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The overall dynamic of stimulus negotiations between the two chambers of Congress, which Democrats are aiming to finish by the end of the week, involves senators pressing House Speaker Nancy Pelosi (D-CA) to accept the $100 billion or so in cuts that were insisted upon by three GOP centrists.

But Pelosi's side of the Capitol isn't going totally unheard by the Senate. Democrats are growing confident that the final stimulus package will include some, if not all, of the $16 billion in school construction aid that was sliced by centrist senators last week.

"We feel that the wind is at our back on that one," one Democratic source told me. And there's good reason to think so -- President Obama made a strong case for preserving the schools money during his press conference last night. Here's how Obama put it:

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Could the Feds be closing in on Jack Murtha?

Late last month, federal agents raided the offices of a Pennsylvania defense contractor with close ties to the longtime Democratic congressman.

And now, ABC News has reported that, back in November, the FBI raided the Virginia headquarters of a lobbying firm founded by a former Murtha aide.

The firm, known as the PMA Group, specializes in winning earmarks for its clients. ABC reports that last year, "it brought in $13.8 million in revenue representing dozens of defense companies and contractors, many of which have donated heavily to Murtha." Murtha has helped the firm win millions in earmarks, according to ABC. And much of PMA's business comes from small defense contractors based in Murtha's district.

The former Murtha aide who founded the firm, Paul Magliochetti, has reportedly been talking to his colleagues about an arrangement that would see him leave. Reports ABC:

Asked whether these discussions were related to the raid, [a PMA spokesman] declined to comment.

And another former Murtha aide, Julie Giardina, also works at PMA.

Last month, the FBI and IRS raided the offices of Kuchera Industries and Kuchera Defense Systems. Murtha has reportedly channeled $100 million in earmarks to those companies.

A spokesman for Murtha denied that his boss had been contacted by the FBI, and said the congressman did not believe he was a target of the investigation.

Still, something tells us we haven't heard the last of this.

Late Update: The Hill reports that PMA is "disintegrating", with several of its top lobbyists telling colleages and associates they plan to leave and start a new firm.

And it looks like the issue of PMA founder and former Murtha aide Paul Magliocchetti's continuing presence at PMA is at the center of the move:
The lobbyists resigned from PMA last Friday after they were unable to strike a buyout deal with Paul Magliocchetti, the founder of PMA Group, who indicated earlier this year he wanted to retire.

The new group is called Flagship Government Relations and is being billed as a business development and lobbying firm, The Hill has learned.

The paper adds:
Among those who are starting the new consultancy are Kaylene Green, a former Senate Armed Services Committee staffer and congressional Navy liaison; Sean Fogarty, a former Senate Navy liaison; Rich Efford, a longtime appropriations staffer who worked for former Rep. Ernest Istook (R-Okla.); and Dan Cunningham, who served as the director for the Army's congressional liaison team and has a close relationship with Murtha, according to multiple K Street sources.

Angering civil libertarians and others on the left Monday, lawyers for the Obama administration went along with a Bush administration policy designed to keep the details of controversial anti-terror policies secret. In a case filed by five detainees against Boeing and its subsidiaries for their involvement in extraordinary rendition flights, lawyers for the administration made the same state-secrets argument--that details of certain cases are too sensitive to national security to even be discussed in court--that was so controversial during the Bush years. Simultaneously, the administration announced that Attorney General Eric Holder has ordered a review of all claims of state secrets, "to ensure that it is being invoked only in legally appropriate situations." The controversial state secrets privilege was famously invoked by the Bush administration to fend off legal challenges to its warrantless wiretapping program. (New York Times, Associated Press)

In another piece of fallout from the Bush administration's war on terror tactics, Sen. Patrick Leahy (D-VT) has proposed a "truth panel" to investigate Bush anti-terror programs. The panel would be designed to probe misdeeds by former officials relating to issues like torture and the use of intelligence in the lead-up to the Iraq war. At his press conference last night, President Obama appeared lukewarm to the idea, saying that he would rather "get it right moving forward." (Associated Press)

Jackson, Mississippi mayor Frank Melton may have his bond revoked for trying to personally serve a subpoena to a witness in his case. The mayor has pleaded not guilty to three felony charges that he violated civil rights during an incident in which he destroyed a suspected crack house with a sledgehammer. Melton said that he was simply keeping a campaign promise to root out crime in the city. (Associated Press)

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It's time for an amusing peek at a potential 2012 Republican presidential candidate: Minnesota Governor Tim Pawlenty.

Check out what Pawlenty said to Minnesota Public Radio, firing back at a Democratic gubernatorial candidate who criticized him for traveling to the Munich Security Conference:

And when you're the commander in chief of the Minnesota National Guard, and you're going to deploy soldiers -- like we are tomorrow night at the St. Paul civic center, a thousand soldiers going off to Iran (Editor Note: Pawlenty said Iran on the air. His spokesman said he misspoke and corrected himself on the air later) and a month from now another thousand going to the middle east to fight in the war -- it helps to have an understanding of those issues, the dynamics, the security issues.

There are two things to consider here. First, Pawlenty apparently has a Palin-style belief that a governor's official role as head of the state National Guard has some importance in foreign policy. And while explaining this concept, he managed to get wrong which country his state's troops are actually being sent to.

No one doubted last night that the Senate's stimulus bill would clear the 60-vote hurdle it needed to move towards final approval today. But while cancer-stricken Sen. Ted Kennedy (D-MA) summoned the strength to cast his vote, Sen. John Cornyn (R-TX) was the only active senator who missed the boat entirely.

As Ben Smith explains, Cornyn was in New York charming a group of conservative bigwigs -- and likely donors to the Senate GOP's 2010 campaign effort, which Cornyn is leading.

Cornyn's decision to prioritize donor outreach over Senate business is a pretty stunning display of chutzpah. Here's why ...

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If Joe Lieberman decides to run for a fifth term in 2012, a new Quinnipiac poll suggests that it may be a lost cause.

The new poll tests Lieberman as an independent against Democratic Attorney General Richard Blumenthal. The numbers: Blumenthal 58%, Lieberman 30%. Yikes.

Lieberman's active campaigning against the Democratic Party last year hasn't won him too many friends back home. Democrats go for Blumenthal by 83%-9%, and independents are for Blumenthal 55%-29%. Lieberman is the de facto Republican nominee in this match, and with GOP voters he scores 67%-23% over Blumenthal.

Lieberman's job approval is also at only 45%, with 48% disapproving. Among Democrats that's a 21%-70% rating, Republicans 75%-20%, while independents give him a narrow approval of 48%-46%.

A lot can happen in four years, but right now it doesn't look like Lieberman has too many options. He can't run as a Democrat, he would still lose as a Republican, and there's no reason to believe that staying as an independent will provide much more of an opportunity.

Today: Senate Voting On Stimulus Package The Senate is set to vote today on President Obama's economic recovery package, which is assured passage after it cleared the 60-vote threshold yesterday to overcome a Republican filibuster. Next up, the bill will head to a House-Senate conference committee to iron out differences, with the White House hoping to get it fully passed in both chambers within a week's time.

Obama Promoting Stimulus In Red Area of Florida, Then Meeting Blue Dogs President Obama is holding a 12:05 p.m. ET town hall in Fort Myers, Florida, an area that voted for John McCain and where unemployment is now 10%, to promote the stimulus plan alongside Republican Governor Charlie Crist. At 5:50 p.m. ET, he will meet with members of the Blue Dog Coalition at the White House.

Biden Meeting With Freshman Senators Vice President Biden is hosting a cocktail reception this evening at the Naval Observatory, meeting with freshman Senators from both parties.

Geithner Launching Bailout v. 2.0 Today Treasury Secretary Tim Geithner is set to roll out a revamped financial bailout, focusing on increased corporate transparency of how public money is being spent. The plan will reportedly incorporate public-private partnerships to buy up trouble assets, with the goal of increasing the availability of credit to consumers and businesses.

NYT: Geithner Resisted Tougher Restrictions On Banks The New York Times reports that Tim Geithner successfully opposed calls within the Obama Administration for harder restrictions on banks receiving federal aid. Others, such as David Axelrod, had favored tougher limits on executive pay, and Geithner also turned back those who wanted to directly replace bank executives or wipe out shareholders.

Report: Friction Between Cantor And Rest Of GOP Leadership Roll Call reports that House Minority Whip Eric Cantor had a very angry private conversation with Minority Leader John Boehner, after Boehner boasted about how the entire House Republican caucus voted against the stimulus bill -- without the benefit of a big whip operation. Boehner's spokesman played down the event, saying the team is unified: "Our focus is where it should be: on helping the American people, not wasting time on inside-the-Beltway gossip."

Ohio Lt. Governor Forms Senate Committee For 2010 Ohio Lt. Governor Lee Fisher (D) has formed an exploratory committee to run for the open Senate seat of retiring GOP Senator George Voinovich. Former Congressman Rob Portman is current in on the Republican side, while other possible Democrats include Rep. Tim Ryan and Secretary of State Jennifer Brunner, in what is expected to be a close election.

Bredesen Hits Back At Health Care Critics Governor Phil Bredesen (D-TN) is firing back at health-care advocates who oppose a potential appointment for him as Secretary of Health and Human Services. Responding to criticism over his cuts in the state health care program, which removed coverage for 168,000 people, Bredesen told the Wall St. Journal: "I did what I had to do and I'd have no choice to do the same thing over again."

Well, there's a reason he's president and not Hillary Clinton or John McCain.

Barack Obama handled himself with great aplomb, using his opening statement to lay out the problem and what his answers are. And with each question--and none of the questions were total boners, so score one for the press--the president managed to show a command of the issues and an analytic mind. Wisely, he kept coming back to the point that doing nothing is not really an answer and that tax cuts alone are not enough.

Of course, the contrast with George W. Bush couldn't have been more striking. Obama was comfortable with the long answer and the long question. There was no bristling over the Biden question but a good-natured response that seemed at once to put his Number Two to stop mouthing off so much but also an explanation of how they're trying to get it right.

I thought the tone towards Republicans was probably just right. Some on the left will probably wish he was a little more Republican bashing but that's not his style and he got his jabs in without becoming overly partisan.

For liberals who thought Obama had lost his way, that he'd conceded too much in the name of bipartisanship, that he'd been outflanked by Mitch McConnell, that he'd lost all the momentum, tonight should have been reassuring, a reminder of the power of the presidency to reset the debate and also to the enduring skills of Barack Obama.

Now comes more road show--Peoria, Florida. Those events won't command the audience that tonight's press conference did. But each visit outside of Washington illustrating the plight of the economy and going over the heads of the press and politicians should help Obama guide the debate in this final week.

Beyond that, a week from today, we're likely to be on the verge of passed stimulus package and then we'll be into health care and budget season and, of course, trying to see if any of this is working. Tonight, Obama was able to mention at a couple of junctures that he inherited this mess. True enough. But he'll need to start showing results. Hopefully tomorrow's Treasury program announcement will be soothing to the roiled markets. We'll see.

The national Democrats are keeping up an offensive against Republicans over the stimulus bill, with the DCCC announcing a new round of robocalls against freshman House Republicans who voted against the bill.

It was easy, of course, to pick out the House Republicans who oppose the bill: They all do.

The robocalls are targeting seven freshman: Bill Cassidy (LA), John Fleming (LA), Brett Guthrie (KY), Leonard Lance (NJ), Christopher Lee (NY), Blaine Luetkemeyer (MO), and Tom Rooney (FL).

The text of one of the calls is available after the jump.

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