President-Elect Obama is Back in DC

President-elect Barack Obama is now in Washington, setting up a final march toward his inauguration two weeks from tomorrow. He'll meet with congressional leaders today and deal with the first hit to his young cabinet.

Obama will meet with bipartisan congressional leaders here this afternoon, aides say to get input on the stimulus package. It became clear last night that the power shift has begun.

It's the start of the changing of the guard: Barack Obama landed in Washington after an emotional departure from Chicago.

Photo gifts from his daughter's friend.

President-Elect Obama said "they've been friends since preschool. I just looked through the pages, the house was empty. It was a little tough."

Obama joined his family at the historic Hay-Adams hotel. It's a block away from the White House. Move in day in 15 days.

As his daughters Malia and Sasha start school today with Secret Service agents alongside.

Obama gets to work. He meets with congressional leaders on the economy.

Democrats now admitting a stimulus bill won't be passed by inauguration.

House Majority Leader Steny Hoyer said "I think that time frame is hopefully certainly by the end of the month."

Republicans are balking at parts of the plan: billions, for instance, aimed at states to bolster Medicaid they say should be loaned.

Senate Majority Leader Mitch McConnell said "nobody thinks we ought to be spending this money on things like Mob museums and waterslides. And if the money were lent rather than just granted, states would I think spend it wisely."

To win more GOP support Democrats are crafting some $300 billion in tax cuts, in impact rivaling Bush tax breaks.

Also on Obama's agenda: finding a new Commerce Secretary. Bill Richardson withdrew amid a grand jury probe of alleged kickbacks.

A first cabinet setback for the new administration.

An open question too is Obama's senate seat as Congress convenes tomorrow. Senate leaders say no to any choice by Illinois' indicted governor. On Wednesday, Obama lunches with Mr. Bush and the three living ex-presidents, a historic handover underway this week in earnest.