• Pentagon commits $300m to "psychological warfare operation" that "includes plans for placing pro-American messages in foreign media outlets without disclosing the U.S. government as the source"; bumper stickers and t-shirts are also being considered. [USAT, USAT]

• Army approves new, classified rules for interrogation. Official: "This is a stick in McCain's eye. It goes right up to the edge. He's not going to be comfortable with this." [NYT]

• Pentagon is reportedly monitoring the activities of "peaceful anti-war and counter-military recruitment groups." [NBC, Reuters]

• Administration is debating the need for new nuclear warheads; "the U.S. could someday spend billions of dollars replacing much of the current arsenal." [WSJ]

• Democrats press for subpoenas of White House officials regarding government response to Katrina. [WP]

• Texas prosecutors are investigating possible ties between Rep. Tom DeLay and lobbyist Brent Wilkes, who was linked to former Rep. Randy Cunningham. [NYT]

• House nears passage of tough border security bill. [NYT]

• U.S. Chamber of Commerce splits with Republican leadership over immigration bill. [WP]

• Sen. Byron Dorgan (D-N.D.), vice chairman of the Indian Affairs Committee, will return $67,000 in donations from tribes: "Even though those contributions were legal and fully reported as required by law, I will not knowingly keep even one dollar in contributions if there is even a remote possibility that they could have been the result of any action Mr. Abramoff might have taken." [WP, NYT, WT]

• Pentagon upgrades nation-building missions to the same status as combat operations. [WT]

• Sen. Frist signals that Congress will not take on the "so-called patch for the alternative minimum tax" this year. [NYT]

•Bush says registering for the new Medicare drug plan is a "daunting task" but "a good deal for our seniors." [USAT]

•Samuel Alito confirmation hearings "will pit [Sen. Arlen Specter's] deeply held political beliefs against his personal ties to the judge and his loyalty to the Republican Party." [USAT]

• Conservative Christians remain "on the sidelines while liberal Christians protest domestic spending cuts." [WP]

• Environmental groups announce opposition to Samuel Alito. [WSJ]