• McClellan backs Rove: “Any individual who works here at the White House has the president’s confidence.” Mehlman, meanwhile, says Rove “did not leak classified information.” [WP, LAT]
• Bush discusses O’Connor‘s successor with Frist, Reid, Specter, Leahy; Laura “would really like” him to nominate a woman. [WP, NYT, WP, WSJ, LAT, USAT]
• Loyalty is tested as scandal engulfs Rove; Bush remains supportive. David Gergen: “Karl is his right arm.” [NYT]
• Chertoff to unveil his proposal to overhaul Homeland Security today; plan is “broad restructuring” to streamline communication to agencies. [LAT, WSJ, USAT]
• Bolton may settle for recess appointment. [WP]
• Lawmakers complain about inadequate funding of transportation security. [NYT]
• Frist produces alternative stem-cell research plan based on “new, unproven methods.” [NYT, WP]
• Republican senators wrangling with budgetary constraints. [WSJ]
• Time magazine editors hold “listening tour” of staffers’ reactions to Cooper, Miller. [NYT]
• Hillary has spent her time in office carving out the political center. [NYT]
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