bill: fox news alert. we are back in berlin. president obama set to speak at the iconic brandenburg gate. but he has been dogged with questions on the nsa. martha: good morning, bill, good morning, everybody. president obama has gone back to the german city he first visited in 2008. the president looks a lot younger.

he got a rock star reception. look at that huge crowd. his critic said he spent time in that speech apologizing for the acts of the united states overseas and that didn't go over so well. he was denies the opportunity at that point to speak in front of the famed brandenburg gates saying it was reserved for heads of state only. bill: wendall goler live on scene in berlin. even the german chancellor seemed uneasy about that nsa question about data mining. what happened? >> reporter: chancellor merkel says there has to be a balance between collecting intelligence and protecting privacy. in a brief q & a session he said

the nsa is only tracking down specific leads on weapons and terrorist situations. >> this is not a situation where we are rifling through the ordinary e-mails of german citizens or american citizens or french citizens or anybody else. this is not a situation where we simply go into the internet and start searching any way that we want. >> reporter: on the decision to talk with the taliban mr. obama said it's necessary to goate a peace agreement. but hamid karzai is not happy about being bypassed on the talks. >> reporter: that's going to be a big story not only today, but tomorrow in the middle east. what do we expect from this address today from the

president? >> reporter: it's his first speech from the brandenburg gate from an invited crowd. it will be a fraction of the 200,000 people he spoke to in his first speech here. he said the goal is to november beyond the cold war and convince the rest of the world to support a nuclear-free iran in north korea. the brandenburg gate mr. john f. kennedy and ronald reagan made speeches during the cold war. martha: there is so much history for american presidents at

berlin's brandenburg gate. it was in 1963 that john f. kennedy delivered one of the most iconic lines 50 years ago almost to the day. >> all freemen wherever they may live are citizens of berlin, and therefore, as a free man, i take pride in the words [speaking german] martha: what a moment that was. listen to the crowds roaring after the were lingual had been erected by the soviets and president kennedy made that speech. it was an incredibly tense moment during that visit. then 25 years later ronald reagan was at the brandenburg gate when he delivered this historic line. watch this. >> mr. gorbachev, open this

gate. mr. gorbachev, tear down this wall. martha: it was not in the original comments designed for that day. the berlin wall would fall two years later. it still gives you chills watching those moments and so much history that has played out. steven hayes, a fox news contributor and wall street journal editor. so much has happened at that spot. the president will try to grab a moment in history when he speaks there today. >> he will. it's a challenge because of that history the last 50 years but also the reception he received in germany five years ago where

you had teeming crowd full of hope. people wanting this new american leader potentially back in july of 2008 to come in and usher in a new era of american leadership and i think what we have seen in the five years since is that those expectations have not been met. the expectations the president set himself in 2008 seem to have fallen short of those. if you look at the difficulties we have seen the ht have in this most recent g8 summit. the problems he's having with hah hide car die after arguing we needed to rout the terrorists in afghanistan, that we needed to win. you can see the challenges before him today. martha: it make it very clear the world has changed and not in the way president obama anticipated or hoped when he ran for president. now you have got the people in germany upset about this

surveillance program. the president said at the time he felt that the united states in some ways was too much of a super power and they needed to take their place among the powers of the world. now it is a very different story. he's going to talk about the nuclear cars malls. nuke -- the nuclear arsenals. >> he laid that out in a speech in prague. he talked about a nuclear-free world. if you look back at the way this president was set to make this announcement earlier there was much discussion he was going to make this kind of announcement about some additional agreement about reducing our nuclear arsenal during his state of the union. the announcement wasn't in that speech. there was speculation he didn't want to make that statement because of north korea's nuclear

activity and now he's making it now. republicans on capitol hill are questioning what do we get for this? what is the benefit for the united states. and what does it say about our position in the u.s.? aren't we arguing for weakness? bill: back at home. there are new questions about the irs as the agency is said to be getting ready to pay out $70 million in bonuses to union workers despite the automatic spending cuts. forcing governments to furlough workers including irs staffers. chuck grassley makes the argument against bonuses.

that's a letter right here. stuart varney with me, too. this is coming from one senator. what is he claiming? >> it's a jaw dropper. despite all the times you and i have spoken about if the intimidation of conservatives and failure to answer questions in congress and that lavish conference spending. senator grassley says he's speak to someone in budget procedures within the irs saying $70 million in bonuses will be paid. the irs did not deny the story that bonuses will be paid. bill: is this something that can be stopped or is it legally required by law? >> it's a contractual obligation with the union to pay these

bonuses. but does that contractual obligation stand up when faced with sequester cuts? bonuses are not suppose to be paid under sequester. it's picking around the edges of the legal liability here. but essentially senator grassley said we are going to pay these bonuses. he doesn't like it. bill: how will that go over? >> not well it's a jaw dropper it's a stunner. how many times have you and i sat here and talked about intimidation. lavish spend at conference, lois lerner still hasn't answered questions. she is on administrative paid leave. now bonuses. bill: that's a pretty good summer. stuart varney, thank you, sir. martha: we are just getting started this morning. a possible murder investigation. it takes the police to the home of a very popular new england patriots player.

the tight end for the team. why police sent hours at aaron hernandez' home. bill: the white house facing harsh criticism for spending $100 million for an african adventure. martha: the tea party out in force demanding that the irs be held accountable. they are asking, what's going on with this for their targeting of conservative groups and giving them extra scrutiny. these are pictures from 2010. people are saying where's the tea party? today they plan to make a comeback. >> i'm not interested in scoring political points. i want to preserve and protect the america i grew up in. the america people cross oceans and risk their lives to become a part of. and i'm terrified it is slipping away. [ male announcer ] running out of steam?

♪ now you can give yourself a kick in the rear! v8 v-fusion plus energy. natural energy from green tea plus fruits and veggies. need a little kick? ooh! could've had a v8. in the juice aisle.

martha: michael hastings has died in a car crash. he was best known for that's

story that appeared in the "rolling stone" and changed the the course of stanley mcchrystal's future. he made candid criticisms of the obama administration that led to mcchrystal's resignation. he was living in los angeles. bill: the first family's trip to africa drawing a lot of criticism for a high price tag estimated at $60 million to $100 million at a time washington is undergoing steep budget cuts and belt tightening. how you doing, sir? good morning to you. you have issues with this trip or are you okay with it considering the first family needs its protection here at

home and certainly overseas. >> they do. the president isn't the one who decides how much is to be spent on that protection but he is the one who decide where they are going to go. in the old bush white house we paid attention to the destinations in terms of the security structures that they already had in place because the president george herbert walker bush was very conscious of the fact this was the people's money. i think president obama is starting to have some feedback from the public on the amount of money that has to be spent because of the sites he selects. bill: when you were in the white house you gave strong considerings to the places you went. >> we went places where the secret service was comfortable so they didn't have to spend

extra fund. bill: would senegal or south africa apply there? >> i don't have any details on what's currently in place. but you do take into account what is there. the secret service comes back to usually the chief of staff with a report on what they think can and can't be done country by country. you sit down with them and you go back to the president and say this is the plus and minus of going here versus going there. bill: 14 limos, sheets of bulletproof glass to cover the windows in the hotels where the first family will stay. >> the president is in the second term and frankly i get the feeling he doesn't care whether it's smart or not. bill really? we are told from the white house it's goodwill. there will be a lot of goodwill that will come from a trip like this. is that what you see?

>> they have their own strategy and agenda. i'm not privy to the detail. they might have a grand scenario. but the backlash that's already coming about on the basis of the cost of this trip, i wonder if they examined the pluses and minuses of this trip appropriately. bill: he's saying you can have 150 white house tours instead. >> the president's decision to close the white house tours and put the burden on sequester is coming back to bite him. i'm sure representative holding's view will be a popular view. the president is spending so much on this and keeping the kids who come to washington in the spring and summer from seeing the white house. >> it was his idea.

bill: he didn't want to go through with it. >> the directives were make it as painful as possible. i think people understand that was the white house's intention. you can't hide reality with words. martha: the white house says surveillance programs did help stop brazen terrorist attacks, including one on the new york stock exchange. bill: plus a monkey on the loose. [♪]

the blisters were oozing, and painful to touch. i woke up to a blistering on my shoulder. i spent 23 years as a deputy united states marshal. we'd get up early and, and stay up late. there was a lot of running, a lot of fighting. i've been pretty well banged up but the worst pain i've experienced was when i had shingles. i was going through some extremely difficult training, and i couldn't do it. when we were going through pursuit driving, i couldn't put a seat belt on because the pain that would have been caused by the seat belt rubbing against the shingles would have been excruciating. when i went to the clinic, the nurse told me that it was the result of having had chickenpox. i had never heard of shingles prior to that point and i had always been relatively healthy. the rash, the itching, the burning that i experienced on the side of my neck and my shoulder, i wouldn't wish it on my worst enemy.

martha: federal agents are set to begin digging in suburban detroit. they are looking for ex-mobster boss jimmy hoffa. a tip from a reputed mafia captain back in the day. the u.s. senate is set to get back to work on a comprehensive reform bill. a controversy involves the state department diplomatic security service. the question whether two top officials may have lied when they were asked about a lawsuit against former secretary of state hillary clinton. james rosen is live in our d.c. bureau on this. why are we just finding out about this now? if. >> reporter: these disclosures

arise out of a lawsuit in texas. a veteran agent is suing the state department over claims he was discriminated against by his superiors after he refused overseas work assignments because of an ill daughter. two top d.s. officials sat for videotaped depositions in which they were asked if they knew of criticism by other agencies to the effect d.s. failed to follow procedures or if they knew of pending investigation into d.s. >> none that come to my mind right now. >> i'm not aware of any. >> reporter: two months earlier documentary evidence shows both of these officials were presented with a draft report alleging d.s.'s over investigations have been compromised by higher ups at

state. bill: the obama administration and its critics are taking divergent views on what it means. >> reporter: state department officials cite the higby trial in texas while critics worry about the impact of such disclosures in future court cases. >> it undercuts the credibility of the entire agency. >> if there is an allegation of misconduct of which i'm not aware of for those two individuals we would take a look at that as we would in any case. but again, bringing up names and litigating people's reputations in the press is something that has been concerning to us to date. >> reporter: fox news learned a whistleblower from the state department's office was debriefed at length this week by investigators from the gop

controlled house oversight committee. bill: 25 minute past. this story broke yesterday. we don't know a lot about it. an nfl star has been questioned about the murder of his friend. police don't call him a suspect. but they have gone into his home and we'll tell you why. martha: the tea party, are they about to make a comeback? that's the big question because they are fighting mad about the irs and they want to know why nobody has been fired. has this helped to jump-start the movement? great stuff coming up on that. >> past or present employees or a member of their family who plans to run for office in the future. a list ... the great outdoors, and a great deal.

grrrr ahhh let's leave the deals to hotels.com. perfect! yep, and no angry bears. up to 30% off. only at hotels.com. hoo-hoo...hoo-hoo. hoo-hoo hoo. sir... i'll get it together i promise... heeheehee.

jimmy: ronny, how happy are folks who save hundreds of dollars switching to geico? ronny:i'd say happier than the pillsbury doughboy on his way to a baking convention. get happy. get geico. fifteen minutes could save you fifteen percent or more.

bill: it's 90 degree in berlin and the president of the united states is before the microphone and his speech has begun. the brandenburg gate. the site of so much history. >> mayor, distinguished guests, and especially the people of berlin and germany, thank you for this extraordinarily warm welcome. in fact it's so warm and i feel so good that i'm actually going to take off my jacket and anybody else who wants to, feel free to.

we can be a little more informal among friend. friends. as your chancellor mentions, five years ago i had the privilege to address the city as a senator. today i'm proud to return as president of the united states. i bring with me the enduring friendship of the american people as well as my wife michelle and maria and sasha. you may notice that they are not here. the last thing they want to do is to listen to another speech from me. so they are out experiencing the beauty and the history of berl

berlin. and this history speaks to us today here for thousands of years the people of this land have journeyed from tribe to principality to nation state to reformation and enlightenment. renowned as the land of poet.and thinkers. among them he manual kahn who taught us freedom is the birthright of man and it belongs to him by force of his humanity. here for two centuries this gate stood thomas the world around it convulses through the rise and fall of empires, the revolutions and republics. arts and music and science that reflected the height of human

endeavor and also war and carnage that exposed the depths of man's cruelty to man. it was here that berliners caused out an island of democracy against the greatest of odds. it has been mengtsd they were supported by an airlift of hope and we are so honored to be joined by colonel halverson. 90 years old. we could not be prouder of him. i hope i look that good when i'm 92. during that time, the marshall plan neernt atlantic alliance protected our people. those in the neighborhoods and nation to the east drew strength

from the knowledge that freedom was possible here in berlin. that the waves of crackdowns and suppressions may some day be overcome. today, 60 years after he rose up against the oppression, we remember the east german zeros of june 17 when the wall finally came down. it was their dreams that were fulfilled. their strength and their passion. their enduring example remind us for all the power of militaries. for all the authority of government, it is citizens who choose whether to be defined by a wall or whether to tear it down. [applause] we are now surround by the

symbols of a germany reborn. a rebuilt, the american embassy back at its historic home. and this square itself, once a desolate no man's land is now open to all. so while i'm not the first american president to come to this gate, i'm proud to stand on its eastern side to pay tribute to the past. [applause] for throughout all this history, the fate of this city came down to a simple question ... will we live free or in chains. under governments that uphold or universal rights or a regime that suppress them.

in open societies the respect of sanctity of the individual and our free will, or in closed societies that suffocate the soul. as free peoples we stated our convictions long ago. as americans we believe that all men are created equal with a right to life and liberty and pursuit of happiness. and as germans you declared in your basic laws that the dignity of man is inviolatable. around the world nations pledged themselves to a universal declaration of human rights which recognizes the inherent dignity and rights of members of all our human family. this is what was at stake here in berlin. all those years.

and because courageous crowds climbed atop that wall. because corrupt dictatorships gave way to new democracies. because millions across this continent breathe the fresh air of freedom we can say here in berlin, here in europe. our values won. openness won and freedom won here. [applause] two decade after that triumph we must acknowledge that there can at times be a compl a -- can bea complacency among our western democracies. people come here to remember history, not to make it. we face no concrete walls, no barbed wire.

there are no tanks poised across the border. there are no visits to fallout shelters. so sometimes there can be a sense that the great challenges have somehow passed. that brings with it a temptation to turn inward, to think our own pursuits and not the sweep of history. to believe that we settled history's accounts. that we can simply enjoy the fruits won by our forbearers. i come here today to berlin to say complacency is not the character of great nations. today's threats are not as stark as they were a half century ago. but the struggle for freedom and security and human dignity, that struggle goes on. and i come here to this city of hope because the test of our

time demand the same fighting spirit that define berlin a half century ago. chancellor merkel mentioned we mark the anniversary of john f. kennedy's stirring speech of freedom embodied in the people of this great city. this pledge of solidarity. [speaking german] >> but that's not all he said that day. let's remember the challenge he issued to the crowd before him. let me ask you he said to those berliners. let me ask you to lift your eyes beyond the dangers of today. and beyond the freedom of merely city. look, he said to the day of peace with justice.

beyond yourselves, and ourselves to all mankind. president kennedy was taken from us less than 6 months after he spoke those words. like so many who died in those decades of divisions he did not live to see berlin united and free. instead he lives forever as a young man in our memory. but his words are timeless because they call on us to care more about more than our ownselfs, about our own country. they demand that we embrace the common humanity. if we lift our eyes as president kennedy called on us to do we'll recognize that our work is not yet done. we are not only citizens of

america or germany, we are also citizens of the world and our fate and fortunes are links like never before. we may no longer live in fear of global annihilation. but so long as nuclear weapons exist we are not truly safe. [applause] we may strike blows against terrorist networks but if we ignore the instability of extremism our own freedom will be in danger. we may enjoy a standard of living the envy of the world. but so long as hundreds of millions endure the agony of an empty stomach or anguish of unemployment, we are not truly prosperous.

>> none of these challenges can be met until we see ourselves as something bigger than our own experience. our lifts is the foundation of global security. our trade and commerce is the engine of our global economy. our values call upon us to care about the lives of people we'll never meet. when europe and america lead with our hopes instead our fears, we do things no other nations can do. no other nations will do. so we have to lift up our eyes today and consider the day of peace with justice that our generation wants for this world. bill: where else do you speak about freedom than at the intersection of come anything and democracy in the heart of berlin. the headline will be this. the president calling for a further reduction of nuclear

arms and that is the intent of the speech at the brandenburg gate. martha has more. martha: today back in washington tea partyers are taking on the irs in d.c. they are not backing down. this is video in 2010. remember those huge tea party turnouts? we were promised action on the irs. they want to know why lois lerner is still on paid leave. bill: waits an accident or something more sinister. what caused this plane to go down several years ago.

martha: the tea party patriots plan to take on capitol hill. they protesting the lack of action at the irs in light of this promise. >> if irs personnel engaged on the kind of practices reported on and intentionally targeting conservative groups then that's outrageous and there is no place for it. and they have to be held fully accountable. martha: it may be outrageous and they need to be held accountable but so far lois lerner is enjoying what we would all enjoy which is a paid summer off. sow it didn't hurt too much, at least at this point.

and alan colmes, host of the talks radio. the president promised there would be accountability on this and we all know there was discrimination because only one side was targeted in this effort. so who got fired, who got laid off. >> reporter: we found out yesterday when elijah cummings released the entire transcript of what happened. before that elijah cherry picked what was going to be released. we found out it was john schaeffer decided to look into them. the optics may not look good. about it wasn't done by the white house or for ideological reasons. it was a political group trying to get tax exempt status. martha: tony, does that change

the whole ball of wax? >> absolutely not. the irs in washington was involved. holly paz admitted to that in her left money to the overtight committee. we know it goes from washington to the cincinnati field office. they tried to say it was localized. 75% of americans want an investigation and lois lerner is still there pleading the fifth and getting paid. there is bipartisan agreement that lois lerner has lost the faith and confidence of this government and of the people. even senator carl levin, a democrat. you have john mccain, all three have said she has to go. martha: you look at what happened here and all these groups and the questions they were asked and the mud they were dragged through. it doesn't matter one of the people involved happens to consider himself a conservative. the program was in full force.

>> what matters is it was not done to target ideological opponents. martha: why weren't groups on the other side treated the same way. >> 40% were conservative groups buff it wasn't on conservative groups targeted. nobody was targeted for ideological reasons. that's what's key here. that's what's important to understand. >> the buzz words were tea party, patriot. groups of occupy targeted? no. you know something much deeper happened. this didn't happen by accident. martha: we have got to leave there it but we'll pick this up. alan and tony good to see you both. bill: will immigration reform lower the deficit? that what's two new reports claim. police question an nfl star in a murder case.

martha: firefighters are racing to save homes from a wildfire burning near yosemite national park. the fire is 40% contained according to our reports and half of the residents forced from their homes are now returning. but those living in the fire zone are very concerned for what they will find when they get back. >> the only thing i'm worried about today is my mom and dad's picture. you can't replace that stuff. you know? martha: more than 2,000 firefighters are battling this wildfire. we wish them the best. bill: new england patriot's

tight end aaron hernandez. police found a body of an associate of his a mile from his home. >> reporter: this is quite a surprise. aaron hernandez is a well-known pat's player. the patriot's tight end was questioned by authorities who have yet to release much information about what's going on. but the quiet massachusetts neighborhood where the investigation is unfolding was crawling with dozen of massachusetts state police. it was a teenaged jogger that discovered a body monday afternoon in an industrial park less than a mile away from the nfl player's home. investigators are seeking information and arrived in force at that $1.3 million property

owned by hernandez. a nearby business resident said a teenaged jogger ran into his business and was telling him about the discovery of the body. our fox affiliate has been look into this as well. bill: thank you, r. martha: at the denver airport, passenger were scrambling for safety. bill: the nsa says 50 plots prevented by the surveillance efforts and that edward snowden has done irreversible damage to our nation.

>> republicans have passed a bill that many g.o.p. lawmakers consider to be a milestone in the pro-life movement. democrats have called it a direct challenge to rowe v. wade. i'm martha maccallum. bill: i'm bill hemmer. the bill would bana boringse ban ban abortions after 20 weeks. most laws allow it until 24 weeks. >> this is based on undisputed scientific evidence which tells us that unborn children at 20 weeks and older can feel pain. martha: of course at this point all of this is symbolic. the democrat controlled senate will not even consider this legislation. molly henneberg joins us live from washington. this is a bit of a different

approach to limiting abortion. what can you tell us about this molly. >> martha, many states as you were saying base abortion laws on when the baby is viable, when it has a good chance of surviving with medical intervention outside of the mother generally thought to be around 24 weeks. this republican-backed legislation looks instead at when supporters say the baby in the womb has enough developed pain receptors to feel the pain of an abortion. here is more. >> regardless of your personal beliefs i would hope that stopping atrocities against little babies is something that we can all agree to put an end to. this legislation would do exactly that. >> reporter: the legislation would bana boringses late ban ban abortions no later than 20 weeks after abortion. kermit gosnell was convicted of murdering babies who survived botched abortions. this passed along party lanes

228 to 196. martha: in the short term it looks like it doesn't go anywhere. what about the ramification -gs for the long term? >> reporter: some republicans and pro-life advocates believe this could restart the abortion debate in the u.s. based on where medical science has come since rowe v. wade. in the short term it's not likely to go anywhere. the democratically controlled senate is unlikely to take any action on it and the president opposes the measure and likely would veto it if it were to i can ma it this desk. they say it restricts it too much. >> it's short sighted at best and cruel at worst. many things can go wrong in pregnancy, and this would force a doctor to wait until a woman's condition is life threatening. >> house minority leader pelosi says this bill is another republican attempt to endanger

women. martha: thank you very much. bill: key history, key facts about rowe versus wade a 1973 supreme court decision found that a woman's right to choose is not absolute. procedures only allowed in the second and third trimesters. prior to that ruling 48 states had law that strictly regulated access to abortion. four minutes past the hour now. immigration reform could add up to 8 million people in the united states and actually save the country money. how in the world does that work? the congressional budget office finished scoring the measure. they say the overhaul would cut billions from the federal deficit and my next guest doesn't disagree with that. the former director of the congressional budget office now president of the american action forum. doug, how are you? >> good morning, bill. bill: you did a study yourself, this is what the cpo says,

197 billion saved after ten years, 700 billion saved over the next -- the ten years which i would assume is what the ten years after that? three and a half times in the second decade? those are big, big claims. >> yeah, at the foundation is the very simple economic fact that increased immigration would make us have a larger labor force, they'd have more skills and we'd see a bigger economy. as conservatives have argued for a long, longtime if you have protkproe proprogrowth policies you will generate more revenue. bill: this is what your study did too. cut the deficit by 2.7 trillion over ten years. that's what i believe, raise the gdp by almost 1%. raise per capita income by $1,700. that is a tall wish list. defend that. >> that is the results we got from a very big immigration reform. the cbo got smaller numbers but it's a smaller reform. there will be about 10 million new legal immigrants into the

u.s. over the next ten years, that is their estimate. importantly, bill, about half of those will be here for employment or merit-based reasons. they are chosen for their skills and their contribution to the economy. the result is about a thousand dollars per person in the u.s. under the cbo estimates. these are still significant improvements in an economy that's been starved for jobs for years and really needs a jump start. bill: label me skeptical. they will he be on the rolls which means you can tax them and correct more money, is that how the deficit is reduced? >> absolutely. we'd have about a trillion and a half in new revenues during the second ten years of this i will about. 460billions in new revenues over the first ten years in the cbo estimate. that is without any tax increases, a tribute to better economic performance. bill: you this week along with 110 conservative economists you all put together this study, you put together a letter and you signed it. >> yes, i did.

bill: did you flip the switch? all of a sudden you became a supporter of immigration reform? >> for a longtime the people on that letter and others have supported progrowth policies for the united states, that includes arguments for useful imports of capital, useful imports of labor and goods and services. this is in that tradition. economists of a conservative stripe believe in the power of markets and people pursuing their dreams will generate better economic outcomes and the immigration reform that embeds that is one that is very easy to support. bill: we will see if it happens. we were told it would happen by the end of the year. but there is a ways to go on that. doug, thank you, doug holtz, former director of the cbo on that. martha: there is a lot of reaction to this cbo report in washington. senator tom coal burn not too complimentary about it. he's asking when is the last time you saw a report be

accurate about anything, referring to the cbo. he says they are if plus or minus 50%. bill: a big margin. martha: what you put into the cbo projection is what you get out sometimes. we will talk to senator coburn and see what he thinks about that when he joins us later this hour. bill: 2.7 trillion over a tech aid, that' decade, 2.7 trillion. martha: we've seat it before with deficit reduction. the plan you put in is what the cbo has, the numbers they have to work with and sometimes what they come up with suits a particular agenda but not the reality. we will talk to tom coburn about that. bill: budget cuts hitting america's wounded warriors b walter reed plans to furlough thousands of civilian workers this summer. it's the first stop for every soldier wounded in overseas combat. quality of care for veterans will not be effected.

this is part of the spending cuts known as sequester. martha: one democrat has called the healthcare law a train wreck. a new government report warns that it could be a very bumpy ride once all of this kicks 4 in. new details on that. bill: was the crash of a flight really an accident? some filmmakers say they have proof it was something else entirely. we will tell you what they claim today. martha: the nsa chief telling congress that the recent leaks have done irreputable damage to our national security. are we less safe at home now? michael chertoff joins us next. >> we are not going to know for many months whether these leaks in fact have caused us to lose these capabilities, but if they do have that effect, there is no doubt that they will cause our national security to be effected.

bill: the director of the fbi is

testifying before the senate judiciary committee, robert mueller, that is not robert mueller that is senator grassley out of iowa. he will likely be asked about the nsa, an update on edward snowden, the boston bombing, all of that it could be on the docket as we watch and wait for that. you can watch it streaming live on foxnews.com. martha: the nsa director now defending the effectiveness of his agency's surveillance program, but general keith alexander is issuing one key warning about the leaking of this classified information by snowden. watch some of this. >> how damaging is this to the national security of the american people that this trust was violated? >> i think it was irreversible and significant damage to this nation. >> has this helped america's enemies? >> i believe it has, and i believe it will hurt us and our allies. >> interesting exchange there. we are glad to be joined this morning by michael chertoff of

course who is former homeland security secretary, former judge and the chairman and co-founder of the chertoff group. great to have you here this morning, sir, welcome. >> good to be on, martha. martha: do you believe that this leak has made us less safe in this country? >> i think it has, and i think that's true for a couple of reasons. first, the more detail that you put out about these programs the more you give terrorists and other adversaries a road map to mine mice thei minimize our exposure to terrorism. we saw testimony yesterday that described 50 instances in which global lee plots have been disrupted through these kinds of collection activities. the second thing it does is it undermines confidence on the part of our allies about our ability to keep important matters secret, and that also hurts our cooperation globally.

martha: that is clearly an issue. one of the larger sort of venues here when you look at this discussion is whether or not they were reaching a bit yesterday to validate the program. you hear the critics say look the 50 instances that you mentioned, 40 of those were more minor incidents that happened overseas. there are also suggestions that a number of these that were uncovered were based on fbi sting operations, in other words, that there were so many other factors that allowed us to get to where we got on this that the surveillance program really was not the key thing. >> well, you know, that is one of the challenges dealing with any effort after the fact to figure out what caused us to be able to unravel a plot. and president obama made the point in his interview recently that you can never say that any particular technique was critical, it's all part of a mosaic, part of a number of things that you hope will give you warning. the problem is as you start to

abandon those techniques, you begin to increase the risk of an attack and minimize the possibility of interest september thanking it. unless you want to play games with the safety of the american people and try to make it as much of a cliffhanger as possible you never want to sacrifice a program that has proven to give valuable intelligence information. martha: i understand that. lookr example what happened in boston or fort hood, right and they say look there was communication going on, overseas communication going on in these cases, these people were on the internet, youtube, cellphones. it seems in those cases that they were tailor-made to have been picked up by this program and people want to know, is that not a good test case? should we not also look at the failures and say, why did we fail in this case? is the whole thing too broad, perhaps? >> well take the boston case, actually that is an illustration of some of the limitations that we put on our program. martha: how so? >> you had two american

citizens, one was a legal permanent resident and as was made clear yesterday that is precisely the category of people do can't be routinely monitored and surveilled. the boston case is an illustration that we haven't done certain things we might do because of legal restrictions. i'll tell you from my own experience, the kind of data you can pick up from this kind of program is enormously valuable in disrupting plots. we went back after 9/11 when i was secretary, we looked at whether this kind of data would have allowed us to identify the 9/11 hijackers ahead of the attacks on september 11th, and the answer is it would have connected up about 15 much the 19 hijackers. now it was not just phone data it was travel data as well. but it shows you the power of this kind of information in preventing plots. martha: does it concern you when you look at the efficiency of the system, you know, i think you could have gone to a judge to get back to tamerlan

tsarnaev, and say look the russians have warned us about this guy, we need more latitude in this case. i can't imagine a judge that would turn that down under all those circumstances. you look at the 9/11 examples that you point to, that kind of focus on the people, the fisa court has been very flexible when asked to have a little more latitude with these cases. >> sure, i mean i think once you've identified a red flag or something that you need to look at it is possible to get permission from the court, absolutely. i think the challenge with the tamerlan tsarnaev case is why it is that the information from russia did not trigger a more intensive investigation. but that is separate from this program. this program is not designed to be the end of investigation, what is designed is it allows you to look at a broad range of data and identify out of that brad range a couple much needles in the haystack that warrant a closer look, but then you have to go to the court and get permission to get that closer

look. martha: michael chertoff thank you very much. great to have you here, sir. >> good to be here. bill: 19 minutes past now. it is being called an alarming story of modern day slavery. three people accused of forcing a mother and her daughter into serve servitude. how the victims made a brave mistake. martha: what you don't want to see, scrambling for safety before you get on your flight, listen to this. >> i didn't notice the funnel cloud at first, i just saw the big white streak, and i was like, oh, that is weird. i took a picture and that's when i realized what i was taking a picture of and i was like, oh, my god.

>> the nation nat weather service confirmed that a tornado touched down at denver international airport

yesterday. the twister was hovering right over the runways. look at this scene. that happened yesterday afternoon. thousands of people had to go inside and take some refuge and shelter in there. the wind gusts were well over 90 miles an hour according to reports on the ground. fortunately, though, it kind of tapered out quickly. no injuries and no damage, but man what a picture. denver international airport. bill: disturbing story here now described as modern day slavery in america. a lawyer for one of the suspects says that his client was just giving a mentally impaired woman and her young daughter a place to stay. mike tobin is on the story live in chicago. what are the allegations here, mike? >> reporter: you know, bill this is another case out of ohio that if the allegations are accurate show an absolute disregard for humanity. the u.s. attorney's office out of northern ohio said three people in the suburb of cleveland forced a mentally disabled mother and her daughter to be held as prisoner in squall

lore conditions, beat them and threatened to harm them with a vast number of animals. they forced domestic chores and they took the woman's disability benefits as well as her medication. >> they were frequently denied meals, access to bathroom visits. they were finished punished for toiletry accidents and threatened not only with weapons but also with vicious animals to include pit bulls and pythons. >> the criminal complaint says the mother had the cognitive ability of a 13-year-old, following a brain injure. the mother and daughter were forced to sleep on a concrete floor or in a room where the reptiles roamed without cages. they were denied food except for canned food but fresh food was given to the animals. under threat of greater violence the mother was forced to beat her daughter and that was recorded on video. the video was used to threaten her if she were to ever go to the police. bill: all sick details here.

how did this come to an end? >> reporter: it came to the end when the mother stole a candy bar, that appears to be intentional, with the intention of getting caught. when she was held by police the story came out, everything came unraveled. it should be noted a that an attorney for one of the suspects says the allegations are not accurate, all the suspects did was put a roof over this poor woman's head. they say if investigators believed that there would be no charges at this point. bill: that story out of ashland, ohio, southwest of cleveland. martha: it was one of the deadliest plane crashes in u.s. history, who can forget it, and now the conspiracy theories about what happened to twa flight 800 are getting a second look today as a filmmaker says he has evidence that proves that that crash was no accident. plus this -- >> legalization means that millions come out of the shadow, pay every tax and don't get a single government benefit for

the first ten years. that's pretty good, it means the tax revenues will increase and benefit outlays will not be there at all. bill: that new cbo report may come as good news for some trying to pass immigration reform. critics say not so fast, senator tom coburn here to explain why the analysis deserves a hard second look. this man is about to be the millionth customer. would you mind if i go ahead of you? instead we had someone go ahead of him and win fiy thousand dollars. congratulations you are our one millionth customer. nobody likes to miss out. that's why ally treats all their customers the same. whether you're the first or the millionth. if your bank doesn't think you're special anymore, you need an ally. ally bank. your money needs an ally. grrrrreat outdoors, and a great deal. ahhh let's leave the deals to hotels.com. perfect!

yep, and no angry bears. up to 30% off. only at hotels.com. [ engine revs ] ♪ [ male announcer ] just when you thought you had experienced performance, a new ride comes along and changes everything. ♪ the 2013 lexus gs, with a dynamically tuned suspension and adjustable drive modes. because the ultimate expression of power is control. this is the pursuit of perfection. because the ultimate expression of power is control. [ male announcer ] this could be the summer she jumps into the deep end...

...the summer you get him on that roller coaster... the summer you finally take that long weekend. it could also be the summer you get your identity stolen. last year, 12.6 million identities were stolen. that's why you need the proactive protection of lifelock. if you're planning a summer vacation, you'd better include plans to protect your identity. because while you're busy having fun and not thinking about identity theft, you become an easy target. [ male announcer ] every time you buy a plane ticket, pay for dinner, or pull out your credit card for a souvenir, you give thieves a chance to steal yr identity. and identity theft is a much bigger problem than someone just making fraudulent chaes on your credit card. identity theft could cost you the money in your bank accounts, your ability to get credit, even the equity in your home. you have to protect yourself, and lifelock offers the most comprehensive identity theft protection available anywhere. lifelock's member notification service

is on the job 24/7. when you receive a text, e-mail, or phone alert from their "not me" system, you can respond instantly if you suspect fraud to help stop identity theft before the damage is done. last summer lifelock protected over 2 million people, and this year they can do it for you. ♪ or go online and get 60 days of lifelock protection risk free. that's two full months of proactive protection to help keep your identity safe this summer. ♪ or go online to lifelock.com/planahead. use promo code planahead, and get 60 days of lifelock protection risk free. enjoy your vacation, knowing lifelock never takes one. martha: a new twist today to the

conspiracy in the crash of twa800. it blew up minutes after take off and fell into the atlantic killing everybody on board. a huge tragedy. a new documentary challenges the finding of the official investigation on this. and suggests that when they put it back together it really was not an accident at all. rick leventhal joins us now with more on this story. >> reporter: good morning, the filmmaker says the evidence proves it was an external explosion, a missile strike and are filing a bet with the national transportation safety board to reopen the investigation. hr-fpl immediately after twa flight 800 went down there was speculation of a missile strike. dozens of witnesses saw a smoke trail ascending into the sky before the 747 erupted in a fireball. even the fbi says it was the first working theory but ultimately found it wasn't a criminal act but an accident. the documentary says the four-year investigation was flawed and driven by agenda with former ntsb and other

investigators claiming the crash was not triggered by a faulty wire igniting fumes in a center fuel tank alleging in essence a massive cover up. >> this documentary presents the facts that disproves the official theory and proves beyond any reasonable doubt that a detonation, not a fuel air explosion, a detonation caused this crash. hard evidence proving that. >> the ntsd says it hasn't received the filmmaker's petition but will review it. it airs on the epics channel on july 17th, the 17th anniversary of the crash. martha: the fbi is disputing this. they are saying that they were correct in the first assessment, right? >> reporter: absolutely i spoke exclusively with the man who ran the office of the fbi when it crashed. he was the face of the investigation. of he calls the documentary's charges per possible ta rust. he says the agency exhaustively kpaeupd the possibility of a missile strike, brought in explosives and metal experts, did thousands of tests and interviews and said the fbi's only agenda was to find the

truth. >> we had a full-court press for months and months and months on that theory, but the reality was there is no evidence of a missile hitting the plane, either outside the plane, inside the plane, penetrating the plane, concussion from a missile there is no evidence of it. >> reporter: he says the suggestion of a cover up is nonsensical. martha: very interesting, rick, thank you very much. bill: you all remember the airport hang ar. new concerns about the rollout of obama care. a government report saying there is no guarantee the administration will make its own deadline to put a crucial part of the law into place. grace marie turner is president of the gaylen institute and co0 author of why obama care is wrong for america. i take it you're not a fan. >> good morning, bill. we knew from the beginning that this was an enormously complex undertaking and every day we see new evidence of that h. bill: i want to get into the

goao reports part of the reason we brought you in. remember when max bal baucus called this a train wreck. the government has spent almost $400 million as of march of this year to set up exchanges. 34 states involved in that, 7 million americans expected to sign up this year i believe it is. is that right? that's right, starting in october. bill: the report says they went out and looked at some of the exchanges, and they found that the exchanges are nowhere near where they need to be. what did they find? >> well, what they found is that this is the -- let's just start with a data hub. they have to gather information from the department of homeland security, cms, the veteran's administration, even the peace corps to find out what coverage people are already eligible for, to find out if they are eligible nor subsidies in the obama care exchanges. that is a massive undertaking,

to gather all that information, get it into one hub, and then be able to determine on an individual basis if somebody is eligible for subsidies. this is hugely consequential because some of the subsidies will be 10, $12,000 a year nor a family. they've got to get it right. just gathering the information is going to be hugely challenging, and that is one of the things they talk about. bill: they are behind the eight ball on that, the states they studied, they were fans of the law, right? they were committed to it, do i have that right? >> yeah, they looked at all othe particularly focused on are the states that say we want to set up the exchange, we are going to try to do this and even there they are finding that they are very likely not going to be ready. they lookedwadia number of different markers, the different complex things that have to be done certifying the plans, making sure that they provide the insurance that people are expecting to get through obama

care, and they are finding that because of the federal government had to set up so many of them, that they just are finding that they are not -- they are not meeting deadlines. bill: if that's the case it will take more money to get the job done. >> it's going to take more money? bill: well two-thirds of the states to get the exchanges set up. this is a job i don't think washington was prepared to do. you raise an interesting proposition. you believe there is a possibility the president may call the speaker of the house and say put this on hold for now? do you believe that? >> i think there is a real possibility. when max baucus who helped write this bill worries it's going to be a train wreck, the person who is setting up the exchanges is what we're trying to do is make sure this is not a third world experience. now the gao report saying we are not sure the states will be ready, you wo*pbdz if they ar wonder if they are laying the

ground to say, hey we need a few months, we are going to delay this because we are not going to be ready on january 1 for this thing to start. people are signing up in october. bill: that would be a whopper of a headline. interesting to think about. grace-marie turner from washington today. thank you for coming in. >> thank you, bill. martha: we got this fox news alert coming in from maplewood, minnesota. this is just outside of st. paul a suburb out of st. paul, you can see that a chopper has gone into the side of a detached garage. we are told that this was a mosquito-spraying helicopter that was in the air and that it went down. it's not clear at this point in terms of injuries. they are reporting that it was out there doing mosquito-control spraying and it happened about 8:15a this, this morning. a couple of hours and 15 minutes ago. we are going to keep one eye on that and tell you what we find out as it develops. and a new c bo report says that

immigration reform could be a huge pwhao*s nor th boost for the economy but senator tom coburn has serious doubts about that outcome. he points to the cbo's poor prediction record in such things. he joins us live next. bill: the heat battle back in over time and man did they come from behind forcing game seven against the san antonio spurs in the nba finals. what a shot. game seven tomorrow night, huge audience to watch that one. martha: good stuff. we'll be right back.

bill: said news here. slim whitman has died. he died of heart tpwaeul you are ifrail you are in florida. he was known for his yoddle. his sideburns became his trademark throughout his career. he encouraged a teenager by the name of elvis presley to make his professional debut. slim whitman, we remember him fondly, dead at the age of 90 in florida. martha: we are going to take you back to maplewood, minnesota

right now where we have been watching this chopper crash situation, unbelievable scene on the ground in maplewood, right outside of st. paul in the twin cities area. this was a chopper that was up doing mosquito spraying we are told in the suburban section of this -- outside the city area. we don't know yet in terms of injuries, but obviously it looks like there certainly could be some serious injuries on the chopper. we don't know if anybody was inside the structure which we are told is a detached garage. we are waiting to get some more information on what they are finding on the ground there, but, boy, what a horrific scene in maplewood, minnesota, just outside of st. paul this morni morning. bill: about 18 minutes before the hour now. the nsa secret spy program vigorously defended. we watched a lot of that yesterday. in rare testimony the agency's

chief keith alexander says the government surveillance effort stopped at least ten terror attacks from the homeland and scores of them overseas dating back to 9/11. this is part of the headline here. >> in recent years these programs, together with other intelligence have protect egd thproceed protected the u.s. and our allies from treris terrorists threats including to prevent potential terrorist events 50 times since 9/11. let me start by saying that i would much rather be here today debating this point than trying to explain how we failed to prevent another 9/11. bill: that was quite a statement from yesterday. peter king sits on the intelligence and homeland security committees, back with me today, and good morning to you, sir. >> good morning, bill. bill: were you aware of 50 plots disrupted since 9/11? >> i became aware of a number of them last week. i wasn't keeping tracks over the

years. we monitor the nsa. general alexander comes in to meet with us. there were any number of them that we had been told of. exact number, no. in fact there is probably more than 50. 50 is the amount they kneel they can go into detail on as time goes on. bill: you're saying it's more than 50? >> it could be. it depends on how you describe what role was played, what information was given. i will go with general alexander when he says about 50. but there's others that also could be related. bill: the other number he said was 20 different countries. were you aware of that? >> yes, we were aware that this program was extremely helpful in other countries, to other countries, in fact you can recall when this news first broke several weeks ago one of the first people to defend the program was the british foreign minister haig who came out and said how central this program is. bill: what do you think his testimony did especially for the american public, the concerns they had and that they still

have today? >> well, i would hope that it alleviated many of the concerns. he showed how safe the program is, how in the 12 years the program has been there there's not one evidence of abuse. and how tightly controlled it is by the courts, by the justice department, by the congress, and also, later on in his testimony they were showing how actually there's far more powers given in a organized crime case or a narcotics case as far as wiretapping ability, et cetera. bill: what about the stock exchange case? the new york stock exchange plot? i don't think that was public before, was it? no, in fact that's part of the problem. and even this case, it took them a week to get -- to be able to describe the case publicly. we met in private with general alexander last week and the concern they have is that when you go public are you going to be tipping off the enemy to the actual methods and operations we use? also could we be compromising another investigation? or could we be compromising one

of our foreign allies? because very seldom do you find these just one-on-one cases. often it's information we get from allies, they get from us, it's all part of a mosaic and he didn't want to do anything at all that would in anyway inch fridge on another ally or prevent this from going forward. bill: it seems to me that was the explanation he was putting forward, they have to talk to some governments overseas to make sure if they are comfortable going public as well. here is the continuing aggravation of a lot of people. why do you have to collect everybody's number in. >> of course if you don't have all of them the system is incomplete. those numbers are kept -- bill: why do you need my number? why do they need your number? how does that make the system in complete, sir? >> because you can't distinguish one number from the other as to which one could he potentially in the next five years be involved in a terror case. they want to have the full array of numbers so that any time in the next five years if a number comes up they can then drill in

and find out who in this country spoke to it. it's very hard to decide who to include and who not to include. during the time those numbers are held they are in a lockbox. no one has any access to them whatsoever. and it's just number to number and the duration of the call. if you had an incomplete list how do you decide who to filter out before you go in. bill: i understand the way you're explaining it i just don't think it's enough to convince people of the argument. anyway that's to be continued. in 15 seconds the president was asked about this earlier in berlin. did you wonder why he was not explaining this to the american people before he went overseas? >> bill, let me tell you i support the program. having said that i think the president of the united states should have gone on television, explained the program fully. he hurt himself by saying last month we pretty much went back to 9/11, the war on tere requires him is winding down. if that is the case why have expansive powers? they are expansive of. the only reason i'm supporting

them is i believe the war on terrorism is real and deadly. the president wants it both ways, saying the war is mostly over, i need these powers. he should have had a prime-time address to the nation. bill: a lot of people would carry a similar opinion. sir, thank you for your time today. i'm out of time here but we will speak again. peter king, congressman from new york. >> thank you, bill. martha: all right, the congressional budget office, the cbo says that immigration reform could cut the federal deficit by hundreds of millions of dollars. is that really the case? one of the senate bill's critics, senator tom coburn joins us live right here next.

martha: a top republican sepz is raisinsenator is raising new concerns about the budget office's scoring of the senate's

immigration reform bill. the cbo says that the bill would end up cutting the deficit if it passes by $197 billion over the course of the first ten years, and that the gdp as a result of this influx of, you know, people who are becoming legal immigrants eventually would grow the gdp significantly. but oklahoma senator tom coul tom coburn who watches the bottom line very closely in washington has this question, when is the last time the cbo has been accurate about anything, he says? he joins me now, senator, good morning. good to have you where us. >> good morning. how are you. martha: i'm doing fine, thank you. why do you doubt this report? what do you see in here that doesn't ring true to you? first of all the language. most of the -- the claimedngs ce social security trust fund. that is not even a part of the calculation of the deficit. so it has no effect on the deficit. it has an effect on the debt but not on the deficit.

it's not part -- even part of the budget. so when we actually look at what they've calculated it will have no effect whatsoever on the deficit. it may have some effect on the trust fund. but they are highly inaccurate. the fact is, a lot of these people who are undocumented an illegal today are paying social security taxes. martha: that's right. >> because they are working under a false social security number. martha: that's a good point. >> and what they are doing is not taking anything from social security, because they are not qualified. so i have a great deal of doubt about the numbers that have been put out. i think the big thing missing in the cbo score is the other statement that everybody should be reacting to, it is obl going tonly going to cut illegal immigration by 25%. we'll have 75% of the problem of illegal immigration. and nobody is raising any points over that. that is their assessment as well.

you can't have it both ways. you can't say social security is in good shape and say by the way this bill will solve social security problem an and claim it as deficit money as well. martha: you make a lot of interesting points i. want to go back over the one you made before. there are a lot of illegal workers in this country who pay into the social security system and reap no benefits from it at all. does this cbo, does it account for that, that many of those people would be converting to being here legally, so it wouldn't really change in terms of the money that they are bringing in? what they did was go out ten and 20 years. of course their 20-year estimates are far less accurate. the real point would be is 30 years what is the impact. and of course you can't see that. plus, they don't have a handle on it now. if you ask the federal government what the control of the border is they'll tell you 85 3erz. 85%. if you ask the people who actually do studies of illegal immigrants they'll tell you

45%. where you get your information, ou accurate it is and your track record is very important. cbo's track record is abysmal. martha: obviously it's a big selling point for proponents of the bill because they look at the numbers on the face of it and say that is good. the gdp would be higher, and the deficit would be lower in the long run. so, i ask you this. in terms of where this bill is going, because, you know, that eurgs th is the biggest question right now. go ahead. >> the important point is the gdp will be bigger because we'll allow another 8 million illegal immigrants into this country under what they've said. you're not going to just have 11 million you'll have another 8 million into the country under this bill. the whole contention is to control the border and do the humanitarianly right thing with the people living in the shadows here and i don't necessarily disagree with that, but reought to be very cogent about how we do this. and rather than repeat this again.

i think at best it's a mixed bag from cbo, and usually it's not very reliable. martha: very interesting. tom coburn, senator, thank you so much. >> thank you. bill: more to come on that. also on the hill more to come on this a senate committee questioning fbi director robert mueller at this hour, about the nsa programs, the boston bombings, a lot of topics on the plate there. we'll get a live report and let you know what they are talking about in a matter of minutes.

bill: so we go to our second job on wednesdays, that's on the

radio. martha: it's a lot of fun. we get to harass frank. bill: he's always welcoming us with open arms and open doors. [laughter] martha: "happening now" starts right now. bye, everybody. jenna: and right now we have brand new stories and breaking news. jon: the president is in europe today, but on capitol hill, all eyes are on the fbi director as lawmakers grill him over what his agency is doing or not doing about a host of scandals plaguing the white house. we'll take you there live. a wildfire grows from 20 acres to more than 5,000 in less than 24 hours. crews are desperately trying to protect homes as the flames move in, and mother nature is not helping out. we're live on the scene. and an nfl star now being questioned in a possible homicide case. as investigators descend on his home. the very latest on that story and breaking news all "happening now." ♪ ♪