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good evening. thanks for joining us. we begin with breaking news. knocked the legs e out of president trump's claim that president obama had him wire tapped. it is giving congressional investigators the bottom line. what are sources telling you about this report? >> a government official told me that there is nothing this this report that will corroborate a central claim made by the president of the united states that his predecessor barack obama ordered wire taps of him and spied on him in the presidential campaign. that told me the claim that the president made is false and the claim is not backed up by the records that were submitted from the justice department to the house today. this comes after this was released earlier in the afternoon to a classified

setting going into the briefing room where devin nunez, the chairman of the house reviewed it. i asked if these records will corroborate what the president said and he said i don't think so. adam schiff, the top democrat in the committee emerged from this room and he had not yet seen it, but he was about to review the documents in the coming hours and he said there is no question about this. the president's statements before and his tweets since and up to today. there was nothing in this letter that would prove president trump correct. it looks like a rebuke from the president's own department of justice. >> i know earlier there was indication that parts of the report might be classified. we may not find out what it said? >> there is a chance of that. this was a report read in a

briefing room with only one copy that was given to the house intelligence committee that they have to look and review earlier today. monday is a key moment when there will be a hearing. james comey will be among those who are testifying. he will be asked about this. what does he reveal publicly? we don't know. we are expecting according to some that he will back down the reports of wire tapping. that can be the first time he will reveal that. from what we understand, there is nothing that confirms what president trump has been saying. >> thank you very much for the breaking news. the latest is a string of what he claimed in the last 13 days, one official after another and lawmaker after another have come forward to say they have seen no evidence to back up the tweets. despite all that, reaffirmed the belief that he was wire tapped and did it in the most public

way possible, standing next to angela merkel in front of german and other journalists. she was eavesdropped upon by u.s. intelligence. he said this. >> as far as wire tapping, i guess by this past administration, at least we have something in common, perhaps. >> a joke. kind of charming, maybe, but based on something there is no evidence of. no evidence. yet the president of the united states continues to talk about it. he did use the word perhaps today meaning perhaps he was wire tapped by the past administration. maybe that's progress or the latest way the president is distancing himself from the bold and direct claims against president obama. perhaps it happened. when he tweeted about it 13 days ago, there was no perhaps in the tweets. the president mostly has been trying to distance himself for days it seems by attempting to

redefine what he meant. he didn't mean wire tapping. he put it in quotes. sometimes. he didn't really mean president obama or didn't mean himself. it was done to other people around him. now he is saying perhaps. in trying to defend the president, he created something of an international incident, angering great britain. sean spicer cited reports about surveillance and characterized reporting by the new york times and seemed to embrace an unproven allegation by a commentator on fox news. >> on march 14, andrew napolitano said three intelligence sources informed fox news that president obama went outside the chain of command and department use the nsa or the fbi and the department of justice. he used gchq, the initials for the agency. by having two people saying that the president needs transcripts,

the conversations involving president trump, he is able to get it and there is no american fingerprints on this. putting the published accounts and common sense together, this leads to a lot. >> that is the spokesman speaking from the podium at the white house. they did something they rarely ever do. publicly deny the claim, calling it not just wrong and i'm using their words, nonsense. we learned there were two confrontations between the officials and the white house. an official saying the meet being was serious in tone and not cordial. there were reports that sean spicer apologized. spicer told reporters off camera we just reiterated that we were reading media accounts and said i don't think we regret anything. we listed media reports in the public domain. president trump today didn't actually make a strong stand. he pointed the finger elsewhere

as well. >> all we did was quote a certain very talented legal mind who was the one responsible for saying that on television. i department make an opinion on it. that was a statement made by a very talented lawyer on fox. you shouldn't be talking to me. you should be talking to fox, okay? >> that's the president of the united states saying i didn't make that unfounded allegation. i made sure it was heard around the world by having my spokesperson saying from the podium. it doesn't mean i believe it. they said talk to fox. shepherd smith was given that task. >> fox news cannot confirm the judge's commentary. they know of no evidence that the now president of the united states was surveilled innocent in any way. >> that is where we are tonight. brit britain is the closest ally

and running the secret against the man who is now the president of the united states. fiction is getting a lot more play than truth, perhaps. >> kirstin powers and trump supporters and a senior contributor to the american spectator. perhaps. so maggie, you have the reporting which is huge news. that puts the whole thing to rest, i guess. >> if you look at what the president said, it's either true or not true that his phones were tapped. we walked it backwards. they suggest we were talking about a broader range of

surveillance. my understanding is the president believes that he will be vindicated in some way. he genuinely has come to believe or believed it before that there will be surveillance that show up if not of him, but his former campaign chairman has an apartment in trump tower and that's one thir theory. a spokesperson for the country. so reading an unverified report involving intelligence that is not true as it turns out. fox news where it aired took the extra step of saying this is not true. very unusual to them.

there is no responsibility that he is taking. the risk for the white house is when everything is treated like it's a rapid response operation out of the rnc where a lot of people who work there came from, all of these so far have been. at some point they need the believe to believe them and hear what they are saying. there is a real danger in going down this road. it's possible that he will come out and say something different and that validates what the president said. this is clear cut and at a concern point it will be hard to make the argument. >> that are is the larger issue about a crisis of credibility really. >> sure. what started virtually two weeks ago and it's now a weapon of mass distraction is a web of mass distortion of the facts. when we have not just the latest report, but house and senate members as you indicated, both

sides republicans and democrats saying there is no evidence to support the claim. that's a problem. i think what he needs to do from all standpoints is to come clean and say look, maybe i may have overstated this. the fortunate thing, he is the president of the united states. the judge is phenomenal and brilliant. the president has the benefit of being able to call the officials and say let's lay it out on the table. here's what i meant, here's what i intended to say. put an end to this. we have a budget and health care to talk about. this is in my view a big waste of time to talk about this. >> 13 days later, the white house is still trying to deal with the aftermath of a random series of early morning tweets and alienated great britain in the process. >> and spent the whole government apparatus on this wild goose chase. we have the intelligence committee looking at this and we have all the resources being put

towards this one claim. what maggie was saying how he thinks he will be vindicated if whom was being monitored. that's not the accusation. he said he personally had his phones tapped by barack obama. it's a specific allegation. with angela merkel, he said we said nothing. we just cited this fox news report. that is saying something. when you cite a news report, cnn doesn't cite a report without verifying it is true first. right? shouldn't the white house do the same? >> i have to say that excuse, we cited it, it reminds me a lot of trump's repeated excuse during the campaign that would get him in trouble and say look, i just retweeted it. i am just retweeting. that's actually a physical action that you are taking and a

decision you are making to spread information further than it would. >> anderson, i guess i'm going to be the lone voice here. i respectfully disagree with all of my friends here. as to alice's point and i must say i disagree. think what happened when reince priebus, now the chief of staff was approached by the deputy director of the fbi in the white house who told him unprompted that sessions was investigated and the media ran with that for days. the idea was he overstepped what they were trying to do something funny to an fbi investigation. can you imagine if president trump called various people in and said okay, i want to get to the bottom of this? the media would go nuts on this. he has done the right thing not to do that. >> right, but now and again we

will know more monday and according to the latest reporting does not confirm the president's claims. does the president need to admit he was wrong? >> no. what the president needs to do and frankly i am totally dumbfounded at the republicans on the hill. what they need to do is take the news accounts from maggie's paper and put them out there and investigate those. notice that fox news has retracted its report. the "new york times" has not done so. >> i would like to say something. jeffrey, there is a real problem with what you just said and with what the president said on this. he repeatedly said these are fake reports. reince priebus to his point in that conversation about the fbi and the fbi director talking to him said the times reports are not true. these are the same stories that sean spicer is using from the podium to say this justifies our claim and to be clear, we stand by our reporting.

these are now the same. >> there you go. >> that's a different point than you are making. >> i'm making the point that the evidence is provided by the "new york times." >> anyway. the president and reince priebus said they were not true. i'm trying to figure out what the white house thinks and at the end of the day, i don't understand if you are in the white house and you want people to believe in institutions or not believe in institutions, i guess i'm confused about how you can cite these stories -- let me finish. for the record, they do not say what sean spicer claimed they had said. sean spicer cited these to suggest they backed up the president's claim that he was wire tapped by the previous president. >> he was surveilled. >> that's not what the stories said. no, it is not. no, it is not. what the stories said -- >> the people in the obama administration were responsible for surveillance and that was leaked to the "new york times." >> that's not what it said.

number two, jeffrey, you are doing the exact same thing that sean spicer did which was claim that the story said something other than what it said. to back up the president's statement i was tapped by president obama. nothing in the story said that. >> we had the reporter that you cited multiple times. you cited his reporting multiple times. we had the reporter on twice saying you are wrong. my article did not say what sean spicer and the white house and you are claiming it says. >> i have just read again today the stories. i don't confusion anderson with sean. what i am saying to you is it is abundantly clear that people working for the obama administration. when some bureaucrat in the agriculture department said he was a vegetable, ronald reagan was held responsible. the buck stops here.

this happened on barack obama's watch with people in his administration. >> did you read the "new york times" articles? i would suggest you go back and read donald trump's tweets. what he alleged is not what you are saying. what he alleged was judge napolitano is saying. we are not parsing words. we are reading literal tweets from the president of the united states. the judge is doing the exact same thing and his sourcing said that the president of the united states, president obama was running an off the books intel operation using british intelligence and there is no evidence of that. >> correct. fox news backed away from the story. as you heard, the "new york times" is not backing away. >> our story that doesn't say what you said it says. i'm sorry, but i have to defend the reporting that my colleagues have done and they worked very hard on. you are misrepresenting it. that is not what the story said.

>> who do they work for? >> who does wo who work for? >> the people at your sources. >> we would not talk about who our sources were under any situation and you know that. you can say whatever you want. >> you made a claim that these resources who were familiar with the investigations. >> jeffrey, can you point to me in any story that said sources say that president obama personally tapped president trump's phone? that's what the tweet said. >> don't do that. >> don't quote the president? >> par the president of the united states and everybody in it, i assure you when this was ronald reagan or george w. bush or anybody else, they held him for it. believe me. >> i'm sorry, do you mean the same way that president trump said don't blame us, blame fox news? explain to me how these are not all the same and not on mark. i am trying to make anything

make sense. >> the president is responsible for the administration and president obama's administration was surveilling somebody. >> that's not what he said. that's not what the stories say. >> that's what you said. >> i'm lost. what are you saying i'm saying? i am actually confused. >> let's take a break and continue this on the other side and we can collect our thoughts figure out what it being said. more on the subject including the apology or non-apology made by president trump. including kasich and his advice to the president.

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breaking news, an fortunately told us the justice department came to the conclusion that they back up the claim that president obama ordered a wire tap. despite knowing the reports that did not back down and just the

opposite. joining us from the white house, you were there at the press conference with angela merkel a few feet away when president trump was asked about the wire tapping claim by a german reporter. tell us about the reaction from the president and in the room. >> the look on the president's face was one of a subject he did not want to talk about. he brought up this topic in the first place. but the two u.s. reporters who were at the press conference and called on picked by the white house and talked about health care. it's an important matter, but not the mus of the day. when the german reporter asked that question, the president looked shocked and simply that he was not going to answer the question. he did double down and did not take the opportunity to sort of correct the record on this. not surprisingly that his

initial reaction seemed to be one that he did not. did he apologize to them and making allegations if his response was we didn't regret anything. >> this was more interesting sirz of effects here. we were told by an official that indeed the administration and the new national security adviser master expressed regret and some type of an apology to the british government. it was confirmed with a spokesperson who said the white house agreed to never talk about this again. a few hours later, the president was doing that. talking about this again. you should be asking these questions to fox news. sean spicer said we didn't apologize. the apology hung out there for hours and it wasn't until the

president stuck by this that sean spicer said look, we are not apologizing for this. it is ending with a british government saying we have no more comment on this, but it didn't help matters and in fact the end of the day seems to me to be more ruptured than at the beginning of the day and the british government was fierce about this. >> thanks very much. back to our panel. it's not like the british ally of the united states. >> is 245 true? >> a long time ally. in terms of an unforced error, this seems to be top of the list given to your point, all the important things this administration is doing and wants to do and wants to achieve. for them to be embroiled upsetting angela merkel who didn't look pleased and president trump looked like contentious meetings and britain is upset. >> to the point i was making,

these are crisis of their own making. there is work that the administration is doing. a lot is controversial and a lot of people agree or disagree. it's usually with characteristic hyperbole, but he has done a series of policy moves that are significant and interesting and worth discussing and he had a good jobs report for his first. granted, these are not trump policies in place yet, but something other administrations would seek to point to. we are doubling down on something because trump's whole mantra is never admit a mistake. it can't be a mistake because they said it. to jeff's point, this alleged apology hung out for a long time and i started hearing for senior west wing officials late morning that there was no apology and that's not true. i am not exactly clear on precisely what went down here.

but look, at a certain point, there are real world ramifications to these moments at the mode yum. there are people taking these things literally. i just don't see how the white house is helping itself. >> i think i know what the argument is going to be, but i will tell you what i think the argument is. donald trump was elected to stir things up and to the people who voted for him and his base, the idea that he is poking britain in the eye or got angela merkel upset or whatever is all for the good. >> i don't want to give you a coronary, but if it were me, i would apologize and be done with it. >> wow. okay. you know this president does not apologize. >> yes, i do. in fairness to him, let's recall that the previous prime minister was saying all sort sorts of

terrible things on the floor and lost his job the day donald trump arrived in scotland to check out a golf course. since that time the parliament debated seriously whether or not to keep the president of the united states out of their count rye. in terms of whether we get to do what britain told us to do if i may say so, settled in 1776. in terms of that, be done with it and move on. >> right. kirstin? >> i think -- i'm not sure donald trump considers this a mistake. i really think we can get right down to it, he cares about one thing only and that's himself. he is consumed with what he thinks is being done it him and not concerned about the repercussions of when he says these things and the impact they have on other people and you can see it in the way he responded. he continues to act like this is the most important thing in the world and doesn't matter what

everybody else is saying. he thinks this happened to him. he obviously believes this happened to him. facts be damned. it doesn't matter that it puts american security in jeopardy by fracturing a relationship by multiple countries. >> one of the things i thought was powerful that he said during the campaign and i'm paraphrasing it, but every waking minute, what i am focused on is what is good for the american people and bringing jobs to the economy. all of this stuff, none of this has anything to do with this. >> that is his priority. all this aside, they kept the promises they made to the american people in terms of right out of the gate taking steps to secure the border and working to build a wall and replacing obamacare and follow through on the promise he made to the american people. disregard to saying things that may not be factually accurate and harmful to other people.

he did that throughout the campaign and people voted for him anyway because they liked his policies. one of my biggest issues is the supreme court nominee. we have gorsuch confirmation and that is a big deal for people. they still voted for him. >> he is very used to and frustrated that this is being said. he is adamant it's not true. he is so used to being able to use his twitter feed to change something and he can't do that. >> president trump's former rival john kasich responds to the fallout over the white house. he also has advice for president trump. more ahead. here's to breakfast four ways...

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republican leaders are scheduled with a house vote for obamacare next thursday. paul ryan is counting on locking in the votes needed to pass the bill. four republican governors including john kasich sent a letter urging them to drop the replacement bill and consider an

alternative. the big news of the day is a new twist in president trump's press conference. i spoke about it all.

>> this is a learning experience for the president. one of the things i told them in the oval office, time my wife pulled me aside. i was saying something and she didn't like it. hey, john, you are the father of ohio. why don't you act like it. i told them that story and he chuckled. i am doing what i can do and i'm not interested in being in a war of words with the president. i will praise him when he's right and if i don't think he is right, i will criticize him if i don't think i'm out of line. >> as far as the health care plan that the gop leadership are pushing, you raised serious concerns about the impact in your state saying the house bill

provides no new flexibility for states. it makes sure no one is left out and you were able to get 700,000 people. what happened to them under this plan now. i wouldn't mind if the states cut back the match. it's a 90-10 match and if overtime they move it down. we had to match higher. >> it's giving incentives and basically paying money for the

states to expand coverage for people. >> 90-10. the match is 90-10. were to say it's okay if they begin to phase that out overtime. if you remove people, most of the people on medicaid expansion are not on it. you don't want to kick them off. where do they go? here's the problem with the exchange. the most you can get is a $4,000 tax credit to buy insurance. what would you buy for $4,000 for health insurance policies? most people are spending $2,000 a month. we are going to give you $4,000? what are you going to get? no primary care. you will have a catastrophic policy with a deductible you can never pay. what i am fearful of, if republicans jammed this through. reaching a compromise, we will be right back where we were in

or six years before we started with obamacare. >> do you have a reason to think the white house will make the changes you want? you met with the president about this and pitched your ideas and you have been public about this. >> he also called me. we talked about it. look, he is going to fight i believe. i haven't talked to them, but to get the bill through. at the end of the day, i believe he would be a negotiator. i don't think this bill passes the senate. i hope it doesn't pass the senate. i think the situation is the road map. maybe it will pass the house and maybe it won't, but when it gets to the senate, we have to involve both parties in the discussion because anderson, look. if you don't have both parties working on a major issue, it's not sustainable. whether it was social security, medicare, the budget act of 1997 where we balance the budget. welfare reform. if you don't have both buying in, it becomes a political

issue. when the other party wins, they repeal it. that is no way to run america. >> always good to talk to you. thank you. >> thanks, anderson. >> watch will put it interview with the governor online. president trump may not like to say sorry, but we know that he is capable of it after the "access hollywood" tape. he apologized. why is he not backing down from the wire tap claim? i accept i don't race down the slopes like i used to. i even accept i have a higher risk of stroke due to afib, a type of irregular heartbeat not caused by a heart valve problem. but whatever trail i take, i go for my best. so if there's something better than warfarin, i'll go for that too. eliquis. eliquis reduced the risk of stroke better than warfarin, plus had less major bleeding than warfarin.

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far. >> tonight's breaking news, the wrong way to report the department of justice shows no evidence of wire taps at trump tower reported by president obama as president trump claimed. president trump refused to back down on the claims despite producing not a sclefd proof. law make ares and other officials have seen no evidence to support the claim and president trump has not budged. candidate trump was asked how he felt and apologizing. here's what he told me at a town hall. >> you said on the radio in wisconsin the other day you do apologize and believe in apologizing. when was the last time you

apologized for something? >> oh, wow. no, i don't know. i'll think. can i think? i do believe in apologizing if you are wrong. if you are not wrong, i don't believe in apologizing. >> you can't think of a specific example. >> i apologize to my mother years ago for using foul language. >> seven months after that town hall, the "access hollywood" tape surfaced and we heard then candidate trump using foul language and he apologized in this video. >> i never said i am a perfect person or pretended to be something i'm not. i said and have done things that i regret. on this more than decade old video are one of them. anyone who knows me knows these words don't reflect who i am. i said it, i was wrong and i apologi apologize. >> for the record, we know he is capable of saying i'm sorry.

harvard law school and cnn contributor and author of the truth about trump. donald trump's refusal ever to apologize or admit he was wrong, where do you think that comes from? a lot of people pointed to roy cohen who is his attorney and also as a fascinating background with mccarthy. >> i think he was one of donald trump's mentors. . i got to know roy cohen and i didn't agree with his politics. he was a man who never apologize said. the important thing to know is not with standing carthyism, he was not an ideological person. he cared about personality loyalty, personal success, winning, being on the right side and never backing down or apologizing. he ended his life being disbarred.

>> his general strategy was be on the attack. attack, attack. >> always. >> it served him very well for most of his career. when he was dying, if he had been willing to apologize, he might not have been disbarred, but i think he wanted to go down without having to change his philosophy. i think that helps understand president trump. he got to where he is with this philosophy. the success in business and success in winning the nomination. his success in winning the election. i don't think we are going to see him change much as president. >> do you agree? you wrote about him and spent time with him as a candidate and a citizen. this is a strategy to the professor's point that he has been using his whole and successfully. >> i agree that we shouldn't expect to hear anything different from president trump. roy cohen was one person who taught him this style, but his

father was very much the same. if you read the record of his father being questioned by a senate banking committee on his use of federal funds. he had the committee in circles to admit to anything. i think this is a style that is a way of addressing controversy without backing down. i think he thinks it would be a sign of weakness to say i'm sorry to almost anyone. >> i think in addition style, it's a brand for him. what i think he has done as president is something different. he now has a vice president in charge of saying he is sorry. it doesn't necessary low mean vice president pence, but people will issue apologieapologies. >> i wonder if the way president trump views the presidency is different than recent presidents have viewed the presidency.

whether donald trump sees it in the same way that other presidents have seen it. >> mr. trump or president trump has seen everything through a very personal lens. in this case if you saw how he treated barack obama when he was the president, saying everything he could to delegitimize him, i'm not sure that he held the office in the esteem or with the respect that his predecessors have held it. that means that as a person he is going to resist ever changing his mind or being seen to change his mind. i'm not sure he attaches the same dignity to the presidency as other presidents have. >> a friend of his told me that donald trump may not regard the presidency as a promotion from where he was previously. he may regard it as a parallel job. he is going to keep the same style and the same tactics that

got him here. he is going to find that he is going to node to have people do the diplomacy for him. putin doesn't apologize. he sees putin in many ways as a role model. there are other tough leaders throughout history who have not apologized. good leaders. this is not a style that is only negative. it could get the country into trouble obviously. from his point of view, i think he sees it as a positive style >> and it's certainly something which the people who voted him, came out to vote for him and stand in line to see him now, clearly like about him. mr. dershowitz, mr. dantonio, thank you so much. up next, president trump unveils his first federal budget blueprint. we'll go over the big numbers and look at what could be cut, including a grant that funds an after-school program. the president says there's no

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president trump's first federal budget proposal calls for $1.1 trillion in spending, including $54 billion in extra money for defense and homeland security and the same amount in cuts that impact almost every

other department, pushing some agencies' budgets to their lowest level in decades. also some federal programs could be eliminated including an after-school program for about 2 million kids nationwide. gary tuchman has the story tonight from atlanta. >> reporter: for the students at the s.l. lewis elementary school in college park, georgia, the schoolday is done but the learning is not over. more than 130 of the students, most of whom live in low-income households, are part of an after-school program called wings for kids. it's called wings because the goal of the program is to encourage kids to soar. they learn, socialize and have snacks. >> three, two, one! >> reporter: they even have their own creed. under president trump's new proposed federal budget, wings' primary source of funding would be eliminated. there are 11 wings for kids programs in three states with about 1600 children participating.

bridget laird is the ceo. >> how does that make you feel? >> it makes me feel devastated. i have been with this organization for 19 years and thinking about the kids losing this program honestly breaks my heart. >> reporter: wings for kids gets $1.6 million a year from the federal program 21st century learning centers. that program receives $1.2 billion a year from the federal government that it gives out to after-school organizations across the country. all of that money would disappear under the president's budget plan. what will that do to you? >> that will eliminate our programs. we will not be able to have the programs we have operating in the fashion they do and our kids will no longer be able to come to the program. they will go home to unsupervised houses or their parents will be required to quit their jobs and stay home with them. >> reporter: jessica williams has two daughters in the program. what happens if it goes away?

>> i really don't know how i could -- i really don't know. i will be lost. >> reporter: president trump's budget director declared there was no demonstrable evidence that after-school programs help kid dozen better in school. the people in charge her demonstrably disagree. the ceo says the organization participated in a four-year-long controlled study and it clearly showed -- >> increases in positive behavior, decreases in negative behavior. >> reporter: as for the elementary schoolers -- what do you like best about wings for kids? >> building friendships with some of my friends. >> is it fun to be here too? >> of course. it's a good place to learn and it's fun to know everything. and there's a lot of fun that you can do and activities. >> do you like hanging out with your friends? >> very much. >> reporter: and they seem blissfully unaware that it could soon be going away. >> gary joins us now. it is likely that after

congress gets involved, there will be many changes to the proposed budget and many of the cuts may be reduced or eliminated. does the ceo of this group, wings for kids, have any optimism maybe her funding won't get cut? >> the ceo does not like what the budget director said about after-school programs but has faith that ultimately congress and the white house will think it makes sense to continue funding after-school programs not only for the people who are in them but also that they will realize like she does that it is good for society. >> fairy tuchman, thanks very much. there's a lot more ahead. another blow to the president's claim that president obama has him wiretapped. it comes from the president's own justice department and the potentially damaging bottom line, stay tuned. there's nothing more than my vacation.me

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