When Senate Majority Leader Harry Reid, D-NV, tries to take up the House-passed "Cash for Clunkers" bill next week, he will hit a series of bipartisan road blocks.

Fox has learned that Sen. John McCain, R-AZ, will oppose any move to take up the House bill.  Around here, we call that a filibuster. 

McCain told Fox earlier today, "I not only wouldn't vote for the extra two billion, I was opposed to the initial billion. "

McCain, the 2008 GOP presidential nominee who ran as a deficit hawk, said, "Within a few weeks we will see that this process was abused by speculators and people who took advantage of what is basically a huge government subsidy of corporations that they already own. "I can't imagine that any taxpayer of America would have thought that the TARP, the financial recovery money, would be used now to subsidize the sale of automobiles in America."

This move by McCain has the potential to tie the Senate into procedural knots, just as Reid is planning to take up the nomination of Sonia Sotomayor to be the next justice on the Supreme Court.  This debate, alone, is expected to consumer three days, as the Senate heads into the monthlong August recess after next Friday.

Fox had thought earlier today that Sen. Jim DeMint, R-SC, would block the clunkers bill, for sure, but a spokesman says DeMint is looking at options and will fight it if there's a shot at stopping it.

But it won't be that easy for Reid.  Not only will he have to contend with McCain now, but he will also have to quell the concerns of some members of his own party.

Sen. Dianne Feinstein, D-CA, back in January, introduced her own "Cash for Clunkers" bill, an alternative that required more fuel efficient trade-in's than would later be approved by Congress -- and was extended today by the House.

Feinstein was joined by Sens. Susan Collins, R-ME, and Chuck Schumer, D-NY.

After the President pushed for a clunkers bill earlier this year, though, House Democrats hastily crafted a bill that was much friendlier to the beleagured American auto industry, particularly those who sell trucks. And after today's vote in the House, the plan gets $2 billion more to continue.

Together with Collins, Feinstein released the following ominous statement last night, "We will not support any bill that does not meet these goals. We will insist than any extension of the program requires that the minimum fuel economy improvement for newly purchased vehicles be at least two miles per gallon higher than it is under the enacted Clunkers program. It is also important to include lower-income consumers who are disadvantaged under the current program. So, we would also include a voucher for the purchase of fuel efficient used vehicles."

 Indeed, Feinstein and Collins relented under pressure to pass a clunkers bill earlier this year after receiving what Feinstein's spokesman calls "absolute assurances" from Reid that any extension would be based on the Feinstein-Collins-Schumer bill.

But that's not the end of Reid's woes. Now this in a Twitter posting from Sen. Claire McCaskill, D-MO, who was very wary of the government bailouts that passed earlier this year, though she supported them.  McCaskill, an active tweeter, today said, "We simply cannot afford any more taxpayr $ to extend cash for clunkers. Idea was to prime the pump, not subsidize auto purchases forever."

McCaskill echoed McCain, who said, "It's really an incredible process that we've gone through where recovery money that is supposed to be used in order to keep people in their homes and help the economy recovery. We're now again bailing out the automobile corporations, two of which we own.  It's remarkable."

I don’t know if House Speaker Nancy Pelosi (D-CA) is an audiophile. But I do know the speaker got an upgrade this week.

She went from mono to stereo.

For days, Pelosi listened in mono as conservative, “Blue Dog” House Democrats (fiscally-conservative lawmakers who mostly represent Republican and rural areas) carped about the cost of the major health care reform package she hopes to advance through the House soon.

On Wednesday, Rep. Mike Ross (D-AR) announced that he and three other Blue Dogs carved a deal to slash the cost of the legislation, protect small businesses and curb the government’s potential to run many health insurance plans. The agreement seemingly untangled a Gordian knot that bound the Energy and Commerce Committee from writing its version of a health reform bill.

And that’s when Pelosi’s new sound system arrived. As soon as Ross announced the pact, the most-liberal members of the House Democratic Caucus upbraided the speaker for caving to the conservative Blue Dog demands.

Keep Reading ...

It must be almost Friday when humor like this creeps in.

Earlier today, Sen. Majority Leader Harry Reid, D-NV, pointed the finger of blame at the press for setting an arbitrary deadline on the health care compromise talks (unbeknownst to the assembled 4th estate), one that is very likely to go unmet.

Ever so helpfully, a memo pops into the Inbox from the spokesman-cum-comedian to Sen. GOP Leader Mitch McConnell, R-KY, in defense of  the media (GOP'ers don't do this often, so listen up!).

I won't even paraphrase. One can hardly do that with Don Stewart, aka: "Stew".  

Here it is:

To: The Fourth Estate

From: STEW

RE: Slanderous attacks on the media*

I’m told that at a media availability today with Majority Leader Harry Reid (D-Nev.), Majority Whip Dick Durbin (D-Ill.), Democratic Conference Vice Chairman Charles Schumer (D-N.Y.) and Conference Secretary Patty Murray (D-Wash.), you were falsely accused of creating an arbitrary August deadline for finishing work on a health care bill.

One senior Democrat apparently told the assembled media: “That is a deadline that you created.”

This is an outrage, and I won’t put up with it! This smear of your sterling reputations simply cannot stand. Don’t take this sitting down. Stewart and Associates has compiled the following evidence to better help you defend yourselves against such hateful rhetoric:

The Administration

PRESIDENT OBAMA: “This Window Between Now And The August Recess, I Think, Is Going To Be The Make-Or-Break Period.” “This issue, health care reform, is not a luxury. … So we can't afford to put this off. And the dedicated public servants who are gathered here today understand that and they are ready to get going. And this window between now and the August recess, I think, is going to be the make-or-break period. This is the time where we've got to get this done.” (President Obama, Press Conference, 6/2/09)

·         OBAMA: “I Really Want To Get It Done By The August Recess.” Q: “Is it a pretty much a do or die by the August recess?” OBAMA: “I never believe anything is a do or die. But I really want to get it done by the August recess.” (CNN’s “State Of The Union,” 7/12/019)

·         OBAMA: “I’ve Told Harry Reid And Nancy Pelosi, You Know, That It Is Critical That We See Serious Forward Motion Before People Leave.” JOHN AMATO, Crooks And Liars Blogger: “… will you then [Congress] make them give us a bill before the August recess?” PRESIDENT OBAMA:“We are working as hard as we can and I've told Harry Reid and Nancy Pelosi, you know, that it is critical that we see serious forward motion before people leave. Alright?” (“President Obama’s Conference Call With Liberal Bloggers,” Crooks and Liars, 7/20/09)

VICE PRESIDENT BIDEN: “We Must And We Will Enact Reform By The End Of August, And We Can't Wait. I know that the leaders that are up here know that. The president knows that. My colleagues who I just spoke to know that, and the entire Congress knows it.” (VP Biden, Remarks, 7/8/09)

Democrats In The Senate

SEN. HARRY REID (D-NV): “Before We Leave Here … We're Going To Complete The Legislation We Have Dealing With Health Care.” “The question is, do I think the session will be extended in the August recess? We're going to complete -- before we leave here, we're going to do our very best to have a good strong run on DOD. We're going to complete the legislation we have dealing with health care, and we're going to confirm Sonia Sotomayor.” (Sen. Reid, Press Conference, 7/14/09)

·         REID: “We must keep our eye on the prize. The prize is health care reform. My desire is to get it done this work period, and I'm going to continue pushing to see everything -- to do everything I can to get it done this work period.” (Sen. Reid, Press Conference, 7/21/09)

SEN. CHUCK SCHUMER (D-NY): “We Expect The House And Senate To Have Passed Bills [By August], Yes.” SCHUMER: “Well, we don't expect it to be signed into law by the August recess.” Q: “Understood, but an actual...”  SCHUMER: “But we expect the House and Senate to have passed bills, yes.” Q: “You think it's going to happen.” SCHUMER: “I do.” (NBC’s “Meet The Press,” 7/12/09)

Democrats In The House Of Representatives

REP. NANCY PELOSI (D-CA): “We’re Still On Schedule … We Have Plans To Vote For This Legislation Before We Leave For The August Recess.” (“Obama Health Reform: ‘Don’t Bet Against Us,’” The Hill, 7/13/09)

REP. STENY HOYER (D-MD): “We're Going To Pass Significant Reform … Before The August Recess In The House Of Representatives.” Q: “Health care reform -- Congressman Hoyer, will the House pass a bill before the August recess? And what are you going to do about the two biggest problems, which are -- one, increasing coverage, increasing coverage to all of the uninsured without spending another trillion dollars?” HOYER: “Well, first of all, the American people understand that the health care system in this country is in real trouble. They like what they have, about 75 percent of them, but about 87 percent of them think we need significant reform. And the answer to your question is yes, we're going to pass significant reform.” Q: “Before the August recess?” HOYER: “Before the August recess in the House of Representatives, because we need to bring costs down.” (Fox News’ “Fox News Sunday,” 7/5/09)

* NOTE: The materials provided above are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Reading this email or using the information provided therein do not create an attorney-client relationship between Stewart & Associates and the user. The opinions expressed may not reflect the opinions of, well, anyone. So lighten up.

It's never a sign of progress when politicians point the finger of blame at the media, and yet so it went today as it became clear that senators would be leaving for the monthlong August recess without a bipartisan compromise bill to promote to their constituents.

Senate Majority Leader Harry Reid, D-NV, who said recently that the Finance Committee would produce a bill by the August recess now says that the MEDIA created that deadline.

"I think you folks have created the deadlines. We haven't," Reid said at a press conference with doctors' groups pushing for reform now.

This as Republican negotiators peel away from the deadline, with one GOP senator proclaiming that the compromise draft in Finance is a "train wreck" and that he sees no way that the recess deadline can be met.

Reid, instead, chose to highlight yet another deadline (I know of no member of the media setting this one...but we'll see), one set by President Obama, that a bill would be complete by the end of the year.

Despite the pesky fourth estate setting deadlines, Reid said he's "still cautiously optimistic we can get a (Finance Committee) bill done by recess."

Reid blamed Republican leaders in the House and Senate for"harming the process," with Majority Whip Dick Durbin, D-IL, going even further, saying those GOPers actually don't want any reform. Their philosophy, according to Durbin, "Let's all light up, drink up, and live it up!"

Sen. Chuck Schumer, D-NY, a member of the Finance Committee though not a member of the smaller, bipartisan negotiating group, took a more measured approach. Seeming to know the recess would come with no compromise, Schumer said, "No one thought this would be easy. Snap your fingers, and mm, mm, mm, get a bill done."

Still, all is not lost, as members leave with no bipartisan product to tout on their month-long recess. 

Durbin told reporters after the event, "We know concepts and aspects of the (Finance Committee" bill," so he says, Democrats will hold events over the month of August to highlight them. No bill, no problem. One thing Durbin said he would like to highlight, "preventative care." When asked if he would highlight nonprofit cooperatives, something known to be part of the compromise product - and an alternative to a government-run "public option," Durbin would only say, "We will talk about alternatiaves to private insurance."

Republican negotiators remain concerned that they will ultimately keep a seat at the table as Democrats attempt to meld any product that might come out of the House and Senate, and Reid seemed to offer some assurancese that they would, though not in so many words.

"I'm pretty good at arithmetic. I can count to 60," Reid said, referring to the number of votes needed in the Senate to overcome any filibuster. Reid is known to be seeking the support of at least two Republicans to cover the continued absense of Democrats Ted Kennedy of Massachusetts and Robert Byrd of West Virginia, b0th who have been out with illnesses and might not be returning soon, though Byrd is feeling better and easing back into his job, according to his staff.

It's hard to imagine how Senate Finance Cmte negotiators can find a deal before the August recess, particularly since it seems two key negotiators are pushing back against meeting what they say is another arbitrary deadline.

After a morning health care ''state of play'' meeting in House GOP Whip Eric Cantor's office, a source tells Fox that those two senators, Chuck Grassley, R-IA, and Mike Enzi, R-WY, shot out of the office, with Grassley saying nothing - but Enzi  firing an ominous sign, calling the compromise bill a "train wreck" and "not ready for prime time"

 Enzi then cast serious doubt on the timeline, something he has done in recent days, saying, "I don't know anyway how it could be ready today or next week."

Grassley staff confirm that the senator feels there is no way to complete a product this week that can be ready for a full committee markup by next week.

A GOP source tells my colleague, senior House producer Chad Pergram, of the meeting, "It was a very positive, upbeat meeting talking about how we can get to a bipartisan plan that is focused on rejecting the status quo but focused on common sense principles to lower healthcare costs and increase access. It was cordial.  Grassley and Enzi were clear and emphatic and were well received, everyone applauded at the end for their tough stance on getting a good bipartisan plan."

So --- looks like Senate Majority Leader Harry Reid, D-NV, will miss another deadline.  First, he and the White House said they would get a bill off the Senate floor by the recess that starts at the end of next week, then Reid said he would get a bill out of the Finance Committee by recess.

Seems everyone is educating someone these days about health care somewhere. 

Over on the House side, Speaker Nancy Pelosi, D-CA, held a long meeting on health care last night to educate her members.  Taking a page from that playbook, Senate Majority Leader Harry Reid, D-NV, announced today that he'll have his own educational meeting for his members next week.  Staff says there will be a "special Caucus" on Wednesday to talk specifics.

Judging by the poll numbers, the sales job on health care needs some help. Not only do a vast majority of Americans appear to be happy with their own health care plan, but they also remain deeply skeptical that Washington has the answers on reform.  Still -- polls also indicate that the door is not closed on these efforts. Americans also remain open to change.

It is, as yet, unclear what Reid will use in efforts to educate his members. The Finance Cmte product might be ready,  but Sen. John Kerry D-MA,  a cmte member, seemed to call that into doubt today, saying he isn't sure the cmte could get to markup by the end of next week (when recess starts).  Disagreements remain on the content of the bill.

Reid had no doubts, though, telling reporters today, unequivocally,  that there will be a bill out of that committee before the August recess.

Republican Leader Mitch McConnell said today that he gets "daily briefings" on the status of Finance talks, but he would answer no specifics and had nothing to say on whether or not there is anything he could embrace.  Sen. Jon Kyl of Arizona, #2 GOP'er in leadership and a member of the Finance Cmte, said he gets a weekly briefing every Wednesday from top cmte GOP'er Chuck Grassley, R-IA, but Kyl had nothing to say, either.

The Senate's two GOP docs are working, for their part, to educate the public. They are hosting"The Senate Doctors Show" ---  Tom Coburn (OB-GYN) of Oklahoma and John Barrasso (orthopedic surgeon) of Wyoming.  You can see it here: http://republican.senate.gov/public/?CFID=10040967&CFTOKEN=48164589

The senators take questions submitted via e-mail (doctors@src.senate.gov), YouTube, Twitter, and Facebook from concerned citizens, like, "Cant the problems with the existing system be solved without the government taking over?"     Yes, most (if not all) of the questions appear to be rather friendly to Republicans, but GOP aides involved with the show insist that anyone can submit a question.

And the 'Doc show' is headed on the road over the August recess, Fox has learned. 

But that's not the end of education efforts.

On a day when President Obama held his own tele-townhall, Republicans announced that they have talked to more than 22 million Americans about health care concerns via their own tele-townhalls.  Sen. Roger Wicker, R-MS, will be holding one tonight at 8pm ET for some 70,000 households along the Mississippi Gulf Coast, according to spokesman Jahan Wilcox.

And lookout -- recess will see a flurry of in-person townhall meetings from both sides.

Democrats have a decided advantage, of course, with a popular Dem in the White House with a giant bully pulpit, but Dem leadership aides also tell Fox that their members will be holding their own events, as well, across the country.  

Republicans appear to be preparing to match that (or they'll try).  There are local townhalls planned, and some of them will have a more national flavor, calling in members of leadership, like GOP Leader Mitch McConnell, R-KY, and other prominent Republicans.  

What normally would be a quiet month (August) is shaping up to be anything but that.  And no doubt, all of this contact with constituents has a very good chance of dramatically reshaping the health care reform debate once members return in September.

Mea culpa.

Though Finance Cmte Chairman Max Baucus, D-MT, indicated last night that the tax on elective surgery like plastic surgery and hair restortation, suggested as a possible way to pay for health are reform, came from OMB's Peter Orszag, White House aides say not true.

OMB spokesman Ken Baer and White House Deputy Press Secretary Reid Cherlin tell Fox this idea actually came from a Treasury Dept official.

Either way, as I reported last night, it appears to be very much off the table. Most members of the Finance Cmte had not even heard of the idea.

Still, the proposal underlines the difficulty negotiators are having in coming up with a way to pay for $1 trillion in health care reform.

All eyes continue to be on the negotiators (Baucus, Conrad, Bingaman; Grassley, Enzi, Snowe) as they try to find a compromise before the August recess. The goal is to have a bill unveiled this week with cmte consideration next week.  That was the subject of a White House meeting Friday between Baucus, President Obama, and Senate Majority Leader Harry Reid.

Better to have the bill survive recess (though, no doubt, critics will attempt to shoot enough holes in it to leave it near death) than to have members take the heat from constituents with no details of a compromise bill to offer.

Senate Democrats are expected to talk health care today at their weekly party policy lunch.

This morning - Sup Co nominee Sonia Sotomayor is expected to make it over her first hurdle toward confirmation -- a vote out of the Senate Jud Cmte. (Technically, in Senate parlance, we say, "Sotomayor has been favorably reported out of committee.")

The vote is a fait accomplit, as all Republican cmte members but one, Tom Coburn, have told us how they will vote, and "Dr No" is not expected to become "Dr Yes" today. Sources tell Fox, he will join all other Rs on the cmte, except Sen Lindsey Graham, in opposing the nomination.

Graham is expected to be the lone "yes" vote on the GOP side. That means the cmte vote should be 13-6.

But Graham won't be alone for long. When the nomination is brought to the full Senate floor NEXT WEEK, Graham, in our tallying thus far, will be joined by at least four of his GOP colleagues: Lugar, Martinez, Snowe, and Collins.

So far, 17 Senate Republicans, including Leader Mitch McConnell, R-KY, have announced their opposition, but McConnell also made clear that there would be no filibuster against Sotomayor.

That puts the judge on track to meet President Obama's deadline of having her in place by September when the Court decides which cases it will hear.

Sotomayor replaces retiring Justice David Souter.

As Senate Finance Committee negotiators continued to slog along at a seemingly glacial pace, a few things became clear on Monday: there will be no employer mandate and there will be no tax on your Botox.

What top committee Republican Chuck Grassley of Iowa has insisted on for weeks appears to be a done deal: no employer mandate on coverage.

The committee will get at this through a back door penalty system known as "free rider." No longer will employees be able to get federal government subsidies, like Medicaid, without their employer pitching in some cash (no more 'free rides' for employers). They will help bear the burden of an ever-expanding, always cash-strapped system.

Sen Olympia Snowe, R-ME,a key negotiator, confirmed all of this tonight, though Committee Chairman Max Baucus, D-MT, continued the mantra- "nothing is agreed to until everything is agreed to."

There would be a cap on any amount an employer would have to pay out ultimately, this according to committee sources.

Of course, the chairman might still be stinging from a bit of a tongue-lashing by his fellow committee Dems last week as they voiced their fear that he might give away the farm to Republicans. (Of course, this is always the fear whenever Baucus is in talks with Grassley and vice versa. Heartburn all around.)

Any so-called "deal" among negotiators is not a deal, though. It would have to satisfy Democrats on the committee. Baucus reiterated as much after his meeting with Democrats, promising to bring his colleagues any compromise product first.

On the creative ways the committee is trying to devise to pay for their $1 trillion bill, Finance Cmte Chairman Max Baucus, D-MT, said taxing elective surgery, like pastic surgery and hair restoration, is not likely to fly. Baucus confirmed that the idea did come from the White House, but he indicated that the proposal has not been under serious consideration.

Snowe said tonight that she and her fellow negotiators have "mountains to climb" still.

Of course, the pressure is on for Finance to produce a compromise, as both houses of Congress are roiled by efforts.

Baucus did get a bump up, though. The Chamber of Commerce signaled support for his compromise talks in a letter to both he and Grassley today.

A tax on plastic surgery, call it a "Botax", is on the table, as senators desperately try to come up with creative ways to fund $1 trillion in health care reforms.

One senior Senate Democratic aide tells Fox that the tax came from OMB's Peter Orszag, as was first reported by Congress Daily.

Senate Finance Committee Chairman Max Baucus, D-MT, leading health care talks, told reporters recently that Orszag had proposed some "interesting" and "creative" ideas but that Baucus was not sure if they would work.

According to a senior Democratic Finance Committee source, the tax would be "dialable," adjusted to meet the amount of revenue needed in the federal coffers.

Still, it does not appear to be under serious consideration, according to numerous committee sources.
Sen Kent Conrad, D-ND, a lead negotiator told reporters, "I've never heard one word about that in any of these negotiations."

Conrad did not rule the tax out, he only laughed and said he would need to hear the arguments both for an against the tax.

Likewise, Sen Olympia Snowe, R-ME, said she had not heard of it. When asked what other creative ways the committee might be considering, like the "Botax," Snowe said, "if you can call it that" of the new elective surgery tax.

Fox News has also learned from aides involved in the negotiations that there has been talk of a video game tax to discourage sedentary behavior.

It is not known how much revenue any of the new suggestions would bring in.