all have a great memorial day weekend. reminders for a memorial day special, 5:00 p.m. eastern. right now, special report. ♪ ♪ ♪ >> gregg: i'm gregg jarrett. top of the news this hour, fallout in washington after the department of justice admits the attorney general eric holder's signature is, indeed, on documents behind the investigation of fox news reporter of james rosen. we are live at the nation's capital. >> arthel: and lone star state is dealing with dangerous flooding this hour. we'll bring you stories of those trapped in the floodwaters. >> gregg: millions of americans will be firing up their grills for memorial day gathering.

look at those. and barbecue. >> breaking news in the london terror attack. police say they have arrested three more suspects in connection with the brutal murder, the victim of 25-year-old lee rigby a veteran of the afghan war and father of a two-year-old boy. joining us on the phone with the latest is clare fallin with sky news. what can you tell us about the latest three arrests? >> these arrests in the last few hours. the men were in their 20s on suspicion of spi conspiracy to murder. one was arrested in london and one was arrested on street in a major police operation was

involved in all of this. police and armed officers were involved. two of men were with stununs. the men are being held and questioned on suspicion to conspiracy to murder. >> gregg: i understand several locations today there have been demonstrations and counter demonstrations. what can you tell us about that? >> it's really interesting the way the reactions went into directions. there have been quite large demonstrations that couple of areas, up in northeast of new england, newcastle, around 1,500 people from the far right group. a march that was already meant to be taken by the far right group but the events of the last week, the murder really

dominated there. that was part of the message they were trying to get across. also, in portsmith there were about hundred people out there protesting around one of the mosques there. four people were arrested. there has been a backlash. there has been a awful lot of stories on social media with people posting messages, but opposed to that we have the flip side of reaction. that is hundreds and hundreds of people that have been going to the barracks and placing flowers and cards there. really people have been trying to convey of message of just how proud they are of lee rigby and how thankful they are for the

fact he served his country fact and his charity, help for heroes when he was killed. they have been inundated with merchandise, their website went down because so pane people tried to show support that way. >> gregg: very quickly, what is the latest on the two men believed to have murdered 25-year-old lee rigby. are they still in hospital. what is their status? >> those two men are still in hospital. we are told they are in stable condition as you would expect. there is a speculation about the two men at the moment. police not commenting on one of those men was arrested two months ago. that is some speculation but police not confirming that a at the moment. >> gregg: thank you so much. appreciate it. >> arthel: in france now,

another soldier is attacked in a business district outside of paris. a military spokesman says the 23-year-old soldier was stabbed in the threat but that his life is not in danger. the soldier was on patrol with an anti-terrorism unit. they are searching for the attacker that quickly fled the scene. >> gregg: deadly violence breaking out in a volatile region of russia. a female homicide bomber blowing herself up injuring 18 people and including five police officers. the woman was widow of second husband was gunned down last year. >> arthel: speaking of the boston marathon and inspiring conclusion, thousands braved the final mile crossing the finish line to complete the race that was tragically interrupted in april.

about 3,000 runners and bombing victims taking part. some say it is a way to reclaim the race from the terrorists. >> meanwhile, difficult recovery efforts underway in moore, oklahoma this memorial day weekend after a monster tornado ripped through the town. monday's massive twister killed 24 people including many young can children and damaged homes. president obama will visit the area tomorrow to survey the damage and meet with survivors. dominic is live in moore with the latest. >> reporter: we had about thousand volunteers to come down to the center of moore to help people salvage what they can from their homes. just taking place right now, a friend as house at 1321 ridgeway drive. you probably can see the thank you sign but right above it for sale sign. these are not the first people

to tell us that in fact, as a result of the tornado it's perhaps time to move on from here. moving on as well the school, plaza towers where seven people were killed, the teachers speaking out about the very moment that the twister hit the school and destroyed it. one of the teachers was fifth grade teacher and described the moment when he saw it coming overhead. >> one of us was going to the restroom and get as close as we could. at that time the skylights were being sucked out. the roof was peeling back. >> reporter: that was very difficult for school staff to give. experts are saying that more than adults the kids are expected to triumph over this. take a listen.

>> probably more resilient than adults. they see more in life but they remember the fun they had with people. they can move on. >> reporter: tomorrow president obama is expected to spend four hours on the ground and offer his thanks to those involved in the recovery effort and volunteers that we see here on ridge way drive. we also understand that special prayer services at first baptist church. that will take place around 6:00 p.m. it's about 4,000 capacity inside the church and they are expecting it to fill out. >> arthel: condolences and blessings to them all. >> gregg: parts of country getting bad weather today this holiday weekend. powerful storms targeting much of the nation's midsection with

large hail, strong winds and possible tornadoes. take a look at this videotape out of san antonio, texas. several hours of torrential downpour causing flash flooding across the city. national weather service rain fell at a rate of two inches per hour in some areas. at least one person has been killed in the flooding and at least 130 people have been rescued including passengers on board a bus swept off the road. >> arthel: we are getting a look at the exact moment when a bridge collapsed in washington state. it was all caught on a surveillance camera at nearby car dealership. two cars plunging into water below as the bridge gave way. the cost of repairs expected to be about $15 million. one of the first steps is to remove remnants from the water. >> the contractors are going to figure out what we are going to do as far as removal of the

debris and building a new bridge. they can use cranes and bringing in a barge. they will have to look at different options and decide which one is going to be most effective and move us forward as rapidly as possible to get i-5 back open again. >> they have set up a task force to speed up the repair process. ♪ ♪ ♪ >> gregg: new controversy in the irs targeting of conservative political groups as the official at the center of the agency scandal is placed on paid leave after a refusing to step down. molly henneberg is live in washington with more. this is not going over well among some republicans getting paid for doing nothing now? >> reporter: they don't think taxpayers should be paying for

lois lerner's leave since she was the head of the irs commission that targeted groups for extra scrutiny. >> people don't get fired from jobs for doing wrong things. they have to go through a judicial process. in private sector, in when somebody does something wrong, give a severance to get her out of door, she ought to be out of door. >> molly: another issue is whether she should be called back to capitol hill to answer questions. after she pled the fifth, democrats say she has the constitutional right to do that. >> perhaps some of the information she has might have very well been helpful to us just learning all the facts. but again, in our country we have something called the constitutional. we have to own up to the constitution. >> molly: lerner says she hasn't

broken any laws or irs rules. she said that before she pled the fifth and refused to answer questions. >> gregg: lerner has said she learned about the targeting in the summer of 2011 and she claims to have put a stop to it. aren't there documents that may undermine that claim. >> reporter: a letter in fact released my american center for law and justice says this is still going on in 2012 and that lerner knew about it. the letter sent to one of the tea party clients is dated march 16th, 2012 and is signed by lerner. >> llerler got up and taking -- lois lerner says they stopped it. and irs officials said they stopped it but he found they didn't. it wasn't handled that. but lois lerner was endorsing it

>> they are planning to file a lawsuit against the irs on behalf of the tea party clients next week. >> gregg: molly, thank. >> arthel: we are also tracking new developments in another ongoing controversy enveloping the white house after a new doj report revealed that attorney general eric holder personally signed off on a warrant ordering the controversial seizure of fox news correspondent's private emails. elizabeth prann has more. >> now we know the justice department says it is true. attorney general eric holder's signature is on the documents behind the investigation of our own james rosen, something we couldn't confirm before. >> with regard to the potential prosecution, that is not something i've ever been involved in or heard of or would think would be a wise policy. in fact, my view is quite the opposite. >> reporter: roseb whereabouts

in federal buildings and parents' phones and fox phone lines were all monitored. white house is ordering a 45-day thorough review of the guidelines on the issue by the attorney general himself. >> i'm troubled by the possibility that leak investigations may chill the investigative journalism that holds government accountable. journalists should not be at legal risk 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 that he is satisfied with the results of the review of his own behavior. that doesn't make sense. >> reporter: while acknowledging his involvement the doj defends its zig. they say it was part of an ongoing investigation and the department followed all applicable laws, regulations and policies. >> gregg: thank you very much.

>> gregg: all right. coming up, louisiana governor bobby jindal is speaking out about the sea of controversy, white house is surrounded by what he says republicans should really be focusing on. >> arthel: plus how the family of a fallen navy seal was body was laid to rest hundreds of miles in home is getting a chance to honor his memory right in their own hometown. >> the love that i felt in this for them and their important mission for those who see it. hopefully for future generations. [ woman ] for david and kelly, a playful thought... how long before he goes to college? [ woman ] ...became a real question. are we ready to pay for college? [ woman ] so they came to see me and we talked about ways to manage their money and save for college that fit their situation.

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liberals put too much trust in big government, end quote. cal thomas is independent indicated columnist. richard bernstein and political consultant. good to with you on this memorial day saturday. cal, let me start with you. governor jind to focus on big government. do you think this is direction is the right way to go or is the governor himself misguided? >> think the governor is absolutely right, arthel. irs especially but all of government is too big, too costly, too taxing and what we've seen w the irs scandals is too intruce i. my view i wrote this past week we ought to get rid of irs and have a 17% flat tax with few deductions and you take care of that problem right away. constitution, it's like the mississippi river when it

overflows, it doesn't do any good to. it's too big and doing things that it shouldn't be doing. despite whatever administration is in power we get scandals. >> arthel: what is your take on his advice to his party? >> i think he is -- he is off regarding so-called scandals being the responsibility of president obama. there has not been a run by a bush appointee and let me ask this question. do we think it's a good thing for political organizations to be getting tax exempt status when they should be social welfare group? if that is not a good thing, it would be better if we had fewer cops on the beat or more? second, i think governor jindal is wrong because the faculty of government. deficits are half what president obama inherited from president bush. the size of government per

capita, percentage of the country is no bigger than it was 12 years ago. >> arthel: okay. finally. finally he said, republicans and he is doubling down on the policies that governor romney pursued. i think his prescription doesn't match up to the facts. >> arthel: go ahead. >> i think government is too big. nobody can understand the tax code. the problem is richard's first point, i might agree with it if the law and rules were applied equally. you got a lot of liberal preachers in this country that have political candidates and endorsing policies and programs of the obama administration who endorse candidates and never challenged on their tax exemptions. if you are going fair about it. you ought to go after both sides left and right. i think the whole tax code is a mess. you can't understand it. who can understand it?

>> arthel: let me jump in. we started this with governor jindal is giving advice to his party focusing on big government being the problem. richard, should the dems stay the course or does that party need new direction? >> bill clinton said that the era of big government is over. i think with barack obama he has faced up to an economic challenge in a way that has helped the u.s. economy, european governments would give their eye teeth to be in our space because we went to stimulus and they went to austerity. the government needs to be more effective and leaner but ask the people in oklahoma, ask the people where the bridge collapsed or jersey shore this weekend who wouldn't be there but for the role of government. there is definitely a role for government and big government because small government and private sector won't step up.

>> arthel: what do you say? >> you don't know that. there was major flood in coolidge administration. he refused any federal help and people helped each other and managed to rebuild themselves. we always hear this argument. individuals would do it if allowed to do it and government got out of the way zblfl let me jump in. when you talk about the disaster such as super storm sandy and oklahoma tornado and hurricane katrina, that is when the states do need the aid of government. i'll ask you. >> they haven't gotten the money. you go up and look some of the places, but there are still places. people are homeless. we have all these promises, but they are never delivered. we have enormous debt and deficit in this country. we can't continue to spend as we have been.

the reason the economy has come back as it has is because more deficit spending but it's the hard work of american people. >> arthel: richard, final word. what disappointed of having all this red tape if you can't get to the green? >> reason the economy is coming back is because the government has helped the private sector get back on its feet. and sure, tax revenues are up because private sector is thriving. private sector is engaging in job creation unlike what we've seen in quite a long time. but i don't think the answer to that is decimated government. we would be in shape the europeans now. >> i think it's got to be smaller and leaner but has to be effective as possible. >> arthel: all right. with a did you say. >> i agree. >> arthel: all right. let's end it there, guys.

good to see both of you. >> gregg: that is unusual, mark your calendar. >> arthel: we'll take it. >> gregg: jersey shore is making a comeback seven months after super storm sandy devastated the popular tourist destination. >> arthel: always special tribute to a fallen hero who was lead dog handler for navy seal team 6. >> that connection between him and his dog, very special connection and very important connection. weigh you down?

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♪ ♪ >> gregg: welcome back. summer tourist season is kicking

off on the jersey shore after months of hard recovery from super storm sandy. many vacation homes and busy are ready to welcome visitors. it appears that vacation rentals are way down this memorial day weekend. rick is live from point pleasant new jersey with more. >> reporter: we rode out hurricane sandy right on the beach here. this boardwalk and many businesses got pretty torn up. they have done a remarkable job of being open for this holiday weekend. not just here but every other community up and down the shore, now the challenge is getting people to come back. >> living room, dining room. the den. >> she hones owns a number of homes including this four-bedroom on the beach. >> this is captain's watch up here. >> usually she has no trouble renting for the summer but this year, things are different. >> i am surprise that had people

are not supporting us. people that have come years and years and they just disappeared. >> you don't have a boardwalk. i said come and look we do have a boardwalk. >> reporter: chris christie helped welcome the boardwalk a few days before memorial weekend but many visitors are reluctant to commit to summer vacations because of concerns from super storm sandy still linger. >> the overall demand hasn't been there. i think it's because of the bad publicity we've received. i think once people see these areas come down and see them they will want to come and rent. >> rentals are down 80%. the governor says he is not surprised the market is soft. >> remember what they saw in november, remember seeing the rollercoaster in the ocean and boardwalks ripped up and houses demolished. they say, okay we can't go this summer. >> reporter: the weather isn't

helping either. not much of a beach day. the locals are pretty confident that once the weather warms up crowds will come back. >> gregg: monday will be nice for memorial day. we'll wait see. >> heather: as americans pause this memorial day to honor the men and women who gave their lives serving our country an artist is unveiling a special tribute to a navy seal killed in afghanistan. >> gregg: iowa native, on john douangdara, he died in helicopter crash that claimed the lives of 29 other service members. his family recruited a sculpture to create a memorial to john and his dog. he is buried in arlington but the circuit court to your will be unveiled on mochb and much closer to his family in sioux

city, iowa. we are very pleased to have sculpture susan bhari. you are an incredible talent. what you have done is extraordinary. as we look at some of the pictures in the videotape of your latest sculpture. tell us more about it. what were you trying to convey? >> thanks for asking me. i really hope to capture the truth essence of the soul, physical qualities of john and bart. john's his hand on heart and left hand touching the dog. that is the hasn't of love and connection. bart out in front of them always watchful and ready as if he had just seen something out in the distance and he is ready to protect.

>> arthel: you have devoted your career to honoring america's veterans both human and canine. just speaking to you this brief moment, you have a special way about you. why is this so important to you as well? >> i mean when i think about the amazing sacrifices of the military and law enforcement, what they do for the rest of us, how really in return, they don't want to talk about themselves. that is pretty humbling and that inspiring. so the least i can do is try to capture some of the heroic deeds in my heart. >> gregg: tragically many others were killed, but i would imagine that you get to know in some ways the subject of your sculpture. tell us about john? >> i spoke to his family.

i've spoken with officers that he worked under and kennel master, everybody says the same thing. he was full of life. he brought all his soldiers up if they were down. he was excellent top of the line what he did. so was his dog. they were tough and brave. that really was a clear message i got. i hope to capture his sense of duty but also the smile and spirit as well. >> arthel: you've done it well. it's very impressive. there is some spirt i would say h this will be unveiled memorial day in a special ceremony at freedom park. i want to know what the real estate ree action of the family was when they first saw it? >> she felt she was looking at

john. there is nothing more i could ask for, truly. that was number one. number two, i hope for generations forward, they will honor heroes like john and bart and keep that message through to generations. we are looking forward and meeting the rest of the family. this will be amazing. it's in development but i saw the first dog that ran in the dog park. so i'm excited to go there on monday. >> gregg: susan bahary, very talented skilled sculpture, thank you for sharing with us. thanks so much for being with us. >> thank you so much. >> gregg: to find out more about great tribute or make a donation log on to sioux land freedom park.org.

>> heather: coming up, president obama orders a review of some of the justice department's policies. how this will impact attorney general eric holder. >> gregg: plus a very special gift for a military family, a big surprise during a scavenger hunt. that story is next. ♪

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♪ >> arthel: a heartwarming surprise as a naval officer is reunited with his two young daughters after a year and a half apart. girls reuniting with their daddies after completing a salve

enger hunted organized by their mother. take a look. [ applause ] >> you see heavier. >> yeah? oh. >> we love you daddy. we really missed you. >> they miss third dad so much. i. tell us what is going on in why your heart right now? >> so happy to see them. i'm glad it worked out as good as it did. >> be good to your daddy. >> arthel: he has served 12 years in the navy including two tours in iraq and says he plans to put in another eight more before returning to civilian life.

>> gregg: opponent is dealing with major scandals at the beginning of his second term. one of them, the justice department's obtaining of reporters' record and now a review of the department's policy and that could have eric holder effectively roovlg his own action. really? joining us is susan, great too see you. the attorney general will be investigating himself. it's clearly a glaring conflict of interest. why would the president set up such a conflict unless he thought, well, maybe this is good way to cover things up. what do you think? >> in some sense it's the worst way to, quote, cover things up you and i and everybody else with a brain is going to be sitting there, hold on a minute. who is the last person you trust

to investigate somebody, yourself. i just think it's sort of a glaring misstep. my prediction is it won't hold up. people will say, wait a second. eric holder approved the warrant in this case, all right, so you are asking eric holder to review the very process that he was support of and clearly thought was sufficient to do something the justice department never should have done. i mean, you know, naming james rosen as co-conspirator in a warrant and going after phone records and monitoring the work of an investigative journalist. most would say if the first amendment means something it has to mean that there is protection there. if you want to get to the bottom of what is wrong with the policy and how to come up with a new policy, you would think you wouldn't ask the person who

implemented the policy in the first place. >> gregg: and the warrant actually names james rosen as a potential co-conspirator in espionage. here is what holder told congress ten days ago. take a look. >> with regard to the potential prosecution of the press for the disclosure of material, that is not something i've ever been involved in or heard of or would be a wise policy. in fact my view is quite the opposite. >> gregg: not only did he he had heard of it and he was in investigation and in holder's words could have led the possible disclosure of materials. does it look like holder may have lied to congress? >> i don't think she lying to congress. i think the problem is, that the procedure that was in place said you are not supposed to be going after could journalists' records

unless the journalist himself or herself is suspected of criminal activity. you don't go after journalists for just being journalists. so in order to get warrants in the first instance, they had to put this stuff in there that said, now, rosen was a potential co-conspirator. the person or institution he less than truthful with was --, yeah, exactly. if you don't believe that james should have ever been prosecuted for news gathering activity, then you shouldn't go to a judge and hand him an application for a warrant that in effect says, he had probable cause to believe that this individual was engaged in, yes, criminal activity. >> gregg: it look like holder is lying to the judge or he was lying to congress. let me move forward. there are increasing calls for holder to be fired or resign and not just from the right, but the

left, as well. the huffington post, for example carried the headline, time to go. is the attorney general such a liability, sort of an albatross around the presidency that only his departure will relieve the pressure on the president and allow him perhaps to move forward on matters that he wants to push in his second term? >> not yet. i'm not making a judgment of whether that should be the case. i'm looking at polling numbers. if you no, gregging as hot and bothered that some of us that care about the first amendment and fox news and james rosen and the constitutional system, it doesn't seem to really be penetrating. you've got most americans paying much more attention to issues like the economy and jobs than they are to the scandals going on in washington. until and unless this penetrates

in a big way outside the beltway i think holder may be a liability with folks like us that may be a big liability with the media. i'm not sure he is liability to the president himself. >> gregg: susan, thanks so much. check out your latest column, entitled the president's next act. makes a great. we'll be right back. don't go away. when you have diabetes...

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