Jack falls for a congresswoman he meets at a cocktail party and despite the fact that they hold opposite views, the couple agrees to put politics aside and have a secret affair. Meanwhile, Liz believes her Middle Eastern neighbor to be a terrorist and tips off Homeland Security, creating a big mess.

C.C. and Jack face a block in their relationship when C.C. decides to go public about the affair but Jack refuses. Meanwhile, Liz struggles to keep both Tracy and Jenna happy when the two find it hard to share the spotlight, while Frank makes fun of Toofer's Harvard education with bizarre results.

Jack and C.C. try to make their long distance romance work, Liz decides to invest in real estate, and Kenneth becomes addicted to caffeine.

In the second season finale, Jack moves on to a new job involving politics in Washington, but the position is not quite what he anticipated. Meanwhile, Liz suffers a pregnancy scare, Kenneth confronts rival page Donny when applying for a summer job, and Tracy works on his latest invention.