A new 527 group called The Real Truth About Obama, Inc. (RTAO) has filed a lawsuit in the U.S. District Court in Richmond, VA, against the Federal Election Commission (FEC) and the U.S. Department of Justice (DOJ). RTAO plans to run issue ads examining the Democratic presidential candidate's position on abortion and other policy issues. RTAO argues it is not a political action committee (PAC) because it will not advocate for Obama's defeat or election. The group seeks to prevent the enforcement of several FEC regulations regarding when a group must register as a PAC, as well as the enforcement of federal reporting requirements for political organizations, including 527 groups.

When President Bush signed the FY 2008-2009 war supplemental bill into law on June 30, he approved a pair of contracting reforms that had long been stalled in Congress. The enactment of these provisions has validated the legislative strategy of reform-minded legislators to pass federal contracting measures.

On July 31, the House Judiciary Committee heard testimony concerning the State Secrets Protection Act (H.R. 5607), sponsored by Rep. Jerrold Nadler (D-NY), which would grant the judiciary greater authority to question executive branch secrecy. The act would establish a set of procedures and standards for assessing executive branch claims to the state secrets privilege.

On July 17, the American Civil Liberties Union (ACLU) of Maryland disclosed documents revealing that state police engaged in covert surveillance of local peace and anti-death penalty groups for over a year during the administration of former Maryland Governor Robert L. Ehrlich (R). In response, House Majority Leader Steny Hoyer (D-MD) said he might support a Justice Department investigation into why this surveillance occurred. Rep. Bennie Thompson (D-MS), chair of the House Homeland Security Committee, wrote to Department of Homeland Security Secretary Michael Chertoff requesting a full account of the surveillance actions and further information regarding the funds used.