thank you very much. >> glad to be here. liz: mark travis of intrepid gets a history day here. [closing bell rings] we're above 21,000 by 10 points. the s&p looks to break a new ceiling, 2405. david, melissa, over to you. david: thank you very much. stocks surging into the close. look at this chart and think of what is going on in the world right now. melissa: that's a great point. david: it is extraordinary when you think of all the trouble in the world. we have terrorist attacks. we have trouble for the president at home. meanwhile the dow is pushing higher for the fifth straight day, closing up, looks like it will settle around 73 points, ending back well above 21,000. this is the first time in 2 1/2 weeks for that. meanwhile s&p 500 is closing at a brand new record high. the nasdaq ending in the green as well. what a day. i'm david asman. melissa: i'm melissa francis. this is "after the bell." more on big market movers but first here is what else we're

covering in this very busy hour ahead. washington anxiously awaiting a report just how much the republican health care plan will cost and how many people it will cover. the numbers could come out at any moment. meanwhile the president meeting with heads of state in two european nations but the highlight, a meeting with the pope, more on what was discussed there. new details emerging in the uk terror suspect and his network now unfolding. a live report from manchester on who officials have now in custody. among our guests this hour, former military analyst kara miller, former pastor robert jeffords and brian babin and judge andrew napolitano. david: market getting good news from federal reserve notes. that they will not make any moves in portfolio or notes until they are sure the economy

is on a sound footing. lori rothman on the floor of new york stock exchange. we were in the green before that but that is what really led to the market ticking up, right? reporter: you hit the nail on the head, david. this goes back to the may 2nd, may 3rd meeting, what also fueled the bulls, the statement that the fed plans to grad wally unwind the $4.5 trillion balance sheet. a little bit in the weeds. we'll leave it at that. basically means no shock to the financial system. at least that is the interpretation of among wall street investors today. we did have a record for the s&p 500 today. let's show you particular stocks that drove the s&p to levels never seen before. number one, intuit, up almost 7% today. this is the tax preparation software-maker. shares rose on good earnings and also on reports incredibly strong demand for the quick books cloud products. subscribers rose something like 59%, to over 2.2 million users in the third quarter.

rounding out the list first solar raised to market outperform. that is a nice upgrade for them. energy and charter communications are the top winners. dow closing above 21,000 for the first time in a couple of weeks. investors really like what they heard from the fed today. that was the key focus from the folks. david: it settled up a little, lori, 21,012. the second highest close in history. a great day for the markets. melissa. melissa: oil snapping a five-day winning streak on reports closing down slightly to end 51.36 a barrel. ahead of the tomorrow's big opec meeting and drop in u.s. supplies for the seventh week in a row. david: speaker paul ryan doubling down on the tax reform timeline. take a listen. >> december 23rd. that is the date. we have to get tax reform by then. we're confident we can do that. >> confident that the tax reform finished on the president's desk can.

>> by end of calendar year. david: looks pretty sure of himself? we have danielle dimartino booth and layfield reports ceo, john layfield. great to see you. it sounds great, i'm hoping he's right but after that mess with the health care bill i don't know that he is. what do you think? >> i agree with you, david. i hope that he is right. it does sound great but i don't think it is growing to happen in 2017. you had steve mnuchin saying would not happen most likely by the august break. if it doesn't happen by then, doesn't happen most likely until early 2018. senators are in re-election mode. this thing might not happen for the next 18 months. i think at least. and something, there is few things we could get done. corporate tax we could get done, repatriation. cap-ex spending could be and they want complete tax reform and i just don't see that happening. david: danielle, they're breaking a mold with what they have planned.

what they plan to do is cut these taxes before they figure out how they pay for them. they believe there will be enough economic activity generated by the tax cuts so they pay for themselves. that is tough sell in the inside the beltway. >> try selling that to chuck schumer and getting away with it. david: try selling that to some republicans and getting away with it. >> absolutely. you can't even get the republicans to play nice in the same sandbox, much less bring democrats on board. you know, i think markets would be rightly skeptical about the timing but on the other hand as we know today, markets are plain, they're just happy. melissa: yeah. the cbo set to announce their analysis of the republican bill to repeal and replace obamacare and it could paint a different picture of the future of health care in america this time around. fox business's gerri willis is in the newsroom with the latest. gerri, what do we expect? >> that's right, melissa, it

could come absolutely anytime. the scoring of trumpcare, the gop bill for repealing and replacing obamacare will be watched closely by both the left and the right and the critical issues to watch out for, there are two. one, whether the bill can save $2 billion over 10 years. if not, then the bill can not be taken up under reconciliation rules which allow senate republicans to pass a bill with a bare majority, 51 votes f it can not pass the test it has to go back to the house to be rewritten in order to achieve that threshold. understand 2 billion is pretty much a rounding error and should be achievable. other critical issue is this, how many americans will lose coverage? the cbo said the previous gop bill would result a loss in coverage of 24 million americans compared to obamacare. democrats used that information as a rallying cry against the legislation. now, keep in mind even if the bill get as thumb's up from the cbo, many in the senate want to

completely rewrite it, possibly adding more money for subsidies, a move that would make the legislation more objectionable to deficit hawks, more expensive. finally the bill has undergone dramatic changes since last scored bit cbo. those changes would allow states to waive out of two key obamacare requirements. essential machine dates insurers must cover and community rating which prevent higher premiums for those with preexisting conditions. melissa. melissa: gerri, thank you so much for that. danielle and john are back with us. danielle, what is your bet how this will come out? >> i think we've got even odds at this juncture. as she said the two billion is a rounding error. melissa: right. that is ironic. >> exactly. on the other hand though it is going to come down to the number of people who will be losing coverage and how much the mainstream media globs on to that and looks for convenient

sound bites. we'll have to see. melissa: john, at the same time you balance bense, look at announcementments past few days. blue cross-blue shield, kansas city, pulling out of 32 counties. does the whole thing implode by 2018, what do you think? >> i think there is a good chance it will implode by 2018, but republicans what in the world were they doing for last seven years? melissa: there is that. >> they all ran on this. they all preached about this they don't have anything on the president's desk that is meaningful. they're still -- medicaid being raided in this. costs being passed to the states. states don't have the money to fund it. politically unpalatable for 24 had people to lose insurance coverage. we're arguing over who pays. we're not arguing to how to fix health care. that is the problem. melissa: no way to do the math the whole thing work, without saying taxpayers have to put in a whole lot more money for obamacare, and money goes to insurance companies, i don't

begrudge them, they're providing a service but how do you sell that? >> you don't. again i think politically impalatable is really good way to characterize what is coming. you have to consider it is in some of the fiscal imbalances with so many of these states who are dealing with pension issues and other big challenges and i just, i think this will be a really hard sell. to john's point, why on earth if they had all this time on their hand with a tangible, actionable plan not in place on day one when president trump stepped into the white house. melissa: that is frustrating but we can't go back in time. david: we have a salesman as president getting up to speed. the united ceo facing tough questions at the company's annual shareholder meeting promising he is doing all he can to focus more on customers ever since that viral video surface of a passenger violently ejected from the plane. outside the event, group for

fight for 15 claiming to represent baggage workers and cleaners were then into custody blocking traffic and refusing police orders to move. messa: another sca rocking va, tting health of our nation's here rosier at risk. wait until you hear details of a shocking new report. david: jam-packed schedule for president trump, including a sit-down with the pope earlier. the two have been critical of each other to say the least in the past. what was discussed behind closed doors today? we have a view. melissa: i'm very interested to know that. more raids in the uk as law enforcement uncovers brand new details about the terror suspect and where he may have gotten help. we'll take you live to manchester. >> an attack this successful it is almost always a group of individuals, a network and a person who has been trained outside of the country where the attack occurred. ♪ predictable. the comfort in knowing where things are headed.

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melissa: another packed day for president trump. the president meeting with belgium leaders in brussels after coming face-to-face with pope francis, no relation, this morning in italy. blake burman standing by in italy with the latest. blake? reporter: melissa, president trump is in brussels tonight. tomorrow he is set to meet with european leaders there, along with those representing nato member nations. it's a gathering as you know takes on now added significance after the manchester bombing earlier this week when he was meeting with the belgium prime minister earlier today. president trump once again repeated this vow as it relates to terrorism. >> when you see something like happened two days ago, you realize how important it is to win this fight.

and we will win this fight. it is a horrible situation. what took places horrible, unthinkable but we will win, 100%. reporter: now the president began his day meeting pope francis at the vat tan. those two met -- cat van. and those two met for half an hour. we're told they talked about peace and curbing persecution of christians. melissa, this wrapped up the first phase of the president's first foreign trip. over the weekend he met with arab leaders in saudi arabia. he went to jerusalem, met with the israeli prime minister. went into bethlehem met with the palestinian prime minister. and today headed over to the vatican to meet pope francis. as we're here abroad there is pretty big domestic news as it relates to president trump. senior white house official telling fox that joe lieberman is now out of the running to become the next fbi director. it was president trump himself just a few days ago who identified lieberman as the leading candidate.

the issue here is apparently conflict of interest because the president hired marc kasowitz as his personal counsel digging into matters dealing with the russian investigation. lieberman works at the same firm which kasowitz is a member. hence they can't work side by side potentially. melissa: blake, thank you for that. david: david: sicily, blake gets breaking information. more on president trump's meeting with the pope, here is pastor robert jeff press, trump faith campaign advisory member and fox news contributor. we're always happy to see you, pastor. thanks for coming on. to use a southern phrase these two gentlemen had words in the past. were you shocked as i was how well they seem to get along? >> no, i wasn't shocked along. i have been in meetings, i moderated a a meeting one time between president trump and never trump religious leaders. they came in david, all prepared

to give the president a piece of their mind. by the time it was over he had disarmed them. he listened to them. they were eating out of the palm of his hand wow. >> i wasn't surprised the at all the pope and president emerged as bffs. they were willing to turn the other cheek. david: pastor, as you well know, this business channel, what intrigues us about the relationship because of the pope's critique of capitalism. i understand the catholic church's views on materialism. that is not the road to happiness. i get that but at the same time if you care about the poor which of course the pope does and he says he does, wouldn't you think that he would have more admiration for the best system in the world history bringing poor people out of their problems into the middle class? >> that's right, david, i think we all agree the bible is not primary an economics book but it

has a lot to say about saving and investing money and it's true the bible never says money is the root of all evil but says the love of money is the root of all evil. david: right. >> frankly poor people can idolize money as much as rich people. david: that is the philosophy of it, but the economic system, there is no economic system that has done more to lift the poor out of poverty than free-market capitalism. i would think maybe at some point donald trump would try to, try to convince the pope of that? >> well, i don't think either man convinced either, the other person of his point of view today. you know, in addition to capitalism, the most vociferious attacks from the pope against the president have been against his policies of protecting our nation through immigration policy and building the wall. david: yes. >> the pope called that unchristian. i think the pope is a good man. i think he is just confused

about the role of the church and the role of government. yes, as christians we're to be kind with those in need but government has a different responsibility. that is to protect its citizens. glad we have a president understands that. david: the pope grew up in argentina which has form of capitalism not really free market. it is crony capitalism. >> yes. david: let's talk about one thing they did agree on, that is the state of christians particularly in the middle east as they are being driven out, literally driven out by the muslim extremists in those countries. i imagine they came to common form on that subject? >> i know that is something very much on the president's heart. we talked about the plight of persecuted christians. and when it comes to syria and other christians in the middle east i think the pope's remedy for us for us to bring in more refugees. i think the president understands that probably the best way to deal with persecuted christians is to eliminate the source of the persecution, which

is why he is so outspoken and rightly so, against eradicating radical islamic terrorism. david: pastor robert jeffress, always appreciate you coming in. melissa: mick mulvaney facing tough questions on capitol hill as democratic leaders continue to slam the president's plan. he has answer for them, doesn't he david, every single time. brian babin, member of house committee on transportation and infrastructure sounding off. disrespecting our nation's heroes. why some georgia veterans are forced to fight for the american flag. >> you don't mess with my flag. we should be able to put our flag out anytime we want to. hit ♪ [ dinosaur roars ] onboard cameras and radar can detect danger all around you. driver assist systems can pull you back into your lane, if drifting.

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david: breaking news out of manchester. sixth arrest in connection with the manchester arena bombing. moments ago you're looking ate r

manchester area. police confirm property is searched and a woman has been arrested. we'll have more on this live from manchester in a moment. stay tuned. melissa: budget director mick mulvaney and treasury secretary steve mnuchin testifying today over the president's budget proposal. this as the plan was slammed by democrats and some republicans who strongly opposed it. adam shapiro is standing by in washington, d.c. with all the details behind how this budget battle is unfolding. break it down for us, adam. reporter: if it would be a tv show we would call it let's make a deal, melissa. to sell the president's proposed 4.1 trillion-dollar budget on capitol hill. it ran into opposition from democrats don't buy it. representative barbara lee, democrat from california, told mick mulvaney says is destroys lives around force americans to fend for themselves. >> you're forcing families to put food on the table and roof over their hid.

that is downright wrong. you're forcing them to choose between life saving prescription drugs and higher education. again that's wrong. >> worry not kicking any deserving person off of any meaningful program. we want to help people just as much as you do. republicans care about poor people as much as democrats. reporter: proposed budget cuts, billions of dollars over 10 areas popular social programs, medicaid, food stamps, social security disability insurance. the administration insists cuts come from future funding growth in those programs and does not cut their current spending levels. treasury secretary steve mnuchin appearing before the house ways and means committee testified that tax reform and the proposed budget must generate 3% economic growth annually or the nation's debt will continue to rise. even before tax reform, passing a budget, secretary mnuchin urged lawmakers just moments ago to meet the nation's current

debt obligations. >> i urge you to raise the debt limit before you leave for the summer. >> so is your preference for congress to pass a clean debt ceiling? >> that is my preference. reporter: congress skips town at the end of july for its summer recess. there is a deadlock right now between republicans in congress who want the border adjustment tax as part of new tax reform legislation and trump administration says border tax in current form will not work. melissa. melissa: so appalling. they're not cutting about spending. they're talking about cutting growth in spending. we're choosing between a roof over our head and food -- i don't know how you stand it, adam. thank you. i can't take it. david: i can understand why not. president obama's treasury secretary larry summers critiquing trump's 2018 budget and mick mulvaney's defense of that budget with our own maria bartiromo. take a look.

>> director mulvaney is being dishonest. >> what was dishonest what he said? >> he is suggesting, because he is suggesting that we used same practice as their practice. they are the first to depart from what the whole big world thinks. david: what happens when the whole big world is wrong, as larry summers was when he predicted that the obama economy would grow at 4.5%? melissa: so close. so close. david: joining us weigh in, republican congressman, member of house committee on transportation and infrastructure brian babin. congressman, the obama economy actually grew at 2.1% which is pathetic looking at historic averages. larry summers said it would grow 4.4%. now he is calling this budget and which you say what? >> i say malarkey.

take it for what it is worth, a grain of salt, what he says. i'm very pleased. i want to commend the president on this budget. it is a budget that lives within our means. it pluses up the military, our border security. and, and puts us on a sustainable path, a 10-year balanced budget, something we have never seen from president obama in any of his budgets which never balanced as far as we could see out there, congressman, it is still a 4 trillion-dollar a year budget. $4 trillion a year, and we just heard from congresswoman who was complaining that people are going to be driven out of their homes by it? >> again, i think it is just poppycock. that is hype. we've seen huge, huge, increases in these types of programs through the obama years. and now we're going to have to start living within our means. i have 13 grand children, david and we are just simply going to

have to stop mortgaging their future. we've got to start living within our means on sustainable path. this budget will balance as i said for the first time. we haven't seen this in many, many years. and i'm very pleased. david: congressman, one group that probably will be heard directly by this budget will all those lobbyists inside of the beltway. i'm sure they're out in force. you're kind of new to this business of being inside the beltway. have you seen the lobbyists? are they scrambling like roaches when you turn the light on? >> it is a complete different world inside the beltway here, coming from east texas where i'm from. i represent part of houston over to louisiana. i have nine counties. that is the real world out there. those are the people that are having to pay these taxes and having to pay for programs that they don't benefit from. we've seen out of control growth and in medicaid, especially this expanded medicaid. so it is high time that we start

reining some of this stuff in. putting work requirements back into welfare. david: yeah. >> makes sense. it makes common sense. david: right. >> i applaud the president and i am looking forward to seeing a budget like this put into practice. david: by the way work requirements were put in place by a democrat, president clinton with republican congress, they worked tremendously well. got a lot of people off welfare rolls and raised people out of poverty. congressman we have to leave it at that thanks for joining us. brian babin. >> thank you, david. melissa: did you see this? massive landslide burning part of california iconic highway 1 in big sur. dirt covering a third of the road along the state's coast. this is latest in number of landslides, road closings in the state after one of the wettest winters in decades. david: that has to be most beautiful drive but scary. melissa: can be scary to drive along there.

david: see exactly why it is scary. police hunting down the network behind the manchester bomber. you're looking at live pictures a raid where a sixth arrest was just made. we have more on breaking developments just next. touching tribute to the victims by the new york yankees, playing, god save the queen." fe? what did you have in mind? i don't know. $4.95 per trade? uhhh. and i was wondering if your brokerage offers some sort of guarantee? guarantee? where we can get our fees and commissions back if we're not happy. so can you offer me what schwab is offering? what's with all the questions? ask your broker if they're offering $4.95 online equity trades and a satisfaction guarantee. if you don't like eir answer, ask again at schwab.

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. david: more on that breaking news out of england. a raid under way in the greater manchester area where a sixth arrest has been made in connection with uk concert bombing. the arrest made moments ago. fox news' rick leventhal is live in manchester with the latest. rick? >> reporter: david, manchester police confirming that arrest came in the town of blakely, six or seven miles outside of manchester in connection with the bombing. they did arrest a woman there in blakely at a home, and the raids continue across this city and across this region. there were other raids earlier today that resulted in three more arrests. another man arrested in a separate incident and yesterday we were told the bomber's brother was arrested here in manchester. that bomber has been identified as salman abedi, 22 years old, a british national with libyan origins. he's the one they say blew himself up along with killing

22 others and injuring 100+ people. 20 still in critical condition. they arrested abedi's older brother as i mentioned, libyan authorities announced the arrest of abedi's younger brother in tripoli, libya. he confessed to being a member of isis, they were working on the plot together, and their father who allegedly may have radical ties was taken into custody for questioning today. meanwhile, the united kingdom on highest alert level because of concerns that whoever made that sophisticated explosive device could have made others and may be a terror network at work here, that could be plotting more attacks, so they have activated more than a thousand british soldiers to monitor key sites, including the houses of parliament because they want to make sure those key sites are, in fact, secure and give manchester police and other police across

britain the room to do their job as the mourning continues. i want to to show you where we are in st. anne's square, there are hundreds if not thousand of bouquets and candles left in honor of the memory of the victims lost in the horrific attack monday night. a steady stream of people coming to st. anne's square throughout the evening and it is a remarkable and powerful sight, the people we have spoken with will not let happen here, the attack here divide this community, david. david: rick, thank you very much, from england. switch gears quickly, that cbo report on the health care bill is out. gerri willis has it, she's been looking at details. go ahead, gerri. >> reporter: details from the report out from the congressional budget office, scoring that health care law coming out right now. here's what we know. the effects on the federal budget, this law would reduce federal deficits by 119 billion.

the previous law would have reduced it by 337 billion. so still, well within the framework. they can't put this through the season. no problems, with a 51 majority and pass it, so that's the good news for the republicans. the bad news for the republicans, it would reduce the number of people who are covered in this country over and above obamacare by 23 million people. recall that the last report said that the number of people who would lose coverage over the period by 2026, 24 million. so the difference here about a million folks, not very different, but sure still to draw a lot of fire from democrats out there, and just to review these numbers one more time. effects on the federal budget, what we're seeing here is that this law would reduce federal deficits by $119 billion. that's a lot less than the previous law which would have reduced them by $337 billion, and then when it comes to the

number of people who would be covered. 23 million people would lose coverage by 2026, compared to 24 million under the previous law that was submitted by the gop. those are the details out this moment. what we're hearing is that leadership was briefed on these numbers moments ago. they're chewing over this, and i'm sure you are about to get a lot of people weighing in on this. back to you. david: thank you. melissa: thank you, back to the situation in manchester. tara maller is former cia military analyst. you heard the report that came a little bit ahead of you. a couple things about it. now it's looking like the allegations are and the arrests would indicate there were other members of his family who were members of isis. is that something that should have put him on a list and the entire family on a list that would have required more surveillance than what they got? >> seems like in the last 24 hours, we've learned a little more about this individual, and

it seems like although hindsight is 20/20, there were signs that may have been missed. not only was the individual on law enforcement's radar, he had traveled to libya recently, calls into authorities about suspicious behavior. he seems to have not been operating alone, not a lone-wolf attack, those sometimes fly under the radar because they're not in touch with other people. the bomb seems sophisticated. seems he had assistance making it, training for the use of the bomb itself or purchasing supplies. again, we don't know what law enforcement had on him and didn't have on him, could have had red flagged missed. two brothers arrested, father arrested. international investigation not only in the uk but libya as well. melissa: one of the most troubling things about all this, it was a relatively sophisticated bomb though it looks to be home made. makes you think or a lot of people suspect that the person who built it wasn't necessarily

the person who blew himself up. if you attain that level of bomb making in general, you're not the one blown up by the bomb, you're going to be around to make another bomb. do you think that's a realistic assumption? what do you think about that? >> sure, absolutely reasonable theory. he could have been involved in the purchasing and/or building, could be somebody with more expertise and bomb building helped make the bomb and he was tasked with wearing it and designated as a suicide bomber. we've seen that before. they're going to look at forensics of the bombs. materials, the type of bomb that can be tracked to specific types of training, tracked to where he purchased the materials, that's part of the investigation as well as not just looking at individuals but looking at e-mails, phone communications, computers and anything else they apprehend in the investigation. melissa: tara, thank you. >> thanks a lot. david: coming up, the cbo report is out on the new health care bill. we're poring through the numbers. the key question to be asked,

and it will be answered shortly is whether or not the house is going to have to have another vote on this health care bill in lieu of what the cbo now tells us.

. david: breaking news, it's out. the congressional budget office releasing analysis of the republican bill to repeal and replace obamacare. back to gerri willis with more details. gerri, a big question is whether or not the house has to vote again? your read is that won't be necessary, right? >> reporter: my vaed that's not necessary. what were we looking are? we wanted to be sure this bill could reduce the federal deficit by $2 billion. it's a low threshold. understanding of the size of the federal budget, the size of the deficit, that's a rounding error, they met the hurtle today, reducing the federal budget deficit by $119 billion,

that easily makes that hurtle. so it looks like we're not going to have another vote by the republicans, there is more in this report i'm poring through right now. as i get more details. i'll come back to you. david: thank you very much, gerri. melissa? melissa: here is brad blakeman, former deputy assistant to george w. bush, what's your reaction to what you heard right now? >> my reaction is positive am the house bill becomes a good start for senate negotiation, they're certainly going to do their own bill, but there's nothing i think alarming other than the fact that obamacare as we know is broken and must be fixed and on the republicans' watch to fix it. melissa: i mean, that number -- we're trying to sort through all the numbers and see what's going to jump outment i feel like no matter what, there is something democrats will seize on to make the argument, there's going to be people laying down on the ground and dying in the streets as a result of this plan. >> let's remember the cbo was

off by 14 million people under obamacare. they're not very good at predicting the future, and the behavior of people as to what they're going do with their own money, but we do know this, that we need to come up with a plan that covers people affordably and that gives people choice. this is currently not the option under obamacare. now republicans ran collectively, not just the president orepealing and replacing obamacare, the burden is on them and only have this year to do it. once we move into 2018, it's all about every man and woman for themselves for elections. so if i were the republicans in the senate, i would say this is good fodder. this is good ammunition, but you have to come up with your own bill that can be reconciled. melissa: the challenge becomes for people, they're not stupid, and knew last time around health care has gotten more expensive, deductible has gone up higher, hasn't worked out for the better. at the same time, they're afraid of the idea you're going to lose everything.

so it seems like republicans have to make the insurance situation feel materially better to people at home within the next year in order to have sort of fulfilled their promise, that's going to be hard. >> it is going to be hard, when you reach the fall, they're going to be getting noise again, and that's under the old system. we have to have a plan of transition, and we have to have a plan of implementation, and the longer we seek to solve this, the longer the transition will be and the longer the wait will be for the new system to kick in. right now it's probably around 2020 before we eliminate obamacare in its entirety. melissa: they're going to have to find a way for people to find immediate relief. unfortunately, that's the society we live, in the immediate gratification. brad, we'll see, thank you. >> pleasure. david: by the way, in terms of the coverage figure we're hearing about, the question is whether people are leaving of their own free will. melissa: people aren't forced to buy insurance that weren't buying it before or -- or if

it's what you say. david: the president who may have spied. details on a new bombshell report claiming the obama administration conducted illegal searches on american citizens. judge andrew napolitano is here to weigh in next. there's nothing traditional about my small business so when it comes to technology, i need someone that understands my unique needs. my dell small business advisor has gotten to know our business so well that is feels like he's a part of our team. with one phone call, he sets me up with tailored products and services. and when my advisor is focused on my tech, i can focus on my small business. ♪ ♪

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remember the waiver states could opt out of essential health benefits or community ratings, by 2026 paying premiums 4% lower than current law continued until that time. about a third of the population in this report, resides in states that make moderate changes to market regulations, here's what they find. a 20%, 2-0, 20% cut in premiums in the nongroup market by 2026. for those states that also do obtain the waivers, that's about a sixth of the population, they would see lower premiums, though the cbo doesn't say by how much, in 2026. so that's a big surprise in here and makes sense from a business point of view. big surprise, though, these premiums would decline under the republican plan. back to you. melissa: great details, thanks, gerri. david: release of once top

secret documents showing the extent which the national security administration under president barack obama routinely violated standards, commitments and the constitution itself to spy on americans without a warrant. something our next guest has been warning us all about for years. here now judge andrew napolitano, fox news senior judicial analyst. i could ask you how you know, but specifically what the top secret documents say five out of every 20 nsa internet searches violates safeguards the government was supposed to keep. >> the reason this is extraordinary, this is one of the rare federal courts in the united states that meets in secret. no press is allowed, no adversary is there. we don't know what the rulings are, but they released a ruling last night that they issued last month which chastised the nsa for spying without warrants. the nsa acknowledged that it violated federal law but the problem is far worse than the court acknowledged. david: back to the book itself.

4th amendment says no warrants shall issue but upon probable cause supported by oath or affirmation and particularly describing the place to be searched and the persons or things to be seized, the fisa court, which you mentioned was supposed to be the instrument of that amendment. >> instead, it's the enabler of the nsa. it doesn't issue warrants that particularly describe the place to be searched of the purpose or thing to be seized. issues warrants for groups like everybody in zip code 10036 which is where we are now. all customers of verizon, 113 million people, and warrants are not based on probable cause, based on governmental need. david: we got a taste of what this means by the unmasking of general flynn. that was not a wiretap focused on general flynn, it was a secondary or tertiary. >> you are exactly right. use of nsa generated data without a fisa warrant, under

the guise of being for national security purposes used for blatant political purposes. a serious threat to the freedom of the republic. david: not only the second or third person, they could go out to the sixth person, six degrees of separation. >> six degrees of separation, covers about 330 million people. the population of the united states. that's what nsa claim thats can legally spy upon. david: judge andrew napolitano, thank you so much. melissa: don't mess with my flag, veterans are fighting to wave the american flag outside their own home. often feel dry? a dry mouth can cause cavities and bad breath. over 400 medications can cause a dry mouth. that's why there's biotene. biotene can provide soothing dry mouth relief. and it keeps your mouth refreshed too. remember while your medication is doing you good, a dry mouth isn't. biotene, for people who suffer from dry mouth symptoms.

>> they fought for our freedom but can't display the american flag whenever they want. residents in a georgia neighborhood are outraged after at homeowners' association told them they can only fly the flag outside their homes for 23 days out of the year. >> unbelievable. the hoa telling the homeowners the rule is to quote maintain

the esthetic and architectural theme of the community. fox asked one veteran if he plans to taking down his flag. he told them whenheim dead. >> hoa is homeowners' association for anyone out there who doesn't know the abbreviation. >> there's reasons for disowning but not zoning nazis. >> risk and reward starts now. >> everything's being sucked up. >> these intelligence agencies are more powerful than the president himself. >> one of the accusations ofrict they were looking at this information politically searching opponents and going after people to try to bring them down. >> sometimes in order to understand the importance of the report and assess the significance, it was necessary to find out or request the information as to who that u.s. official was. >> unmask people who didn't need to be unmasked. >> absolutely not for any political purposes to spy, expose anything. >> these are crimes. these people should go to prison. they must be prosecu