* Libby reveals that Bush, Cheney authorized the leaking of classified information to defend the war in Iraq; Rove, Fleisher, Powell, Armitage, Tenet will likely be called to testify. Bush in 2003: "If there's a leak out of the administration, I want to know who it is. And if a person has violated law, the person will be taken care of." [WP, NYT, WSJ, USAT]

* Development makes Bush a central player in leak story; court papers "implicate Bush as knowing about efforts to disseminate sensitive information -- and also as orchestrating them." Senior White House official says Bush sees a difference between leaks and what he reportedly condoned. [WP]

* Bush had the legal authority to approve disclosure, say experts, but "the leak was highly unusual and amounted to using sensitive intelligence data for political gain." [WP]

* Senators leaders agree on immigration legislation --a "shot at citizenship" for most of the country's illegal population, a guest-worker program, and tougher security-- though passage is "uncertain." [WP, NYT, USAT]

* Gonzales says Bush could authorize warrantless eavesdropping of domestic calls: "I'm not going to rule it out." [WP, NYT]

* McKinney: "I am sorry that this misunderstanding happened at all, and I regret its escalation. And I apologize." [WP, WP, USAT]

* Bush will have to "guide his fractured party to a final compromise" on immigration. [WP]

* Bush nominates acting director of FEMA to be permanent director. [WP]

* House Republicans fail to reach compromise on budget. [WP]

* Liberal audience member tells Bush during Q&A, "I would hope, from time to time, that you have the humility and the grace to be ashamed of yourself." [WP, NYT]

* Advisors believe Giuliani could "assemble a team and raise tens of millions of dollars in a relatively short time" for '08 race. [NYT]


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