As the feds are bearing down hard on Sen. Ted Stevens (R-AK), raiding his Alaska home and convening a grand jury in Washington, D.C., another investigation into a sitting senator has been proceeding quietly up in New Jersey.

Over the past several months, the U.S. attorney's office in New Jersey has issued two grand jury subpoenas to former clients of Kay LiCausi, a lobbyist and former aide to Sen. Robert Menendez (D-NJ). The investigation, of course, is no secret, but after a controversy raged over subpoenas issued shortly before the 2006 election, the investigation has shifted direction entirely. Now the focus seems to be whether Menendez steered lobbying contracts to his former girlfriend and then delivered government funds to those client once they'd hired her.

It's never been confirmed that LiCausi and Menendez, who's divorced, were in a romantic relationship. But the rumors were such that The New York Times didn't hesitate to report in 2005 on "the widespread belief" in New Jersey and among Menendez's former staffers that they were. And Menendez himself has never denied it, always answering queries with "that's strictly personal." Reports of the relationship have always been phrased in the past tense since 2005.

LiCausi started work for Menendez back when he was in the House in 1998. She was 26. Four years later she left with the title of chief of staff of his New Jersey office, a position that the Times called "midlevel" -- she supervised six people. But immediately she began raking in some hefty contracts, not only as a lobbyist, but also as a fundraiser for Menendez and the Democratic Congressional Campaign Committee. Menendez admitted to the Times that he'd "encouraged" the DCCC to hire her for the $10,000 a month spot. And no doubt he was responsible for the work on his political committees, where she was also making another $10,000 a month fundraising for both his political action committee and his campaign. And then there were the lobbying contracts which also rolled in.

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So, what's going on in New Jersey?

A U.S. attorney is investigating the arrangement between U.S. Senate incumbent Bob Menendez (D-NJ) and a community charity who rents out his former Union City home, the Newark Star-Ledger reports today.

"[S]ure to rock New Jersey's hotly contested Senate race" is how the Star-Ledger described the revelation.

Far be it from me to question a paper's motives. But I note that the Star-Ledger broke the story of the unethical arrangement two weeks ago, reporting that the senator helped the group qualify to apply for a federal grant program. So they may have a bit of institutional ego wrapped up in seeing a federal investigation boost the fiasco.

Others have been less excitable about the flap. Here's how the Philadelphia Inquirer reacted to the Menendez-NHCA relationship:

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