By Perry Bacon Jr.
Washington Post Staff Writer

When Sen. Arlen Specter (Pa.) left the Republican Party in April to become a Democrat the situation for the Grand Old Party was so dismal that even one of Washingtons most vocal Republican bashers House Speaker Nancy Pelosi (D-Calif.) declared that our country needs a strong diverse Republican Party.
But after looking as if they would drift into irrelevance Republicans are showing signs of being energized. The partys grass-roots activists at times moribund during last years presidential campaign have mobilized against President Obamas agenda vastly outnumbering Democrats at some of this months health-care town hall meetings.
After badly trailing the campaign of then-Sen. Barack Obama in raising money last year the Republican National Committee has raised more than the Democratic National Committee this year figures released last week show. Ahead of next years elections several potentially strong GOP candidates including popular Florida Gov. Charlie Crist have decided to run for seats in the Senate. In this years gubernatorial races polls show the GOP candidates ahead in both New Jersey and Virginia.
What has emerged in the last few months is a more confident GOP. Republicans who earlier this year thought they could not block a Democratic health-care reform bill and should focus on simply stopping one of its more liberal components -- a government-run insurance option -- have set their sights on forcing the president to dramatically scale back his proposal.
Still even leading Republicans offer their positive views with caveats a recognition that the party badly lost the last two elections and this year found two of its potential 2012 presidential hopefuls Sen. John Ensign (Nev.) and Gov. Mark Sanford (S.C.) embroiled in sex scandals.
Republicans are digging out of a pretty big hole and were not yet back to parity but its headed in the right direction said Minnesota Gov. Tim Pawlenty a leading figure in the party who is considering a 2012 presidential run. The mood of the grass roots has gone from one of discouragement and confusion in some cases after the last election cycle to one of concern about the direction of Obama to one of hope and optimism for a Republican comeback.
In an interview RNC Chairman Michael S. Steele said We have a lot more to do but added that weve stopped the hemorrhaging away from the party where our activists and candidates were saying I dont know if I want to play.
Democrats are dismissive of any GOP gains.
The president remains strong in public approval and people have more confidence in congressional Democrats than Republicans said Rep. Chris Van Hollen (Md.) chairman of the Democratic Congressional Campaign Committee. People have more questions about the health-care plan but that has not translated into support for the Republicans.
Democrats cast the GOP as simply eager to block things.
I think early on a decision was made by the Republican leadership that said Look lets not give him a victory. Maybe we can have a replay of 1993-94 when Clinton came in he failed on health care and then we won in the midterm elections and we got the majority Obama said on Thursday. And I think there are some folks that are taking a page out of that playbook.
Strategists in both parties caution that increasing anxiety about Obamas agenda has not translated into enthusiasm for Republicans. A Washington Post-ABC News poll released last week found only 49 percent of Americans express confidence that Obama will make the right decisions for the country down from 60 percent at the 100-day mark of his presidency. But only 21 percent think congressional Republicans will make the right decisions a number that has dropped eight points since January.
At town hall meetings in states such as Iowa opposition to Obama animates the Republicans who are turning out far more than any demonstrative enthusiasm on display for their own party a dynamic that GOP officials concede. The Republican brand said RNC communications director Trevor Francis remains severely damaged.
Steele acknowledged that the partys national leaders including himself arent popular with voters though he said Republicans running for office out in the states have been embraced.
Some people may not like the messengers but they like the message were putting out there he said.
Other challenges also remain. Steele said the party must do more to expand its base to black and Latino voters to win elections. In addition a moderate-vs.-conservative split remains unresolved in the party.
Crist is facing a primary challenge from Marco Rubio a young Florida conservative who has attacked him for supporting the economic stimulus plan Obama championed. In Iowa conservative activists have threatened to campaign against Sen. Charles E. Grassley (Iowa) -- a reliable party-line vote -- if he backs a bipartisan health-care bill. If the more conservative candidate wins either states GOP primary he might struggle in the general election against a Democrat.
Party strategists say Republicans still havent clearly defined their positive agenda even as they rail against Democratic proposals. David Frum a White House speechwriter in the administration of George W. Bush criticized Republicans for essentially defending the status quo on health care. He said the GOP strategy of attacking Obama for seeking to reduce the costs of Medicare puts the party in the position of defending a big and growing national program that it should be trying to reform.
Obama is helping them Republicans said Ron Bonjean an adviser to then-House Speaker J. Dennis Hastert (R-Ill.). But by next year it would be good to have an agenda of our own.
A few Republicans are declaring next years elections will be like those in 1994 when a completely out-of-power GOP won back control of the House and Senate.
I think the party has its greatest opportunity in the last 40 years said Jim Greer chairman of the Florida Republican Party.
Other Republicans are more cautious.
Were still a long way away from the elections said Rep. Eric Cantor (Va.) the No. 2 House Republican. I dont necessarily think that when you look at the governors races in our state and others its a Republican wave or a Democrat wave. . . . It was a historic election and the public was wrapped up in this notion of change but now I think what people are beginning to see is that all change is not good change.
Polling analyst Jennifer Agiesta contributed to this report.