The Note's Must-Reads for Monday, November 26, 2012 PRESIDENT OBAMA: The Hill's Elise Viebeck: "Obama faces huge challenge in setting up insurance exchanges" The Obama administration faces major logistical and financial challenges in creating health insurance exchanges for states that have declined to set up their own systems. The exchanges were designed as the centerpiece of President Obama's signature law, and are intended to make buying health insurance comparable to booking a flight or finding a compatible partner on Match.com. SUSAN RICE: The New York Daily News" John Lauinger: "McCain softens stance against Susan Rice as potential successor to Clinton as Secretary of State" Sen. John McCain softened his rhetoric Sunday against President Obama's leading candidate to replace Hillary Clinton as Secretary of State. McCain has been one of the harshest critics of United Nations Ambassador Susan Rice, arguing that she damaged her credibility after the Sept. 11 terrorist strike on the U.S. consulate in Libya by claiming the attack was merely a spontaneous protest to an anti-Muslim film, not a pre-planned terror attack. USA Today's David Jackson: "Senators gird for Obama nomination of Rice" Senators continued preparing Sunday for what could be the first big battle of President Obama's second term: The nomination of Susan Rice for secretary of State. Sen. John McCain, R-Ariz., who has opposed the prospect of Rice's nomination, said the United Nations ambassador would get the chance to explain her statements following the Sept. FOREIGN AFFAIRS: The Washington Times" Sean Lengell: "Senators threaten to end aid to Egypt" As U.S. political leaders rebuked Egyptian President Mohammed Morsi on Sunday for his decree to assume sweeping new powers, police in central Cairo fired tear gas at protesters who accused him of a blatant power grab. Sen. John McCain, Arizona Republican, said that while the U.S. is thankful for Mr. Morsi's help facilitating a cease-fire between Israel and the Gaza Strip's Hamas rulers, he criticized Mr. Morsi's decision to give himself near-absolute power, which has prompted days of violent street protests in Egypt. FISCAL CLIFF: ABC News" David Kerley: "GOP Starting to Rebel Against No-Tax-Hikes Pledge" With the fiscal cliff looming for the United States, some Republican members of Congress said today they are ready to break a long standing pledge not to raise taxes. CONGRESS: Politico's Alex Isenstadt: "House Democrats face uphill slog in 2014" Nancy Pelosi decided to take one more crack at winning back the House, but a big obstacle stands between the Democratic leader and the speaker's gavel in 2014: the six-year itch. Pelosi's party will be swimming against the riptide of history. The party controlling the White House during a president's sixth year in office has lost seats in every midterm election but one since 1918, when Woodrow Wilson occupied the Oval Office. GOP: Bloomberg's Greg Giroux: "McCain Says Republicans Need "Bigger Tent" After Election" Republican losses in U.S. elections this month show the party needs "a bigger tent" and "a much more positive agenda," Senator John McCain said today. "It can't be just being against the Democrats" including President Barack Obama, McCain, an Arizona Republican who opposed Obama for the White House in 2008, said on "Fox News Sunday."