Economy -- Fed Moves to Ease Credit Crunch: The Federal Reserve is making $200 billion in short-term loans available banks holding diostresed mortgage-backed securities. The Dow jumped over 400 points on the news, its biggest one-day gain in five years. Wall Street Journal. Budget Resolution -- Tax Debate Begins: Debate began in the Senate yesterday of the Baucus amendment (OMBW analysis). An "counter-amendment" on the estate tax proposing a $5 million exemption and a 35 percent tax rate is expected from Sen. Lindsey Graham (R-SC). Debate on the House budget resolution begins today (Summary of House amendments and substitutes). Earmarks -- Moratorium Amendment Gains: A proposal by Sen. Jim DeMint (R-SC) to ban spending via earmarks for one year has been gaining co-sponsors on both sides of the aisle, in advance of a Senate floor vote expected Thursday. The outcome remains uncertain -- while presidential candidates Clinton, Obama, and McCain support the measure, Senate leaders Reid and McConnell do not. New York Times. Federal Contracting -- Delinquency Bill Clears Panel: A bill to prohibit companies delinquent in their tax bill from contracting with the federal government was approved by the House Oversight and Government Reform Subcommittee on Government Management, Organization and Procurement yesterday. It is expected to be approved by the full committee on Thursday. Bill Summary.