IRS scandal takes center stage on Capitol Hill. What new comes out? … The White House is in damage-control mode – how they’re managing the three controversies … GOP tries to tie IRS to health care … Obama needs to fix IRS because credibility of government and his second-term agenda is at stake … From New York to L.A., two mayor’s races will be a focus next week – one because another scandal-ridden ex-congressman tries to make a comeback. … Bloomberg group goes after AZ Sen. Flake (R).

Charles Dharapak / AP

Ousted IRS chief Steve Miller arrives on Capitol Hill, Friday, May 17, 2013, to testify before the House Ways and Means Committee on the Internal Revenue Service (IRS) practice of targeting applicants for tax-exempt status based on political leanings.

*** And the venting begins: One thing is fairly certain: there will be fireworks today on Capitol Hill when ex-IRS Commissioner Steve Miller and Treasury Inspector General Russell George testify before the House Ways and Means Committee beginning at 9:00 am ET. But the question is what new information comes from the hearing? There will be plenty of bloviating, but it could also clarify what we don’t know, like: (1) The missing why? Was there political motivation on any level, and (2) What took so long for this to come out? Was this really simply a sloppy shortcut? It was clear in timeline that this was all discovered to be a problem early in 2012 and perhaps as far back as 2011, so what took so long for the IRS to admit it? Expect these to be among the most intriguing questions that get asked but dodged. And, of course, this is only the beginning of what’s going to be a busy season of IRS hearings.

*** The White House reboot: Damage-control mode continues for the White House. Today, it’s trying to stay the course and make that pivot back to jobs with another leg of the president’s Middle Class Jobs and Opportunity Tour. Today, the president heads to Baltimore, where he stops by an elementary school at 11:35 am ET, then makes remarks at 1:20 pm ET at Ellicott Dredges. At 2:15 pm ET, he’ll head to a community center that works with families on job training. They’ve been trying to make this pivot for a while. The first event last week in Austin was overshadowed by the Benghazi hearing. Today, it’ll be overshadowed by the IRS hearing. After sitting on its hands for a few days, the White House is now in overdrive when it comes to damage control. Not just announcing new actions on IRS and on diplomatic security, but it was hard to watch TV after 3 p.m. yesterday and not see a key White House political aide on the tube: Carney, Palmieri and Pfeiffer all blitzing the airwaves.

*** How the White House is trying to fix the three fronts: On Benghazi, the White House is pushing that it’s all political and the president will talk about security at embassies. That was the point he attempted to drive home yesterday. Of course, his pronouncement regarding diplomatic security begs the question, where was this response last week, last month, last year. Clearly, the White House wants to put the issue of funding diplomatic security (something that’s been cut) back in Congress lap. It was a fairly transparent rhetorical move by the White House yesterday. On the IRS, they’re trying to show they’re on top of it…now. Naming Daniel Werfel is putting someone there who seems to have a non-partisan resume. He worked for George W. Bush, for example. But he’s no household name. Werfel’s appointment won’t have the impact on the public psyche that a more high-profile nominee would have had. But he checks the boxes of competency, bipartisanship, and he can vet. On the AP, it’s striking how much Obama went out of his way to stand by Attorney General Eric Holder. There’s no wiggle room there, and it’s because the Holder issue has been personal to him. The president has always felt that Holder’s unpopularity on the hill was a proxy for the president himself. The president believes Republicans on the hill have used Holder as a punching bag, believing they can attack Holder in ways they can’t with Obama. That’s why Obama’s been more sympathetic to Holder -- even though many White House aides, past and present, believe Holder’s been very politically naïve in how he’s run the Justice Department and has made himself an easy target.

*** GOP tries to tie IRS scandal to health care: It’s been a tough week for the White House, perhaps the worst of Obama’s second term. And we know exactly where GOP’s headed to try and advance the story more broadly. They’re headed to health care. Two IRS officials are already exiting the IRS, and now a third person has become a target. NBC’s Lisa Myers confirms this story that Sarah Hall Ingram, who was in charge of the tax exempt office from 2009 to 2012, is now in charge of the IRS’s Affordable Care Act office. The blaring headline Republicans want out of this is the person involved in targeting the Tea Party at the IRS is now in charge of running health care (!!!). That’s not exactly the case, however, as the IRS has a relatively small role in implementing health care as compared to Health and Human Services, which is the agency setting up the exchanges to be rolled out this fall. But why let an inconvenient reality get in the way of a good political talking point.

*** Bigger picture – the IRS scandal is important because it’s all about the credibility of government: At the heart of this IRS scandal and why it matters is how important the credibility of government is to Obama second-term agenda. Democrats want to show government run correctly can make your life better; Republicans want to say government stands in the way. The IRS scandal cuts right to that argument and extends out to health care (as noted above) and immigration. The IRS, on a good day, isn’t well liked by the public. It’s feared. But if it’s proven to be inept or corrupt, it will only harm the public trust even more than Washington’s done for so long as it is. And it’ll be easy to sell a swing voter on the idea that while, say, immigration reform is a good idea, do you have confidence Washington can make it work? Ditto with health care? That’s why it is so important for Obama to be on top of the IRS from here on out and restore credibility to the agency. Whatever comes out on IRS, with reporters turning up every stone and Republicans picking at every piece of carcass, the White House and Treasury better be first or it will undermine even further credibility.

*** New York to L.A.: Two mayors races in the two biggest cities in the country will be big next week – one because there will be a result (in L.A.) and second because of Anthony Weiner. In Los Angeles, voters head to the polls Tuesday to pick between two Democrats to be the next mayor – Eric Garcetti and Wendy Greuel. Garcetti continues to be the slight favorite and Greuel appears to be running out of money. She had to loan herself $100,000. Meanwhile, Weiner might jump into the mayor’s race next week. WNBC reported spotting Weiner shooting a campaign-style video at his childhood home in Brooklyn. And Weiner’s entry will transform the race into a circus, at least next week, and who knows, maybe for the rest of the campaign. By the way, with Weiner’s wife as close to Hillary Clinton as anyone, how do the Clintons keep their distance from Weiner, or do they? Either way, nobody benefits more from Weiner’s entry than the headline writers at the Daily News and the Post.

*** Bloomberg gun group targets AZ senator: Mayors Against Illegal Guns is going up with an ad campaign hitting Arizona Sen. Jeff Flake (R), NBC’s Kasie Hunt reports. It features an Arizona couple, whose son was killed in the Aurora, CO, theatre shooting, who say Flake didn’t keep his word to them that he would vote in favor of tougher background checks. Republicans, though, believe that by voting for the Lindsey Graham (R-SC) alternative bill, they did vote for some background-check strengthening. The group has gone up against New Hampshire Republican Sen. Kelly Ayotte, and has also pledged – though notably they have not yet -- to go up against Democrats in Alaska, Arkansas, and North Dakota, despite Democrats urging them not to.

*** 2016 roundup – Going after Hillary: Republicans tried to pin Benghazi on Hillary Clinton (here, for example). Democrats see 2016 politics at play. Opponents are readying a scandal-filled movie about her life. She still leads by a lot in a New Hampshire poll. … Vice President Joe Biden appears to be continuing preparations for a run in 2016, but he not only trails Clinton by a lot in early polling, he also remains a punch line for late-night comics. … Rand Paul heads to New Hampshire Monday … Bobby Jindal was in New Hampshire over the weekend …  Marco Rubio accused the White House of creating a “culture of intimidation” on MSNBC’s The Daily Rundown, yet some conservatives are still hammering him for his pursuit of comprehensive immigration. … Chris Christie was showing Prince Harry around the Jersey Shore. He also went negative despite huge leads in his bid for reelection this year. … Maryland Gov. Martin O’Malley (D) signed one of the toughest gun laws in the country.

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The outgoing head of the IRS disputed Republicans’ suspicions that the tax-collecting agency’s targeting of conservatives was motivated by partisanship at the first congressional hearing on the scandal.

Steven Miller, the acting commissioner of the IRS who submitted his resignation from that role earlier this week, appeared on Friday to face lawmakers’ pointed questions about the revelations that IRS officials had inappropriately singled out conservative groups for extra scrutiny.

But he and J. Russell George, the IRS inspector general whose report unearthed the controversy that has dominated Washington this week, testified that there was no evidence of political motivations among IRS employees who targeted conservative advocacy groups applying for nonprofit status. They instead blamed incompetence.

“I do not believe that partisanship motivated the practices of the people described in the IG report,” Miller said. “I think that what happened here was that foolish mistakes were made by people who were trying to be efficient in their work.”

GOP lawmakers also repeatedly sought to ferret out any information as to whether Miller had talked with White House officials about the targeting of conservatives, or – more ominously – had shared confidential tax information with the administration. (The implication of that line of questioning involved last year’s presidential election, when Republican nominee Mitt Romney’s own tax practices became an issue in the election.)

To that end, George testified that he told the Treasury Department's general counsel and deputy secretary Neal Wolin of the investigation before the 2012 election.

In the week following the first revelations of the inspector general report, conservatives have seized upon the scandal to ding President Barack Obama, demanding criminal prosecutions of IRS officials, and accusing the president (as Sen. Marco Rubio, R-Fla., did Thursday) of a “culture of intimidation.” GOP members of the committee spent much of the hearing trying to advance that narrative

But Miller repeatedly – and, at times, tersely – disputed speculation that IRS officials were deliberately targeting ideological opponents of the Obama administration, and denied that he had misled Congress in previous testimony about the IRS’s actions. When asked sharply by Committee Chairman Dave Camp, R-Mich., how he would characterize his previous, inaccurate testimony to Congress, Miller shot back: "I always answer questions truthfully, Mr. Camp."

Miller, the ousted acting commissioner of the IRS, was the primary object of lawmakers’ scrutiny at Friday’s hearing, particularly Republicans who expressed incredulity and outrage at the IRS fiasco.

“Is this still America?” asked Rep. Kevin Brady, R-Texas, who said the IRS controversy were evidence of a government “drunk on power.”

Republicans came to the hearing armed with plenty of outrage and examples of Tea Party groups from their home districts running into red tape in their nonprofit applications, which they used to pummel Miller throughout the hearing. The outgoing commissioner parried their attacks by responding that he was not permitted to comment on specific cases.

Democrats spent the bulk of the committee’s hearing, though, warning their GOP colleagues against cultivating evidence of a scandal where there is none. Rep. Sander Levin, D-Mich., asked both Miller and George, the inspector general, whether they had unearthed any evidence of political motivation in IRS officials’ scrutiny of conservatives.

They replied identically: “We did not, sir.”

Those answers scarcely satisfied Republicans, who have sensed a major opportunity – combined with simultaneous controversies this week involving the Obama administration’s handling of last year’s terror attack in Benghazi, and the Department of Justice’s seizure of Associated Press journalists’ phone records – to play offense against the White House.

For their part, Democrats have largely tried to match Republicans in their outrage at the IRS controversy, led by the president himself. Obama said this week that he was “angry” at the IRS for its actions, and asked for Miller’s resignation. Obama named Daniel Werfel, who currently serves as controller of the Office of Management and Budget, as the new acting IRS commissioner on Thursday.

Jason Reed / Reuters

Outgoing acting IRS Commissioner Steven Miller listens at a House Ways and Means Committee hearing on the Internal Revenue Service targeting conservative groups on Capitol Hill, May 17, 2013.

The president has said he didn’t learn about the actions taken by the IRS to target conservative and Tea Party groups until details of the inspector general report leaked to the media last Friday.

But while the controversy will likely spur plenty of future hearings into the IRS wrongdoing, Friday’s testimony – for now – could help limit the political fallout to the IRS itself.

“As acting commissioner I want to apologize on behalf of the IRS for the mistakes that we made and the poor service that we provided,” Miller said in his opening statement. He said later in the hearing that he should ultimately be held accountable for IRS employees’ missteps, but denied that meant he was personally involved in directing political targeting.

Related stories:

Obama names acting IRS chief, denies knowledge of IRS report

This story was originally published on Fri May 17, 2013 7:43 AM EDT

President Barack Obama will appoint a White House budget officer to the be the new acting Internal Revenue Service commissioner, an announcement made following a fresh declaration from the president that he knew nothing about the inspector general’s report detailing improper IRS actions until it was leaked.

After announcing the resignation of acting IRS Director Steven Miller on Wednesday evening, the president emerged Thursday afternoon to answer questions from the press about actions taken by IRS employees to single out conservative and Tea Party advocacy groups for extra scrutiny in their applications for nonprofit status.

"I can assure you that I certainly did not know anything about the I.G. report before the I.G. report had been leaked ... through the press," said Obama. "Typically, the I.G. reports are not supposed to be widely distributed or shared. They tend to be, you know, a process that everybody's trying to protect the integrity of. But, what I'm absolutely certain of is that the actions that were described in that I.G. report are unacceptable."

The president declined to endorse appointing an independent counsel to investigate the controversy -- an idea that some Republicans have demanded. The criminal investigation initiated by the Justice Department, combined with the administration's efforts to cooperate with lawmakers in their investigations, Obama argued, should be sufficient.

"I think it's going to be sufficient for us to be working with Congress," he said.

Just hours after that event, the White House said that Daniel Werfel, current controller of the Office of Management and Budget, would be named acting IRS chief, effective May 22.

In a press release, Obama said, "The American people deserve to have the utmost confidence and trust in their government, and as we work to get to the bottom of what happened and restore confidence in the IRS, Danny has the experience and management ability necessary to lead the agency at this important time."

Later Thursday, NBC News confirmed that a second top Internal Revenue Service official has announced plans to leave the agency. An internal IRS memo says that Joseph Grant, commissioner of the agency's tax exempt and government entities division, will retire June 3.

Of the three controversies that dominated Washington this week, the IRS issue has proven the most politically noxious for Obama.

The White House has also been besieged by new questions about its response to last year's terrorist attack against a diplomatic installation in Benghazi, Libya, along with revelations that the Justice Department had monitored Associated Press journalists' phone records.

The IRS and AP cases have been particularly thorny politically for one of Obama's top allies in the cabinet, Attorney General Eric Holder, who on Wednesday faced grilling on Capitol Hill for his role in both controversies. Republicans renewed some of their longstanding demands that Holder resign his position, demands which the president rejected on Thursday.

"I have complete confidence in Eric Holder as attorney general," Obama said.

After weathering blistering criticism from Republicans, the administration has begun trying to craft its response to all three issues.

To that end, Obama on Thursday announced new measures meant to enhance security for U.S. diplomatic postings abroad as part of the administration's continued reaction to the Benghazi incident.

"I am intent on making sure we do everything we can to prevent another tragedy like this from happening again," Obama said at the White House.

His remarks come amid intensified efforts by Republican members of Congress to probe the Obama administration's reaction to the Sept. 11, 2012 attacks, which left four Americans dead, including U.S. ambassador Christopher Stevens.

The administration has sought to turn the narrative on that matter in its favor beginning Wednesday, when it released emails documenting how the administration crafted its first public responses to the attack.

Obama called on members of Congress in both parties to "come together" and work to authorize legislation to help fortify embassies and other diplomatic installations as a tribute to the deceased in Benghazi.

Jason Reed / Reuters

President Barack Obamaand Turkish Prime Minister Recep Tayyip Erdogan arrive for a joint news conference in the White House Rose Garden in Washington, May 16, 2013.

Still, the controversy involving the AP helped prompt the administration to renew its efforts to have Congress authorize a federal shield law that would protect journalists from having to disclose confidential details of their work in court.

"To the extent that this case has prompted renewed interest with respect to how do we strike that balance properly, I think that now's the time for us to revisit that legislation," Obama said. "I think that's a worthy conversation to have."

Whether any of Obama's actions will placate Republicans, who are eager to use these controversies to gain political traction and slow or halt the president's second-term agenda, remains to be seen.

Lawmakers in both parties plan a series of high-profile hearings, beginning on Friday, on each of the controversies. And Republicans in particular have been eager to make political hay of the administration's recent missteps.

Speaking before the president this morning on Capitol Hill, House Speaker John Boehner, R-Ohio, said the controversies were a mark of “remarkable arrogance” by the president and his administration, though Boehner said that the Republican-controlled House was still primarily focused on the business of legislating.

NBC's Peter Alexander and Kelly O'Donnell contributed to this report.

Related stories:

• First Thoughts: White House makes moves to stop the political bleeding
• Obama calls IRS flap 'inexcusable,' announces resignation of acting IRS chief

This story was originally published on Thu May 16, 2013 12:06 PM EDT

A bipartisan group of lawmakers on Thursday proposed major changes to military laws for sexual assault cases, backing a bill to prevent military commanders from handling sexual assault cases that involve their subordinates. 

"We believe enough is enough. It is time to change this system that has been held over since George Washington that is simply not working today for the men and women who are serving," said Sen. Kirsten Gillibrand, D-N.Y., a member of the Armed Services Committee who is spearheading the legislation.

"What does it say about us as a people, as a nation, as the foremost military in the world, when some of our servicemembers both men and women have more to fear from their fellow soldiers than from the enemy?" asked Sen. Susan Collins, R-Maine.

The bill would take serious sexual assault cases completely out of the military's chain of command if the potential sentence amounts to more than a year in prison -- the equivalent of a felony in a civilian court.

"When any single victim of sexual assault is forced to salute her attacker, clearly our system is broken," Gillibrand said.

The military has resisted such sweeping changes in the past, but a recent string of incidents has increased pressure on Defense Department leaders to change the policy. The top Air Force officer charged with preventing sexual assault was accused of attacking a woman in a Virginia parking lot, and a soldier at Fort Hood tasked with sexual assault prevention is under investigation for sexual abuse.

Collins and Gillibrand spoke at a press conference Thursday morning, where she was joined by an array of colleagues from both house of Congress and from both parties, including Collins, and Reps. Dan Benishek, R-Mich., and Krysten Sinema, D-Ariz.

Gillibrand's bill also requires that a decision about how a sexual assault case is handled -- whether it goes to trial and how the court-martial proceeds -- is made by someone who holds a rank equivalent to colonel.

It would also allow each military service's chief of staff to establish courts, empanel juries and pick judges to hear sexual assault cases, and write into law a proposal from Defense Secretary Chuck Hagel that prevents commanders from overturning sexual assault convictions or reducing guilty findings to lesser offenses.

Carolyn Kaster / AP

Senate subcommittee on Personnel Chair Sen. Kirsten Gillibrand, D-N.Y. addresses the third panel on Capitol Hill in Washington, Wednesday, March 13, 2013, during the subcommittee's hearing on sexual assault in the military.

The event was held in advance of a planned meeting at the White House on the issue. President Barack Obama was to meet with Hagel, Chairman of the Joint Chiefs of Staff General Martin Dempsey, the military service chiefs, military service secretaries, and the senior enlisted advisers.

Gillibrand and other lawmakers met earlier this month with top White House advisers -- the meeting was led by Valerie Jarrett, who is personally close to the president -- to discuss the problem.

This story was originally published on Thu May 16, 2013 11:25 AM EDT

Obama White House moves to stop the bleeding… Success on whether the controversies stay a one-week story rather than a months-long one depends on the follow-through, especially regarding the IRS controversy… But it also depends on whether the GOP overplays it hand… Classic Obama: White House takes days to find the right response… Don’t lose sight on Syria… House votes to repeal Obamacare… Sanford’s first day back… And new Quinnipiac poll: McAuliffe up slightly in Virginia.

*** Trying to stop the bleeding: After his most difficult stretch of days since winning re-election, President Obama on Wednesday tried to stop the bleeding with two different moves just more than an hour apart -- all in an effort to keep a bad week from turning into a bad month and perhaps ending any chances of a serious legislative agenda. First, at 5:00 pm ET, his White House released 100 pages of emails and documents related to the crafting of the talking points to describe the Sept. 11, 2012 attack in Benghazi. The emails revealed more agency politics (between CIA and the State Department) than electoral politics (as Republicans had accused). Second, a little after 6:00 pm ET, Obama delivered a statement announcing that Treasury Secretary Jack Lew had accepted the resignation of the acting IRS commissioner in the wake of the controversy that the tax agency had targeted conservative-sounding groups for additional scrutiny in their application for tax-exempt status. The president also announced that new safeguards would be put in place to prevent it from happening again, and he pledged to work with Congress to get it fixed. And today at noon ET, he holds a news conference -- with Turkish Prime Minister Erdogan -- where he’ll likely answer reporters’ questions about both actions. There was also an effort to stop the bleeding on a third front: The White House said it supports the re-introduction of a media-shield bill after the Justice Department’s seizure of AP phone records. (Of course, it’s the somewhat watered down version of the shield law that had originally passed the House in 2009 and died in the Senate when Dems had 60 votes.)  

Kevin Lamarque / Reuters

President Barack Obama delivers a statement from the East Room of the White House, May 15, 2013.

*** Success depends on the follow-through… : So will yesterday’s actions keep a bad week from turning into a bad month? The answer: It depends on the follow-through, especially as it relates to the IRS issue, which has always been the most problematic controversy for the White House because it’s the easiest one for the public to understand. The immediate challenge for the White House -- besides disciplining IRS employees who engaged in this targeting -- is to find a tough-guy replacement whom the public knows and trusts (a retired Republican, CEO, top cop, you get the idea) to take over the agency’s reins. Make no mistake, this IRS issue has united a Republican Party that had been fraying on topics like immigration, the budget and to a lesser extent guns. So the real test for the White House is to stick to the follow-through and not allow the Republican Party to own it. The more bipartisan the outrage is at the IRS (and assuming there is no connection to the administration in some meaningful way), the more the White House believes it can insulate itself politically on the issue. But if credibility cannot be restored at the IRS, it really does hamper the administration’s ability to implement health care and it certainly doesn’t help get Republicans on board with immigration reform. It’ll be QUITE easy for a Republican to argue: Obama can’t run the IRS, what makes you think he can run health care or secure the border? 

*** … And also whether the GOP overplays its hand: But there’s also a danger for Republicans: Do they overplay their hand when it comes to the IRS? Already, the Benghazi talking-point emails don’t reveal the political conspiracy that many Republicans and conservatives had openly theorized, and they also reveal that Susan Rice -- whose reputation was dragged through the mud -- was a relatively innocent victim (though no one likes to be exposed as someone who was simply following a set of talking points about which they had little input). What’s more, the Benghazi emails have all come down to State Department spokeswoman Victoria Nuland’s concerns. Were they simply about trying not to hinder the investigation into the Islamic extremists in the attack (as Democrats say)? Or were they about trying to clean the State Department’s hands (as Republicans allege)? By the way, as for how government works, this email release reveals something that many in Washington have known for years but the public is less familiar with: These emails show how deputies are often the ones making key governmental decisions, with the principals later signing off.

*** Taking days to find that right response: All that said, yesterday’s moves were typical of Team Obama -- it often takes them days to find a suitable response to a controversy. Think Jeremiah Wright (which it finally solved with a famous speech), the bitter/cling remarks (which it first embraced and them condemned), and the BP spill (which took several tries to strike the right tone). Obama supporters argue that taking time to find the right response is more of a virtue than a vice, especially when dealing with complex issues. Additionally, they might say this criticism is more of a reflection on a 24-7 media culture than demands immediate answers and explanations. But there’s also no doubt that the White House would prefer finding a suitable response on Day 1 than Day 4 or 5. And, as we said above, we’re not sure the Obama White House has still found that sweet-spot response on these controversies; a lot is riding on its replacement pick to head the IRS.   

*** Don’t lose sight on Syria: While today’s news conference with Turkish Prime Minister Erdogan will likely be dominated by questions regarding the domestic controversies over the last several days, don’t lose sight how important Erdogan’s visit is regarding Syria. The situation there has become a HUGE problem for Turkey, which is the United States’ most important ally in the Middle East besides Israel. And Turkey wants the U.S. to take a greater role in resolving the civil war in Syria. 

*** House votes to repeal Obamacare: Also today, around 5:00 pm to 6:00 pm ET per NBC’s Luke Russert, the House will hold its 38^th vote -- per NBC’s count -- to repeal part or all of the federal health-care law. House Republicans are quick to point out that today’s vote is only the third time Republicans have voted to FULLY repeal the law; the other efforts were regarding parts of the law. As the New York Times wrote earlier this week, “Three dozen is a lot for a bill that currently has no prayer of becoming law. But the figure …  actually understates the amount of time Republicans have devoted to litigating and trying to dismantle the president’s biggest legislative accomplishment. The repeal vote, which is likely to occur Thursday, will be at least the 43rd day since Republicans took over the House that they have devoted time to voting on the issue. To put that in perspective, they have held votes on only 281 days since taking power in January 2011. (The House and Senate have pretty light legislative loads these days, typically voting only three or four days a week.) That means that since 2011, Republicans have spent no less than 15 percent of their time on the House floor on repeal in some way.”

*** Are we witnessing Holder’s last hurrah? Before 5:00 pm yesterday, the biggest story in Washington was Eric Holder’s combative hearing with House Republicans. Few punches were pulled, and personal frustrations surfaced rather easily. There is clearly no love lost between Holder and Darrell Issa, for instance. While the hearing was all over the map, Holder struggled to explain when he recused himself in the national security leak investigation. While he explained WHY he recused himself, the fact he had nothing in writing or could not say when was something that just seemed odd for America’s top law enforcement official to admit. How does he not have the recusal in writing? Don’t lawyers put everything in writing?

*** Sanford’s first day back: Don’t miss Jessica Taylor’s dispatch of Mark Sanford first day back on Capitol Hill. “As Sanford took his official oath late Wednesday afternoon, he echoed the same themes of redemption he used in his winning campaign. ‘I stand before you with a whole new appreciation for the God of second chances,’ Sanford said. The Republican’s return nearly 13 years after he left Capitol Hill is all the more remarkable for his having overcome the scandal that derailed his governorship.” 

*** New poll: McAuliffe up slightly in Virginia: And in Virginia’s gubernatorial race, a new Quinnipiac poll shows Terry McAuliffe (D) with a slight lead over Ken Cuccinelli (R) among registered voters, 43%-38%. That pretty much mirrors our NBC/Marist poll from last week, which had it McAuliffe 43%, Cuccinelli 41% with registered voters -- although among likely voters, the numbers were reversed: Cuccinelli 45%, McAuliffe 42%. 

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This story was originally published on Wed May 15, 2013 5:01 PM EDT

As the White House faces a trio of burgeoning controversies that have put the administration and agencies throughout Washington on the defensive, Attorney General General Eric Holder reiterated before a House panel Wednesday that he was not involved in the Justice Department's decision to seize two months of phone records from Associated Press journalists as a part of a leak probe.

LIVESTREAM: House Judiciary Committee hearing

The Justice Department has also opened an investigation into revelations that the Internal Revenue Service targeted conservative groups applying for tax-exempt status for additional scrutiny. In testimony before the House Judiciary Committee, Holder said that prosecutors are looking at several different statutes in the investigation of those actions. 

He said those potential violations could include an IRS statute that requires employees to do their jobs without favoritism, civil rights laws, the Hatch Act that restricts a federal employee's political activities, or the law against making false statements to investigators.

“The facts will take us wherever they take us,” he added, promising a nationwide investigation. 

Asked about the leak probe, Holder confirmed that Deputy Attorney General James Cole authorized the subpoenas on AP reporters' phone records after Holder recused himself from the matter.

Brendan Smialowski / AFP - Getty Images

Attorney General Eric Holder is sworn in during a hearing of the House Judiciary Committee on Capitol Hill May 15, 2013 in Washington, DC.

Holder first announced Tuesday that he had recused himself from the AP leak probe because he had previously been questioned by the FBI about the intelligence breach.

He added Wednesday that he also turned over his own phone records as a part of that questioning. 

He told the committee that he recused himself because he was one of the “relatively limited number of people” who had first-hand knowledge of the leaked information – and also because he had more regular communication with reporters than Cole.

“I was a possessor of the information that was ultimately leaked,” he added. “And the question then is, who of those people who possessed that information – which was a relatively limited number of people  within the Justice Department – who of those people actually spoke in an inappropriate way to the Associated Press,” he added.

In response to questions, he said that he did not know the date of his recusal for certain and that there was not a written record of it.  He also said that the White House would not have been informed of the recusal. 

Holder has been widely criticized by Republicans for DOJ's handling of the matter, scrutiny Holder noted at the beginning of his remarks.

"The head of the [Republican National Committee] called for my resignation in spite of the fact that I was not the person who was involved in that decision," he said.

The routine Justice Department oversight hearing became a hot ticket after two scandals – the DOJ probe and the revelations about the IRS – erupted since the end of last week. The Obama administration also continues to be dogged by lingering questions over its administration’s response to the Sept. 11, 2012 attack on a diplomatic outpost in Benghazi.

In opening remarks he was set to deliver before the House Judiciary Committee, Holder says the Justice Department “has taken critical steps to prevent and combat violent crime, to confront national security threats, to ensure the civil rights of everyone in this country, and to safeguard the most vulnerable members of our society.”

NBC's Pete Williams contributed to this report. 

This story was originally published on Wed May 15, 2013 1:07 PM EDT

With controversies growing over a Justice Department subpoena of Associated Press phone records and the Internal Revenue Service’s scrutiny of conservative groups, Attorney General Eric Holder was preparing to face the House Judiciary Committee in an oversight hearing Wednesday.

The hearing comes a day after Holder told reporters that he’d ordered an investigation to see if there were criminal violations in the IRS examination of conservative advocacy groups that had sought nonprofit status.  An inspector general’s report released Tuesday blamed poor management at the IRS for the scrutiny of Tea Party and other conservative groups and said the agency has been slow to correct the problems.

The attorney general also said he’d recused himself last year from any involvement in the Justice Department’s investigation of national security leaks. Holder said he took the step to avoid the appearance of a conflict of interest.

Holder will certainly field questions on both the phone records seizures and the IRS investigation but there are no mentions of either in prepared opening remarks he’s expected to deliver to the committee. 

Jonathan Ernst / Reuters

U.S. Attorney General Eric Holder appears at a news conference at the Justice Department in Washington, May 14, 2013.

The Associated Press reported Monday that phone records of its reporters and editors had been subpoenaed and seized in that probe.

Holder said in a press conference Tuesday that decisions in the leak investigation were being made by Deputy Attorney General James Cole and “the deputy attorney general would have been the one who ultimately had to authorize the subpoena that went to the AP.”

Cole wrote to the AP on Tuesday that seeking phone records from media organizations “is undertaken only after all other reasonable alternative investigative steps have been taken.” He said that the Justice Department sought the AP phone records only after a comprehensive investigation which included conducting over 550 interviews and reviewing tens of thousands of documents.

Holder said Tuesday that it “certainly not the policy of this administration” to target reporters. What has been done in the leaks investigation was, he said, “not as a result of a policy to get the press.”

Previewing Wednesday’s hearing, House Judiciary Committee Chairman Bob Goodlatte, R-Va., indicated that the panel will question Holder on a wide range of topics, including the subpoena of AP phone records and the IRS vetting of conservative groups.

“Any abridgement of the First Amendment is very concerning, especially reports that the IRS targeted conservative groups for unwarranted scrutiny during an election year,” Goodlatte said. “Members of the committee will also ask pointed questions about the Justice Department’s decision to obtain two months’ worth of telephone records of reporters and editors for The Associated Press. Congress and the American people expect answers and accountability.”

The Virginia Republican also said that in the aftermath of the Boston Marathon bombings, the committee will want Holder to address how the Obama administration can better share information among federal agencies “so that we can better detect and deter future homegrown terrorist attacks.”

But the leaks investigation seems likely to be a dominant topic of the hearing.

Holder told reporters Tuesday, “This was a very, very serious leak. I’ve been a prosecutor since 1976 – and I have to say that this is among, if not the most serious, in the top two or three most serious leaks that I’ve ever seen. It put the American people at risk – and that is not hyperbole.”

The leaks probe was undertaken at a time of deep congressional concern that Obama administration officials, including CIA chief John Brennan when he served as President Obama’s counterterrorism advisor at the White House, were providing news organizations with selective bits of secret information.

The top Republican on the Senate Intelligence Committee, Saxby Chambliss of Georgia, voted against confirming Brennan as CIA chief in March because he said Brennan had not been candid in discussing his own role in leaking.

Chambliss said he was “deeply disturbed” by Brennan's responses to the Senate committee regarding leaks of classified information, especially the disclosure relating to the al Qaida in the Arabian Peninsula underwear bomb plot in May of 2012.

This story was originally published on Wed May 15, 2013 9:22 AM EDT

Controversies sidetrack the White House, Congress, and the press… The danger for the White House: This could imperil Obama’s second-term legislative agenda… But there’s also a danger in over-analyzing the past seven days… Krauthammer’s warning to Republicans… Obama, Treasury respond to IG report on IRS… On that Ben Rhodes email… Mark Sanford’s first day back on Hill… And Planned Parenthood hits Cuccinelli.

Kevin Lamarque / Reuters

White House Press Secretary Jay Carney pauses while speaking to reporters in the briefing room of the White House May 14, 2013.

*** Sidetracked: The Benghazi/IRS/AP stories over the past week have had this additional impact for the Obama White House: They’ve sidetracked the other issues that President Obama has wanted to discuss. (Frankly, they’ve also sidetracked us in media, too.)  Last Thursday, Obama was in Austin, TX to talk about the economy; on Friday, he was selling implementation of his health-care law; on Monday night, the president traveled to fundraisers in New York, where expressed his desire to still work with Republicans (even as he raised money for Democrats for the ’14 midterms); and today at 11:00 am ET, he delivers remarks at a national peace officers memorial. Oh, there was another piece of news from yesterday the White House would have enjoyed to tout -- the budget deficit, according to the Congressional Budget Office, is estimated to fall to its lowest level since 2008. But what are the stories still being discussed in Washington today? The IRS targeting conservative-sounding groups. The Justice Department getting the AP’s phone records in a national-security leak investigation. And the Obama administration revising those Benghazi talking points.

*** The danger for the White House: NBC’s Kasie Hunt also notes that the controversies have sidetracked Congress, too. For instance, a weeks-long markup of a major Senate immigration bill received little attention yesterday; Attorney General Eric Holder testifies at a 1:00 pm ET oversight hearing, which will likely focus on the department's seizure of AP phone records and other thorny issues. Moreover, the top Republican on the Senate Finance Committee (Orrin Hatch) wants the IRS investigation to take priority over dealing with tax reform. And get this: Fully a third of House committees are now focused on investigating the Obama administration. As NBC’s Mike O’Brien writes, all of this COULD imperil the Obama White House’s second-term legislative agenda. “The fact of the matter is House and Senate Republicans have done very little legislating so far this year. This certainly isn't going to help things,” Jim Manley, a former senior Democratic Senate aide, told O’Brien. “Now they're going to feast on investigation after investigation for the rest of the year, while throwing red meat to their base and forgetting about the divisions in their own caucus.”

*** A temporary distraction or a long-term one? So is this a temporary distraction or the beginning of the end of Obama’s second term? Remember the warning we issued months ago about second terms. Legislatively, in the best of times, they last about 18 months. The last four presidents to win second terms saw their ability to drive a legislative agenda get stopped in its tracks in 18 months or less. For Nixon, it was about six months before Washington gave up; Reagan got tax reform done and then Iran-Contra came; Clinton got a year until Monica broke in Jan. 98; and George W. Bush’s second term legislative push ended before Labor Day of that first year

*** Yet the danger in over-analyzing: Despite all the controversies facing the administration -- and how they have sidetracked its agenda -- there is a danger in over-analyzing what has occurred in the past week. After all, the White House has faced even more trying times over the past four and a half years (the U.S. economy in free-fall, the BP spill, the debt-ceiling debacle of 2011), and all of those stories now seem like distant memories. And while some are saying that Washington has turned on Obama, we have this question: When has Establishment Washington ever been a fan of how Team Obama has responded to crises and controversies? (The current issues, and the White House’s stubbornly passive way of handling them, are serving as an excuse for the president’s frenemies to pile on and re-air old grievances, like he’s terrible at personal outreach or he’s or why the person who promised to “turn the page” can’t change Washington.) Politico’s Jonathan Martin puts it well: Will all of these investigations and controversies result in a 2010 (when the public worried about the federal government’s excesses, albeit in a time of 9.0%-plus unemployment) or in a 1998 (when the GOP faced backlash for the Lewinsky investigation)? Right now, we don’t have an answer, but you can begin making a case that everything out there (talk of scandal and investigations, the Dow reaching new highs, the budget deficit declining) looks a whole lot like the 1990s.

*** Krauthammer’s warning to Republicans: Conservative columnist Charles Krauthammer warns Republicans not to overplay their hand. “The one advice I give to Republicans is stop calling it a huge scandal. Stop saying it's a Watergate. Stop saying it's Iran Contra. Let the facts speak for themselves. Have a special committee, a select committee. The facts will speak for themselves. Pile them on but don't exaggerate, don't run ads about Hillary. It feed the narrative for the other side that it's only a political event. It's not. Just be quiet and present the facts.”

*** Obama, Treasury respond to IG report on IRS: On “TODAY” this morning, NBC’s Lisa Myers reported on inspector general’s report into the IRS, and the IG concluded that the agency was targeting conservative-sounding groups in their application for tax-exempt status, that the IRS unit responsible was a mess, and that some employees were actually ignorant about tax laws. But the IG also concluded that the targeting didn’t originate OUTSIDE the IRS. “We asked the Acting Commissioner, Tax Exempt and Government Entities Division; the Director, EO; and Determinations Unit personnel if the criteria were influenced by any individual or organization outside the IRS. All of these officials stated that the criteria were not influenced by any individual or organization outside the IRS,” the report said. President Obama released a statement after the report’s release: “[T]he report's findings are intolerable and inexcusable… I've directed Secretary Lew to hold those responsible for these failures accountable, and to make sure that each of the Inspector General's recommendations are implemented quickly, so that such conduct never happens again.” And Treasury Secretary Jack Lew responded with his own statement: “I strongly agree with the President about the need for accountability at the IRS, and I expect the IRS to implement the Inspector General's recommendations without delay.” That said, the IG report will do NOTHING to satisfy members of Congress who still have lots of questions.

*** On that Ben Rhodes email: Regarding those Benghazi talking points, First Read has now seen the email from Deputy National Security Adviser Ben Rhodes, and it appears to differ from the earlier portrayal that the Obama White House wanted the State Department’s concerns to be addressed. In fact, what Rhodes seemed to want is for all the information to be as accurate as possible. "There is a ton of wrong information getting out into the public domain from Congress and people who are not particularly informed. Insofar as we have firmed up assessments that don't compromise intel or the investigation, we need to have the capability to correct the record, as there are significant policy and messaging ramifications that would flow from a hardened mis-impression,” he said. But it’s important to note that this Rhodes email, via a government source, is a SELECTIVE leak -- just as the earlier portrayal of the email chain was a SELECTIVE leak. This only puts pressure on the White House to release ALL of these emails. You can’t start showing some of them without showing all of them.

*** Sanford’s first day back on Capitol Hill: In other news, “Rep.-elect Mark Sanford (R-S.C.) will be sworn in Wednesday as the new representative of South Carolina’s 1st district, his spokesman announced Tuesday,” the Washington Post writes. “In the House chamber, Sanford will be sworn in approximately 5:15 p.m. Wednesday, spokesman Joel Sawyer said. The Republican will rejoin Congress a week after he defeated Democratic nominee Elizabeth Colbert Busch by nine points, even as he was barraged by Democratic outside spending.”

*** Planned Parenthood hits Cuccinelli: In Virginia’s gubernatorial contest, Planned Parenthood Action Fund is launching a web advertisement hitting Ken Cuccinelli on social issues in advance of this weekend’s Virginia GOP convention in Richmond. “That Ken Cuccinelli -- he’s running for governor, and he keeps showing up where he doesn’t belong. He’s trying to put himself in the middle of our most personal decision,” the ad goes. He sponsored legislation to end funding for Planned Parenthood, and Ken Cuccinelli wants to make abortion illegal, even in cases of rape, incest, or when the health of the woman is in danger.” The web ad, which targets women voters, will run through this weekend.

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A series of recent controversies have forced the Obama administration onto the defensive, emboldening Republicans in Congress and threatening to stymie the president’s already-struggling second-term agenda.

Republicans have already slowed or stopped several of President Barack Obama’s top priorities, including his gun-control proposal, tax plan and a slew of nominations. And this trio of new flaps threatens to further embolden conservatives in Congress, who have at times suffered struggled to unite due to infighting.

Revelations that the Justice Department seized phone records from journalists at The Associated Press as part of an investigation into classified leaks has only added to headaches for the White House. Fresh questions about the administration’s handling of last year’s terrorist attack in Benghazi and reports that the IRS had singled out conservative groups for scrutiny have further galvanized Republican critics to dig in against the president.

“The fact of the matter is House and Senate Republicans have done very little legislating so far this year. This certainly isn't going to help things,” said Jim Manley, a former senior Democratic Senate aide. “Now they're going to feast on investigation after investigation for the rest of the year, while throwing red meat to their base and forgetting about the divisions in their own caucus.”

Indeed, Republicans have quickly rallied around this trio of controversies – particularly the IRS story, and the continued probe into Benghazi.

“If I were in the opposing party, and the White House were having this kind of week, I’d be smiling,” said Jamal Simmons, a Democratic strategist.

Republicans have thwarted many elements of the president’s second-term agenda over the past few months, showing little or no interest in the kind of compromise Obama hoped might come from his and Democrats’ decisive electoral victories last fall.

"My thinking was when we beat them in 2012 that might break the fever, and it’s not quite broken yet," Obama said Monday at a fundraiser, alluding to that phenomenon. "But I am persistent. And I am staying at it."

But the continued probe into Benghazi and the IRS controversy seems to have renewed Republicans’ focus, making the opposition party as energized and focused as ever in pursuing these issues to their bitter end, so as to hasten the onset of Obama’s “lame duck” status.

Pablo Martinez Monsivais / AP

President Barack Obama walks off stage after speaking at a Democratic fundraiser at the Waldorf Astoria Hotel in New York, Monday, May 13, 2013.

But not all of the administration’s allies are panicking.

“I just think that it’s panicking too quickly. Come back in a month and if nothing has changed, then that’s going to be a very bad sign,” said Michael Podhorzer, political director for the AFL-CIO. “It’s been a tough week for the administration, but things go up and down. We’ll just have to see how things go.”

In fact, one of the administration’s biggest priorities – comprehensive immigration reform – continues to steadily make its way through Congress, with the aid of Republicans. That legislation alone would be as much of a signature second-term achievement for the president as anything else on his agenda.

At Tuesday’s White House press briefing, press secretary Jay Carney disputed a reporter’s question about whether recent controversies threatened to knock Obama’s agenda off-course.

“The president is focused on what he believes the American people expect from him and their elected leaders in Washington,” he said.

And Democrats have begun to punch back.

“It wasn't long ago that the IRS inappropriately targeted the NAACP, Greenpeace and a California church that was really progressive,” said Senate Majority Leader Harry Reid, D-Nev., on Tuesday. “It was interesting at that time, we didn't hear a single Republican grandstand the issue then. Where was their outrage when groups on the other side of the political spectrum were under attack?”

Simmons counseled the administration to focus on notching small victories on other issues in order to turn the political tide back toward Obama – including by fully going after IRS wrongdoing once the facts in that case are clear.

“There are always announcements to make from government initiatives, people to invite from the White House, executive orders to issue,” he said. “The power of the presidency is the ability to move things forward.”

And progressive supporters of the administration are also on the lookout for any indication that Republicans, in their zeal to ding the administration in any of these recent controversies, overreach in their efforts.

"If the last six years have taught us not much, it’s that Republicans are willing to drive over the cliff, and in a way that’s unprecedented,”  Podhorzer said. “I’m not saying anything Earth-shattering to say that Republicans are in their partisan bunker, and they’re looking for any reason to go after the administration. This is a party that was pushing birther arguments six months ago.”

Related stories: 

• Recent controversies threaten to bog down Obama's second-term agenda
• IRS mishandling of Tea Party reviews still unresolved, audit charges
• Obama dismisses Benghazi talking points controversy as a 'sideshow'
• First Thoughts: Then there were three

This story was originally published on Tue May 14, 2013 9:07 PM EDT

Attorney General Eric Holder told reporters Tuesday that he recused himself last year from any involvement in an investigation of national security leaks.

Holder also announced Tuesday that he has ordered an investigation to see if there were criminal violations in the Internal Revenue Service scrutiny of conservative political groups that had sought non-profit status.

On the leaks case, Holder – who is slated to testify before the House Judiciary Committee Wednesday afternoon -- reminded reporters that he testified to a congressional committee last year that he had recused himself to avoid the appearance of a conflict of interest.

The Associated Press reported Monday that phone records of its reporters and editors had been subpoenaed and seized in that probe.

Holder said decisions in that investigation were being made by Deputy Attorney General James Cole and “the deputy attorney general would have been the one who ultimately had to authorize the subpoena that went to the AP.”

He added that since he was recused from the investigation, “I’m not familiar with all that went into the formulation of the subpoena.”

He also said he could not explain why voluntary cooperation wasn’t sought from the Associated Press before the subpoena was executed.

 “I am confident that the people who are involved in this investigation, who I know for a great many years and who I’ve worked with for a great many years, followed all of the appropriate Justice Department regulations and did things according to DOJ rules,” Holder said.

He added that it “certainly not the policy of this administration” to target reporters. What has been done in the leaks investigation was, he said, “not as a result of a policy to get the press.”

Referring to the leaks of national security information, Holder said, “This was a very, very serious leak. I’ve been a prosecutor since 1976 – and I have to say that this is among, if not the most serious, in the top two or three most serious leaks that I’ve ever seen. It put the American people at risk – and that is not hyperbole.”

Trying to find out who leaked the information “required very aggressive action,” Holder said.

Senate Majority Leader Sen. Harry Reid, D- Nev., on Tuesday joined other congressional critics of the Justice Department’s search of SAP’ phone records telling reporters  “I have trouble defending what the DOJ did. It’s inexcusable. There is no way to justify this.”

In a letter to Holder on Monday, Associated Press President and Chief Executive Officer Gary Pruitt said, "There can be no possible justification for such an overbroad collection of the telephone communications of The Associated Press and its reporters.” Pruitt complained that the records could “disclose information about AP's activities and operations that the government has no conceivable right to know."

In a response, Cole wrote to Pruitt Tuesday that seeking phone records from media organizations “is undertaken only after all other reasonable alternative investigative steps have been taken.” He said that the Justice Department sought the AP phone records only after a comprehensive investigation which included conducting over 550 interviews and reviewing of tens of thousands of documents.

This story was originally published on Tue May 14, 2013 7:57 PM EDT