Free Market Ends as Washington and Wall Street Merge

Following a string of guarantees, buy-outs, and bailouts for various financial firms, Congress is now rushing to authorize the Treasury Secretary to spend $700 billion to bail out the rest of Wall Street. Since its role in the sale of investment bank Bear Stearns to rival J.P. Morgan in March, the federal government has intervened three times in the nation's financial markets by using taxpayer dollars to prop up the value of various private banking and mortgage entities. While taxpayers ought to be concerned about the sums of money involved in these transactions, a more fundamental problem exists: the bottom-line cost is anybody's guess.

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Key Tax Policy Items Remain Unresolved

Congress is scheduled to adjourn for the election season on Sept. 26, but a set of what many consider must-pass tax cut bills have yet to be sent to the president's desk. As differences between the House and Senate remain over offsets, and as a massive Wall Street bailout bill has grabbed the spotlight, final congressional approval of these measures before adjournment remains less than certain.

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Organization's Election-Related Activities Raise Questions

The American Issues Project (AIP) has aired an ad in several swing states questioning Democratic presidential nominee Barack Obama's ties to a controversial professor. The group claims a single $2.9 million donation for the ad does not violate federal campaign finance laws, but many legal experts have questioned this logic and AIP's claimed status as an issue advocacy organization.

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Veterans Administration Again Reverses Itself to Allow Some Voter Registration Drives

Over the past several months, support has been growing to allow voter registration efforts at Department of Veterans Affairs (VA) facilities. In a reverse of policy, the VA will no longer ban voter registration drives for veterans living at federally operated nursing homes, shelters for the homeless, and rehabilitation centers across the country. A week after this change, the House passed the Veterans Voter Support Act to legislatively protect such activity and to ensure that the VA allow voter registration drives by nonpartisan groups. However, the VA told a Senate committee that it opposes the legislation in its current form.

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Lobbyists, Allies in Congress Work to Derail Greenhouse Gas Limits

With the support of special interest lobbyists, congressional Republicans are pushing legislation to hinder the federal government's ability to address climate change. Proposed legislation would halt early efforts by the U.S. Environmental Protection Agency (EPA) to place new limits on greenhouse gas emissions.

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Senate Clears Contracting Reforms after Resolving Earmark Dispute

The Senate passed important contracting reforms Sept. 17 when it approved the FY 2009 Defense Authorization Act (S. 3001) by an 88-8 vote. Among other measures, the legislation included a provision to create a national contractor misconduct database.

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EPA Failing on Children's Environmental Health Issues

The Government Accountability Office (GAO) told a Senate oversight committee Sept. 16 that the U.S. Environmental Protection Agency (EPA) has ignored recommendations from an advisory committee established to assist the agency in creating policies to protect children's health. For example, in developing three recent air quality standards on particulate matter, ozone, and lead, EPA either rejected the committee's recommendations or treated them as one of many public comments, according to GAO.

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EPA Withholds Pesticide Information While Bees Die

A conservation organization has sued the U.S. Environmental Protection Agency (EPA) for failing to release information about a pesticide linked to dramatic declines in honeybee populations. The pesticide was approved on the condition that the manufacturer study the effects of the chemical on the bee species. The EPA has received the studies but refuses to release them to the public, even though a Freedom of Information Act (FOIA) request was filed.

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Police and Protest Groups Clash at Political Conventions

Scores of protesters converged on the Democratic National Convention (DNC) in Denver, CO, and the Republican National Convention (RNC) in St. Paul, MN. Both were designated "national special security events," and the Secret Service was responsible for planning and implementing a security plan for each city. Protesters were visible at both conventions, although far fewer at the DNC, and hundreds of arrests made headlines at the RNC.

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Government's Secrecy Grade: Unsatisfactory

OpenTheGovernment.org's 2008 Secrecy Report Card, released Sept. 9, explored numerous indicators of government secrecy and found that continued expansion of secrecy across the federal government occurred in 2007. The report is the group's fifth such annual publication; all five reports have discovered continual poor performance by the federal government in permitting public access to government information.

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