The Wall Street Journal’s Amy Schatz has a report on a Federal Communications Commission proposal to expand broadband: the FCC wants to spend $25 billion, including $16 billion for a wireless network for police and firefighters and $9 billion to bring broadband to rural areas. The plan sounds pretty good if you’re a cop, firefighter or one of the four percent of American households that can’t access high-speed internet.

But the plan sounds really good if you’re Verizon or AT&T — the FCC proposal makes no assertions that the telecommunications giants have to share their broadband lines. FCC says they’re reviewing the “state of competition” in broadband. But it might be easier to have Verizon and AT&T make concessions now when billions of federal money is on the line.

NYT
Banks to Prepay Assessments to Rescue FDIC – Stephen Labaton
Immigration Crackdown With Firings, Not Raids – Julia Preston
General Says Iraq Troop Reductions May Quicken – Thom Shanker
From McChrystal’s Mouth to Obama’s Ear – Peter Baker
Nano-materials Under Study by the EPA – Cornelia Dean
Cash Squeeze Said to Deny Legal Aid to Poor – John Schwartz
In Harsh Reports on SEC’s Fraud Failures, a Watchdogs Urges Sweeping Changes – Zachery Kouwe

Washington Post
Employees Face Big Hike in Health-Care Costs – Steve Vogel
Success Against al-Qaeda Cited – Karen DeYoung and Walter Pincus
Retired Officers Push to Close Guantanamo Prison – Peter Finn
US, Cuba Held Extended Talks – Mary Beth Sheridan
FDIC Seeks Fees to Shore Up Reserve – Zachary Goldfarb
Pentagon Set To Vaccinate Troops, Assist In Flu Crisis – AP
Foreclosure Rate Rises 17 Percent – Renae Merle
Internet Speeds Are Often Slower Than What Consumers Pay For, FCC Finds – Cecilia Kang

WSJ
Firms Warn of Delays From FDA Scrutiny – Alicia Mundy
US General Says Iraq Exit Is on Track – Yochi Dreazen
Schools Push Hits the Road – Neil King Jr.
House Panel Set to Start Work on Consumer-Finance Agency – WSJ
Clinton Site Gets a Taste of the Stimulus Pie – Louise Radnofsky (GIMBY)
EPA to Delay 79 Mountaintop-Coal-Mining Permits – AP
SEC Faults GOP Fund-Raiser – Craig Karmin and John Emshwiller
Full Web Access Is Pegged at $20 Billion – Amy Schatz

Washington Times
US Holds Hush-Hush Talks With Cuba – AP
FEMA Rushes To Help Tsunami Victims in South Pacific – AP
‘Myth’ of Gitmo Closure Dismissed – Ben Conery

Bloomberg News
Fed Proposes Rules to Implement Credit Card Law – Jeff Plungis
‘Clunkers’ Hangover May Trim US September Car Sales – Katie Merx and Keith Naughton
Odierno Accelerates US Troop Withdrawal as Iraqis Take Charge – Viola Gienger
Federal Reserve Appeals Order to Disclose Emergency Bank Loans – Mark Pittman

NYT
Abortion Fight Complicates Debate on Health Care – David Kirkpatrick
In Some States, a Push to Ban Mandate on Insurance – Monica Davey
In Pitch for Games, a Gamble for Obama – Peter Baker and Juliet Macur
Guantanamo Deadline May Be Missed – Peter Baker and David Johnston

Washington Post
Senate Finance Committee Rejects Both Public Option Amendments – William Branigin
Federal Employee Health Care Costs to Jump 8.8% – Ed O’Keefe
Defense Bill, Lauded by White House, Contains Billions In Earmarks – R. Jeffrey Smith
Farmers See Ray of Hope in USDA Bias Case – Kari Lydersen
In Building Afghan Army, It’s Back to Basics – Walter Pincus
Equal Raises for Defense Employees in 2010, No Matter the Pay System – Steve Vogel
Report Questions Security at National Parks – Ed O’Keefe
FDIC Proposes Collecting Prepaid Insurance Fees From banks – Zachary Goldfarb
More Help Coming to Clean Up Crisis – Renae Merle and David Cho

WSJ
SEC Weighs New Rules For Lending of Securities – Kara Scannell and Craig Karmin
Senate Committee Rejects Public Option for Health Overhaul – Patrick Yoest
Dodd Presses Case for Single Banking Regulator – Jessica Holzer
FCC Puts Universal Fast-Internet Cost at $350 Billion – Fawn Johnson
FDIC Fund to Be in Red for Years – Damian Paletta and Michael Crittenden
Michigan Broker Charged in Ponzi Case – Sarah Lynch and John Kell (GIMBY)
Road Project Tests Power of Stimulus – Tamara Audi
Foes Take On ‘Uptick’ Rule – Scott Patterson
EPA Tells Schools to Test Aging Caulk for PCBs – AP

Washington Times
US Eyes New Sanctions Against Iran – AP
Public Option Fails in Senate Committee – Jennifer Haberkorn
Obama’s Protectionist Policies Hurting Low-Income Americans – Daniel Griswold
Obama Pushes Longer School Days, Shorter Breaks – AP
FDIC: Bank Failures To Cost Around $100B – AP
FDIC Mulls Banks Coverage – AP
Porn Surfing Rampant at US Science Foundation – Jim McElhatton

Bloomberg News
Banker-Pay Limits May Hurt Citigroup, Bank of America – Ian Katz and Christine Harper
Housing Agencies May Get $35 Billion in Treasury Aid – Dawn Kopecki
CVS, Medco Profits May Narrow on Contract Overhaul – Carol Wolf
Fed’s Strategy Reduces US Bailout to $11.6 Trillion – Mark Pittman and Bod Ivry
FDIC Proposes Banks Prepay Deposit Fees Through 2012 – Alison Vekshin
Federal Reserve Proposes Rules to Implement Card Law – Jeff Plungis

NYT
US Is Seeking a Range of Sanctions Against Iran – Mark Landler
Don’t Blame Flu Shots for All Ills, Officials Say – Donald McNeil Jr.

Washington Post
On Medicare Spending, a Role Reversal – Lori Montgomery
On the Watch for Flu and More – AP
The FCC’s Heavy Hand – Unknown
No Deadline Set for Decision on Troops – Bob Woodward
Iran Tests Missiles on Eve Of Talks – Walter Pincus and Karen DeYoung

WSJ
States Rush to Avoid Losing $9 Billion in Highway Funds – Christopher Conkey
Stimulus Funds Speed Transformation Toward ‘Smart Grid’ – Rebecca Smith and Ben Worthen
New Appliances, in Sync With Meters, Shift to Energy-Saver Modes When Told – Rebecca Smith
$35 Billion Slated for Local Housing – Deborah Solomon
Use of Federal Health Clinics Soars – Jared Favole
White House Affirms Gitmo Will Be Closed Despite Hurdles – Evan Perez
Obama Talks Tough on Iran – Jared Favole

Washington Times
McChrystal Talked to Obama Once – Amanda Carpenter
Gates: Afghan Exit Timeline ‘A Mistake’ – Sean Lengell
Head Start Expands For Migrant Children – AP
Social Security Hurt By Job Losses – AP
Hard-pressed Leaders Pass Nuisance Taxes – David Dickson (GIMBY)
Fresh Bailouts Weighed For Smaller Banks – AP

Bloomberg News
Negative Bond Returns Converge With Mortgage Miracle – Daniel Kruger
Yemenis Pose Threat to Obama’s Plan To Shut Guantanamo Prison – Janine Zacharia and Justin Blum

NYT
FDA Reveals It Fell to a Push by Lawmakers – Gardiner Harris and David Halbfinger
Senate Panel Rejects Bid to Add Drug Discount – Robert Pear and Jackie Calmes
Veterans Report GI Bill Fund Delays – James Dao
Family Loses Suit on FEMA Trailer Safety – AP
New SEC Rule Heightens Risk of Insider Trading – Floyd Norris
$35 Billion Tanker Contract Opens – Christopher Drew
Fed Reducing 2 Programs for Emergency Lending – AP
Volcker Says Obama Plan Leaves Opening for Bailouts – AP

Washington Post
Early Findings Released on Census Worker’s Death – Ed O’Keefe
White House Regroups on Guantanamo – Anne Kornblut and Dafna Linzer
FDA Reports Political Pressure Over Implant – Lyndsey Layton
Agency Chief Makes the Case for Teleworking – Ed O’Keefe
For Obama Administration, Iran Disclosure Is Two-Fold – Glenn Kessler
SAIC to Move Headquarters to Tysons in Another Coup for Area – Kafia Hosh and V. Dion Haynes (GIMBY)
FCC Takes Sides in Net-Neutrality Debate – Rob Pegoraro

WSJ
Battle Brews Over Unused TARP Cash – Deborah Solomon and Michael Crittenden
Commit to Afghanistan or Get Out – Kori Schake
Gore-Backed Car Firm gets Large US Loan – Josh Mitchell and Stephen Power
House Passes Bill to Prevent Government Shutdown – AP
Air Force Resumes Tanker Contest – August Cole and Peter Sanders

Washington Times
Feds Disrupt 3 US Terror Plots – Ben Conery
Veterans’ Promised Tuition Checks AWOL – Audrey Hudson
Troubled Air Force Tanker Bid Process Set To Reopen – AP
Wall Street Bailout Doing OK – Sean Lengell
Jury Rejects Family’s FEMA Trailer Claims – AP

Bloomberg News
Treasury Looks at IRS Oversight of Nonprofits as Acorn Ties End – Jonathan Salant and Ryan Donmoyer
US Commerce Creates Office To Boost Entrepreneurs – Mark Drajem
Fed’s Strategy Reduces US Bailout to $11.6 Trillion – Mark Pittman and Bob Ivry
Fed’s Alvarez Audits Could Lead to Higher rates – Craig Torres and Scott Lanman
Warsh Says Fed May Raise Rates With ‘Greater Force’ – Craig Torres and Vivien Lou Chen

NYT
White House Pares Its Financial Reform Plan - Stephen Labaton
Immigrants Cling to fragile Lifeline at Safety-Net Hospital - Kevin Sack (GIMBY)
Federal Government Spends Stimulus Money Faster Than Expected – Michael Cooper
Obama to Use Current Law to Support Detentions – Peter Baxter
Acorn Sues Over Video as IRS Servers Ties – Sarah Wheaton
US Panel Shifts Focus to Reusing Nuclear Fuel – Matthew Wald
Fed to Lower Safety Net, but Gingerly – Edmund Andrews

Washington Post
Administration Won’t Seek New Detention System – Peter Finn
Geithner Presses For Regulatory Overhaul – Brady Dennis
Democrats Seek to Tighten Oversight of Surveillance Methods – Ellen Nakashima
McChrystal Request to Reach Pentagon by End of the Week – Karen DeYoung
Fed Prepares to End Mortgage Program – Neil Irwin
Pentagon Launches 3rd Try to Buy Refueling Planes – Jim Wolf

WSJ
Home Buyers get a Reprieve – Sudeep Reddy and James Hagerty
Employee of Perot Affiliate Charged With Insider Trades on Takeover Talks – Kara Scannell
Stocks Caught in Post-Fed Reversal – Geoffrey Rogow and Donna Kardos Yesalavich
FBI Probes Census Worker Hanging in Kentucky – AP (GIMBY)
Plan to Seek Detainee Law is Dropped – Even Perez
States Worry About Sunset of Stimulus – Louise Radnofsky
FDA to review Medical-Device Approval – Alicia Mundy

Washington Times
Obama seeks Economic Balance from G-20 – AP
McChrystal to request More Afghan Troops This Week – Eli Lake and Sara Carter
Liberals, Conservatives Rip ‘State Secret’ Policy – Ben Conery
White House OK With Limit On New Consumer Agency – Sean Lengell
Fed Keeps rates Low in ‘Weak’ Recovery – Patrice Hill

Bloomberg News
SEC Sues Over Trading in Perot Options – David Scheer and Jeff Kearns
IRS Ends Acorn Ties as Bipartisan Criticism of Group Continues – Jonathan Salant and Ryan Donmoyer
No Child Left Behind Law Viewed as ‘Toxic Brand,’ Duncan Says – Molly Peterson
Fed Plans to Reduce Size of Two Liquidity Programs – Scott Lanman
Fed Signals Growth Return Not Enough to End Stimulus – Scott Lanman

A major change in New York State’s approach to mentally ill citizens subject to state supervision took place more than 30 years ago, as the state moved people from hospitals to privately-run homes for the mentally ill. A judge has decided that the state’s action made it impossible for these people suffering from mental illness to live anything approaching normal lives or be a part of their communities, and New York State willl now be required to submit a plan for changing this policy. Read James Barron’s look at this story in the New York Times here.

James Dao of the New York Times looks at the Department of Defense’s struggle with the power of the Internet — should soldiers blog? As the DOD and individual armed services use Facebook and Twitter for their own outreach, they are increasingly limiting what service members are allowed to do on the Web.