obama, tell him we said hello. see you on "the five." ♪ ♪ >> uma: the i.r.s. mess, just when you thought it couldn't get any worse, news that one woman at the center of the scandal gets a promotion. and it comes as the agency gets blasted for now targeting small businesses. tea party attack. republican congressmen comes under fire for not promising to vote to keep obamacare at any cost. the problem is, he has voted against it a dozen times now. we will ask him what it feels like to go against many folks in his own party. a fabulous milestone for nasa. brand new pictures from the mars rover. one year after it lands on the red planet. those photos are simply amazing. all that and while the president's new nsa reform are coming under fire from both

sides of the aisle. hello. i'm uma pemmaraju. america's news headquarters live from the nation's capitol starts right now. ♪ ♪ >> uma: we begin with the newscast with news of a developing story, information on that massive manhunt underway in idaho. this, after amber alerts across the west coast are raising new concerns for the safety of 16-year-old hannah anderson. her alleged captor, 40-year-old jim dimaggio shifted to a remote part of the state where the two are believed to be trekking through the wilderness. this news as authorities confirm that a second body found inside dimaggio's burnt california home is now identified as that of hannah's 8-year-old brother ethan anderson. earlier in week, her mother's body was also found inside that house. will carr is following the latest development on this story and is joining us live now from l.a. will? >> reporter: hi, uma.

this manhunt started monday in southern california and expanded very quickly. now it's zoned in to an isolated very mountainous area of idaho. now let's backtrack to wednesday. that is when authorities say a horseback rider ran in to james dimaggio and hannah anderson in the wilderness area, about six miles outside of cascade, idaho. the horseback rider tells authority they had a tent and it looked like they had been camping out. >> i think he described the interaction as odd, but nothing alarming. back to his home, i believe he was in tim county. he got back home and saw alert about the amber alert he did think that, you know what? they look pretty familiar. and z in fact, they could have been the people that law enforcement is looking for. >> the horseback rider called police immediately and he ended up telling them that dimaggio and hannah appeared to be in good health. and from his perspective, it

did not appear that hannah was being held against her will. a short time later authorities swarm the area and they ended up finding dimaggio's car, the blue nissan versa you have seen on all the amber alerts. they tell us the license plate had been taken off and the car was covered in brush. i appeared that dimaggio may have been rying to hide the car. they were able to identify it as his car from the vin number. they tell us no explosives were found in the car. it's been a big concern that dimaggio may have homemade bombs on himself. so the search continues today. more than 100 law enforcement agents in that area looking for dimaggio and hannah. at the same time last night, near hannah's home, near san diego, there was a vigil held. family and friends showed up. they're hoping and they are praying that this will all come to a safe conclusion. and that hannah will return safely and that authorities can find them in idaho. >> uma: will carr, thank you for the update. turning now to other news, is the i.r.s. rewarding bad

behavior? i.r.s. official at the cincinnati office at the center of the scandal involving the targeting of conservative groups just received a promotion. elizabeth prann is joining us now with the latest on the i.r.s. mess. what can you tell us? >> hi, uma. today marks the three-month anniversary of the i.r.s. scandal. we are learning cindy thomas, the veteran i.r.s. official overseeing the exempt organization office in cincinnati at the time conservative groups were unfairly treated, has been promoted. thomas is now the senior technical advisor for the director of exempt organizations. she will share a like pox who was a close advisor to lois learner. we are hearing a congressional hearing transcript reveals the tea party groups are getting extra scrutiny. unidentified i.r.s. agent revealed the agency has yet to come up with new guidance on how to judge the tax status groups. >> not only shocking, but it shows that groups are still being singled out because of

the way they approach issues. there is a reason the administration want to assure the american people this was no longer going on. because it's outrageous to do such a thing. >> we are hearing from the house ways and means committee chairman dave camp who called it ongoing targeting and said it's outrageous. the i.r.s. says it looks forward to see the full transcript to understand the context and the "i.r.s. policy is clear that screening is based on the activities, not words in a name." a number of house republicans have called on the federal election commission to turn over its communication with the i.r.s. they have also pushed for more inner agency exchange, including that of lois learner who might have been inappropriately sharing confidential tax information. uma, back to you. >> uma: all right, elizabeth, thank you very much. well, the i.r.s. mess is just one of the distractions and scandals confronting president obama's term.

instead of signing an immigration bill, the president is talk about the nsa leaker edward snowden. peter doocy is joiningnous with reaction to president obama's plan, to reform domestic surveillance. hello. >> hello, uma. president obama now has a four-point plan he says will show americans they don't need to worry anymore about the nsa's surveillance program invading their privacy. >> as i said, this program is an important tool in our effort to disrupt terrorist plots. and it does not allow the government to listen to any phone calls without a warrant. but given the scale of this program, i understand the concerns of those who would worry that it could be subject to abuse. >> so point number one on the president's plan. work with congress to fix the patriot act; specifically, the part with the phone records, section 215. number two, figure out how to make fisa courts pay more attention to civil liberties.

those are the courts where the government goes to get their warrants. number three, explain to the public why section 215 of the patriot act can be a good thing with a new website. and number four, bring in experts from the outside to help the government improve oversight and transparency. but some lawmakers are still not impressed. >> i know there are people in homeland security and intelligence that say no, this is really helping. i'm going it would help put a seasonal in every home, but we don't want to give up that much of our liberty. >> reporter: >> the leaker who shined a light on the program, edward snowden was a big part of the president's press conference yesterday as well. president obama says his mind has not changed about snowden. he does not think snowden is a patriot. but the president says that he was still planning to reform surveillance programs before snowden went public. and then went in to hiding. uma? >> uma: peter, thank you very much.

we have informed i think the public that there is a sealed indictment. it's sealed for a reason. but we are intent on capturing those who carried out this attack. we're going to stay on it until we get them. >> that is president obama offering up some deails on the hunt to get the terrorist and the benghazi attack. while it was widely reported that the charges in the investigation have been filed, the president remarked the only official confirmation on ethe record of a sealed indictment. joining now with thoughts on this. it and other matters, we've got the massachusetts senator, former massachusetts senator and fox news contributor scott brown. welcome. great to have you here, sir. >> good to be on, uma. thank you. >> uma: let's talk for a moment about the remarks that you just heard from the president. it's good to know that the white house is taking steps to get the attackers, but if it had been anybody else, leaking news of a sealed indictment

would probably get people in big trouble. what is your reaction to the news that the president made about the investigation so far? >> i'm glad he is speaking about it. it's been quite some time since we had that tragedy. there has been a lot of things that have been done. if they had come out honestly and openly in the beginning we never would have been in the situation to continuously hold hearings to find out what really happened. an indictment is great. i'm a firm believer in transparency. we should know who they are going after, why they're going after them and where they are in the process. >> uma: let me interrupt you for a moment. i want to interrupt this conversation for a moment to take our viewers out to florida. where president obama is speaking to a crowd of veterans, disabled and other veterans there before jetting off on a vacation to martha's vineyard later today. he is speaking to thousands of those american veterans national convention in

orlando. he is expected to explain his plan to solve america massive backlog of american veterans claims and while he enjoys time off, more than 700,000 veterans veterans veterans will be waiting for their benefit. the administration is claiming there is a 20% reduction in the backlog, but as far as i understand it, senator, you find fault with that. of the tell me arrest -- tell me more about this. >> i was on the veterans committee and i'm still serving in the pentagon right now as a colonel. the backlog is monumental. there is another million plus veterans coming online. they are just overwhelmed. there may have been a reduction, and that is a great thing, but we need to do more. the soldiers should not be released from active duty until they have a full evaluation as to mental and physical state to determine what they can and can't do in the military. we should also if they are, in fact, discharged, we should be using the private healthcare

providers to assist them in the effort. you are looking at over a year to sometimes over 400 days until somebody gets their issue resolved. what is unacceptable. that is leading to suicides, that is leading to depression and other illnesses. it's ultimately costing us more to actually handle the problem if we did it in the beginning right away. >> uma: i want to remind our viewers if they want to see the president's entire speech we are going to be streaming that speech now on foxnews.com. as we continue our conversation, senator, i want to talk to you a little bit more about this in the sense that you talk about the backlog and how many days, sometimes years it can take to get some of the benefits to those who richly deserve them. why do we continually hear the need to fix this problem at a time when so many people like yourself and the president now outspoken about that saying we have to fix the system? why is it taking so long?

>> that is a question of the day, uma. i can tell you, we had many, many hearings and listening to the head of v.a., it was almost humorous in the fact that they kept saying oh, we're getting to it, we're going to do it, with we're going to do it. but ultimately it was never getting done. there is frustration with congress and with soldiers and their families, obviously. there is a certain amount of frustration with the v.a. they received more funds and received more people. they received the computer programs that they need. so where is the breakdown? i think we immediate to get in and really make a massive push. once and for all and find out exactly what they need for pools and resources and do it. i commend the president for signing hire a hero bill. there are initiatives to help get veterans employed and re-employed. that is a good thing. but the key right now is to get the people back both physically an mentally. they're not doing it right way. they need to do better. >> uma: we really do.

more needs to be done to help those who put their lives on the line for our freedom. thank you for that. i want to ask you a little bit more about benghazi to get back on that subject while i have you here. for a while, it seemed that fox news was alone in the effort to investigate details of what actually happened in benghazi. now we're finally seeing more mainstream media asking the white house, very serious and tough questions. do you think the president is trying to get ahead of this now and show the public that the folks vince put the investigation on the back burner, even though we now know that one of the attackers could have been picked up in plain sight months ago? >> listen, there is a lot of covering your backside with the administration right now. they made tremendous mistakes. susan rice would have been the secretary of state had she done things differently and let the public know what was going on differently. i know when i participated in the hearings, they were like pulling teeth. you couldn't get a straight

answer from then secretary clinton and her team on any of the issues. that is why you have senator mccain and yot yot and -- mccain and ayotte and others demanding the right to know. the families have a right to know. we need to make sure how it doesn't happen again. where is the breakdown. could we have a quick reaction force come in and offer assistance? we're not getting the answers. we are still not getting answers. president is trying to get ahead of it but it's too late because the american public lost trust with the president and his administration on this issue in particular. >> uma: scott brown, great to see you. thank you for joining us today. appreciate it. >> okay. thank you, uma. to defund obamacare? yes or no?

[ applause ] >> uma: okay. that is north carolina republican robert pittinger who is getting heat from the might bees of the tea party over the stance he has no plans to vote to defund obamacare. defunding obamacare is part of the continuing resolution that is being fueled by tea party favorite senators mike lee, ted cruz, and marco rubio. congressman pittinger and other republicans say voting against obamacare in this instance could shut down the government. added to this, the congressman cosponsored a dozen bills that involve repealing it in some way. so how far is actually enough? joining us now, congressman pittinger who is joining us to explain why he is against what the tea party wants that time. welcome, congressman. nice to have you here today. >> good afternoon, uma. >> uma: i know some say you are not at the top of the hit

parade for tea party supporters in your state. let me ask you first why you have decided not to vote to defund obamacare right now? >> well, i absolutely agree with their concerns. we should be livid about what is taking place with obamacare. the government takeover. the democrats, senator max baucus said it's a train wreck. i have primary sponsor or cospon or vote against 15 bills against obamacare. we need to defund it and change it and reform it. we need a free market healthcare system. the present plan with obamacare has cost jobs. employers are not hiring. >> uma: all right, so i understand that you are saying you voted for bills to repeal obamacare and try to get it off the books. but the bottom line is right now you are not going to vote against it. as many of your colleagues would like you to and many tea party supporters are asking you to. do you really believe that the government is going to get

shut down if the resolution goes through? >> well, it will require 60 votes in the senate. right now they have 15. there is not any interest on the part of the president, his signature legislation, harry reid is not going to allow this to happen, to defund obamacare. what will happen if we make this the requirement, to not raise the debt ceiling, result to shut down the government, obamacare and the mandtory funding will continue and stay intact with all the rules and the regulations, the requirements, the timetables. what won't happen is the soldiers around the world, defending our freedoms right now won't get a paycheck. >> uma: your critics are arguing against that saying that is not going to happen. and you know, you yourself, know, sir, many in the public have not been happy with the implementation of obamacare so far. in fact, if you take a look at a recent fox news poll, you can see that 57% of the public thinks it's a joke.

are you willing to risk more division within the g.o.p. if you continue to go against efforts to block obamacare? even if it doesn't move in the senate, there are those who say the g.o.p. has to stand together on this one in order to show that it is serious about trying to defund or stan together on the particular issue that is so important to so many folks. >> we are standing together. we were effective. no budget, no pay. we forced the democrats, shamed them to finally passing a budget. the first time they passed one in four years. we required automatic spending cuts. we have succeeded in our strategy. let's be smart. you can talk to comments or both side of the aisle. peter orsag, the chief budget writer. erskine-bowles, i have known for 20 years. they will tell you to go after the retirement, medicare. it would be insolvent.

that's realistic approach to bring savings. >> i appreciate it. i'm up against a hard break but i appreciate your insight. we'll follow your story closely. thank you. >> very good. >> uma: icy relationship goes in to the deep freeze. two congressional lawmakers laws will be weighing in on what is next in the current chill between the u.s. and russia in the wake of the asylum given to the nsa leaker edward snowden. staying put in putin's backyard. it's been a month since the horrific scene which saw the death of 19 members of the heroic firefighting squad known as the hot shots. arizona has been asking for the fed to accept in an offer up some help. that state just turned back. the answer is upsetting. the maimages are compelling -- the images are compelling as hundreds of people confront the terrifying colorado flood. we'll bring you an update after the break. stay with us. ♪ (tires screeching)

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♪ sleep train ♪ your ticket to a better night's sleep ♪ >> uma: welcome back. arizona will not receive additional help follow last month's horrific blaze that killed unbelievable 19 firefighters and also destroyed 100 structures there. federal government has rejected the state's request for disaster declaration.

arizona's governor jan brewer says she is deeply troubled by the obama administration's decision. >> the fire department had to rescue me out of my car and carry me out. >> her harrowing ordeal one of the many terrifying tales we're hearing from the heartland as much of the area continues to be ravaged by floodwaters. near colorado springs today, the clean-up begins after flash floods race through the region. three people have been injured with many homes also danieled by the waters. officials are saying the same area was hit with a wildfire last year. which made it easier for floodwaters to devastate that part of the country. meteorologist adrian green is monitoring the flooding out west and joins us now. welcome. we understand the waters receded a bit in the more than a dozen states out there, that are affected. tell us more about the threat of mudslides now.

>> we do still have a threat for the mudslides. the monsoonal moisture is surging there. a lot of rain can fall. with the vegetation being gone because of the wildfires in that region, that is where we do see the threat for mudslides. another area that we're also monitoring for flooding today is here across part of the ozarks. this is an area what has been hit hard the last several days. in fact, some spots reporting over a foot of rain. just within the first nine, ten days of the month of august. we have showers and thunderstorms blossoming across the region. from jonesborough, arkansas, stretching to kentucky. bolling green. apart the mid-atlantic. this is compliment of the latest stationary frontal boundary. some folks here are picking up an inch to two inches of rain in an hour's worth of time. flood willing be a big-time concern here today.

with the ground saturated it won't take much to see the flooding problem across the region. >> uma: thank you for the update. well, take a look at the video. small plane crashes in to a connecticut residential neighborhood killing former microsoft executive and his son, along with the folks on the ground. we'll have an update from the tragedy as emergency workers remain on the scene. plus, news that despite the startlalling revelation that the i.r.s. is caught targeting the tea party groups and told to stop it, we hear nothing is changed. it's going on three months after the scandal first broke. now, some say the agency is going after folks who are the backbone of our economy. we'll explain. and the cold war, supposedly ended decades ago. or did it? we'll explore what now is fast becoming icily relationship between president obama and russia's vladimir putin.

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>> uma: welcome back, everybody. look at the stories making news right now. at this hour, small plane investigation continues in the small plane that crashed in a connecticut neighborhood, shy of the airport. it tried to land. the horrific scene createing a huge crime scene as four bodies have been recovered. police believe they are a pilot, former microsoft executive, his teenager son and two other children inside the home on the ground. years not cheers in pre-game introductions for alex rodriguez. his 211-game suspension for using performance-enhancing drugs is on appeal. arod went 0 for 4 with three strike-outs. the "wall street journal" reporting thousands of small businesses receiving letters from the i.r.s. questioning whether they were

underreporting their income. some see it as a sign that the i.r.s. is targeting small businesses amid a scandal of targeting tea party groups. but the head of the i.r.s. told the house committee in july there is no evidence that this is happening. embattled san diego mayor is staying in his job even amid calls that the fellow democrats step down. is quitting intensive therapy today? it's a week earlier he said he would stay in. more than a dozen women have come forward and identified themselves as target of his unwanted advances including accounts of forcible kissing and lurid comments. that's a look at the stories making news right now. after my next election i'll have more flexibility.

>> uma: remember that? that is when president obama could be seen assuring russia's former president medvedev that once he got re-elected he would be able to have more flexibility. that was before the november election when he could be heard off-mic he with paving the way for smoother waters. right now it's anything but congenial. things have moved in aig chill. this is after president obama canceled a meeting with vladimir putin amid the fury in washington over russia granting asylum to nsa leaker edward snowden. joining us to discuss the diminishing relationship, congressman david ceselina and congressman walker. let me begin with you, congressman, many skeptics feel because putin once head of the kgb that the cold war never really ended. what is your reaction to the chill underway between the president and mr. putin?

>> for a lot of people the cold war never did end and a that is unfortunate for united states and people of russia. for us to live in peace and be secure from the threat of radical islamic terrorism and i might say an emerging threat from china, now the world's worst human rights abuser we need to be russia's best friend. instead we're pushing them away, demonizing the leaders and not giving them equal trading status. when we -- there has been massive reform in russia. i'm concerned that the snowden episode is taken totally out of context. snowden, of course, what, what did he do wrong to us? he alerted the american people that our own government had excessive surveillance over our lives. for someone like that, asylum

in russia is ironic. >> uma: congressman, some observer say russia and the world aren't taking the president's threat so seriously, so that when snowden was granted the asylum, russia was doing something it intended to do and doesn't fear the u.s. anymore. what is your response? >> the relationship between russia and the united states is an important one. the president was right to cancel the summit and right to say we have not made progress we need to make in the bilateral relationship. if you look at the role they're playing in iran and syria, there is problems with the relationship. it's important that the united states assert the leadership position in the world and demonstrate particularly in light of mr. snowden that this relationship is not headed in the right direction. the president is right. the secretary of state and the secretary of defense met yesterday so that the conversations can continue. but the actions of russia are troubling in a lot of areas that are very important to the

national security. >> uma: but does it do anything to improve the situation? let me ask you this. does it do anything to improve the situation when -- let me finish, please. one second. >> sure. >> uma: when he was on, you know, the late show, with jay leno saying that, you know, mr. putin is exhibiting some cold war mentalities here. by giving mr. snowden that asylum. does that help matters any by having the leader of our country saying that? >> i think it's very important, i think the president has been direct about mr. putin's behavior and the consequences of his decision on the relationship between the countries. the snowden event was the most recent occurrence in a series of events that cast a real question about russia's willingness to be a bilit ral partner in a way good for our country and good for the world. if you look at the way they play in other venues, iran and -- >> uma: let me get congressman in here. >> it should be grave concern here. >> uma: go ahead, sir. >> i think those are important points but you have to remember the things that he is

describing are as a result of american policy toward russia. and not russian policy toward america. we push them in their relationship with iran by not giving them any other place to utilize the engineers and nuclear physicists as their economy collapsed after the cold war. we have been the ones who have denied them the status of the trade status they needed in order to have a more prosperous country. we demonized the leaders like putin, harking back to the cold war, even though they have their churches are full, there are opposition parties and publications, there are elections which although are questionable, the fact is we have questions about our own elections. we have been demonizing this country when we should be reaching out and trying to be friends with russia. >> uma: all right, gentlemen. >> i think russia makes its -- >> uma: that will have to be the last word, unfortunately, gentlemenment i appreciate

your comments. a story we're watching. we'll see where it leads. thank you, gentlemen, to both of you. well, one year in to the multibillion dollar mission to mar what is do we know about our red neighbor? and whether life could be out there? we'll talk about that and other fascinating discoveries with nasa. stay with us. ♪ i'm beth...

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♪ ♪ >> uma: well, this year marks the one-year anniversary of the mars curiosity rover landing. and the not-so-little robot has had quite a big year,

finding evidence of a past environment, very much like earth, that could have supported microbial life. the discovers don't seem to be waning. joining us more to talk more about this, dr. jim green, planetary science director from nasa. we're thrilled to have you in the studio. talk about the big year. first, the big news that there was an environment on mars very similar to that of the earth which could have supported life. tell us about that. >> in the one year that curiosity has been on the surface of mars, it actually landed in ancient river bed. where water moved quite quickly, rounded pebbles, created conglomerates and was wet for thousands of years, maybe millions of years. mars now to us in its past, looks much more like earth than it does today. >> uma: you brought a mod ol the rover. give us some perspective on the size in terms of what it's standing next to. talk to us about that. >> this is a fairly accurate model of the rover, itself.

but to really get a concept of the size, this is one of our test wheels. it's, as you can see, battered up. we dropped it and we have done things with it, in an environment we expected curiosity to encounter. it survivedded pretty well. we could have used that on the rover. as you can see, that makes this rover huge. much more like the size of an suv. in fact, the top of this is nearly seven feet. i have to look up to it. so a human would be about this size. >> uma: it's been performing amazingly well, bringing back images that have been startling. >> yes, indeed. >> uma: tell us about the images we'll be seeing now. >> one of the first set of images that it made, if i can have the first image, turned out to be of itself. it used its arm, it has 17 cameras, but the high resolution imageer on the end of its arm made 54 pictures, little segments. we put those together. there is curiosity.

>> uma: wow! >> it's sitting in this ancient riverbed area. the next thing in this particular area because it has a drill is it drilled in the soil. what we're looking at is not red mars underneath that surface, it's gray mars. mars was a completely different environment. that material is all the basic ingredients for life. and, in fact, it tells us that the sediments that are in, that have been deposited by this river are such that it could have harbored microbial life in the past. what we're looking at is curiosity's ultimate destination on mars. these are linear features on a huge mountain, that is about two miles high. about the height of mount mckinley. >> uma: amazing. those are huge. >> they are. you can see the lines. those are what we call "stratigraphy." sediments that have been laying down for billions of

years. >> uma: the big question is what happened? what happened to that water that was found, that might have been part of the scene millions of years ago? >> right. what happened to mars when it was much more like earth? with an extensive atmosphere and all the water on the surface? that is what we'll find, i believe when we go to the mountain. the mountain will tell us that it has pages in a history book what happened geologically. and what kind of climate change occurred that made mars much more arid today as we see it. >> uma: you expect this to hold up for a while. how long are you expecting to keep the rover there? >> well, the curiosity is doing great. it actually is in what we call the prime mission. it will make more observations over the next year. but in reality, it has the possibility of living many more years, because it's carrying with it the power. it has radio isotope power capeability to last it more than a decade. >> uma: unbelievable. it's fascinating and wonderful to have you here talking to the viewers about its

discoveries. and we're waiting for the discoveries to come. hopefully finding out what happened to the water and what happened to that microbial life. >> right. >> uma: i can't wait to bring you on when we find out. >> that would be great. of course, this is our first step before we put humans on mars. >> uma: that is it. you know, did you see the story this week about 100,000 people so far signed fun for the one-way trip to mars being advertised bay private company? >> indeed. >> uma: there are lot of folks ready to make the trip. i would love to be one of them. thank you very much, sir. good to see you. >> you're welcome. >> uma: appreciate it. >> thank you so much. >> uma: time now for a chance for you our viewers to pick a story that is making the headlines as we let the viewers decide the list of colorful stories that caught the attention this week. here are the stories you can choose from. man's best friend. get this. husband chooses to save his dog before his wife. or little cruneer. pint-size elvis becomes a youtube sensation.

finally, toasted. how one mand landed in jail for an altercation involving his breakfast food. vote by logging on to the show page. foxnews.com/ahnq and we'll read the one you chose at home at the end of the show. imagine this. boys and girling choosing whether to go in the boys and girls room. we'll take you one step closer to reality in one state. find out where. and how the idea is being received. plus, generally when you do something, people think is wrong, you get if trouble. not at the i.r.s. you get a promotion. a real promotion. keep it right here. stay with us. [ jackie ] its just so frustrating...

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welcome back. colorado authorities confirmed they recover ad man's body from debris left by a mud slide there that closed highway 24. he was not carrying any identification. the mud slide causing flash flooding that stranded vehicles in high water.

national weather service says over one inch of rain fell in that area scorched by huge wildfire last year. a quick look at stories trendsing on the web. you are interest medical ted in mess, exempt operations office scandal has been promoted. the veteran has been appointed to the senior technical adviser team for the director of exempt organization. now she will fill that spot vacated by sharon white. a close adviser to lois lerner. lerner was the center of the scandal. first to publicly acknowledge any wrongdoing by taking the fifth. new bill in california that would protect transgender students made it to governor jerry brown's desk. that bill would allow students to choose bathrooms and choose based on gender they identify

with most. california is the first state to pass a law protecting transgender students. and rite of passage. the day when you move out of mom's house. you leave the nest. well, financial collapse of the country, more and more kids are actually re-entering the nest they left behind because they have to. >> the number of young adults and seniors are living in their parents' home or doubling up with roommates is up by 4%. that according to a new analysis by real estate website truia. of the 2.4 million people that would have been homeowners pre-recession but still living with others, 57% 18 to 34-year-olds. the rest are split between those ages 35 to 54 and those 55 and above. economists say that the so-called missing households are driving the overall demand for housing down. it is especially true for young

people. many of them lack down zpamts and credit histories to qualify for mortgages. >> even if you get back to work you don't run out and buy a home that t day you get a job. it takes years to save up enough for down payment to establish credit history and have the confidence in your job that it is going to be there six months or a year from now that will help you pay the rent or mortgage. >> 26-year-old tara bone so a marketing manager who lives in her parents' home with her two brothers. she says she not ashamed about it. >> i'm not not, not at all. not embarrassed to be living at home with my family. it is a status quo. the people i know who have moved out are struggling and not happy with their housing situation and, frankly, lot of people wish they still had the opportunity to stay at home longer. >> good news is economists are expecting the demand for new housing to go back up. >> thank you very much.

very interesting indeed. there's still time for you to play producer. logon to foxnews.com to participate in our viewers choice story. we will share the one you chose. (tires screeching) red hot deal days are back. (alarm beeping) stop foro one. what? it's red hot deal days. get $100 off the samsung galaxy note ii with features like pop-up play. lets you use any app while watching video. or use the s pen for hand-written notes. just $199.99. hurry in, sale ends august 11th. getting the best back to school deals. that's powerful. verizon.

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we are back. it is time for the story that you at home chose. it was man's best friend. a man chose to save his dog from a sinking ship before saving his wife. the couple's yacht hit a reef on a viage to madagascar and as the

ship began to sink he grabbed his 9-year-old jack russell terrier and swam her to shore and then, only then, went back for his wife. all lee were wearing life jackets and nobody was injured. no word if that couple is still on speaking terms. that's going to do it for me in washington. a shocking new development in the irs scandal. hello. i'm kelly wright. welcome to a new hour inside of "america's news headquarters. >> we are glad to have you here today. i'm jamie colby. it has been three months since we first learned about the tax agents targeting conservatives and official in charge of the cincinnati office of the center of the storm just got a promotion. tell us more, elizabeth. >> the woman getting promotion is cindy thomas. she is a 35-year veteran of the