announced the wrong winner. the right one? "moonlight" takes home the top prize after the ending. we have details on how it happened. >> awkward. hollywood's biggest night had its share of political their own message of inclusion. this as the president heads to capitol hill tomorrow to make his first address to a joint session of congress. a lot of news to get to so let's begin with stephanie live in los angeles. what a night. >> what a night. we haven't slept here. it's like it just happened. it's what everyone is talking about allison. the big snafu at the end of a pretty good show for the oscars but when you saw what was happening here people were tripping over themselves to take a look at the screen because they couldn't believe it. in case you missed it, here's what happened. >> la la land. >> the academy awards are billed as hollywood's biggest night but

this year's ceremony ended with what could be one of the biggest screw ups in it's history. >> i'm sorry. no, there's a mistake. moonlight, you guys won best picture. >> this is not a joke. >> this is not a joke. i'm afraid they read the wrong thing. >> this is not a joke. moonlight has won best picture. moonlight. best picture. >> it was a la la land producer that announced it. >> i'm a little bit in a daze. they just handed us an envelope and we just started accepting and everybody came up and then there were people with head sets that started coming out on the stage and it was suddenly clear that something wasn't right. >> the reactions backstage were equally confusing. >> is that the craziest oscar moment of all time? cool. guys we made history tonight. >> i noticed the comotion that was happening and i thought something strange had occurred.

and then i'm sure everybody saw my face but i was speechless. >> after the mistake the biggest prize was corrected moonlight ended with three wins. adapted screen play and actor in a supporting role. >> it's not about you. it's about these characters. you're in service to these stories and these characters and i'm so blessed to have had an opportunity. >> a new record was set for the most black oscar winners in a single year with five taking home awards in four different categories. >> it's important that we take a second to appreciate what is happening here. we're at the oscars, the academy awards, you're nominated. your families are nominated. some of you will get to come up here on the stage tonight and give a speech that the president of the united states will tweet about in all caps during his

5:00 a.m. bo 5:00 a.m. bo werks l movement tomorrow. >> it was the best foreign language film win by the iranian director where politics took center stage. >> in protest of president trump's travel ban in 7 majority muslim countries. >> dividing the world into the us and our enemies categories creates fears. a deceitful justification for aggression and war. these wars prevent democracy and human rights in countries which have themselves been victims of aggression. >> and obviously so much happened but it's all being overshadowed by what happened at the end with the best picture award. coming out with a statement saying that they apologize and it was an error made with the

envelopes handed out that it was not an error made. a lot of people will be trying to make sure that this never happens again. >> sometimes sorry ain't enough. thank you very much. joining us now to discuss cnn media correspondent and host of reliable sources. so carter, how big of a deal, how sure are you why it happened? and what should be done. >> it's a big deal. it's the biggest award they give and they messed it up. there was two envelopes for the best actress. how do you read that wrong. it doesn't say best picture. it doesn't seem that complicated but i think they have to come out with a little bit more thorough investigation of how the big's ward they have messed up. >> here's what we know.

there's two people that stand with these briefcases that have all the envelopes. it's like the nuclear football. that's what it looks like. they hand the activities tors and presenters what is going out. but it's never happened before so i don't blame warren beaty but that's why he had that pregnant pause where he was trying to process what was happening. so whose fault is this? who is going to take the fall for this? >> i don't think we can blame the actors for reading their scripts. it said emma stone and then it said la la land. she goes ahead and reads it. she is reading her lines. ultimately this is about price waterhouse coopers. which has 83 years of doing this. >> but they are like the place kicker of the oscars. they only count when they screw it up and right now after 83 years they are known best for

the blunder and whether they continue doing it will be called into question. let's replay the moment. >> and the academy award for best picture -- >> la la land. >> first of all, did warren beaty throw her under the bus there when he had confusion about the envelope? and he showed it to her a producer wound up making it good from la la land. he is the one that wound up connecting the dot and what was your take on how it played out. >> the producer deserves a ton of credit. he's in the middle of a moment where he is handed an oscar and he says we didn't win and he has to announce it to the crowd and

the crowd doesn't believe him and it plays like a comedy bit or something soy give him a lot of credit. i think he did a good job but i'm completely baffled by how this happened. how do you not make this clear to somebody. it's so simple. >> gave them the wrong envelope. >> but they also managed to put a live person's picture in the in memorium event. they didn't do a flawless show. >> that's funny. >> if the person still alive it's funny. >> right. >> it's almost like they almost shared the award though because they were both giving speeches. la la land did win six awards. >> that's embarrassing that they went up on stage and they had that whole moment but there was also politics that people were watching. we'll figure out who was to blame and that will come out but in terms of the politics there were interesting moments.

the director for the winner for foreign language boycotted because of it. >> he wasn't sure if he would be able to come to america for the oscars because of the travel ban. he could have potentially come to the or cars but he decided to boycott. so we saw the woman reading the statement on his behalf instead talking about the travel ban being inhumane and saying empathy, films provide empathy and that's what he was trying to do for this film. >> i thought there would be a lot more of it in a way. most of it was done pretty tastefully. he had some very good jokes pointed at trump and i think this was an interesting protest and then you have the idea that they couldn't get in the country because something was going on with his visa and there were

points made about how uncomfortable he was with the policies. i expected it might have been more vicious than it was. >> the advertisers went all in. some of them. other advertisers taking advantage of the moment. >> let's play that. let's play the cadillac ad getting a lot of attention. >> we are a nation divided. that's what they tell us, right? this between us, but what they don't tell you, what doesn't make the news is this. we carry each other forward. no matter who we are or what we believe, or where we come from. >> that's an interesting ad because what they're saying is that you have a choice of what prism at the moment you want to see the country through and you can either see it as divided and

toxic or you can see it as strong and united and they're sort of giving you that alternative view. >> they are. >> of that we're still a strong united country. >> there's many politicians presenting that toxic view. it's interesting to me that corporate america is better now at inspiring us to have our common value than most of our politicians are. >> it's a commercial though bill, right? and reality is complex. this isn't a binary choice. is everything bad or is everything good? but what do you think the net plus minus is for cadillac? >> i thought cadillac ad came off very well. i did think so. it's a very high inspiring sort of ad. it's interesting to see how dominant this political discussion has become. it's all encompassing and better now. we wake up with it and we go to bed with it. the next morning we talk about

it and it's dominant and dominates not just the or cars but the commercials in the oscars. >> it's not just politics. it's become the narrative of what's going on in this country. who we are, what we're about and what will happen. >> we should also mention that the most black actors ever won this year and the first muslim actor. >> one year after the oscars so white hashtag. one year after so much deserved criticism for the academy for the lack of diversity and these aren't problems that go away but it was inspiring to see the first muslim actor winning for best supporting actor. there were moments that showed the diversity of the country. >> thank you very much. the trump administration expected to reveal it's budget proposal today. a joint session of congress tomorrow night. the plan is expected to increase military spending and make drastic cuts to several federal agencies. all of this as a leading

republican joins the call for an independent investigation to trump's team to russia live at the white house with more of what's the latest, joe. >> good morning, call it an early peak at the budget blueprint the white house is putting together and another promise apparently to avoid cutting some of the key entitlements and certain other government departments are less likely to escape the budget acts. president trump expected a call for substantial increase in military spending in massive cuts to several federal agencies and in the budget proposal. the plan targeting agencies including the environmental protection agency while aiming to protect security and health

care. >> i think you're going to see something very, very special. >> trump repeating criticisms and vowing to scrap obamacare despite a lack of republican unity around any plan. >> it doesn't work. we're going to have it fixed. we're going to repeal and replace. >> ahead of a joint session to congress tuesday night trump trying to project an image of success. >> a lot of fun but we have accomplished almost everything we have started at to accomplish. >> this amid growing calls for an independent and russians known to u.s. intelligence and leaders on both sides of the aisle saying a justice department lead by attorney general jeff sessions cannot be impartial. >> you cannot have a friend of mine jeff session who is was on the campaign and who was an appointee. you need to use the special prosecutor's statute. >> he wants to recuse himself.

>> the american people need to understand whether the russians in cahoots with the trump folks and others -- >> attempting to kwaush the headlines tweeting russia talk was fake news played up in the media in order thomas k the big election defeat and the illegal leaks. the white house taking unprecedented measures to clamp down on leaks. press secretary sean spicer checking the work and personal phones of aids last week to make sure that they weren't using texting apps or corresponding privately with reporters. asking his staff not to leak information about the meeting or the track down effort. >> today the president will meet up once again with members of the national governor's association this afternoon with top republican members of congress in advance of his big speech on capitol hill tomorrow, chris. >> another headline, president trump's nominee for secretary of the navy with drawing his name. he is citing complications with

his business interests. this isn't the first time we heard about this. one of the nominees concluding that they couldn't satisfy rules. sean spicer said he was 100% committed to being the navy secretary as reporters began to surface. >> the president is expected to reveal his budget proposal today. what does it mean for you? our panel takes that on. can a toothpaste do everything well?

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♪ i'm ready for you everybody wants a piece of ready. cintas, ready for the workday. big boost in military spending as well as major cuts to several federal agencies. we are expecting to get a more specific preview of the president's plan in just the next few hours so let's bring in cnn political analyst and senior congressional correspondent for the washington examiner david drucker. national reporter for bloomberg politics and political analyst

and washington post reporter abby phillip. help us with the path here. >> which we don't know yet. this is going to be good. >> we know a little bit but get out your calculator because the president is expected to call for a big increase in military spending. he wants tax cuts for the wealthy and no change to social security and medicare. >> i feel like i should make an oscar's joke here. the president campaigned on increasing military spending to rebuild a military that does need a lot of rebuilding when he adds in military spending and big tax reform that will eventually probably be dynamically as long as generating economic growth. can that all balance to satisfy conservative republicans that say they want everything paid for and at the end of the day these things usually don't

balance in the immediate. usually you don't come up with numbers that make them balance but i think that trump can get them to spend the money anyway so that's the real question here. not so much is it going to balance? that's an important policy question but the political question is will republicans on the hill go along with the president when he wants to spend money and by the way if you do not cut, if you do not reform medicare and social security the biggest drivers of federal spending we have they go automatically every year by law without touching a thing you can't swear that circle over a ten year period but they're going to do it anyway because their voters want them to follow trump and they're not going to be able to resist that. >> but let's talk about this from the business perspective. i mean, this is the strong suit of the tea party. they are deficit hawks and debt reduction people and this will be the first face-off with the president. we have to give him the benefit of his own numbers. we'll see what they did.

it's addition by subtraction to the bottom line. how do we see this first face-off between the tea party and trump. >> well, keep in mind the numbers that are in trump's mind right now and that's his job approval number which is are in the low to mid 40s so you know he's going to be wanting to work on this. this budget outline that's coming up today is trump's first bid. his first sketch and first outline telegraphs what he is interested in, where he wants to cut but he is trying to get it all out there and send an alert to people that this is what he is interested in and get the poll numbers out. it doesn't mean that congress has to adopt it and might not but he wants to get the plans out there and work on explaining to people that he's going to follow through on the campaign promises. >> who in congress might fight this today? >> there will be a lot of, i think questions raised by some of the deficit hawks in

congress. there's no way to do all of the things that trump wants to do without doing really big things and probably the biggest one of all is going to be tax reform. i think most of these other priorities really can't get off the ground unless congress is able to agree on tax reform. unless congress and the white house are able to agree on tax pedestrians form and at the moment there's big disagreements on this idea of a mortar tax and whether or not trump supports that idea but these are big pillars of the republican agenda that have to be in place in order to find the money to raise spending and do infrastructure spending partly because making cuts to foreign aid is not going to come one sufficient funds to

counter balance increases in spending. there will be deficit hawks at least raising the spending. i don't think they want to go through a fight with the white house on this. politics is policy here and it will be a bad headline for republicans if they suddenly start seeing the front pages of major newspapers that they are going on a spending spree and not paying for it. >> one of those deficit hawks is making his marks on a different issue. >> he says he needed a special prosecutor on the russia questions with the white house. those are bold words. what's your take? is this some kind of nod to him being in california and barely winning that district? or is this something more -- >> a lot of this is local politics. his race was the closest in the country. it was the last race call in the country in the 2016 elections. there's been a lot of changes at his district. california. a lot of voters don't like the president.

he's watching his back ahead of a midterm cycle. with a republican in the white house anyway he's anticipating a tough fight to keep his job but i do think it means regardless of all of that that this issue of russia and the investigations into the president's connections to russia is not going away. what we want to look for overtime is are there republicans that aren't in districts and states as difficult that also begin to say the same things he is saying. >> you heard many say we have committees for this sort of thing. we have the intelligence committee in the house and the senate that can look into this. we're fully equipped to be able to look into this ourselves today. people are wondering about that. because the heads, the chairman of the senate and the house intel committee seem to be somehow compromised because they were talking to reporters

already saying they don't think there's any there about the ties. they haven't done the investigation yet. because it persists whether or not attorney general jeff sessions has been compromised in that way. how can those people be tasked with doing independent investigation. >> it's interesting cnn on sunday, chris christie that's an ally and former justice department official said we can trust the justice department to do this but then chris christie turned around and schooled the trump administration a little bit and said i have complete confidence in the chief of staff and his integrity but these guys need to, you know, understand what they're doing here. you shouldn't be communicating with the fbi so chris christie even opened the door a little bit saying we still have questions and these guys need to be doing things appropriately in keeping a wall. >> it's hard. it's going to be hard for these

leaders in congress to keep their integrity up when it's now open knowledge that the white house came to them and said tamp down these stories and they went along with it. >> thank you very much. >> the father of a u.s. navy seal killed in yemen slams president trump. what he is demanding from the president, next.

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s.e.a.l. killed in a terror raid in yemen refused to meet with trump when his son's body came home. he is demanding an investigation into his son's death. >> a gold star father. his grief must be respected and condolences offered. we have seen this before when parents want to know more about how their loved ones fell on the battlefield. this is a dad that wants to know everything. let me read you a couple of quotes about an interview he gave to the miami herald. why did there have to be this stupid mission when it wasn't even barely a week into his administration. the trump administration. for two years prior there were no boots on the ground in yemen.

everything was missiles and drones because there was not a target worth one american life now all of a sudden we had to make this grand display. he said don't hide behind my son's death to prevent an investigation. i want an investigation. the government owes my son an investigation. well, there are three reviews going on right now into the civilian causalities that occurred during the incident. into the crash of an aircraft during the incident and a standard fact finding investigation into the navy s.e.a.l.s death. what his father wants would go much further. an investigation into the white house decision making about why they did this mission in the first place. allison. >> yeah. the father makes a compelling argument and it's of course heartbreaking to hear from him. barbara thank you for all of that. well the president is talking health care reform with governors today. what's the latest plan to repeal and replace obamacare? our panel explains why governors are so concerned. how

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>> many of those promises are already kept so we're very honored by that. and i -- [ applause ] >> thank you. >> that's president trump addressing the nation's governors at a dinner at the white house last night. today he expected to discuss health care reform. we have david drucker and abby phillips. where is the white house with repeal and replace of obamacare? >> well, by and large they're really allowing the hill to do most of the heavy lifting on this. the republican plan is going to essentially be what republican versus been proposing for quite sometime now. they're going to call it repeal and replace. i think most experts that look at the situation will say they're making some changes to it. some of those changes are circumstantial but the white house itself is not weighing in on the sort of like detail by

detail stuff. i am told that the president is very concerned mainly about coverage levels. he wants to know that that number of people that are covered under health insurance when they're finished making changes to the plan does not drop under his watch. other than that, they're allowing the hill to do the big lifting and the president is also, you know, in meetings one-on-one with, you know, governor kasich on friday and others over the weekend. governors last night and today is taking in information about this so we really don't know whether he is going to personally weigh in on some changes based on what he is hearing over the last couple of days and over the next few days. >> well, the issue is very clear here. especially for the governors. how are they going to ensure their low income people. if you pull the grants, the money being sent for medicaid expansion then they're going to have to pay.

the governors almost to a man and woman are saying we don't have the money. they heard presentations from other organizations that said if you pull the expansion money right now you're going to lose coverage. if you do tax credits instead of subsidies which a lot of republicans want to do, you will have people lose coverage, is that acceptable? >> well, we're going to find out. the president is concerned about coverage levels. he's going to be disappointed. republicans on the hill are less concerned with coverage levels than ensuring that people have access to coverage they want if they shoes to go and get it which is different than what obamacare does which is more of a guarentee of breerd coverage levels and the conflict here is that republican governors in states that have the medicaid expansion that go beyond the 50/50 fed state split and fully pay for the expansion into the middle class they don't want to see that roll back and not be

able to pay for it. they don't want to have to pay for it with state money. so the question here is with conservatives on the hill that want to roll back medicaid and don't want to provide extra money to pay for the expansion are they going to win or are the republican governors going to win? and the most difficult thing here is republicans are in a sense afraid to move on health care because they don't know what the president wants and the president isn't telling them what he wants because i don't think he knows. if left to his own devices he's more of a leftist on health care. he's fine with the government paying for it. >> ohio governor john kasich met with the president and spelled out his concerns for ohio to listen to this. >> there's very conservative republicans in the house that are going to say just get rid of the whole thing and that's not acceptable when you 20 million people or 700,000 people in my state because where do they go? where do the drug addicted go?

i don't understand everything that is going on with these town halls but what i think it's having an impact from the standpoint of hey, the people are watching and i don't think they mind reform but don't take everything away. >> there you go. that's the heart of the matter. what's happening at the town halls and what do you do if people lose coverage. >> that's exactly right. this is such a hot topic for the president today. i know that kasich's staff think they made in rodes with him. how many times on the campaign trail did he say we don't want people dying in the streets for not having health care. he said we're going to take care of these people and make sure that they're covered. he has a white house full of governors today bending his ear on this. meeting with health insurance ceos today and mitch mcconnell and paul ryan. we'll see his reaction. at the end of the day we'll see tweets on this. >> this isn't an open question.

and had coverage going down 51% if you got rid of the expansion of medicaid another one had a reduction of 30% if it winds up being a split cost where the state versus to pick it up. that's going to have to be what the political consequences here if you're going to cut these things. how is that playing now? >> but that means that the states have to pay and there's no way they can afford to cover

all of these people. so they have to subsidize that. what level of subsidy is going to go into the states is a huge, huge open question moving forward. >> panel, thank you for all the insight. >> all right. cnn of course is going to carry president trump's first address to a joint session of congress. live coverage begins at 8:00 p.m. eastern. >> tomorrow night. >> also one night after that address cnn will host the town hall with republican senators john mccain and lindsey graham. dana bash is going to moderate the conversation discussing the key issues they think the country are facing. join us wednesday night at 9:00 p.m. eastern. >> so the white house has another key position open again. what motivated the president's pick for naval secretary to walk away? what does it mean for the military? next. (vo) what's your dog food's first ingredient?

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college hockey player faces criminal charges after attacking a ref on the ice. more on the bleacher report hockey. always has it going on. >> this is the wrong time. freshman brandon day is reportedly charged with assault. this is in the final seconds of last night's junior championship game. take a look at this video. it's unreal. the team is down 7-4. 39 seconds left. he comes out of the penalty box. right over to the referee and drills down to the ice he goes. game was called after the incident. that's it we're done here. taken into police custody. cnn sports has reached out to the school for response to see what may have caused this flare-up. only lead one lap of the daytona 500 but it's the last one. bush made history.

it's the first time in the 59 years of nascar. and held the lead and the number 41 yard. that's because he couldn't. listen to this. >> fell off with 30 to go. i'm not going to have to look at it anymore. >> the more that i have run this race, the more i throw caution to the wind, let her whip and elbows out. >> so why look back as the prize lies ahead. three times at daytona over his career. he finally gets that win. >> elbows out. >> at 10-2. >> thank you very much. we have a development on this story for you. the father of the navy s.e.a.l. killed last month in yemen is now breaking his silence. why he did not meet with the president and the questions he wants answered, next.

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president trump's nominee for secretary of the navy has withdrawn his name from consideration. the challenges separating from business interests to satisfy the office of government ethics. let's discuss with this barbara star. and cnn military analyst. this isn't the first time we heard this. we had viola had to back out as well and this was accommodating ethics rules being too difficult. what's the plus-minus on this. >> you're right. it's not the first time. in fact also i would say vice admiral bob harang getswood indicated he might have adverse impact on his finances and not all that different. and for many of the people that

mr. trump is turning to that have deep financial interests that may be in new york it's difficult for them to separate from their business activities apparently without impacting their interests. after back and forthd for the last several weeks like mr. viola backing out. >> you dealt with situations like this in terms of, what are you going to have with leadership. what are your priorities going to be general? does it matter more if you're running a military branch or military department of operation than a traditional civilian. >> i think it does. a lot of people are looking up to you. leadership by example. they had not only do they have to meet the strict ethics requirements but they can't invest in things they have to make decisions on. when you talk about the acquisition programs in the army and the navy there's billions of

dollars in purchases every year and contracts that are late so as you go through the files and you go through the financial statements of these individuals and you say you're heavily invested in this company or that company and they're about to put something forward to the department of defense you can make a lot of money on this. will shah sway your decision? everyone will say of course it won't sway my decision. i've been in situations having to file nondisclosure agreement and financial agreements and tax reforms and it gives an insight into what the person has. what they might do and how they might be effected by various government programs. that's the point of the matter. >> just to be clear this is not in anyway to imply that he has a problem and he's doing this. i have very elaborate finances. it's complicated and i don't think kit satisfy you with divestment that winds up jeopardizing what matters to me

and my family. fair enough, how much of a surprise is this and how quickly will they find someone else? >> this is going back and forth for several weeks here. rumors around the building and the pentagon and the navy. he was in the position and was going to pull out and then secretary mattis issued a statement saying no. that he had assurances he was going to stick with it. now it looks like he's not. they're now going back to square one and looking for two key jobs. secretary of the navy, secretary of the army. two top civilian heads of the military branches involved in acquisition and involved in billions of dollars in purchasing and we're just over 24 hours away from the president announcing a huge increase in military spending that he wants

and these military branches to go through congress. >> it's not just that. if i may you're talking about the acquisition programs but until you get the secretaries of the various services you can't get the rest of the staff and there's over 400 political appointees inside the pentagon that worked for the secretary of the army and secretary of the navy. none of those have been appointed yet. >> you want somebody there to make a case. let's switch topics. the newest gold star parents we know about are going to be those of the chief from the navy s.e.a.l.s killed in this yemen raid. his father owens coming out and saying i want a real investigation. don't use my son's death to hide from the investigative needs here. you dealt with this before. the grief has to be tremendous.

such a huge loss to this family. the white house did use the death by saying anybody questions this situation is dishonoring that soldiers death. what do you make of this latest development. >> first of all i have done this. they lost their sons and daughter and it's never easy and you never want to points higher lit size it. there's always that grief that will hinge their understanding of the situation. they want more facts. the military is very good at conducting investigations. and investigation and they were all done and how to conduct operations and hi one case and

turned out to be an incident. so those are tough. those are always tough. >> all right. bar barbara what the father wants isn't always the military side of the investigation. he wants an investigation into how the white house made the decision to launch this raid and how that process went. we'll see how that happens. thanks to you for the insight as always. thanks to you our international viewers for watching. cnn newsroom is up next. for our new viewers new day is about to get after it. let's go. >> there's a mistake. moonlight you guys won best picture. >> a wrong envelope brings the academy awards to a halt. >> i was also holding my best actress in a leading role card that entire time so i'm not sure what happened. >> we accomplished almost everything we started out the accomplish. >> the budget will call for a substantial increase in military spending as well as