>> join martha tonight. >> bill: show of force in the koreans today. a u.s.s. michigan, a nuclear powered submarine is docking in south carolina. the north celebrates anniversary with a large-scale live fire drill. things are moving on this as we say good morning. it's tuesday. welcome as we try to figure out what happens next. >> shannon: there is a lot going on. defense leaders going to brief the entire senate. top envoys are meeting in tokyo and american aircraft carrier speeds toward the korean peninsula. the time to act is now. he will send an armada. >> they must be ready to impose

more sanctions on north korean nuclear and ballistic missile programs. this is a real threat to the world whether we want to talk about it or not. north korea is a big world problem. it's a problem we have to finally solve. people have put blindfolds on for decades and now it's time to solve the problem. >> with that as a back drop benjamin hall is live in london to bring us up to speed today. >> good morning. the armada president trump spoke about is beginning to arrive and coupled with naval exercises with japanese destroyers, south korean distroyers and carl vinson. not only are all options on the table, they're very, very close. today the u.s.s. michigan. a guided missile submarine arrived in the south koreaian port as a show of force. the nuclear powered submarine is built to carry and launch

ballistic missiles and up to 154 tomahawk cruise missiles that close used in syria on the day that north korea celebrates the 85th anniversary of the founding of its military. today many analysts have said would be marked with either a nuclear device or missile. the north koreans carried out major live fire drills in the east of the country similar to those carried out in 2016 and said to involve around 300 to 400 artillery pieces. north korea has often threatened to use its artillery against south korea if attacked and they've said they can destroy most of that city. the envoy from north korea met his counterparts and said they did not believe north korea would work with them. >> we really do not believe that north korea is ready to engage us towards denuclearization.

we made clear among ourselves that denuclearization remains the goal and we very much want north korea to take steps towards that. >> again, reiteration from them that china holds one of the keys to this. other analysts we're speaking to say they're not sure what influence they actually have. nothing will make north korea give up those weapons. they've seen what other countries that do that and it doesn't end well for them. >> shannon: u.s. defense leaders preparing to talk to all senators at the white house. rex tillerson, jim mattis and other top officials will lead that briefing. unusual move for the cabinet leaders as they often travel to capitol hill to address congress. they rarely call senators, all of them at the same time, to the white house. coming up 9:45 senator lindsey graham joins us to talk about the briefing and the threats

from north korea. meantime possible break through on the budget and border wall raising hopes in washington that a government shutdown can be avoided. the white house backing off its demand that a spending bill include money to begin construction on the wall. a move democrats have called a non-starter. chief white house correspondent john roberts is live on the the president spending time on capitol hill? >> for a holocaust museum ceremony. his budget director, mick mulvaney, has been spending a lot of time talking with people on capitol hill as he tries to get a deal on a spending bill before the government shuts down midnight on friday. the main sticking point is the money for construction of a border wall. the president says he will get some money for the wall. he tweeted this morning don't let the fake media tell you

i've changed my position on the wall. it will get built and help stop drugs, etc. the president wants 1.55 billion in the spending measure this week to at least begin construction of the wall. he may have to take less than that but he does want enough this week to get started on it and then get more money in budget negotiations for fiscal year 18. here is kellyanne conway this morning. >> building the wall and having it funded remains an important priority to him but we also know that can happen later this year and next year. in the interim you see other smart technology and resources and tools being used toward border security. we should also remind the viewers that just since president trump took office illegal border crossings are down to a 17-year low. >> many democrats are saying if the border crossings are down

for a 17-year low what is the need for a wall but the president insists a wall is necessary for a number of different reasons, cross border drug trafficking and it will get built at some point. >> shannon: one of many things they're dealing with in washington healthcare and tax reform what's happening? >> healthcare not much is expected to happen this week. the tuesday group, the house freedom caucus was working on language along with the senate budget committee that would pass muster in the senate on an amendment that would make changes that could attract support from moderates and conservatives. i'm told it's very unlikely that it will happen this week. i'm also told the house appropriations committee is beginning to come together over this. it is likely it will go out to cbo for scoring next week. we could see a vote next week on that. tax reform the president will be unveiling some principles tomorrow. this won't be anything that looks like legislation and planning a big reduction in the

corporate tax rate. 15% and modified it saying maybe 20%, which would bring him in line with the house tax reform plan. but now it looks like the president is going to go for the full 15%. here is kellyanne conway again from this morning. >> the president has promised it will be the most dramatic tax reform release package in decades since president reagan and some say bolder than that. as you know the secretaries and the president are working hard on this and all options are on the table. these meetings are happening this week as well. >> even though he is laying out proposal. the house ways and means committee will schedule hearings as well. don't expect anything to happen until after august. don't forget the president, shannon, wants to get healthcare reform done. steve mnuchin got over his skis talking about doing it by august. september or october or early november for tax reform, shannon.

>> shannon: a busy summer. john roberts live at the white house. >> we'll be on the lawn. byron york, nice to see you in new york city. the wall was a big issue in the campaign. >> if there was one single issue associated with donald trump it was building the wall. call and response with the audience. who will pay for it? they would all yell mexico. this is something that is foremost in the president's mind as a campaign promise he has to keep. >> bill: he talks about drugs. he talks about human trafficking. you saw the tweet a moment ago. there were signals sent through the white house over the weekend they were flexible on this in the first place. or in the last week you could suggest to avoid a shutdown. >> there are a couple of problems with the president's promise and one a wall has never polled as well as, say, creating jobs or some other

part of his economic agenda. those polled better than building a wall. partly for that reason democrats are unanimously opposed. what the white house is saying now is we don't have to have all this money up front. they had always planned to use some existing monies that were already there for other purposes in the department of homeland security. >> bill: sure veil answer. >> they can do that to get this thing started. they don't have a blueprint and map and they're ready to roll right now. >> bill: he would argue democrats voted for a lot of it in 2006. >> and he would be right. the secure fence act that a lot of democrats, including charles schumer and richard durbin voted for. didn't call for a wall but called for double reinforced fencing along a large part, not all, but a large part of the u.s./mexico border. very little has been done today. >> bill: "wall street journal" report earlier today shows a

new poll suggests 57% of americans think the government needs to do more and that's the highest level that that question has ever given going back to 1995. what does that tell you? >> higher than 2009. the worst of the economic meltdown. donald trump did not campaign as a classic limited government republican. the government is going the stay out of this and we'll get out of your affairs. he actually talked about using it to help create jobs and help people. nobody should go without healthcare. this is something that donald trump has actually reinforced in his own campaign and it is a pretty big number. republicans on capitol hill will notice. >> bill: nice to see you again. byron york. 10 minutes past. shannon. >> shannon: former national security advisor michael flynn resigned in february after alleged contact with russian officials. lawmakers are getting their first sneak peek at classified information just ahead. the details that may have cost

flynn his job. >> bill: in a moment here the house speaker paul ryan said to be on the hot seat? is he? republicans look to score a win on president trump's 100 day milestone. is the speaker on the way out? kevin mccarthy will answer the question and clear up the air. >> shannon: president trump looks to make good on one of his campaign promises word for word. former member of the trump transition team marsha blackburn will help us dig into the president's tax plan. >> president trump: under my plan no american company will pay more than 15% of their business income in taxes. they offer free cancellation if my plans change. visit booking.com. booking.yeah.

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>> shannon: ivanka trump no longer just an advisor to her father but taking on the role of states woman. she is arriving in berlin following a personal invitation from angela merkel. they attended a women's and equality conference hosted by the g20. invitation seen as an effort by chancellor merkel to extend a hand to president trump after an awkward introduction when she visited the white house in march. >> we're working on tax reform and regulatory reform and job creation. this is something that on the tax side i've been meeting weekly with the house and the

senate on designing things. and we'll be coming out as the president said with more details on wednesday. >> bill: that was in the briefing room yesterday. treasury secretary. the white house will announce a plan tomorrow. we're already learning on one of the possible changes. a massive slash of the corporate tax rate. president trump said to be looking to cut it down from 35% to 15%, which would be massive by washington terms. tennessee congresswoman marsha blackburn is with me in studio. good morning. 35 to 15. does it sound right to you? >> that is what the president says he wants. >> bill: what would it do to the u.s. economy if he could get it? >> you talk to our friend art laffer, he sees a lot of good possibilities. it frees up capital for research, development,

expansion, for wage increases and that's how you get to the president's goal of jobs, jobs, jobs. we know it would be an important step but remember, bill, the president proposes and congress disposes. there are a lot of steps. >> bill: from your lips to art laffer's ears. he will join us next hour. that question will be posed to him. what about the fact the president suggested said his main concern wasn't an increase in the deficit. are you okay with that? >> bear in mind they call static scoring. you change a policy and they don't think it is going to change behavior. but what we know is dynamic scoring is what is needed because policy changes do change behaviors. and you are going to see that in the corporate and business marketplace. if you look at all of these

entities that file as corporations and you change what their tax rate s of course they'll make different decisions. >> bill: there is a big debate on this. he talked a lot about the corporate side. what's in it for the middle class? what can you tell us this morning that is good for those americans? >> it is good when you decrease the taxes on business what you are going to see is a decrease in product costs, an increase in wages, you'll see an increase in expansion. that's good. the other part of the tax component will be moving the marginal rate down to 35, 25, 12. the three rates that we're looking at. so you change those brackets and you move that rate down and that allows individuals to go in and reset their withholding because the goal is to make this retro active to january 1, 2017, when we get it put on the books. >> bill: the markets are looking at that, too.

you'll argue and art laffer will argue it's good for american growth. charles krauthammer was saying this last night. >> it would make his presidency. the whole 100 day thing is absurd. does anybody remember what obama or george w. or clinton? it only matters what happens in your first term. the key will be tax reform. >> bill: every person we talk to about this issue say you have to do healthcare first. do you agree with that? >> we'd like to do healthcare first because you have a trillion dollars in tax cuts that are embedded in replacing the affordable care act. so yes, it is important to get that off the books and we're very close to getting to a decision on how to move that forward. >> bill: you have to get through healthcare before you get the tax reform. >> that's right. >> bill: that's a six to

eight-month plan. is that right? >> no, i think what you'll see is healthcare go ahead and move over to the senate. at that point the house can go ahead and move forward on tax reform. it's important to realize we can walk and chew gum at the same time. we've already passed 213 bills out of the house this congress since january. the senate has completed work on 28 of those. so we're going to encourage our friends in the senate now that justice gorsuch is on the bench to pick up the pace and get these bills to the president's desk. >> bill: we'll see it on paper tomorrow i assume. have you seen it on paper yet? >> no, i have not. we'll all find out tomorrow what the president's vision is. >> bill: marsha blackburn, thank you. >> shannon: major flooding in the south as a storm knocks out thousands in the carolinas. where is that storm heading next.

>> bill: a conservative group suing the university. the university is saying why they stopped ann coulter from talking on campus. >> it's ironic it's the home of the free speech movement. i've never been shut down from speaking anywhere in this country. this will be a first. my bladder wake me up

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planning on giving my speech. i assume the same way i will be doing my job, they will be doing their jobs and providing a safe and secure location for my speech. >> shannon: ann coulter says she will make the speech at uc berkeley after the school called off her visit this week. a group of berkeley students filing a lawsuit against the university for the event. the university cite safety concerns. republicans say it violated the group's right to free speech. joining me to talk about that judge andrew napolitano, senior judicial analyst. i want to read a little bit of what the college republicans had to say. the case arises from efforts by one of california's leading public universities uc berkeley once known as the birthplace of free speech movement to stifle the speech of conservatives students who voices fall beyond the campus political orthodoxy. do they have a case?

>> it depends on what they can prove. uc berkeley is owned by the state of california. something is owned by the state has to respect the first amendment. that applies through the 14th to all the states. stated differently, uc berkeley cannot engage in viewpoint discrimination. it cannot stop ann coulter because it doesn't like what they think she is going to say but permit somebody on the left to speak because it does like what they are going to say. university administrators have a lot of discretion with respect to safety and courts are generally reluctant to second guess how colleges are administered with respect to safety of students and visitors that come to listen to speeches. but ann coulter is right on the mark in my view. she has the right to speak there because she has been lawfully invited by a group that has the right to invite her. that triggers an affirmative obligation on the part of the school to make sure the people that want to listen to her can do so. so the school can't permit people to drown her out.

they can't permit people to scare her away. can't scare her away. and the school certainly cannot stop her from speaking because it doesn't like her message. >> shannon: here is what a spokeswoman for the university is saying. the allegation contained in the cam mraint by young america's foundation that miss coulter is being prohibited speaking because of her conservative views. berkeley has been working to try to get a time for the visit and remains committed to doing so. if the government -- this university acting as the government will put a burden on free speech against their interest in what they say is keeping everybody safe, how will the court balance or examine those two competing interests? >> i'll argue it is not a case of balance but bias. a bias in favor of the right of students to bring whoever they want to that school, in this case ann coulter and in favor of the right of people who want the hear what she has to say to be able to do so. so the school has to provide a

forum, they can't permit her to be drowned out. it's called the heckler's veto when the audience drowns out the speaker and whoever owns the building, in this case the school, permits that to happen. they have a lot of work to do but they are the government. they know they have to accommodate her first amendment rights to speak and the students' first amendment right to hear her. they have to bend over backwards to allow it to happen. >> shannon: what if there is violence? there have been violent protests in berky. if she shows up, who is responsible if there is violence? >> the school is responsible if there is violence, not she. you can't blame the speaker because people in the audience want to get violent because they don't like her. this is an awful example we're seeing here. it happened right there in berkeley right where she is going to be. the supreme court has ruled very clearly it is not -- the speaker gets up there and commands violence and the audience follows that's a different story. if the speaker gives up there

and gives a speech that half the audience loves and half hates it is not the speaker's fault that the haters are there. the university's fault for allowing to haters to interfere whether verbally or with violence. >> shannon: there was plenty of interest in this now and there is a whole lot more. >> i think this will be resolved before the lawsuit. lawsuit like this takes a couple of years. she is going back there this week. >> shannon: all right. >> will we be there? >> shannon: our cameras will be there. >> bill: supporters of the second amendment putting the bull's-eye on gun control laws in california. the nra taking the state to court. how this case could have an impact nationwide plus this. >> the united states department of tresh tree's office of foreign assess control imposed sanctions in response to the april 4, 2017 sarin attack on innocent civilians by the

regime of syrian dictator assad. >> shannon: they slapped sanctions on the assad regime after the chemical weapons attack in syria. the looming deadline for the government shut down and fight over the wall. all that for kevin mccarthy joining us live next. >> democrats have made their demands. republicans understand how important it is to have this budget. the road can change in an instant. but with lightning fast shifts and dynamic track-tuned suspension, what the road demands, the gs delivers. experience high performance through high technology, in the lexus gs 350 and gs turbo. experience amazing.

it's time for you and your boys to get out of town. (laughing) left foot. right foot. left foot. stop. twitch your eyes so they think you're crazy. if you walk the walk you talk the talk. it's what you do. if you want to save fifteen percent or more on car insurance you switch to geico. hide the eyes. it's what you do. show 'em real slow. >> bill: it is a race against the clock in washington congress facing a friday deadline to pass some sort of spending bill or face a government shutdown this weekend. the white house now signaling it might be willing to wait until later for funding for the border wall. >> he won't insist his priorities get funded on the border wall increased security. >> that's not what i said.

it's not -- look, they are currently negotiating. we feel very confident that they understand the president's priorities and they'll come to an agreement by the end of friday. >> bill: kevin mccarthy with me now. welcome back to "america's newsroom." midnight friday. will this get done? >> yes, we'll continue to fund government and move forward and move forward on the priorities of job creation, border security and others. remember, bill, since president trump has taken office from his actions alone, illegal border crossings have dropped some within almost 70%. now we've got to make sure we secure the border all the way and that's what we continuing towards. >> bill: you're saying no shutdown of the government this week. >> a shutdown is not productive. no need for a shut down. we won't shut down the government and continue to fund

the government. the shutdown talk is by democrats. that's what their movement is trying to do. when you talk to members around here they say shutdown would be great. they'll blame it on the republicans. we can have government move forward but make the economy continue to grow. that's why we've been doing the work that's needed and we'll work with this president as we move forward. >> bill: as you mentioned the one issue getting the most attention is the border wall. president trump tweeted this last hour quote. don't let the fake media tell you that i've changed my position on the wall. it will get built and help stop drugs, human trafficking, etc. end tweet. is it on or is it out or is it delayed for now? >> we'll get a piece of moving forward on border security. here we'll continue to move where we don't have it to finish the entire project. one thing i'll tell you, since president trump has taken the presidency and his action

inside his own executive branch we've been able to stop -- but actually lower illegal border crossings. in numbers we haven't seen before and we're continuing to move forward. we have a number of members on the border touring it what needs to be done. secretary sessions was down there recently as well. we're committed to making sure border security happens. >> bill: when you said there will be a piece, define that in this budget. >> we're negotiating now. we'll get whatever we're able to get into the process right now and whatever we don't we'll come right back the finish it off. >> bill: can you put a dollar figure on it now? >> as soon as i get back to the appropriateors meeting now. >> bill: are you talking millions or billions? give me a ballpark. >> let's see where we end up. >> bill: now, would this be for a wall, would it be for a sensor, for drones? what would that entail. >> there are a lot of entails

with border security when you start off with the border officers themselves. making sure we have the work there. we have a new secretary in homeland security. what has he requested in the process? what does he need from the perspective? we're looking at all elements of where to go. in 2006 we actually passed a bill here dealing that democrats voted for. we want to now get the appropriations to finish off that process that we talked about doing back in 2006 prior to president obama. >> bill: the negotiations continue. that's what i take from your answer, right? >> yes. >> bill: on ward we go. political headline earlier today. react to this. the speaker, speaker paul ryan is entering a critical stretch under pressure to notch wins on repealing obamacare and funding the government. the title is ryan on the hot seat to deliver for trump. how high is the heat on speaker ryan today? >> look, speaker ryan is doing a very good job.

i wonder if they'll write the same story when we get government continued funding without drama and repeal and replace obamacare. will they write the story speaker ryan is riding high? that's what we'll continue to move forward and keep our promise what we said to the american public. i've been talking to a number of members what we've been working making sure we can repeal and replace obamacare. the american public will be excited at the changes we make in the bill and move forward. >> bill: is speaker ryan okay? is his job all right? >> no fear with speaker ryan's job at all. he has 100% support from this conference and you'll see it on the actions that move through this week and i think that's just more bluster. remember, let's not feed into what the democrats want. we're going forward on 100 days. what are the democrats bringing up? government is going to be shut down. not true. that speaker ryan's job is in jeopardy, not true. we'll continue to move through with all the rhetoric and get the job done for the american

people. >> bill: dated april 24th, yesterday. you are the author of this piece in the military times. how do you rate the military readiness of the united states today, sir? >> well, we have been under sequester. as we've been asking our men and women to do so much for the last decade they've been being cut. you look at the air force, they can't fly 50% of their planes, not able to be prepared because of a funding issue. when i look at the ability to be able to carry out the mission, these men and women go above and beyond anywhere. to be able to send 59 cruise missiles to hit within one minute, amazing. we have to do our job here to make sure their readiness is there. it isn't where it needs to be, long and far in between that. so we have moved an appropriation bill out of the house that hasn't passed in the senate. that's what we're dealing with this week. we'll make sure our military has the resources so our men and women are safe in combat and can carry out their mission.

>> bill: in a word in this dangerous world today, is the appetite in congress there today to fund it yes or no? >> yes, very much so because we've looked at what our men and women had to do and they haven't been given all that they need. they have actually been cut for the last number of years. >> bill: kevin mccarthy, welcome any time. majority leader for the house. thank you very much. 20 minutes now before the hour. >> shannon: we've got some big news from the corporate world. dale earnhardt junior will retire at the end of the current racing season. he has consistently one of the racing world's more popular drivers. a pair of nascar championships. he missed most of last season because of a serious concussion. a vocal advocate for sports-related brain injury. 42 years old. he is hanging it up. have you been to a nascar race? >> bill: i have not. >> shannon: we're going. >> bill: indy 500, yes, not nascar.

>> shannon: it will knock your socks off. a load of fun and i bet we see a lot of fox fans there. we're going on the road. >> bill: what a great career he has had and a contribution to that sport that some could argue unmatched at the moment. good luck. now the tough talk. could it turn into military action? we're watching this story with north korea. the white house inviting all 100 senators for a rare briefing on the rising tensions. we'll tell you what that's all about in a moment. >> shannon: a new hearing set on the alleged russian meddling in the election. people are set to testify under oath to the senate jude i shall naer committee. senator lindsey graham will be in the hearing and the threats from north korea. he joins us live next.

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>> shannon: inching closer to a

possible confrontation on the korean peninsula. north korea holding a massive live fire exercise as a nuclear submarine arrives in south korea. my next guest would support a preemptive strike on north korea if necessary. lindsey graham join us now. good to see you this morning, senator. okay, parse that out for us, preemptive strike. we need to do whatever we have to to obliterate the north's ability to come after us. would that mean us taking military action first? >> as a last resort. here is what i believe. i believe if they had a nuclear weapon on top of it that could reach america they may use it. do you think that's possible this guy would actually attack our country if he could? >> shannon: you and secretary kelly are the ones i've heard say you think it's possible before the end of donald trump's first term as president. >> i do. if you believe as i do and

general kelly it would be a mistake to allow him to have an icbm to reach america there are two ways to stop it. diplomacy using china to get them to stop developing it or use military force. i prefer diplomacy. i had dinner with the president last night. a great dinner. i am impressed with his commander-in-chief skills here. he won't let this nut job in north korea develop a missile with a nuclear weapon on top to hit america. he doesn't want a war anymore than i do but he won't let them get a missile. that's where they're headed. china needs to up their game to stop this before it's too late. >> shannon: the full senate goes for a briefing at the white house tomorrow. do you think they will be surprised to learn anything that you had a conversation about last night? what kind of updates will they get? all the big names will be in that room with you guys. >> we met with the chairman of the joint chiefs last night with senator, mccain, myself and the president. a terrific dinner. president trump's relationship with china is the key.

they have done more in the last two weeks to push back against north korea stopping coal shipments, even maybe using the u.n. to sanction north korea than they've done in the last 25 years. so it's clear to me that this president will not allow north korea to develop an icbm with a nuclear weapon on top to hit america. i this i the senators will hear that tomorrow night and i hope the senators will understand if nothing changes kim jong-un will have that capability soon. >> shannon: you and senator mccain have been critics of the president during the campaign and some spilled over into his post inaugural activity as the president. i understand you had peach cobbler last night. everybody hugged it out. how is the relationship? senator mccain has been very critical of this president and how he has handled a few things. what was the mood last night? >> really good. we talked about rebuilding the military. music to my ears to hear president trump talk about

giving the military what they need and do their job. he told a story having to approve helicopters going to syria. setting up a operating base in a town in syria. listen, general mattis, do you trust the young men and women on the ground and experts at what they do? he said yes. give them the ability to do their job. we'll have a bigger navy, army and air force and use it wisely and unleash the american military against isil with a no holds barred. if you're north korea and betting donald trump is all talk and no action you are making a serious mistake. >> shannon: we're hearing the senate judiciary committee, there will be a hearing may 8th to involve former acting attorney general yates, clapper and russia's potential interference in the 2016 u.s. election. what questions do you have? what information do you expect to get?

>> what's going on? i believe russia did interfere. they didn't change the outcome but clapper said a month or two months ago now that no fisa warrants were issued against any trump operatives. the "washington post" reports that a fisa warrant was issued against carter page. here is my question, did you know about that warrant? did you not consider carter page an operative of the trump campaign? maybe they didn't consider carter page an operative of the trump campaign because he didn't have much of a job there. so what's the deal here? was a fisa warrant issue? i want to ask sally yates the same question. you were at the department of justice and i want to know did susan rice and ben rhodes ever ask mr. clapper or sally yates to unmask americans that were part of incidental surveillance of foreign entities. i want to know did susan rice

and ben roads politicize intelligence. >> shannon: you asked the f.b.i. and doj for some of this information. were there warrant applications and fisa orders, have you gotten a response? >> no. that's part of the hearing. he said publicly -- clapper said there was no fisa warrant issue. the "washington post" reported there was one and what role did susan rice place in this, if any. it's important to find out. >> shannon: let us know if you get a response to that letter. >> bill: had a good time last night. nra has a sweeping set of gun control laws signed about the california governor jerry brown. we'll show you their strategy next in a moment in california. booking.com gets it. they offer free cancellation if my plans change. visit booking.com. booking.yeah.

>> bill: the nra taking aim at gun control laws in california. the first of a number of

lawsuits that group plans to role out against strict new gun control policies signed into law a year ago. we're watching that story from our west coast bureau, what exactly is the nra challenging in this case? >> bill, most states have become more gun friendly, open to conceal and carry, california has not. a very blue state. last year democrats passed six gun control laws following the shootings in san bernardino and orlando. it bans some 55 assault-style weapons, requires gun sales or transfers to go through a dealer so you can't give it to a child. it limits handgun sales to one a month. it prohibits the sale of cheap handguns, requires a 10-day waiting period on any sale. keeps a permanent list of gun owners. requires handgun microstamping and three new requirements that will be challenged in these lawsuits including a background check on all ammunition purchases, a ban on high

capacity magazines, those with more than 10 rounds, and it bans any rifle using a button that allows for a detachable magazine. you have the california rifle and pistol association. they want it declared unconstitutional crime liess the possession of guns commonly used by law-abiding citizens. >> bill: what happens next, william? >> we have one lawsuit filed. five more expected in the next week. the courts have already held that the second amendment generally does protect an individual's right to keep and bear arms but it is not absolute. states can enact in a reasonable restrictions. that's open for debate and why the group waited for the appointment of judge neil gorsuch to the high court. if these challenges get denied by the ninth circuit as many expect they would. it would go to the high court. his appointment is important to

gun rights groups. >> bill: we'll follow it from l.a. thank you in los angeles. >> shannon: a group of lawmakers getting a look at classified intel tied to former national security advisor michael flynn. so will the documents reveal any new foreign connections or ties to russia? can washington keep the lights on? the white house offering an olive branch on the border wall to help coax a spending bill. the president says his position on the wall has not changed. the latest on the funding fight next. >> a shutdown is not productive. no need for a shut down. we won't shut down the government. we'll continue to fund the government. which means we use less. three generations of clothes cleaned in one wash. those are moms. anybody seen my pants? nothing cleans better. put those on dad! it's got to be tide.

at red lobster's lobsterfestime. any of these 9 lobster dishes could be yours. so don't resist delicious new lobster mix and match or lobsterfest surf and turf because you won't have this chance for long. >> shannon: signs of progress as lawmakers work on a budget deal hoping to avoid a federal government shutdown this weekend. the white house confident the government will stay open as president trump offers a compromise to help seal the deal. welcome to a new hour of

"america's newsroom." >> bill: that's been their talk for the last week. we're confident it won't happen. we'll see. white house keeping all options on the table. the border wall may have to wait, we're told. the president suggesting it can wait a few months if that's what it takes to overcome resistance by democrats. now, the house majority leader kevin mccarthy 30 minutes ago said this about all that here in "america's newsroom." >> a shutdown is not productive in any shape or form. there is no need for a shutdown. we won't shut down the government. we'll continue to fund the government. that talk is all premiseed by democrats. we'll get a piece moving forward on border security and here we'll continue to move where we continue have it to finish out the entire project. >> bill: mike emanuel picks it up live on the hill. what's the white house saying about the importance of getting deal on the funding issue.

>> top republicans are expressing confidence there will not be a government shutdown. there will be a deal and those negotiations are ongoing. mitch mcconnell welcomed his colleagues back. bipartisan negotiations are ongoing. he talked about lawmakers completing their work on this government funding package soon. a key white house official also weighed in on the talks this morning. >> it's being discussed this week. all options are on the table obviously. the president and director mulvaney and others have expressed confidence the government won't be shut down and they can avert a shutdown. that's a huge priority. >> with republicans in charge in washington the white house doesn't want a government shutdown. he is not giving up hope long term on the border wall. >> bill: how did top democrats react to that? >> they're praising the president stepping away taking the wall off the table on these negotiations. senator chuck schumer talked about it being an obstacle in

the talks. house democratic leader nancy pelosi praising the president for this action. schumer is highlighting other ways to protect the border. >> a huge expensive wall still have to have border crossings and could still have tunnels dug beneath it. in reality, a combination of drones and fencing and other more sophisticated means would be a much more effective way to secure the border. >> pelosi is calling the border wall an obstacle to these negotiations that have been removed by the president. democrats are signaling more security at the border is a yes, bill. >> bill: kevin mccarty said here there will be a piece of it in this. they are negotiating. >> shannon: president trump's plans to reform taxes, that's taking shape. a major roll-out is scheduled for tomorrow.

treasury secretary steve mnuchin offering a preview in simple terms. >> on the personal side we're a middle income tax cut and simplification. business side we're about making them competitive. the tax plan will pay for itself with economic growth. >> shannon: good to see you this morning, art laffer. >> say hello to bill. >> shannon: he says hello as well. this is a major undertaking. is it smarter to roll out a big plan or put it out in bite size pieces. >> do it in bite size pieces. mnuchin's comment were perfect. it will pay for itself with more employment and payroll taxes and income taxes and sale taxes, property taxes, it will

pay for itself right away and that is exactly what should be done. the corporate tax cut done now individual income tax takes a lot more analysis because there are all sorts of issues that i think are phony but redistribution and allocations there, those things people like to talk about but there is no redistribution issue on the corporate tax whatsoever. get it done. create the growth and i think mnuchin have done the great job and the president on this and gary cowen great on this. >> shannon: there are skeptics on this plan including bernstein, here is what he said. these promises about all kinds of growth and investment that will be triggered by the tax cuts never appear and the record is clear on that. your take. >> he is completely wrong. he always has been and i don't know why he continues to do it. but if you look at the economic successes of the sim lus package which bernstein supported and said it would

create jobs. if you look at all the stuff that happened under obama they've been wrong all the time. it is now time to understand that if you pay people who don't work and tax people who work you get a lot of people not working. if you drop the corporate tax you'll make it more attractive to bring businesses back to the u.s. where it's more attractive to produce output and create american jobs just as trump promised on it. i couldn't be more excited on undoing the problems of the eight years of obama and bush w., by the way, but undoing that and starting to get real growth back in america like we had under reagan. >> shannon: what they'll try to do is put it through the senate on a reconciliation to need 51 votes. if they do that they can't have a measure that adds to the deficit after 10 years. some people say you take a hit on revenue. apparently the president said don't worry about it, let's get the tax cuts down.

a smaller cut now and permanent and a larger cut phase out in 10 years what's the better option? >> i would do the larger cut. it won't be phased out in 10 years. believe me, it will be made permanent. drop the highest corporate tax rate to 15% right away and it will start the machine rolling. once it's there you can't raise it again unless you want to lose every election you've ever looked at in your life. that's the way to go. it will be permanent. now bush w. did the temporary ones and led to the obama takeover. it wasn't because of the temporary ones. once obama got in there he stiffed it all the way. but in all honesty i think we need to get that rate down to 15% as the president has promised and that will really do a miracle for the u.s. economy. then we can make therm permanent two or three years from now if that's the rules of the senate. i think the senate can override even their own mandates and make it so that the 60% rule doesn't apply. >> shannon: there is a lot

going on on the hill. they say they want to get something going on tax reform and bipartisan agreement on that. >> democrats know the corporate tax rate is way too high and they would be with us on this and by the time we get the boom going, shannon, they'll be with us on a lot more stuff. >> shannon: we'll see. skeptics out there now. thank you for your time, sir. >> thank you, shannon. >> bill: right now members of the house oversight committee are for the first time reviewing classified documents on former national security advisor michael flynn's foreign contacts. our chief correspondent cath >> we've seen the ranking member of the committee. the highly security facility where they're looking at the classified records are at my shoulder. these records have never been

viewed before by members of the committee coming from the defense intelligence agency or d.i.a. and we expect they will shed new light on the foreign contacts of the former national security advisor mike flynn based on records released in march we know that flynn received in excess of $45,000 when he went to moscow in december of 2015 to attend anniversary event for russia today, the main propaganda arm of the russian government. while flynn was in moscow he kind with the russian president vladimir putin. other records released by the committee also indicate flynn received in excess of $22,000 for other russian contracts including one with a cybersecurity firm, bill. >> bill: is there a new connection to russia that we have found yet or not? >> here is what you want to pay attention to today. politico is reporting and we're trying to review new government

filings that indicate when general flynn got a contract with the turkish government in excess of $500,000, he gained that contract with the help of a businessman with strong ties to the russian government. in previous government filings flynn said he was told there was no russian connection but it doesn't seem to be the case. what matters is we had the trump campaign running on this idea of america first and what we know now from government filings is mike flynn was doing business on behalf of the turkish government and also we have these contacts with the russians as well. >> bill: we'll see how it goes. catherine herridge at the hearing on the hill. we're keeping an eye on wall street. check it out, folks, wow. knocking on the door of 21,000 for the dow, up 233 so far today. it passed 21,000 back in early march. pulled back a little bit and who can blame them, right? we've been booming since early

november. there it is, 21,000 back above it now. the earnings reports are coming out and keep in mind all this talk about tax reform and the massive tax cut in his words the president talked about last friday all that is now being baked in the goods here because investors do believe at the moment that the tax cut will bring greater growth to these companies and that's why you are seeing this thing go up and up. yesterday we were up 200 points, today 230. you could be up 500 points in two days. >> shannon: rolling back of the regulations, business-friendly environment from the white house. we get the tax reform tomorrow. we'll see. >> bill: 40 minutes in. not a bad day. >> shannon: not bad at all. will the tough talk turn into military action against north korea? the white house is briefing the senate. >> bill: ivanka trump arriving in berlin today after a personal invite from angela merkel. what's in store for her visit there?

>> shannon: and it's a final countdown to president trump's 100th day in office. democrats are still not over the election night results. newt gingrich says oh. >> they're so shocked they lost in november and can't believe they're out of touch because they're dangerous and their ideas are fantasies, therefore it's our fault and we're cheating somehow. i don't know why i didn't get screened a long time ago.

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>> he is not going to let this nut job in north korea develop

a missile with a nuclear weapon on top to hit america. he doesn't want a war anymore i do but he won't let them get a missile. that's where they're headed. china needs to stop this before it's too late. >> shannon: that was senator lindsey graham earlier discussing the rising dentions with north korea as u.s. defense leadings call with a rare meeting to brief the entire senate at the white house on the situation and all that as an american nuclear submarine docks in south korea. let's bring in john bolton,. good to see you today. north korea had this huge, massive live fire drill yesterday. we continue drills with south korea and japan. is this all ratcheting up to something or is it a lot of bluster? where do you see it resolving? >> there is a lot of theater involved on north korea's side but we're at a crisis point because we're very close to after 25 years or more of

development, north korea is approaching its objective of being able to have a nuclear eyes and put it on top of an icbm that can hit the united states. they've been after that despite repeated pledges to give up the nuclear weapons program. after nearly 25 years of a failed american policy that said we can find a way to talk them out of their nuclear weapons program or pressure them out. it was never going to happen. the same for them as the stability of their regime and trying it again for the 26th year won't work. that's why i think the president has made a significant change and the only question is whether it's too late. >> shannon: we have had so many deals and agreements and plans along the way leaving us with no good options at this point as many people have said. first of all i want to know, i think we have -- here we are. ivanka trump is live at the g20 summit. the role she is taking on in the white house and

internationally on the stage. we're looking in berlin as she is there as a representative. first daughter of the white house taking on an international event today as we continue with the ambassador to talk about international events here. as we talked about this is all led us to this place leaving us limited -- do you think china is a helpful partner ratcheting it down. we've seen actions that suggest yes but a bit of a mixed message. >> they've been schizophrenic about north korea for many years. the mistake we've made is thinking we can get the north koreans by pressure or persuasion. they won't do it. when we say give up your nuclear weapons, what the leadership in north korea hear is give up your regime and maybe give up your lives.

the fact is they'll never do that whether through pressure or voluntarily. i think the only answer is the reunification of the peninsula. china has been afraid of applying too much pressure fornorth korea because they think they'll collapse the regime and have a catastrophic reunfiletation. it won't be easy and take serious negotiations with china, there are more and more people in the top chinese leadership i think who understand that a divided korea is not in china's best interest. we're in a race diplomatically because i think any american president faced with an icbm that could hit the united states in the hands of this erratic irrational regime has to look at military action not as a first resort but they won't wait and see what side of the bed kim jong-un gets up on any given day. >> shannon: tomorrow the white house will bring every senator to the white house for a

briefing with secretary of state. joint chief chair be there, defense secretary and others. what does it say to you? >> i think it's very important that every senator hear directly from the administration from the top advisors what the state of play is with north korea. we've had eight years of an obama administration following a policy known as strategic patience, which is really a synonym for doing nothing. i think the president is faced with a necessity given that background to show to people in a classified setting but in a full and transparent way within that setting what we know about north korea's capacity. this is not wag the dog. this is a real serious threat and let's also be clear whatever capability north korea has, their long association with iran on ballistic missiles and nuclear weapons means iran can have it tomorrow with the right check. >> shannon: ambassador you outline something grim.

we need to know the reality of the situation. good to talk it over with you. >> bill: the last point is so relevant. 20 past the hour, a new concern of american forces in afghanistan. is russia sending weapons to the taliban? moscow has just responded to that allegation so we'll tell you what they're saying and what the u.s. can do about it in a moment. >> shannon: check this out. the mud on these jeans phony. the money is very real. what some people are willing to pay for faux dirty jeans and why the critics say this marks the death of authenticity. >> jeans for people who don't have dirty jobs but want you to think they have a dirty job. this is a world completely defined right now by fake everything. fake news, we don't trust anything that we hear. ♪ the sunt tomorrow... ♪ for people with heart failure, tomorrow is not a given. but entresto is a medicine that helps make more tomorrows possible. ♪ tomorrow, tomorrow...

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>> shannon: arkansas executing two more inmates on death row, both men getting lethal injections three hours apart on the same gurney. the nation's first double execution since 2000. arkansas put one other inmate to death last night and a final execution scheduled for thursday. four others have been blocked. >> we finally got to the point where not only -- not only will people pay $425 for a pair of jeans but they'll pay for polyurethane fake mud that are put on the jeans. my beef is nordstrom's, they don't value authenticity and once again as a country what are we -- what the hell are we doing? >> bill: former dirty jobs host

mike rowe. a cultural topic, did you see this last night with tucker? >> i watched a clip of it. i missed it last night. >> bill: nordstrom's is selling what appears to be beat-up or banged up or muddy jeans for $425. i know you are buying two pair, jonah. >> sure. >> bill: what does it say about america, do you think? >> i agree with mike rowe being ticked off and ick. it's not that people don't value authenticity but they value it and they think they can buy it. or that they can get it by playing acting at some sort of anti-fascist protest at berkeley or sort of pretend that this woman is authentically black.

lots of people are alienated and feel like they're cast adrift and they're trying desperately to have something authentic and real in their lives and shows how desperate and kind of pathetic they are they think they can buy it at nordstrom's. >> bill: you can manufacture your own life. that's the larger point you're making. >> no, i have think too many people think that they can. i think that this is something that is inherent in our culture. capitalism now as religion and the real sources of meaning in our lives tend to erode we try to buy with money meaning you can't buy with money. i agree with mike that is it grotesque but something going on for a long time. urban outfitters, they sell t-shirts that are nostalgic for the 1970s for kids born in the 1990s because they can't live off their own culture anymore. when you walked down the street

in america before you saw someone with a neck tattoo you crossed to the other side of the street. today that person might be a barista at starbucks. >> bill: the whole manufacturing of a person's life and how you project something that you want others to interpret. here it is again. >> this is a world completely defined right now by fake everything, right? fake news, we don't trust anything that we hear and part of the problem is because they're screwing with monopoly and asking us to buy a pair of pants that look like they were hung up and shot with a shotgun and pounded on a rock by the river. what are we doing? >> bill: that's a good line. chris farley is laughing right now. i think you can take it a step further. i think you can extend it to the social media lives that people are living now instagram for facebook. you can manufacture the life that you want to project toward others so they interpret perhaps the way that you are

living or the person you are in a way that you want to project it. in a world of social media, jonah, you can do that now. >> there is a lot of truth to that. we see in our line of work a lot of younger people who are rising up through the non-traditional avenues. they aren't reporters or writers but they have a gift for being a personality on youtube or snapchat and they're famous for being famous and nothing else. we saw this with the rise of paris hilton and kim kardashian, a lot of people are trying to manufacture their own lives and at the end of the day i think it's a really shabby and shallow approach to things. celebrity is not its own reward after a while. >> bill: i think with regard to the jeans it is like fashion, you know? what's white is one year is black the next. ripped jeans one year goes back to dark jeans another one.

it flips 180 degrees every time in order to sell more. >> like distressed furniture. for a while there distressed furniture was a big thing and sold it at pottery barn and i wonder what the third world guys in the factory in indonesia or india thought about taking this personal good wood table and scarring it up to sell to the rich americans, you know? >> bill: i've always put you in a shabby chic category. hats off to you, thank you, jonah. jonah goldberg reflecting on culture and more. thanks. >> shannon: ivanka trump taking her new role abroad speaking at a conference in berlin about how to boost women's economic opportunities. we're live from germany. >> bill: a strange illness lands elton john in the hospital. the latest on his health in a moment here. we'll try to figure out what's going on there.

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>> shannon: this is a fox news alert. first daughter ivanka trump speaking at a women's conference in berlin, germany early today. we're live in berlin to tell you more. hello, amy. >> well, ivanka trump came here at the invitation of german chancellor angela merkel. the two met last month when merkel visited the white house. they co-hosted a panel on vocational training. at that point merkel decided to invite ivanka here. there was criticism that ivanka trump had been seated next to one of the most powerful leaders in the world, her having had no political experience prior. but it is working out very well for everyone. merkel is able to find another

unorthodox avenue to president donald trump and ivanka gets to burnish her foreign policy credentials in the meantime. nevertheless, the nature of her role was discussed. listen to this question from the moderator. >> what is your role and who are you representing, your father as the president of the united states, the american people, or your business? >> certainly not the latter. and i am rather unfamiliar with this role as well as it is quite new to me. it has been a little under 100 days but it has just been a remarkable and incredible journey. >> she was also forced to defend some of her father's comments or attitudes towards women and at one point there was an audible hiss in the room. she had done homework on an

issue, women's economic empowerment. at the end of this panel today there was an announcement of an initiative, still rather unclear how it will all go, but it is to provide funding for women in order to start up their own businesses and it will be overseen by the world bank and then contributed to by a number of countries and possibly the private sector as well, shannon. >> shannon: amy kellogg live for us in berlin. thank you. >> we will engage with diplomatically but we are going to have to confront russia where what they're doing is contrary to international law. any weapons being funneled here from a foreign country would be a violation of international law. >> bill: defense secretary james mattis in afghanistan saying the u.s. and nato must confront moscow over reports they claim russia is providing weapons to the taliban.

jack keane, sir, you are a busy man lately. welcome back to "america's newsroom." moments ago russia said it is not the truth. what is the truth? are they helping the taliban that undermines our effort to bring peace in that country? >> most definitely they are. the iranians and russians are working together. life is full of ironese. when the u.s. went in to remove the taliban the iranians and russians were supporting us at the time. as we've been there for 16 years. they thought it would be over quickly. they -- both those countries consider afghanistan their sphere of influence and they resent the permanence the united states appears to have and why they're undermining us. what the russians are doing is providing the arms to the iranians who are funneling them into the taliban in the western

part of afghanistan and also in the south and other provinces. there are a lot of arms. >> bill: this is the wild west, right? >> yeah, it's assault rifles, rocket propelled grenades, sniper rifles, mortars, explosive device. a lot of arms are going to the taliban. a movement like that truly does make a difference and what russia is trying to do and you said it, they want to undermine our efforts so that we lose more political will at home and eventually our leaders just say we've had enough in afghanistan and go home. >> bill: i'm looking at that border between afghanistan and iran. as i said the wild west. it is wide open, right? >> yeah. >> bill: i don't know how you stop this. can we? >> we're not going to be able to do much about it to be frank but i think what we need to do

and what president obama failed to do is call out the russians, confront them when they are asserting themselves like this and violating international law, when they are propping up a war criminal like assad and refuse to pull that your troops out of the ukraine, call them out. that's what this administration is going to do. >> bill: let me talk about north korea. you know it's getting hotter by the day. so a group of u.s. senators sent to the white house. we want to see what you're seeing on north korea and the white house said we'll bring all 100 senators down to look at it. what can the white house share in this private meeting that will apparently happen tomorrow? >> in is not as unusual as people make it out to be. administrations have always -- you are giving briefings to legislators. normally it takes place over in congress because they have the

specialized information fast or so-called skifs and the white house has difficulty do that. they'll do it in the white house administrative building and debug it and it will give them a sense of what north korea is up to behind the scenes that are not in the public media. what is details of their ballistic missile program truly are in terms of what we know about it. give a sense of what their nuclear arsenal consists of and also i would hope they would talk about some of the things we're doing against north korea which are classified and also are having some measure of success and what is the strategy as well. >> bill: can you answer this question, general? is the white house making a case before these senators? >> most definitely. one, they want them to clearly understand what the danger is here. i mean, kim jong-un's father and grandfather brought nuclear

arsenal to korea to preserve the regime. but what kim jong-un has done is developing ballistic missiles to deliver them not just to south korea but bases and all aisles -- allys in the region but to the united states. it has gotten the world's attention. >> bill: thank you so much. jack keane, we'll call on you again very soon. >> good talking to you, bill. >> shannon: we're awaiting. we may hear from the top republican and democrat on the house oversight committee getting a chance to view documents, intelligence documents related to michael flynn who was forced to step down from the national security adviseor position with his inner workings with various parts of russia and russian

officials potentially. as they come out and talk at the microphones we'll want to hear what they have to say and we'll take you there live. also democrats bouncing back from the election night defeat or not so much? we'll discuss and debate just ahead. >> president obama reminded me yesterday, i have no idea who the leader of the democratic party is. is it him? anyone of like joe biden, bernie sanders, hillary clinton? i think the democratic party is having a real identity crisis.

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or 10:00 election night. >> shannon: leading up to the presidency, congress and the white house under republican control. we've seen a surge in grassroots activism that may be reviving the democratic party. we're glad to have you both here. between living in new york and d.c. we all see protests i think every weekend. a big one in manhattan this weekend. rich, it seems they're harnessing this. fundraising, energy, talking about resistance. are they channeling the rage appropriately to their benefit? >> that's the question. having an energized base is having a dispirited base. it is good for fundraising and organizing. none of these democratic candidates will suffer from funds. can question is can they calculate their self-interest?

the democratic filibuster on gorsuch, they were pushed into that by the base leads me to believe maybe not. also can they deal with the party's bigger brand problem? there is a "washington post", abc poll this week that showed just 28% of people think the democrats are in touch. even a lot of democrats think their own party is out of touch. >> shannon: to the point on the poll the gop and both president trump did better, doug, than the democrats did a farce as whether or not they're in touch with the american people. >> it tells you the democrats are out of touch and divided. but what they have managed to do is paper over their differences by the so-called resistance. if you oppose, oppose, oppose, you may not be projecting any new ideas but what you're doing is saying we're united to block this. fundraising as rich knows is critically important. they raised in excess of $8 million in the georgia race,

record fundraising for the dnc. so it's not a bad strategy if light of the very real problems the party has. >> shannon: senator bernie sanders who was nearly the democrats nominee the last time around but doesn't necessarily want to be associated with them. he said this weekend the model of the democratic party is failing. they've got to change, rich. how do they do it? >> i think they'll go in sanders directions on economic issues. go further left on the economy and trump with some of his positions in favor of more infrastructure spending opens up more of that space for democrats where i think the party has real trouble grappling with they need to move to the center on cultural issues even symbolically. they didn't give the hartland or midwestern working class voters everything the way bill clinton did when he won red states in the 90s. even barack obama at least held down the republican margin in some of these areas.

instead the party decided these voters will die. we don't need to pay attention to them anymore and that's a huge mistake. >> shannon: there was a lot of this conversation around who would lead the dnc. fiery speech from tom perez, it seems like they want to capitalize on anger right now. >> that's right. rich said something that deserves comment. i'm a capitalist. that may not be a great revelation to the audience but the democratic party is moving away from capitalism or even socialism. that's not the tradition of the democratic party when i worked for bill clinton was -- they're missing jobs. you can't revive and resuscitate a party unless you give a group that is under-emotion employed and under compensated hope for the future. >> shannon: there is a lot of pressure on president trump.

we'll watch for the tax package tomorrow. rich and doug. good to see you. >> bill: in a moment jenna lee is coming up. >> president trump having a major announcement. karl rove is here on that. new fallout from president obama's controversial iran prisoner swap. a new investigative report suggests the administration did not tell the whole story. the shocking revelations uncovered and what it means for national security now. it is quite a read. a national treasure discovered across the pond where two researchers happened on a 200-year-old copy of the declaration of independence. they found it in an office somewhere. >> bill: good for them. see you, jenna. president trump with a warning for canada saying turn about is fair play so what's this all about? a live report just moments away next.

>> shannon: elton john canceling his performance schedule in las vegas after acquiring a rare bacterial infection. he became violently hill last week and spent two nights in an intensive care unit. you never know when you travel, you are always taking a little chance. >> bill: we saw that story wan the best of luck. you don't expect to go somewhere and come home and face something as debilitating as that. >> shannon: concerts will be rescheduled. >> bill: here we go north of the border.

trump administration handing a new tax on canadian lumber imports. concerns about mounting trade war. the president angry about a canadian policy he said that pushed dairy prices down and hurt dairy producers in wisconsin. canada has made business for our dairy farmers in wisconsin and border states difficult. we won't stand for this. watch and tweet. mike tobin live in sheboygan, wisconsin. how does it hit wisconsin dairy farmers? >> we're calling it a trade war between the u.s. and canada the first shot was fired north of border and hit in america's dairyland. this is a farm in sheboygan, wisconsin. the dairy depends on ultrafiltered milk sold to canada used an ingredient in cheese. canadian dairy farmers dropped their prices knocking american milk out of competition. this farm and 75 others got a letter tr buyers saying as of fay 1 their contract wasn't any

good anymore. lost income is anticipated at $150 million. after seven generations, this family farm was looking at shutting down. >> we would have to have an auction and sell the cows. there is -- yeah, that would be our only option. >> wisconsin lawmakers, democrat and republican came together to say the canadian move was unfair but this family that owns this farm says there isn't enough time for politicians to solve this problem. you can never stop milking cattle. as of may 1st they'll have a supply problem. too much, dairy farmers will dump their milk supply and the price go down. >> bill: what's the response from canada through all this, mike? >> in response to the u.s. claim the actions on ultrafiltered milk was unfair canada's ambassador said the problem is u.s. over production. >> the challenges that the dare

industry faces in the united states and canada is a global market issue, not one caused by canada. >> however, in response to the u.s. imposing a tariff on the importation of soft wood lumber the minister of national -- they called the u.s. action unfair and punitive. >> mike tobin in sheboygan, wisconsin today. >> shannon: a critical week for president trump as he advances his agenda. how the white house and republicans are dealing with politics in order to try to push that forward.

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>> it's a bird come at the plane, it's a car. a company has come up with its first flying vehicle. it's hovering over a lake about a mile north of san francisco. it's said to hit retail stores by the end of this year. if i could take that on the road right now, i wouldn't want

anyone else to get one. >> you need one of those, right? speak out you need me on that hovercraft. >> we need two of them. have a great tuesday, it's beautiful outside. >> not here in new york. >> jenna: we are awaiting remarks from president trump on capitol hill. i'm jenna lee. >> jon: i'm jon scott. the president's speech will commemorate holocaust day. the first in a series of orders rolling out this week for american farmers. meanwhile, congress reports progress. now with the president has backed off the demand for order wall funding in the spending bill. the president also teasing a major announcement tomorrow on tax re