Senator Blanche Lincoln (D-AR), at serious risk of losing her seat thanks to her support for government-run health care, fought off a challenge from the left this evening, defeating Lt. Gov. Bill Halter (D) for the Democratic nomination. The two had been forced into a run-off. (Neither was able to secure 50% or more of the vote in the original primary vote.)

Anyway, Halter was backed by the union establishment. Don’t be misled. The unions will still easily prefer Blanche Lincoln over the Republican nominee, but labor was hoping to get an even more liberal Democrat in the race. The White House now reportedly believes that the unions wasted millions in membership dues on a lost cause.

A senior White House official just called me with a very pointed message for the administration’s sometime allies in organized labor, who invested heavily in beating Blanche Lincoln, Obama’s candidate, in Arkanas.

“Organized labor just flushed $10 million of their members’ money down the toiled on a pointless exercise,” the official said. “If even half that total had been well-targeted and applied in key House races across this country, that could have made a real difference in November.”

Union bosses aren’t fiscal geniuses? Go figure.

Seriously though, the union establishment is now reportedly spinning Halter’s loss as some sort of moral victory and a near-miss. Even now they can’t admit they were wrong and reckless, even as their buddies in the White House say as much.

Update: Jim Geraghty gets it right:

Labor’s $10 million spent in Arkansas wasn’t a pointless exercise; it proved the point that unions can’t prioritize spending, ever.

Like I said, I’m shocked — shocked! — that union bosses aren’t fiscal geniuses.