WASHINGTON – FBI agents botched a terrorism investigation in Florida and tried to cover up mistakes, said Justice Department investigators, who also concluded that a high-ranking official retaliated against the veteran undercover agent who first pointed out the problems. The findings were included in a draft report by the Justice …

Join host Brit Hume and FOX’s Team Washington weekdays at 6 p.m. ET for “Special Report” — Find out what’s happening inside the Beltway and on the world stage on tonight’s show. • The Republican-controlled Senate passed legislation to cut federal deficits by $39.7 billion on Wednesday by the narrowest …

NEW YORK – Walt Disney Co.’s ESPN cable sports network is looking into distributing some of its television programs on Apple’s iTunes music and video service, possibly joining its corporate cousin in a landmark deal, ESPN and ABC Sports president George Bodenheimer said on Monday. Although ESPN has not held …

NEW YORK – The video-game industry saw software sales decline from 2004 levels for a third straight month in November as the launch of Microsoft Corp.’s Xbox 360 console helped erode demand for existing titles. U.S. video-game sales plunged 18 percent from last year to about $700 million in November, …

WASHINGTON – The Federal Reserve is expected to hike interest rates another quarter point today. But after 18 months in which the Fed has been pushing rates higher to keep inflation under control, the central bank appears to be getting close to the end of its rate increase campaign. However, …

RAHWAY, N.J. – An ailing woman who has sheltered dozens of foster children over the years received an early Christmas gift from one of them: a donated kidney. “I’m forever indebted to this young man for this gift,” said Phyllis Klingebiel, 68, of the foster son who lived with her …

WASHINGTON – About one in 20 adults in the U.S. is not literate in English, meaning 11 million people lack the skills to handle many everyday tasks, a federal study shows. From 1992 to 2003, adults made no progress in their ability to read sentences and paragraphs or understand other …

BAGHDAD, Iraq – More than 10,000 people marched through Baghdad on Tuesday in support of a national unity government of Sunnis and Shiites. Insurgent attacks killed six Iraqi policemen and two civilians in a fresh surge of violence. A lull in attacks followed the Dec. 15 parliamentary elections. But that …

CROSS PLAINS, Texas – Five people are dead and three others are missing as grass fires continue to roar across drought-stricken areas of Texas and Oklahoma, officials said Wednesday. In Cross Plains, Texas, a fire official said a search was on for three people who were unaccounted for after 25 …

WASHINGTON – Two weeks after being sued, the government said Thursday it put in place more safeguards to ensure that poor older people can fill their drug prescriptions on Jan. 1. In recent weeks, the government automatically has enrolled about 6 million people in private plans that will offer a …