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California misses budget deadline, readies "IOUs" California's lawmakers failed to agree on a balanced budget by the start of its new fiscal year on Wednesday morning, clearing the way to suspend payments owed to the state's vendors and local agencies, who instead will get "IOU" notes promising payment.
Obama hopes to persuade all Americans to accept homosexuality Obama says that while he's dedicated to expanding homosexual rights, many Americans still cling to what he calls "worn arguments and old attitudes."
Guard to seek volunteers for border The Obama administration is developing plans to seek up to 1,500 National Guard volunteers to step up the military's counter-drug efforts along the Mexican border, senior administration officials said Monday. The plan is a stopgap measure being worked out between the Defense Department and the Homeland Security Department, and comes despite Pentagon concerns about committing more troops to the border - a move some officials worry will be seen as militarizing the region.
North Korean ship 'turned around' A North Korean ship being tracked by the United States Navy on suspicion of transporting weapons to Burma has turned around, US officials have said. They said they did not know where the ship was now heading, but South Korean media said it was going home.
Iran shuts newspaper challenging Ahmadinejad Iranian authorities have banned a newspaper allied to presidential candidate Mehdi Karroubi after he denounced Iran's government as "illegitimate" because of claims of voting fraud in last month's election, a reformist political group said Wednesday. The closure of the daily Etemad-e-Melli, or National Confidence, is another blow by officials seeking to block media and Web sites critical of President Mahmoud Ahmadinejad, whose disputed June 12 re-election was confirmed this week by Iran's powerful Guardian Council.
California, other states face tough budget choices The California Senate has shut down for the night after failing to approve a stopgap plan to stave off the need for IOUs and ease the state's $24.3 billion budget deficit. Lawmakers there were among many around the nation who went up against a midnight deadline as the fiscal year ended for many states.
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Pentagon to deploy 20,000 troops for domestic emergencies The US Department of Defense plans to deploy 20,000 troops nationwide by 2011 to help state and local officials respond to terror or nuclear attacks and emergencies, The Washington Post said Monday.

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