So Long, K St. Project
"Business advocates — who are taking their cues from [Sen. Jon Kyl (R-AZ)] and from Members in both chambers who are negotiating new laws that will govern the relationship between Congress and their industry — say they expect fewer large-scale meetings with Senate GOP leaders. And when they do meet, lobbyists say such confabs likely will be held off the Capitol campus, be more policy-centric and less publicized, with attendees more tight-lipped.

"'Everyone in the Senate [Republican] leadership is cautioning each other to stay away from anything that even remotely sounds like or looks like the K Street Project,' said one longtime lobbyist with ties to Senate GOP leaders. 'They don’t want anything that could potentially be branded as a new K Street Project.'

"Lobbyists say they already have been put on notice that Kyl will be the “un-Santorum,” focusing less on strategy with hired-gun (or contract) lobbyists and spending more time developing coalitions of corporations and big trade associations. Santorum was defeated for re-election in November, and many attribute his loss partly to the coverage he attracted for his dealings with lobbyists and the K Street Project.

“Everybody’s more sensitive,” said one contract lobbyist, who said he worries that he will have a harder time getting a seat at some decision-making meetings. “They are not going to sit in a room with a bunch of contract lobbyists.” (Roll Call)

Feith Probe To Wrap Up In Weeks
"An internal Pentagon review of offices under former Undersecretary of Defense Douglas Feith is expected to be completed within the next few weeks, an official close to the investigation said.

"Senate Democrats are awaiting the Defense Department’s report, which is being conducted by the Inspector General, to buttress their efforts to revive probes into the Bush administration’s use of pre-Iraq war intelligence. Some former U.S. officials have alleged that Feith’s Office of Special Plans oversold links between Saddam Hussein and al Qaeda in the run up to the 2003 Iraq invasion.

"Democrats have also sought to examine allegations that members of Feith’s office had gone outside legal channels in conducting intelligence operations in Europe and Middle East. Lawrence Franklin, a Middle East expert who worked for Feith, pleaded guilty in 2005 to illegally provided intelligence to members of AIPAC, a pro-Israel lobbying group, as well as to an Israeli diplomat." (Wall St. Journal)

Lobbyist Database Proposal Fades
"Lobbyists bracing for tough new disclosure requirements from the Democrats’ ethics reform drive can breathe a little easier.

"Democratic leaders appear to be backing away from a provision included in ethics proposals last year that would require lobbyists to detail their contacts with Members of Congress.

"The plan was met with stiff resistance from labor and nonprofit groups, which argue that the requirement would be onerous, impossible to apply consistently and could chill contact on politically sensitive topics." (Roll Call)

Campaign Photo Shows Bush with Abramoff
"A liberal watchdog group published on its Web site Monday a picture of President Bush and imprisoned lobbyist Jack Abramoff, the kind of photo the White House has refused to release." (AP)

State Farm Negotiating On Katrina Lawsuits
"State Farm Fire & Casualty Co. is negotiating a multimillion dollar settlement in Mississippi on thousands of lawsuits and other disputed policyholder claims from Hurricane Katrina, people with direct knowledge of the negotiations told The Associated Press on Monday.

"State Farm lawyers met with Mississippi Attorney General Jim Hood as recently as Friday to discuss a possible settlement, which would resolve a civil lawsuit Hood filed against the company for refusing to cover damage from Katrina's storm surge almost 16 months ago." (AP)

Senate Torn Over Ethics Panel Proposal
"Presidential candidates from both parties are urging the Senate to set up an independent office to probe ethical questions involving fellow senators. That could be a tough sell.

"'There is some "institutional resistance,' said Sen. Barack Obama, D-Ill., a potential candidate who has long championed the notion of an independent office of public integrity that would take over some of the self-policing duties of the Senate ethics committee.

"'A lot of members are concerned about the use of an independent commission as a political club to beat them over the head,' Obama said at a news conference Monday as debate on ethics legislation opened." (AP)

Watergate Veteran Joining Bush Team
"Fielding will become Bush's top legal counsel just as Democrats, once again the majority party in Congress, plan to take a more critical look at the administration. From the Iraq war to environmental policy and secret surveillance, the Democrats who now control both the House and Senate are armed with subpoena power and ready to summon panels of witnesses.

"Fielding, a longtime Washington lawyer, will replace Harriet Miers, Bush's failed Supreme Court nominee and longtime adviser. She submitted her resignation Thursday after six years in the White House, and it will take effect Jan. 31.

"Fielding served as President Reagan's counsel from 1981 to 1986, where one of his assistants was John Roberts, now the chief justice of the Supreme Court. Under President Nixon, Fielding served as deputy White House counsel from 1972 to 1974 and associate counsel from 1970 to 1972." (AP)

Bill Jefferson A Problem For House Dems
"Pelosi, who stripped Rep. William Jefferson (D-LA) of his Ways and Means Committee seat last year after FBI agents found $90,000 in his freezer, has offered him an olive branch in the form of a less prestigious seat on the Small Business Committee.

"But some House leaders, including New York Democrat Rep. Charlie Rangel, who heads the Ways and Means Committee, say Jefferson's damaged relations with fellow Democrats can't be mended unless he's cleared.

"'Ain't no patching up anything while there's a criminal investigation going on,' Rangel said." (Shreveport Times)

FBI Arrests Chicago Alderman
"FBI agents had to break a window at a city alderman's home to get inside Monday to arrest her on a federal bribery charge, authorities said.

"Alderman Arenda Troutman is accused of accepting $5,000 to help a fictitious developer move forward on a building project.

"In return for the money and the promise of more, she agreed to back the bogus developer in getting zoning changes and alley access for a proposed development in her ward, according to federal authorities who unsealed a criminal complaint Monday after an undercover investigation." (AP)