As noted by Jim Romensko, a blog post on Fox News’s website lifted a paragraph directly out of an article from Politico. After this was pointed out, Fox News took down the post and replaced it with the following text:
Due to a reporting error, a March 1 FoxNews.com story on the timing and impact of the sequestration cuts used information from an internal research document that contained material previously published by other news organizations. The story did not properly credit the sources of that material, and has subsequently been removed from FoxNews.com.
The uncredited use of the material was unintentional, and FoxNews.com regrets the error.
Why not leave the post up, explain what happened in a note at the top, put the paragraph in quotes, and link to the Politico story? That seems like the best way to effectively report on the news and give credit where it is due.