Thursday, February 28, 2013

Reuters: Politics: Government workers riled up ahead of automatic budget cuts

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Government workers riled up ahead of automatic budget cuts
Feb 28th 2013, 20:21

Speaker of the House John Boehner speaks at a news conference on Capitol Hill in Washington February 28, 2013. REUTERS/Larry Downing

1 of 2. Speaker of the House John Boehner speaks at a news conference on Capitol Hill in Washington February 28, 2013.

Credit: Reuters/Larry Downing

By Ian Simpson and Anna Yukhananov

WASHINGTON | Thu Feb 28, 2013 3:21pm EST

WASHINGTON (Reuters) - Government workers normally unfazed by political gridlock are angry that they will be disproportionately hurt by Washington's inability to reach a deal to avoid some $85 billion in automatic budget cuts due to kick in on Friday.

The indiscriminate spending cuts, which will occur unless President Barack Obama and Congress reach a last-minute agreement, threaten to puncture the affluence of the U.S. capital and its suburbs, where incomes and house prices have benefited from decades of federal largesse.

The area's 375,000 federal workers are bracing for possible furloughs and pay cuts that also stand to drain the budgets of local municipalities and possibly force companies doing business with the government to lay off staff.

"It's like a bull's eye: any target, we are there," said Jay Matthews, who works in the chief counsel's office at the Internal Revenue Service in Washington. "They target us because they think we make too much money. And they target us because they think we're lazy."

The Pentagon said last week it planned to put its 800,000 civilian defense employees around the world on 22 days of unpaid leave, or furlough, this year if the cuts went through.

That amounts to a 20 percent pay cut for Erika Townes, 38, a nurse at the Joint Base Andrews military facility in Maryland who said she supports four children and a disabled husband on less than $50,000 a year.

"Most people I work with are one paycheck away from being homeless - one. That's the way the economy is right now," she said.

The cuts, known as "sequestration," are already law, though they were never intended to go through when lawmakers devised them in 2011 as part of a U.S. debt limit agreement. It was believed that the cuts would be so big and indiscriminate that Democrats and Republicans would come up with an alternative.

But neither side has budged on how to resolve the impasse, with the Republicans drawing a line on further tax increases and Democrats refusing major cuts to the Medicare health program for seniors and other government entitlements.

Carolyn McMillian, a financial management specialist at the Food and Drug Administration office in White Oak, Maryland, said she was working 12- to 14-hour-days, keeping a tight rein on spending for FDA inspectors.

Inspectors who travel alone are discouraged from renting a car; they must rely on public transportation or try to find a government vehicle.

"I'm hoping Obama and Congress have a meeting of the minds at the last minute so they can compromise," McMillian said. "I would tell them to treat it as if they were in our shoes."

REGIONAL ECONOMY THREATENED

The Washington region, with its 5.6 million people, accounts for just under 5 percent of the U.S. population but gets 9 percent of federal spending and 15 percent of Pentagon outlays.

Federal procurement in the Washington area has climbed from less than $5 billion in 1980 to its peak of more than $80 billion in 2010, with the rise steepening since the September 11, 2001 attacks on the United States, according to George Mason University data.

The automatic cuts could cost an estimated 208,000 jobs in Virginia, 127,000 in the District of Columbia and 115,000 in Maryland, according to George Mason University's Center for Regional Analysis.

About two-thirds of the job losses in Virginia, home to the Pentagon and such defense companies as General Dynamics Corp and naval shipyards at Newport News, would come from $46 billion in Pentagon spending cuts, the study said.

With an eye to the "sequester," planners at Fairfax County, Virginia, which is home to the Pentagon, this week proposed a fiscal 2014 budget that was 0.37 percent smaller than the previous year's. County workers would get no pay raises.

The impact on county finances was "unknown and potentially significant," Fairfax County said in a statement.

Jim Dinegar, president and chief executive of the Greater Washington Board of Trade, said businesses have frozen hiring, contractors are pressing lawyers to hold down rates, and companies are reluctant to take work without a guarantee of payment.

"Right now, everything is delayed," Dinegar said.

(Editing by Daniel Trotta, Karey Wutkowski and Paul Simao)

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Reuters: Politics: Maryland Senate passes gun control bill

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Maryland Senate passes gun control bill
Feb 28th 2013, 20:46

Maryland Governor Martin O'Malley addresses the 2012 Democratic National Convention in Charlotte, North Carolina, September 4, 2012.

Credit: Reuters/Jim Young

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Reuters: Politics: Senate panel delays action on gun control bills

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Senate panel delays action on gun control bills
Feb 28th 2013, 19:27

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Guns are seen inside a display case at the Cabela's store in Fort Worth, Texas, June 26, 2008. REUTERS/Jessica Rinaldi

Guns are seen inside a display case at the Cabela's store in Fort Worth, Texas, June 26, 2008.

Credit: Reuters/Jessica Rinaldi

By Thomas Ferraro

WASHINGTON | Thu Feb 28, 2013 2:27pm EST

WASHINGTON (Reuters) - The Senate Judiciary Committee on Thursday postponed consideration of four bills to curb gun violence after Republicans said they needed more time to study the proposed ban on military-style assault weapons.

The one-week delay by the Democratic-led committee appears unlikely to change the fate of the bills, all of which appear headed to the full Senate for a vote.

The move comes a day after the panel heard emotional testimony that included pleas for lawmakers to back the proposed assault weapons ban.

Neal Heslin, whose 6-year-old son Jesse Lewis was killed with 19 other children and six adults in the December 14 massacre at Sandy Hook Elementary School in Newtown, Connecticut, said the death toll would have been lower if the gunman had not had the automatic weapon.

But Republicans question whether a ban on assault weapons, which is similar to one that was in effect for a decade before expiring in 2004, would violate Americans' right to bear arms under the U.S. Constitution.

Senator Charles Grassley of Iowa, the panel's top Republican, noted that during Wednesday's hearing the measure's sponsor, Democratic Senator Dianne Feinstein of California, asked for suggestions to improve the assault weapons bill.

Critics of Feinstein's bill, Republicans and some Democrats, say studies indicate the earlier ban had no impact on the nation's homicide rate. But backers say assault weapons have been the firearm of choice in several U.S. mass shootings in recent years.

Besides the bill to ban assault weapons, which faces an uphill fight to pass the full Senate, the other bills call for expanded background checks for prospective gun buyers, a crackdown on the illegal trafficking of firearms, and various improvements to school security.

Support generally has been strongest for the background checks bill, but senators have not reached a detailed, bipartisan agreement even on that proposal.

Committee Chairman Patrick Leahy, a Vermont Democrat, said the panel will take up the four bills next Thursday and it could take a few of debate before voting.

(Editing by David Lindsey and Vicki Allen)

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Reuters: Politics: Jack Lew sworn in as Treasury secretary

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Jack Lew sworn in as Treasury secretary
Feb 28th 2013, 17:58

Jack Lew, President Barack Obama's nominee to lead the U.S. Treasury Department, testifies before the Senate Finance Committee on Capitol Hill in Washington February 13, 2013.

Credit: Reuters/Kevin Lamarque (UNITED STATES - Tags: POLITICS BUSINESS) - RTR3DQTB

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Reuters: Politics: House gives final OK to bipartisan domestic abuse bill

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House gives final OK to bipartisan domestic abuse bill
Feb 28th 2013, 17:34

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A general view of the U.S. Capitol building in Washington February 28, 2013. REUTERS/Jason Reed

A general view of the U.S. Capitol building in Washington February 28, 2013.

Credit: Reuters/Jason Reed

WASHINGTON | Thu Feb 28, 2013 11:54am EST

WASHINGTON (Reuters) - The House of Representatives on Thursday rejected as inadequate a bill written by its Republican leaders to renew and expand the landmark 1994 Violence Against Women Act.

The action, on a vote of 257-166, clears the way for anticipated final congressional approval of a bipartisan version of the measure earlier approved by the Democratic-led Senate.

(Reporting By Thomas Ferraro; Editing by Vicki Allen)

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Reuters: Politics: IMF set to cut growth forecasts if U.S. spending is cut

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IMF set to cut growth forecasts if U.S. spending is cut
Feb 28th 2013, 16:59

A man walks past the logo of the International Monetary Fund at the main venue for the IMF and World Bank annual meeting in Tokyo October 10, 2012.

Credit: Reuters/Kim Kyung-Hoon

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Reuters: Politics: Journalist Woodward tangles with White House over spending cuts

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Journalist Woodward tangles with White House over spending cuts
Feb 28th 2013, 14:35

Bob Woodward, a former Washington Post reporter, discusses about the Watergate Hotel burglary and stories for the Post at the Richard Nixon Presidential Library in Yorba Linda, California April 18, 2011. REUTERS/Alex Gallardo

Bob Woodward, a former Washington Post reporter, discusses about the Watergate Hotel burglary and stories for the Post at the Richard Nixon Presidential Library in Yorba Linda, California April 18, 2011.

Credit: Reuters/Alex Gallardo

By Mark Felsenthal

WASHINGTON | Thu Feb 28, 2013 9:35am EST

WASHINGTON (Reuters) - A prominent Washington journalist said in interviews on Wednesday a senior White House official warned him he would "regret" publishing a story challenging the White House's account of how the idea for automatic spending cuts originated.

Bob Woodward said in interviews with Politico and CNN that when he informed the White House he was writing a story critical of the White House's handling of a debate over the origin of the cuts, known as sequestration, the official reacted angrily.

The aide "yelled at me for about a half hour," Woodward told Politico, and then followed up the tirade with an email.

"I apologize for raising my voice in our conversation today," the official wrote Woodward. "You're focusing on a few specific trees that give a very wrong impression of the forest. But perhaps we will just not see eye to eye here. ... I think you will regret staking out that claim."

Politico reported that Woodward saw the statement as a veiled threat.

"I've tangled with lots of these people," said the journalist, who established his reputation by breaking the story of the Watergate break-in under President Richard Nixon and has written a series of best selling books about Washington politics.

"But suppose there's a young reporter who's only had a couple of years â€" or 10 years' â€" experience and the White House is sending him an email saying, ‘You're going to regret this,'" Woodward said. "You know, tremble, tremble. I don't think it's the way to operate."

Some $85 billion in spending cuts are due to go into effect Friday unless Congress acts, and with the deadline approaching there is practically no movement toward preventing them. President Barack Obama has scheduled a meeting with congressional leaders on Friday, but little is expected of the encounter.

The president has crisscrossed the country in recent weeks to draw attention to the inconveniences and problems from the cuts, which economists say could shave 0.6 percentage points off of already anemic U.S. growth.

While the president has been conducting that campaign, the spat over what Woodward calls the "paternity" of the sequester has proven a distracting sideshow to the fiscal battle.

The administration has sought to counter charges by Republicans that the sequestration cuts were proposed by Obama administration officials.

Woodward's book "The Price of Politics" is a fly-on-the-wall account of the negotiations in 2011 that ended with a deal to raise the nation's debt limit. As part of the deal, both sides agreed to make additional efforts to reduce the national budget deficit, and proposed the sequester as an alternative so unappealing that it would force the administration and congressional Republicans to find common ground.

That deal proved elusive and both sides are currently trading blame for the sequestration cuts.

TWITTER FUN

Woodward said in an article in the Washington Post on Friday that the president and his chief of staff at the time, current Treasury Secretary Jack Lew, were wrong in initially claiming last year that the sequester was the Republicans' idea.

"Obama personally approved of the plan for Lew and (Rob)Nabors to propose the sequester to Senate Majority Leader Harry Reid," Woodward said. "They did so at 2:30 p.m. July 27, 2011, according to interviews with two senior White House aides who were directly involved." Nabors was then the White House's chief liaison to Congress and is now deputy chief of staff.

The administration has argued that both sides agreed to the terms of the sequester and has pointed to comments at the time from House of Representatives Speaker John Boehner, a Republican, that he was for the most part satisfied with the deal that spawned the arrangement.

Woodward's account of his recent testy exchange with the White House points to continued sensitivity over the issue of whose idea the sequester was.

A White House official said in an emailed response to Reuters that no threat was intended by the comment.

"The email from the aide was sent to apologize for voices being raised in their previous conversation," the aide said. "The note suggested that Mr. Woodward would regret the observation he made regarding the sequester because that observation was inaccurate, nothing more."

The BuzzFeed news website identified the official who tangled with Woodward as Gene Sperling, head of the National Economic Council. The White House did not respond to a request to confirm the identity of the official.

News of the exchange drew instant reaction from Washington insiders on Twitter, much of poking fun at the war of words.

"My amateur advice: stop cooperating with Woodward in the first place," wrote Neera Tanden, the president of the liberal-leaning Center for American Progress think tank and a former Obama campaign advisor.

"Hey, guess what? All of you will talk to Woodward for his next book, too," wrote Tony Fratto of Hamilton Place Strategies and a former White House official under President George W. Bush.

(Reporting by Mark Felsenthal; editing by Jackie Frank)

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Reuters: Politics: President Obama to name Edith Ramirez head of Federal Trade Commission

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President Obama to name Edith Ramirez head of Federal Trade Commission
Feb 28th 2013, 13:02

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The Federal Trade Commission building is seen in Washington on March 4, 2012. REUTERS/Gary Cameron

The Federal Trade Commission building is seen in Washington on March 4, 2012.

Credit: Reuters/Gary Cameron

WASHINGTON | Thu Feb 28, 2013 8:02am EST

WASHINGTON (Reuters) - President Barack Obama intends to name Edith Ramirez the chairwoman of the Federal Trade Commission, a White House official said on Thursday.

Ramirez has been an FTC commissioner since April 2010. She was a Los Angeles lawyer specializing in business litigation before joining the commission.

The FTC works to protect consumers from unfair business practices and maintain competition in the marketplace.

Ramirez would replace outgoing Chairman Jon Leibowitz, who handled high-profile, anti-trust cases against Intel Corp and Google Inc during his tenure.

Ramirez would not require Senate confirmation.

In her law career, Ramirez represented corporations like Mattel Inc and Northrop Grumman Corp.

(Reporting by Mark Felsenthal; Editng by Stacey Joyce)

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We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/

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Wednesday, February 27, 2013

Reuters: Politics: Analysis: Cuts unlikely to deliver promised U.S. budget savings

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Analysis: Cuts unlikely to deliver promised U.S. budget savings
Feb 28th 2013, 06:06

U.S. President Barack Obama and House Speaker John Boehner (R) attend the unveiling ceremony for the Rosa Parks statue in the U.S. Capitol in Washington February 27, 2013. REUTERS/Kevin Lamarque

U.S. President Barack Obama and House Speaker John Boehner (R) attend the unveiling ceremony for the Rosa Parks statue in the U.S. Capitol in Washington February 27, 2013.

Credit: Reuters/Kevin Lamarque

By Andy Sullivan

WASHINGTON | Thu Feb 28, 2013 1:06am EST

WASHINGTON (Reuters) - On paper, there's one thing to like about the ugly spending cuts due to kick in on Friday: $85 billion in budget savings at a time when Washington continues to bleed red ink.

In reality, the so-called "sequester" is likely to yield less than half that much in the short term.

In part, that has to do with the complex way the government handles its money. But it also reflects the probability that the spending cuts will hurt the economy, which in turn will lower tax revenue and drive up the costs of social safety-net programs like unemployment insurance.

On top of that, federal agencies - especially the Pentagon - will have to pay penalties to suppliers if the sequester forced them to cancel contracts.

Add it up, and the actual savings could be a lot less than budget hawks envision.

"There is a possibility that we'd save virtually nothing in outlays," said Steve Bell, a former Republican congressional aide now with the Bipartisan Policy Center, a Washington think tank.

Even a relatively small decline in spending would be magnified over the coming years as it would reduce debt-servicing costs.

But the sequester would do little to restrain federal debt over the long term because it fails to tackle health costs, which are projected to balloon as the population ages. If the sequester were not to take effect, federal debt would equal the size of the economy by 2031, according to the Bipartisan Policy Center.

With the sequester in place, it will hit that dubious milestone in 2033.

The sequester was not supposed to happen. Republicans and Democrats in 2011 set up the deep cuts to military and domestic spending as a worst-case scenario that would force them to reach tough decisions on taxes and spending in order to set U.S. finances on a sustainable course.

But they have been unable to reach an agreement. Absent a last-minute deal, spending cuts of about 13 percent for defense programs and 9 percent for domestic programs will kick in just before Friday night.

CRUNCHING THE NUMBERS

The $85 billion cut to budget authority amounts to about 2.4 percent of the $3.6 trillion the U.S. government is expected to spend in the fiscal year that ends on September 30.

The actual amount of savings is much less - $43 billion in the current fiscal year, according to the Congressional Budget Office. That's because federal agencies don't spend all of the money they are allocated in any given fiscal year. A $1 billion aircraft carrier, for example, may take years to build.

Even at that lower level, the effects are likely to ripple across the world's largest economy in a way that will work against deficit-reduction efforts.

The nonpartisan CBO estimates gross domestic product will grow by 1.4 percent this year, compared to 2.0 percent if the sequester was not in place. The Bipartisan Policy Center estimates the sequester will lead to 1 million lost jobs in 2013 and 2014.

Slower economic growth means the government will collect less tax revenue as businesses and workers earn less than they would otherwise - a fact that Federal Reserve Chairman Ben Bernanke highlighted in congressional testimony on Wednesday.

"Besides having adverse effects on jobs and incomes, a slower recovery would lead to less actual deficit reduction in the short run for any given set of fiscal actions," Bernanke told the House of Representatives Financial Services Committee.

The CBO estimated last year that a 0.1-percentage-point drop in GDP growth translates into $1 billion less in tax revenue. That would indicate the government will take in $6 billion less this year if the sequester takes hold.

The sequester could impact government revenue in other ways as well. The Internal Revenue Service has warned that it could be forced to scale back its enforcement, letting more tax cheats get away.

The government could lose more money to health-care fraud as well if the administrators of the Medicare and Medicaid health plans are forced to scale back their reward programs for whistle blowers.

Slower economic growth also forces the government to spend more on food stamps, unemployment aid and other social programs.

The budget impact of these "automatic stabilizers" - so called because they kick in without requiring new government action - can be dramatic. According to CBO, they added $367 billion to the deficit in the 2011 fiscal year, while they reduced the deficit by $44 billion in fiscal 2007, before the recession hit.

CBO projected last year that these social programs would widen budget deficits further because of the impact of the sequester and steep tax increases that were due to take effect on January 1.

Most of those tax hikes have been averted, but budget experts said the sequester will still drive up their costs.

"It seems pretty clear that some of the deficit reduction you achieve by allowing sequester to occur would be dissipated," said Joe Minarik, a former budget official under President Bill Clinton.

(Reporting by Andy Sullivan; Editing by Xavier Briand)

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Reuters: Politics: Analysis: In voting-rights case, liberal justices pitch to Kennedy

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Analysis: In voting-rights case, liberal justices pitch to Kennedy
Feb 28th 2013, 06:10

Supreme Court Justice Anthony Kennedy (C) leaves at the conclusion of the annual Red Mass held at the Cathedral of St. Matthew the Apostle in Washington, September 30, 2012. REUTERS/Benjamin Myers

Supreme Court Justice Anthony Kennedy (C) leaves at the conclusion of the annual Red Mass held at the Cathedral of St. Matthew the Apostle in Washington, September 30, 2012.

Credit: Reuters/Benjamin Myers

By Joan Biskupic

WASHINGTON | Thu Feb 28, 2013 1:10am EST

WASHINGTON (Reuters) - Barely a minute into a U.S. Supreme Court hearing, liberal justices began a strategic barrage of questions that came down to this: Why should a time-honored plank of the 1965 Voting Rights Act be invalidated in a case from Alabama with its history of racial discrimination?

What followed constituted a classic example of how justices can try to use oral arguments to dramatic effect and influence a swing vote justice. Key players were Elena Kagan and Sonia Sotomayor, appointees of President Barack Obama and the newest members of the bench. The likely target of their remarks: Anthony Kennedy, a conservative who is often the decisive fifth vote on racial dilemmas.

"Think about this state that you're representing," Elena Kagan told the lawyer arguing against the law on Wednesday. "It's about a quarter black, but Alabama has no black statewide elected officials."

Focusing on Shelby County, Alabama, the southern locale that brought the case, Sotomayor asked, "Why would we vote in favor of a county whose record is the epitome of what caused the passage of this law to start with?"

Those liberals were addressing lawyer Bert Rein, but their comments seemed aimed more at Kennedy, often the swing vote on the nine-member court. While appearing overall open to Shelby County's claims, Kennedy quickly picked up on their line of inquiry, asking Rein how a county with a record of bias would be "injured" by the 1965 provision that was intended to prevent discrimination.

One of the most closely watched disputes of the term, the case centers on the civil rights-era law that broadly prohibited poll taxes, literacy tests and other measures that prevented blacks from voting. In the 1960s, such laws existed throughout the country but were more prevalent in the South with its legacy of slavery. Specifically at issue is a provision - designed to be temporary and that Congress has continued to renew - that requires certain states, mainly in the South, to show that any proposed election-law change does not discriminate against African-American, Latino or other minority voters.

The Shelby County challengers say the kind of systematic obstruction that once warranted treating the South differently is over and the screening provision should be struck down.

Convincing Kennedy of lingering problems in Alabama may be liberals' best hope of stopping the conservative majority from invalidating what's known as Section 5 of the Voting Rights Act.

The Obama administration, backed by civil rights advocates, says the provision is still needed to deter voter discrimination. Kennedy's comments during the 75-minute session suggested he was sympathetic to Shelby County's claim that in modern times different states should not be treated differently. Yet the liberals' assertions clearly gave him some pause.

The onslaught, particularly from Sotomayor, the first Hispanic justice, and Kagan, known for asking piercing questions, served as a reminder of how the justices often use oral arguments to try to make their cases. These sessions, which let dueling attorneys present their claims at the lectern, give the justices their first chance to lay the groundwork for their ultimate discussion and vote on a case. The nine justices are due to meet in private on Friday to discuss the merits of the case. An opinion can take months to write, and the decision is not likely to be handed down until June.

LAW'S RELEVANCE ENDURES

Voting rights remain a prominent issue. During the 2012 presidential election campaign, judges nationwide heard challenges to new voter identification laws and redrawn voting districts. The most restrictive moves, including those from places covered by the screening provision in Section 5, ended up being blocked before the November elections.

In Shelby County over the years, Sotomayor asserted, Section 5 had prevented "240 discriminatory voting laws" from taking effect. In a 2008 incident, the city of Calera in Shelby County put in place a redistricting plan that led the one African American on the city council to lose his seat. After the Justice Department forced Calera to redraw the map, the council member regained his seat.

Rein did not challenge Sotomayor's numbers, but he said black-voter registration and turnout in Alabama were "very high." He said evidence on the ground was irrelevant when officials are lodging a broad-based challenge to a law. His main argument was that the criteria by which states fall under Section 5 are outdated. The formula can be traced to electoral practices in the late 1960s and ‘70s. The nine fully covered states are Alabama, Alaska, Arizona, Georgia, Louisiana, Mississippi, South Carolina, Texas and Virginia.

U.S. Solicitor General Donald Verrilli argued that Congress compiled a sufficient record to demonstrate that the decades-old formula continues to target the places with the most serious problems of voting discrimination.

Much of the give-and-take on Wednesday echoed arguments in a 2009 challenge to Section 5. In that case from Texas, the five most conservative justices, including Kennedy, voiced doubts about whether Congress had valid grounds to continue singling out the South. Both times Kennedy questioned whether a separate provision of the Voting Rights Act, known as Section 2 and covering intentional acts of discrimination, did not sufficiently protect minorities. Four years ago, the court ended up ruling narrowly and avoiding the larger question about the scope of Congress' power to enforce voting rights.

A marked difference in Wednesday's dynamic stemmed from the additions of Sotomayor and Kagan, who succeeded Justices David Souter and John Paul Stevens, respectively, in 2009 and 2010, and who are more forceful at oral arguments.

Kennedy signaled he wants to make sure that states are able to address their own problems without Washington's intervention.

"If Alabama wants to have monuments to the heroes of the civil rights movement," he asked Verrilli, "if it wants to acknowledge the wrongs of its past, is it better off doing that independent sovereign or ... under the trusteeship of the United States government?"

Verrilli said Congress found that many places because of deep-seated discrimination still needed oversight. Said Verrilli: "Of fundamental importance here is that that history remains relevant."

(Reporting by Joan Biskupic; Editing by Howard Goller and Tim Dobbyn)

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Reuters: Politics: Washington state governor worried budget cuts will hit nuke cleanup

Reuters: Politics
Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com
Washington state governor worried budget cuts will hit nuke cleanup
Feb 28th 2013, 06:52

By Eric M. Johnson

SEATTLE | Thu Feb 28, 2013 1:52am EST

SEATTLE (Reuters) - Washington state Governor Jay Inslee on Wednesday warned billions of dollars in automatic spending cuts could hamper the U.S. government's ability to clean up the Hanford Nuclear Reservation site in his state, where six underground tanks were last week revealed to be leaking.

Inslee, a Democrat who took office last month, said the six single-shell tanks at the decommissioned nuclear plant near the Columbia River in southern Washington state could leak about 1,000 gallons (3,785 liters) of radioactive sludge annually.

That is in line with the latest U.S. Department of Energy (DoE) estimate released this week, which said the six tanks were leaking at a rate of less than 3 gallons a day.

"These tanks, we were told by the federal government, were stabilized years ago. We know that is not the case," Inslee told reporters in Washington state capital Olympia. "The federal government has a legally binding obligation to both remove this material and to make sure we curb this leakage."

The Department of Energy did not immediately return calls seeking comment but has previously said the government is committed to cleaning up the site.

The 586-square-mile nuclear site was established near the town of Hanford in 1943 as part of the Manhattan Project, the U.S. government program that developed the first atomic bombs.

Weapons production at the site resulted in more than 43 million cubic yards of radioactive waste and 130 million cubic yards of contaminated soil and debris, according to the U.S. Environmental Protection Agency (EPA).

Oversight of cleaning up Hanford is shared between Washington Department of Ecology, the EPA and the Department of Energy, but the money behind it almost entirely federal.

Inslee voiced concerns that $85 billion in automatic government spending cuts set to take effect on March 1 - known as "sequestration" - could hurt a decades-long cleanup effort that is projected to ultimately cost the federal government some $114.8 billion before the end of this century.

"Areas like Hanford, the economy is so dependent on federal spending. This is a disproportionate impact on these local economies," Inslee said.

Inslee, who is to visit the site next week according to one aide, said he was initially informed of one leaking tank two weeks ago by outgoing U.S. Energy Secretary Steven Chu, and only informed of the other five on Friday.

His decision to make the leaks public knowledge came at an uncertain time for the future of the Hanford cleanup, as Chu's successor as energy secretary is unknown and across the board budget cuts loom. The newly elected governor appears intent on taking a firm stance on one of the state's most thorny issues early in his administration.

"We have been the unpleasant home of millions of gallons of radioactive waste for decades now," Inslee said on Wednesday. "We hold the moral high ground on this, and we ought to be insistent and we will be."

(Reporting by Eric M. Johnson, writing by Bill Rigby; Editing by Lisa Shumaker)

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Reuters: Politics: Energy policy shifting as abundance replaces scarcity: Obama adviser

Reuters: Politics
Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com
Energy policy shifting as abundance replaces scarcity: Obama adviser
Feb 28th 2013, 03:39

A fracking operation is seen outside Williston, North Dakota, October 19, 2012. REUTERS/Jim Urquhart

A fracking operation is seen outside Williston, North Dakota, October 19, 2012.

Credit: Reuters/Jim Urquhart

By Roberta Rampton

WASHINGTON | Wed Feb 27, 2013 10:39pm EST

WASHINGTON (Reuters) - As U.S. oil and natural gas production booms, the Obama administration's energy policy has been "fluid" by necessity to adapt to the huge economic opportunities and climate challenges posed by growth, the top White House energy and climate adviser said on Wednesday.

In a speech to a room packed with energy analysts and lobbyists, Obama adviser Heather Zichal acknowledged that U.S. energy policy "might not look perfectly pretty from the outside" as it evolves to shifting supply-and-demand scenarios.

"It is a little bit fluid, but the landscape is changing," Zichal said at the Center for Strategic and International Studies, a Washington think-tank.

The White House wants to ensure oil and gas production is done as safety as possible, while investing in research and development of renewable forms of energy and addressing climate change, she said.

"I think that those goals will really help this administration deliver on an energy policy that makes a lot of sense," Zichal said.

"Energy is the common thread that links these three issues: our economy, our security and our climate," she said.

SHALE REVOLUTION

Hydraulic fracturing, or "fracking," has blasted massive new supplies of oil and natural gas from shale rock deep beneath the earth. After decades of policies built around being dependent on imports of foreign oil, lawmakers and the administration are grappling with whether and how to allow more exports.

The United States could surpass Saudi Arabia as the world's top oil producer by 2017, and within years could become a net exporter of natural gas.

Zichal noted the administration is finalizing new rules for disclosing chemicals used in fracking on public lands, and tougher standards for fracking wells and wastewater.

"We're not glossing over the challenges of natural gas development, but we're also not ignoring the opportunity natural gas presents for jobs and for the climate," she said.

The White House recognizes the impact oil and natural gas production has had on the economy, creating jobs and bringing manufacturing operations from companies like Dow Chemical Co and Ford Motor Co back from overseas, Zichal said.

She did not shed new light on how the administration will rule on permitting exports to more countries, decisions expected sometime this year. Zichal repeated that the White House is "not opposed to the notion of exports" but wants to ensure they don't "undermine" American consumers.

Zichal said she is spending "a lot of time talking to the rail industry" about infrastructure needs to move a glut of oil from the U.S. Midwest to refineries on the coast, another outcome of the sudden bounty of oil supplies.

But she shied away from discussing White House thinking on the Keystone XL pipeline, a project designed to ship oil from Canada and North Dakota to Gulf refineries.

Zichal said the decision-making process is in the hands of the State Department. The project has been stalled for years pending a decision by the administration.

(Reporting by Roberta Rampton; Editing by Lisa Shumaker)

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Reuters: Politics: Arkansas House overrides veto of late-term abortion ban

Reuters: Politics
Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com
Arkansas House overrides veto of late-term abortion ban
Feb 28th 2013, 02:32

By Suzi Parker

LITTLE ROCK, Ark | Wed Feb 27, 2013 9:32pm EST

LITTLE ROCK, Ark (Reuters) - The Republican-controlled Arkansas House of Representatives on Wednesday overrode a veto by Democratic Governor Mike Beebe of a bill to ban most late-term abortions in the state at 20 weeks into pregnancy.

The House voted 53-28 to override the veto, and the Republican-dominated state Senate was expected to vote on Thursday to override the veto as well. If that happens, Arkansas would join seven other U.S. states that restrict or ban abortions after the 20-week mark.

Arkansas lawmakers are also considering banning most abortions at about 12 weeks of pregnancy, once a fetal heartbeat can be detected by a standard ultrasound. Opponents of that bill say it would be the most stringent restriction on abortion in the country if it becomes law.

Beebe said he vetoed the bill because he felt it contradicted the Supreme Court's Roe v. Wade decision and it would be costly to defend the law from legal challenges.

"We made the best case we could in our veto letter and explained the legal problems with the law and what that could cost our people," Beebe spokesman Matt DeCample said. "The final say, however, remains with the legislature."

In Arkansas, lawmakers can override a gubernatorial veto with a simple majority vote.

The measure, which had been approved by an 80-10 vote in the state House and by a 25-7 vote in the state Senate, would provide exceptions only in cases of rape, incest or to save a mother's life. The bill does not include an exemption for any lethal fetal disorders.

Republican state Representative Andy Mayberry, the bill's primary sponsor, said he was pleased with the House's vote.

"It is a good bill and it saves babies' lives, and I can't wait for it to become law," Mayberry said. He added that he believes the bill is constitutional and that it was modeled after a Nebraska law that has not been challenged in court.

Abortion rights advocates called the legislation "dangerous."

"It's disheartening that our lawmakers are knowingly passing an unconstitutional abortion ban for the sake of politics," said Jill June, president and chief executive of Planned Parenthood of the Heartland.

Similar laws restricting abortions after 20 weeks in Arizona and Georgia are facing legal challenges. Late-term abortions remain relatively rare.

Most of the recent state laws banning most abortions after 20 weeks are based on hotly debated medical research suggesting that a fetus feels pain starting at 20 weeks of gestation.

A 2012 poll by the University of Arkansas showed that 41 percent of Arkansans wanted stricter abortion laws, 41 percent wanted no change to current laws and 10 percent wanted looser restrictions, said Janine Parry, director of the poll.

(Editing by Corrie MacLaggan, Cynthia Johnston and Lisa Shumaker)

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