to an end... for now.
Mike, Wethersfield, Connecticut

It means that a colossal scandal involving Halliburton is about to be uncovered!
Lee, Lithonia, Georgia

The cost of the war will be cut in half.
Don, Bradenton, Florida

It means that the Army wants to get as far away as possible from that cesspool before the hearings get under way following the mid-term elections!
Ken, Portland, Oregon

Now that Karl Rove has been identified as a source in the CIA leak case, what should happen to him?

Jeez Jack, I'm surprised you have to ask. He should be awarded the Presidential Medal of Freedom of course. Well, that, and a no bid contract to supply the Army. I hear there's one open.
Steven, Oklahoma City, Oklahoma

I think the answer is simple. Bush said he would get rid of anyone associated with leaks in his administration, so, Karl Rove should be gone as soon as possible. The friendship must end for the sake of national security.
Charles, Winston-Salem, North Carolina

Hold Bush to his word when he said anyone that leaked information on his staff would be fired.
Bill, Louisville, Tennessee

What does it mean when a petting zoo and flea market are included on a government list of terror targets?

It can only mean that this administration is a three-ring circus.
Donald, Arkansas

Dear Jack, If these locations aren't in the middle of New York, then we are really in big trouble.
Kara, Smithtown, New York

What does it mean? It means our only hope is that the terrorists attacking us are as moronic as the cretins defending us.
Pete, Santa Monica, California

Petting Zoos and Flea Markets...it means that the people running your government have the brains of a flea and they all belong in a zoo.
Marg, British Columbia

Critical assets?
How does the Department of Homeland Security dole out its anti-terrorism dollars? According to a new report (PDF) from the DHS Inspector General, the Kangaroo Conservation Center, an Illinois apple and pork festival and the Tennessee Mule Day parade are among the thousands of locations and events cited as possible terror targets. We have details on how they made the list.

Reaching across the aisle
Several top-flight political advisers are coming together to launch a new Web site hoping to move American voters away from the angry partisan fringes. Styled in the online equivalent of a national town hall meeting, HotSoup will be a digital non-partisan forum where millions can discuss and dissect hot political topics. How is it being received online?

MySpace #1?
A new report says MySpace.com has leapt to the number one ranked site on the web. But is the social networking site really more popular than Yahoo and Google? We'll investigate.

New text message: Evacuate now
The Department of Homeland Security is using new technology to update a national alert system first created during the Cold War. A government sponsored text message may soon be your first warning in the event of an attack or national emergency.

Watch "The Situation Room" at 4:00 PM, 5:00 PM, and 7:00 PM, ET for these stories and more from our Internet reporters.

WASHINGTON (CNN) -- A report released Tuesday by the Department of Homeland Security's inspector general says the department's database of potential terror targets is too flawed to be used as a guide for the allocation of federal security funding.

Outcries erupted in New York and Washington over the department's decision to cut security funding for the two cities by 40 percent. The original DHS assessment did not identify the Brooklyn Bridge or Statue of Liberty as terrorist targets -- but did cite a Sears Auto Center, a cookie shop and the Apple and Pork Festival held each September in Clinton, Illinois. (Full story)

Calling many of the target listings "quirky" and "out-of-place," Inspector General Richard Skinner said the National Asset Database, which is an inventory of "critical infrastructure and key resources" in the country, is "not yet comprehensive enough to support the management and resource allocation decision-making envisioned by the National Infrastructure Protection Plan."

The database of 77,069 targets, or "assets," names specific sites such as the Kangaroo Conservation Center in Dawsonville, Georgia, as well as non-specific entities, including one "Beach at End of (a) Street," as being potentially vulnerable.

A DHS representative told CNN the purpose of the list has been misinterpreted.

"The major point to get across is that this database is not a list of critical infrastructure across the United States," said DHS spokesman Jarrod Agen. "The states provided us with a list of assets in their area -- assets the states believe are critical."

The report cited several examples of questionable assets, as well as entire categories it described as flawed, including racetracks, with 224 listed; retail stores, 234; and libraries, 130.

ARLINGTON, Virginia (CNN) -- The Federal Emergency Management Agency conducted a test Wednesday of crisis alert technology that could one day allow urgent messages to be sent to cell phones and computers nationwide.

A FEMA test message relayed through a public television satellite appeared on select cell phones, with text messages telling people to tune in to televisions and radios. The alert also went out to computers, with information appearing in the form of a red scrolling banner and a new window with a video announcement from a Department of Homeland Security official. (Watch a FEMA demonstration of the new alert system -- 2:03)

"It's time for us to move this whole system into the 21st century," said FEMA Director David Paulison. "It's going to be quicker, more efficient and more reliable information that will not only reach our general public, but also our first responders and our government organizations across the country."

The general public shouldn't expect emergency text messages from the government any time soon, however. Though the technology has made it through a one-year pilot phase, putting it into effect will require Congress to pass new legislation, and for a maze of Federal Communications Commission laws to be debated and negotiated by private-sector media distributors.

"The barriers are not really technical," said John Lawson, head of the Association of Public Television Stations. "It's a question of funding, it's a question of private-sector partners figuring out how to do it and agreeing to do it."

The federal government has spent $1 million so far on developing the new system. FEMA expects to spend $4.5 million more to complete its set-up, and $1 million a year to maintain it thereafter.

For the time being, FEMA's sights are set on being able to use the new Digital Emergency Alert System to communicate with emergency operation centers in hurricane-vulnerable Gulf and Atlantic coast states by the end of this year. By the end of 2007, FEMA says, it plans to have the system deployed in all 50 states.

With weaknesses exposed by such events as the September 11, 2001, attacks and Hurricane Katrina, the existing system has been criticized as an outdated Cold War relic. On June 26, President Bush issued an executive order requiring DHS to upgrade the nation's emergency alert system, to "ensure that under all conditions the president can communicate with the American people," including in cases of terrorist attack, war, natural disaster or other public danger."

From The Morning Grind

Sen. Evan Bayh (D-Indiana) sent an e-mail yesterday to his political supporters telling them about his recent visit to Iowa to campaign and help raise money for no fewer than 10 Hawkeye State Democrats.

Bayh made no mention of his own future political plans. He didn't have to. It is a given the Indiana Democrat is likely to run for president.

Bayh is one of half a dozen or more Democrats beating a path to this Midwestern state to solicit support for a 2008 presidential bid. As the lead off for the presidential nominating process, a win in Iowa is critical if not altogether needed, to win the Democratic nomination. Former Virginia Gov. Mark Warner (D) is in the state today. Sen. John Kerry (D-Massachusetts) announced this morning he will visit Iowa in late July. Sen. Russ Feingold (D-Wisconsin) spends time in the state this weekend, while former Sen. John Edwards (D-North Carolina) just wrapped up a visit. And Gov. Tom Vilsack (D), well he doesn't have to visit the state because he lives there.

Visits to Iowa by these potential presidential candidates are no longer news. Rather it is an afterthought. The next big splash will come when Sen. Hillary Rodham Clinton (D-Iowa) decides to visit the state. So far, the "Goliath" of the Democratic presidential primary contest is steering clear of Iowa, focusing instead on her Senate re-election. But when she takes her first step into the state, the media wave will be gigantic. Dr. Selden Spencer, a Democratic challenging Rep. Tom Latham (R-Iowa) in November, told CNN's Sasha Johnson that people are talking about Clinton's first visit.

"That does come up every now and then," he said. "It's going to be interesting, because I expect she'll come by somewhere along the way."

But this weekend, Spencer, while not endorsing Bayh, offered words of praise for the Indiana Democrat. "Obviously, he would be a very special candidate and in the Midwest he would resonate very well," he said.

And for Bayh, highlighting his Midwestern roots and success of being re-elected several times in a 'red state' appears to be major themes we will hear from the Indiana Democrat in the coming months.

"If we are going to set a better course, you have to win," Bayh said in a very candid interview with CNN's Candy Crowley and Johnson during his Iowa visit. "So it might be better to have someone who's proven they can win in a red state, not just once or twice but hopefully several times."

Bayh didn't mention Warner by name, nor did he single out any of his other potential rivals. But clearly he is trying to distinguish himself from a very crowded pack. Warner is heralded for winning one term in the red state of Virginia and helping to get Lt. Gov. Tim Kaine (D) elected. Bayh must also differentiate himself from the handful of senators who are also eyeing bids.

"It would be helpful to have a nominee who has a track record as a governor with actually getting things done," he said. "Not just giving speeches and talking about things, but actually doing them."

Then there is the early frontrunner: Clinton. "Is it a little bit of a David versus Goliath situation?" Bayh said. "Yeah probably. But as I recall, David did OK."

Bayh said for the Democratic Party to be successful it must convince Americans that Democrats will help keep them safe.

"As much as we want to have a conversation about health care and education and jobs and the environment and all those other important things, we're not going to get to have that conversation until people first trust us with their lives," he said.

When will Bayh be back in Iowa? "Soon," he told his political supporters yesterday. "And I'll be sure to e-mail you before I head out."

Round II of immigration hearings

The debate over how to reform the nation's immigration laws rages on and Congress remains ground zero for the issue. House Republican leaders, who oppose President Bush's proposal to allow many illegal immigrants to earn citizenship, will announce a new round of hearings later this morning. Meanwhile, Republican and Democratic senators who support Bush's immigration reform plan will attend an "Interfaith Conference" on the issue. And Commerce Secretary Carlos Gutierrez was scheduled to begin testifying before the Senate Judiciary Committee at 9:30 a.m. ET in a hearing titled "Examining the Need for Comprehensive Immigration Reform, Part II."

While the Senate has proven to be Bush's biggest obstacle as he tries to advance his legislative agenda through Congress, on this issue it is his otherwise reliable, likeminded, conservative House leadership that is blocking it. House Republicans argue that Bush's proposal is akin to giving amnesty to the illegal immigrants who are now living and working in the country.

A well placed Republican House source provided the Grind with an early look at what the next round of House hearings will address and when they will happen:

July 18th. Do the Reid-Kennedy bill's amnesty provisions repeat the mistakes of the Immigration Reform and Control Act of 1986? House Judiciary Committee

July 19th. What is the impact of the Reid-Kennedy bill on American workers and their workplaces? House Education and the Workforce Committee

July 20th. How does the Reid-Kennedy bill compare to the House Border Security bill when it comes to enhancing border infrastructure? House Homeland Security Committee

July 26th. What is the role of English in American education and society, and does the Reid-Kennedy bill undermine, rather than encourage, this role? House Education and the Workforce Committee

July 27th. Will the Reid-Kennedy bill's amnesty provisions overwhelm the already overburdened U. S. Citizenship and Immigration Services? Will 10-20 million new applicants for citizenship make it easier for criminals and terrorists to evade background checks? House Judiciary Committee

July 27th. Does the Reid-Kennedy bill make it more difficult for law enforcement to expedite the removal of illegal aliens from the United States? House Homeland Security Committee

July 27th. To what degree is illegal immigration an issue for countries in the Western Hemisphere, and does the Reid-Kennedy bill undercut American diplomatic efforts aimed at curbing illegal immigration? House International Relations Committee

From The Morning Grind

Democrats are expected to take the Senate floor today to begin the "countdown" to the August recess in an effort to try and pressure Senate Majority Leader Bill Frist (R-Tennessee) to focus the chamber on issues ranging from "college affordability" to a "real debate in Iraq," a Democratic source tells the Grind. Senate Minority Leader Harry Reid (D-Nevada) and Senate Minority Whip Richard Durbin (D-Illinois) will lead the effort and the leadership is urging other Democrats to join them, according to a copy of an e-mail sent to all Democratic press secretaries.

"Our hope is that every day for the rest of this work period Democrats will take to the floor to amplify this message," the leadership states in the e-mail obtained by the Grind. The other issues Democrats will be pressing for action includes stem cells, gas prices and the voting rights act.

Frist announced this morning that the Senate would turn its attention to stem cell legislation on Monday and finish voting on three different stem cell bills by Tuesday.

"There's tremendous promise in stem cell research, and I've worked long and hard with my colleagues to bring this serious ethical issue to the floor in a way that encourages thoughtful discussion and deliberation," he said in a statement released by his office.

For your vacation planning purposes, the Senate is scheduled to be in recess from August 7 through September 4, while the House is expected to be in recess from July 31 through September 4.

From The Morning Grind

Move over Orrin, there is a new singer in town. Sen. Ben Nelson (D-Nebraska) is the latest member of the "world's most exclusive club" to show off his pipes with a little diddy about what else? Growing up in a "Western Town in Nebraska," of course. Click here to hear the song on Nebraska's KFAB website.

Nelson sings the song in the yet-to-be-released movie "Out of Omaha" that stars Dave Foley, Lea Thompson, Patricia Richards and Ethan Phillips.

"I'm hoping this will really ignite my career," Nelson said yesterday. "I'm hoping I can get a Metamucil commercial or something."

Nelson said that he is "following in the footsteps" of Sen. Orrin Hatch (R-Utah) "who sang in the movie Ocean's 12." Hatch is well known throughout the nation's capital for his "second career" of songwriting and singing.

"Neither one of us is an American Idol quality, but we do enjoy singing," Nelson said. But Nelson did note that this is not his first brush with Hollywood fame. As governor, Nelson appeared in an episode of "Candid Camera."

Still, all of his acting and singing experience apparently did not impress actor-turned-senator-turned actor Fred Thompson (R-Tennessee), who appears in NBC's crime drama "Law & Order."

"I had dinner with him and (Sen.) John McCain (R-Arizona) and (Sen.) Joseph Lieberman (D-Connecticut) a couple of months ago," Nelson said. "I hinted as much as anyone could ever hint about a cameo on one of his episodes and he ignored every effort on my part to secure one of those. I just thought it would be professional courtesy with my background."

From The Morning Grind

What does a dash of Ron Fournier, a sprinkle of Mark McKinnon, a teaspoon of Joe Lockhart, a tablespoon of Matthew Dowd, a cup of Carter Eskew, a quarter stick of Allie Savarino, a drop of Michael Feldman, a smidgen of John deTar, a bit of Chip Smith and a pinch of Bart Barden all mixed get you?

Apparently a bowl of steaming hot soup.

From The Morning Grind

On this day in 1984, Democratic presidential nominee Walter Mondale chose Rep. Geraldine Ferraro (D-New York) to be his running mate.

NOVAK NAMES ROVE, CIA'S HARLOW AS SOURCES IN COLUMN: "Special Prosecutor Patrick Fitzgerald has informed my attorneys that, after 2-1/2 years, his investigation of the CIA leak case concerning matters directly relating to me has been concluded. That frees me to reveal my role in the federal inquiry that, at the request of Fitzgerald, I have kept secret. I have cooperated in the investigation while trying to protect journalistic privileges under the First Amendment and shield sources who have not revealed themselves. I have been subpoenaed by and testified to a federal grand jury. Published reports that I took the Fifth Amendment, made a plea bargain with the prosecutors or was a prosecutorial target were all untrue." Chicago Sun-Times: Novak: My role in Plame leak probe

ADMIN WILL ADHERE TO GENEVA CONVENTIONS: The Bush administration has agreed to apply the Geneva Conventions to all terrorism suspects in U.S. custody, bowing to the Supreme Court's recent rejection of policies that have imprisoned hundreds for years without trials. The Pentagon announced yesterday that it has called on military officials to adhere to the conventions in dealing with al-Qaeda detainees. The administration also has decided that even prisoners held by the CIA in secret prisons abroad must be treated in accordance with international standards, an interpretation that would prohibit prisoners from being subjected to harsh treatment in interrogations, several U.S. officials said. Washington Post: U.S. Shifts Policy on Geneva Conventions

BUSH TAKES "VICTORY LAP" IN ANNOUNCING NEW DEFICIT NUMBER: This year's federal deficit is now projected to be $296 billion, President Bush announced yesterday, $127 billion less than predicted just six months ago and leaving the administration a year ahead of its pledge to cut the deficit in half by 2009. "This economy's growing, federal taxes are rising, and we're cutting the federal deficit faster than we expected," Mr. Bush said, turning the administration's annual midsession budget review report to Congress into a victory lap for his tax-cutting policies during his first term. But Mr. Bush said tackling the deficit in the long run will require action on Social Security, and he challenged Congress to stop posturing on the issue and instead to have a "sense of obligation" to fix it. Washington Times: '06 projected federal deficit falls to $296 billion

PUTIN CALLS CHENEY'S CRITICISM "AN UNSUCCESSFUL HUNTING SHOT": President Vladimir Putin lashed out at Vice President Dick Cheney ahead of this weekend's G-8 summit, calling his recent criticisms of Russia "an unsuccessful hunting shot," according to a television interview being broadcast Wednesday. The remark, from an interview with NBC, referred to the shotgun blast by Cheney on a hunting trip that accidentally wounded a companion. Cheney, in a May speech in the ex-Soviet republic of Lithuania, accused Russia of cracking down on religious and political rights and of using its energy reserves as "tools of intimidation or blackmail." AP via Yahoo! News: Putin rips Cheney's verbal 'hunting shot'

"WHAT ELSE IS IT THAT WE DON'T KNOW?" The Republican chairwoman of a House subcommittee said Tuesday that the Bush administration had failed to inform Congress adequately that it was sifting through a vast international banking network in an effort to track terrorists' finances. The lawmaker, Representative Sue Kelly of New York, chairwoman of the House Financial Services subcommittee on oversight, was joined by members of both parties in accusing the administration of being too secretive and unaccountable to Congress about the program. Its existence was disclosed last month by The New York Times and other newspapers. "Many people in Congress who should have been briefed by the administration were not," Ms. Kelly said. "What else is it that we don't know?" New York Times: Republicans Criticize Lack of Briefings on Bank Data

WILL THE "DO-NOTHING" LABEL HURT GOP IN THE MID-TERMS? Republicans head into the final stretch of what Democrats are calling a "do-nothing Congress" that has achieved none of the key items of President George W. Bush's agenda. Just a year and a half after Republicans increased their majorities in the 2004 elections, Bush's Social Security overhaul plan has been shelved, his vow to restructure the tax code postponed indefinitely and his calls for reshaping medical malpractice long-forgotten. The administration's current major initiative, an overhaul of the nation's immigration laws, is hanging by a thread on Capitol Hill. Republicans may pay a price for their inaction in this November's election, said David Mayhew, a congressional scholar at Yale University in New Haven, Connecticut. "If they get into September and they still have not done anything on immigration, then they are heavily subject to the charge that they can't tie their shoes," he said. Bloomberg: 'Do-Nothing' Label May Haunt Republicans in Congressional Races

HOUSE APPROVES "CRACKDOWN" ON ONLINE GAMBLING: With bipartisan support and the Jack Abramoff lobbying scandal haunting Republican efforts to pass antigambling legislation, the House approved a crackdown on Internet wagering that would ban not only sports bets but also online poker and other games that have become increasingly popular. Voting 317 to 93, the House approved a bill that would make it illegal for financial institutions or intermediaries to process payments to offshore casinos through bettors' electronic funds, checks, debits and other e-wallet transactions. In addition, the bill updates the Wire Act of 1961, which forbade the transmission of betting over telephone lines, to specifically outlaw online gambling through any communication network. New York Times: House Backs Crackdown on Gambling on Internet

PELOSI WILL TAKE ATTENDANCE: With attendance typically struggling to crack the 50-Member mark, House Minority Leader Nancy Pelosi (Calif.) is cracking the whip, demanding that her fellow Democrats attend three "crucial" Caucus meetings between now and the August recess - an order supplemented by a fellow leader's hint that failure to cooperate could be detrimental to Members' futures. In a "Dear Colleague" letter sent early Tuesday afternoon, Pelosi told Members that attendance will be taken at the weekly hour-long sessions this morning and each of the next two Wednesdays, with Democrats using the sessions to discuss their "New Direction" agenda. "These crucial meetings will begin at 9:00 a.m. and end promptly at 10:00 a.m.," Pelosi wrote. "The meetings are mandatory and I have asked [Caucus Chairman James Clyburn (S.C.)] to take attendance." Roll Call: Pelosi Planning to Take Names

INDIANA HAS THE MOST TERRORIST TARGETS: It reads like a tally of terrorist targets that a child might have written: Old MacDonald's Petting Zoo, the Amish Country Popcorn factory, the Mule Day Parade, the Sweetwater Flea Market and an unspecified "Beach at End of a Street." But the inspector general of the Department of Homeland Security, in a report released Tuesday, found that the list was not child's play: all these "unusual or out-of-place" sites "whose criticality is not readily apparent" are inexplicably included in the federal antiterrorism database. The National Asset Database, as it is known, is so flawed, the inspector general found, that as of January, Indiana, with 8,591 potential terrorist targets, had 50 percent more listed sites than New York (5,687) and more than twice as many as California (3,212), ranking the state the most target-rich place in the nation. New York Times: U.S. Terror Targets: Petting Zoo and Flea Market?

ROVE CHEERED, JEERED AT LA RAZA: White House political strategist Karl Rove touted "shared values" of faith and family and reiterated President Bush's support of broad immigration reform in a Los Angeles address Tuesday to one of the nation's largest Latino civil rights organizations. In a lunchtime talk at the National Council of La Raza's annual conference, the Republican advisor outlined Bush's plan for stronger border security, workplace enforcement, a guest worker program and earned legalization for undocumented immigrants. "He understands immigration is a positive force in this country... vital to keep this country going," Rove said, prompting applause from the crowd of a few thousand. But he drew scattered boos when he highlighted Bush's recent approval of $1.9 billion in funding for more border security, including deployment of National Guard troops, and was disrupted twice by hecklers who unfurled antiwar and anti-Bush banners. Los Angeles Times: Rove Tells of 'Shared Values' With Latinos

LOCKHART, DOWD, McKINNON TO LAUNCH WEBSITE: A bipartisan group of prominent political strategists on Tuesday announced an Internet information venture designed to interact with America's opinion leaders and serve as an antidote to the right-left clash that typifies political discourse on the Web. The site, called Hotsoup.com, will debut in October and will be edited by Ron Fournier, former chief political writer for The Associated Press. Hotsoup is the brainchild of some of the best-known practitioners of partisan politics in Washington, including Matthew Dowd, chief strategist for the Bush-Cheney campaign in 2004, and Joe Lockhart, former White House press secretary under President Clinton and a senior adviser to Democratic Sen. John Kerry's 2004 presidential campaign. AP via Yahoo! News: Political strategists to launch Web site

ARMY SEVERS CONTRACT WITH HALLIBURTON: The Army is discontinuing a controversial multibillion-dollar deal with oil services giant Halliburton Co. to provide logistical support to U.S. troops worldwide, a decision that could cut deeply into the firm's dominance of government contracting in Iraq. The choice comes after several years of attacks from critics who saw the contract as a symbol of politically connected corporations profiteering on the war. Under the deal, Halliburton had exclusive rights to provide the military with a wide range of work that included keeping soldiers around the world fed, sheltered and in communication with friends and family back home. Government audits turned up more than $1 billion in questionable costs. Whistle-blowers told how the company charged $45 per case of soda, double-billed on meals and allowed troops to bathe in contaminated water. Washington Post: Army to End Expansive, Exclusive Halliburton Deal

MARK WARNER LOOKING GENEROUS: Former Virginia Gov. Mark Warner (D) has ramped up his fundraising for congressional Democratic incumbents and challengers, signaling a national organizing strategy to position the centrist Southerner for a White House bid in 2008... Since Warner began raising money after the 2005 November election, Forward Together has raked in $8.2 million and contributed $860,500 to 108 candidates and political committees. He has hired several top Democratic political consultants, including longtime Democratic operative Monica Dixon, pollste