AP - Two Democratic senators have asked the Treasury Department to investigate allegations that Iraqi leaders have embezzled or misspent billions of U.S. tax dollars intended for the country's relief and reconstruction.

AP - Congress enacted a massive farm bill Thursday with new and bigger subsidies for farmers, plus more food stamps for the poor.

AFP - A US House of Representatives committee has subpoenaed President George W. Bush's former political guru Karl Rove to testify in a fierce political row over the firing of federal prosecutors.

AP - Gen. David Petraeus said Thursday he is likely to recommend further troop reductions in Iraq but won't promise more details until fall — timing that plunges the four-star Army general into the heart of this year's presidential elections.

AP - An internal audit of $8.2 billion paid to U.S. and Iraqi contractors found that nearly every transaction failed to comply with federal laws or regulations aimed at preventing fraud.

Reuters - The House of Representatives on Thursday passed a $601.4 billion defense spending bill despite a veto threat by the White House.

AP - In a stunning vote that illustrated President Bush's diminished standing, the Senate on Thursday ignored his veto threat and added tens of billions of dollars for veterans and the unemployed to his Iraq war spending bill.

Reuters - The House of Representatives will vote again on sending the $289 billion U.S. farm bill to the White House to clear up an embarrassing clerical error discovered after the bill was vetoed, Democratic leaders said on Thursday.

AP - Gen. David Petraeus said that by September he could recommend further troop reductions in Iraq if security continues to improve.