Israeli strike hits outside UN school, 34 dead  —  GAZA CITY, Gaza - An Israeli bombardment hit outside a U.N. school where hundreds of Palestinians had sought refuge on Tuesday, and Palestinian medics said at least 34 people died — many of them children — as international outrage grew over civilian deaths.

Senate Democrats put off plans to seat Franken  —  WASHINGTON (Reuters) - Senate Majority Leader Harry Reid yielded to Republican threats and agreed on Monday not to immediately seat fellow Democrat Al Franken, whose razor-close victory in Minnesota faces legal challenges.

REALLY A MYSTERY  —  From an observer up on the Hill ...  And from a career intel professional ...  I used to do a lot of intelligence reporting.  But I haven't really done any to speak of in a few years.  So I'm coming at this cold.  But I feel instinctively suspicious of the congressional reaction to this appointment.

Levi Johnston quits oil field job  —  PUBLIC SCRUTINY: Rules say he needs diploma for apprenticeship.  —  wloy@adn.com  —  Levi Johnston, the boyfriend of Gov. Sarah Palin's daughter Bristol, has quit his North Slope oil field job over questions about his eligibility to work …

Obama Pitches Stimulus Plan  —  GOP Asked to Help Design Bill; $300 Billion in Tax Cuts Sought  —  President-elect Barack Obama arrived on Capitol Hill yesterday and immediately set to work reassuring skeptical Republicans about his massive economic stimulus package …

Pelosi's power move leaves House Republicans fuming  —  House Democrats are poised to approve new rules that will significantly increase their authority while taking the bullets out of the few legislative weapons Republicans have in the lower chamber.  —  Speaker Nancy Pelosi (D-Calif.) …

Richardson, Obama Teams Trade Blame  —  Weeks before President-elect Barack Obama chose New Mexico Gov. Bill Richardson to head the Commerce Department, a small group of volunteers with ethics, tax and investigative expertise — most of them lawyers — scoured his background looking for embarrassing facts or political problems.

Steele, Blackwell take limelight at RNC forum  —  Members to vote for new chairman  —  Former Maryland Lt. Gov. Michael S. Steele, an accomplished speaker, and former Ohio Secretary of State Ken Blackwell, not well known for dazzling performances, each repeatedly drew sustained applause …

Senate bid by Jeb Bush iffy, friends say  —  Republican excitement over the prospect of Jeb Bush running for U.S. Senate has given way to increasing speculation that the former governor will stay out of the race.  —  Bush declined to comment for this article but was expected to make an announcement perhaps as early as this week.

Ex-Detainee of U.S. Describes a 6-Year Ordeal  —  LAHORE, Pakistan — When Muhammad Saad Iqbal arrived home here in August after more than six years in American custody, including five at the military prison at Guantánamo Bay, Cuba, he had difficulty walking, his left ear was severely infected …

Respectfully, Hume Torch Is Passed  —  Bret Baier, who took over Fox's Washington newscast last night, dutifully declares that he will gradually put his own “stamp” on the program.  —  Yet in praising the decade-old show that Brit Hume built from scratch — with its heavy focus on politics and punditry …

SUV Sales Surge  —  I guess I'm not all that surprised by a surge in SUV sales now that gas prices have dropped.  Supply and demand, that's how it works—or how it's supposed to work—right?  Still, I didn't think we'd put a hand back on the stove so soon after getting burned.  —  The details:

Obama names gay man as director of Office of Management and Administration  —  Brad Kiley has been named as the director of the Office of Management and Administration by President-elect Barack Obama.  Kiley, who is openly gay, is currently the director of operations for the Obama-Biden Transition Project …

How the U.N. Perpetuates the ‘Refugee’ Problem  —  Nowhere on earth do terrorists get so much help from the Free World.  —  Israel's assault on Hamas is just the latest in a long chain of military clashes, the scripts of which are always the same.  On one side, there is the Israeli army.

The Obama stimulus package should be spent on transformative investments, not bridges and buildings.  —  The incoming Obama administration and Congress are planning a huge fiscal stimulus package.  They hope that such a stimulus will catalyze an economic turnaround and be a cornerstone of a “New New Deal.”

Cars launched at synagogue  —  TOULOUSE - ATTACKERS launched two cars packed with petrol bombs at a synagogue in France's south-western city of Toulouse on Monday night, causing damage but no casualties, officials said.  —  One car was set on fire and pushed by the other until it hit the door …