Questions surround Kagan's handling of White House eco-terrorist controversy  —  In 1995 and 1996, future Supreme Court nominee Elena Kagan was involved in a bizarre controversy in which the Clinton White House was accused of siding with an eco-terrorist group locked in a standoff with federal agents deep in the woods of Oregon.

Voters Shifting to GOP  —  Republicans have solidified support among voters who had drifted from the party in recent elections, putting the GOP in position for a strong comeback in November's mid-term campaign, according to a new Wall Street Journal/NBC News poll.

Arizona tourism loses more business in wake of immigration law vote  —  Arizona took another hit Wednesday as Republicans cast a vote for the home of their 2012 convention.  Phoenix made the short list but lost out to Tampa.  —  It was little surprise to tourism officials in Arizona.

Cuomo Is Said to Question Banks' Influence on Ratings  —  The New York attorney general has started an investigation of eight banks to determine whether they provided misleading information to rating agencies in order to inflate the grades of certain mortgage securities, according to two people with knowledge of the investigation.

SC Gov. Sanford saw Argentine lover in Florida  —  COLUMBIA, S.C. — South Carolina Gov. Mark Sanford said Wednesday he spent last weekend in Florida with his Argentine lover, hoping to rekindle the affair that wrecked his marriage and his political future and brought a formal rebuke from legislators for embarrassing the state.

“Jobs” Drops to No. 2 on Americans' List of Top Problems  —  Economy ranks No. 1, while mentions of immigration are up sharply  —  PRINCETON, NJ — After two months as the clear No. 1 perceived problem facing the country, unemployment/jobs dipped to No. 2 in May, while “the economy” in general moved back into the top position.

Galbraith: The danger posed by the deficit ‘is zero’  —  James Galbraith is an economist and the Lloyd M. Bentsen Jr. chair in government and business relations at the University of Texas at Austin.  He's also a skeptic of the prevailing concern over America's long-term deficit.

1,000-page climate bill is unveiled  —  Sens. John Kerry (D-Mass.) and Joe Lieberman (I-Conn.) on Wednesday unveiled their nearly 1,000-page climate change bill, flanked by environmentalists, religious and ex-military leaders and energy industry officials.  —  But the glaring absence …

The New Poor: The Economy Shifts, Leaving Some Behind  —  JACKSONVILLE, Fla. — Many of the jobs lost during the recession are not coming back.  —  Period.  —  For the last two years, the weak economy has provided an opportunity for employers to do what they would have done anyway …

Has clout become the ‘kiss of death’?  —  The back-to-back primary defeats of two powerful appropriators have sent an unmistakable message to lawmakers: The trappings of power can be a trap.  —  On Wednesday night, West Virginia Democrats eighty-sixed Rep. Alan Mollohan …

Iraq violence delays US withdrawal  —  Withdrawal of first large phase of combat troops likely to be delayed for at least a month due to Iraq's instability  —  The White House is likely to delay the withdrawal of the first large phase of combat troops from Iraq for at least a month …

USNA reconsiders greasy-statue climb  —  The Herndon Climb is a signature annual event at the United States Naval Academy.  Each May, a thousand first-year midshipmen surge to the top of a 21-foot granite obelisk coated with 200 pounds of lard.  The first mid to the top plants a midshipman's cap.

The Contrast in Mood Between Today and 1983  —  The most astonishing and surprising thing I find about Washington DC today is the contrast in mood between DC today and what DC was thinking a generation ago, in 1983, the last time the unemployment rate was kissing 10%.

VAT ‘will rise’ under coalition  —  VAT is set to rise under the new coalition government, according to a BBC survey of influential economists.  —  Of 29 independent economists currently used by the Treasury to assist its forecasts, 24 said they expected the rate to rise in the coming parliament.

What's Happening to Faisal Shahzad?  —  The lack of a court appearance suggests prosecutors are getting information.  But they shouldn't have to improvise.  —  The Obama administration's announcement that it will seek legislative changes to Miranda warnings for terrorism suspects is a signal event.

Statement by President Obama on Financial Reform  —  Throughout the debate on Wall Street reform, I have urged members of the Senate to fight the efforts of special interests and their lobbyists to weaken consumer protections.  An amendment that the Senate will soon consider would do exactly that …

U.S. posts 19th straight monthly budget deficit  —  (Reuters) - The United States posted an $82.69 billion deficit in April, nearly four times the $20.91 billion shortfall registered in April 2009 and the largest on record for that month, the Treasury Department said on Wednesday.

Arrest of 13 CIA Agents Sought in Spain  —  Prosecutors attached to the Audiencia Nacional in Madrid are reportedly requesting that Judge Ismael Moreno issue an order for the arrest of thirteen CIA agents involved in an extraordinary rendition operation from 2004, the newspaper El País reports …

Arizona gov. signs bill targeting ethnic studies  —  PHOENIX - Arizona Gov. Jan Brewer has signed a bill targeting a school district's ethnic studies program, hours after a report by United Nations human rights experts condemned the measure.  —  State schools chief Tom Horne …