From Reuters: 

President Bush has decided not to renew a program of domestic spying on terrorism suspects, Attorney General Alberto Gonzales said on Wednesday, ending an law-enforcement tactic criticized for infringing on civil liberties. 

"The president has determined not to reauthorize the Terrorist Surveillance Program when the current authorization expires," Gonzales wrote in a letter to congressional leaders. 

But wait, not only did the administration repeatedly say this was legal, but they also said as recently as the last few months that it was working.  Why would the administration want to abandon a tactic that is supposedly successful in curbing terrorism?