In it, but not of it. TPM DC

Senate Majority Leader Harry Reid (D-NV) has announced a final agreement on the stimulus bill, but House Democrats followed up by a subtle but unmistakable gesture of pullback -- they did not show up for a subsequent meeting with their Senate counterparts to bless the details of the deal.

Democrats are describing the sudden postponement of what was supposed to be a 3pm meeting as a routine move to brief House members on the deal. Yet that detail in itself is telling -- the senators seem to have gone public with a stimulus pact that had yet to be fully vetted by their counterparts.

Reid unveiled the stimulus agreement alongside the key members of his negotiating team - Sens. Max Baucus (D-MT), Susan Collins (R-ME), Ben Nelson (D-NE), Arlen Specter (R-PA), Olympia Snowe (R-ME), Daniel Inouye (D-HI), and (in a dismaying rebirth of influence) Joe Lieberman (I-CT).

Details on what's in and out after the $789 billion bill were not forthcoming, but we did hear several telling comments from two of the three Republicans who broke ranks to work out the deal. Reid went out of his way in praising the GOPers, describing himself as at a "lack of words" to describe his "admiration and respect for the love of our country, the patriotism, the courage of these three brave senators."

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We first reported yesterday on the looming removal of executive pay caps from the stimulus bill during final negotiations between the House and Senate.

As lawmakers were entering a closed-door meeting to sign off on the final details, I asked Sen. Olympia Snowe (R-ME) whether the executive compensation limits were indeed taken out of the measure -- and Snowe said that only one of the original three pay limit plans had survived: her bid to limit executive bonuses, co-sponsored by Sen. Ron Wyden (D-OR). Notably, their plan was the only executive pay cap that was scored as a money-maker for the Treasury.

The Franken legal team has worked today to score some more goals against the Coleman case, watering down a key point that Norm has tried to make.

Franken lawyer David Lillehaug reviewed one particular precinct in Coleman's argument that some absentee votes were double-counted, illegitimately benefiting Al Franken, as a result of damaged ballots being copied and certain copies not being labeled properly.

Dakota County elections manager Kevin Boyle confirmed what the county's position is on this: They believe there was no double-counting here. They say that the apparent additional duplicated ballots are from votes that weren't counted to begin with on Election Night, and were only tabulated during the recount.

Coleman needs the double-counting be a simple issue, one that can be easily calculated and then corrected by just subtracting excess votes from the spreadsheet. But if the local officials insist it didn't happen in one case or another, the burden of proof goes up significantly -- if we can't definitively cite which individual votes were double-counted, this suddenly starts to look like an effort to simply chop off Franken votes by fiat.

The Obama administration recently made the dismaying decision to defend the Bush-era Justice Department's use of the "state secrets" privilege in a lawsuit filed by alleged victims of extraordinary rendition. As TPM alum Greg reported yesterday, Sen. Russ Feingold (WI) was the first Democratic lawmaker to openly criticize the Obama DoJ's decision ... and now we have a second.

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I just came from an appearance by House Education and Labor Committee Chairman George Miller (D-CA) and New York City Mayor Mike Bloomberg to promote the $16 billion in school-repair money that Senate centrist negotiators had zeroed out of the stimulus bill last week.

Democrats were optimistic yesterday about keeping the school-building aid, particularly after President Obama referred to it directly in his Monday night news conference. But even as Miller was describing himself as "cautiously optimistic" that the money could be largely restored, the AP was reporting that only $6 billion of the construction money -- sorely important in urban areas such as New York -- would be added back to the stimulus.

Meanwhile, the Journal was reporting a school-building aid level double that size, at $12 billion. Such is the tricky state of the Capitol Hill media ... the prominence of leaks, oftentimes coming from people who stand to benefit by disseminating misinformation, make the truth hard to come by.

But one thing's for sure: that $16 billion for school repairs is getting diminished, at a time when local districts can use every penny of it.

During the Minnesota trial this morning, the Franken legal team has continued to hammer Norm Coleman for reversing his position on counting rejected absentee ballots -- so much so that he's asking for specific envelopes to be counted that he had successfully thrown out before.

Franken lawyer David Lillehaug has been cross-examining Dakota County elections manager Kevin Boyle, using the questioning as a vehicle to make this larger point. Lillehaug reviewed a Web page that the Coleman campaign has put up, posting the names and home counties of all the thousands of rejected absentee voters for whom they're now advocating:



The page declares: "Check below to see if you are one of the thousands of Minnesotans the Franken campaign is seeking to disenfranchise."

Lillehaug then had Boyle confirm that there are ten individuals on the Dakota County list alone whose ballots were deemed by Boyle's office to have been wrongly rejected and would have been counted -- except the Coleman campaign vetoed them, under the decision by the state Supreme Court that gave the campaigns a veto over improperly-rejected absentees.

"And according to this exhibit, these are the people that Norm Coleman is suggesting the Franken campaign is seeking to disenfranchise?" Lillehaug asked rhetorically.

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Last night, it seemed as though the Solis nomination would get put off until after recess. It looks like there will be a Solis vote today, a labor source emails me. (Of course, Congress being Congress delays are always possible.) This comes just in time as the Service Employees International Union along with Latino, environmental and other groups will drop more than 10,000 petitions at the committee's door to advocate for Solis's confirmation. Not surprisingly they have a video along with the petition that you can see here.

Have three thoughts on all of this:

1. Solis did not help herself at the confirmation. By being hesitant on the Employee Free Choice Act and otherwise slightly Palinesque, she didn't do herself or the administration a favor. People who know Solis don't have a good explanation for her performance. Usually, she's nobody's pushover but for whatever reason she seemed weak and that gave the Republicans an in.

2. Tax woes run amok. The law of Washington scandals is that they tend to spread out until they become unwieldy and absurd. Thus the Tom Daschle failure to pay taxes on limo rides became Solis's problem when it was revealed her husband had a tax lien. At a certain point, the scandal gets defined in such a large way that everyone gets caught up in it. I can think of two other instances of this. The first was when Zoe Baird's nomination to be attorney general was derailed in 1993 because of failure to pay taxes for domestic help. A second Clinton nominee, Kimba Wood, also fell for a problem with taxes on domestic help. Janet Reno, not one to use domestic help, was the third and final nominee. Eventually the collective DC zeitgeist declared the once insurmountable problem, to not be a problem as long as you paid up and a slew of nominees were confirmed.

In 1987, Douglas Ginsburg was nominated for the Supreme Court by Ronald Reagan after Robert Bork's nomination was rejected by the U.S. Senate. Ginsburg's nomination had to be withdrawn after it was revealed that he'd smoked pot as a student and as a law professor at Harvard. (Hey, it was a different time.) In the days after Ginsburg's withdrawal a slew of aspiring politicians including Al Gore, Bruce Babbitt, and others admitted their marijuana use and the once prohibitive crime of joints smoked as an adult was rendered, at most, a misdemeanor. Solis got caught up in a smaller version of that dynamic.

3. The fight over Solis is really just a precursor of the looming battle over the Employee Free Choice Act. A person with knowledge of the meeting earlier this week between AFL president John Sweeney and Vice President Joe Biden noted that they discussed EFCA and the administration's continued commitment to it. When the battle is joined--probably in late Spring--Solis's nomination will look like a skirmish.

Late Update: Solis' nomination will get a committee vote at 5pm today. The timeline for consideration by the full Senate, however, remains unclear. --e.s.

During the Bush years, Republicans displayed a particular fondness for fomenting anxiety over comparisons made between the former president's administration and the Nazi party.

But now that a Democratic president is in charge, the right-wing media has no qualms about comparing President Obama's initiatives to Nazism. Witness this morning's Washington Times editorial, which runs a photo of Hitler alongside a wildly off-base attack on the health information technology (IT) provisions in the stimulus.

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During an interview with TPMDC yesterday, a senior Democrat on the House Financial Services Committee delivered troubling news: His party could remove the Senate's strong executive pay limits from the stimulus bill in an attempt to keep the measure's costs down.

"The plan is to take out the executive compensation provisions ... and blame the Republicans for setting out the level [of $800 billion]" for the final version of the stimulus, Rep. Brad Sherman (D-CA) told me.

The Senate's limits on compensation for executives receiving government bailout money -- a welcome sign after President Obama's CEO pay caps were revealed to be riddled with loopholes -- were scored as a $10 billion money-loser by the Congressional Budget Office. Because of pressure to limit the size of the stimulus in order to retain GOP senators' support, Sherman's prediction about the executive pay caps is looking likely to come true.

But why would Democrats want to send such a bizarre signal about their commitment to reining in corporate excess? When MoveOn.org has gotten more than 300,000 signatures on a petition calling for even stronger salary caps at bailed-out companies, why would Congress want to water down its proposed pay limits?

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As House Speaker Nancy Pelosi (D-CA) jockeys with the Senate to preserve elements of her chamber's economic recovery plan, health insurance benefits are one of the major issues that need to be reconciled.

The House stimulus provides $40 billion to create a 65% government subsidy for COBRA, the health insurance program for unemployed Americans -- but the Senate centrists sliced that in half for their stimulus, cutting COBRA to $21 billion or a 50% subsidy.

The worthiness of maintaining the House's 65% COBRA subsidy is clear to anyone who's ever paid to maintain employer-sponsored health benefits after leaving a job. COBRA is prohibitively expensive for even those in two-income families, and slicing the subsidy would put the coverage out of many people's financial reach.

But how many people would get health care under the 65% subsidy? Pelosi asked the non-partisan Congressional Budget Office that question, and she got her answer last night.

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