VOL. 4 NO. 149 POLITIthursday, november 18, 2010CO www.politico.com Hill Allies Pelosi Survives Rebellion Can Dems heal divisions in new Congress? Rep. Heath Shuler, winning 150 Ask W.H. votes to Shuler’s 43. But the 43 votes against her By Jo n a t h a n Al l e n Congress. reveal that a divided caucus — a n d Jo h n Br e s n a h a n That may not be so easy. still reeling from the loss of at For Clear In a nearly six-hour marathon, least 61 seats — will not be as With the worst behind her, closed-door meeting of House pliable for the California Demo- Speaker must now Democrats on Wednesday, Pelosi crat as it once was. Tax Plan find a way to unite a fractured wrapped up the votes for minor- There will be more votes in House Democratic Caucus as ity leader to easily defeat a quix- Obama is accused of the party prepares for the 112th otic challenge by See pelosi on Page 24 REUTERS sending mixed signals President

By Ca r r i e Bu d o f f Br o w n During a conference call Mon- a n d Gl e n n Th r u s h day withPresident Barack Obama, House Speaker Nancy Pelosi (D- Obama administration offi- Calif.) and Senate Majority Leader cials are confident they’ll reach a Harry Reid (D-Nev.) made it clear deal extending middle-class tax that Obama needed to establish cuts during the lame-duck ses- a coherent and tough bargaining sion — but some congressional position to deal with the GOP’s Democrats say the White House united support for an extension has already undercut their cause of all tax cuts, according to House by sending mixed negotiating sig- nals. See obama on Page 30 Pricey Bills Will Test GOP Vow of Frugality Farm bill, highway pork loom for Republicans

By Da r r e n Sa m u e l s o h n the 112th Congress, forcing dif- a n d Jo s h Vo o r h e e s ficult decisions on measures that lawmakers in the past found easy Republicans on the warpath to trumpet back home but could against federal spending will be more difficult to sell given the soon be put to the test on three deficit-busting rhetoric that Re- popular but expensive pork-laden publicans just rode to victory. bills for farms, highways and wa- Combined, the last iterations of ter projects. the three giant omnibus proposals The major infrastructure bills are all due for major updates in See big spenders on Page 21 Senators Eye 2012 With

Alarm After Scary 2010 JOHN SHINKLE — POLITICO House Speaker Nancy Pelosi (left) and Majority Leader Steny Hoyer (center) will lead the minority next year. By Ma n u Ra j u

The 2010 campaign has so rattled senators up for reelection in 2012 that they’re already moving quick- Newly elected minority says he declined to take on Pelosi ly to figure out how to survive. Veteran Democrats such as Kent Conrad of North By Jo h n Br e s n a h a n the more than 40 rank-and-file you,” the Maryland Democrat told Dakota and Jeff Bingaman of New Mexico are weigh- Democrats who voted to oust her POLITICO during an interview ing retirement. Establishment Republicans such as Rep. Steny Hoyer said he was and tens of millions of dollars in Wednesday, just minutes after Orrin Hatch of Utah and Dick Lugar of Indiana are urged by some of his colleagues GOP-funded TV ads demonizing House Democrats had finished a already moving to fend off potential primaries from to challenge Speaker Nancy her during the 2009-10 election second day of often contentious the right. Freshmen like Bob Casey of Pennsylvania Pelosi for Democratic leader in cycle, Hoyer still believes that meetings to mull a way forward Photos by John and Jon Tester of Montana are stepping up fundrais- the 112th Congress but never Pelosi can be a strong leader for after their Election Day wipeout. Shinkle — Politico ing very early the cycle, and red state Democrats once considered doing so. her diminished, and unhappy, Hoyer was easily elected to the Sens. Conrad And despite the loss of at band of House Democrats. and Bingaman See 2012 on Page 29 least 61 seats, the opposition of “Let me point out something to See hoyer on Page 23 inside Defense Tech POLITICS Richard CLICK Wolffe U.S. to rally troops at NATO sum- Venture capitalists find intellectual A high-profile race for attorney Stale coffee, pack journalism and Courtesy mit, urging patience in Afghanistan. property rules patently detrimental. general garners national notice. of Richard Wolffe’s other bêtes noires. Page 13 Page 17 Page 35 Wolffe Page 45