U.S. May Ice Russian Nuclear Deal ft.com — The Bush administration is set to put a high-profile nuclear deal with Russia on hold, according to U.S. diplomats. Officials expect Secretary of State Condoleezza Rice to recommend that George W. Bush, president, recall the civil nuclear co-operation agreement from Congress in the wake of Russia's conflict with Georgia. The deal would be one of the most visible victims so far of tensions between Washington and Moscow, which have risen to levels rarely seen since the end of the cold war. The move to put the nuclear agreement on ice would darken prospects for bilateral co-operation between the two countries in the area of nuclear safety.
Tax Loopholes Cost Billions reuters.com — Tax and accounting loopholes that largely benefit rich taxpayers and companies cost the U.S. government $20 billion a year even as the pay gap between chief executives and employees has widened, according to the Institute for Policy Studies and the group United for a Fair Economy. The biggest loss comes from a "stock option accounting double standard" that allows corporations paying executives stock options to deduct more than their actual expenses, they said. That practice alone costs the U.S. government $10 billion a year, the groups said.
Growth Slows As Stimulus Fades reuters.com — U.S. consumer spending will tail off as the effects of government rebates to taxpayers wear off, hurting economic growth in the second half of the year, the director of the Congressional Budget Office said. "One of the things we'll be experiencing later this year is the withdrawal of that effect leading to economic weakness," said CBO head Peter Orszag. The hope behind the first stimulus package was that it would generate economic momentum, but a deep housing slump and credit crunch have persisted. "The economy has not recovered sufficiently, so that withdrawal of the stimulus does look like it will create an air pocket afterwards," Orszag said.
Auto Industry Seeks $50 Billion money.cnn.com — Automakers plan to urge Congress to support funding up to $50 billion in low-interest loans over three years to help them modernize their assembly plants and develop next-generation fuel-efficient vehicles. Industry officials said the loans, which are twice the amount authorized in last year's energy bill, are a top priority when Congress returns next month because of the declining fortunes of Detroit's automakers and tightening credit markets. Congress authorized $25 billion in low-interest loans in last year's energy bill, but the auto industry's allies in Congress have been unable to get funding for the plan. The loans would provide low-interest credit for up to 30 percent of the cost of retooling facilities to build hybrids, plug-in hybrids, electric cars and other alternatives.
School Lunch Prices Rise nytimes.com — Prices on some school lunch lines are going up this fall as school officials, like many others, struggle to pay higher prices and delivery fees for staples like bread, milk, fresh fruit and vegetables. The price increases, generally about 25 cents a meal, come as school districts across the country try to eke more out of already tight budgets, with some switching to four-day schedules to reduce utility and busing costs, and others asking more of their students to walk to school or limiting out-of-town games for athletic teams. But for many parents, nothing hits the pockets quite like lunch prices.
Liberal Positions Gain Popularity mcclatchydc.com — As they meet for their national convention, Democrats are poised to shift their party's course — and the country's. They're turning to the left — deeply against the war in Iraq, ready to use tax policy to take from the rich and give to the poor and middle class, and growing hungry, after years of centrist politics, for big-government solutions, such as a health-care overhaul, to steer the nation through a time of sweeping economic change. The shift of the party also reflects a change in much of the population — evidenced in the policy positions advocated by rank-and-file voters as well as the party's presumptive presidential nominee.
New Orleans Levee Mistakes Repeated msnbc.msn.com — Dozens of interviews with engineers, historians, policymakers and flood zone residents confirmed many have not learned from public policy mistakes made after Hurricane Betsy in 1965, which set the stage for Katrina; many mistakes are being repeated. At every step in the scramble to correct the engineering breakdowns of Katrina, independent experts have questioned the ability of the Army Corps of Engineers, an agency that has accumulated ever more power over the fate of New Orleans, to do the right job. On the road to recovery, the agency has installed faulty drainage pumps, used outdated measurements, issued incorrect data, unearthed critical flaws, made conflicting statements about flood risk and flunked reviews by the National Research Council.
Vetted Judges Reject Asylum Bids nytimes.com — Immigrants seeking asylum in the United States have been disproportionately rejected by judges whom the Bush administration chose using a conservative political litmus test, according to an analysis of Justice Department data. The analysis suggests that the effects of a patronage-style selection process for immigration judges — used for three years before it was abandoned as illegal — are still being felt by scores of immigrants whose fates are determined by the judges installed in that period. Critics of the politicization of the immigration bench say it is not enough that in 2007 the department stopped using illegal hiring procedures. The fact that many of the politically selected judges remain in power, they say, continues to undermine the perceived fairness of hearings for immigrants fighting deportation.