to bed after they thought "la la land" won? >> i read a kyle smith piece this morning and "the new york post." >> good to have you. we will see you back tomorrow at noon eastern, we will pump up online, and here is "happening now." >> jenna: we start with a fox news alert, white house briefing set to start a short time from now and holding a series of meetings president trump held today with health insurance executives as well as governors. >> jon: as president trump prepares to speak to the nation tomorrow night in his first address to a joint session of congress. where covering all of the news "happening now." >> the question is are democrats going to work with republicans to fix this system? >> jon: that question looms large as the trump white house and congressional republicans figure out their next steps on obamacare. governor scott walker of wisconsin has some thoughts and joins us live to discuss them. plus... >> you have heard both president after my time say we're going to

degrade and defeat isis. i say, go get them because they can be degraded and defeated. >> jon: a former commander-in-chief weighs in on the fight against a terror group, and that is not all president george w. bush i abou. also, in the report says isis is using weapon iced drones on that battlefield overseas. why that could be a game changer for security here at home. it is all "happening now" ." but we begin with a fox news alert as the secretary of defense is about to brief the white house on a new strategy for defeating isis. welcome to the second hour of "happening now," i am jon scott. >> jenna: hi, everybody, i am jenna lee. the daily white house press briefing such as darts and moments from now as we also awaits president trump and congressional republicans next steps on obamacare. earlier the president met with healthcare company ceos and next hour he is such a sit down with house speaker paul ryan and senate majority leader paul ryan. all of this as president trump gets ready to address the joint

session of congress tomorrow night. our chief congressional correspondent john roberts is there now. speak speak of a big headline coming out of the white house today from the joint session with congress, the president plans on asking congress for a rather substantial increase to the defense department budget, the president says that he's going to ask for an additional $54 billion. of course, the president brought the campaigns that he was going to rebut u.s. military to be the biggest and strongest in the world. he believes the reagan doctrine of peace through strength come he's particularly worried about aging were crafts and the shaking size of the navy. at the same time, he asked for a $54 billion increase in the budget for the department of defense come he's going to ask for a commensurate reduction and discretionary spending across the rest of government. he plans on looking at unauthorized programs, duplication and programs, in the president has also said that he will not touch medicare, medicaid, or social security, but that may be something down

the road that he has to take a look at because that is really what blows a big hole in the budget. earlier today, you can see the president met with healthcare ceos, also governors as you mentioned. obamacare one of the big topics of discussion with both of those groups. the president plans to introduce an additional proposal to replace obamacare in mid to late march, he wants to get it out quickly because statutorily come he has to address obamacare before he takes on his big ticket campaign promise of tax reform. what we do not know is with the obamacare repeal in replace package will look like at this point, he told this healthcare ceos that it's going to be a good plan, listen here. >> it's going to be a very competitive plan and the costs will come down, and i think the healthcare will go up very substantially. i think people are going to like it a lot. we've taken the best of everything we can take. it is our hope that democrats. the obstruction and resistance. >> this afternoon come as you mention, he is going to meet with speaker of the house

paul ryan and senate majority leader mitch mcconnell here in advance of the big speech tomorrow night to congress. it also marks a real gear change between the executive action phase this administration started than legislative action because the president needs to have republicans in congress on board and and a few democrats s well as he wants to repeal and replace obamacare and then get his tax reform package done. that said, though, there is another big executive order coming this week on wednesday. the president plans on signing his replacement for the immigration ban executive order that has been tied up in the courts. a lot to talk about this week, as usual. >> jenna: thank you. >> jon: as we await the white house press briefing schedule for this hour with sean spicer, we are also awaiting tv tales from the congress and white house on taxes and obamacare. some rumblings from congress say they would like to see more aggressive guidance from the white house. joining us now with an examination, leslie marshall a radio host in fox news

contributor and kelly riddle, washington times deputy opinion editor. thank you both for being here. i want to play a little bit of sound to kick us off from president trump this morning. here is what he had to say about taxes. >> statutorily and for budget purposes as you know, we have to do healthcare before we do the tax code. the tax cut is going to be major. it's going to be simple, in the whole tax plan is wonderful, but i cannot do it until we do healthcare because we have to know what the healthcare is going to cost and statutorily, that is the way it is. for those people that say, oh, gee, i wish we could do the tax first, it does not work that way. i would like to do that first. >> jon: has promised tax reform but says he has to undo or redo obamacare first. >> it has to go through, if they are going to repeal obamacare, has to go through reconciliation process and be set and the budget for the year. he needs to make sure that that

repeal is put through and they have a replacement that can go and seamlessly so no one loses insurance. for tax reform, larry kudlow and steven moore who are advisors to the president have a very different perspective of what he could do. this is putting an info structure built together along with corporate tax cuts, bringing the corporate rates to the highest rate it is now down to 15-20% as well as have people bring back the overseas process and this would grow the economy and could be a separate bill, but they have to go through the reconciliation process and get 60 votes through the senate and really reinvigorate the economy. i do believe this is where he should go first so he is not tied down to this reconciliation process. >> jon: he is a still promising to repeal and replace obamacare and it says what replaces it is going to be even better and more consumer friendly. speak out first of all, what we are hearing is the reason there is a huge divide right now among

the g.o.p. is repeal and replace is a great campaign slogan, very political and even became an obsession, but the devil is in the details. when you look at the details, it's financially a mess for republicans, the cost to do this. the very difficult path of the implementation of a new plan which we saw democrats certainly had with the affordable care act and now they're growing like among their constituents and republican party and constituents who are not republican who do not want to lose obamacare. there are polls that over 70% of americans do not want this repeal and replace especially if they do not keep key elements of this plan in place and do not have something that is going to promise everybody is covered to replace it with. that just does not seem to be possible for the republicans. >> leslie, there was a "wall street journal" and nbc poll that just came out that said only 4% of poll respondents said that obamacare was working for them.

52% want it dismantled and to do away with it altogether. only 24% of the recipients said that obamacare helped them. 30% said it was hurting them. obamacare is hurting this economy. the ceo said it was in its death spiral come in if democrats are in power, they would have to fix it as well and replace it so it is in the american's best interest that both parties come together and fix and replace what is a failure of a program. >> jon: as kelly was talking, we were watching video of president trump this morning sitting down with healthcare ceos, insurance ceos from around the country who represent tens of millions of customers. if you can do the same kind of arm-twisting with healthcare ceos as he has done with boeing and some defense contractors, we might be able to make some progress, could he no not? >> remember, the ceos of the healthcare corporations who make seven digit figures even if they fail, they get a gold in with

another seven digits, these are the individuals at the top lining their pockets, increased premiums at a much higher rate and percentage than they were under obamacare and the affordable care act, so i benefits these corporations not to have obamacare. they did not want it, but they have the same problem after the fact if they do repeal and replace what they did before, which is without a mandate, the healthy people are not coming on board. with the baby boomers, we have a larger percentage of our population becoming ill because as we age, that is a reality, and that is a problem that republicans cannot address any more than, quite rightly, democrats could. >> jon: we will continue to follow this issue, obviously a big one for the president and the entire nation, leslie marshall, kelly, thank you both. >> jenna: some rare commentary from president george w. bush, the 43rd president weighing in on the trump admissions policies on immigration and fighting terrorism. chief national correspondent is

life at this, ed? >> member how much former president george w. bush has been diplomatic about not slamming then president barack obama who succeeded him an office, and he also seems to be just as diplomatic and walking up to the line, perhaps, of some gentle criticism of president trump, but being cleao be diplomatic, saying that he believes in a free press, for example, when pressed about some of the media criticism by president trump, but also suggesting he might have a slightly different approach on that travel ban, for example. here's what he told nbc's "today show." >> i am for an immigration policy that is welcoming and upholds the law. the enemy is very good about exploiting weakness. it is going to be very important if that is the goal, to defeat isis, which i believe it should be, that we project strength. whether or not the domestic policy in place helps them or not, i don't know. >> what president bush was

really more in sync with president trump is on the issue of waging the war on terror. definitely suggesting that while president obama talked a good game about taking on isis, the former president believes that president trump may now be able to actually finish the job and go after isis and a much more dramatic way. here's what he told our own sean hannity, it will be on tonight. >> you have heard both presidents after my time say we are going to degrade and defeat isis. i say, go get them because they can be degraded and defeated. it is very important, in my mind, that we do so-so that people know they can rely upon us, and the people not only governments, but people on the ground, people who want to be free. >> as if on cue, you see the trump initiation today coming out and making clear they plan a big spending increase to the defense budget, something democrats like nancy pelosi are

already talking about opposing. >> jenna: we will talk a little bit more about that as well, thank you. >> jon: healthcare is the talk of the town in our nation's capital today, governors and insurance company executives meeting with president trump about repealing and replacing obamacare. can republicans craft a better plan? we will talk with wisconsin governor scott walker next. and we are awaiting it daily white house press briefing set to start just minutes from now. when it begins, we will take you there live. all finished.

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>> we are going to repeal and replace obamacare and get states the flexibility that they need to make the end result really, really good for them. very complicated issue. we have tom price, just got confirmed, sitting here. i spent a lot of time with governor walker and governor rick scott the other day. we were talking about it. they are very expert on the subject, and i want to thank

them. >> jenna: that was the president addressing governors at the white house earlier today, also met with insurance executives on obamacare. in the meantime, governors are heading to capitol hill for briefings on the topic of a republican meeting such a start at 2:00 p.m. eastern, democrat meeting begins at 3:00. all this comes amid the g.o.p. push to repeal and repays obamacare with many republicans now saying they cannot do without some democratic support, and there's a big question about the way forward. wisconsin governor scott walker had met with the president on healthcare, you are the president mention his name, chairman of the republican governor association and joins us now, it is nice to have you back on the program. >> thank you for having me on. it's amazing, the last ten days, i think i've met more but the present and vice president in this initiation the meat and many other governors did in the last six years under the previous. >> jenna: i take that as a positive. what is one of the things you can share with our viewers that has taken place behind closed doors that you are viewing that you think it actually help toward a solution when it comes to healthcare? >> we can fix things. let's begin for just one second

and recognize if we do nothing, the obamacare system, the so-called affordable care act is no longer affordable, that last phrase was not my word, that was the word of mark dayton, a democratic governor for my neighboring state of minnesota peer bill condon also said the craziest thing, it is not working. politically, it might be popular but when they see the democrats screw this up, we have too much to task as governors and from the president and vice president, they understand we have to fix this for every american regardless of who they voted for. we now have a partner willing to do that and give states the flexibility. we've been meeting for the last month or so, particularly this week in the white house with the president, vice president, and now as well with secretary price. we are going to have a process going forward that provides access to quality affordable air due to my health care that people get to make decision on, not the government. >> jenna: talk about that because we have certainly heard the complains about obamacare, we have covered extensively on

our program and our viewers really want to hear about solutions paired you have said in previous interviews including with chris wallace on fox news sunday that you are proud of the plan you've put together in wisconsin had because you're speaking to a national audience now, i'm curious what you can pass on to our national audience that is nothing that worked in wisconsin that you can see being part of the solution here? >> what we did and overall -- people want personalized patient-centered healthcare that treats people like a person not like a number or statistic. what we did is change things and so everyone and our state is covered under poverty under medicaid, so that's the medicaid program already there, we did not take the expansion under obamacare. for the first time ever, no democrat or republican governor had ever done that before. we covered everyone living in poverty, so the truly needy are taken care of. everyone above that, we hope to transition them to the marketplace, and i think we can do something very similar, understanding that every state is unique. that is why we are working together to bring states

together from states that took the expansion, ones that inherited, did not take it at all, we can make this work for every american, and we have to do that. >> jenna: what do you think about -- you say you like the way it's working in your state with the environment that you have had to work with. would you advocate for your folks in wisconsin to be able to buy healthcare insurance in texas or south carolina or california if that is part of the plan, whatlly hurt the program you have going in wisconsin or what it actually help the marketplace nationwide overall? >> it would help hear what we have done by helping people transition to the marketplace, some of those people were able to buy their health insurance and get access to it by purchasing it with a subsidy. now with the tax credit or some other incentive, they can do the same thing. if they had a broader base to do that, that would have to drive premiums down because there's a shared risk out there. what we are trying to do is give people the options paid there is a way of handling this. remember, people are scared. they are scared because of the failure of obamacare, scared over the years what would

happen, a lot of uncertainty out there appeared i certainly hear it in wisconsin, and talking to other governors, they hear it. what they want and what we are going to lay out giving deference to the president addressed to the congress tomorrow that by the end of the week, we will lay out what we have worked with the president come his administration on and hopefully work with the house and senate that will help provide that certainty that there is a next step. you've got employer-based plans or a plan through work, you're covered. if you're under medicaid, covered. but it care, covered pre-there's only a tiny sliver of people who picked up new coverage that they did not have before under obamacare, and for those people, they've driven premiums through the roof, we need to fix that. >> jenna: there's a lot of talk about health savings plan and tax credits, but in order to be able to effectively use that as a consumer, you have to have good knowledge of the costs appeared quite friendly, hate to admit this, but when it comes to healthcare costs, it is anyone's best guess, i don't know what a broken ankle costs versus a sprained ankle, versus having to go in for a flu vaccine.

it just seems like the costs for consumers, they need to be educated and manage their own healthcare, it is very difficult. how do you solve the cost question not only costs going up but knowing what anything costs and healthcare? >> the most important thing for everyone listening is just about everybody watching you today is not going to be affected by this one way or another because most americans do not have obamacare. limited numbers that do we will give them better choices and options, better alternatives. where the real cost come from's is better managing the medicaid population particularly for those adults working who do not have a physical disability, not aged, we take care of them and treat them well, we work with them while, they're not going to be affected either. it's working age adults who we used to say were on welfare and other public programs as well, were going to help transition them off government assistance and move them into a place where they have independence by empowering them to work again for the federal government for years, not just obamacare, but

overall they put in place barrier after barrier after barrier to employment, we can get them back to work again which is where we take care of the cost. >> jenna: we will be cut off by commercial, look forward to seeing the solution, thank you, governor. we will be right back with "happening now" ."

>> jenna: of new information now on the military with president trump said to ask for a $54 billion increase in defense spending as the pentagon presents a new strategy at the white house for defeating isis and as we are watching what is being described as real progress from the battlefield. a senior iraqi police commander saying troops have taken control of the western side of a key bridge in mosul, a city that is the last stronghold for the islamic state in iraq. we will take you to ben collins, yes or meet special forces in

former green beret who served three tours of duty in afghanistan. a lot to get to, the president talk a little bit about what he is asking for. just to put it in context for our viewers, $54 billion sounds like a lot of money, but those people out there it may say we need more money. what goes through your head when you hear that? >> i think it has to come down to where is that money going to be spent? we've had a lot of cuts obviously over the last few years. there is a lot of waste that occurs obviously within the defense department, so we need to get a handle on that, but most importantly, in terms of our readiness level. our air force is the oldest, smallest and oldest equipment we have had in our history. the navy is the smallest it has been since world war i. our army is the smallest it has been since the beginning of world war ii. and the personnel cuts that have occurred as well. there is a significant amount of work we have to do to get our personnel and equipment back up

to where it needs to be for us to be prepared for the threats that we are facing now and for the future threat. really, we're going to have to take a look at where will that money be spent? if we know we can spend it efficiently, yes, i believe more money will be necessary. >> jenna: how will we know if it's being spent efficiently? what sort of controls do you think need to be in place to make sure that happens? >> one of the problems i believe it is most government agencies and the defense department unfortunately i think it is very prevalent, is duplication of programs. not just duplication, trip vacation, so i think they're going to have to have an audit eventually to look and see how much money we have been spending on certain programs for platforms. look at things like the f35, i think people are going to go through this with a finetooth comb to try to find those deficiencies and have actual metrics of success. we actually get value for our dollar, did it accomplish what it was supposed to do, and if

not, we have to consider not throwing good money after bad. i think general mattis secretary is very familiar with that, certainly coming from the marine corps who has always had to do more with less. i think it's going to be put on the right track. >> jenna: there officials within the defense department essay lawmakers asking for my money are exaggerating the problem, that there are people exaggerating the issues, the military is just fine, quite frankly, you are shaking your head. i wonder someone who has been in the field that has had to deal with equipment and supplies, can you share anything with our viewers about how this is really affecting our soldiers? >> absolutely. there is a saying in the military. what the more you sweat and training, the less you bleed in battle." i can tell you that because of those cuts, our soldiers and sailors and marines and airmen have not had the funding and ability to actually train the way that they should fight. you look at from an equipment perspective, troops that have been known to be rotating body

armor, when units are going out into the field, they will go to the unit that just came back in and take their night vision goggles or their body armor or certain things like that. that is just not how they should be operating. there is always a struggle within defense spending and priorities. do we focus on the fight that we are in now, or do you focus on the fight we think we are going to have? jenna, we've been in this fight for the last 16 or 17 years. when three of our 58 combat brigades, only three of our 58 combat brigades are ready to deploy to combat, that is a serious problem. never mind the training that our men and women just have not been getting, and so the people that say it is not as bad as they think, they need to spend some time in iraq or afghanistan or actually go talk to the soldiers themselves. >> jenna: that is a good point. i just want to point out to our viewers that we are watching the white house press briefing, that is going to take place in just a moment. really quickly, we know secretary mattis is heading to

the white house with a framework of a plan to defeat isis. again, based on your experience, what do you help the plan includes? >> it needs to include the day after part. i'm okay with sending more troops, it sounds like come into a rock, loosen the rules of engagement that obama had that were so oppressive effectively not just not supporting our troops by getting them killed, however with iraq certainly and especially mosul, there's always the question of what happens next? mosul specifically as an example is a very complex city. you've got the assyrian christians, the kurds, she had, sunni, that is a very sunni-dominant environment, and she had led government, so what are we going to do what effectively we are able to kill them once they are? unless there is a plan for how we are going to support stabilizing that city or effectively just looking at the grounds for what the next war is

going to be, never mind what we start looking at discussing putting troops into syria, that is even more complex. to be honest, kicking in doors and killing the bad guys is effectively the easy part. i think we really need to think about what is going to happen after we kick in the last door, who is going to be responsible for saddling that region, and i do not want to see american troops on the ground allowed 2004 or 2005 responsible for maintaining that piece because that will be a problem. >> jenna: very interesting, more to talk about as we get more details on what the solution looks like, we will have you back into discuss it, thank you so much. >> jon: as we look at the empty podium in the west wing, we are awaiting the daily white house briefing such a star just minutes from now. we will bring it to you live when sean spicer steps to the microphone.

>> jon: as relations between this white house and the press who cover it remain pretty icy, we are awaiting the daily white house press briefing from sean spicer, scheduled to begin any minute from now. when it does, we will take you there live. >> jenna: now this fox news alert, several evacuations after threats to jewish centers across the country including a reported bomb scare at one jewish community center in wynnewood, pennsylvania. we are hearing reports of similar situations in delaware, new jersey, new york, north carolina, and indiana. just this weekend, dozens of headstones were desecrated at a

jewish cemetery in philadelphia. these threats have been going on for weeks. we will bring you more on this developing story as we get it. >> jon: now this fox news alert as we await that white house briefing that i just told you about, press secretary sean spicer is taking step to try to limit the leaks coming out of the west wing. reportedly, he is checking staff members phones for signs of encrypted messaging apps. this comes as some republican members of congress asked for a special prosecutor to investigate any russian interference in the u.s. election. joining is now marie hart, former deputy spokesperson at the u.s. state department. also a fox news contributor. so you know what sean spicer did. he had a meeting, a budget of his people were talking about stopping leaks, all of a sudden, that, the contents of that meeting, get leaked out. so he called them all in apparently and said, throw yourself phones on the table.

i want to take a look at them to see if you have a couple of phone numbers in them, for instance, probably specific reporters or publications, and also i want to see if you have any of these messaging apps. big picture, what do you think? >> i think this is crazy. look, this is the worst way to encourage more row upon your staff. when you basically call your staff an end go through their phones, makes them think you do not trust them. i may sound naive here, but press staff should have phone numbers of reporters and their cell phones. when it comes to the leaks of classified information, the fbi has responsibility for that. lo. that is appropriate. sean spicer should focus on briefing the press, figure out how to have a better relationship, and not spend time going through his staff's cell phones. >> jon: you worked in the obama white house peer the obama white house was notoriously angs that got out. how did you guys handle this?

>> we never would have done something like this. if we are talking about leaks, again of classified information, the fbi is looking into those right now. they looked into them when we were in office and we ask the fbi to undertake investigations about leaking classified information. every administration hates leaks, every administration has to deal with leaks, but for the white house press secretary to go to his own staff and go through their cell phones, that just seems like the worst way to have a good working environment and a white house they have all weighed limit already had reports of morale challenges so far. >> jon: as you pointed out, they are his staff, he is the boss, why not lay down the law and if he catches somebody doing something he finds to be untoward, bring the hammer down? >> certainly if he were to find out someone on his staff were leaking, he would be able to handle that situation. i think it is always really hard to find out who leakers are. this is something we've seen in the intelligence community, politics, sometimes your guess

about who is doing the leaking is not actually who is doing it. many more people have access to these tidbits of information than the general public probably thinks. my former boss used to say the best way to prevent leaks is to have a staff that is loyal and respects you. the last thing you should do to engender loyalty is to have your staff to show you their cell phones. it just seems bizarre. sean spicer should be focusing on helping the president get his message ready for the address where the nation tomorrow night. he should be focused on a million other things, let the fbi handled the leaks, and that is who should be doing it. >> jon: related to this, what much of the white house has been consumed with is are these leaks about russia, russia's possible interference in the past election and so forth. now there are calls on the hill even congressman terrel issa

from california, pretty conservative republican is saying that there should be a congressional investigation into this. should there be? >> yes, there should be. he was one of the members of congress who most aggressively investigated the obama administration, aggressively investigated hillary clinton. when he is saying we need a special prosecutor who is independent of people that the white house has asked to politically defend them on this, i'm talking about the intelligence community, this is serious. the longer the trump white house goes without responding to these calls that come as you say, republicans themselves are making now, the bigger they are making this a political problem for them. and a lot of us would say if you have nothing to hide, as they say they do not, then let the investigation do its work. at the end of that, you can say that the investigation has been done. but i think you're going to hear more republicans call for that, in that is a problem for the trump white house. >> jon: it is interesting to see the number of voices

growing. marie harf, former state department deputy sports do make spokesperson, thank you. >> jenna: there is a new report out about isis using drones on the battlefield peered by that raises concerns about security here at home. we are also awaiting the daily white house briefing set to start a few moments ago, and we will continue to watch the podium and when sean spicer steps to it, we will bring you there live.

♪ attention homeowners age sixty-two and older. one reverse mortgage has a great way for you to live a better retirement... it's called a reverse mortgage. call rfree information kityour with no obligation. >> jon: fox news alert, as promised, sean spicer's daily press briefing, let's listen in. >> press secretary spicer: allow him to take a few questions then resume their briefing and all of the fun that goes with it. without any further ado, director mick mulvaney.

>> thank you so much good i want to talk a few minutes about the budget blueprint that the president started to speak about this money with the governors, want to talk a little bit about what it is and what it is not and then talk about where we are in the budget process and what it looks like from here. first of all, what this is not for this is not a full-blown budget. that will not come until may, so you're not going to see anything in here that has to do with mandatory spending, entitlement reforms, tax policies, revenue projections or the infrastructure plan. this blueprint was never going to be that as i made clear during my senate confirmation, it is a topline number only. as for what it is, these are the president's policies as reflected in topline discretionary spending. so that is a true america first budget that will show the president is keeping his promises and doing exactly what he said he was going to do when he ran for office. prioritizing rebutting the military including restoring our nuclear capabilities, protecting the nation and securing the border, enforcing the laws currently on the books, taking

care of veterans and increasing school choice. all of that without adding to the currently projected fy 2018 deficit. the topline defense discretionary number is $603 billion, that is a 50 for billion dollar increase, one of the largest increases in history. it is also a number that allows the president to keep his president to undo the military sequester, topline nondefense number will be $452 billion, as a $54 billion savings, the largest proposed reduction since the early years of the reagan administration. the reductions in nondefense spending follow the same model as the president keeping his promises and doing exactly what he said he was going to do. it reduces money we give to other nations, reduces deposit's programs and programs that some we do not work. the bottom line is this, the president is going to protect the country and do so exactly the same with every american family has had to do over the last few years which is prioritize spending. the schedule from here, these

numbers will go out to the agencies today in a process we describe as pass back, reports back will be due in the next few days and we will spend the next week or so it working on final budget blueprint and we expect to have that number to congress by march 16th. that puts us on schedule for a full budget including all of the things i mention which does not include with all the larger policy issues in the first part of may. with that, i will take a couple questions. >> reporter: in order to get to your topline on the rest of the discretionary budget, if you are not going to touch veterans benefits, you need to slice about 12% off the rest of government. can you do that without affecting the services the government provides? >> that is part of what the process is this week. the numbers go out, in the numbers -- each agency gets a topline number along with recommendations about how we think we can hit that number then they can come back to us to say that it's a good way to reach that number, then they

could come back with other suggestions for that is what the process is. it is fairly unusual for us to be coming to you this early in the process, but we wanted to let everybody know exactly where we were. >> reporter: not talking about 2-3%, double digits is a lot. >> it's going to be a lot of work -- again, the president is going to do what he said, less foreign aid overseas in more here, that will be reflected. >> reporter: thank you very much peered one quick follow-up, that accounts for less than 1% of overall spending, and i just spoke with an analyst that that would not really take care of that budget increase, so how do you square that court delete my? also why not deal with entitlements, which especially republicans say they need to be cut? >> foreign aid, that is the same answer i just gave. yes, fairly small part of the discretionary budget but still consistent with what the president said. when eusebius reductions come you can

stay tying it back to words that he said, we're taking his words and turning them into policies and dollars, so we will be spending less overseas and spending more back home. i forgot your second question. >> reporter: on entitlements, why not address them? >> this is a budget blueprint what some folks used to call a skinny budget, it would not be at all unusual for a larger policy decisions including tax reform, revenue projections not to be included in this budget. >> reporter: so down the line, could we see some type? >> a full budget would contain the entire spectrum of the president's proposed policy changes. >> reporter: on rebuilding the military, can you talk more about the breakdown of fat, tell us a little more? >> no, i can't, where we are in this process is the number is going to the dod today, and over the course of the next ten days to two weeks, we will come up with those types of details. i have time for more one.

reporter mike you are going to increase the military budget, but asking the people in the defense department to say where can we cut or look to make sure we are spending the amount of money, is that part of the process? >> absolutely calm that is what second mattis and i have always thought, he wants to drive more efficiency into the department of defense, and all of that will be incorporated in our larger budget in may. >> reporter: so not just a blanket throwing money and you do what you do. >> reporter: does this account for the presidents spending in the wall, or the $54 billion money, does that include the wall? >> more likely a little bit of both. we do expect to include some money in a future supplemental for 2017 for the wall and the 2018 budget will also contain longer-term dollars for that. thank you all very much. >> press secretary spicer: thank you, director.

let me get back to -- we will get to that in a second. this morning, the president dropped by the national governors association meeting with 49 cover my governors from both states and territories, cabinet members and senior staff to talk about how to work together to restart the economyp the country. heat released a statement on his forthcoming budget proposal which he will submit march 16th as you heard the director mention p the president's budget will first and foremost keep america safe which means investing in both of our nations physical and financial security. we will rebuild the nation's military and increase the defense spending including increased funding for veterans and that will be matched by equal deductions and non-defense programs. the savings will look at outdated and duplicitous programs. there reductions in spending will be rational but also tough. with our nations debt spiraling out of control, we said we must take a look at the way we are spending taxpayer dollars. families across the country are

being forced to make difficult choices because for too long the federal government has not treated their money with the respect they deserve. the national debt exploded under the last initiation from $10.6 billion on january 20th, 2009, $219.9 trillion the day before -- sorry, those are both trillion. the day before president trump's inaugural. every child born in america this year will inherit an average of over $60,000 in debt. that, frankly, is too much. our budget will restore, and respect the taxpayers dollar about finding all the necessary programs to keep our country safe and prospering. this meeting with the governors was a continuation of a weekend of engagement and discussion between the governors in the administration. the president and first lady welcomes the governors last night to the white house to the annual governors ball come in yesterday the vice president had a very productive meeting with several governors. the initiation is proud to be working with the governors on rebuilding our nations infrastructure, reforming our healthcare system and putting americans back to work.

i know that obamacare in particular was put into place without a lot of input from governors. we are committed to consulting and including them on this and so many other subjects as we solve the nation's biggest issues together. later this morning, the president had a listening session with some of our country's leading healthcare insurance companies come interestingly yesterday on abc this week i'm a minority leader pelosi actually laid out a great outline of how to judge obamacare's success based on what it was supposed to achieve. she said "had three goals, one to lower the cost, the other to expand benefits, and the third to improve and increase asset do not access" he let's go through her criteria. lowering costs, this year while four tears of obamacare insurance plans are facing double-digit increases in average premiums. just to take a look at one set of premiums, for standard plans in the come 63% increase in tennessee, 69% increase in oklahoma, and a staggering 116% increase in arizona. on expanding benefits, in

reality, the new laws and mandates have led to mass cancellations of coverage, soaring out-of-pocket costs and declining enrollment figures. millions are choosing to pay a tax over buying the government mandated insurance. increased access, with insurance fleeing the marketplace, americans are facing a dwindling number of insurance choices with 17% of americans left with only one insurer option available in their exchange. insurers will be indispensable partners in the transition period out of obamacare into the patient's first plan the president will be working with congress to put into place. the president's plan will encourage innovation, modernize our healthcare system and provide immediate relief and ensure access to truly affordable care. this afternoon, the president had lunch with vice president pence and ambassador nikki haley come afterward he met with speaker ryan and majority leader mcconnell, and following that, he's going to meeting with secretary of state rex tillerso. the secretary is coming off a very successful trip to mexico where he was joined by secretary of homeland security kelly.

i'm sure the president is looking forward to discussing that trip with the secretary. also this afternoon, the vice president will speak to in its ordinary group of 60 presence of historically black colleges and universities, there will be a full readout of the event and the vice president will release his remarks following the event. we can also expect a meeting with the president with them as well. this evening, the present will have dinner with regional press affiliates who are going to be in town for the joint session of congress. while it is tradition for republic do not representatives to meet with the president before his address, this is the first time to my knowledge that the opportunity has been expanded to include representation from 18 regional outlets around the country. the present will also have the traditional lunch with the network anchors tomorrow by younger so-called big five networks, we've also invited telemundo, univision, cbn, pbs, c-span and tv one. tonight, the president looks forward to seeing his nominee for secretary of commerce, wilbur ross, confirmed by the senate. secretary designate has been an

important champion for the u.s. struggling industries and private sectors and pending his confirmation this evening, he will now do the same post on behalf of the american people what he has done in the private sector. assuming everything goes according to the plan and the senate tonight, we expect at his swearing-in tomorrow at the white house. also tomorrow the president will deliver his first address to both houses of congress. in his speech, the president will lay out an optimistic view of the country crossing traditional lines of party, race and socioeconomic status. as i said before, it will be the renewal of the american spirit p he will invite americans of all background to come together in the service of a stronger and better future for our nation. in addition to laying out the concrete steps the president has already taken to make the american dream possible for all of our people, he will talk about the bold agenda he wants to work with congress. this includes tax and regulatory reform toelief to hard-working americans and their businesses, making the workplace better for working parents, ensuring the families who have suffered under obamacare's

skyrocketing rates see it replaced with a patient-centered route alternative, making sure every child in america has access to a good education, rebg our military in fulfilling our commitment to veterans who we obviously owe a great deal of gratitude. you can expect the speech grounded firmly and solving real problems for every american. how can we make sure every american who needs a better job get one comeback may have kids trapped in failing schools get to better ones come how we can keep gangs and drug violence out of our neighborhoods and communities? the president will address the americans who have been waiting for help from their leaders for too long and let them know that help is finally on the way. with respect to the speech, we'll be having a background briefing sometime this meeting here in the briefing room. we will have additional details later in the afternoon. as you might already know, the department of defense presented its plenum area plan to the white house today to defeat isis. this plan had been delivered by second mattis and was currently briefing the principal on the options presented within today and seeking their input and feedback. finally, i want to note the

president continues to be deeply disappointed and concerned by the reports that further vandalism at jewish cemeteries. they cowardly to construction and for duffy this weekend comes on top of similar accounts from missouri and threats made to jewish committee centers around the country. the president continues to condemn these and any other form of anti-semitic and hateful acts in the deepest terms. from our country's founding, we've been dedicated to protecting the freedom of our citizens rights to worship. no one in america should feel afraid to follow the religion of their choosing freely and openly. the president has dedicated preserving this originating put his back pillar of our nation. i do not want to get ahead on law enforcement but i was asked about the story in kansas, the shooting in kansas and while the story is evolving, early reports out of kansas are equally disturbing. so with that, i would be glad to take your questions. >> reporter: there is a report this morning that you reached out directly to the cia director mike pompeo.

did you directly contact him and ask them to knock down "the new york times" story on the russian connection? >> press secretary spicer: if i may, let me walk through the entire timeline. i think it is important. as i mentioned a week ago, the near times published a story about what they called contacts between members of the trump campaign and russian officials. the fbi deputy director was in a meeting here at the white house that morning. after the meeting concluded, he asked the chief of staff to stay back a second to tell him that the report in the near times was "b.s." for viewers at home, they can figure out what that means. i will leave it at that. at that time, the chief of staff said thank you for sharing that with me, can we let other people know that this story is not accurate? throughout the day, they went back and forth to see what they thought was appropriate, finally came to the conclusion that they did not want to get in the process of knocking down every story that they had issues with. we then were informed that other people had come to the same conclusions, including at that

time come at chairman devin nunes who said i'd been knocking these down, telling departments, we share the number with him of reporters that contacted us. when they contact us and we state that is not true to the best of our knowledge, they would say to point to someone else i can substantiate this. i think we did a good job of saying, sure, we will share with reporters other people who have come to the same conclusions. i would not go into the specifics. i will say i think we did our job very effectively by making sure that reporters who had questions about the accuracy and the claims made in "the new york times" that we were pointing them to subject matter experts who understood whether or not that story was accurate or not. i think just to continue to be very, very clear on this, it was about the accuracy of the reporting in the claims that were made in there. plain and simple about whether or not a story that appeared in "the new york times" was accurate. individual after individual continued to say as far as they

knew, they were not. most of you probably saw chairman nunez's comments this morning. he was very clear number one that he reached out to us to say i've been telling people, and then we shared that information with him. but he came to us to share that he equally had that issue brought up to him. he was briefed and felt, quote, no evidence that the story was accurate. so, the answer is, you know, we have continued to give reporters information and sources that went to the accuracy or lack there of, of a report that was in a newspaper. and i think, you know, i think chairman nunes said it's interesting how we literally were engaging with the press saying, if you have a question about the sourcing on this, obviously when brought to our attention we said, it's not accurate as far as we know. but then most of you and your coll