* Administration projects the cost of rebuilding New Orleans levees will be $10 billion, triple the previous estimate. Gov. Kathleen Babineaux Blanco (D): “This means that, just two months before hurricane season, the Corps of Engineers informs us they cannot ensure even the minimum safety of southeastern Louisiana. This is totally unacceptable.” [WP]
* Bush, in Cancun with the leaders of Mexico and Canada, aims to rebuild trust and find “move forward” on immigration. Bush: “We don’t want people sneaking into our country who are going to do jobs Americans don’t want. We want them coming in an orderly way.” [WP, NYT, USAT, AP]
* Pentagon will test the “largest single explosive we could imagine” –a bunker-busting 700-ton explosive– at the Nevada Test Site. [WP]
* Appeals Court Judge Richard Posner says restructuring of intelligence agencies is not an improvement. [WP]
* Immigration issue divides Democrats and organized labor. [WP]
* Senate begins arduous task of debating immigration legislation. [W$J, NYT]

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