As the House Ways and Means Committee conducted a hearing Friday on targeted scrutiny of conservative advocacy groups by the Internal Revenue Service, Republicans reacted with dismay to news that the IRS official in charge of the conservative targeting is now leading the IRS office responsible for administering the tax provisions in the Affordable Care Act.

“Absolutely outrageous,” said Sen. Roy Blunt, R- Mo. in his Twitter account.

The IRS official, Sarah Hall Ingram, served as head of the office that determined whether certain groups would be eligible for tax-exempt status between 2009 and 2012 and is now director of the IRS Affordable Care Act office.

According to an estimate last year from the Government Accountability Office, total IRS implementation costs for the health care law would reach $881 million through September of this year, with most of that money coming from a fund in the Department of Health and Human Services.

In his budget proposal for the new fiscal year, President Barack Obama requested $44 million in new funding for the IRS to implement the health care law.

While the Department of Health and Human Services is the lead agency for issuing regulations under the new law, the IRS and the Department of Labor have key roles in carrying the law.

Obama’s budget proposal said, “Tax provisions play an important role in the health care law’s implementation, and many of its provisions are scheduled to take effect in 2014. The Budget provides funding for the IRS to implement these tax provisions and to respond effectively to public inquiries about the Affordable Care Act’s new benefits and standards.”

Starting next year, the Affordable Care Act will impose penalties for noncompliance on those uninsured people who do not purchase health insurance. It will be the job to of the IRS to determine and collect those penalties.

Also certain individuals, who purchase coverage through the new insurance marketplaces, or exchanges, will be eligible for subsidies or premium assistance in the form of federal tax credits. According to the Congressional Budget Office (CBO), 19 million people will receive premium tax credits.

This story was originally published on Fri May 17, 2013 10:31 AM EDT

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 on Thursday vowed a “sustained effort” to crack down on sexual assault in the military, saying that the rash of violence is “dangerous to our national security.”

“The reason we are so good is not because of fancy equipment, it’s not because of our incredible weapons systems and technology, it’s because of our people,” he said, according to a pool report. “It comes down to do people trust each other and do they understand that they’re all part of a single system that has to operate under whatever circumstances effectively. The issue of sexual assault in our armed forces undermines that trust.”

The president’s remarks came after a meeting with Secretary of Defense Chuck Hagel, Chairman of the Joint Chiefs of Staff Martin Dempsey and the military service chiefs to address the issue of sexual assault in the armed forces.

Obama said that those military leaders are “ashamed by some of what’s happened” and that he has asked Hagel and Dempsey to lead an effort to overhaul the military’s system.

Public pressure to change the military’s policy has mounted since two military officials charged with preventing such cases have been accused of committing acts of sexual violence. 

A bipartisan group of lawmakers on Thursday unveiled a bill that would prevent military commanders from handling sexual assault cases involving their subordinates.

This story was originally published on Thu May 16, 2013 5:51 PM 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

Four of President Barack Obama's nominees moved forward Thursday with one, MIT physics professor Ernest Moniz, being unanimously confirmed by the Senate to be secretary of energy.

Another nominee -- Sri Srinivasan to serve on the U.S. Court of Appeals for the District of Columbia Circuit -- was OK'd by the Senate Judiciary Committee and seems certain of confirmation by the full Senate.

But two other nominees -- Thomas Perez to head the Department of Labor and Gina McCarthy to lead the Environmental Protection Agency -- face an uncertain future on the Senate floor.

In a party-line vote, a Senate committee Thursday approved the Perez nomination. 

But Sen. Charles Grassley, R-Iowa, strongly opposes Perez, who is now the assistant attorney general for civil rights.

The Iowa Republican accuses Perez of improperly arranging a swap. If the city of St. Paul, Minn., would withdraw a major fair housing case which was about to be argued before the Supreme Court, then the Justice Department would agree to not go to court in support of a whistleblower suing the city.

In his confirmation hearing last month before the Senate Committee on Health, Education, Labor, and Pensions, Perez said a career Justice Department attorney had decided that the whistleblower had a weak case that didn’t merit intervention by the Justice Department on his side.

Led by Rep. Darrell Issa, R-Calif., House Republicans have also crusaded against Perez. Issa got into an angry confrontation with Attorney General Eric Holder over the Perez nomination at a House Judiciary Committee hearing Wednesday.

Another key Obama nominee, McCarthy, won approval Thursday on a party line vote by the Senate Environment and Public Works Committee.

Last week Republicans on the panel boycotted a meeting of the committee to underscore their demand for greater openness from the EPA on how it reaches its decisions and how it strikes deals with environmental groups to settle lawsuits.

Ranking Republican member, Sen. David Vitter, R-La., said Thursday Republicans were now willing to move ahead on McCarthy because “we’re finally making real progress on the five key transparency requests that have been the focus of all the Republican members’ concerns about this nomination process.”

Vitter said the EPA had agreed to give GOP senators significantly more information on how it reaches its decisions. He said if the EPA provides more transparency, he would support handling the nomination on the Senate floor without a cloture vote, which would require 60 votes. If all of the Republican’ request for EPA transparency in five areas are met, Vitter said he would vote for McCarthy’s nomination on the Senate floor.

But referring to the Republican opposition, committee chairman Sen. Barbara Boxer, D- Calif., said, “I have never seen a nomination handled this way ... . I’m stunned at this. It’s kind of holding somebody hostage until you get an answer you want to have.”

Even if Vitter relents, the McCarthy nomination still faces a hold from Sen. Roy Blunt, R-Mo., who is protesting what he calls “bureaucratic infighting” among federal agencies which have delayed an environmental impact statement on the St. Johns Bayou-New Madrid Floodway Project in his state.

Obama got a significant victory Thursday when the Judiciary Committee unanimously approved his nomination of Deputy Solicitor General Srinivasan to serve on the Court of Appeals for the D.C. Circuit, the nation’s most powerful appeals court.

So far in his presidency Obama hasn’t gotten any nominee confirmed by the Senate to the D.C. circuit appeals court. That court is now divided between four judges appointed by Republican presidents and three judges appointed by Bill Clinton. (There are also six senior judges with a reduced workload who take part in some cases.) The court has four vacancies.

Judiciary Committee Chairman Sen. Patrick Leahy, D-Vt., has called that court “more important than the Supreme Court because on so many of the issues that go there, they will have the final word.” It’s the end of the road for most cases since the Supreme Court accepts only a fraction of the requests for appeals. The court hears most of the challenges to decisions of regulatory agencies such as the EPA.

This story was originally published on Thu May 16, 2013 10:22 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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Amid controversies over a Justice Department subpoena of Associated Press phone records and the Internal Revenue Service’s scrutiny of conservative groups, Attorney General Eric Holder told the House Judiciary Committee on Wednesday that he doubted it would be “wise policy” to prosecute news media organizations for publishing classified information in the national security leaks case.

In a hearing that stretched well over four hours, Holder indicated that leakers inside the Obama administration, and not reporters, were the people his department was trying to find.

Holder said, "The focus should be on those people who break their oaths and put the American people at risk, not reporters who gather this information."

On the criminal probe into IRS scrutiny of conservative groups who’d applied for nonprofit status, he vowed a far-reaching national investigation which would not be limited to the Cincinnati IRS office that examines groups’ applications for nonprofit status.  

“The facts will take us wherever they take us,” he pledged to Rep. Lamar Smith, R-Texas.  

About an hour after Holder finished his testimony, President Barack Obama announced at the White House that Steve Miller, the acting IRS Commissioner, would resign at the request of Treasury Secretary Jack Lew.

Obama pledged to work “hand in hand with Congress to get this thing fixed” and to “do everything in my power to make sure nothing like this happens again.”

The controversies over the IRS and the AP subpoenas threaten to become the most serious political crises of the Obama presidency.

The marathon hearing with Holder brought both Democratic and Republican members together in accord that the IRS scrutiny of conservative groups was alarming and that the broad scope of the Justice Department subpoena of Associated Press phone records threatened First Amendment rights.

But Holder repeatedly told members he could not shed much light on either controversy because he has recused himself from the leaks probe and because the criminal investigation of the IRS which he ordered last Friday has only just begun.

When House Judiciary Committee Chairman Bob Goodlatte, R-Va., asked why it was necessary for the Justice Department to subpoena AP phone records if the AP was willing to cooperate with the investigation, Holder said, “I just don’t know…I don’t have the factual basis to answer.”

Holder said in a press conference Tuesday that decisions in the leak investigation were being made by Deputy Attorney General James Cole and that he, not Holder, “would have been the one who ultimately had to authorize the subpoena that went to the AP.”

Brendan Smialowski / AFP - Getty Images

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

Rep. James Sensenbrenner, R-Wis., told Holder, “I think we’re going to have to talk to him (Cole) about this,” and Rep. Zoe Lofgren, D-Calif., and Goodlatte both called for Cole to come before the committee as a witness.

But Holder cautioned later in the hearing that Cole would be very constrained in what he could tell members of Congress about an ongoing investigation.

Sensenbrenner also used his time to berate Obama administration officials for not taking responsibility for what he saw as errors or misguided policies. He urged Holder, Cole and other Justice Department officials to go to the Truman library in Missouri and learn from the famous sign the former president had on his desk, which said “the buck stops here.”

In his grilling of Holder, Republican Rep. Spencer Bachus of Alabama seemed skeptical about how, why and when Holder had recused himself in the national security leaks probe and why Holder had not put the recusal in writing and dated it. Lofgren also seemed skeptical about whether Holder acted in line with federal regulations in recusing himself.

But Holder explained that he had recused himself since he was one of a small number of top officials who’d had access to the national security secrets that had been leaked to the news media.

The House Ways and Means Committee has scheduled a hearing Friday to examine the IRS scrutiny of conservative groups.

The witnesses will be Miller and J. Russell George, the Treasury Inspector General for Tax Administration. George issued a report Tuesday which was highly critical of how the IRS scrutinized applications for nonprofit status.

But the IRS officials directly involved in the scrutiny of political groups are not slated to appear at Friday’s hearing.

In a letter to Obama on Wednesday, all 45 Republican senators said, “We demand that your Administration comply with all requests related to Congressional inquiries without any delay, including making available all IRS employees involved in designing and implementing these [sic] prohibited political screening, so that the public has a full accounting of these actions.”

Related stories:

•  Attorney General Holder faces questions on Capitol Hill
• Boehner on IRS controversy: 'Who's going to jail?'
• After AP leak, White House pushes for media-shield law 
• Obama message gets sidetracked

This story was originally published on Wed May 15, 2013 5:29 PM EDT

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