Obama Cites Economists Calling Jobs Bill Insurance Against Double-Dip

President Obama sends Congress the $447 billion American Jobs Act to Congress today with the sales pitch that experts are calling his plan to boost the economy an insurance policy against a double-dip recession.

"When you look at what independent economists are saying about the American Jobs Act, my jobs plan, uniformly what they are saying is this buys us insurance against a double-dip recession and it almost certainly helps the economy grow and will put more people back to work," Obama told NBC News. "And that's what the American people want right now."

Obama also appealed to Republicans to not re-live the debt ceiling debacle again and put the markets and Main Street Americans at risk.

"What we've done is we've been able to stabilize the economy. And, you know, that is an enormous accomplishment. But the fact of the matter is we are not where we need to be. And it is important for us to not relitigate all the arguments of the past, but rather to say right now, what are the smartest things we can do to put people back to work?" Obama added.

This from a White House official:

"The President will make remarks in the Rose Garden on the need for Congress to pass the American Jobs Act. He will announce that he will be sending the bill to Congress on Monday evening when Congress comes back into session. He will call on Congress to pass the bill, which contains the kinds of proposals to grow the economy and create jobs that have been supported by both parties in the past. He will be joined at the Rose Garden event by people from across the country who would benefit from the American Jobs Act, including teachers, police officers, firefighters, construction workers, small business owners, and veterans."

The Democratic National Committee is providing Obama some air cover with a new TV ad to try to help make his case for Congress to pass the bill.

Video: President Obama Urges Congress to Put Jobs Ahead of Politics

President Obama's speech to Congress, urging GOP to end putting politics ahead of jobs.

Obama Urges Congress to Embrace a New Recovery Plan

President Obama promises he will offer up a new recovery plan next month and he has a message to Republicans in Congress who obstruct efforts to jump start the economy: Get on board or face the voters next year.

"Moving forward, my basic attitude is we know what to do.  I'll be putting forward, when they come back in September, a very specific plan to boost the economy, to create jobs, and to control our deficit. And my attitude is, get it done," Obama said during a surprise announcement at a stop in Decorah, Iowa

After a weekend of playing the punching bag, President Obama is hitting back with a three-day bus trip through the heartland that includes five town halls, three states and a lot of bruising shots at what he casts as a do-nothing GOP-led Congress.

"And if they don’t get it done, then we’ll be running against a Congress that’s not doing anything for the American people, and the choice will be very stark and will be very clear," Obama said in a veiled threat to campaign in districts where members of Congress oppose a new stimulus plan.

Now on Day Two of the listening tour, Obama is hosting a White House Rural Economic Forum in Peosta, Iowa, where he is announcing a new rural jobs initiative that includes committing $350 million in Small Business Administration funds over the next five years. White Housae officials say it is only a small taste of the recovery plan the President plans to roll out next month.

"SBA is pleased to announce that we will be doubling the capital going to rural businesses through the Small Business Investment Company program, with no cost to taxpayers,” said SBA Administrator Karen Mills. "Small businesses of all kinds are thriving in rural areas where they are creating jobs of the future and helping ensure the economic stability of the middle class."

Predictably, the GOP and some members of the mainstream media are slamming Obama for what they call a campaign-style trip paid for with taxpayer money. It is a charge that Presidents have long faced from the opposition party in election cycles.

Obama is riding in his Midwest motorcade this week in a brand new, giant black bullet-proof bus purchased by Secret Service for $1.1 million. The Secret Service made the decision about a year ago to buy two of the secure buses to use to protect the President, other government officials and visiting foreign dignitaries, a spokesman said.

Obama Launches Summer Push-Back Tour

After a weekend of playing the punching bag, President Obama is hitting back with a three-day bus trip through the Midwest that includes five town halls and a lot of bruising shots at what he casts as a do-nothing GOP-led Congress.

Rolling out the artillery at his first stop this afternoon in Cannon Falls, Minn, Obama said, "I'm not here just to enjoy the nice weather. I'm here to enlist you in a fight. We are fighting for then future of our country and that is a fight that we are going to win."

Obama needs to make sure America's debt fatigue does not become Obama fatigue. His approval rating hit a new low over the weekend, dipping to 39%. The mainstream media and the GOP field of presidential wannabees quickly latched on to the Gallup number.

The GOP candidates, in high-profile speeches in Iowa and South Carolina, focused on questioning Obama's leadership in a stinging barrage that drew cheers, but failed to further sink the President's poll numbers. The Gallup daily tracking poll actually ticked upwards by two points today to 41%.

Obama hopes to counterattack by striking back at the most unpopular entity in Washington: The GOP-led House and filibuster-prone Senate Republicans, which have a dismal 28% approval rating, according to a Gallop survey last month.

The President and his advisors believe there is plenty of evidence that the Republicans are stalling at moving forward with a jobs agenda, instead focusing on protecting the rich from paying their fair share of taxes.

Driving home his point, Obama served up a menu today of pending and proposed legislation that Congress could pass immediately to help spur job-creation, including a payroll tax cut, tax credits for companies that hire war veterans, creation of an infrastructure bank to rebuild America and put builders and constructions workers back to work, international trade deals and patent reforms to make it easier to turn ideas into businesses.

"So there is no shortage of ideas to put people to work right now. What is needed is action on the part of Congress, a willingness to put the partisan games aside and say we're going to do what's right for the country, not what we think is going to score some political points for the next election," Obama said.

Obama picked up some support from the biggest name in Wall Street circles, when mega-investor Warren Buffett wrote an op-ed for The New York Times titled, "Stop Coddling the Super-Rich."

"While the poor and middle class fight for us in Afghanistan, and while most Americans struggle to make ends meet, we mega-rich continue to get our extraordinary tax breaks," Buffett wrote.

How Safe Is It When Airline Inspectors have to Pay Their Own Way?

Updated 4:45 p.m. edt

Congress has reached a partial deal that will allow Federal Aviation Administration inspectors and airport construction workers to get back back on the job, Senate Democratic leader Harry Reid announced this afternoon.

"This agreement does not resolve the important differences that still remain. But I believe we should keep Americans working while Congress settles its differences, and this agreement will do exactly that," Reid said in a statement.

The FAA inspectors were furloughed two weeks ago when funding expired without the House and Senate reaching a deal on a bill extending their pay and funding airport construction projects. The impasse was over a House measure that did not fund rural airports.

As part of the deal, the Senate will accept a bill passed by the House that cut $16 million from the Transportation budget for subsidies to rural airports. Transportation Secretary Ray LaHood will authorize individual waivers to make up for the budget shortfall for rural airports.

"This is a tremendous victory for American workers everywhere. From construction workers to our FAA employees, they will have the security of knowing they are going to go back to work and get a paycheck - and that's what we've been fighting for. We have the best aviation system in the world and we intend to keep it that way," LaHood said in a statement.

Reid will move the bill through the Senate using a procedure called "unanimous consent," which will allow Congress to remain on its five-week vacation without having to return for an up or down vote.

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Not everyone is as confident as Transportation Secretary Ray LaHood that airline safety is not being compromised by furloughed aviation inspectors having to pay their own travel costs and other expenses out of pocket to do their jobs.

Some airline pilots fear the partial shutdown by Congress of the Federal Aviation Administration is putting undue pressure on the inspectors.

"When the FAA inspectors are paying their own bills, will they go far enough, do enough and stay on site long enough to answer all of the concerns?" said one longtime pilot who spoks on the condition that his name not be used.

"Safety costs money," he added.

If the matter is not resolved soon, rank and file union members will ask the pilots and other airlines unions to weigh-in and potentially take steps of their own.

LaHood insisted the inspectors who are fronting their own money to do their job "are dedicated federal employees who believe in their mission of safety."
 
"I can say without equivocation, safety will never be compromised. Flying is safe, and passenger schedules should not be compromised by this issue," LaHood said.

Congress failed to fund the FAA, forcing 4,000 FAA employees to be furloughed and costing paychecks for another 70,000 construction workers who had been working on $11 billion worth of airport projects.

The government believes it is losing $1 billion in uncollected taxes because of the do-nothing Congress.

Lawmakers blew out of Washington this week for their five-week vacations without resolving the FAA issue. President Obama has asked Congress to return in the next fews days to fix the problem.

"Congress needs to come back, resolve their differences, compromise, and put our friends and neighbors and colleagues back to work," LaHood said. "They should not leave 74,000 people hanging out there, without jobs, without a paycheck, until September."

Markets Still Tanking? Debt Debacle a Yawn on Wall Street

Updated at 11:15 p.m. edt

China's largest credit-rating agency, Global Credit Rating Co., lowered its rating on U.S debt from  A+ to A tonight, calling the American economy a "debt time bomb."

Stateside, Moody's credit rating service said while it has a "negative outlook" on the U.S., for now, at least, it will not lower its  AAA credit rating.

Earlier Fitch, the No. 3 rating service, also said it will not lower the U.S. rating from AAA, but put Washington on notice that it's score remains under review.

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Updated at 4 p.m. edt

President Obama signed the new budget-cutting measure into law this afternoon as Wall Street saw its eighth straight day of losses and a new poll showed Americans are disgusted with the bratty behavior in the debt-ceiling fight.

The Dow fell 265 points to finish at 11,866.84. The NASDAQ closed at 2669,24 plunging 75 points, while the S&P 500 fell 33 points, ending at 1,254.05.

The next nightmare for American markets may be the loss of the AAA credit rating the U.S. has enjoyed for the better part of a century.

"While the agreement is clearly a step in the right direction, the United States, as in much of Europe, must also confront tough choices on tax and spending against a weak economic back drop if the budget deficit and government debt is to be cut to safer levels over the medium term," the credit-rating service Fitch said in a statement.

Standard & Poors and Moody's have already put the U.S. on notice that its pristine rating is at risk.

There are also fears the U.S. could slip into a double-digit recession, especially if it turns out the Tea Party-driven debt law ends up costing more Americans their jobs, as some analysts predict.

The image of elected federal officials continued to slide in the eyes of Americans fed up over the handling of the debt debate, according to a CNN/ORC International poll taken yesterday.

The poll showed 52% of respondents are opposed to the debt ceiling deal while 44% favor it --- and 77% of Americans scoffed at the behavior of lawmakers during the debate.

"When three-quarters say that elected officials are behaving like spoiled children, it's probably safe to say that there are no winners," said CNN polling director Keating Holland.

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The new budget-slashing law did little to immediately boost Wall Street and the global markets as the house-of-cards financial system sways amid tanking economies around the world, including the U.S.

The Dow Jones industrial average dipped below 12,000 shortly after the Senate voted 74-26 to pass the complicated, two-tiered measure that for more than a month gridlocked Washington, ravaged the financial markets and angered Americans already fed up with the shenanigans of their elected officials.

"Our economy didn’t need Washington to come along with a manufactured crisis to make things worse," President Obama said after the vote. "It’s pretty likely that the uncertainty surrounding the raising of the debt ceiling, for both businesses and consumers, has been unsettling, and just one more impediment to the full recovery that we need."

He added, "And it was something that we could have avoided entirely."
 
Elements of the Tea Party, seen by some observers as having been duped into carrying the water for Wall Street and corporate interests, has argued that the economy would turn around by dialing down the $14.3 trillion federal debt.

The European banking crisis, stagnant U.S. employment (with more layoffs coming as a result of the new budget-slashing debt law) and unrest in the Middle East oil patch neighborhood are among the factors behind the problems for the markets, analysts believe.

Social Security, Medicare on the Table in Debt Negotiations

Updated at 3:45 p.m. edt

For the first time, GOP House Speaker John Boehner is telling members of his party there is a 50-50 chance there could be a deal in the next few weeks on raising the debt limit.

"We had a conversation. It was productive," Boehner said after returning to the Capitol from the White House meeting.

Sources disclosed the shift in Boehner's position after President Obama sweetened the pot in the debt-ceiling negotiations, floating a new plan to slash about $4 trillion in spending over the next decade, instead of the roughly $2 trillion in cuts that have been on the table until now.

According to The Washington Post, the President is prepared to offer a chunk of the savings in reductions or alterations to Social Security, Medicare and Medicaid, if Republicans abandon their refusal to eliminate corporate tax loopholes.

The President told all eight leaders from both parties of the House and Senate when they met today that he does not want to tackle the debt problem by only making the middle class and poor Americans feel the pain. They are expected to meet again Sunday.

"Everybody acknowledges that there's going to be pain involved politically on all sides," Obama said after what he described as a productive meeting.

But now the plan may be something he has to sell his liberal backers on, since Democrats and the progressives have said they haves said hands off the entitlement programs.

"Let us be clear, Social Security has not contributed one nickel to our deficit or our national debt. Social Security is funded by the payroll tax, not the U.S. Treasury," Vermont Independent Sen. Bernie Sanders said. "I am especially disturbed that the President is considering cuts in Social Security after he campaigned against cuts in 2008."

Obama wants a deal by July 22nd -- 10 days before the Aug. 2 drop-dead date when the U.S. starts defaulting on its bills and likely sends the financial markets into chaos.

S&P, Moody's Will Lower U.S. Credit Rating Over Debt Limit

Standard & Poors would downgrade the AAA U.S. credit rating to a failing grade  if Congress and the White House do not break an impasse and reach a deal on raising the federal debt ceiling in the next month.

"If the U.S. government misses a payment, it goes to D," John Chambers, chairman of S & P’s sovereign rating committee, told Reuters. "That would happen right after August 4, when the bills mature, because they don't have a grace period."

Rival credit-rating service Moody's said it will also lower its credit rating if the U.S. fails to raise its debt limit.

“We believe the debt ceiling will be raised and the government won’t default,” Chambers told Bloomberg. “Otherwise we wouldn’t have a AAA rating on the U.S. government. It’s evolving as we expected."

The warning from the Wall Street credit watchdogs came as President Obama said he wants a balanced set of budget cuts and corporate tax loopholes eliminated as part of the package aimed at beginning to reduce the $14.3 billion federal debt.

GOP House Speaker John Boehner quickly indicated he intends to protect the corporate tax breaks, even though the White House only intends to target hugely profitable industries that it says can afford  to end the tax boondoggle.

Globally, the austerity movement moves to Britain,  which faces a strike today over cuts to public pension plans. Workers of the world unite! "Remember when teachers, nurses, doctors & lollipop ladies crashed the stock market, wiped out banks, took billions in bonuses and paid no tax? Me neither. Support the strikes against the government," Tweeted British shop owner Bristol Green.

Greece, meanwhile, is quiet today after two days of violent clashes between protesters and police in Athens. Tear-gas clouds appear to have given way to clear skies after the Greek parliament approved a five-year package that will prevent Greece from defaulting on a loan payment next week to the International Monetary Fund and EU.

Greek authorities are cautious, however, since a plan on how to implement the $40 billion austerity program is expected to be approved in parliament today.

Looming Financial Crisis: Greek Tragedy at Home & Abroad

The White House still thinks a compromise can be worked out over raising the debt ceiling.

“We believe there is the opportunity here for a substantial compromise on a significant deficit reduction agreement that is done in a way that is balanced, allows the economy to continue to grow and create jobs even as we get our fiscal house in order," White House spokesman Jay Carney said today.

President Obama met behind closed doors with Senate GOP leader Mitch McConnell last night, but there was no give in the impasse over the Republican's refusal to increase revenues through tax hikes by closing tax loopholes.

Obama's often-ignored left-leaning base voters would like to see revenues raised by wiping out tax breaks for the oil industry and companies that send American jobs overseas. 

"They agreed to continue talking. It was a useful meeting and their consultations will continue with the President, with the Vice President, with others on our team, with leaders of Congress and members of the negotiating team in Congress," Carney said.

Independent Sen. Bernie Sanders of Vermont, the self-styled socialist lawmaker, blasted the President, charging that Obama is going sell out working families, the elderly and poor by caving to the Republicans. Sanders is asking Americans to sign onto a petition he is sending to the White House.

"Mr. President, please listen to the overwhelming majority of the American people who believe that deficit reduction must be about shared sacrifice. The wealthiest Americans and the most profitable corporations in this country must pay their fair share," Sanders wrote in a a letter to Obama posted on his website.

With a little more than a month before the deadline, the U.S. national debt stands at more than $14.3 trillion. Obama will host Senate Democrats tomorrow to plot their strategy moving forward.

Across the ocean all hell is breaking loose over the same issue.

About 20,000 protesters, a handful lobbing molotov cocktails, tried to penetrate a 4,000-man human shield around the Greek parliament in Athens today to protest proposed government cutbacks and top-to-bottom tax hikes.

This Greek tragedy came at the start of a two-day national strike protesting a new round of national austerity reforms. Greece's parliament has a vote scheduled for tomorrow on the $40 billion package.

Greece has a $17 billion interest payment due next week on the a $156 billion bailout loan from the European Union and the International Monetary Fund.

If it defaults there are widespread fears that it could trigger a global economic catastrophe on par with the one Wall Street and the banking industry gave the world in the summer of 2008.

House GOP Leaders Embarrassed in 'Sure-Thing' Libya Vote

Updated at 7 p.m. edt

The Republican sponsor of the failed House bill that would have defunded the NATO mission in Libya is falling on his own sword, taking the blame for the measure's defeat.

"It was my bill. You can blame me," an apologetic Rep. Tom Rooney (R-Fla.) told Fox News. "I think we tried to limit funds so our kids weren't in harm's way but not leave NATO on their own. People either wanted all or they wanted nothing. Now we are back to square one."

Some 89 Republicans voted against the measure.

It was an embarrassing defeat for the majority party in the Republican-controlled House because it detracted from the victory that Speaker John Boehner (R-Ohio) pulled off by defeating a resolution that would have authorized the Libya operation for a year.

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An anticipated slam-dunk vote today in the House on a GOP measure to cut funding for the NATO air campaign in Libya turned into an in-your-face rejection when the measure was shockingly defeated.

The vote was 238-180 in opposition of the legislation to cut off money for the air campaign and bar the U.S. from launching drone attacks and airstrikes in the NATO-led campaign.

The embarrassed GOP House leadership claimed it did not conduct a whip count -- the tally of support that is usually done ahead of a contentious vote.

Earlier, however, the House voted as expected to reject a non-binding resolution allowing the U.S. to conduct military operations in Libya for one year. It also barred the U.S. from deploying ground forces, but that is a non-issue since President Obama has said from the start there would be no boots on the ground.

Despite an 11th-hour plea from Secretary of State Hillary Clinton, some 70 Democrats split with Obama in the  295-123 vote that denied support for the air campaign. The vote came as a new poll today shows more Americans are now opposed to the Libya mission.

House members are miffed that Obama has decided the Libya campaign does not fall under the War Powers resolution of 1973 because it does not amount to "hostilities," since, as the President argues, the U.S. is only providing support to NATO at this point.

The War Powers resolution requires a President to consult Congress when the U.S. goes to war within a couple of months after the hostilities commence.

The House-approved resolution is expected to die in the Senate, where a powerful bipartisan coalition led by Senate Democratic leader Harry Reid (D-Nev.) and Sens. John McCain (R-Ariz.) John Kerry (D-Mass.) and Lindsey Graham (R-S.C.) are set to approve a year-long air campaign.

The vote, nonetheless, was still slap in the face for the White House.

"We think now is not the time to send the kind of mixed message that it sends when we are working with our allies to achieve the goals that we believe that are widely shared in Congress: Protecting civilians in Libya, enforcing a no-fly zone, enforcing an arms embargo and further putting pressure on Gadhafi," said White House spokesman Jay Carney.

"And the writing is on the wall for Col.Gadhafi, and now is not the time to let up," Carney added.

The last time Congress rejected a President's will to conduct a war came in 1999 when it barred President Bill Clinton from using ground forces to engage Serb troops in Muslim-dominated Kosovo.

Poll: GOP Dovishness on Libya is Just Partisanship

Democratic voters are more supportive of the Libyan air campaign than Republicans, stealing the hawkish pro-military mantle, at least for now, away from the increasingly isolationist GOP, a new survey shows.

Overall, by a margin of 46% to 39% more Americans oppose the NATO-led no-fly zone than support it, reversing the backing that the air campaign had at the outset of the action, a Gallup poll released today indicates.

Americans supported the action 47% to 37% back in March, the survey showed.

Democrats back the Libya action by a margin of 54% to 35%, roughly the same backing Obama's party gave the air campaign at the outset, the polls showed.

Republicans, however, have flipped on their support for the war. In March, the historically hawkish GOP backed the campaign by a margin of 57% to 31%, but those new-found doves now oppose the mission 47% to 39%, Gallup reported.

Independent voters have the most disapproval for the Libya action in the latest poll by a margin of 52% to 31%, but that comes as no surprise since the indies were against the mission at the outset, as well, by a 44%-38% spread.

In its analysis of the poll of 999 adults conducted June 22 Gallup attributed the change of heart in GOP support to partisan politics

"This likely reflects increased criticism of the mission's legality and cost from some Republican congressional leaders and presidential candidates," Gallop analyst Jeffrey Jones  wrote of the survey that has a sampling error of plus or minus of 4%.

The survey comes as the House conducts two show votes today aimed at signaling its disdain for President Obama refusing to abide by the War Powers resolution.

The House action, which would cut spending for the U.S. role in Libya, is mainly theatrics, since the Senate is not expected to follow suit. The Senate is primed to give Obama at least until the end of the year to wrap up the Libya campaign.

The most interesting aspect of the symbolic House opposition to the bombing campaign is the unlikely alliance of conservative Republicans and peacenik Democrats.

Bipartisan Effort Would Protect State Rights on Marijuana Laws

Updated at 10:45 p.m. edt

Career law enforcement officials today backed the first-ever proposed legislation that would force the feds to respect states that legalize marijuana, declaring government efforts to curb usage and eradicate the cash crop is a big loser.

The group Law Enforcement Against Prohibition is just the latest mainstream organization to ask why let drug cartels from places like Mexico and Afghanistan and organized crime rings in the U.S. to get rich from marijuana sales when there is a massive revenue stream just waiting to be taxed by thee state and federal governments.

"Clearly the 'war on drugs' has failed, and nowhere is that more clear than with respect to marijuana. It baffles me that we arrest nearly 800,000 people on marijuana charges in this country each and every year at taxpayer expense when we could instead be taking in new tax revenue from legal and regulated marijuana sales," said Neill Franklin, a former Baltimore narcotics cop and executive director of Law Enforcement Against Prohibition.

"Making marijuana illegal hasn't prevented anyone from using it, but it has created a huge funding source that funnels billions of dollars in tax-free profits to violent drug cartels and gangs. More and more cops now agree: Legalizing marijuana will improve public safety," Franklin added. 

Law Enforcement Against Prohibition claims career police, prosecutors, judges, federal agents and ocareer among its membership.

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A new bipartisan effort launched today in Congress will test who is really for state rights and who is just blowing smoke about the autonomy of governments across the country.

Reps. Barney Frank (D-Mass.) and Ron Paul (R-Tex.) and other lawmakers co-sponsored legislation today that would force the feds to take the heat off state's that pass laws allowing the personal use of marijuana by adults.

"It's very straight forward. It protects the states," Frank said.

The bill includes allowing the in-state cultivation and distribution of medical marijuana, used by cancer and HIV patients because of its ability to induce people to eat and counter the affects of treatments that cause nausea. It does not legalize marijuana and does not allow  pot to be brought across state lines.

Lawmakers would prefer federal authorities, like the Drug Enforcement Agency, focus on deadly and addictive drugs like crystal meth, cocaine and heroin.  

"We do not believe the federal government should be in the business of prosecuting adults for smoking marijuana. It should be left to the states," Frank said. "There is a scarce availability of (federal) resources."

Formally legal until the laughable "reefer madness" era that primarily painted African Americans and Latinos as drug-crazed pot smokers, marijuana is a cash crop that could pump needed new revenues into government coffers by virtue of applying high taxes to its sale, similar to alcohol and tobacco products.

As of now -- and as it was during the era of alcohol prohibition -- organized crime syndicates are cashing in on the sale of marijuana instead of cash-poor state and federal treasuries. Many marijuana advocates would prefer to see marijuana cultivation and distribution in the hands of small businesses that pay taxes and provide legal jobs.

Advocates hoping to end prohibition on widely used marijuana believe the timing of this bill is right, with more than a dozen states decriminalizing possession of pot. More states are expected to follow suit.

"This bill is being introduced at a perfect time, when public sentiment is shifting solidly against the government's war on marijuana and the failure of prohibition has become undeniable," said Morgan Fox, spokesman for the Marijuana Policy Project.

"It would remove federal interference from states that are experimenting with more rational marijuana policies and save taxpayers billions of dollars. Thankfully, our elected leaders are catching up to public on this issue, and we should be seeing a lot more discussion about how we can fix our broken laws," Fox added.

Frank admitted it will take time for others in Congress to jump on the bandwagon to end the federal government's failed marijuana prohibition efforts.

"I don't expect it to pass in this Congress... It's an educational progress," Frank said.

White House: Don't Expect Any Changes on Libya Sunday

The White House will disregard the 90-day troop withdrawal deadline Sunday under the War Powers Resolution, even amid the squawking by some in Congress, including supporters of the NATO-led air campaign targeting Moammar Gadhafi's forces and facilities.

"We’re obviously not changing our position. NATO extended the mission a number of weeks ago by 90 days. We are participants in the NATO mission, and our position is very well known," White House spokesman Jay Carney said today.

"What we have said is that our role in this mission, our support role and the kind of engagement that we have right now, does not meet -- in our legal analysis -- does not meet the threshold set by the War Powers Resolution that requires congressional action," Carney said, repeating the position the administration issued this week.

"I’m not going to speculate about what the Libyan situation will look like in 30, 60, 90 days, or six months, or anything like that. But we are participants in this coalition. NATO has extended the mission to continue to fulfill the goals set forward by United Nations Security Council Resolution 1973, and we continue to participate in it," he added, using language that had to ease concerns at alliance headquarters in Brussels.

Lawmakers in favor of the Libya action, like Sens. John McCain (R-Ariz.) and Dick Durban (D-Ill.), think President Obama is misplaying his hand with Congress.

"Congress alone has the constitutional authority and responsibility to declare war," Durban said today, while pushing for a resolution that would end the role of the U.S. in NATO by the end of the year.

The White House had no immediate comment on Durban's proposal.

"I think that every President has said that they don't respect the constitutionality of the War Powers Act but they've always complied. He should comply with it. There's a lot of ill will here that he went to the Arab League and NATO and the U.N. without coming to Congress," McCain added on Fox News.

"So I think it would be very beneficial if he came to Congress and we pass a resolution that says we approved of not sending ground troops, but not prohibit, because that would be unconstitutional," McCain added.

The President will have a chance to discuss Libya with another critic -- House Speaker John Boehner -- when they play a friendly round of golf this weekend. Boehner, another lawmaker who has gone on the record in support of Libya, has threatened to cut off funding for the mission, even though the White House is paying for it with the existing Pentagon budget.

McCain believes Obama has made more egregious mistakes, but contends "Gadhafi is crumbling and I believe he will go."

"The President has made a mess of this situation by not sending U.S. airpower, by not declaring a no-fly zone when it counted, by not recognizing this Transitional National Council as the legitimate voice to the Libyan people, and a number of other mistakes," McCain said.

Obama does have powerful allies who feel Gadhafi cannot hold on much longer, including the backing of the man who controls what bills are considered in the Senate.

"This thing will be over before we know it," Senate Democratic leader Harry Reid told The NewsHour on PBS tonight.

White House: Fund Rebels with Gadhafi Assets

Updated at 7 p.m. edt

The U.S. has spent $715 million in existing Pentagon funds through June 3 on the Libya mission, the Obama administration said in a dispatch to Congress today.

There are no plans to ask Congress for any special supplemental appropriation for the NATO-led campaign.

Meanwhile, the memo prepared with the help of the Pentagon and State Department confirmed what senior administration officials said earlier: That the Obama administration is complying with the War Powers Resolution and has stepped as part of an international coalition to stop a humanitarian crisis created by Libyan dictator Moammar Gadhafi.

"Given the important U.S. interests served by U.S. military operations in Libya and the limited nature, scope and duration of the anticipated actions, the President had constitutional authority, as Commander in Chief and Chief Executive and pursuant to his foreign affairs powers, to direct such limited military operations abroad," the memorandum to Congress states.

"The President is of the view that the current U.S. military operations in Libya are consistent with the War Powers Resolution and do not under that law require further congressional authorization, because U.S. military operations are distinct from the kind of 'hostilities' contemplated by the Resolution’s 60 day termination provision," the administration added in the memo.

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The Obama administration is working with members of Congress to try to come up with a way to hand the Libyan rebel's governing council some of the estimated $30 billion in assets seized from Moammar Gadhafi by the U.S. Treasury, administration officials said today.

The administration "would take some of those resources" and put it in the hands of the cash-poor, but eventually oil-rich Libyan Transitional National Council, arguing that those billions belong to the Libyan people, a senior administration said.

"We're actively working closely with Congress on that," the official said.

There is already a move in the Senate gaining steam to use Gadhafi's loot to pay for humanitarian aide in Libya.

The White House said it and European and Arab allies are highly confident that the TNC is a pro-democracy government-in-waiting that is opposed to extremist militant Islamists, like Al Qaeda, dismissing politically charged claims from presidential candidates like Rep. Michele Bachmann (R-Minn.).

The White House indicated the rebels are constantly vetted and questioned by the alliance members, including by Secretary of State Hillary Clinton and the U.S. envoy in the de facto opposition capital Benghazi.

"We are very familiar with the opposition group," the official said. "It has made positive statements about its commitment to democracy."

The disclosure came as President Obama sent an update on the air war in Libya that some in Congress have demanded.

"This operation has achieved a good deal in just over two months," a senior administration said. "We see cracks in the regime."

The White House also made a spirited defense of its handling of the the military response to the humanitarian crisis, saying it has upheld the War Powers Resolution and will not have to ask Congress for any additional money to pay for the campaign.

There are no boots on the ground, the U.S. stepped in to prevent a further humanitarian crisis and more killings under Gadhafi's orders, and it is a support roll only for the American military, the White House will argue in a report expected to be released shortly.

"We are providing a support role," the official said, noting the White House has provided Congress with regular updates in private briefings and testimony at hearings. "We have not asked Congress for a supplemental (funding)... and have no plans to," the official said.

In a sign that there is no real threat that Congress has the will to wend the U.S. role in Libya, some conservatives like Rep. Dan Burton (R-Ind.) and ultra liberals like Rep. Dennis Kucinich (D-Ohio) instead turned to the courts today, suing the Obama administration in federal court today. They argued the Executive Branch is usurping the constitutionality backed War Powers Resolution of 1973.

“With regard to the war in Libya, we believe that the law was violated. We have asked the courts to move to protect the American people from the results of these illegal policies,” said Kucinich.

White House aides were confident it would counter the charges in the courts, stopping short of calling it a frivolous lawsuit.

White House tells Congress to Chill on Libya

There is arguably nothing more dangerous to American forces in the field then when the civilian politicians start playing politics with their lives -- and in a very polite way that is what some folks accused House Speaker John Boehner of doing today with the war in Libya.

Boehner (R-Ohio) has gone on the record with his support for the the Libyan mission, yet still sent Obama a letter today, arguing that after Sunday the President will be in violation of the War Powers Act of 1973.

"Either you have concluded the War Powers Resolution does not apply to the mission in Libya or you have determined the War Powers Resolution is contrary to the Constitution," Boehner wrote. "The House and the American people whom we represent deserve to know the determination you have made."

The letter was taken for political grandstanding by the White House, which has provided nearly three dozens closed-door briefings and public testimony at several Capitol Hill briefings on Libya. An update on Libya for Congress is expected before Sunday.

“We are in the final stages of preparing extensive information for the House and Senate that will address a whole host of issues about our ongoing efforts in Libya, including those raised in the House resolution as well as our legal analysis with regard to the War Powers Resolution," said White Hiouse national security spokesman Tommy Vietor.

"Since March 1st, administration witnesses have testified at over 10 hearings that included a substantial discussion of Libya and participated in over 30 Member or staff briefings, and we will continue to consult with our congressional colleagues,” Vietor added.

Appearing on CNN's "Situation Room," Sen. John McCain (R-Ariz.), a staunch supporter of the NATO-led Libyan air campaign, politely dismissed the grumbling in Congress as unnecessary and irrelevant.

Obama insists contingency money is in the budget for the Libya campaign, but privately sources close to Obama say he wants to see Gadhafi toppled as soon as possible. Obama is, however, convinced he is on the morally correct side of history on this campaign -- and is even more resolute that Gadhafi will go, or he will go down.

Obama Administration Vows to Finish Job In Libya

Updated 11 p.m. edt

NATO warplanes have struck at more than a dozen targets in Tripoli, showing signs that it intends to maintain a steady strike tempo against Moammar Gadhafi's forces and facilities.

The attacks were renewed after the Libya Contact Group met in Abu Dhabi, pledging $1 billion for cash-poor, but soon-to-be oil-rich rebel Transitional National Council.

While some of the cash is needed to finance the rebel army, finance the emerging rebel government, much of it is expected to be pumped into restarting the idle Libyan oil industry.

A consensus apparently is seriously emerging that Gadhafi cannot hold on for much longer. There are reports that even his forces who are surrounding Misurata cannot sustain a siege because they are short of ammunition, the ranks of professional soldiers are thinning and the city is being held by increasingly better-armed and trained rebel brigades.

And everyday someone from Gadhafi's inner circle contacts the allies seeking political asylum, or offering to join the rebel army, in the case of military officials.

"Gadhafi’s days are well and truly numbered," said Australian Foreign Minister Kevin Rudd. "It is a real proposition and one we may be facing sooner than many of you in this room may think."

end update
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The Obama administration rolled out some of its top guns today to argue that Moammar Gadhafi is doomed and his attacks on civilians have been curbed by the NATO air campaign.

"We have re-affirmed there is only one way forward for Libya, attacks against civilians must stop, Gadhafi must go, and the Libyan people deserve to determine their own future," Secretary of State Hillary Clinton said in Abu Dhabi, where the Libya Contact Group was meeting.

"We have seen the regime weaken significantly. We have seen the opposition make gains both in the East and the West," CIA Director Leon Panetta told a Senate panel today that is considering his nomination to become the next Defense secretary.

"I think there are some signs that if we continue the pressure, if we stick with it, that ultimately Gadhafi will step down," Panetta said.

The Financial Times report claimed in a report today that the Pentagon is preparing for the Libya mission to cost about $60 million a month, instead of the $40 million originally estimated. It Comes as the Senate is considering giving Obama a slap on the wrist for not consulting Congress on the U.S. role in Libya, as the House already has done.

Clinton also emphasized that the rebel Transitional National Council is growing into a legitimate governing body that has demonstrated a willingness to work with democratic governments to build a free society.

"The United States views the Transitional National Council as the legitimate interlocutor for the Libyan people during this interim period. We expect to see Libyans coming together to plan their own future and a permanent, inclusive, constitutional system that will protect the rights of all Libyans," Clinton said.

"This is in stark contrast to the Gadhafi regime, which has lost all legitimacy to rule. The TNC is the institution through which we are engaging the Libyan people alongside our work with civil society," Clinton added.

She left no doubt that the U.S. is all-in until Gadhafi is out.

"As long as he continues his attacks on his own people, our military mission to protect them will continue," Clinton said.

"We are pleased that NATO extended the mandate of Operation Unified Protector for another 90 days. We have stepped up the pace of our strikes and added British and French attack helicopters to our arsenal," she noted.