happy place. that is wrap for fox news. thags to our panel. i'm jon scott. we'll be back with another edition of news watch next week. >> gregg: fox news alert. new allegations in the irs abuse scandal. attorneys representing tea party groups now say they do have evidence linking a top agency official to targeting of conservative groups. the woman at the center of this controversy is lois lerner, she last refused to resign and now on administrative leave but, she is still taking a paycheck. hello, i'm gregg jarrett. welcome to a brand-new hour inside america's news headquarters. >> heather: i'm health health. new heather childers. >> the law of justice claiming the targeting of conservatives went on longer than what was

previous disclosed. molly henneberg is live in washington with the latest. >> molly: lois lerner has been work at the is for 27 years and she is not about to leave now. republican and democrat sources say the new acting commissioner asked lerner to resign and she said no. she is on administrative leave with pay. lerner who pled the fifth at congressional hearing was the head of the tax exempt division that was targeting groups for extra scrutiny. some republicans say she shut shoo shouldn't be getting her paycheck. >> she is is a career bureaucrat. they have great protection. we have to go in and protect the taxpayer. >> republicans say lawmakers should get a chance to question lerner since she made a statement before asserting her fifth amendment rights but democrats say it wouldn't do any good to call her back. >> i know that 99 chance she

would. >> the american center for law and justice she allowed the targeting to continue longer than she has claimed publicly. they released a letter sent to a tea party client dated march 16th, 2012 with her signature on it. >> she said she found out about in june of 2011, and then put a stop to it. these letters didn't go out until march of 2012. we still have clients getting letters from the irs as late as may 6th with more questionnaires asking for membership lists, donor information, facebook page info. it goes on. >> molly: they are planning to file a lawsuit against the oirs behalf of some of the tea party clients ex week. >> heather: molly, thank you. >> gregg: and yet another

development. we're learn learning new details with b eric holder's role. the department of justice acknowledge ago tha he was one of the senior officials involved in the decision do issue a search warrant. that warrant referring to rosen as a co-conspirator in the 2009 leak of classified information about north korea. authorities obtained phone records from fox news including those and a number that matches the number of rosen's parents. we're going on to have a full report on this story straight ahead. >> heather: darrell issa say he may recall former secretary of state hillary clinton for more questioning in the benghazi scandal. chairman issa acknowledged there are several plans before asking her to testify again, that includes his request for interviews with 13 state

department officials about the deadly attack that claimed the lives of four americans. that includes several top advisors to secretary clinton and also included victoria newland the state department spokesman who was accused of changing the administration talking points. >> so it's a series of scandle that is tainted go president obama and consuming his attention as the white house tries to focus on its second term agenda. what is the political impact of all of this and is president obama especially vulnerable? jamie weinstein is the senior editor of the daily caller and joins us with more. so, i wanted to go some of the fox news polls that are pretty telling. this first one, we asked about the three current obama administration controversies and if we can take a look. you can see 32% say that the irs scandal is the worst. that is followed benghazi the

justice department seizing the phone records of and the irs scandal interestingly tops the list for both republicans and democrats. still republicans more than likely to pick it troubling by a 11-point margin. which scandal do you think will have the most impacted on the administration? >> i think the fox news people that were polled are right. i think the irs scandal is the one that is potentially most trouble some. you have some democrats suggesting 'a special counsel is needed to see how deep it went. i think americans generally think of the irs, they don't think of it fondly. then to see abuse its power this way under a democrat president targeting conservatives but even democrats can see if it was a republican president they don't want to see an agency targeting a specific group. that has the most potential to

threatened the obama administration. particularly if they could find a link to the white house which at this pointed there is none. >> heather: people think there may be, half the registered voters think that the white house either knew what was happening or worse yet, was actually behind the operation, 37% think the administration knew that it was going on but did not initiate the policy while 29%, they believe the white house directed the irs to go after those groups. what do you say about that? >> there is certainly evidence back in the early days of the tea party where democrats were encouraging these groups to be investigated just to make sure they were following the law. no one said they should be the only ones investigated, but perhaps it's an unconscious thing. you hear democrats and the president speak ill of tea

party. maybe low level staffers or high level staffers at the irs without communication with the white house took it upon themselves to do a favor for a president or a party that they happened to like. it might be a connection that is rhetorical connection, but right now there is no evidence there was a directed connection. >> heather: and then we have to talk about benghazi. in 2008, i know you recall president obama, he pledged to have the most open, most transparent administration ever. on benghazi, voters say the exact opposite is true. 60% majority say the administration is covering up what happened. that is more than twice as many as the 28% say the obama administration is being open and transparent. can the president recover from this? >> it's right what he campaigned on. this is guy who is going to take the reins of government and make

a it transparent and make it effective. with this scandal and all these scandals it shows at best he is a aloof from the process and can't control the reins of the government and is only learning about it with the rest of us on the news so some someone can effectively control government and make them look like a non-actor in these things. >> heather: i wanted to jump to in. this is perhaps the most damaging, most telling of all the polls we took a look at. more voters are questioning president obama's honesty. for the first time in a fox news poll, less than half of voters think the president is honest. when it comes to a question of integrity and character, how does the president rebuild trust with the american people? take a look at those numbers. >> i think he has to show or prove that he had no knowledge

of certain things, especially irs scandal and along those lines. appoint a special prosecutor, i am here to get to the bottom of this. i'm going to appoint a special prosecutor to look exactly what happened. if he doesn't get that trust back. what he tried to cultivate with the american people he was trustworthy guy, it will be hard for him to push a second term agenda and get people on board for what he wants to accomplish. >> heather: doesn't help whether you are finding out about these huge issues that are going on by watching them on tv. that is definitely doing him much good in that area. thank you so much, we appreciate it. >> gregg: fox news alert out of france, getting word and confirmation of a french soldier being attacked at a business district outside of paris. military spokesman saying the 23-year-old soldier was wounded

but his life is not in danger right now. more details as we get it. of course, stabbing coming days after a british soldier was hacked to death in broad daylight in suspected terrorist attack that has raised fierce of potential copycat strikes. >> heather: a chilling call for help in the moments are a the deadly ef-5 tornado that swept through moore, oklahoma. a newly released 911 call captured the panic of a day-care center. >> okay, we need help -- this guy is cremated. >> those that survived the twister. they are just begin the process of rebuilding. dominic is live for us in moore, oklahoma with how things look

today. the authorities are saying that preliminary figures that 1150 homes were destroyed. that number is probably going to rise. that doesn't include homes like at 1316 ridge way drive. this is likely to be demolished. police were saying yesterday because of the scale of block after block, it's going to be difficult to get the actual numbers. >> it's going to be a little while before we get a total number of how many of damaged and destroyed due to the fact there are so many houses that are going to be totaled. it's going to take a couple of days. >> reporter: and today volunteers and homeowners sifting through the debris finding what they can salvage. at this house, remains of a grill, that is never going to cook burgers again. a child's car, kid will never ride that and a bench and things you can't actually identify

until you take a closer look. like this teddy bear here, buried in the mud. hopefully it will survive the washington machine and -- washing machine and it's really the homes. that is why oklahoma's insurance commissioner that people need compensation fast. >> we sent a strong message to the insurance companies to say, we expected these claims to be done quickly efficiently and fairly. these are oklahomans we're dealing with. >> reporter: moore's emergency service there is no formalized plan of debris removal and matter of days or perhaps a few weeks before people, as they the rummage through belongings, which has been blown to pieces, is going to be very tough and fast job and be selective as

emotionally go through what remains of their lives. >> heather: thank you. unfortunately there are some people out there that are actually looking to take advantage of the devastation in moore. looters, targeting homes that are left in shambles after the deadly storm. sifting through debris in search of valuables. local police are doing what they can to keep the thieves out of the vulnerable neighborhoods. >> he we have a curfew at night. everybody has to be in their residence or outside of the perimeter area. >> they can work two jobs just like i have had to. they can keep hands off of other things. >> heather: unbelievable. several arrests have been made.

>> gregg: we are off to a very messy start this holiday weekend. emergency crews rescuing someone stranded atop a roof in texas. sudden downpours triggering massive flooding in san antonio. one area seeing extreme weather, mississippi valley bracing for powerful storms as the northeast copes with the cold and wet conditions. what can we expect for memorial day? meteorologist janice dean. >> have a low pressure off the coast that is bringing rainy, wet, unsettled and cold weather across portions 6 upstate new york into new england. it's cold enough for snow where we could get six to 12 inches in the highest elevations. white and green mountains, unheard of and 5-15 degrees below average but a warmup is on the way. we'll be getting into the 70s

and even the 80s by late next week. taking a look the rest of the country, we're looking at potential for showers and thunderstorms across the plain states. a lot of moisture working in from the gulf of mexico and threat for severe storms, not a severe outbreak but we could see hail, damaging winds and isolated tornadoes across the high plains into the missouri river valley and mississippi river valley. close watch on moore, oklahoma, where they have that devastating tornado earlier this week. temperatures are warmer and the storms have subsided so clear and dry conditions for much of the weekend and into the week next week. a quick look at monday forecast. we're going to continue to see showers and thunderstorms across the central u.s. we're not looking at severe outbreak but watch the skies for outdoor picnics. looks good across the east coast. 96 in phoenix and unsettled

weather again for the northwest for much of the weekend. it won't be a total washout. have yourself a great weekend. >> gregg: thanks, jd. >> america's oldest veteran is ready to celebrate memorial day. here he is. 107 years young and world war ii vets and many of his fellow soldiers fell in the line of duty and he wished he could tell stories. he has outlived them all. look at this before and after picture. how about that. he says he will likely spend dated on his porch with a cigar, yeah a little whiskey in his coffee. [ laughter ] >> heather: he looks really young there. >> gregg: he does. god bless him. >> heather: happy veterans' day. >> gregg: it's nice to remember veterans as we always do on veterans' day.

have a nice and safe holiday weekend. >> heather: george w. bush inviting war heroes to the ranch this memorial day weekend. not for kicking back. >> gregg: plus making a comeback from sandy just in time for summer. >> every day, you put yourself back together and say you are going to beat this. if it wasn't for good friends and all our family, i don't think we would have gotten through. you hurt my feelings, todd. i did? when visa signature asked everybody what upgraded experiences really mattered... you suggested luxury car service instd of "strength training with patrick willis." come on todd! flap them chicken wings. [ grunts ] well, i travel a lot and umm... [ male announcer ] at visa signature,

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crackdown on illegal immigrants in arizona. >> gregg: the board walks along injuries jersey shore are back in business months after being devastated by super storm sandy. despite all the rebuilding and recovery efforts, beach vacation rentals those are way down. rick levanthol joins us. >> pointed pleasant beach, badly damaged by hurricane sandy and one of towns that i have made a remarkable recovery. reopening businesses in time for the holiday weekend but now the challenge is getting people to come back. we traveled a few miles down the coast to a town that badly damaged ability storm. they moved quickly to remove debris and homeowners did the same and they are looking for

tenants but the rental market way down, off 80% from last season. >> just the people aren't coming. some people are coming and saying we are supporting you. we're going to go the jersey shore. other people are saying, we're going to sit this season. >> the overall demand hasn't been there. i think it's because of bad publicity we've received. ones they see the areas they will want to come and rent. >> reporter: new jersey governor chris christie walked the boardwalk with the town's mayor and spending $25 million on an ad campaign called stronger to than the storm hoping to spread the message that they are back in business. they depend on tourists and dollars to survive. >> we have got beeps for kids, tennis courts, volleyball, botch dhi ball, we're ready to go.

>> reporter: the weather obviously doesn't help, but locals are confident once it warms up the crowds will return. >> gregg: rick, thanks very much. it looks very pleasant. >> heather: i love bochy ball. >> fighting terror asking to get rid of a law. is the global wash on terror really over. casey stegall will join us coming up. >> and investigation of james rosen going to the very top of the department of justice. we'll have the latest on the unraveling scandal. >> with regard to the potential prosecution of the press for the disclosure. that is not something that i've ever been involved in or heard of or would be a wise policy. my view is quite the opposite. why are twice as many people choosing verizon

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♪ ♪ >> heather: back to one of our top stories this hour. justice department search of fox news correspondent's james rosen's emails. we're learning new details about eric holder decision to issue a search warrant. >> now we know. justice department says it is true. attorney general eric holder sitting on the documents of our own james rosen, something we couldn't confirm before. >> with regard to potential of press for disclosure of material that is not something i've ever been involved or heard of or would think would be a wise policy. my view is quite the opposite. >> rosen's whereabouts in

federal buildings, his parents phone and fox news lines at the white house, pentagon and state department were all monitored. the white house is ordering a 45-day thorough review of the department's guidelines on the issue by the attorney general himself. >> i'm troubled by the possibility that leak investigation may chill the investigative journalism that holds government accountable. journalists should not be at legal ricks for doing their jobs. our focus must be on those that break the law. >> so the attorney general is going to investigate the attorney general and sign off on the end of it that is satisfied? that doesn't make sense to anybody. >> reporter: and acknowledging his involvement they defend the decision. it was part of an ongoing investigation and the department followed all applicable laws, regulations and policies. heather, back to you. >> heather: liz been prann reporting, thank you.

coming to an end, al-qaeda is a shell of a its former self. groups must be dealt with but in years to come not every collection of thug that has label themselves al-qaeda will pose a credible theft to the united states. >> gregg: that was president obama on thursday suggesting he wants to repeal the 2001 law that authorized the war on terror. that has led to a growing chorus of critics that point to the benghazi attack among many invasion that say now is not really the time, mr. president, to repeal the authorization of military force. k.t. mcfarland, a fox news security a.m. lift. good to see you. he said he doesn't want the country to be on a per pet wal wartime footing. look. given the various attacks and attempted attacks and just here on american soil, are talking about the boston marathon, fort

hood, new york times bombing -- and benghazi and overseas. don't we need to be on a war like alert letting our guard down risky and dangerous? >> i listen listened to that speech. it was like president obama said the war on terror is over and i won it. that is that. well, frankly that is not that. the war has changed, al-qaeda core is dead but al-qaeda is bigger than ever and reached into a lot of different countries and their goal is still to attack the united states. if he wants to repeal the law, change the law or amend the law. it's like the difference between having a chronic disease as opposed to an acute illness. it has changed but it doesn't mean the president obama should say, war is over, i won it, now

we have a huge details to mop up because that is not true. >> gregg: in declaring that the global war on terror is over he cited as evidence of that that the bndz attack occurred and he said, well, and that was not directed by al-qaeda conveniently ignoring the fact it was done by al-qaeda linked group. what kind of logic is that? is he in denial or he so whet toted notion, i killed osama bin laden and anything else is not an terror attack? >> the speech was weird. what he did, he said the very obvious. we are out of iraq. we knew that. we're getting out of afghanistan. we're not going on on have another war in the middle east. i got bin laden. we knew that. so why say this? particularly, greg, this was billed at first major speech of his second term. this was going to set the agenda what the obama administration

was going to do. i think the reason the did it he wanted to change the topic so we wouldn't be looking at obama scandals. >> gregg: most americans vigorously disagree with the president. a poll finds that 56% of americans that islamic terrorists pose a greater threat today than right after 9/11. only 28% think there is less than of a threat. he takes it a step further. he bragged about how wonderful and successful the drone program has been in taking out terrorists then he places three severe limits and conditions on future drone use that makes it nearly impossible to use drones. has he essentially ended the drone program? >> you know, gregg, you are a lawyer. he does this. on one hand he said the drone program has been successful. on the other hand, we're never going to use drones. it risks killing civilians and

if we have alternatives to get terrorists. drones and then on the other hand, we're never going to use those again, it was systematic of the major foreign policy address. it didn't make any internal sense. why do it? to distracted everybody's attention from the elephant in the room which is benghazi, the irsz, wiretapping the media. >> gregg: right. there was one other pass peculiarity to it. he wants to close guantanamo bay the prison there, and transfer some of the terrorists to the united states and then send a bunch back to yemen. look, first time around told him to stuff it and he is asking them to do it all over again? >> this is great. first major campaign promise he was going first thing to do is close gitmo. it turns out it wasn't so easy to close gitmo. what do you do with those

prisoners? you repatriate them. over a third of them go right back into business. they are not going to yemen and join the yemen chamber of commerce. they are going back into business. they will go right back in the terror business. we think part of the reason in benghazi, those guys thin gitmo. >> gregg: director of national intelligence the reservedism right was 27% but those were soft terror iflts. guys at guantanamo, rumsfeld pointed out, hundred percent. they are going to back and launch a attacks against america right. >> what do we have gitmo. it's to protect americans. why on earth would you release them to as you point out these are hardened guys.

why would you release them. why would you release them to come bam back and do it again. >> gregg: great to see you. take care. >> heather: we take a closer look facing our wounded veterans as former commander in chief joined some of our war heroes in a rugged mountain bike ride. i'm so glad you called. thank you. we're not in london, are we? no. why? apparently my debit card is. what? i know. don't worry, we have cancelled your old card. great. thank you. in addition to us monitoring your accounts for unusual activity, you could also set up free account alerts. okay. [ female announcer ] at wells fargo we're working around the clock to help protect your money and financial information. here's your temporary card. welcome back. how was london? [ female announcer ] when people talk, great things happen. a body at rest tends to stay at rest...

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mr. bush is hosting the event and its cause near and dear to his heart. >> heather: veterans face a lot of challenges when returning to civilian life. one of the biggest obstacles is finding a job in the troubled economy, getting skill and expertise in a variety of skills. sometimes the best solution for veterans is to start their own business and one nonprofit organization is trying to help them do just that. joining us is charlotte, an executive director of veterans pathways to business success. thank you so much for joining us. on this memorial day as we remember those who have died while serving in the united states armed forces. it's also a time to remember those who served and are still living and those back at home looking for a job. according to the bureau of labor statistics on unemployment the

average jobless rate for veterans in 2012 it was 9.9%. national average was a full 2% lower. you say one way to change that statistic and get more veterans working is entrepreneurship. why is that a good avenue for them? >> entrepreneurship and veterans are the same. it goes hand in hand. characteristics of a veteran is determination, commitment seeing it through the end is the same characteristics that entrepreneur has to have. we're finding research is showing the profile of the veteran and the entrepreneur is very closely correlated. >> heather: what are some of the characteristics that go along with those? >> i think its determination. it's really difficult to start your own business. it takes a lot of courage. it takes a lot perseverance. it takes a lot of hard work. and exactly what our veterans have done when they are in

service. its natural for them to come home and to do that again in starting their own business to support themselves, their families. >> it takes a lot of self-discipline for sure some of challenges, female veterans face 12% unemployment rate and 18-24 age bracket the unemployment rate is 20%. part of the problem, say, they return to find a jobs have been given away. >> think they return in an economy that was not the same when they left. the job situation here in the u.s. as we all know is challenging. so they are coming back with a specific skill set that they gained in the military that may not match the skill set or job position that is open that they

may want. so the economy is challenging as we all know. >> heather: veterans have a skill set that those of us that have not served that can definitely benefit them. in your opinion, what is that skill set that they should be emphasizing when they do return home and looking for work? >> i think again, to keep the hope alive, if you will, to keep the determination and the challenging environment that they thrive in is the same when you start your own business. this is what entrepreneurship is about. if they can transition that skill set back into an environment they left, i think they will be successful. that is where we come in trying to help them do that. >> heather: i wanted to ask you more about that. what help you can offer veterans if they want to get in touch with you. we have some 200,000 people discharged from the u.s. military each and every year. that number is expected to grow.

so how can you help them? >> we can help them if they qualify, if they are eligible and that means for the moment, we only extend our service to the state of florida, clearly if i had more sponsorship, i would love to do it nationwide. if they are eligible, iraq and afghanistan veteran. state of florida they present a business plan that is solid business plan in terms of their own thinking and vision, then once we go through that process we will give them a grant. i'm not talking about a loan, i'm talking about a grant in the range of $30,000 to $40,000 to either started their business or grow an existing business. >> heather: thank you so much, charlotte. we appreciate what you are doing. find a veteran and go out and supported them and buy their products.

>> gregg: just want to clarify for something we said in reference to memorial day. we were talking about how we honor and remember veterans. we mistakenly referred to veterans' day. we meant memorial day. we apologize for that. the judge declaring a mistrial in the sentencing phase of the jodi arias murder trial after the jury was unable to reach a decision on her fate. what happens next. our legal panel weighs in. >> i don't think, what will happen if i get a death verdictly drag on and on in appellate court for years and years. i wanted to get it done and over with.

>> gregg: the fate of convicted killer jodi arias is still up in the air. jury unable to reach a unanimous decision on whether she should get life in prison or death penalty for killing her former boyfriend. now a new panel will likely be picked. until then, jodie will stay in jail. less bring in lis wiehl and trial attorney christian wilson. assuming a new jury will be impaneled. they have to know the facts in the case, so to relitigate in this will be time-consuming and complicated? >> original trial was five months. maybe they will get it down to two and a half. they are not relitigating the graeflg circumstances but litigating deciding whether

should be a death penalty. >> gregg: would it give you pause, maybe in the interested of taxpayers and the families having to go through this trauma all over begin, maybe we ought to toss in the towel and go for life? >> there are three alternatives here. we haven't talked about the third. first is death, second is life without parole but the third is judge could say 25 years to life. that is also within the guideline range. what i would do, prosecutor nor is thinking about taxpayer money. look to the defense, take off death off the table and take off 25 to life, you agree to life without possibility of parole. we'll along with that. >> gregg: kirsten, what do you think is going to happen? >> i think lis is right. they have to look at this. everybody has been through so long and fiscally the people will say we're tired of this.

there is a middle ground and possibility where the case may go and necessity geosh immigration for life. >> gregg: assuming they will have second bite of apple. infamous power point presentation. she made mistakes, holding up the t-shirt she designed and said survivor on it. think we have videotape of that. which likely insulted some if not all of the jurors, that she was not an abuse survivor. then there was listen. >> my hair was past my waist and i donated it to a nonprofit which helps people that lost their hair. i've done that since i was arrested. if i'm allowed to live in prison i will donate my hair for the rest of my life.

>> gregg: save me because i have nice hair, maybe jettison this idea? >> you just need to get one juror. that is where we are right now. it's 8-4 split but one person strikes a chord and they say i don't want to put her to death. >> gregg: how about putting a witness like mom, save my daughter's life. >> put on witness. she was supposed to pout with it. how about, i'm sorry. i'm really truly sorry. she said in the tv interview, but she didn't say it to the jury. by the way, have you ever heard of a defendant fighting for her life saying, don't kill me because my hair a great. >> gregg: i knew something was up and her hair was washed and blown dry, i knew something was up. lis wiehl, kirsten wilson. thanks so much. >> heather: that does it for us. up close with 43, president

george bush hosted by dana perino. >> gregg: we'll see you at 4:00 p.m. eastern and i'll see couple hours at 6:00 p.m. right here on fox news channel. so now i can help make this a great block party. ♪ [ male announce ] advair is clinically proven to help significantly improve lung function. unlike most copd medications, advair contains both an anti-inflammatory and a long-acting bronchodilator working together to help improve your lung function all day. advair won't replace fast-acting inhalers for sudden symptoms and should not bused more than twice a day. people with copd taking advair may have a higher chance of pneumonia. advair may incrse your risk of osteoporosis some eye prlems. tell your doctor if you have a heart condition or high blood pressure before taking advair. ask your doctor if including advair could help improve your lung function.

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>> dana: hello, i'm dana perino and up close with 43, president george w. bush. i assign you in dallas home of the george w. bush presidential center. i had the pleasure to serve 7 years in the bush administration. mispeople think of president bush, straightforward, confident. uncle apologetic but i got to know him in a more personal light. at some point i'll show you. the importance of sticking to principles. >> mr. president. >> welcome back to the oval