• FEC decides to permit 527s to continue as is, meaning "even larger sums to be spent influencing races this year and in 2008." [WP, NYT]

  • Bush essentially had no choice but to join talks on Iran. [NYT, WP, W$J]

  • Bush says he's "troubled" by news of civilian killings in Haditha, Iraq: "If, in fact, the laws were broken, there will be punishment." [NYT]

  • Homeland Security Department cuts funding for Washington and New York while boosting support for mid-size cities. [WP, NYT]

  • Sen. Hillary Clinton launches Senate campaign with broad swipes at the administration: "I believe that we need a fundamentally new direction. . . We are better than what is happening in America today." [NYT]

  • Justice Department has requested that Internet companies retain data on users' activities for terrorism and porn inquiries. [USAT]

  • Gen. Michael Hayden sworn in as new CIA director; Bush calls the agency "vital." [NYT]

  • Stolen data from the Veterans Affairs Department included addresses, phone numbers, Social Security numbers, and birthdates. [USAT]

  • Coin dealer pleads guilty to illegally directing $45,000 to Bush-Cheney '04. [WP]

  • Ashcroft describes subpoenas of reporters for The San Francisco Chronicle as a "reckless abuse of power." [NYT]

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