A federal loan program to build more fuel-efficient cars became the latest budget flash point, with House Republicans wanting to raid the fund to help pay for FEMA disaster aid. Senate Democrats refused to go along. The standoff comes in a bill that would fund the entire government beyond next week.
Top executives of Solyndra, a bankrupt solar-energy company, have declined to testify in a congressional hearing Friday, invoking their Fifth Amendment rights. The company is under investigation for a half-billion dollar government loan guarantee it received.
The president of the Palestinian Authority has asked the U.N. to recognize his state. The Israelis say such a move would violate past agreements and are threatening retaliation. U.S. and European diplomats are scrambling to head off what could be a diplomatic train wreck.