Congress is set to tackle the economy this week by considering President Barack Obama's choice to head the Treasury Department and by acting on legislation to spur economic growth.
The Senate could confirm Timothy Geithner as Treasury secretary as early as Monday, after delaying a vote because Geithner failed to pay some of his federal taxes earlier this decade. Geithner settled his delinquent taxes shortly before Obama nominated him, and senators from both parties have said they expect him to be confirmed. Geithner would oversee the financial industry bailout approved by Congress.
Why is filling a vacant Senate seat suddenly so difficult?
Barack Obama's victory in the presidential race left his Senate seat vacant and there were a host of qualified Illinois politicians eager to fill it. Gov. Rod Blagojevich had a plan to simplify the selection -- sell it to the highest bidder. Unfortunately, this didn't sit well with federal prosecutors.
Caroline Kennedy caught Washington watchers off guard early today by dropping her bid to replace Secretary of State Hillary Rodham Clinton as the new junior Senator from New York.
In a brief note to New York Gov. David A. Patterson, Kennedy withdrew from consideration for appointment to the post, citing "personal reasons." The note followed a phone call by Kennedy to the governor's office on Wednesday.Read More
Republican Sen. John Cornyn may hold up the nomination of Hillary Clinton to become secretary of state if his concerns about foreign donations to her husband's foundation are not resolved, a spokesman for the Texas senator said on Monday.
"Senator Cornyn is a strong proponent of complete transparency and has fought for as much throughout his time in office. He is keeping all of his options on the table," said his spokesman Kevin McLaughlin in an email reply to Reuters, when asked if Cornyn could block Clinton's nomination.
House Speaker Nancy Pelosi wants an investigation into whether the Bush administration broke the law when it fired a group of federal prosecutors.
She says that what she calls the politicizing of the Justice Department cannot go unreviewed.
House Democrats last week recommended a criminal investigation to see if administration officials broke the law in the name of national security. The report cited the interrogation of foreign detainees, warrantless wiretaps, retribution against critics, manipulation of intelligence and the fired prosecutors.
House Democrats' version of the $825 billion recession rescue package would end billions of dollars in tax breaks the Bush administration quietly gave to banks last fall.
Already almost exclusive beneficiaries of a $700 billion Wall Street bailout, banks are largely left out of the House stimulus package that President-elect Barack Obama wants passed quickly through Congress. Those getting financial bailout money wouldn't even be eligible for one of the main business tax breaks aimed at priming the economic pump.
Attorney General-nominee Eric Holder Jr. forcefully broke from the Bush administration's counterterrorism policies Thursday, declaring that waterboarding is torture and pledging to prosecute some Guantanamo Bay detainees in U.S. courts.
It was the latest signal that President-elect Barack Obama will chart a new course in combatting terrorism. As recently as last week, Vice President Dick Cheney defended waterboarding, a harsh interrogation tactic that simulates drowning, saying it provided valuable intelligence.
Roland Burris took his place as Barack Obama's successor in the Senate on Thursday, ending a standoff that embarrassed the president-elect and fellow Democrats who initially resisted the appointment by impeached Illinois Gov. Rod Blagojevich.
"I do," Burris said with a grin as Vice President Dick Cheney administered the oath of office to the former Illinois attorney general who takes Obama's place as the Senate's only black member.
With no daylight showing between congressional Democrats and the next administration's foreign policy team, Sen. Hillary Rodham Clinton is expected to be swiftly endorsed by a Senate panel as President-elect Barack Obama's new secretary of state.
Indications from both parties this week were that Clinton would win a near-unanimous vote Thursday in the Senate Foreign Relations Committee.
Sen. Hillary Rodham Clinton smoothly took on policy questions, from the acute to the arcane, in a gentle job interview to be the nation's top diplomat, but could not dispel tougher questions about whether her husband's charity work poses an ethical conflict.
Her confirmation as secretary of state is not in doubt, and she could be on the job as soon as President-elect Barack Obama's first full day in office. The Senate Foreign Relations Committee planned to vote on the selection Thursday.