dorset, minnesota, uses a lottery to run for mayor. he's out campaigning -- martha: and he has campaign advisers trailing behind him. gregg: he's truthful which means he has no future in american politics. [laughter] martha: oh, don't say that. thanks, gregg, we'll see you back here tomorrow. gregg: "happening now" begins now. jenna: and we begin with a fox news alert. stories we're watching today for you, first to the white house. breaking news on the health care law as we get a major announcement from the health and human services secretary. plus, we have that tropical storm, chantal, as it barrels towards haiti, threatening to bring rain and flooding and possibly landslides. and we're also watching the latest developments unfolding in a florida courtroom where george zimmerman is on trial for murdering unarmed teenager trayvon martin. today a major blow to the defense. but first, right now brand new stories and breaking news. jon: one of the nation's most-wanted fugitives on trial in boston, whitey bulger accused

in 19 killings. we have the latest on what's going on in that case including why the accused mobster exploded in the courtroom. and in that same courthouse the victims of the boston marathon bombings coming face to face today with the accused attacker. one woman whose two sons lost limbs in the bombing plans to be there. we will talk to her this hour. and crews out west battling a wildfire that's burning dangerously close to a lot of homes. it's all "happening now." ♪ ♪ jon: and some new questions looming large this morning about what a high profile delay in obamacare's implementation could mean for millions of americans. this as dueling agendas over the law are sparking more political fireworks in this our nation's capital. i'm jon scott. jenna: i thought summer was supposed to be the slow news

season. jon: in washington it's supposed to be. jenna: well, not right now apparently. hi, everybody, i'm jenna lee, and just within the last hour, health and human services secretary kathleen sebelius held a conference call about the government's latest efforts to get people to enroll in obamacare. thisinthis as house republicanse pushing for a break to give everyone time from the mandate. what did the secretary have to say this morning, jim? >> reporter: she announced that $150 million will go to community health centers to help sign people up for coverage and that 3,000 outreach workers will be hired. she also noted that walgreens and blue cross blue shield will help educate people about the law. the administration's worried about all that because so few people understand the law. many don't like it as well. a recent kaiser poll said only 19% thought they would be better off under the law, and a fox poll found people oppose it by a margin of 55-40%.

so they've got a long way to go, and they know it. jenna? jenna: jim, the house is having a hearing today challenging the president's authority to delay the employer mandate which was part of the law, and now we know they have that delay until 2015. what is that all about? >> reporter: well, that's right. even though republicans would like to repeal the entire law, they're questioning whether the president has the power to implement the parts he wants or that don't cause him political problems until after the elections in 2014. now, the chairman of one house committee says the delay in the employer mandate sent a clear message. listen. >> while the white house continues to suggest obamacare will be ready on october 1, the stunning delay of the employer mandate calls that into question. >> reporter: and he said the treasury department's announcement confirms our concerns that obamacare is simply not ready, as he put it. and now that the president has delayed the employer mandate, many lawmakers are saying why move forward with the rest?

some are arguing that at a minimum if the president's going to delay the employer mandate, he should also delay the individual mandate as well since many people may not be able to get insurance from the employers which could push them onto the exchanges and make the program even more expensive than it already is. one other thing, jenna, there's a computer glitch that was announced yesterday. as you know, insurers are able to charge smokers as much as a 50% penalty, but they were ip kleined to charge -- inclined to charge lifelong smokers the full 50% but a much smaller penalty for younger smokers. the computer system will not accept a difference in the penalties. therefore, it is likely that young people will have to pay the full 50% that would be charged on older people, lifelong smokers, because the computer system cannot recognize the difference. jenna? jenna: jim angle, thank you. >> reporter: yes, ma'am. jon: so the white house's

controversial decision to delay the employer mandate is also raising new questions about whether or not the move is constitution l a. a topic discussed last night on "the o'reilly factor." listen. >> you think it's unconstitutional for the president to take an existing law that he signed and say we're not going enforce part of that law, the employer mandate? is that unconstitutional? >> of course it's unconstitutional. the constitution says the executive has to faithfully execute the laws, and here it is faithfully ignoring a law it doesn't like in the same way it wantonly passed the dream act unilaterally, an act that the congress had rejected. it is absolutely lawless in the things it does. this is only the latest example. jon: that's syndicated columnist and fox news contributor charles krauthammer. our next guest says this is all about positioning for 2014. joe trippi is a former howard dean campaign manager and fox

news contributor. positioning, joe? what do you mean? >> well, a lot of the fight that's going on everybody knows none of the changes are going to happen. in other words, congress has already voted to repeal obamacare 37 times. they know when they vote to repeal it for the 38th time that the president will veto it even if it does pass the senate where they don't, where with it won't be voted to be repealed. so all of these machinations on both sides are really about fighting the perception of this law for benefit in the 2014 congressional elections. that's the only reality that all this political maneuvering is about. i'll point out that, you know, when medicare part d was signed into law by with president bush, democrats were saying the same kinds of things. it's a sock to the big pharmaceutical companies, and it only had a 21% approval rating, favorable rating when it was

passed. today 90% of seniors believe it's a great program, and so you've got to try to kill it, these kind of programs early before they get fully implemented because generally people respond favorably to them once they're all impacted. i think it's that and the 2014 elections both sides are maneuvering for. jon: all right. but in the case of the employer mandate portion of obamacare, the president doesn't even seem to believe in it because he's not going to enforce it for another year. what about charles krauthammer's point? he says that's not constitutional. the president can't selectively choose which laws he wants to enforce. >> i just disagree with charles on that on one point, and that is, look, throughout the united states in counties, state, local government and national governments there are a lot of laws that aren't enforced. and, frankly, that's one of the big arguments people have made on immigration, that if we just -- or gun control. if we justin force the laws that

already -- just enforce the laws that already exist, everything would be great. government doesn't enforce laws all the time. so i don't think that that'll be found unconstitutional, and even if charles is right, we're talking years down the road before that would get to the supreme court, and the supreme court would rule that way. by then the president would be enforcing it, i think. so i don't -- i mean, i think it gives, it's a good argument, but i don't think it holds water when you really, when you really look at it. jon: well, but it's bleeding over as you know into the immigration debate. as you know, the senate has passed this bill that says, you know, we'll reform immigration law if we can verify that we've got tough enforcement on the border, and we've got 350 more miles of border fence erected. if the administration can selectively choose which parts of the law it wants to enforce, who's to say -- and critics are pointing this out -- who's to say that he won't, you know, that the the administration

won't suddenly say, oh, we don't really need that border fence or we don't really need, you know, verification in. >> jon, you're making -- that's exactly the point here. and i think that's another one that may get chalked up to the 2014 elections. a lot of these fights that are going on right now whether it be immigration reform or obamacare are going to have a huge impact on the 2014 elections and who turns out and who's motivated to vote. and these are the critical issues that you're talking about that are going to make things, you know, move on either side right now. it's unclear who's going to come out of it on top. jon: but regarding that 2014 election, a lot of skeptics, cynics are saying, look, the president is delaying implementation aspects of his own signature achievement because he knows it's going to be a mess, it's not going to be popular, and democrats are going to get hammered at the polls if they try and put it into effect. >> well, i'm not sure that one

makes much sense either, jon. i've heard that criticism. but the fact is the employer mandate was put into effect to stop companies from dumping people as the law came into effect. because he's not imposing it or enforcing it, that means companies could dump people off of health care. if they do, it would seem to me that would hurt him going into, hurt democrats going into the 2014 elections. so i'm not -- i mean, i understand the argument, i'm not disagreeing with it, but there's the counterargument that says not enforcing it could hurt politically even more. so i think all this is going to -- look, you're going to see a lot of television ads on both sides about this, and i think the people are going to get the fight one more time in 2014 show which way they want to go. jon: and those dueling ads are only going to add to the confusion because there's an awful lot right now. joe trippi, thanks. >> thanks, jon.

jenna: the man accuseed in the boston marathon bombings is making his first court appearance hours from now. the courtroom is expected to be packed with families of the victims of the april 15th attack. three people were killed that day, more than 260 others injured when two bombs went off near the finish line. the 19-year-old suspect now possibly facing the death penalty. molly line is live outside u.s. district court in boston with more. molly, what exactly can we expect in court today? >> reporter: well, jenna, for the first time since those bombs went off on boyleston street here in boston and following that manhunt and then finally his capture, dzhokhar tsarnaev will face the judge today, and the surviving suspect will also for the first time face the victims and their families as they are in that courtroom today. it's expected to be a packed and busy house. the hearing gets under way at 3:30 this afternoon. heavy security for the arraignment. we've seen a perimeter all the way around the court building, a bit larger than it usually is,

and just in the last couple of moments we saw a caravan with the u.s. u.s. marshals. star -- sr. knave is charged in a 30-count indictment accused of using weapons of mass destruction resulting in the death of three people, those spectators were crystal marie campbell, lingzi lu and martin richard. and days later he was accused in taking part of the slaying of sean collier. very possible we will also see a large police presence today and in the courtroom people stopping by really to show their support for what happened here in boston. jenna? jenna: we'll be back to boss to on the when that happens -- boston when that happens. the bombings changed a lot of lives including the lives of two brothers who each lost a leg. they'd been standing at the finish line on april 15th when that first bomb went off. coming up, we're going to talk to their mother about what

happened that day and why she wants to be one of the many family members that are going to be in the courtroom today. we'll ask her why coming up in just a little bit. jon: imagine her thoughts at a time like this. we are tracking new developments into the investigation into that deadly plane crash in san francisco. coming up, what we're now learning about the pilots' actions in the minutes leading up to the crash. ♪ ♪ [ female announcer ] when you asked us to remove

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>> going to go ahead and provide te ruling on the animation. the state's objection to the admissibility and evidence to the computer animation is sustained. the computer animation will not be introduced into evidence, but it may be used by the defense as a demonstrative exhibit. jon: judge debra nelson kicking off today's start of the george

zimmerman murder trial with a blow to the defense, ruling that an animated reenactment cannot be introduced at trial, just one of two major rulings against zimmerman's defense so far this morning. phil keating is joining us live from the seminole county criminal justice center in sanford, florida. i guess not a great start this morning for zimmerman's defense, phil. >> reporter: but, jon, probably not that much of a surprise as judge debra nelson was sounding very skeptical about allowing these two pieces of key defense evidence into this trial. looking live inside the courtroom now there on the witness stand is dennis root, he is a law enforcement trainer. he's one of the final witnesses expected to be called today by zimmerman's defense prior to it resting its case. he's testifying right now on when justified deadly force can be used in specific circumstances. judge nelson this morning also ruling those photos of marijuana and be a handgun found -- and a handgun found in trayvon martin's phone and text messages

about fighting are not admissible as the defense cannot absolutely rule out somebody other than martin took and sent them. these rulings coming after a monster 13-hour day yesterday with the judge finally going home, walking off the bench at about 10:00 last night. just as zimmerman's defense attorneys were still talking, tensions got a little high at that point. but in the end we're all back here at trial, day 12 right now. jon? jon: and the judge this morning, i guess, also addressing the potential last witness in this murder trial? >> reporter: yeah. the defense intending to rest later today, perhaps in the early afternoon, but it intends to also call maybe two or three more witnesses beyond that. but this morning as we began the judge preparing this defendant, george zimmerman, for his big decision. judge nelson had him stand up to hear this: >> have the right to testify if you want to. and that's a decision that you alone have to make. i mean, the final decision is yours. but i want you to make sure that

you're having conversations with your attorneys about whether or not you're going to testify. >> reporter: no indication yet from george zimmerman whether he intends to testify. inside the courtroom again today the two parents of trayvon martin sitting in row one. actually, row two right behind the special prosecutor from jacksonville, angela corey, who ultimately after 44 days filed charges of second-degree murder against george zimmerman. jon? jon: all right. phil keating joining us from sanford. thanks. jenna: from florida out to california now where there's some brand new information on that deadly san francisco jet crash. investigators have now interviewed all four pilots, and according to what we're now learning, during the final approach to the airport the pilots relied on automated equipment to control the plane's speed. which fell dangerously below the recommended safety threshold. >> the crew is required to the maintain a safe aircraft. that means that they need to

monitor. we have a flying pilot, and we have two other pilots that are in the cockpit, and they have a monitoring function. one of the very critical things that needs to be monitored on an approach to the landing is speed. and so we need to understand what was going on in the cockpit and also what was going on with the aircraft. jenna: claudia cowan is live in san francisco with more on this story. what's the latest you can tell us about the pilots? >> reporter: well, jenna, what's still unclear here is whether those pilots were continually monitoring their speed even as they tried to correct their approach which was off center and too low. according to federal investigators, the pilots were relying on the plane's automated throttle, a kind of cruise control to maintain the correct speed, and they're still trying to determine if the auto throttle malfunctioned or wasn't set properly and whether that contributed to the crash. the ntsb releasing new pictures

showing the extent of the wreckage amid new questions about why the flight crew was not tested for alcohol or drugs. drug testing rules can vary after an accident. >> part 129 or foreign carriers, there is no specific u.s. requirement. they are deferring to the country in which those air carriers are based. >> reporter: investigators say the flight pilot was only about halfway through his training on the boeing 777 and that the trainer pilot was on his very first trip as an instructor. in fact, jenna, there were three pilots in the cockpit during the landing, one in of them realized there was -- none of them realized there was a problem with the air speed until it was too late. next ntsb press briefing coming up at 5:00 eastern, 2:00 pacific time today. back to you. jenna: claudia, thank you. jon: wealthy arab states are sending billions of dollars to help stabilize egypt as a shifting political landscape

gives islamic militants a stronger foothold across north africa. ambassador john bolton here to break it down and tell us what it all means. he's up, coming up.

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jenna: over the last 24 hours, some big news on egypt when it comes to the bottom line which is so important for tha country given the state of their economy. what we've seen is wealthy gulf states sending billions of dollars in aid to egypt both to help the new government and to weaken those who they perceive as their enemies. ambassador john bolton is former u.s. ambassador to the u.n. and a fox news contributor, so we're going to have a little fun with the map today, ambassador, as we show our viewers a little bit about where this money is coming from from. saudi arabia, this was announced during our show yesterday, sending about $5 billion to

egypt over the last 24 hours, and when you look at the uae also over here, way on the side with saudis, bringing about $3 billion in money, oil and also some sort of debt forgiveness as well. what do you make of these two big players jumping in now, and how much of a game changer is that money? >> well, it's not really big money given the complete morass that mohamed morsi allowed egypt's economy to become. but the gulf states, i think, are going to pull together. just this morning i believe kuwait chipped in another $4 billion, and i'm sure more will be coming because these monarchies, these oil-producing states see the muslim brotherhood as a potential threat to the stability of their regimes. they would like to see egypt brought back into a stable situation. so they're prepared to help even though other states in the region, qatar being the prime example, have actually been aiding the miss him brotherhood. but the -- the muslim

brotherhood. but the wealth of the oil-producing states by and average will be behind the egyptian military. jenna: is that good for us? >> yes, i think it is, especially until we work out the statutory problem we have with providing aid to egypt. i think it's clear one of the reasons the demonstrators went in the streets against the morsi government was that he was prioritizing trying to create an islamist state and watching the economy sink. and that wasn't the priority of most of the people in egypt. so to try and get the economy back on track and get stability so that things like tourism can resume, that has to be a high priority for the interim government and for its supporters like the saudis and others. jenna: interesting you point out, though, ambassador, that mohamed morsi wasn't alone. the country of qatar right here, just this little country, it's also the area where we have our largest military base in the middle east. we're sending a lot of money to egypt. also they sent a lot of money to syria which is way up here and supplying some of the islamic

militants, and that's been controversial as we watch this money really move around the region. other two areas we're watching, ambassador, you have iran over here, and we can't forget that libya is right next to egypt, and we've talked about, ambassador, the rise of an islamic state in northern africa overall. so when you see not only the money flows, but also some of the big players, what do you think egypt means for the region? >> well, it's absolutely critical as the most populace arab state, 90-80 -- 70-8 to million people with the suez canal running through the country, with the peace accords with israel being the policy for peace in the middle east, if egypt comes unstuck, it would simply accelerate the problems the region is experiencing throughout and lead to massive instability. so that's why the monarchies or at least most of the monarchies of the gulf region are trying to

provide some assistance to get that stability in there, and it's honestly why the american interest here lies with the military effort to stop mohamed morsi and the muslim brotherhood's creeping coup against the secular constitution. jenna: you know, the suez canal, just so our viewers know, is right here. so important for any of the goods that are really flowing from europe to in the area, but also important for the flow of oil and oil prices as well for us. ambassador, even though we've seen that change in egypt and morsi's now out, has the money stopped? you know, when you look at what's happening with qatar, for example, are they still flowing money into the muslim brotherhood right now? i ask because people are raising that question of whether or not we're seeing the beginning of a civil war, and money would be key to that. >> well, you know, there's just been a regime change in qatar. the long-serving emir has stepped down, he's handed over to his son the crown prince, the prime minister, foreign minister, also used to be head of the qatar investment authority where a lot of that

money's stored also stepped down. so it's not clear that the new government in qatar is necessarily going to pursue the same policies as the old one. but i think this is why really american leadership is required in the region as a whole. we've got enormous interests at stake. we've got enormous problems, we've barely touched on iran. you certainly mentioned it, but it's been fishing in troubled waters for years, supporting terrorists like hezbollah and hamas, building a nuclear weapons program. and the absence of america, i think, really is having a very detrimental effect to stability in the region worldwide, region wide where each of these individual national crises could become a morass throughout the entire region. jenna: this is not just about money, it's about influence, even though that's what we were focusing on today. ambassador, always enjoy our conversations. thank you so much. >> thank you, jenna. jon: for the first time since the boston marathon bombings, the sole surviving suspect is going to be in court. joe hard tsarnaev will come face to face with family members of

the victims of the attack including one mother whose two sons lost limbs that day. we'll speak with her next. plus, take a look at this incredible video. a funnel cloud caught on tape. we'll tell you where. and we are tracking tropical storm chantal barreling toward haiti right now. meteorologist maria molina on whether the storm could threaten the u.s. mainland, coming up. hi. i'm henry winkler.

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jenna: breaking news on three major stories we're watching today. we're going to britain with the george zimmerman -- begin with the george zimmerman murder trial. trayvon martin was in better physical shape than george zimmerman, speaking to the fight the two of them had. the defense is likely to wrap up its case as early as today. in the meantime, the judge ruled that trayvon martin's cell phone text messages on fighting will not be introduced as evidence. both of those things are out. the obama administration in the meantime announced its latest effort to enroll people in the new health care law. health and human services secretary kathleen sebelius said $150 million will go to community health centers to help sign people up for coverage. this is happening at the same time house republicans are pushing for a vote to delay the individual mandate because the employer mandate is also delayed. house republicans want to

dramatically reduce the budget for the irs by up to $3 billion. this comes as lawmakers craft a new government spending bill. a live report on that new showdown is coming up. jon: another major story we're keeping an eye on in, tropical storm chantal. it is moving rapidly, barreling toward the dominican republic and haiti, threatening to bring a lot of rain and potential flooding to that island. meteorologist maria molina in the fox weather center. >> reporter: yes, that's right, we're tracking chan that'll, and we did get an update on the forecast track, and now we're thinking the storm system should track farther westward, so we'll show that that in just a moment. it's moving very quickly, close to 30 miles per hour, so that's very quickly for a storm system out here across parts of the caribbean. a little unusual, and it is already producing showers and storms across the dominican

republic and sections of haiti, and out here we're talking locally up to 10 inches or even greater amounts, so that will be a huge concern across parts of haiti in terms of flash flooding and also possible mud slides out here. again, that forecast cone has been shifted farther west, so that means now we're not thinking the center of the storm system should be moving over parts of haiti, now closer to parts of jamaica, closer to sections of cuba, but it's going to remain relatively weak. max mull mum sustained winds right now around 40 miles an hour, it's going to track farther north and bring heavy rain into this weekend and parts of friday across parts of the state of florida and eventually saturday morning. jon, one of the reasons why we think it's going to remain so weak out here is that winds are just too strong across sections of the southeastern u.s., so that should help weaken the system. but again, expecting heavy rain. we've already seen heavy rain over the last couple of days, so the ground's saturated, we could be dealing with flooding issues

out here. overall, thankfully good news, not expecting a hurricane across the southeastern u.s. for now. jon: that is good news. we'll take that. maria, thank you. jenna: this just in, we're going to take you back to boston where we have some brand new video of a big day in the court. dzhokhar tsarnaev, his first court appearance is happening today, and that a have been is the van, apparently, nascarlying him to court -- is carrying him to court. obviously, a lot of security in the area as molly line has described, but this is the first of many appearances as the quest for justice is happening now. he, of course, is charged with using a weapon of mass destruction in the april 15th attack. three people were killed, more than 260 wounded. many of the wounded lost limbs, including these two brothers, paul and j.p. norton. they were spectators near the finish line. they were there to cheer on their friend, and the first bomb went off. the brothers instantly tried to shield their friend's mother, their friend's daughter and

aunt, taking the brunt of the explosion. and because of that, each brother lost a leg. they're still recovering from their injuries, but their mother is going to be in court today, and she joins us now on the phone. liz norton is with us. liz, i was checking out the facebook page for your boys, some great pictures and video of their recovery and getting to know them a little bit. i'm just curious if you could tell them a -- tell us a little bit about what april 15th was like for you. >> on april 15th my sons paul and j.p., they left to go to the marathon, and j.p. had only been there six minutes and paul about 45 minutes prior to the second bomb going off. and i was out shopping, and my son called me at 3:05, called to tell me that he was hurt really bad and that he couldn't find his girlfriend, jackie, or his brother, j.p.. you know, the ambulance driver got on the phone and told me he was hurt real bad, to get to the hospital. so i tried to -- not knowing

what happened and not expecting what, not actually being aware of what was going on because i hadn't seen the news, excuse me, the news or heard anything, i tried to make our way to boston, and it was chaotic. we didn't know where we were going. i didn't ask the ambulance driver which hospital they were taking him to. we ended up at boston medical hospital where we then realized that he was at beth israel. and for three and a half hours i couldn't find my son, j.p.. i honestly thought he was dead because during the three and a half hours i couldn't find him, i found out that paul had lost his leg. so it was -- jenna: you've talked about this as being the worst nightmare that you can imagine, and hearing you tell the story, we can certainly understand that. why do you want to be in court today? >> i just, when it happened, i didn't watch the news. i wasn't aware any of the news for the first month because, you know, we were living it. my boys, i was going back and

forth to beth israel and -- [inaudible] so i didn't follow anything. and i'm trying to make some sense of what actually happened that day. my boys went out healthy guys and came home with their lives changed forever. all of us, our emotions, you know, it's heartbreak. every day i watch them try to do things that used to be so simple that now are challenges for them, and it's just, i'm trying to figure out what went wrong that day or how it happened. jenna: as you try to make sense of it and as you mentioned this is part of why you want to be in court, there's a lot of people that talked about getting justice, you know, we're going to bring these people to justice. what would justice look hike to you, liz? -- look like to you, liz? >> you know, i honestly don't know. i don't know how -- i'm angry now, but i just don't, i don't, i don't know enough -- i don't really know what happened that day, so i don't know what justice could be. i don't. i just don't really know how to answer that, i'm sorry. jenna: that's okay. you know, you're going to learn

a lot today. it'll be interesting to hear from you, and hopefully we can check in just to see what it was like for you in court and how it is for a mom to see one of the men that's allegedly wreaked such evil upon not only your city, but on your son. so we hope to check back with you, liz, be we appreciate you taking the time today. >> thank you. jenna: we will certainly check in with liz and, hopefully, she'll come back on the program as well. we wanted to mention this side story to you. there's one face that no one will ever forget, and that's the face of 8-year-old martin richard, the youngest person that was killed in the terror attack. and his family is dealing with so much right now in addition to their loss, and we just wanted to share this with you because the entire family asected. 7-year-old jane, martin's sister, lost her left leg below the knee. their mother, denise, was left partially blinded. their father, bill, suffered permanent hearing loss. the only one family member, the

2123-year-old, henry -- 1-year-old, henry, escaped the attack with no injuries, but that's just one example of an entire family that's been so impacted by the case in boston. we'll pay close attention today. jon: well, fewer of your tax dollars might be funding the irs, the agency that's charged with collecting them. that's if house republicans get their way. but how likely is that? carl cameron on the budget with battle showdown, coming up.

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if you're 50 or over call now to request your free quote. i'm gonna call. i'm calling. i'm calling. i'm calling. call today and make the switch to the aarp auto insurance program from the hartford. why wait? jon: new information on a push by house republicans to slash the tax man's budget. if gop lawmakers get their way, the irs would receive billions of fewer -- billions of dollars less in revenue, let's put it that way in funding. once a few government spending bill is approved. this follows admissions that the agency targeted conservative groups applying for tax-exempt status. chief political correspondent

carl cameron is live in washington with that. carl? >> reporter: hey, jon. doesn't matter how you describe it, the truth is the irs' budget is on the chopping block. a subcommittee has already approved a bill giving the irs $9 billion for next year's budget. that amounts to a $3 billion cut from this current year, and it's $7 billion shy of what the president actually wanted for next year. republicans plan to slash 24% from the irs after the reports from the inspect or general from the irs of lavish and wasteful conferences and instructional videos based on things like "star trek." here's the committee's chairman, hal rogers. listen. >> they have proven that they know how to waste money, number one. number two, they were using part of their funds to, i think, go of after an enemies list, the conservative groups, and so this is a way for the irs to show us that they can do their job, albeit at less cost.

>> reporter: and the republicans are trying to cut all financial services agencies by about 20%, but the irs' 24 president is, obviously, bigger, and they say it's because of that shoddy record. democrats say it's basically ridiculous and pretty much counterproductive to cut financing for the very agency that collects taxes to run the whole government. wamp. watch. >> what do we want to do, go around and give people a tin cup and collect money to pay for our police, our firefighters, our government, our capitol building? how do they expect to run this country? how do they expect to make sure that we have enough resources to pay for the defense of our country? >> reporter: what republicans want to do is make sure those resources don't go to all the conferences and videos. the truth is the bill has little chance of becoming law. it'll have to go to the full appropriations committee of the house and pass it and then the full floor of the house and then

ultimately the floor of the senate where it's expected to get killed. it does let republicans point out how wasteful and out of control government spending has been and becomes an opportunity to put democrats on the record effectively defending the irs saying they shouldn't be cut notwithstanding all of these scandals that have been so outrageous across the country. jon: so the white house still closed to tours, but the irs has had its conferences and line dancing teachers and so forth. >> reporter: they're going to take at least a 20% cut, perhaps a 24% cut if this bill goes forward. again, it's largely an exercise in illustrating how messed up things are at the irs and republicans talking about that and trying to put democrats in a position of defending it. jon: carl cameron, thank you. jenna: he was once one of the most wanted men in america, and today we take a closer look at the case against james whitey bulger following a very explosive day, literally, in court yesterday. judge napolitano joins us live to tell us whether or not he's ever heard such language in any

of his courts. that's up next here on "happening now." >> yes, i've heard such language.

jon: he was one of the nation's most wanted fugitives. 83-year-old james "whitey" bulger, the alleged former leader of boston's irish mafia, also the winter hill gang. he was captured back in 2011 after nearly two decades on the run. he's now currently on trial for a long list of crimes including 19 killings. judge andrew napolitano, a fox news senior judicial analyst, is with us, and i guess there were some fireworks in court yesterday. a guy that he hadn't laid eyes on in something like 16 years, kevin weekes -- >> right. jon: a former enforcer or heavy for his gang is testifying in

court, and, well, referred to bulger as a rat. that brought all kinds of fireworks. >> yeah. the government contends, and it's in the process of proving its case and, candidly, the evidence of guilt is overwhelming, but the government contends this man was an enforcer for mr. bulger. and now this guy, and this is typical of mob cases, is turning evidence in favor of the government and against mr. bulger and, of course, bulger wasn't happy about it. so the question is, i suppose, how do jurors react when the defendant stands up from the defense table and uses four-letter, barnyard words to describe a witness who's just she testified against him? jon: so answer your own question, what does the jury think? >> i think the jury understands the animosity between the two. mr. bulger does not help himself, because he basically doesn't say you're lying, it's not true. he's saying you're not being faithful to me. so i think the jury fully

understands what's going on, and mr. bulger would be a lot better not to say these things. on the other hand, i don't think it matters what bulger says. he's extremely likely to spend the rest of his life in jail. jon: and this judge, this federal judge, denise casper, ends up jumping to her feet and screaming at both of them, hey! >> well, here's why she did that, because this is a long, tedious, expensive case. he could say, mr. bulger, could say some things which would be so disruptive that it would be a mistrial, and they'd have to start all over again. she doesn't want to do that. she, as the court and everybody that works for her and almost everybody in that courtroom on this side of counsel table, has worked long and hard, thousands of hours to get this case ready and to put it on for the jury. jon: this is, apparently, his third outburst in the last week or two. it's my understanding that his defense team has been talking about the possibility of putting him on the stand to the try to

salvage his reputation. if this is the kind of behavior he exhibits in the courtroom, that doesn't seem like it would be such a good idea. >> no. the only thing that it would salvage would be his e ego, because it would give him the last word. not the last word, the judge will have the last word at the time of sentencing, but it will let him state allowed what he's been -- allowed what he's been -- aloud. he's going to seal his own fate. perhaps he knows that, and he just wants one last opportunity to speak aloud to his formerly adoring public. jon: and cameras not allowed -- >> never. not in federal court. this would be a great case if we could be watching it like we are the zimmerman case. jon: jenna wants to watch it, right, jenna? jenna: very colorful language. >> but you're not used to

hearing words -- >> jenna: judge, thank you. >> you're welcome. jenna: a criminal investigation launched after a train derails and explodes. dozens of people are still missing, the latest on the disaster.

is

>> rick folbaum in the "happening now" control room a brand new hour with brand knew stories coming your way including the 34 million-dollar building the pentagon put up in afghanistan that u.s. forces will probably never use. we have the details on that. also the sole surviving suspect of the boston marathon bombings heads to his very first court date. a live update. george zimmerman's defense team getting ready to rest its case. we'll teal you what florida police are doing to prepare for the haven't all verdict. as "happening now" starts right now.

jon: breaking developments on obamacare on this wednesday. hello, everybody, i'm jon scott. jenna: i'm jenna lee. we'll go straight to capitol hill where the house ways and means health subcommittee is now holding a hearing on the white house's controversial decision to delay a key provision of the massive health care overhaul law. just a week ago you might remember this. the government pushed off a requirement that some employers offer health insurance to workers until after the midterm elections, until 2015. now there is calls that the administration delay the individual mandate as well. this all raises concerns about the obama administration's ability to put into effect the biggest domestic policy initiative in at least a generation. plus republicans also question whether the president even has the authority to delay parts of the law like employer mandate and only implement parts of law he says or the government says are ready. so that is also a question of legality we're taking a look at today. certainly a lot happening inside

that dome there. jon: you heard charles krauthamer last hour saying he thinks it is unconstitutional. the white house meantime making a big pr push for the roleout on the health care overhaul is concerned and kathleen sebelius, health and human services secretary just announced $150 million will go to community health centers across the country to help sign up people for coverage. these health centers are expected to hire some 3,000 outreach workers they're called. plus walgreens and blue cross-blue shield will be tapped to help educate people. all this part of an effort by the administration to make sure americans understand this law and their health insurance options. jenna: this is fast-move, certainly this story. we'll bring you more as it develops. >> >> meantime a fox news alert. brand new news from the faa they are changing some of the flying requirements for copilots. rick will have more on the story in just a moment. also we want to mention this to you. the world's largests union is

critizing the ntsb and their handling of the asiana crash investigation. they say the ntsb is relosing so much information so fast it is encouraging the public to speculate rather than get a full picture what really happened. we're starting to hear from the passengers from this flight. so a lot of news about, this news out of san francisco today. rick is here with all on these developments. rick? >> reporter: let's break it down, jenna. it is not only because of the crash of asiana flight 214 that the faa is changing the requirements for copilot flying time. they're saying it is also because of a crash of a kogan flight outside of buffalo, new york. you might remember that crash in 2009. they are continuing to interview the pilots of the asiana flight 214. officials say transparency, keeping the public informed is a critical part what they do. here is an update on the injured. 22 people are still in the

hospital including 10 chinese nationals, four americans and three south koreans. san francisco police department hit-and-run unit is investigating a 16-year-old who may have been run over by a fire vehicle after the crash. investigators talking to two of the four pilots yesterday as well as some of the tower operators. those interviews will continue. they have been able to figure out the plane was traveling much slower than it should have been as it approached the landing strip. asiana's ceo is in san francisco today planning to meet with ntsb. then tour the accident site at the airport tomorrow. he will visit with injured passengers who are in local hospitals. we are also just hearing that some of the eyewitness accounts of passengers, people who were on board the plane. listen. >> i was over the water, i wanted to see if anyone was surfing or wind conditions, is there wind or not. and i just noticed we're very

low. we're a lot lower than we usually are when i land in san francisco. i'm dismissing it. it is fine. the pilot knows what he is doing. we're almost there. i can almost see the runway. >> reporter: meantime the flight attendants, jenna, are being hailed as heros, even helping to evacuate passengers in spite of their own severe injuries. the ntsb says a final determination on the cause of the crash is months away. once again the headline of a change in the rules to require more flying time for copilots. back to you. jenna: that in part as you mentioned, rick, we don't know whether or not that is attributed to what happened in san francisco but we do know that kogan flight a couple years ago is part of the reason they're considering this change or putting this change into effect. >> reporter: that's right. as we get more on this we'll let you know. jenna: thank you, rick. jon: the u.s. military just finished building a massive new state of state of the art headquarters in

afghanistan but the facility that cost $34 million is sitting empty now with plans for the withdrawal picking up speed. there are no plans for the u.s. military ever to occupy this building they have constructed. that's not the only waste america appears willing to leave behind in afghanistan. national security correspondent give give is live at the pentagon with more, jennifer griffin. jennifer. >> reporter: john in afghanistan you don't expect to find elephants but seems to be a natural habitat for the white elephant. a unique beast subsidized with u.s. taxpayer dollars, millions of them. in helmand province near the u.s. marine base at camp letter neck, the u.s. military has nearly completed building a state of the art military headquarters will likely be torn down because marines are pulling out. afghans will not be able to use it. for one, the 64,000 square foot headquarters was wired for 110-volt appliance, not the 220-volt equipment used by

afghans it would cost more u.s. dollars to convert it. inspector general from afghanistan is demanding answers from u.s. secretary chuck hagel. it appears to be the best constructed building i've seen in my travels in afghanistan. unfortunately it is unused and unoccupied and presumably will not be used for its intended purpose. the 64,000 square foot headquarters was built in the desert with a massive operations center that rifle's some say centcoms. a briefing theater and office equipment but will likely be torn down. quote, leaders in afghanistan determined in may 2010 there was no need for the facility yet the military still moved ahead. i'm deeply troubled wrote john sopko wrote to chuck hagel, that the military spent construction funds on a project that should have been stopped. the british firm that the us air force contracted to build the facility would need to add

millions of dollars in additional software to complete the headquarters and the air-conditioning alone is too expensive for the afghans to maintain. it is not alone. in northern afghanistan the state department last year spent $80 million on a 10-year lease for a building to be used as a u.s. consulate. it was deemed too vulnerable to attacks. it too has been scrapped, millions of dollars down the drain. jon? jon: meantime they're furloughing civilian workers for the pentagon under the sequester? >> reporter: absolutely. jon: jennifer griffin in the pentagon. jennifer, thank you. jenna: we're awaiting court action in the boston marathon bombings case today. the only surviving suspect set to appear before a judge in public for the very first time just a few hours from now. in the meantime congress is holding a pair of hearings on terror attacks like the one in boston, focusing on the lessons learned and ways to improve counterterrorism efforts. chief intelligence correspondent catherine herridge is live washington watching this part of the story which is an important

one. catherine? >> reporter: thank you, jenna. a central theme at today's hearings are the role of political correctness and whether this has the effect of paralyzing law enforcement. on the 2009 fort hood massacre in texas where allegessed shooter, nidal hasan shouted a la akbar before starting to shoot. former republican mayor of new york city say the defense department designation is insult to fort hood's 13 dead and more than 40 wounded. >> i think it is exceedingly damaging to engage in this fiction that the attack at fort hood was work place violence. >> i champion the cause that it was in no way work place violence. >> reporter: significantly the testimony this morning suggests that the work place violence designation came from the administration and was not driven by terrorism experts according to testimony from the former head of the national counterterrorism center or nctc

which analyzes threats against domestic targets. >> the day after the fort hood attack the national counter terrorism center entered the attack at fort hood as, in the worldwide incident terrorist database as terrorist attack. >> that was the day after. >> reporter: the chairman of the house homeland security committee this morning says, the fbi refused to provide a witness who could explain the apparent failure to exchange information between the fbi and the local cops in boston about the fbi's investigation of the older brother, tamerlan tsarnaev there on the right. >> unfortunately the fbi has refused to appear and continues to refuse this committee's appropriate requests for information and documents crucial to our investigation into what happened in boston. >> reporter: asked for an explanation an fbi spokesman this morning told fox there is an ongoing prosecution of dzhokhar tsarnaev. we have the initial court

appearance this afternoon and the fbi did not want any public statements at today's hearings to possibly jeopardize that court appearance, jenna. jenna: we'll watch for that appearance and news today. catherine thank you. >> reporter: you're welcome. jon: there are new problems for the president's signature achievement, the law even he has come to embrace as obamacare. why the white house decision to delay the employer mandate sparking calls for other delays and why it spells trouble for democrats. we'll go in depth. the crisis in egypt seeps to escalate and but there is one thing they agree on, the distrust of the u.s. government. how this will impact american policy there next.

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jenna: let's take a look at some of the headlines around the world today. we'll start off with what is

happening in iran. a website in iran is registering volunteers to join in syria's civil war. it cites the supreme leader, ayatollah khomeni. one of assaud's strongest allies. or iran and syria.w there is a a volcano in mexico spewing a massive ash cloud two miles into the air. airlines canceled dozens of flights to avoided it. for the first time you see this ash falling in mexico city, more than 50 miles away. we'll continue to watch that a who are spying scene of a bush crashing into a house. the bus driver died and the man at home at the time was critically injured. 11 people suffered minor injuries. the cause of the crash is now under investigation. jon: "happening now," democrats could soon find themselves in a tough spot over obamacare. house republicans saying it is only fair that ordinary americans get a delay in having

to get health insurance after the white house says it is letting some businesses off the hook in providing health insurance for at least a year. the gop is considering taking up a bill that would do just that. jonah gold berg is editor-at-large for the "national review." he is also a fox news contributor. so much of this is about perception, jonah, and many democrats are saying, oh, the president's health care law would be gliding along smoothly if there wasn't so much republican opposition. is there a danger in what republicans are proposing here? >> i don't think there is a danker in this actual vote. i think this is a good idea for brandingwise for the gop to basically say, hey look, democrats, why are you, cutting a break for big business and not for the little guy? i thought that was your whole thing? very rare that the republican party gets to put itself in a position where the democrats have to squirm being on the side

of big business. i think it's a smart political move. they do have a problem if they seem like all the problems with obamacare are simply because of gop obstructionism. the thing, i think we're very far from that being reality. this last decision about delaying the business mandate had nothing to do with gop obstruction and, this law has been unpopular since it was first brought up and it is, as unpopular as it has ever been and the idea that somehow the republicans will get in trouble for being against a bill that, are being against a law that the majority of american people are against strikes me as sort of hard to figure that one out. jon: so why if obamacare is this panacea that's going to cure all of our ills, literally and figuratively in the health care system, why is the administration deciding to delay implementation of a huge chunk of it? >> we're getting to the point, just sort of paraphasing "animal

house," the democrats picked up the slogan, we fouled up. you trusted us. it is such an unbelievable mess and we don't know all of the reasons why they're having to delay or put off the business mandate, you know. this is not the first time they have had to cancel or change something in the law, but it puts them, it does give the sense they are in a really bad way. this was a hastily-written law, it was a badly-written law and it is just not working out. i don't know, you hear a lot that the delay on the business mandate was because of the 2014 elections and i think that's probably true at some level. i just don't know that it helps them that much. it keeps the issue alive. it doesn't get rid of it. it delays it for a year. republicans will say hey look, we have overhang on business community. the democrats are bailing out big business and it could turn out all these people, all these businesses start dumping everybody on the exchanges which was why they created the thing

in the first place. there could be a lot of downside for democrats on that side too. jon: of those americans who have jobs and that is not as big a number as we would like right now, but those who have jobs and have employer sponsored health care, even the congressional budget office says seven million of those people it estimates are going to lose the employer health care by 2022 because of the expenses of implementing obamacare. >> yeah. and one theory you hear is that maybe they're doing this so they can get more people into the system because they're afraid not enough people are going to sign up. the problem with this thing, you know, it is sort of a pinata, you can hit from any angle you get some reward and there are some problems with it and so many of the problems are interconnected to each other. if one thing doesn't work it creates problems somewhere else. like a systemwide patient in a who is very sick, if you don't fiction the liver, the kidneys go, the lungs go, blah blah.

you sort of have the same problem. these things were set up to counterbalance each other and if they don't work, none of them do. jon: wow! and the foot bone connected to the ankle bone of. jonah goldberg, "national journal" online. thank you. jenna: investigators reversing course in a dramatic way. saying a massive oil shipment explosion that destroyed much of a small town may have involved in criminal activity. police say more people than originally thought are dead and missing. we have the latest on this story. also in egypt there are few things pro and anti-morsi protesters agree on but there is one place there is total agreement is that american policy is bad in egypt. how do we navigate what seems like an impossible situation for the united states? we'll talk about that next. [speaking in native tongue] i didn't want nicotine to give up nicotine.

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jon: right now in quebec, capped today, police are launching a criminal investigation into the train inferno that turned the heart of a town into a war zone as police are actually finding more bodies. rick folbaum is reporting this for us. rick? >> reporter: there is search for those still unaccounted for, jon, but nobody is holding out much hope of 60 people alive. human remains were found near the explosion site. investigators say the victims were burned beyond recognition. families are supplying dna samples. officials say the there is a chance the remains will not be in fact be able to be identified. criminal negligent is one possible charge we're hearing could be filed. not sure against who. the company who owns the runaway train, said firefighters, local firefighters disabled the train's brakes hours before the

disaster while they were fighting a small unrelated fire on one of the train's cars. the local fire chief said his crews followed protocol releasing brakes, letting officials know the fire was out. clearly the brakes were never applied, leading the entire locomotive rumbling doesn't slope into a packed downtown area on friday night. 60 people confirmed dead -- 15 confirmed dead but 60 unaccounted for. that number is expected to rise. as we learn more we'll pass it along. jon: on that criminal investigation, it sound unbelievable. thanks very much, rick folbaum. jenna: now to egypt. the crackdown escalating there with prosecutor general ordering the arrest of the muslim brotherhood's spiritual leader and nine others, accusing them of inciting violence in a protest on monday. you might remember this. it left more than 50 people dead. some say that it was a peaceful protest. others say it was not. these arrests come as we see a jump in attacks since the ouster of president morsi but

supporters of the muslim brotherhood and the protestors in tahrir square seem to have one thing in common. they both distrust the united states government and believe america is conspiring in some way against them. we want to talk a little bit more about this with the associate professor of middle easten politics at the university of oklahoma's department of international and area studies. one of his areas of expertise among many, is that you study the muslim brotherhood. great to have you on the program today. >> thanks for having me. jenna: let me read a comment a quote in the "washington post." it's quoting a 30-year-old man in cairo. he's part of the opposition forces. some refer to those opposition forces as the liberal forces. meaning he is not a part of the muslim brotherhood. here is what he has to say. "we love the american people but we hate obama and paterson. speaking the ambassador, she needs to pack her bags and needs to go home.

we she has to go home. >> many people opposed to mr. morsi, the secular and liberal forces were incensed that the united states was seemed to be the supporting mr. morsi when he was president. aid continued. high level delegations came and met him and so on. that's part of it. the second part is many people of course felt that ambassador paterson, i think she's, you know, blamed too much and unfairly was, was supporting the muslim brotherhood. many claim that she tried to dissuade people from taking to the streets and tried to encourage them to use other means and so on but then most recently the criticism is not only of the united states government but also of the media of classifying this as a coup. in other words, those who were opposed to morsi have a narrative that this is a large-scale popular protest, a revolution against mr. morsi, that was supported by the

military and therefore the discussion in the u.s. media and by some american congresspeople that this is a coup angers them. jenna: interesting. so there's a lot of dynamics at play and that's a bit of an understatement quite frankly when we look what is happening in egypt right now. but when we talk about our policies, when we say wee support an election, meaning the united states government, that government that was elected ended up being headed by the muslim brotherhood, those who oppose the muslim brotherhood criticized the united states. now that we haven't come in and say, protected the muslim brotherhood, now the muslim brotherhood is saying see, the united states, they will never support an islamist government. we had a guest on our show yesterday from cairo that said that latter part is actually very, very dangerous. what do you think of that conversation? it seems like a no-win situation for the united states no matter what we do? >> well, i agree with you it's a very dell account and almost a no-win situation for the united states and of course there is a history of extreme skepticism,

if not hostility towards islamist political parties in the region by the united states and western governments. so in algeria when a islamist party won elections in 1991 that were nullifieded by the generals no one raised a voice in the united states or in europe when hamas, a slightly different situation, won their legislative elections in 2006, elections that were free and fair, of course that brought a reaction from western governments of, not dealing with hamas. so there is this fear, it's a genuine concern -- jenna: is it a valid concern, samer? given what we've seen islamist government. look at hamas. i know that is difficult to compare with algeria but is it valid to have those concerns? >> well it is valid to have concerns in some situations and like other ones and like you imply the situation is difficult. i don't think it is fair to say the united states was opposed to the muslim brotherhood.

that is untrue. the united states recognized elections that took place in egypt last summer t recognized mr. morsi was the president. the president obama spoke to him a number about types. aid continued and american officials dealt with him. it would be unfare to say the united states had it out for the muslim brotherhood and tried to undermined them from the beginning that would be a factually incorrect statement. jenna: quickly, what do you see next? >> this will be a difficult process. i mean of course i think the generals in egypt are not democratic. so they're bad news. my sympathies are with people protesting against morsi but the difficulty will be national reconciliation as well as the economy which has been spiraling downward for months. jenna: we look forward to your book coming out on the muslim brotherhood and look forward to having you back on the program so we can talk more specifically about that group as well. >> thank you very much, jenna. jenna: watch what happens in egypt and it certainly will be a factor. thank you for coming on. >> you're welcome. jon: if only we had tv cameras in this courtroom where

fireworks erupted. the white at this bulger trial turns explosive. a courtroom, profanity-laced battle over who is the real rat. your legal panel weighs in on that. plus the battle over student loans weighs in on capitol hill. who has the better plan, republicans or democrats? a fair and balanced breakdown. hey kevin...still eating chalk for heartburn?

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woman: what do you mean, homeowners insurance doesn't cover floods? [ heart rate increases ] man: a few inches of water caused all this? [ heart rate increases ] woman #2: but i don't even live near the water. what you don't know about flood insurance may shock you -- including the fact that a preferred risk policy starts as low as $129 a year. for an agent, call the number that appears on your screen. jon: fox news alert. and right now, authorities from the howard county sheriff's

department are investigating a police-involved shooting outside of a b.j. wholesale club in columbia, maryland. the word is that a customer inside the store was brandishing a knife. police responded and wound up shooting the man. he was taken away to the hospital. reportedly his injuries are not life-threatening. this is taking place at a bj's whole say club in the 9,000 block of snowden river parkway in columbia, maryland. we'll keep you updated as events proceed there. the whitey bulger mob trial and a gangster and former partner, in fact his protege who said he saw bolger kill three people back in the 1980s, they're trading four-letter f-bombs in the courtroom and we're not talking nice. rebecca rose woodland and dan schorr, a former prosecutor, they are with us now. you have one admitted former

organized criminal testifying against the guy he says was his boss. both are pretty unsavory characters. when they start exploding at each other in the courtroom, what does the jury think? >> whenever a prosecutor is targeting high level mobsters or kingpins they have to call unsavory characters because they are ones who witnessed the crimes. the jury will hear this, they will be shocked by cursing in court because that is not every day. they have been hearing a lot of graphic testimony about murders and by now they're somewhat jaded by what is happening. jon: ever had one of your clients jump up and screaming at the witness? what happened? >> i actually have. it is something you have to control to the best of your ability. you have people who have outbursts and in this case, you have whitey bulger who is extremely vocal now. will say whatever he wants because he thinks he is running the show. in a situation like this we have one of his former cohorts who is

already serving life in prison. so his defense attorney may try to spin this back, to say, well, he is saying anything he wants because he is already life in prison. there is nothing that can affect him. so they will try to spin it as if some of this stuff isn't true and he is just trying to help the fbi and the prosecution but from what we saw as judge napolitano said earlier to you, whitey bulger didn't stand up and say you're lying. he said some other thing. so the jury is probably pretty confident about now the testimony of this informant. jon: so us does it make, does it make the testimony look more credible? >> if the defendant actually gets outraged and curses in court that shows it bothered him. however as i said before in this case there are some details that are very really credible against the defendant i doen't think this will be a make-or-break moment but again it didn't help the defendant.

jon: as the judge said last hour, apparently, we have no cameras in the courtroom but apparently the exchange went something like this. the attorneys were asking this witness kevin weeks about murders he participated in reportedly at the behest of whitey bulger. he said look, i didn't care because these were rats that we were killing but it turns out i had two of the biggest rats next to me. that referred to whitey bulger. he didn't like being called a rat. and that is what the outburst happened. >> the man on the stand was his cohort who was saying whitey bulger was a rat because he had informed to the fbi allegedly for years prior to this, then he went on the run. then he was captured but apparently in the0's and 90's he was an informant. that is what he was referring to -- '80s. they were having an exchange about business, mob business. >> more concerned about the rat allegations sometimes than the murder allegation. jon: that often happens in these

organized crime cases apparently. they will admit to anything but won't admit to being a rat. >> that is what is going on here. anytime that comes up he is bothered about it and the defense is trying adamantly that he is a rat. jon: the judge in this case had to jump up and scream at both of them just to knock it off. she runs the risk of losing control of this trial i guess? >> that is the biggest problem here. she doesn't want a mistrial. all the hours and money put into this trial, for this to happen and for constant exchanges, sometimes, a mistrial is called when that happens. you don't go free. you just start the process all over again. so that is just more money for the state and for the federal government in this case. nobody wants that. so she's saying hey, control in my courtroom. sit down. everybody keep it and let's just keep going on the testimony and on the stand. no problems anymore. jon: this is the third outburst as i understand it from bulger, from the defense table. will, does that preclude him you

think from testifying in his own defense? >> he will always have the right to testify in his own defense. jon: but strategically? >> strategically if his lawyer thinks he will be volatile on the stand and won't handle cross-examination as well, get into shouting with the other attorney he might not get on the stand. he is adamant i talks when he wants to talks so he may testify. jon: dan schorr, rebecca rose woodland. thank you both. jenna? jenna: jon, a battle over student loans is heatings up again on capitol hill. interest rate went up last week when both failed to act. they will try to come up with a plan to bring rates back down. what does it mean for millions of americans who have student loans while all this is happening in d.c.? fox business network's jo ling kent is here with very latest. jo? >> reporter: jenna, that's right.

the battle over student loans has everyone agreeing doubling their interest rate is bad but no one in washington can agree how to restore the lower rates. the senate democrats tried earlier this hour with a procedural vote but they were not able to get the 60 votes they needed. it failed 51-49, to invoke cloture to return the rates at 3.4% for the coming year. this comes one week after congress's inaction caused rates to double on stafford loans to 6.8%. republicans said the senate democrats proposal was unimpressive. this plan nearly kicks the can down the road for 12 more months. that is from senate republican richard burr. jack reid countered and shot back saying republican proposals are attractive in the short term but in the long term are extremely expensive. meanwhile the gop-led house recently passed its own plan to keep interest rates lower for the next few years but the bill allows rates to rise if the economy improves, something the obama administration supports but the senate democrats did not

agree with the plan. so without an agreement students with subsidized stafford loans will face 6.% interest rates. many students who received the loans are from middle and lower income families and the average undergraduate will pay an extra $2600 this year in interest according to the congressional joint economic committee. as capitol hill manages to pass some kind of a deal before august there is a possible small silver lining. only a small group of students who borrow money for summer school will likely be affected by higher rates in place right now. most student loans are issued in august and september just before school starts. and anything the senate passes would likely retroactively apply, jenna. jenna: we'll see if they get it together. that $2600 is a lot of extras to pay when you look at your interest rates. we'll continue to watch the story, jo. thank you. >> thank you. jon: eye on the storm as we track tropical storm chantal and the flooding threat it poses to some of the most vulnerable

countries. plus the battle between wal-mart and our nation's capitol over the minimum wage and why it could wind up costing d.c. nearly 1800 jobs. we're live with that story. ... ... ... ... (girl) what does that say? (guy) dive shop. (girl) diving lessons. (guy) we should totally do that. (girl ) yeah, right. (guy) i wannna catch a falcon! (girl) we should do that. (guy) i caught a falcon. (guy) you could eat a bug. let's do that. (guy) you know you're eating a bug.

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naturally lost over time. [ female announcer ] ensure muscle health has revigor and protein to help protect, preserve, and promote muscle health. keeps you from getting soft. [ major nutrition ] ensure. nutrition in charge! jon: some extreme weather stories across the globe. tropical storm chantal now roaring toward the dominican republic and haiti with warnings and evacuation orders already in effect. the storm could bring heavy flooding and possible landslides. now to china. parts of that country hit with worst flooding in 50 years. the heavy rain triggering a landslide that buried some 40 people and also sparking the deadly collapse of a coal mine workshop. over in toronto, downpours from a summer storm saturated the city during rush hour swamping commuters as they traveled by roads and rail. flash flooding submerging one line, leaving passengers in

ankle-deepwater and in need of rescue. what a mess. jenna: it is. a battle between the world's largest retailer and our nation's capitol as the d.c. city council gets ready to vote on a bill that would require wal-mart to pay its employees a quote, living wage. which amounts to nearly $5 more than the minimum wage. wal-mart is firing back, threatening if the legislation is passed in the city it won't open some stores planned to be open there which could cost d.c. nearly 1800 jobs. doug mckelway is live with this story in washington. doug? >> reporter: d.c. is two cities, largely white, prosperous northwest quadrant and poorer sections of southeast and southwest with unemployment rates far above the national average. for generations residents ever those poorer quadrants complained they have no local access to the large chain stores that most americans take for granted. so when wal-mart announced

intentions three years ago to build six stores in underserved d.c., it was welcomed with open arms. wal-mart polling showed 73% of the residents favored it. d.c. mayor vincent gray wrote, disagreement represents unprecedented agreement for a citywide retailer. wal-mart agrees to be a good corporate neighbor. three stores are under construction with two slated to open in the fall but at the 11th hour the d.c. council introduces what is calls the large retailer accountability act that requires retailers that do over a billion dollars in corporate sales to pay a minimum wage of $12.50 an hour. that is $4.25 more than the district's minimum wage. the bill is slated for a final vote with d.c. council just this afternoon and if it passes wal-mart is promising to yank its plans for the three unbuilt stores and also reconsidering opening the ones that are already underconstruction. in an op-ed is in yesterday's

"washington post" a wal-mart representative said and i'm quoting, "from day one we said this legislation is arbitrary, discriminatory and discourages invent in d.c." the chairman of the d.c. council said even at $12.50 d.c. wal-mart workers would be hard-pressed to make a living. >> $26,000 a year, which is $12.50 an hour with no benefits for a family of four is below poverty level. >> he is confident the bill will pass by an 8-5 vote this afternoon which leaves, leaves it one vote short of veto proof. mayor vicinity sense gray has not yet indicated whether he will exercise that veto power. again the vote coming late this afternoon. we'll be watching to see whether or not the mayor veto this is bill. jenna? jenna: really interesting story, doug. we'll watch it with you. thank you. >> reporter: okay. jon: new demand for genetic testing. it is pushing the limits of what

doctors can provide. what is behind this new rush for testing? also a fireworks malfunction in california send pyrotechnics shooting into a crowd celebrating the 4th of july. we're learning more about what happened. >> oh. [explosions] >> run. run! phillips' fiber good gummies. they're fruity delicious! just two gummies have 4 grams of fiber! to help support gularity! i want some... [ woman ] hop on over! [ marge ] fiber the fun way, from phillips'.

jon: there are some new developments into the investigation of what went wrong at a july 4th fireworks show in simi valley, california. dozens were injured when the pyrotechnics were malfunctioned and dozens were injured causing the fireworks to go into the crowd. others were injured at another show in laguna hills. both shells were manufactured in china. jenna: a flood of patients are now lining up for genetic

testing many inspired by angelina jolie's decision to undergo a double mastectomy after tests revealed she was at an increased risk for breast cancer but there are some serious concerns now that doctors are not ready for the influx of new patients. laura engel live in the newsroom with the latest on the story. hi, laura? >> reporter: combination of the angelina jolie story and u.s. supreme court ruling that banned genetic patents opened a playing field for genes linked to breast and ovarian cancer. women and men who have history of these two types of cancer are turning up in huge numbers in doctors and genetic counselors offices ever since. she is a yale cancer center and said she had 40% rise in calls to her office in one month alone. >> i think the thing we want to avoided, this is a great ruling by the supreme court. we're thrilled about it but we don't want the wrong tests to be ordered and really waste health care dollars.

>> reporter: she says this creates an immediate need to invest in training genetic counselors who can assess test results and get patients the right kind of care. lisa slager for the national counsel sill of our risk for cancer even professionals don't always advise patients on the best appropriate treatment. >> unfortunate think we have women advised to go forward with prophylactic surgeries to remove healthy ovaries based on wrong information from doctors who didn't really understand what variance of significance was. >> reporter: companies are offering multiplex testing where they test more than for just the brca gene looking for other hereditary mutations where there might be overlap leaving a fine line in being proactive in your help or undergoing too much testing. jenna. jenna: interesting story, laura.

thank you. jon: a big gift that could be in store for big labor and due to a possible changed in long cherished senate rules. we'll tell you about that ahead.

>> take a look at this. a rare glimpse of history. a man in a hat in the background of the video is president ros velt. he was hidden from the public the fact he was in a wheelchairs. he was unable to walk after contracting polo. the row of sailiors were hiding the whole chair in which he was sitting. there is no mistaking his hat. ninteresting to so the glimpse of history.

>> it was a very different time when afflictions from the president were protected from the president. and the media respected the that and the office. >> america live starts right now. >> thanks, guys, a new threat from one of the most powerful men in washington. as senator harry reid considers a massive change in the way washington works and the republicans are calling it a political pay back to organized labor. i am martha in for megyn kelliy. senate majority leader is moting with fellow democrats and discussing the rowel change that would give the president enormous power since it would allow the senate to approve white house