>> we need more ads. we do. >> bring it on. thanks for joining us, i'm christine romans. >> i'm dave briggs. a tragic accident at the fair fair captured on video -- at the ohio state fair captured on video sending people flying. "new day" has all the latest details right now. we basically have an all-out public war in the white house. >> the president's new communications director seeming to suggest reince priebus had a hand in leaking his financial disclosures. >> this is deplorable behavior at the highest levels. >> i don't like these leaks. if we don't stop the leaks, i'm going to stop you. >> this certainly won't be easy. hardly anything in this process has been. >> the senate now barreling toward a dramatic final series of votes. >> the fact that we can't actually get a bill through the senate is an absolute disgrace. >> this is "new day" with chris cuomo and alisyn camerota.

we want to welcome our viewers in the united states and around the world. this is "new day." it is thursday, july 27th, 6:00 here in new york. we're going to get to all of the big political stories today in a moment. first, we begin with breaking news for you. one person has been killed and at least seven hurt after this ride breaks at the ohio state fair, tossing passengers into the air and crashing to the ground. >> we've all seen rides like this. we keep freezing the video because some of it's disturbing. you just have to take a look at it to appreciate what this apparent malfunction wound up doing. people got flung 20 to 30 feet from being that high at speed on to the ground. investigators have shut down all the rides at the fair. they're trying to figure out what went wrong. we have cnn's ryan young live in columbus, ohio, with the breaking details. this ride combines all the risk factors, right? you got a bunch of people, you got it swinging fast, and it's

at elevation. >> reporter: absolutely. look, this is a horrific accident. when you watch the video, you see how high these people were. the ride's called the fireball. people are stacked like six rows deep. it swings some 40 feet in the air. we're not going to show all the video because it's quite horrific. tragedy at the ohio state fair captured on this dramatic video showing the fireball spinning and swinging before a piece of the structure breaks off sending riders flying. witnesses say some fell 20 or 30 feet on to the concrete below. >> i heard a girl scream, "help." i look over and seen something fly out. and then i seen it flat to the ground. >> reporter: the accident leaving at least one dead and injuring several others including some who are now in critical condition. a cnn affiliate reports the victims range in age from 13 to 41. >> they were stuck

>> they were stuck in a hole, they couldn't move. i just remember the little girl's face. she was screaming for her mom. >> reporter: police on scene pushing fairgoers back so medics could treat the injured. >> this was a great force and great mechanism, consistent with a high-speed motor vehicle crash, with an ejection. >> reporter: the cause of the malfunction unclear. safety inspectors saying the ride inspected multiple times in the last two days by multiple groups. >> my children, my grandchildren ride this equipment. our guys do not rush through this stuff. we look at it. we take care of it and we pretend it's our own. >> reporter: ohio governor john kasich launching an investigation and offering his condolences. >> it's a very tough day, very tough night for the people of our state. the fair is about the best things in life. tonight with this accident, it

becomes a terrible, terrible tragedy. >> reporter: the governor has shut down all rides here at the fair. the fair will open today at 9:00 in the morning. there's another ride just like this at the california state fair. that ride has also been shut down as well. chris? >> ryan, appreciate it. thank you for the reporting. we'll keep checking in with you. we'll lget babbling to you. we suggested that chasing after leakers by the white house can easily get out of control. that seems to be the case. the white house crackdown exposing paranoia among staffers. anthony scaramucci, the brand new communications head takes to twitter to call for a federal investigation into the leak of his financial disclosure forms. scaramucci deleted the form which seemed to accuse reince priebus of leaking. scaramucci says that was wrong,

that's not what he was doing. cnn's joe johns at the white house with more. this already seems to be a problem. >> reporter: that's for sure, chris. the incoming communications director has made cracking down on leaks a top priority of his. and after politico reported the contents of his financial disclosure form, he was able to claim that he was the victim of an illegal leak himself. it's unclear whether this was illegal, unclear whether this was a leak because it could have been information obtained under the table or through official sources. anthony scaramucci ramping up his rhetoric against leakers, tweeting that he will be contacting the fbi and the justice department about the alleged leak #swamp before cryptic cli tweeting reince priebus. a reporting tweeting after that that he can confirm scaramucci

went to the fbi to investigate priebus for leaks. skruch deleted the tweet over two hours later calling reports that he was going after priebus wrong, although lizza stands by his reporting. hours earlier scaramucci told fox news he believes the leaks are coming from the top. >> one of the big problems i'm discovering in the comes team is senior people are doing the leaks. they ask junior people to leak for them. i'm proud to be reporting directly to the president so i can hermetically seal off the coms team from this sort of nonsense. >> reporter: the justice department responding with a statement noting, like the attorney general has said, whenever a case can be made, we will seek to put some people in jail and aggressively pursue leak cases wherever they can be made.

while president trump continues to publicly attack attorney general jeff sessions on twitter. despite growing backlash from conservatives and his senior advisers urging him to stand down. >> i don't fully understand why the president has said what he said, but i think jeff deserves better treatment. >> reporter: the turmoil in president trump's inner circle comes at the into gone was left scrambling after mr. trump abruptly announced on at which time a ban on transgender people serving in the u.s. military, despite promises made to the lbgtq community on the campaign trail. >> i actively serve in the military. we don't care about identity. we care you can shoot street and complete the mission. >> reporter: that announcement

to shore support. the president took another shot at the lgbt community in court papers yesterday asserting that the civil rights act does not apply to employment discrimination involving sexual orientation. chris and alisyn, back to you. >> joe thank you very much for that reporting. joining us now to discuss all of that, cnn political analyst john avlon, cnn political and national security analyst david sanger and associate editor of realclearpolitics a.b. stoddard. let's start with the palace intrigue incise the white house. there seems to be a balt between anthony scaramucci and reince priebus. on two hours scaramucci suggesting that he was reince

priebus whom he believes is behind the leaks. >> this goes way beyond your typical office politics. this is vicious, paranoid and probably not fact-based. but it lays bare for at least a few hours in that tweet the enormously bad blood, paranoid, distrust at the highest levels of this white house. tone comes from the top. for this to spill into public so early into scaramucci's term is a bad sign for everybody. >> let's thicken out the record a little bit because there's a lot to unpack. first, anthony scaramucci says this was a wrong reckoning. he put reince priebus on there to show his consolidated effort to go after that. why is that scene as suspicious? there's a ton of reporting that priebus has been out to do scaramucci wrong for a while, that he kept him from getting a job, he didn't want him to get this job. so there's a basis for speculation about what's going on here. but the whole context is somewhat of a flawed premise,

that leaks are all bad, that they're all illegal, all dangerous and injurious to the republic. that's just not true. >> let's put aside the "game of thrones" part of this. i've been dealing in the national security space and the alleged leaks for more decades than i want to go admit to here. what the document that he claims was leaked -- >> called a disclosure form. >> -- is intended to be a public document. after you have filed it, and he probably filed it in his previous federal job earlier this year, it is publicly available after 30 days. we checked, he filed his june 23rd. it was publicly available as of last sunday. i don't know how politico got it, but my guess is, having done this more than a few times, they asked for it. >> to dive in a little further, this is a financial disclosure form that reveals what, that anthony scaramucci may still be collecting on investments?

>> this is the information he provided. >> what's damning about it? >> there's nothing damning about it. it tells what your assets, liabilities. you even see it for the president. every federal employment gets to file these. now, what's the problem in the way they're wording all of this? first of all, most leaks aren't illegal. most leaks are perfectly legal. secondly, leaks that are all about the "game of thrones," who is up, who is down, they may be damaging to someone, they may be embarrassing. they're not illegal. go into the memoirs of previous cabinet members, you will find discussions that took place in the situation room about national security measures. not every conversation in the situation room is classified and illegal to disclose. >> so we have scaramucci talking about all this on hannity. so listen to who he thinks is leaki leaking. >> it will be virtually

impossible to get rid of every leak, but i think we can take dramatic steps to get rid of leaks. one of the big problems i'm discovering in the coms team are that senior guys are the ones doing the leaking and asking junior people to leak for them. i'm proud to be reporting to the president so i can hermetically seal off these leaks. >> a.b. stoddard, you have a white house that says it's constantly distracted by the media. it just constructed this massive distraction. the president wants to be the one to give the message, wants to be the one that has the conduit to leak to the media. they've made it a nefarious behavior and now we see this. >> they're always harping on how the media wants to talk about russia or other things except the agenda. then scaramucci spends most of his time on camera talking about

leaks. as david points out, we're not talking about high level national security secrets here being leaked illegally. there are feuding factions in the white house. this is the way president trump has always operated as a businessman. he's going to operate the white house this way from the time he got in in january to the time he leaves, whenever that is. this man keeps people on who hate each other. that's when you create these sort of festering resentments and people leak against each other. so scaramucci can run around and fire a bunch of people and try to stop some leaks. but as long as you have ivanka trump with jared kushner and gary kohn and dina powell lined up against reince priebus and steve bannon and others and people are leaking to protect their special thief doms, and people keep people like reince priebus in his role, even though skruch is trying to do this street fighter, overheated tweet

combat with him to publicly shame him, all this tension stays and all the leaking continues. >> tone comes from the town. that's the point a.b. is making. this is all about mimicking the president's own memes and actions. trying to shame his internal, not enemies but challengers. what scaramucci may have done to priebus last night mimics what the president is doing to jeff sessions on twitter. none of it is healthy, none of it is normal. none of it speaks to leadership that puts a cohesive team on the field for goals for the american people. yesterday was supposed to be about health care. it became about a trans ban popped by the president on twitter, removing rights from americans currently serving, a series of other initiatives and then capped off in the evening by sort of bloody knives between white house staffers on twitter.

this is not useful. >> it's just very clear where it's coming from, david. anthony scaramucci just got installed. you know he's dealing with the president very closely and constantly. this is clearly a presidential priority. how else do we know that? jeff sessions who has every reason to be doing whatever the president wants, what did they just announce? they're going to launch an investigation into leaks. it seems like this is what the president wants. >> it certainly does. of course, the president himself was doing twreets about leaks before scaramucci was thinking about incoming to the white house. something else that john raised as well. think about how the transgender ban was announced yesterday. was this an official announcement from the white house with a background briefing for us about the legal analysis that went into why you treat transgenders differently than you would treat any other category? no. it was a single sentence or two

from the president. no one knows how this is supposed to be implemented. no legal justification offered. more importantly, no cost benefit. certainly there are issues about having transgender among the troops. there are also huge benefits about doing this and great work that many of them are doing for the military. did anybody sit down and say we've evaluated these? none of the process, none of the explanation. >> obviously, also, no self-awareness that it was tweeted out the anniversary of harry truman desegregating the u.s. forces. the lack that there's any lack of coordination is chaos. >> they have the doj coming out with a finding which is really fundamental to the progression of rights for the lgbt community. the doj coming out saying they don't believe they should have statutory protection in the work environment is huge because gay

marriage did not end the struggle for equality for this group of americans. until it is made, you're going to have to have a category of protection under federal law in every regard. you're going to have these piecemeal things. it came out the same day as the doj. is that coincidence? >> we'll talk more about that throughout the program. another setback for senate republicans on health care despite all the distractions around them. they've got problems in the main on the issue. they'll be debating the merits of something called a skinny repeal. any chance of it passing? why, why not? we discuss next. is to always keep track of your employees.r micromanage them.

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the senate will tackle health care again today as the gop now pivots towards an alternate skinny option, and that would leave parts of the current law intact. this comes after republicans rejected a straight repeal of obamacare. cnn's phil mattingly is live on capitol hill with more. what's the latest, phil? >> reporter: good morning, alisyn. we're certainly set up for a dramatic next 24 hours, a conclusion of the senate debate coming soon. if there's one thing we learned over the last 48 hours, it's that republicans definitively cannot agree on a repeal and replacement plan. we saw this a couple nights ago, falling well short, nine republicans voting against it. the repeal-only option, an

amendment that would cut back large swaths of obamacare, that fell short. seven republicans voting against that. where does that leave us now? well, the alternative that republicans are starting to coalesce around, the idea the republican leaders are pushing, as you noted, call the skinny repeal. essentially what it is, a very paired-back repeal of three key elements of obamacare, the individual mandate, the employer mandate and the medical device tax. this is something all republicans agree they dislike. that's the key element here. they're trying to find something everybody can agree on. do republican leaders want this to be the final proposal? absolutely not. when you talk to republican leadership, they say this, we want this to be a vehicle to get into a conference with the house. essentially get it passed, get something done, keep the process moving and hammer out details later on. if you heard that before, that's because it's true. that's house house leaders said, we'll fix it. that's what mitch mcconnell said

before the procedural vote, wait until we get to debate, we'll fix it. now it sounds like they're trying to punt again. as of now, they still don't have the votes to even pass that. that's the work going on behind the scenes to keep a close eye. another thing to keep a close eye on, democrats. last night chuck schumer coming to the floor saying democrats will no longer offer amendments until they can physically see the skinny repeal proposal. a little wild up here, guys, and will continue for the next few hours. >> phil, context you provided very well at the beginning of this process, the senate would improve what the house had done. there was this allusion that the house had put something together and, yeah, it was too raw, too mean as the president of the united states said, the senate would improve it. now it seems like they're just trying to match what the house did. phil, stay with us. let's bring back john avlon and a.b. stoddard. in terms of the where we are and

what the concern was about the end run around the traditional process -- what we were told was, they did this for seven years, so expedite it. it seems they're chasing tails right back to where they started which is box out the democrats, the amendment process will be somewhat of a farce and let's get it as lean as possible. pull as much money out as possible to pass along in other parts of the agenda. >> that's right. keep it moving and don't look at what this hand is doing. the ultimate cruel political irony is when nancy pelosi said you've got to vote on the bill before you can see what's in it. used in campaign ads, they are doing part of that today. look at the individual parts. don't look at the whole picture. there is no whole picture. we'll improve it behind doors and then see what the ultimate bill is. all we know is the skinny repeal which would remove the individual mandate, remove the companies required for coverage, remove the medical device tax,

each of those may discreetly look attractive to different republicans. what we know about cbo scoring, it would increase premiums and decrease coverage. that's a bad deal. the numbers are rough, but the process is even worse. >> a.b., you obviously have lots of sources on capitol hill. is this as chaotic as it seems, or is there some method to this madness? >> no, this is really a disaster. it doesn't matter what the cbo score is on skinny repeal. a, it's not a repeal and conservatives don't like it. b, it's not going to become law, as phil said. it's a ticket back to the house for a conference where conservatives will go nuts again on the medicaid expansion, try to pair it back, and moderates will fight to try to restore it. we'll have the argument about tax cuts to the wealthy that a lot of republicans want to keep the obamacare taxes in. the grassroots are furious. they want all the regulations

and the taxes gone. if they don't get that money, $500 billion to $1 trillion out of health care, their setback on their next big, more favorite goal of tax reform. what's amazing to me is when the house bill was floundering and it was a mess in march, failed march 24th. in april, it seemed like they could never get anything done and they did get the house bill out in the first week of may, all the members said why don't we pass a shell bill, the senate is the one that can write this bill. we can never pass a bill. if we send just medical device tax repeal over to the senate, they are going to be the one that writes -- they have to write the bill that makes it to the president's desk. over here with the freedom caucus, we can never decide on a bill. the idea of the senate punting it back to the house is really a sat statement about where we are. >> also, we have to remember something here in the macro sense to borrow from anthony

scaramucci that makes this a lot more, yes it's about money and moving forward the agenda. but the point you make all the time, this is about people. the skinny function of this is going to be about star fing people from their health care. you're pulling the money out. 16 million more uninsured in this country. there's going to be a price for this savings. >> that's the early estimate from the cbo. >> the chaos, unfortunately, runs into contradiction with compassion. remember, we had eight years for them to come up with a comprehensive policy and there's been a total absence. instead, let's keep it moving, keep it moving, get a win on the board, we'll figure it out later. that's absence of compassion in the face of public policy. a bipartisan group of governors including john kasich and charlie baker, republican from massachusetts, came out about the skinny bundle. >> and medical experts, and your

buyers. >> he used freedom and power of speech. if they're saying it's a bad deal, that's a contradiction you can't ignore. >> phil, one thing i've been looking forward to is a vote-a-rama. i have a '70s outfit. >> you're going to come out here with the outfit, aren't you? >> oh, yes. i don't know what it's about, but it sounds fun. what's happening. >> it is fun unless you have to cover it or participate, in which case it's tedious and you want to take a nap. that's part of the budget process they tried to pursue to try to pass this. at the end of debate, there's about ten hours left of debate, they will start the vote rama process. what that means is any amendment offered that falls with the the budget reconciliation rules will have to be voted on. i've been through these before. talking hundreds of amendments, each amendment gets one minute

of debate for each side and they vote again and roll through it. it should start sometime this evening, and it will go all the way through basically until they run out of amendments. the big element here is to watch, and we've seen it in the amendment process up to this point, every amendment is failing. none of these amendments are passing. none of these are perfecting a piece of legislation, making a piece of legislation better, even shifting a peets of legislation one way or the other. these amendments are being put up to be defeated, even amendments republican leaders want their members to get behind. it doesn't actually have an end game that changes things until the very went. this is how you look at the entire process. vote rama very, very long. at the very end, republican leaders will put up the bill, likely the skinny repeal that they want their members to vote on and kick back over to conference committee or the house, that's what matters. you can kind of tune out the ten or 11 hours before that if you want. >> but you can't, phil. we appreciate you being there

and covering it all so we don't have to. >> this is the democrats concern. this is called opening debate, but it's only a 50-vote rule. it's not like the obamacare vote where they got 60. democrats can propose anything they want, true. and they can vote every one of them down in a minute, like that. >> thank you, panel, for all of that. meanwhile, troubling new intelligence on north korea. it suggesting kim jong-un could be capable of a nuclear missile launch by early next year. is the north korean leader about to conduct another test? we'll tell you next. mom, i have to tell you something. dad,

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expect the north will be able to launch a nuclear intercontinental ballistic missile capable of hitting the mainland u.s. within the next year. a congressional aide who worked for several democrats including debbie wasserman schultz is facing a federal fraud bank charge. the federal bank says he and his wife misrepresented himself. he was arrested on tuesday moments before boarding a flight to qatar. wasserman schultz has terminated his employment. papparozzo taken to the hospital after police say pop star justin bieber hit him with an suv. it happened when the 23-year-old singer was attempting to drive away from an event in beverly hills wednesday night. we're told the photographer suffered minor injuries. authorities say bieber cooperated with them and tried to offer assistance to the papparozzo. no citations were issued.

all this happened as bieber canceled the rest of his world tour, starting more speculation around this troubled young man. >> from the angle, it looks like he couldn't see him. >> there were no citationtion offered. we've all seen those scenes, there's a swarm around the truck. the guy wants to leave. meanwhile, strong storms packing gusty winds and torrential rain. it could cause severe floods in the midwest. what are you seeing chad. >> severe flooding right now. if you see a barricade, don't drive around it. that means there's high water somewhere in front of you. seven inches of rainfall fell in parts of kansas city since 6:00 last night. there's flooding going on right now. across upstate new york we'll get rain, but not the flooding that they're seeing now. we will see memphis with heavy rainfall today, even nashville. i think the major threat for any flooding over the next two days

will be west virginia and parts of eastern virginia and northern north korea where some spots again, six to eight inches of heavy rainfall. this is tropical rainfall, chris. it feels like the tropics outside. >> thank you very much my friend. keep us updated. we'll check back with you in a little bit. conservative media outlets criticizing the president. think about that. why? his treatment of attorney general jeff sessions. are they turning on him? what is the president willing to do to get back their favor. we'll talk about that in a moment. i'm leaving you, wesley. but why? you haven't noticed me in two years. i was in a coma. well, i still deserve appreciation. who was there for you when you had amnesia? you know i can't remember that. stop this madness. if it's appreciation you want you should both get snapshot from progressive. it rewards good drivers with big discounts on car insurance.

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>> i think, one, he's mad his information has been put out there so quickly especially when he says leaks have been a huge problem. >> mad at reince priebus. >> i think he was attacking reince because they both agree that the leaks are a problem. reince has been very clear at the white house, especially recently, that leaks are a massive problem. i do not believe for a second when he tagged him he was accusing reince priebus of anything. >> oh really? >> i think he was making clear to the white house staff -- >> look, i've talked to people at the white house literally yesterday, i can tell you, if there's anything these two men agree on, it is leaks. >> it isn't a leak. >> they may not be best friends. >> go ahead, bill. >> why is it called a financial disclosure form? because it's meant to be disclosed. >> to the public? >> yes, yes. if you're a reporter or member of the public and you file a request with the office of government ethics, that's what

the politico reporter did. it was available after 30 days. 30 days was sunday. the politico reporter was intelligent. she asked for the document and reported on it. what's very revealing here is scaramucci and people defending him are calling it a leak. it's not a leak. it's a public disclosure form. think what it says about one of the top aides of the united states being so willing to cavalierly call something a leak that's a public form. >> there you go, ben. it's not a felony. you can call it a leak if you want. >> you can't call it a leak. it's not a leak. it's a public disclosure form. i had no assets at all, i had to form. you can call 30 days later and say what was his income two years ago? that's what it means to work in the public sector. if anthony scaramucci doesn't want his form to be public, let him stay in the private sector. >> ben, your response. >> two things here.

one, i think the timing of it and how quickly it came out, he thought it was not within the time frame of the 30 days you have -- >> he's wrong. >> he's wrong. >> he's wrong. it's a fact. there are these things called facts. >> ben, that's wrong. >> bill, bill, i said this is what i think he was thinking at the time. so hear me out before you go after me on this one and actually listen to where i think he was coming from. the first point is this, i think he thought when it came out quickly like this, it was obviously done in a leaking fashion which was not in an orderly way, not going through the appropriate channels. i think that's part of the reason you saw this tweet deleted afterwards. it still goes back to a bigger point that i think he was trying to make when tagging this, also with reince, saying look, we aren't going to allow more leaks coming out of the white house, we've been talking about the leaks now for months on end. it was a bigger point that he made in this situation. i'm not disputing the fact that after 30 days -- when he did

have that first job he got with this administration, he had to put in a financial disclosure. no one is disputing that. the fact is, though, there's a massive problem with people when they don't -- >> i understand that. >> and they say, i'm going to leak information. >> it's unfortunate donald trump is not a good enough manager to prevent his administration from leaking. >> that's a politically ignorant comment on leaks. >> is it a worse problem with this white house or not? >> i think if you look at -- >> he said it was the worst problem. >> let me finish. let me finish. i think you had a lot of leaks that came out early on when george bush was elected. you also had many people that came out afterwards and were removed from that administration. you had a lot of leaks that came out during bill clinton's time especially when white water was coming out. there are leaks everywhere in the white house. to imply that the management style of this president is the reason the leaks were coming out, it's insane to imply it's

his responsibility when people leak information which, by the way, is a felony. >> he shouldn't employ people who are committing felonies. >> many of the people that were leaking were there before donald trump got there. >> that's not what anthony scaramucci is says. he suggests it's coming from top advisers. listen, here is a rj laer theory. that is, every time we talk about leaks, we ooher not talking about the substance of policy and in fact, perhaps, the president wants to divert away from things that he's not yet been able to get done such as health care and wants to talk about leaks and it's a red herring. for instance, and i just want to get to this because i think this is really important, the president has been talking, as we know, a lot about attorney general jeff sessions and publicly criticizing him. so many in the conservative media, big voices, influential voices say enough already. this is not helpful. this does not help you stay on your agenda. so let me play for you all --

there's a theory that, if you've lost rush limbaugh, you're losing the argument. to let me play for you some of these voices that are annoyed with how the president is handling this. >> attacking jeff sessions was still a useless, self-destructive act. the first rule in politics, as in war, as in life, don't shoot the friendlies. >> it's also kind of -- a lissal discomforting to see trump go after such a loyal supporter this way, especially when sessions made it obvious he's not going to resign. >> he's likely the most effective member of the trump -- >> "weekly standard" weighing in on all this as well. what does it mean when the white house is losing conservative voices? >> they deserve to lose them. trump revealed his character, sessions is? the way. he wants to force sessions out, try to make a recess appointment as attorney general and have that recess appointed attorney

general fire mueller. that's what this is all about. sessions has been a good attorney general in terms of policy, a loyal supporter of trump. it's deeply revealing about donald trump. i don't like the narrative that trump and sessions are in a fight. trump has attacked, tried to bully sessions. sessions has been doing his job. >> ben, how troubling should it be to the president that he seems to have run afoul of rush limbaugh, tucker carlson, et cetera? >> i'm one of those that i don't think you have this play out in public. i've said that on my radio show, for example. i do think that some are trying to overplay this. if you listen to what limbaugh said there, his advice was, this isn't exactly how he would do this. i don't think he's lost support of many in the conservative media. many disagree with donald trump and how he handles certain things. i remember john ashe croft. there were disagreements over nsa wiretapping with the president. they were very intense debate and disagreement between the

president and john ashe croft at the time. you never saw it play out in public. let's also remember this, donald trump is a guy that's done business. in business when you have a relationship that's not going well, you make changes and don't wait years to do. you wait months. so that's his management style. i do think it has to be put in the context of, look, donald trump says, if it's not a rip that's working, if i don't like it, i'm willing to make the change regardless of what the political timetable is. i do say this, moving forward, i do think the president probably should look at this and say, hey, maybe this should be something that we have internally, not necessarily in public and tweeting it out because it does not help you with pushing your other agenda forward, and it does fracture the party a little bit. that might be something in the future he'll look at again. >> ben, bill, thank you very much. >> so, on the campaign trail, the president vowed to protect the lgbt community. now he says transgender people can no longer serve in the military. the military chiefs were caught off guard by this. what is behind all this?

we discuss it next.

we have to deal with something that just happened here that has major implications

and no good explanation. president trump says transgender people will no longer be allowed to serve in the u.s. military, a proposition condemned as obvious bias. let's look at why that is. first, the president's rationale. our military must be focused on victory and cannot be burdened with the tremendous cost transgender in the military would entail. no proof of any cost-benefit analysis done in putting this position together except a political calculation. we'll talk about that in a moment. the numbers, however, show the exact opposite of what the president suggests. a study commissioned not by us, the media, someone you don't like, by the department of defense. it estimates medical costs for transgender related services to be between $2.4 and $8.4 million a year. that's a healthy range. either way, look what percentage it ends up being of the overall

budget. the rand corporation says it represents an increase in the budget of the defense department of .01% to .04% of the $50 billion that the pentagon spends every year on health care for the military. for context, the military spends more than $84 million a year on erectile dysfunction pills. words i always wanted to say on television, including $41 million on viagra alone. did you know that? that's according to the military times. another cause of questioning this position, it reportedly took the pentagon by surprise. what does that mean? the white house in all likelihood generated this. it didn't come from the pentagon, foisted upon the white house. it's not just progressives who don't like it. john mccain is saying, quote, there's no reason to force service members to leave the military regardless of their gender identity. oren hatch put it more simply,

transgender people are people. so that's what they're seeing. what about what president trump has said. just one year ago, listen to this. >> -- bt is starting to like donald trump. you tell me who is better for gays? you tell me. who is better for the gay community and who is better for women than donald trump? as your president, i will do everything in my power to protect our lgbtq citizens. >> he even waded into the transgender bathroom debate. you remember that? it was a big stick for the political right. here is what he said. >> people go, they use the bathroom that they feel is appropriate. >> that's what he said. remember, so many people around the president say don't pay attention to what he says, pay attention to what he does. now we know what he's going to do on this issue. it is disturbing certainly to the lgbtq community.

now what they're saying when asked about this topic after all the rhetoric you just heard is this -- >> -- else to add on this topic. as i do, i'll keep you posted. if those are the only questions we have, i'm going to call it a day. >> -- your policy on transgender people in the military? >> you go ahead. she's very rude. >> she's rude. rude is disrespecting an entire group of americans who serve or want to serve their country, and for no good reason. why is it happening? is it a play to the political right like the vice president trying to win favor after shaming jeff sessions? or simply to shame the lgbtq americans, a group that donald j. trump swore to protect? joining us to discuss this, cnn military analyst and former commanding general in the u.s. army, lieutenant general mark

hertling. general, i rely on you all the time for the right way to look at situations that regard the military. how do you see this? >> chris, there's a couple things to look at. first of all, what happened, how it happened and why it happened. first of all, in a matter of seconds, as soon as that tweet appeared yesterday morning, thousands of soldiers, sailors, airmen and marine were affected. i'm not just talking about getting the news. i'm talking about some who might be deployed, some who might be in hospitals after being injured. some serving in command positions, and they all woke up seeing this surprise and saying, holy smokes, what am i going to do? how is this going to affect me? i'm in service that i love. what is going to occur? they've been serving there for years. secondly is how it happened. it was sent out. the department of defense did not know. they were caught flat-footed. all the service chiefs told the secretary of defense just weeks ago that they wanted a little more time to do some analysis

and to do some research. the secretary of defense sent a letter out at the end of june saying he was going to delay operations within the lgb -- specifically the transgender issue until december of '17. he was caught flat footed as well. no matter what the white house says. then there's the policies and procedures that have to take place to say what are we going to do next? then finally, you got to it in your introduction, why did it happen? i've got to tell you, a lot of military experts i've talked to, both serving and former serving have said they don't know where this came from, transgenders are serving well. it's an effort to move forward in terms of diversity in a military that represents the diversity of our country. again, when you're talking about 1% of the u.s. population that serve, depending on the numbers you place in terms of the

numbers of transgenders in the service, the upper end might be around 6,000 in the active force, we really don't know. that's what the rand report says. that's about an army brigade combat team, that's two marine expeditionary forces or a carrier battle group personnel under way. it's a lot of people who are doing quite well as part of the military teams. a lot of us said we don't get it, don't understand. and the cost rationale that was thrown out there just didn't seem to link up with what research had been done. >> it seems the rationale either way fails. either some say it's such a small number u it doesn't matter. if it's such a small number, it's demin muss and you shouldn't of ts stra size an ene group. the aim is to make the military as effective as possible. you take on the last aspect, why it's happening. do you think this is just a naked political ploy to shore up

the president's standing with a culturally conservative right after maybe getting them upset over how he's dealing with sessions? is this a make good? >> i don't know. if it is, it's very short term and not strategic in nature and it's hurting people. to use the president's term, it's mean to people who volunteered to serve their country. i'll go back to the numbers again. if it is 6,000, chris, that's 6,000 out of 1.5 million people in uniform. that's less than .004%. it's just a small number, and there are indications there's no issues whatsoever in terms of either costing -- you put up the viagra piece a little while ago. i think that's been thrown around in the last couple days, too, we spend more on viagra -- everybody is now getting upset about viagra. someone should know that those who experience post-traumatic stress disorder have a significantly higher rate of

erectile dysfunction than others. that's what viagra and see alice is being used for, part of the treatment of thousands. all these things don't make sense. >> first of all, that's a fair point. we shouldn't disparage people with legitimate medical need. it was just to show if they're worried about pleasing a sensitive cultural minority, they could look at lots of different categories. you're right. you outline the right issues. i appreciate it. general, thank you very much. >> always a pleasure, chris. >> pleasure is mine. thanks to our international viewers, thanks to all of you for watching. for you, cnn "newsroom" is next. for our u.s. viewers, a lot of palace intrigue. we need to get to the bottom of it and we will. let's get a fter it. >> senior people here leaking on each other. i would tell my colleagues to stop doing that. >> the problem is a lot of disorder is coming from the top, from the president. >> they need to be doing the business of governing this country, not spending all of their time and energy pulling

their knives out at each other. >> the fact that republicans in the senate won't go and deal with this now is absolutely embarrassing. >> determined to do everything we can to succeed. >> what we have before us now are a series of bad, badder and baddest choices. >> i heard a girl scream "help," and i look over and i see her fly out. >> she was screaming for her mom. her mom wouldn't wake up. >> sick to my stomach. >> this is "new day" with chris cuomo and alisyn camerota. >> all right. good morning. we welcome our viewers in the united states right now. >> happy to have you. >> sometimes we say around the world, but we'll stick to the united states for now. this is "new day." the white house' crackdown on leaks took a bizarre twist. there's a lot of continue very zee going on. it needs to be cleared up. it's centering around the new white house communications director, anthony scaramucci. he took to twitter last night, calling for a federal investigation into t