CHANGE FOR THE WORSE  —  WASHINGTON - Buried deep inside the massive spending orgy that Democrats jammed through the House this week lie five words that could drastically undo two decades of welfare reforms.  —  The very heart of the widely applauded Welfare Reform Act of 1996 is a cap …

GOP fights to keep Gregg in the Senate  —  Republicans in Washington and New Hampshire are mounting a full-court press to keep Sen. Judd Gregg (R-N.H.) in the Senate and out of the Obama administration, aides and senators said Friday.  —  But if he does take the commerce secretary job …

Nelson ‘Undecided’ On Recovery Plan: 'I Don't Even Know How Many Democrats Will Vote For It As It Stands'  —  On Wednesday, when the House voted 244 - 188 to approve the American Recovery and Reinvestment Act, 11 Democrats joined with the entire Republican caucus in voting against the bill.

Time to put middle class front and center  —  For years, we had a White House that failed to put the middle class front and center in its economic policies.  —  President Obama has made it clear that is going to change.  And it's why he has asked me to lead a task force on the middle class.

Power's back  —  In quietly hiring Samantha Power at the NSC, Barack Obama has brought back from an exile yet another adviser known for speaking her mind.  —  Power's exile was a matter of political convenience: She wasn't some political operative who had played a dirty trick …

Cuomo Said to Eye Return of $4 Billion in Early Merrill Bonuses  —  Jan. 29 (Bloomberg) — New York Attorney General Andrew Cuomo may demand the return of $4 billion in bonuses paid by Merrill Lynch & Co. just before it was acquired by Bank of America Corp., a person familiar with the matter said.

Obama vs Limbaugh: ‘Adult beverages’  —  President Barack Obama should think twice before making too much of the criticism of radio's Rush Limbaugh, Republican Sen. John McCain suggests.  —  While Limbaugh slams the Obama administration for the “pork” of the president's economic stimulus plan …

Monument to Bush shoe-throwing shines at Iraqi orphanage  —  BAGHDAD, Iraq (CNN) — For the war-beaten orphans of the northern Iraqi city of Tikrit, this big old shoe fits.  —  A huge sculpture of the footwear hurled at President Bush in December during a trip to Iraq has been unveiled in a ceremony at the Tikrit Orphanage complex.

Obama Distorts America's Stance on Muslims  —  Every new president flatters himself that he, kinder and gentler, is beginning the world anew.  Yet, when Barack Obama in his inaugural address reached out to Muslims by saying “to the Muslim world, we seek a new way forward …

Alice Rivlin: “Now Is An Excellent Time To Fix Social Security And Medicare”  —  Pete Davis reports on a lunch talk by former OMB Director Alice Rivlin (she was CBO Director, too, the Peter Orszag of her day) about the economic situation: … Very little about the conservative movement's reaction …

GROSS DOMESTIC PRODUCT: FOURTH QUARTER 2008 (ADVANCE)  —  Real gross domestic product — the output of goods and services produced by labor and property located in the United States — decreased at an annual rate of 3.8 percent in the fourth quarter of 2008, (that is, from the third quarter …

Former USS Cole commander slams Obama on Guantanamo  —  The former commander of the USS Cole, the American war ship that was struck by a suicide boat in Yemeni waters more than eight years ago, on Thursday slammed President Barack Obama's orders to close the Guantanamo detention center and reassess the prisoners being held there.

Cleaner and Faster  —  Throughout 2008, Larry Summers, the Harvard economist, built the case for a big but surgical stimulus package.  Summers warned that a “poorly provided fiscal stimulus can have worse side effects than the disease that is to be cured.”  So his proposal had three clear guidelines.

Sticking It to Rahm  —  We Hate Rahm: Inside the GOP's Obama Revolt by John Batchelor  —  Blogs and Stories  —  From their shared loathing of Rahm Emanuel to the insurgency led by the minority leader ("he took us by the throat"), the inside story of why not a single House Republican supported the president's stimulus package.

IL-Sen: The GOP's best lag behind  —  Research 2000 for Daily Kos. 1/26-28.  Likely voters.  MoE 4%, 5% for primary samples (No trendlines) … What can you say?  It's early and people aren't ready to make any calls.  Given that Rep. Jan Schakowsky and State Treasurer Alexi Giannoulias …

U.S. Removes Kashmir From Envoy's Mandate; India Exults  —  Inside a chandeliered ballroom Thursday, Indian diplomats and business leaders and American officials held forth about a new “Cooperation Triangle” for the United States, China and India.  But little mention was made at the Asia …