VOL. 4 NO. 9 POLITIthursday, february 4, 2010 CO www.politico.com War Bill Reid Battles Adds to Looming Low Polls Debt Fight With Cash By Jo h n Br e s n a h a n Alexander wants new a n d Ma n u Ra j u push for deficit panel Senate Majority Leader Harry Reid of Nevada, By Da v i d Ro g e r s trailing badly in the polls, is pouring money from his prodigious fundraising operation into the state Past and present are converg- Democratic Party organization to bolster his reelec- ing in an Afghanistan war fund- tion campaign. ing bill as the White House seeks Reid has tapped his campaign war chest for doz- to add billions to pay medical ens of state and local Democratic candidates as well claims owed to veterans exposed as party organizations representing African-Ameri- to Agent Orange during the Viet- cans, Hispanics, Asian-Americans, women, gays and nam War. college students. But the bulk of Reid’s largesse is The irony is hard to miss for going to the Nevada Democratic Party, which will this administration, already de- play a critical role in his race, especially in getting fensive about any link between out the vote this November. its Afghan policy and the much Reid helped funnel nearly $660,000 to the state bloodier U.S. involvement in Indo- party in 2009 alone, according to Federal Elec- china that so damaged President AP PHOTOs tion Commission records. These funds came from Lyndon B. Johnson. Counterclockwise: Former And with the wartime bill now Govs. Mitt Romney, Mike See reid on Page 12 approaching $55 billion, the high- Huckabee, Sarah Palin er costs make it a bigger target in and Tim Pawlenty, and Washington’s latest firefight over former Speaker Newt deficits and debt. Gingrich The new Agent Orange-related funding is striking in itself: $13.4 billion arising from a decision last October by Veterans Affairs Sec- retary Eric Shinseki to expand the number of illnesses presumed Down Payments on 2012 to be service connected for Viet- nam veterans. PACs for By Ke n n e t h P. Vo g e l This presumption simplifies and speeds the application pro- would-be The battle for the 2012 Republican presiden- cess for benefits, and the VA es- candidates tial nomination quietly began last year — may- timates that as many as 86,000 be not for the candidates but for their political people will be affected. pave the way groups. john shinkle — Politico President Barack Obama’s own for White Sarah Palin’s committee paid more than Senate Majority Leader Harry Reid (D-Nev.) war request begins with $33 bil- $50,000 for policy advice in the second half of lion for the Pentagon, plus an ad- House runs 2009, during which Tim Pawlenty’s and Mike ditional $4.5 billion for the State Huckabee’s spent nearly $97,000 combined Department and international on fundraising lists. Newt Gingrich’s dropped Deals Survive With aid programs. The administra- $585,000 to jet him across the country. Mitt tion would use the same measure Romney’s doled out $17,500 to New Hampshire Bill on Life Support

See spending on Page 15 See candidates on Page 17 By Ca r r i e Bu d o f f Br o w n a n d Pa t r i ck O’Co n n o r

The health care bill is in trouble, but a series of Tea Party Aside, Republicans Play to Win narrow deals — each designed to win over a waver- ing senator or a key interest group — is alive and By Jo n a t h a n Ma r t i n points to two conclusions about GOP well, despite voter anger over the parochial horse- the modern Republican Party that Rep. trading that marked the rush toward passage before The widely anticipated civil were in doubt as recently as a few Mark Christmas. war within the Republican Party months ago. Kirk With the exception of Nebraska Democratic Sen. is off to a decidedly dull start. The first is that for all the talk won the Ben Nelson’s “Cornhusker Kickback,” which alien- Defying predictions from last about tea party insurgents and Illinois ated independent voters and came to symbolize an year, early evidence suggests fulminating radio and cable com- Senate out-of-touch Washington, none of the other narrow that party leaders and even most mentators taking over, the GOP primary. provisions that Senate Majority Leader Harry Reid grass-roots activists are more in- remains above all an establish- inserted into the bill appear to be in any kind of dan- terested in winning elections than ment party. AP ger as Democrats try to figure out the way ahead. in ideological bloodletting. A spate of recent developments See republicans on Page 14 See health care on Page 15 inside DEFENSE POLITICS IDEAS Jenny CLICK Sanford For Pentagon and CIA, drones Indiana Senate race heats up Sen. Gregg says reconciliation Jenny Sanford speaks out — albeit are really starting to take off. as GOP picks up Coats. won’t resolve health care issues. ap judiciously — on faith and vows. Page 9 Page 11 Page 22 Page 25