National Briefing

OBAMA

1. He's Turned Into A Townie

Today, Pres. Obama is holding yet another town hall on healthcare reform, his second in two weeks, this one in Annandale, VA. Today's town hall follows a pattern the admin. "has adopted whenever" Obama's agenda faces roadblocks on the Hill: Get out of DC. Dems and GOPers "are starting to draw lines in the sand that make the chances of healthcare reform happening this year seem even more dicey." The WH "has come under fire this week for refusing to say whether" Obama "would agree to a plan that goes against his campaign pledge to raise taxes on the middle class" (Youngman, The Hill, 7/1).

Meanwhile, on 6/30 WH press sec. Robert Gibbs "clung to a hands-off-Congress strategy in seeking to explain why he won't discuss" Obama's "refusal to reiterate his campaign pledge not to tax health care benefits." Gibbs also declined to say whether the WH "wants to run health care reform under reconciliation" (Koffler, Roll Call, 7/1).

Virginia Is For Lovers And Facebook Friends

In a 6/30 release, the admin provided an explanation for its VA town hall, and touted the social networking tools it will utilize today. According to the Kaiser Family Foundation's data for '06, single employees in VA pay the highest percentage of premiums (24%) through employer plans in the country. Obama advisor Valerie Jarrett will moderate the town hall," and in "addition to the live audience, questions will come from online communities such as Facebook, YouTube and Twitter" (release, 6/30).

Obama is "tapping online social media in a new end run around the traditional news filter." Although "the format opens up the opportunity for questioning Obama to a potentially limitless online audience," the WH "controls which questions are asked" (Mason, Examiner, 7/1).

Promoting The "Rural Juror"

Obama is dispatching top admin officials and "Cabinet members on a 'rural tour' this summer to explore ways to strengthen rural America." Today, in Wattsburg, PA, VP Biden, Commerce Sec. Gary Locke and Ag Sec. Tom Vilsack "will discuss rural broadband service." Additionally, the secs of Health, VA Labor and Ag "will discuss rural health care" on 7/20 in St. John the Baptist Parish, LA. Other events are planned for AL, LA, NE, NM, NC, OH, VA and WI (AP, 6/30).

So, Now You're Giving Congress Details?

The Obama admin. on 6/30 sent "Congress a detailed, 150-page proposal" for a new consumer financial protection agency "that would set new standards for ordinary mortgages, restrict or prohibit risky loans, investigate financial institutions and enforce new laws aimed at protecting credit card customers" (Andrews, New York Times, 7/1). In a statement accompanying the 152-page draft bill, Obama said: "Those ridiculous contracts with pages of fine print that no one can figure out - those things will be a thing of the past" (Flaherty, AP, 7/1).

Obama's proposed agency "would have broad oversight for a range of products," although securities products, overseen by the SEC, "and most of the insurance industry wouldn't fall under the new agency's oversight, a Treasury official said. But the agency would have subpoena power and would be funded in part by the financial-services industry" (Crittenden, Wall Street Journal, 7/1).

Meanwhile, bankers are "placing top priority on killing" Obama's proposal. Industry execs vowed 6/30 to fight Obama's "plan with everything they have, even though banks are still heavily dependent on many taxpayer-supported loans and loan guarantees to get through the crisis." American Bankers Assn. pres. Edward Yingling: "It's going to be a huge fight. This agency would have broad powers that go beyond every consumer law that has ever been enacted" (New York Times, 7/1).

Bern-ing Bridges

The Obama admin. "escalated its attack on Swiss bank secrecy and tax evaders by insisting UBS reveal the identities" of 52K U.S. account holders.

In papers filed 6/30 in U.S. Dist. Court in Miami, DoJ "responded to UBS' opposition to releasing the names." The gov't "is seeking the names as part of a lawsuit against the largest Swiss bank by assets." The DoJ filing: "The United States has a strong national interest in making sure that all (U.S.) taxpayers comply with the tax laws."

The Swiss gov't "has said the lawsuit would 'seriously jeopardize' efforts to revise" a '96 tax treaty, but DoJ said the treaty "doesn't prevent" the U.S. "from obstaining the information" (Bloomberg, 7/1).

We Call It, The Bureaucrats!

"Documents delivered" to members of the Senate Homeland Security and Gov't Affairs Cmte "this week expose a frequently confrontational and petty relationship over the past several years" between and officials at the Corp. for Nat'l and Community Service and ex-IG Gerald Walpin, who was "fired" by Obama "last month." Obama cited "a lack of confidence" in dismissing Walpin, an appointee of George W. Bush.

Among the docs is a May '08 "parody newsletter published by staff members in Walpin's office and approved by him as a gift" for a retiring asst. IG. "The newsletter contains fake news articles, including two with racial and sexual jokes" referencing the fed. procurement process and the gov't use of "set-aside programs for minorities and disabled veterans."

One article refers to ex-NY Gov. Elior Spitzer's (D) "admitted use of a prostitution service 'that specializes in the procurement of blondes, brunettes and redheads.'" Another piece "suggested the departing colleague had 'finally procured her Federal retirement' from a vendor 'known to be owned and operated by a qualified minority-female-veteran-disabled person.'"

An agency employee "later complained about the newsletter" to mgmt, "who then addressed the matter with Walpin." Walpin "never issued a wearning or disciplinary action about the matter."

Walpin "said that his staff had enjoyed the newsletter's humor and that no one had directly complained about its content." He "acknowledged he spoke with" the corps. gen. counsel "about the complaints but took no disciplinary action related to the newsletter because, 'I still don't see where it's objectionable.'"

The agency also "provided a series of memos" from Jan. '09 "regarding an equal opportunity complaint filed against Walpin's office." Walpin "raised procedural questions and suggested the investigation was handled unfairly, before admitting" in a late-Jan. e-mail: "I had no prior experience and therefore no knowledge of the procedure."

Walpin "is scheduled to be interviewed today" by cmte staffers. He "once again suggested the agency's claims lack merit and do little to build a case for his dismissal" in a 6/30 interview (O'Keefe, Washington Post, 7/1).

Four More Years! Then Another Four.

Chicago Tribune's Silva notes, the internet "was abuzz" on 6/30 "with queries about a resolution introduced this year" that would repeal the 22nd Amendment to the Constitution and allow an individual to seek more than two terms as pres. ("The Swamp," 6/30).

Rep. José Serrano (D-NY) introduced the bill on 1/6. A website devoted to the cause, End22.com, notes that Serrano has introduced this bill in every Congress since '97 (Hotline reporting, 7/1).

The bill is currently "languishing" in the House Jud. subcmte on the constitution, civil rights and civil liberties.

Gibbs "suggested that no one need worry about Obama seeking any third term." Gibbs: "I think the president is firmly in support of an amendment that would limit his time in the presidency to eight years if he's given that awesome responsibility by the American people" (Silva, "The Swamp," Chicago Tribune, 6/30).

Dispatches From The Imagination Age

Defense Sec. Robert Gates said 6/30 that the Pentagon "is looking into 'more humane' ways to comply with a law that bans openly gay people from serving in the military." Gates said that the Pentagon's "general counsel is exploring ways of making 'Don't Ask, Don't Tell,' more flexible until it is eventually changed" (Tiron, The Hill, 7/1).

Gates "said he discussed the issue last week" with Obama "and that there also has been discussion among senior military and legal counsel about possible changes in how they apply the law," which he described as 'very restrictive.'" Gates: "We're talking about how do we move forward on this, achieve this objective which is changing the policy." Gates added: "What I discovered when I got into it was it's a very restrictive law. It doesn't leave much to the imagination, or a lot of flexibility" (AFP, 6/30).

Gates' remarks, made aboard a military plane on the way to Germany 6/30, come one day after Obama reiterated his support for repealing the ban during a LGBT reception (The Hill, 7/1).

"First Known Example Of Awkwardness"

Washington Times' Kralev writes, Sec/State Hillary Clinton "urged" Obama "for two days to toughen his language on Iran before he did so, and then was surprised when he condemned Iran's crackdown on demonstrators last week," admin. officials say. Clinton "had been advocating the stronger US response," but Obama resisted. When he "finally took her advice, the aides said, he did so without informing her first." This was the first "known example of awkwardness between the two" ex-WH rivals "since they made up following" Obama's election. The WH and the State Dept declined to comment publicly on Clinton's "private advice" to Obama and their internal communications (7/1).

Second Example: Fighting For Ted Danson's Affection

Obama and his family plan to vacation next month on Martha's Vineyard, Dem sources have confirmed. The Vineyard has long been a favorite vacation spot for the Clintons (Politico, 7/1). Meanwhile, the Clintons are expected to be on the Vineyard at the same time as the Obamas, although they are denying reports Chelsea Clinton will wed long-time boyfriend Marc Mezvinsky during the stay. Rumors have surfaced that Chelsea's wedding will take place in late August, at the Vineyard summer home of either longtime Clinton confidant Vernon Jordan or Clinton supporter/actor Ted Danson (Hotline sources, 7/1).

Going All Shiloh Jolie-Pitt On Us

Over the "past few months, the WH "has been strict with journalists when it comes to covering" Sasha and Malia Obama (Calderone, Politico, 7/1) Recently, there has been some "discontent" among WH photographers about the admin's "aggressiveness in putting out their own images while trying to restrict the work of professionals.'" In one recent incidence, Obama's "face brightened as he looked up and saw" Sasha on the WH's Truman Balcony. He "gave an exaggerated wave, she waved back and photographers captured a rare, unscripted moment." It "seemed innocent enough," yet WH officials asked news orgs "not to distribute the image." Meanwhile, weeks later, Parade magazine "put a candid shot of the First Family" on its cover, illustrating an article about fatherhood that the WH had suggested (AP, 6/30).

And What's Your Relationship Like With Rahm?

NSA James Jones sat down for an interview with PBS' Lehrer, and he was asked about his job.

Lehrer: "Going in to the Obama administration, the national security team, there was a lot of talk that there's an awful lot of big egos, special envoys, all kinds of things. And there was a question about whether or not it would work. And six months later, is it working?"

Jones: "I think so. The National Security Council that serves the president is a different animal than perhaps previous National Security Councils. It is designed to make sure that the big issues, the ones that the president has to decide, are debated, sometimes vigorously debated, by the principals and the deputies. And we have a very good process by which we elevate these issues to the president's attention. And once he makes a decision, then we turn to the task of making sure that the decisions are properly implemented."

Lehrer: "You're comfortable with doing the job?"

Jones: "I'm comfortable with doing the job."

Jones, on anonymous sources claiming that he is not up to the job: "Admittedly, I think some -- if you're pleasing everybody, you're not really doing your job. My first tour in working for the U.S. government, they sent me to a country in a faraway place where people tried to kill me for a year. ... So this is not particularly worrisome" ("NewsHour," 6/30).

(For more from Jones' interview, see today's IRAQ story).

The-Working-Joe

• Biden will be in Pittsburg, PA, this pm for a DNC fundraiser (release, 7/1).

• Biden will soon take on a new role. The WH said 6/30 "he will travel more extensively to Iraq and work as someone who will try to bring political reconciliation to that country working with US military commanders and US diplomats. He will not, however, talk about what he did during the campaign -- that is, a three-way partition of the country" (Garrett, FoxNews.com, 6/30).

Lest We Forget

• Colombian Pres. Alvaro Uribe on 6/30 said Obama "is 'very interested in moving ahead' with a controversial trade agreement with the South American nation." Uribe described his 6/29 meeting with Obama "as constructive, and said the trade deal was vital to bringing prosperity to his country" (McCaffrey, The Hill, 7/1).

• Obama will be interviewed by the AP on 7/2 "to discuss his upcoming foreign trip to Russia, Italy, and Ghana, and his domestic agenda." The trip is slated for 7/5-12 (AP, 6/30).

• According to Gibbs, Obama has no intention of putting "Taxation Without Representation" license plates on his limousine. Gibbs in his 6/30 briefing: "I think rather than change the logo around the license plate, the president is committed instead to changing the status of the District of Columbia" (DeBonis, Washington City Paper, 7/1).

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