CNN

Domenici has served in the Senate since 1973.

WASHINGTON (CNN) - New Mexico GOP Sen. Pete Domenici called for a change of policy in Iraq Thursday, making him the third veteran Republican to break ranks with President Bush over the issue in the last two weeks.

In a news conference in Albuquerque, Domenici said his change of heart stems from the Iraqi government's failure "to make even modest progress to help Iraq itself or to merit the sacrifices being made by our men."

“I have carefully studied the Iraq situation, and believe we cannot continue asking our troops to sacrifice indefinitely while the Iraqi government is not making measurable progress to move its country forward,” the New Mexico Republican said. “I do not support an immediate withdrawal from Iraq or a reduction in funding for our troops. But I do support a new strategy that will move our troops out of combat operations and on the path to coming home.”

Responding to Domenici's comments Thursday afternoon, White House spokesman Scott Stanzel said, “We respect him. He’s an important voice. But it’s also important to note that he does not advocate an arbitrary withdrawal date. And he does support funding for our troops.”

“As we’ve said before, the surge by definition is temporary," Stanzel added. "It’s our belief it’s in place to bring relief and security so Baghdad officials can make progress on political matters. We’ll eventually turn over more control to Iraqi forces. People are talking about what happens after the surge. We’ll continue to have those conversations. The president wants to bring the troops home as soon as possible. But he will do so based on the recommendations of commanders on the ground.”

Domenici did not inform the White House or President Bush of his decision to call for a new course in Iraq, Courtney Sanders, Deputy Press Secretary for Domenici, told CNN.

Sanders said Domenici just “felt it was time to announce his decision."

Republican Sens. Dick Lugar of Indiana and George Voinovich of Ohio have also recently called for a change of policy in Iraq.

– CNN's Kathleen Koch, Andrea Koppel and Alexander Mooney

Libby paid his $250,000 fine Thursday.

WASHINGTON (CNN) - A quarter-million dollar fine that Lewis "Scooter" Libby paid Thursday was the most substantial element remaining from his conviction in March on federal charges that included perjury and obstruction of justice.

President Bush on Monday commuted Libby's 30-month sentence, and in light of that, the trial judge says he does not know whether Libby must still serve supervised probation. In addition, Libby had been ordered to serve 400 hours of community service, not yet specified, and the status of that also is unclear.

Bush declined to set aside the $250,000 fine imposed by U.S. District Judge Reggie Walton, who had been adamant that Libby serve time for lying to investigators looking into the possible leak of classified material dating back to 2003.

A court document filed Thursday shows Libby obtained a cashier's check Monday, the same day as Bush's decision to keep him out of prison. The check, drawn on a bank near Libby's home in McLean, Va., includes the quarter-million dollar fine and the court's special assessment of $400.

The court's receipt is dated Thursday, and includes a photocopy of the check filed in the public record of the case.

Walton has asked Libby's defense team and prosecutors to file documents by July 9 with their positions on how he should handle the probation matter. In his order, he wrote that the clemency law Bush used in commuting Libby's sentence does not address how to establish post-confinement probation for someone who hasn't been behind bars.

– CNN Producer Paul Courson

Edwards at last week's PBS forum.

WASHINGTON (CNN) - Many found John Edwards' $400 haircut earlier in the year a bit on the excessive side, but it turns out he may have actually gotten quite a deal, at least compared to another high-end trim he received three years ago.

Joseph Torrenueva, the stylist responsible for the infamous cut, told the Washington Post he once charged the former North Carolina senator $1,250 for a haircut in 2004 when Edwards was the Democratic vice-presidential nominee.

That cut was so expensive because Torrenueva traveled to Atlanta and lost two days of work, according to the Post. Torrenueva said he normally charges $175 for haircuts in his Los Angeles salon.

Torrenueva said he has cut the Democratic presidential hopeful's hair numerous times in the last few years, but didn't charge for the first five haircuts in 2003 and 2004 because he liked Edwards' politics. He only began charging when Edwards joined Massachusetts Sen. John Kerry on the 2004 Democratic presidential ticket.

A campaign spokesman told the Post an assistant handled paying Torrenueva and Edwards was not aware of how much the cuts cost.

– CNN Ticker Producer Alexander Mooney

Obama spoke at the National Education Association convention Thursday.

(CNN) – It was a speech on education, but Democratic presidential candidate Barack Obama ended up wading into the controversy over talk shows and politics Thursday.

The remarks came as Senator Obama addressed the National Education Association convention in Philadelphia. Obama was discussing the impact of education on the economy and America’s standing in the world when he said, “It’s not just about competitiveness, by the way. When we are not educating our children, we are not educating the next generation of citizens.”

In comments that were not on his prepared text released to the media, Obama added, “It’s part of the reason our young people aren’t necessarily involved in politics. Or when they are, they end up watching the wrong talk shows. They watch the wrong cable shows. They get bamboozled and hoodwinked. We need to raise a new generation of citizens.”

– CNN Political Desk Managing Editor Steve Brusk

Bob Barker

Bill Clinton

WASHINGTON (CNN) - He's never overseen a game of “Plinko” or led a “Showcase Showdown,” but that didn't stop some in Iowa from confusing former President Bill Clinton with legendary "Price is Right" game show host Bob Barker.

“Bob Barker! It’s Bob Barker!” two Iowa women yelled, according to the New York Times, as they saw the former president campaign with his wife, New York Sen. Hillary Clinton, in Clear Lake Wednesday.

When the women realized who it was, they shouted "Ohhhh!" and "seemed just as thrilled," according to the Times.

– CNN Ticker Producer Alexander Mooney

Giuliani spent $11.2 million in the second quarter.

WASHINGTON (CNN) – Republican presidential hopeful Rudy Giuliani spent $11.2 million for his White House bid in the second quarter of 2007, compared to the $15 million he raised for the primary in the same period, his campaign announced Thursday.

Giuliani’s rate of spending, or “burn rate,” more than doubled from 34 percent in the first quarter to 75 percent in the second quarter, largely due to an effort to set up field operations beyond the early states of Iowa and New Hampshire. The campaign’s overall burn rate for 2007 is 59 percent.

According to Giuliani campaign manager Mike DuHaime, the campaign now has field operations set up in a dozen states, including the delegate-rich states of Florida and California, which will hold their primaries earlier than ever before.

“It’s very important that we do a good job with the money that’s entrusted to us from people all over the country,” said DuHaime in a conference call with reporters. “Even though we are growing right now, we are running a very efficient campaign.”

The campaign also announced that it raised $1.3 million in Internet donations during the first half of the year. At the end of March, the campaign had said it raised “nearly $1 million” since first setting up a campaign committee in December 2006.

All presidential candidates have until July 15 to submit detailed fundraising and spending reports to the Federal Election Commission.

Obama spoke at the National Education Association in Philadelphia on Thursday.

WASHINGTON (CNN) - Illinois Sen. Barack Obama slammed President Bush's "No Child Left Behind" policy in a speech to the National Education Association in Philadelphia on Thursday, calling it "one of the emptiest slogans in the history of politics."

"For too long, our politics has been stuck in a cycle where we praise our educators in speeches and photo-ops, but then abandon them when it comes time to offer the resources and the support you need to do your jobs," Obama said in prepared remarks.

The Democratic presidential candidate said that, over the next few weeks, he will unveil his plan to reform the country's education system. He promised to increase teachers' wages and further compensate those that mentor children and teach tough subjects like science or math.

"In the face of a global economy where too many children start behind and stay behind, this country doesn’t need more blame or inaction or half-measures on education," Obama said. "What we need is a historic commitment to America’s teachers, and that’s the kind of commitment I intend to make as President."

– CNN Associate Producer Lauren Kornreich

The Clintons are campaigning in Iowa this week.

WASHINGTON (CNN) - White House spokesman Tony Snow fired back Thursday at Democratic presidential candidate Hillary Clinton and her husband after former President Bill Clinton charged at a campaign stop that the Bush administration believes the law is a "minor obstacle" in the wake of the commutation controversy.

"I don't know what Arkansan is for chutzpah, but this is a gigantic case of it," Snow told reporters in an off-camera briefing.

Snow took the shot at the Clintons after again being pressed by reporters about President Bush's decision to commute the 30-month prison sentence of Lewis "Scooter" Libby and leave the door open to a future pardon.

Asked about House Judiciary Chairman John Conyers' plan to probe the Libby commutation, Snow snapped that the congressman should "knock himself out," but also probe the slew of pardons granted at the end of the Clinton administration.

In an op-ed piece in USA Today Thursday, Snow defended Mr. Bush's action by charging that Mr. Clinton was "in a mad rush to push through pardons with dizzying haste” - 141 grants on Clinton's final day in office, part of 211 in the final nine weeks.

Asked by a reporter if he was asserting that "two wrongs make a right" and thus it was okay for Mr. Bush to abuse his power, Snow said: "Do we feel we've done wrong? Do we feel we cut corners? The answer is no."

Read the rest of this entry »

Gore again said Thursday he has no plans to run for president.

NEW YORK (CNN) - Former Vice President Al Gore repeated Thursday that he is not - and has no intentions to - ever run for a political office again.

"I don't have any plans or intentions to be a candidate again and really the main reason is, I'm involved in a different kind of campaign - to try to raise awareness of what I truly believe is the most serious crisis our civilization has ever faced," Gore told NBC's "Today Show," referring to global warming.

The former vice president and one-time presidential candidate was on the program to discuss Saturday's "Live Earth" concerts that will be broadcast by NBC.

The event is a "24-hour, 7-continent concert series taking place on 7/7/07 that will bring together more than 100 music artists and 2 billion people to trigger a global movement to solve the climate crisis," according to the Live Earth Web site.

When asked why he wouldn't run for president again, when presumably a president could shape an agenda to fight global warming, Gore said that even the president and Congress needed the support of the American people to make it work.

"The key players are the American people," he said. "When the American people have the awareness of what this means for their children, and for their grandchildren, that all of civilization is at risk here, then they will demand that whoever is running for office, whoever is elected to serve, will have to respond to this."

"I've kind of fallen out of love with politics. I really want to focus my attention and energy, whatever experience and talents I've gained over the years - I think it may well be that the highest and best use of that is to try to bring enough awareness of the solutions to the climate crisis and enough of a sense of urgency that we come together across party lines on behalf of our children," Gore added.

He refused to endorse any of the current field of candidates, noting that the election is 500 days away.

Albert Gore III, right, is undergoing treatment after his arrest on drug charges Wednesday.

LOS ANGELES (CNN) - Al Gore III, the son of the former vice president, is undergoing treatment after his arrest on drug charges in Los Angeles, a spokesman for his father told CNN Thursday.

Gore, 24, was arrested in Los Angeles early Wednesday after he was stopped for speeding and police found a small amount of marijuana, as well as several prescription drugs, in his Toyota Prius.

In an appearance on NBC's "Today Show" Thursday, former Vice President Al Gore said the family is dealing with the incident "as a private family matter."

"We love him very much," the elder Gore said.

Full story

- From CNN's Karan Olson and Traci Tamura

Compiled by Stephen Bach, CNN Washington Bureau

Making news today...

* Former Vice President Al Gore's son, Albert Gore III, was arrested early Wednesday morning in Orange County, California on suspicion of possessing marijuana and prescription drugs, Jim Amormino of the Orange County Sheriff's Department told CNN.

He was released from jail on bond Wednesday afternoon.

Full story

PROGRAMMING NOTE: Former Vice President Al Gore appears tonight on CNN's Larry King Live, 9 pm ET.

* "Hillary Clinton walked a fine line" in Clear Lake, IA, yesterday, "promoting her connection to the popular former president at her side while trying to keep herself on center stage... There were moments, however, when the attention the former president received eclipsed his wife's." (Des Moines Register)

"While the ex-prez said he wasn't overshadowing his wife, he stole the spotlight yesterday." (New York Post)

"Bob Barker! It's Bob Barker!" – two Clear Lake women, "seeing the former president, Bill Clinton, in the distance." (New York Times)

* Beverly Hills hairstylist Joseph Torrenueva "tells his side" of the story behind John Edwards' $400 haircut in today's Washington Post.

Torrenueva "has cut Edwards's hair at least 16 times." He also "said one haircut during the 2004 presidential race cost $1,250 because he traveled to Atlanta and lost two days of work."

* And why did New York Gov. Eliot Spitzer reportedly target NY Senate Majority Leader Joseph Bruno "for an unprecedented State Police surveillance program?" Find out in Hot Topics below!

President's Schedule:

* No public events.

Also on the Political Radar:

* The House and Senate are not in session this week.

* Sen. John McCain (R-AZ) continues his visit to Iraq.

* The United Steelworkers of America host a presidential forum in Cleveland, OH. Appearing today: Sen. Joe Biden (D-DE) (11 am ET), John Edwards (1 pm ET), and Rep. Dennis Kucinich (D-OH) (2:15 pm ET).

* Bill Richardson meets with Teamsters at the UPS Warehouse in Nashua at 7:45 am ET, and holds "job interview" events in Marlow (4 pm ET) and Stoddard, NH (7:10 pm ET).

In case you missed it, Richardson says he's the "first ever" WH candidate to visit Marlow, NH (pop. 747).

* Sen. Barack Obama (D-IL) addresses the National Education Association meeting in Philadelphia at 11 am ET. Also addressing the NEA today: Mike Huckabee (2 pm ET) and Joe Biden (4 pm ET).

Tonight, Obama helps kick off the Essence Music Festival at the Louisiana Superdome in New Orleans.

* Sen. Hillary Clinton (D-NY) attends a 1 pm ET barbecue in Muscatine, a 4 pm ET pie and coffee event at Indian Hills Community College in Ottumwa, and a 7:30 pm ET barbecue in Fort Dodge, IA.

* Sen. Chris Dodd (D-CT) continues his "River to River" Iowa tour with community events in Clinton, Dubuque, Waterloo, and Waverly, IA.

* Rudy Giuliani visits with employees and tours American Industrial Plastics at 3:30 pm ET in Daytona Beach, FL.

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Political Hot Topics
(Today's top political stories from news organizations across the country)

BUSH APPEALS FOR PATIENCE, COURAGE IN JULY 4 SPEECH: President Bush warned Wednesday that the Iraq war "will require more patience, more courage and more sacrifice," as he appealed to a war-weary public for time and sought to link today's conflict to the storied battles that gave birth to the nation. In an Independence Day address before members of the National Guard and their families, the president again painted a dire portrait of the consequences of pulling out of Iraq, asserting as he has before that "terrorists and extremists" would try to strike inside the United States. "If we were to quit Iraq before the job is done, the terrorists we are fighting would not declare victory and lay down their arms. They would follow us here, home," Bush told a crowd of about 1,000 gathered at a West Virginia Air National Guard maintenance hangar. Washington Post: President Defends War on July 4th 

"THINLY VEILED SWIPE" AT DEMS: President Bush Wednesday used his Independence Day speech to take a thinly veiled swipe at Democratic leaders, saying withdrawing troops from Iraq based on politics "would not be in our national interest." Democrats are expected to make another attempt this month to pass legislation that would seek the withdrawal of U.S. troops from Iraq. "There's more than one front in this war against these radicals and extremists," Bush said in an address in West Virginia. "And, obviously, the toughest threat of all is in Iraq." The president again defended his troop surge plan, saying it is "essential to the security" of the U.S. The Hill: Bush takes Independence Day swipe at Dems 

CHICAGO DEFENSE ATTORNEY TO BRING UP LIBBY COMMUTATION: An alleged Hamas operative is likely to be among the first criminal defendants to try to capitalize on President Bush's commutation of the 2 1/2 year prison sentence imposed on a former White House aide, I. Lewis Libby Jr., for obstructing a CIA leak investigation. Mohammed Salah, 57, is scheduled to be sentenced by a federal judge in Chicago next week on one count of obstruction of justice. In February, a jury convicted Salah and a co-defendant, Abdelhaleem Ashqar, of obstruction, but acquitted the pair of a far more serious charge of racketeering conspiracy in support of Hamas's terrorist campaigns in Israel, Gaza, and the West Bank. "What the president said about Mr. Libby applies in spades to the case of Mohammed Salah," Salah's defense attorney, Michael Deutsch, told The New York Sun yesterday. New York Sun: Libby Case May Aid Hamas Suspect 

MICROTARGETING MAVEN: In late 2002, Alex Gage sold his share of a well-established polling firm and set about convincing Karl Rove that he had the answer to ensuring President Bush's reelection. His pitch was simple: Take corporate America's love affair with learning everything it can about its customers, and its obsession with carving up the country into smaller and smaller clusters of like-minded consumers, and turn those trends into a political strategy. The Bush majority would be made up of thousands of groups of like-minded voters whom the campaign could reach with precisely the right message on the issues they considered most important. Washington Post: Romney's Data Cruncher 

GORE'S SON ARRESTED FOR DRUG POSSESSION IN ORANGE COUNTY: The 24-year-old son of former Vice President Al Gore was arrested early Wednesday in Orange County on suspicion of possession of marijuana and controlled substances, a sheriff's spokesman said. Albert Arnold Gore III told deputies he was going to San Diego when he was pulled over for going 100 mph on the southbound I-5 near the Crown Valley Parkway exit in the Laguna Niguel/Mission Viejo area. Sheriff's spokesman Jim Amormino said deputies stopped Gore's hybrid Toyota Prius at 2:15 a.m. and smelled marijuana when they approached the car. A search found numerous small quantities of marijuana and prescription drugs, including Vicodin, Xanax, Valium and Soma, he said. "He did not have a prescription for any of these dangerous drugs," Amormino said. Orange County Register: Al Gore's son leaves jail after drug arrest 

BIRTH OF A MOVEMENT, OR "HOLLOW SPECTACLE?" Al Gore couldn't ask for a bigger bullhorn. On Saturday, the global-warming guru and former vice president will host Live Earth, a 24-hour, seven-continent concert series designed to inspire a crusade to save the environment. With 100 acts in eight cities projected to reach an estimated 2 billion people via television, radio and the Internet, it's easily the planet's biggest show to date and history's most ambitious benefit event, eclipsing 1985's Live Aid and 2005's Live 8... But will it all really help make the environment better? That's tough to say. Even Live Earth's goal of boosting environmental activism could be difficult to measure. After four decades in which music benefits have multiplied, diversified and become global showcases for rising and established stars, there is some skepticism in the entertainment industry about such things — notably from Live Aid impresario Bob Geldof, who has dismissed Live Earth as a hollow spectacle. USA Today: Big show, big impact? Live Earth hopes so 

"DRAFT GORE" MOVEMENT HEATS UP IN GRANITE STATE: It's been seven years since Al Gore reluctantly conceded the presidency to George W. Bush, but supporters of the guru of global warming believe it's time for the former senator from Tennessee to get back in the game. Yesterday, a group called Draft Gore used the Amherst Fourth of July parade to launch a petition drive to encourage Gore to join the throngs of candidates vying for President. Though there are chapters of Draft Gore popping up all over the country, right now, the New Hampshire branch of the organization is focused on securing at least 5,000 signatures from registered Granite State voters who are in favor of seeing Gore run. "We want to send Al Gore a message that the people of New Hampshire support him," said Farrell Seiler, state chairman for Draft Gore. "We already have about 500 signatures so far, and we've just started the petition drive." New Hampshire Union Leader: Warming to a Gore candidacy 

$1,250 HAIRCUT?! For four decades, Joseph Torrenueva has cut the hair of Hollywood celebrities, from Marlon Brando to Bob Barker, so when a friend told him in 2003 that a presidential candidate needed grooming advice, he agreed to help. The Beverly Hills hairstylist, a Democrat, said he hit it off with then-Sen. John Edwards of North Carolina at a meeting in Los Angeles that brought several fashion experts together to advise the candidate on his appearance. Since then, Torrenueva has cut Edwards's hair at least 16 times. At first, the haircuts were free. But because Torrenueva often had to fly somewhere on the campaign trail to meet his client, he began charging $300 to $500 for each cut, plus the cost of airfare and hotels when he had to travel outside California. Torrenueva said one haircut during the 2004 presidential race cost $1,250 because he traveled to Atlanta and lost two days of work. Washington Post: Splitting Hairs, Edwards's Stylist Tells His Side of Story 

HILLARY'S "DELICATE BALANCE": Hillary Clinton walked a fine line through downtown Clear Lake on Wednesday, promoting her connection to the popular former president at her side while trying to keep herself on center stage. As a result, thousands of northern Iowans attending the city's Independence Day parade got an up-close look at one of the New York senator's challenges as the Democrat takes her own shot at the White House. It was a delicate balance as Sen. Clinton and former President Bill Clinton walked the two-mile parade route, cheered and greeted by thousands and jeered by a handful. There were moments, however, when the attention the former president received eclipsed his wife's during the third day of his first campaign trip anywhere for his wife's presidential campaign. Des Moines Register: Clintons share stage at Clear Lake event 

BILL CLINTON "HANDS ON" BEHIND THE SCENES: No matter how much he tries to blend in, Mr. Clinton is one Oscar-worthy supporting actor who can sometimes upstage his leading lady simply by breathing. The Clintons' political stagecraft — and their goal of shifting the spotlight to her — has been a work in progress since her presidential campaign began in January. This week, her husband's first campaign jaunt on her behalf showed him in stages of adjustment — relaxed and jokey at times, a bit unpolished at others. Behind the scenes, Mr. Clinton is assuredly hands-on in this new spousal dynamic. When the couple recently taped a "Sopranos" spoof for the campaign Web site, Mr. Clinton gently coached his wife on some of her line readings and facial expressions between takes, people involved said. And he has dispensed advice, praise and neck-and-shoulder massages in their three-day trip here, associates said. But in public, his hands are figuratively in his pockets. New York Times: Clintons Adjust to Her Turn in His Old Role 

ROMNEYS AND CLINTONS MEET IN CLEAR LAKE: Former Gov. Mitt Romney and his wife, Ann, had a little time to kill before the start of the Independence Day parade here, so they decided to go say hello to the other presidential candidate and her spouse taking part in the festivities. "Mr. President, how are you, Mitt Romney," the Republican said after finding Bill Clinton working the three-deep crowd gathering along Main Ave. "This is my wife, Ann, and my son, Josh." After introductions were made, Romney observed that "this is kinda fun." "How many times you done this before?" he asked. "Once or twice," Clinton deadpanned. "I bet that's right," Romney responded with a laugh. The Politico: The Romneys meet the Clintons 

MAN ARRESTED OUTSIDE OBAMA'S HOTEL IN OTTUMWA: Iowa police arrested a man outside the hotel where Barack Obama spent Tuesday night after the man was confronted by Obama's Secret Service detail. Ottumwa Police Lieutenant Tom McAndrew said Davit Zakaryan, of Cincinnati, Oh., was charged with illegally possessing a concealed knife more than 8 inches long after he was arrested for failing to produce a drivers license Wednesday morning. "We have no reason to think he was a threat at all," Lt. McAndrew said. Zakaryan, 24, in a white undershirt, was pacing outside his small, black car with Ohio license plates when Obama's security detail confronted near Obama's motorcade in the parking lot of the Fairfield Inn in Ottumwa. Soon, local police arrived, and began inspecting his car and identity documents. The scene was visible to departing reporters on the nearby press bus. The Politico: Arrest outside Obama's hotel 

OBAMA SAYS HIS HISTORY SHOWS HE CAN BE "AGENT OF CHANGE": Democrat Barack Obama declared that "change can't just be a slogan" as he voiced admiration for former President Clinton, while arguing that voters are looking for a new face that moves past the bitter wrangling of past campaigns. "I think I'm in a position to bring about the changes that people want," Obama said in an interview with The Associated Press. Obama said the dominant theme he is hearing from voters is weariness with Washington-style wrangling... In the interview, Obama said his campaign is based on change and his history shows he can be an agent of change. "Change can't just be a slogan," Obama said. "Change has to mean that we're not doing the same old thing that we've been doing." AP via Yahoo! News: Obama says he is emissary for change 

THIS YEAR'S "DARLING OF THE INTERNET": It takes a political outsider's resume and a technologically savvy organization for a presidential candidate to claim the mantle of darling of the Internet. This year, Barack Obama is picking up where Howard Dean and John McCain left off. Illinois's Democratic senator raised $10.3 million online in the last three months alone, adding to $6.9 million in the first quarter. The support of so-called netroots activists has helped him raise the most money and compile the largest overall list of donors in the field, including 110,000 who gave on the Internet. Obama, 45, is benefiting from his appeal to a new generation of voters, his early opposition to the Iraq war and a smart use of new media, analysts say. They also point to a maverick feel to his campaign, of the sort that Republican Senator McCain had during the 2000 campaign and has now lost. Bloomberg: Obama's Newcomer Appeal Helps Capture Hearts of Internet Donors 

WILL GIULIANI BE LABELED "SINGLE-ISSUE CANDIDATE?" For Giuliani, the attacks of Sept. 11, 2001, and his response to them have become his strongest campaign pitch, as the GOP presidential candidate reminds voters again and again of the role he played when terrorists crashed two airliners into the World Trade Center towers, killing nearly 3,000 people. It is a message that appears to be resonating among Republicans. They have put the blunt-speaking former mayor at the top of a crowded GOP field in most polls, and his campaign said Tuesday that he raised more money in the second quarter than any other Republican candidate. Political analysts say Giuliani's pitch is a powerful message to an electorate worried about another assault on US soil, especially after the recent attacks in Britain. At the same time, many of these analysts question whether Giuliani can ride the anti terror train all the way to the White House. Boston Globe: Giuliani watchers wonder if he will overplay 9/11 card 

ARNOLD BILLS LUXE TRAVEL TO CA NONPROFIT: California's larger-than-life governor is unabashed about living large, but keeping him in luxury sometimes depends on the same taxpayer subsidies granted to hand-to-mouth charities. Arnold Schwarzenegger, a millionaire many times over, bills much of his overseas travel to an obscure nonprofit group that can qualify its secret donors for full tax deductions, just as if they were giving to skid row shelters or the United Way. Whether journeying to China, Japan or last week's destinations — Austria, England and France — Schwarzenegger typically flies on top-of-the-line private jets like the plush Gulfstream models and has booked hotel suites that can run thousands of dollars a night. Nonprofit watchdogs say using charitable write-offs to pay for sumptuous travel is an abuse of tax codes. Los Angeles Times: Nonprofit subsidizes Schwarzenegger travel frills 

NY GOV PUT SEN. MAJORITY LEADER UNDER SURVEILLANCE: Gov. Spitzer targeted state Senate Majority Leader Joseph Bruno for an unprecedented State Police surveillance program that led to allegations Bruno improperly used a state helicopter for political purposes, an investigation by The Post has found. No other state official, including Spitzer and Lt. Gov. David Paterson, was singled out for the type of detailed record-keeping the State Police maintained on Bruno, the state's most powerful Republican, official records show. Part of the Spitzer administration's justification for homing in on Bruno – the governor's leading political adversary – is a claim that state Conservative Party leader Michael Long raised objections to Bruno's use of the State Police. New York Post: GOV'S TROOPER SNOOP JOB ON BRUNO