Morning Political Note: Jan. 24

W A S H I N G T O N, Jan. 24 -- Washington is a mad, mad, mad world today, with news leads proliferating as quickly as congressional Enron hearings.

News Summary

Speaking of which, Ken Lay's resignation, on which the dust continues to settle today, works to keep the laser beam of press and Capitol Hill scrutiny on Lay and the company and away from the White House, even as key Senate and House committees convene hearings on the company's collapse.

Federal Reserve Chairman Alan Greenspan visits with the Senate Banking Committee today and possibly gives some clues as to the Fed's plans for interest rates.

President Bush, accompanied by homeland security chief Tom Ridge, addresses a group of mayors and county officials, and probably parcels out more details of the increased funding for local homeland security efforts that will appear in his State of the Union address and his budget. He also meets with his Cabinet.

Two potential, if not likely, Democratic presidential candidates for 2004 make some high-profile maneuvers today.

And Laura Bush becomes the first Republican first lady to testify before Congress.

Less visible, but nevertheless controlling the political thermostat in Washington: Democrats are reacting cautiously today to the wartime president's proposed hike in defense spending, mirroring the reaction of the White House and some Republican lawmakers to Senate Majority Leader Tom Daschle's slimmed-down stimulus proposal.

While Texas Reps. Dick Armey and Tom DeLay are, as usual, among the exceptions to this kind of rule, some rank-and-file Republicans nervously looking toward November might not agree with them.

And some Democrats are having flashbacks to the 1980s: They already are at risk of regaining their anti-tax cut scarlet A's — the last thing they need is to add on the kind of anti-defense tag that kept them out of the White House for most of 20 years.

While the CBO estimates get lots of play in the papers, it's likely that most of America didn't notice, amidst the flood of John Walker Lindh video, more of which will come today.

The second-day stimpak stories overall seem to suggest a tone of cautious optimism, at least for the proposal's fate in the Senate. The Wall Street Journal says that although Senate Republicans have agreed to start debating the stimulus bill today (with amendments allowed to Daschle's new float), "Republicans hope to stretch out the debate beyond Tuesday, when President Bush comes to the Capitol to deliver the … State of the Union."

The Washington Post reports, "Vowing to bring up the consensus proposals as the Senate's first order of business, Daschle said they could be passed immediately, possibly by the end of the week. The White House and Republicans continued to argue that a more 'comprehensive' package was needed, including income tax rate cuts. But, politically at least, the plan helped Daschle shed the 'obstructionist' label and shift the onus to Republicans if they choose to block a compromise. As of late yesterday, Senate Republicans were still reviewing Daschle's proposal, and some House Republicans criticized its details." (http://www.washingtonpost.com/wp-dyn/articles/A24772-2002Jan23.html )

The Washington Times notes, "Some Republicans said Mr. Daschle came back to the bargaining table because he was feeling pressure to act before Mr. Bush delivers his State of the Union address Tuesday. 'The sense is, the speeches from Senator Daschle and Senator [Edward M.] Kennedy have put them in a very bad political position,' said a Senate Republican aide. 'They'd like to get this monkey off their back as soon as possible.'" ( http://www.washtimes.com/national/20020124-533119.html )

Roll Call adds that "Speaker Dennis Hastert (R-Ill.) appeared to emerge from the White House meeting more encouraged by any sign of possible progress on the economic stimulus front … But National Republican Congressional Committee Chairman Tom Davis (Va.) said he was not at all impressed by Daschle's slimmed-down stimulus proposal. 'He has the votes to pass real stimulus now,' Davis said. 'I think he is just trying to delay.'" ( http://www.rollcall.com/pages/news/00/2002/01/news0124a.html )

Meanwhile, companion stories in most papers cover Democrats' cautious and pretty scant (so far) reactions to Bush's push for more defense spending. The Los Angeles Times reports, "Even Democrats who have been critical of Bush for allowing deficits to blossom did not speak ill of his defense proposal, even if they did not immediately endorse it either. 'Our top priority is to defend the nation,' said Sen. Kent Conrad (D-N.D.), chairman of the Senate Budget Committee. 'We will provide the resources to do it.' But he warned that there would be no 'blank check' for defense. Senate Majority Leader Tom Daschle (D-S.D.) said it was too early to say how much Congress would provide for defense, adding, 'We recognize we're fighting a war on terrorism.'" ( http://www.latimes.com/news/printedition/front/la-000006151jan24.story?coll=la%2Dheadlines%2Dcalifornia )

The Washington Post writes, "Top Senate Democrats said the huge request will meet heavy skepticism, particularly at a time when the government has returned to budget deficits. Earlier in the day, Bush had brought up a sensitive issue that hangs over the 2002 elections when he assured congressional leaders, 'I have no ambition to use the war as a political issue.'" ( http://www.washingtonpost.com/wp-dyn/articles/A25580-2002Jan23.html )

From the Boston Globe: "Senator Edward M. Kennedy, Democrat of Massachusetts, who last week called for delaying part of the president's $1.35 trillion tax cut package, yesterday said he would review the president's defense request as a member of the Armed Services Committee. 'Clearly, ensuring that our military has the necessary resources to fight the war on terrorism and to protect against future attacks is a top priority for all of us in Congress,' he said, adding that he hoped Bush would 'give high priority to the urgent challenges we face at home as well.'" ( http://www.boston.com/dailyglobe2/024/nation/Bush_calls_for_48b_increase_in_defense+.shtml )

Roll Call throws out another possible task for Daschle: consolidating the proliferating committee invetigations into Enron. ( http://www.rollcall.com/pages/news/00/2002/01/news0124a.html )

Two Democrats widely believed to be hankering for Bush's job will take measured shots at the administration today. On Capitol Hill, Sen. Joe Lieberman of Connecticut will preside over the Senate Governmental Affairs Committee's Enron hearing featuring former SEC Chairman Arthur Levitt. But he'll do so under heavy scrutiny given his own ties to the company.

As the Washington Post notes, "Lieberman has labeled the Enron story a 'corporate scandal,' and indicated he wants to use the hearings to explore the role of the SEC, the Department of Energy and other oversight agencies." ( http://www.washingtonpost.com/wp-dyn/articles/A28453-2002Jan23.html )

USA Today adds, "Lieberman's role as chairman of the Governmental Affairs Committee has led to a string of less-than-flattering news notes," then neatly lists them all. ( http://www.usatoday.com/usatonline/20020124/3799579s.html )

The other contender, House Minority Leader Dick Gephardt, today will deliver what his staff has billed as a major, forward-looking (i.e., does not address the current budget situation) economic speech, sponsored by the Democratic Leadership Council. A summary provided in advance includes some rhetoric intended to build expectations for Bush's State of the Union (and Gephardt's response to it).

The release, which hints at additional "major policy addresses," notes that Gephardt will elaborate on four goals: U.S. energy independence within a decade (calling John Kerry … ); better training and education of the workforce, including a "Teachers Corps" and income tax breaks for college tuition; pension reform (calling Enron … ); and investments in a "homeland security trust fund" and a "defense tracking system."

Attorney General John Ashcroft and the assistant attorney general for civil rights will hold a news conference today on an unrelated topic (human trafficking), but may address the war or John Walker Lindh.

From the ABCNEWS London Bureau: Pope John Paul II is leading other religious leaders in a day of prayers for peace in Assisi, the birthplace of St. Francis … Former Lebanese minister and pro-Israeli Christian militia leader Elie Hobeika has been killed in an explosion outside his house in Beirut. First reports indicate that the blast was caused by a car bomb. No word so far as to who might have been responsible for the attack. Hobeika was heavily implicated in the massacre of hundreds of Palestinian refugees in the Sabra and Chatilla camps in west Beirut in 1982. It's been alleged that last week Hobeika met with the Belgian court officials, who are considering whether to accept a suit against Israeli Prime Minister Ariel Sharon filed by Palestinian survivors of the massacre. Hobeika said in July last year that he is willing to testify, and he would have been a major witness.