The Justice Department is bringing new attention to the "potential criminal activity," poor planning, and faulty construction in the massive $736 million development of the U.S. embassy in Baghdad. During testimony at the House Oversight Committee, State Department Inspector General Howard Krongard revealed that one of the individuals under investigation is James L. Golden, who oversees the embassy construction project but was barred from Iraq earlier this year after he was suspected of altering evidence after a mortar attack. Meanwhile, Krongard has recused himself from involving himself in any investigation in the matter. (Washington Post)

The State Department has dropped its plan to force diplomats to take assignments in Iraq. Despite the fact that some diplomats called the “directed assignments” “potential death sentences,” volunteers have filled all of the empty 48 positions. (AP)

Watchdog groups are accusing the Democrats of attempting to reverse a White House policy of ensuring the timely public release of Congressional budget information. A newly released House-Senate conference report reveals Democratic plans to delay by several months the release of spending priorities. (ABC’s “The Blotter)

The Federal Emergency Management Agency wasted about $30 million in 2006 on maintenance for Hurricane Katrina survivor trailers, a U.S. government report says. FEMA spent the money on expensive contracts, inspections that never took place, preventative maintenance with falsified documents, and emergency repairs on non-FEMA trailers. (UPI)

Citizens Against Government Waste estimates that Congress will produce “at least 8,000 earmarks this year, costing U.S. taxpayers, $18 billion to $20 billion.” This mark is a $9 billion decrease from the days of GOP control. (Politico)

Senior Republicans on Congress's Joint Economic Committee called for the withdrawal of a report by the committee's Democratic staff that factors in "hidden costs" in the wars in Iraq and Afghanistan like the rising price of oil, paying for the care of the wounded, fixing damaged military equipment and interest on foreign debt. The report says the wars have cost the average family of four more than $20,000 -- some Republicans say the report is "unintelligibly confused." Others just think its politically damaging. (Washington Post)