Obama's Budget Knife Yields Modest Trims  —  Plan Likely to Face Tough Fight on the Hill  —  President Obama has said for weeks that his staff is scouring the federal budget, “line by line,” for savings.  Today, they will release the results: a plan to trim 121 programs by $17 billion …

Stress Tests Said to Show Banks Need More Money  —  The results of the bank stress tests have been trickling out for days, from Washington and from Wall Street, and the leaks seem to confirm what many bankers feel in their bones: despite all those bailouts, some of the nation's largest banks still need more money.

Band of centrists forming for Senate GOP in 2010  —  For those writing Republican centrism's obituary after Arlen Specter's party switch, holster your quills.  —  In fact, if the next few weeks go well for the GOP, it might pave the way for a whole new chapter in the left flank of the right-leaning party.

Should the GOP Forget Reagan?  —  The Republican Party's unending tale of woe sounds like a friend's account of sitting through the New York Yankees' 22-4 loss to the Cleveland Indians at the new Yankee Stadium April 18.  —  In the 14-run second inning, three Indians hit home runs into the right-field seats, including a grand-slam.

The Torture Follies — Just When You Thought It Couldn't Get Worse ...  As K-Lo notes, I have an article (posted on the homepage this afternoon) which recounts how the Obama administration is urging the Sixth Circuit U.S. Court of Appeals to adopt the same interpretation of federal torture law …

National Security Adviser Jones Says He's ‘Outsider’ in Frenetic White House  —  President Obama's national security adviser, James L. Jones, looks for rare opportunities to ride his bike from his McLean home to work at the White House.  On occasion, he has pedaled back across the Potomac River for lunch.

The Treasury Capital Assistance Program and the Supervisory Capital Assessment Program  —  During this period of extraordinary economic uncertainty, the U.S. federal banking supervisors believe it to be important for the largest U.S. bank holding companies (BHCs) to have a capital buffer sufficient …

Are There Any Rules In The Bailout Game?  —  For the Obama administration, the answer is “no.”  —  We are entering a precarious phase of the economic and financial crisis.  On the one hand, there are encouraging, if weak, signs of an economic recovery.  There is evidence of a revival in lending.

Elevating Newt  —  Obama meets today with Al Sharpton, Mike Bloomberg, and Newt Gingrich to talk about education, and the latter three will then speak to press on the White House lawn.  —  It's a way for the administration to signal openness to a range of voices on the topic, but it's also an interesting choice of conservative.

Free web news era over, says Rupert Murdoch  —  Current days of free internet will soon be over, says media mogul  —  Rupert ­Murdoch expects to start charging for access to News Corporation's newspaper websites within a year as he strives to fix a ­"malfunctioning" business model.

Limbaugh to Powell: ‘Become a Democrat’  —  WASHINGTON (CNN) - Rush Limbaugh fired back at Colin Powell for his critical comments earlier this week, saying Wednesday that the former secretary of state should join the Democratic Party.  —  “What Colin Powell needs to do is close the loop …

EXCLUSIVE: Records violations ensnare housing nominee  —  Office handed largest fine in U.S. history  —  President Obama's choice for the government's No. 2 housing job is embroiled in the largest fine in U.S. history for “blatant violations” of open records laws after the Washington State …

Obama to be prayer day no-show  —  President to sign proclamation, observe privately  —  President Obama is distancing himself from the National Day of Prayer by nixing a formal early morning service and not attending a large Catholic prayer breakfast the next morning.

Dem centrists press Pelosi to shelve climate bill  —  Democratic centrists are pressing House Speaker Nancy Pelosi to set aside a flagging climate change bill to focus on what they think is a more achievable goal: overhauling the nation's healthcare system.  —  But those close to Pelosi …

UPDATED: Steele Condemns Maine Decision, Revealing Split With Snowe and Collins  —  After the RNC said he wouldn't be issuing a statement on Maine's decision to legalize gay marriage today, RNC Chairman Michael Steele is in fact condemning the decision, a position that puts him at odds …

Republicans and Obama's Court Nominees  —  Senators can use the hearings to talk about judicial restraint.  —  Printer  —  Friendly  —  Few events mobilize as many interest groups and set Washington atwitter as much as a Supreme Court vacancy.  In the Bush White House …

Hawaii Lawmakers Pass Bill to Create ‘Islam Day’  —  Hawaii's state Senate overwhelmingly approved a bill Wednesday to celebrate “Islam Day” — over the objections of a few lawmakers who said they didn't want to honor a religion connected to Sept. 11, 2001.  —  HONOLULU — Hawaii's state …

JOHN EDWARDS' MISTRESS DEMANDS DNA TEST FOR BABY!  —  John Edwards' furious mistress is demanding he submit to a DNA test, The ENQUIRER has learned exclusively!  —  Rielle Hunter - the longtime secret lover of the disgraced 2-time presidential candidate - wants definitive proof that Edwards …