Before he heads off for the July Fourth holiday, then a major foreign trip headlined by his first Russia summit, President Obama sat down today with the Associated Press and with religious news reporters for wide-ranging interviews.

Among highlights of the AP interview:

He laid down the law to former Russian President Vladimir Putin, who he said needs to "understand that the old Cold War approaches to US-Russian relations" are outdated. "Putin has one foot in the old ways of doing business and one foot in the new," Obama said.

Obama acknowledged severe misgivings about his own proposal to indefinitely hold some Guantanamo detainees -- a plan assailed by human rights groups. He said he would not be comfortable ordering the indefinite detentions -- which he wants for detainees who are dangerous but who don't have criminal cases facing them -- without congressional action.

He said the Supreme Court, which ruled this week in favor of white firefighters in a job promotion case in New Haven, Conn., was "moving the ball" away from affirmative action. But he said the high court had not completely ruled out the use of racial preferences in hiring and college admissions, which he said he supports in some circumstances.

He said he's not "reconciled" to Iran obtaining a usable nuclear weapon some time during his presidency.

He said he didn't see anything controversial in that he didn't issue a public statement about Michael Jackson's death: "I know a lot of people in the black community and I haven't heard that," he said, calling Jackson a brilliant performer whose music he has on his iPod.

The president said the White House pastry chef makes "the best pie I have ever tasted."

Asked to choose between basketball greats Kobe Bryant and Michael Jordan, Obama didn't pause for even a second before picking "Michael. I haven't seen anybody match up with Jordan yet."

The transcript of the AP interview is below.

The Globe's Michael Paulson has a report on his blog about Obama's session with the Catholic and other religious news outlets.

In that interview, the president said he is waiting to pick a church in Washington, in part because of the political firestorm last year over his former Chicago pastor, the Rev. Jeremiah Wright Jr., whom he repudiated over inflammatory sermons criticizing the US government and on other subjects.

The new and improved version of the Senate health committee's healthcare overhaul would be cheaper and cover more Americans, its leaders claim.

The plan is estimated to cost $611 billion over 10 years, and offer coverage to 97 percent of Americans. It includes a $750-a-year fee on companies with more than 25 employees for each full-time worker they don't offer coverage, and $375 per part-time worker. It also includes an option for government insurance to compete with private insurers.

"Like the president and a strong majority of Americans, we believe that a strong public option is an important component of any health reform bill that keeps costs down, expands coverage and offers American families a wide variety of affordable options," Senators Chris Dodd of Connecticut and Edward M. Kennedy of Massachusetts wrote in a letter to committee members that was obtained by the Associated Press.

Dodd, who is taking the lead as Kennedy undergoes treatment for brain cancer, briefed reporters this morning on the new proposal, joined by Senators Sheldon Whitehouse of Rhode Island and Sherrod Brown of Ohio.

(The committee's release is below.)

The committee's original draft bill was essentially dead on arrival after the Congressional Budget Office -- the official scorekeeper on the costs and benefits of legislation -- concluded last month that it would cost $1 trillion over the next decade, but would leave millions still uninsured.

While the proposal would extend coverage to 39 million people, the CBO estimated, 15 million who had coverage through their employer would lose it, as would 8 million others.

Dodd and Kennedy say in the letter that the revised proposal "virtually eliminates" the likelihood that many companies would drop coverage for their workers.

UPDATE: President Obama praised the new bill, saying it "reflects many of the principles I’ve laid out," and said that when combined with a Senate Finance Committee version, will enable the Senate to vote on "health reform legislation that does not add to the deficit, reduces health care costs and covers 97% of Americans."

His full statement this morning: "For decades, Washington has failed to act as health care costs continued to rise, crushing businesses, families and placing an unsustainable burden on governments. Today the Senate HELP committee has produced legislation that lowers costs, protects choice of doctors and plans and assures quality and affordable health care for Americans. The Congressional Budget Office has now issued a more complete review of this bill, concluding that it will cost less and cover more Americans than originally estimated. It also contains provisions that will protect the coverage Americans get at work.When merged with the Senate Finance Committee’s companion pieces, the Senate will be prepared to vote for health reform legislation that does not add to the deficit, reduces health care costs and covers 97% of Americans.

"The HELP Committee legislation reflects many of the principles I’ve laid out, such as reforms that will prohibit insurance companies from refusing coverage for people with pre-existing conditions and the concept of insurance exchanges where individuals can find affordable coverage if theylose their jobs, move or get sick. Such a marketplace would allow families and some small businesses the benefit of one-stop-shopping for their healthcare coverage and enable them to compare price and quality and pick theplan that best suits their needs.

"Among the choices that would be available in the exchange would be a public health insurance option. The public option would make health care affordable by increasing competition, providing more choices and keeping the insurance companies honest.

"The legislation also improves the quality of patient care, improves safety for patients and strengthens the commitment to preventive health care – preventing people from getting sick in the first place.

"I thank chairman Kennedy, Senator Dodd, and all the members of the HELP Committee for their hard work on health reform."

President Obama this afternoon nominated another batch of ambassadors.

And par for the course so far, career diplomats are getting, shall we say, the less high-profile posts -- while campaign donors are getting the plum spots.

As envoy to the Netherlands, Obama nominated Fay Hartog-Levin, a Chicago public relations executive who gave $2,100 directly to Obama's presidential campaign and another $28,500 to the Democratic Obama Victory Fund, according to campaignmoney.com .

The president picked longtime Foreign Service officers for the ambassadorships in Mongolia, Burkina Faso, and Swaziland, and a longtime academic for the one in Malta.

"I am confident that these fine individuals will represent our nation abroad with distinction, and strengthen our diplomatic efforts to meet 21st century challenges. I look forward to working with them in the months and years ahead,” Obama said in a statement.

The president has also tapped major fund-raisers or politicians for sought-after postings in European capitals including London, Paris, and Rome, as well as the high-profile embassies in Beijing and Tokyo. As part of his pledge to change Washington, he had suggested he would reduce the number of political appointees as ambassadors, and increase the ranks of career diplomats.

The full list is below:

President Obama has been urging the public to speak out on healthcare, warning that if they don't, their voices will be drowned out by special interests.

A watchdog group today put some numbers behind that admonition, reporting that health industry groups are vastly outspending consumer groups in lobbying Washington.

The Center for Responsive Politics says that consumer groups that favor Obama's proposals, including a public insurance plan to compete with private insurers, are being "decidedly outspent and out-lobbied by drug manufacturers, insurers, HMOs, and doctors' associations."

In the first three months of 2009, the US Chamber of Commerce, which has spent more money on lobbying since 1998 than any other group, and the Pharmaceutical Researchers and Manufacturers of America paid lobbyists a combined $22.5 million to promote their interests.

In contrast, Families USA, a consumer group on healthcare has spent $10,000 on lobbying this year after spending only $32,000 total in 2008, the center says.

Wednesday, rural Pennsylvania. Today, Baghdad.

Vice President Joe Biden is making an unannounced stop in Iraq's capital, his first as President Obama's wingman.

The White House statement on his visit:

"Vice President Biden has arrived in Iraq to visit U.S. troops and to meet with Iraqi leaders, including President Jalal Talabani, Prime Minister Nouri al-Maliki and Speaker of the Council of Representatives Ayad al-Samarrai. The Vice President will reiterate the United States’ commitment to fully implement the Security Agreement and the Strategic Framework Agreement and to carry out President Obama’s plan to draw down U.S. forces. He will discuss with Iraq’s leaders the importance of achieving the political progress that is necessary to ensure the nation’s long-term stability. This is Vice President Biden’s second trip to Iraq this year and his first as Vice President."

President Obama plans today to highlight the importance of innovation in creating jobs, but at this rate the White House would be happy with any kind of jobs at all.

The Labor Department reported this morning that employers slashed 467,000 jobs last month, bringing the net loss since the recession began in December 2007 to about 6.5 million.

While the job cuts were less than many economists expected, the unemployment rate still rose to 9.5 percent, the highest in 26 years, and most expect the jobless rate will reach 10 percent this year. About 14.7 million people were unemployed in June.

Besides the devastating impact on families and their towns, the growing unemployment rolls are a political problem for Obama, who championed the $787 billion economic stimulus plan, but wants to be able to show more impact to reassure Americans.

In a CNN/Opinion Research Corp. poll released today, 40 percent of respondents said they believe the economy is still getting worse, while 48 percent said it has stabilized, and only 12 percent believe a recovery has begun.

In his last scheduled public event before decamping for Camp David for the Fourth of July holiday, the president plans to meet with the CEOs of large and small companies that are using innovation to add jobs.

His full remarks are below, followed by the White House release, including the list of attendees:

During the lazy summer doldrums, this would certainly be must-watch TV: a Superstars-style athletics competition between President Obama and former GOP vice presidential nominee Sarah Palin.

The Alaska governor started the verbal jousting this week, bragging that she could beat the commander-in-chief in a running race, especially on her home turf.

"I betcha I'd have more endurance," the avid runner said in an interview that Runner's World magazine posted on its website Tuesday. "My one claim to fame in my own little internal running circle is a sub-four marathon. It wasn't necessarily a good running time, but it proves I have the endurance within me to at least gut it out and that is something. If you ever talk to my old coaches, they'd tell you, too. What I lacked in physical strength or skill I made up for in determination and endurance. So if it were a long race that required a lot of endurance, I'd win."

Asked whether Obama would lace up his sneakers and take on that challenge, White House spokesman Robert Gibbs replied today, "That's an interesting question....I guess it depends on where they were going to run. Maybe there's a terrain advantage in a place like Alaska. But I will certainly ask him if he's got any free time in his summer to do that."

Alas, Gibbs was apparently speaking in jest. Or was he?

He also threw in a bit of a challenge, himself, with the president's favorite sport -- basketball. "How's her jump shot?" he asked.

Palin, a high school point guard who got the nickname "Barracuda" for her aggressive play, anticipated that in her interview.

"People have asked if I'd ever challenge him to one-on-one because we both love basketball," she said. "But look, he towers over me and I wouldn't be complaining about an unfair advantage there, but maybe I'd do better playing H-O-R-S-E with him than one-on-one."

President Obama is seeking to build more public support for his healthcare agenda, holding an online town hall meeting this afternoon at Northern Virginia Community College in Annandale.

But newly released poll results show he has some work to do.

The CNN/Opinion Research Corp. survey found that 51 percent of Americans support Obama's health reform plans, while 45 percent oppose them. Those numbers, however, lag well below his overall job approval standards.

And the vast majority of Americans believe Obama's plans would cause their own medical costs to rise -- 54 percent in the poll said their costs would go up, while 17 percent said their bills would decrease, and 26 percent said costs would stay the same. More worrisome perhaps, only 20 percent of Americans said they would be better off with the healthcare overhaul, while 35 percent said they would worse off, and 44 percent said they would come out about the same.

Also, the number who believe that the healthcare system needs a "great deal" of reform has dipped slightly, to 55 percent now from 62 percent just before the November election.

Still, Americans trust Obama on healthcare more than congressional Republicans or Democrats. When Congress returns next week from its July Fourth recess, key Senate committees plan to resume detailed work on their proposals.

And so far, the poll suggests, Americans aren't buying the arguments of healthcare overhaul critics -- that the proposals would force patients to leave their doctors and that the plans would force private insurers out of business. Only 31 percent believe the former, and 42 percent the latter.

The poll, conducted June 26-28, has a margin of error of plus or minus 3 percentage points.

At the town hall, Obama is answering questions from a live audience, as well as and online communities including Facebook, YouTube, and Twitter.

Kicking off the event, Obama called healthcare one of the most important issues facing American families -- and one of the keys to long-term economic prosperity.

"We are at a defining moment for this nation," he said, reprising a reform theme from his campaign and confronting critics who say he is taking on too many ambitious proposals.

"America has waited too long," he said, to seriously deal with healthcare, as well as education and clean energy.

The president also addressed the concern that a healthcare overhaul designed to extend coverage to every American will cost too much -- more than $1 trillion over the next decade, according to most estimates.

"The costs of inaction, of doing nothing, are even greater and are unacceptable," Obama said, with healthcare inflation rising dramatically and increasing the federal deficit.

Beyond macroeconomics, healthcare problems are hurting real families every day, he said.

Obama vowed to get an overhaul plan through Congress this session.

"We are going to pass it this year," he said to applause. "That is my commitment. We are going to get it done."

But he cautioned that the most difficult work to passing a plan lies ahead. Naysayers are coming up with "every excuse and scare tactic in the book" to stall reform, he said.

To critics, he said he asks, what's their alternative and what they say to Americans who are without insurance or at risk of losing it.

"All of us are in this together," he said.

He urged the public to join the fight, saying that if Congress doesn't believe that Americans want real change, the lobbyists and special interests will carry the day.

(His full remarks, and the question-and-answer session, are below.)

Obama has mobilized his grassroots army to get the word out on healthcare. The post-election vehicle for Obama's campaign, Organizing for America, held a series of service-related healthcare events last week. And today, it sent supporters an email bragging about the turnout, including a video of highlights and a reference to a Boston Globe report about it.

"Last weekend, you were part of something big," wrote Jeremy Bird, the group's deputy director. "Americans like you came together across the country -- in community health centers, outside of supermarkets, in local schools -- to serve together and improve health care in your community. While serving your neighborhoods, you raised your voice and built momentum to finally fix this broken health care system. Thank you for your work."

A pro-Obama, Democratic grassroots group unveiled a new TV ad today, lauding the House for passing a landmark climate change bill and urging supporters to call their senators to do the same.

The spot, from Americans United for Change, is to air in Washington this week and asserts that the legislation will create millions of clean energy jobs. "It’s a foundation for America’s long-term economic success, making us world leader in clean energy," the announcer says. "The challenge is global. And the solution uniquely American."

After lots of arm-twisting by President Obama and his aides, and quite a bit of horse-trading, the House on Friday narrowly passed the bill on a 219-212 vote. It is designed to lower how much carbon is pumped into the atmosphere through a "cap-and-trade" system in which carbon emissions are capped and permits to pollute are given away or sold by the government.

But the bill faces tough sledding in the Senate, and some observers don't believe it will pass this year, though Obama wants final passage before he attends an international global warming conference in Copenhagen.

Obama and his allies are ramping up their grassroots efforts to put pressure on senators.

“Thanks to the extraordinary leadership in Congress, America has taken a giant leap towards becoming the global standard for clean energy while creating millions of new jobs in the process," Tom McMahon, acting executive director of Americans United for Change, said in a statement. "This historic legislation will help build a solid foundation for long-term economic prosperity by meeting President Obama’s challenge to reduce our nation’s dependence on foreign oil and curbing pollution that causes global warming. This ad is designed to encourage Congress to continue standing up to the forces of ‘status quo’ and move this historic clean energy jobs bill to the President’s desk as quickly as possible.”

UPDATE: Organizing for America, the current iteration of Obama's grassroots campaign organization, is sending an email today to thousands of members in Representative Ed Markey's district, urging them to call the Massachusetts congressman with thanks for his leadership on the energy bill.

"We know that historic change is always tough, and enacting clean energy legislation is no exception," wrote Addisu Demissie, the group's political director. "But, with your help, on Friday the House passed a historic energy bill -- a critical first step toward rebuilding our economy with good green jobs, reducing harmful pollution, and breaking our dependence on foreign oil."

Maybe Mitt Romney should look warily over his shoulder, lest a political calamity befall him, too.

Continuing President Obama's political good fortune, a growing list of possible Republican opponents in 2012 is falling by the wayside, often due to self-inflicted wounds.

Two weeks ago, Senator John Ensign of Nevada admitted a messy extramarital affair with a former campaign staffer, likely taking himself out of the running.

This week, Alaska Governor Sarah Palin took more hits in a scathing piece in Vanity Fair magazine in which unnamed aides to Senator John McCain, who picked her as the GOP vice presidential nominee last year, basically said she was not ready for prime time.

And, of course, South Carolina Governor Mark Sanford keeps digging his political grave deeper and deeper, confessing on Tuesday to indiscretions with women other than his Argentinian mistress, whom he called his soul mate.

Romney, the former Massachusetts governor who ran last year for the Republican nomination, has kept himself largely unscathed since Obama took office, even as he has kept himself omnipresent on cable TV. He has continued raising money for fellow Republicans, collecting chits along the way. He has burnished his foreign policy credentials, his weak area last year. In an attention-grabbing speech last month, he assailed Obama's national security strategy, asserting that the president is endangering America and unnecessarily apologizing on the country's behalf.

As the Republican field opens up before him, Romney's continuing strength could help explain why Democratic groups criticize him at every opportunity, often reviving the accusation that he will flip-flop on issues when to his political advantage.

On the first stop of the Obama administration's summer tour of rural America, Vice President Biden announced today that $4 billion in economic stimulus cash will be available in loans and grants to help bring broadband Internet service to unserved and underserved communities.

Of that amount, the Agriculture Department will invest $2.5 billion for broadband -- needed for quick downloading of videos and other web material -- in rural communities.

“Today’s announcement is a first step toward realizing President Obama’s vision of a nationwide 21st-century communications infrastructure – one that encourages economic growth, enhances America’s global competitiveness and helps address many of America’s most pressing challenges,” Biden said in Wattsburg, Pa.

The White House announced late this afternoon that top officials will go on the road this summer -- not to big cities, but to often-neglected rural areas to discuss how communities, states, and the federal government can work together to strengthen rural America.

Vice President Joe Biden, Commerce Secretary Gary Locke, and Agriculture Secretary Tom Vilsack will kick off the Rural Tour on Wednesday to visit Wattsburg, Pa., to discuss the issue of rural broadband.

“A healthy American economy depends on a prosperous rural America,” President Obama said in a statement. “Rural America is vast and diverse, and different communities face different challenges and opportunities. That’s why we’re going out to hear directly from the people of rural America about their needs and concerns and what my Administration can do to support them.”

The other stops scheduled so far:

July 16, Transportation Secretary Ray LaHood and Vilsack will travel to La Crosse, Wisc., to discuss rural economic development.

July 18, Energy Secretary Steven Chu and Vilsack will travel to Ringgold, Va., to discuss green jobs and a new energy economy, with a focus on weatherization and carbon sequestration.

July 20, Health and Human Services Secretary Kathleen Sebelius, Veterans Affairs Secretary Eric Shinseki, Labor Secretary Hilda Solis, and Vilsack will travel to St. John’s Parish, La., to discuss rural healthcare.

Aug. 12, Housing Secretary Shaun Donovan, Education Secretary Arne Duncan, Interior Secretary Ken Salazar, Chu, and Vilsack will travel to Bethel, Alaska, to discuss rural infrastructure, green jobs and a new energy economy, as well as climate change.

Aug. 16, Salazar and Vilsack will travel to Zanesville, Ohio, to discuss green jobs and a new energy economy, with a focus on renewable energies.

Aug. 17, Duncan and Vilsack will travel to Hamlet, N.C., to discuss rural education.

Sept. 28, Salazar and Vilsack will travel to Scottsbluff, Neb., to discuss production agriculture.

Sept. 30, Donovan and Vilsack will travel to Las Cruces, N.M., to discuss rural infrastructure.

The long-running political saga known as the Minnesota US Senate election is finally over.

After the state's Supreme Court today ended the recount and affirmed Democratic challenger Al Franken as the winner, Republican incumbent Norm Coleman conceded. That cleared the way for Franken to be seated, giving Democrats a potentially filibuster-proof 60-vote majority in the Senate -- and giving a boost to President Obama's agenda.

"It's over," Coleman said, congratulating Franken.

"Sure I wanted to win, not just for myself but for my supporters," Coleman told reporters.

But he said that further litigation would damage the state. "We have to focus on the future, and the future is that we have a new US senator," he said.

In his own news conference about an hour after Coleman's, Franken said he was "so thrilled" that he could finally celebrate his victory and excited to start work for Minnesotans.

"We have a lot of work to do in Washington, but that's why I signed up for this job in the first place," said the new senator-elect.

He said he would work on healthcare, education, renewable energy, and the economy.Franken said Coleman called and was gracious in defeat.

Franken said he expects to be seated next week, when Congress returns from its July Fourth recess.

But he cautioned that he wouldn't always toe the party line.

"I know there's been a lot of talk about the fact that when I'm sworn in I'll be the 60th member of the Democratic caucus, but that's not how I see it," Franken told reporters outside his downtown Minneapolis town house. "The way I see it, I'm not going to Washington to be the 60th Democratic senator. I'm going to Washington to be the second senator from the state of Minnesota, and that's how I'm going to do this job."

"I promise to do my best, to work hard, to stand on principle when I believe I must, and, yes, to compromise when I believe that that is in the best interests of the people of Minnesota," he added.

Minutes after Coleman's concession, the White House issued a statement from Obama: "I look forward to working with Senator-Elect Franken to build a new foundation for growth and prosperity by lowering health care costs and investing in the kind of clean energy jobs and industries that will help America lead in the 21st century.”

The unanimous ruling (read it here) affirmed a trial court's decision that after the recount, Franken received 312 more votes than Coleman out of more than 2.4 million cast last November.

While the result has been tied up in the courts, Minnesota has been without its second US senator as Congress has tackled major legislation on the economy and other issues.

Before Coleman's concession, allies of Obama and Democrats quickly called on Coleman to concede and allow Franken, a former "Saturday Night Live" comedian, to be seated.

“On behalf of the Democratic National Committee, I congratulate Al Franken on his election to the United States Senate. Senator-Elect Franken must be seated as soon as possible. The people of Minnesota rightfully elected Al Franken to serve in the Senate and there is far too much work to be done for the state and the nation to drag this process on any longer,” Democratic National Committee Chairman Tim Kaine said in a statement.

“Today’s ruling from the Minnesota Supreme Court marks the end of the line for Norm Coleman's legal battle. For too long, Minnesotans have been denied their proper representation in Congress while Norm Coleman pursued his political ambitions. In light of today's decision, Norm Coleman should concede and Governor Pawlenty should sign the election certificate which Al Franken is entitled to, and which he pledged to do upon guidance from the court. Doing so will finally put this saga to an end and give Minnesotans their full voice in the U.S. Senate."

“Now that the Minnesota Supreme Court has made its final ruling, it is time to recognize Al Franken as the duly elected Senator from Minnesota. As is appropriate after any extremely close election, Minnesotans took the time to conduct an extensive and thorough recount process, but now that all reasonable legal options have been exhausted, Minnesota deserves its full representation in Congress. We call on Governor Pawlenty to pursue the state’s best interests and end this contest instead of favoring those who would allow the recount to continue for purely partisan reasons," Anna Burger, chairwoman of the Change to Win labor coalition, said in a statement.

"America’s workers congratulate Al Franken – and the people of Minnesota who have gone 226 days without a second Senator – for their unanimous victory today in the Minnesota Supreme Court," added AFL-CIO president John Sweeney.

"Working families are facing many challenges including a tough economy, lack of health care coverage and an out of balance economic system where workers do not have a voice at their job. With these colossal issues at stake it is essential that Minnesotans have both their senators to represent them and we urge Governor Pawlenty to immediately sign the election certificate so Franken can get to work.

With South Carolina Governor Mark Sanford's latest admissions today that he saw his Argentine mistress several more times than previously disclosed, the state's attorney general said he has asked the State Law Enforcement Division to review all of Sanford's travel records to see if any laws have been broken.

And the S.C. Democratic Party released a web video interspersing TV talk show hosts and comics making fun of Sanford -- and fellow Republicans, including former Massachusetts Governor Mitt Romney, refusing to come to his defense.

"Governor Sanford's irresponsible conduct has made South Carolina into a national laughing stock, but his abuse of power is no laughing matter. When Americans think of South Carolina, we want them to think of our beautiful beaches and Southern hospitality, not lies and scandal," S.C. Democratic Party Chairwoman Carol Fowler said in a statement. "After embarrassing South Carolinians for two weeks, Governor Sanford expected to be able to return to work with no questions asked. This latest admission from Mark Sanford is precisely the reason why we've pushed the Attorney General and Republican legislative leaders to investigate all of the Governor's activities related to his extramarital affair. South Carolinians need to know if Governor Sanford's reckless, irresponsible behavior constituted illegal behavior."

In an interview with the Associated Press, Sanford said he met Maria Belen Chapur at what was to be a farewell meeting in New York chaperoned by a spiritual adviser soon after his wife found out about the affair in January.

He also said he "crossed lines" with a handful of other women, though he never had sex with them.

During what the AP called an emotional interview, Sanford said Chapur is his soul mate but he's trying to fall back in love with his wife. "This was a whole lot more than a simple affair, this was a love story," Sanford said. "A forbidden one, a tragic one, but a love story at the end of the day."

President Obama this afternoon praised a New Hampshire nonprofit that helps poor people buy fuel-efficient reliable cars in a White House event designed to highlight innovative programs across the country.

Obama named Robert Chambers, president and co-founder of Bonnie CLAC, who attended the event. He came up with the idea for the group after working at an auto dealership and seeing low-income individuals forced to pay high interest rates when they purchased cars, the White House said.

Bonnie CLAC helps clients build their credit records and offers advice on selecting and buying vehicles. Since its founding in 2001, Bonnie CLAC has guaranteed more than $12 million in loans for more than 1,200 clients, the White House said.

Such groups, Obama said, hold the promise of finding solutions to persistent problems and to meeting unprecedented challenges because government can't do everything.

The president paid tribute to leaders and staffers of nonprofits. "The hours are long and the pay could be better, let's face it," he said.

But, he added, "You teach us there's no such thing as a lost cause."

(His full remarks are below, followed by the White House release.)

Obama also highlighted the Harlem Children's Zone, which includes a preschool and charter school; HopeLab, a California group that helps young people with chronic illnesses; and Genesys Works, a Houston-based nonprofit that trains and employs high school students to get them into major corporations

"These programs and others like them have the potential to make progress in education, training, health care, and other areas in more communities across the country," the White House said. "The President will call on foundations, philanthropists, and others in the private sector to partner with the government to find and invest in these innovative, high-impact solutions. Now more than ever, we need to build cross-sector partnerships to transform our schools, improve the health of Americans, and employ more people in clean energy and other emerging industries. These community solutions will help build the new foundation for the economy and the nation."

President Obama this afternoon marked the milestone in the US war in Iraq: US troops left Iraqi cities and handed over control to the Iraqi military police.

Iraqis, he said, "are rightly treating this day as a day for celebration."

Obama plans to withdraw all US combat troops by August 2010, but the president said the US stands ready to help.

"Make no mistake, there will be difficult days ahead," noting the bombing today in Kirkuk.

But he said he's confident that the insurgents will fail and that the forces trying to pull Iraq into the "abyss" of violence are on the wrong side of history.

He also took time to praise US troops, who he said have completed every mission given to them. His full remarks are below:

With members of Congress back home this week for the July Fourth recess, left-leaning religious groups today announced a series of radio ads promoting the moral argument for a healthcare overhaul.

In the ads, local pastors say that the status quo on healthcare is “not who we are as a nation” and that “America can do better.” They will air on Christian and mainstream radio in Arkansas, Colorado, Indiana, Louisiana, Nebraska, and North Carolina -- the home states of key senators in the healthcare debate.

The faith-based push also includes meetings with members of Congress, sermons on healthcare, and a new guide to the healthcare debate for people of faith. The groups sponsoring the campaign are PICO National Network, Faith in Public Life, Faithful America, Sojourners, Gamaliel Foundation, and Catholics in Alliance for the Common Good.

Consumer activist Ralph Nader has a simple message for liberals feeling less warm and fuzzy about President Obama: "I told you so."

"Millions of Americans are feeling betrayed. They thought Obama as President meant change we can believe in. They thought Obama as President meant withdrawal from Iraq. They thought Obama as President meant standing up to Wall Street fat cats. They thought Obama as President meant a living wage," Nader, who ran a presidential campaign last year far less successful than his 2000 bid, said in an email to supporters today,

"But for those of you who stood with us during the 2008 Presidential campaign, you knew the score. You do not feel betrayed. You are immune to Obama Betrayal Syndrome," Nader continues. "Because you knew, as we pointed out repeatedly during the campaign, that Obama was the corporate Democrat. Beholden to large campaign contributors from Wall Street. From the military industrial complex. And from the health insurance pharma complex."

Nader's missive seeks donations for Single Payer Action, a new advocacy group pushing a healthcare plan along the lines of the national insurance plan in Canada.

Supporters of such a plan say it is the only way to cover everyone while cutting costs, but Obama is not among them, saying that while it might make sense if starting from scratch, it makes more sense now to build upon the current system, under which most Americans get their health coverage through their employer.

To combat critics who call his plan socialized medicine, the president reassures that he would not force anyone to change their coverage.

But Nader's new group isn't giving up. Single Payer Action members have confronted members of Congress in their home districts to press them on the issue.

"Let's break through the corporate barriers and make single payer for all a reality," he says in the email. "Together, we can make the difference. Onward to a life-saving, cost-saving single payer."

Senator Edward M. Kennedy sent a letter today to Massachusetts college leaders, urging them to make sure students know about a new program that makes it less expensive to repay student loans.

Under the program that starts Wednesday, monthly payments are capped based on a graduate's income and remaining balances are wiped clean after 25 years. Those who take public service jobs can get their loans forgiven after 10 years.

"A college degree has never been more important. Yet it’s increasingly difficult for students to afford. In particular, the prospect of heavy loan burdens is discouraging more and more students from attending the college of their choice, or pursuing jobs in the public interest. More than two-thirds of college students graduate with federal loan debt averaging $20,000 after graduation," wrote Kennedy, chairman of the Health, Education, Labor, and Pensions Committee .

"College affordability has long been a major concern of mine in the Senate and I’m writing now to draw your attention to a new option – Income Based Repayment – that will make loan repayment easier for students, no matter what job they take after graduation. If you haven’t done so already, I urge you to inform your students about it."

His full letter is below:

President Obama isn't giving gay rights activists any of the major legislation they want so far. But he is giving them some face time at the White House this afternoon.

The administration invited 250 leaders of the gay community to a commemoration of the 40th anniversary of the birth of the gay rights movement -- the protests that followed a police raid of the Stonewall Inn gay bar in New York.

But despite campaign promises that activists saw as pledges of quick action, Obama has put on the back burner bills to rescind the 1993 "don't ask, don't tell" policy that prevents homosexuals from serving openly in the military and to overturn the 1996 Defense of Marriage Act that defines marriage as between men and women and allows states to ignore gay marriages performed in other states.

In his remarks at the event, Obama asked for patience and reiterated his pledges to overturn "don't ask, don't tell" and the anti-gay marriage law.

"I know many in this room don't believe that progress has come fast enough. And I understand that," Obama said. But by the time he leaves office, the president said, "I think you guys will have pretty good feelings about the Obama administration." (His full remarks are below.)

The president also said he is committed to passing employment discrimination and hate crimes bills that cover sexual orientation, winning applause from those in the East Room.

Among those activists at the reception was Jarrett Barrios, a former Massachusetts state senator who is incoming president of the Gay & Lesbian Alliance Against Defamation.

"It was an honor to take part in this important event for the gay and transgender community with fellow advocates and my 17-year old son," Barrios said in a statement afterwards. "Today's event, the first time that Stonewall was commemorated by the White House, was a symbol of the fact that the administration recognizes our community at a time when there has been growing frustration about his administration's seeming reticence to follow through on campaign promises."

"During his speech today, President Obama said that the road to equality is not only about changing laws, but about changing hearts. Indeed, legal advances are vitally important, but full equality requires us to move our culture - through conversations, living openly in our communities, and through media representations- to a place where gay and transgender Americans are accepted and understood.

"Our community will continue to advocate and will be watching closely to ensure Obama makes good on the promises he discussed today and during the campaign. At the heart of the issues discussed today are everyday Americans who want the same chance as everyone else to earn a living, be safe in their communities, serve their country, and take care of the ones they love."

His supporters say he does not want to alienate conservative Democrats and moderate Republicans, whose votes he needs to pass major legislation on healthcare and other priorities. But critics and some gay activists say he is turning his back on some of his most loyal backers.

Earlier this month, Obama did sign a presidential memorandum, extending benefits to the same-sex partners of federal employees in the civil service and the foreign service.

"For civil service employees, domestic partners of federal employees can be added to the long-term care insurance program; supervisors can also be required to allow employees to use their sick leave to take care of domestic partners and non-biological, non-adopted children. For foreign service employees, a number of benefits were identified, including the use of medical facilities at posts abroad, medical evacuation from posts abroad, and inclusion in family size for housing allocations," the White House said.

But Boston University law professor Robert Volk says that short of overturning the "don't ask" and anti-gay marriage laws, "Obama is very limited in the steps he can take to reverse discrimination.

“Absent repeal of these laws, however, the president could ease up enforcement of the 'Don’t Ask' policy by halting legal actions to discharge gay or lesbian soldiers. He could also stop defending DOMA in the courts," Volk said in a statement.

“For these laws to change, the president has to take a strong stance against them, as Congress is unlikely to act absent some prodding from the White House.”

"His recent announcement that he will grant benefits to federal employees’ same sex partners is really just window dressing, as it does not include health benefits," Volk added in the statement.