HUD secretary: I was just kidding when I said I broke the law. Don't believe me, I'm a liar.

Oh, I feel an investigation coming on!

As I noted earlier, there are really two issues here. First, the issue of denying government contracts based on the political views of the recipient, which appears illegal. But second, the issue of federal contracts being given out for political/electioneering purposes, which is most certainly illegal. See my analysis below.

PS One of my readers just wrote and raised a good point. How did the topic of the grantee's politics come up in the first place? It's hard to believe that you're trying to get money from the Bush administration and you just happen to bring up, out of nowhere, "oh yeah, by the way, I hate George Bush." Did the secretary veer the discussion to politics, inquire about the grantee's leanings, ask for a donation and/or help for the campaign?