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 …

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 …

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 …

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.

After Party Switch, a Senator's Confused Alliances  —  WASHINGTON — Senator Arlen Specter, Republican-turned-Democrat of Pennsylvania, has rapidly discovered that switching parties is not as simple as checking a new box on a voter-registration card.  —  After a week and a day as a Democrat …

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.

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.

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 …

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.

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.

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.

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 …

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 …

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 …

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.

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 …

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 …