>> many thanks to guy benson, always good to have you. we are back on tv tomorrow at noon eastern. "happening now" starts right no now. >> molly: of fox news alerts from fox news global headquarters in new york, the dow hits record milestone as it crosses the 22,000 mark for the first time ever. >> jon: stronger-than-expected results from companies like apple helped put the dow over the top. president trump counting this major a accomplishment while making remarks at the white house. we are covering all the news happening now. the united states sends north korea and other would other would-be aggressors on message about its own military might. >> as a candidate i campaigned on creating a merit based immigration system. >> jon: president trump pivoting to immigration today as

the deadline looms for the republican-controlled congress to implement parts of the white house agenda. and fishtail caught on camera about the one that got away. not before this giant shark showed off some cool aquabatics. it's all happening now. we begin with a fox news alert, president trump speaking about immigration. outlining three areas for reform as the president signs legislation slapping new sanctions on russia. welcome to the second hour of "happening now," i'm jon scott. >> molly: i'm molly line. the president signing on the dotted line despite having some reservations on that measure, describing the bill as "seriously flawed" and saying it hinders his ability to negotiate. the bill also taking aim at iran and north korea as the white house lays trade measures

against china. here at home, the president also making a major announcement on immigration. mr. trump showing his support for a bill meant to curb illegal immigration and fix a broken green card system. >> as a candidate i campaigned on creating a merit based immigration system. that protects u.s. workers and taxpayers and that is why we are here today, merit based. >> molly: all of this as a fox news exclusive and the military program for immigrants has been compromised by what has been described as "foreign infiltration." >> jon: we have live coverage on that pentagon investigation. we began at the white house. >> there had been speculation for weeks of the president was leaning towards a veto of the sanctioned legislation, which had been overwhelmingly passed by congress. that speculation began to ebb, a change in recent days,

culminating with the president signing the legislation today, albeit with tremendous reservations. he said in the accompanying statement... the president's reluctance expressed in that statement may have signaled bad cop proponent to good cop-bad cop field. here is the vice president speaking about the sanctions bill. >> by signing this legislation, we are sending a very clear message that russia's destabilizing activities and support for rogue regimes are no longer going to be tolerated. our hope is that it will lay a foundation for better relations with russia.

>> entirely separately, the president was joined this morning by senators david perdue and tom cotton for the introduction of the raise act. >> this competitive application process will favor applicants who can speak english, financially support themselves and their families, and demonstrate skills that will contribute to our economy. >> sponsors of the raise act say it will create more competition, create more jobs and raise ways wages. they also signal a new direction for the white house under the new chief of staff john kelly. that things are getting done here at the white house under new leadership. back to you. >> jon: thank you very much. >> along the southern border,

mexico is going to pay because the wall is $12 billion. that's if you do out trump wall. this is not a wall they are going to drive their trucks ove over. make a beautiful, put a little design at the top, you can do that easily. someday you know what is going to be called, the trump wall, we have to make it beautiful. i would build a great wall, nobody builds walls better than me. i will build a great, great wall on our southern border. >> jon: you heard during the campaign, president trump repeatedly promising to build a wall along the u.s.-mexico border since the day he announced his candidacy. now his administration is taking steps to speed up the process. the department of homeland security announcing plans to bypass some environmental laws

allowing construction to begin along a stretch of border wall in san diego. does this mean they are ready to put shovels in the ground and get this thing going? >> not just yet, they are in the middle of some contracting issues, they are looking for prototypes to build prototypes out in san diego. of the current schedule has them breaking ground in late october. the reason for those waivers was really -- it's not necessarily about the environmental issues, the homeland security department said it's more about getting that speed in place. they fully expected to abide by all the environmental laws to the best of their ability but they don't want to have to go through the extensive studies and the extensive lawsuits that can follow from those studies. it's really about speeding up the process given that their schedule is already flipping a little bit. >> jon: 's is the president getting the wall going without

the approval explicitly from congress? >> absolutely, democrats have said if there is one dime of funding, we are not going to support any type of bill. the funding bill that has to fund the government at the end of september. if this is going to be a very challenging thing for the trump administration to get done, i'm not surprised they are taking some steps. but to get a 1,000-mile long wall is going to require congress and right now that is going to be very difficult. >> jon: even though democrats are not signaling that they want any part of this. >> that's exactly right. they have said they won't accept a dime, we are heading towards what is likely to be another shutdown showdown on this exact issue. even if the democrats are drawing lines in the sand, you have republicans saying they won't accept bill without wall money in it.

it's probably noteworthy that paul ryan, though he hasn't far as ghana some of those conservatives, he has increasingly been active on this wall issue. he tweeted out this morning "we need all wall." of the house speaker is all in on this issue as well. >> jon: this president was elected, everybody knew he was promising to build wall, perhaps his biggest campaign theme. if democrats hold up the budget over this issue, aren't they really playing with fire? >> it is risky for both sides. this was his number one promise, more than obamacare, this was his idea, he said it from the get-go, when he launched his campaign. he did say mexico was going to pay for and he says eventually they will pay for it. but the money has to be upfront.

that is the rub here, the trump administration is never going to give up on the wall idea and they are going to be pushing people like paul ryan and mitch mcconnell to get it done. >> jon: in the meantime, in our first hour we heard the president joining two republican senators in announcing the raise act. the president says it would be good for the immigrants coming in and good for the nation's economy, does it stand a chance of passage? >> the country is really divided on this issue, people do not want to see an increase in illegal immigration but they are very split on whether they want it cap to the same or decreased. i think it is probably a tough sell on capitol hill. it does expose -- the cut and the total numbers is probably a tough sell. you might have a better chance of trying to tighten up who we let into the country.

we let immigrants more than any other country, immigrants choose us rather than us choosing them. we literally have a program that gives away about 50,000 visas based on a lottery every year. those of sorts of things the president might have luck with. >> jon: the system hasn't been reformed and about 50 years, i think a lot of americans would be open to taking a look at that. thank you both. >> molly: now to a fox news exclusive. national security concerns over a pentagon program that offers an expedited path to citizenship for skilled foreigners who served in the u.s. military. one lawmaker is expressing fear about possible foreign infiltration. >> good afternoon, the defense department is not saying much about our reporting but a

spokesman there did confirm what fox news had learned. the pentagon's inspector general began investigating this program some 15 months ago and in late june of this year issued a report, the contents are still classified. the program is called military accessions vital to the national interest and it has produced many success stories. lawmakers on three committees told fox news, it is because of concerns over belated vetting, concerns about foreign infiltration and concerns about individuals now unaccounted for. the lack of discipline in implementation of this program several public and steve russell of oklahoma has created problems elsewhere. indeed it was russell, a retired

army officer who first spoke out about this. >> the program has been full of problems, to include foreign infiltration, so much so that the department of defense is seeking to suspend the program due to those concerns. >> pentagon inspector general's report it turned out was issue that very day. >> molly: is there any indication that mismanagement of this program has been exploited by our enemies in the war on terror? >> there is not all that we must caution our viewers, most of the details remain classified. analysts also precaution such vulnerabilities in american immigration programs of a kind of weaknesses that foreign terrorist organizations seek to exploit. >> there is no doubt about it, isis has always had the desire to use migration as a way to penetrate into countries, they have done that successfully in

europe because of open borders, mass immigration with no vetting. in the united states we haven't had any record of their penetration and certainly this program, this compromise, there is a possibility of that type of penetration. >> the reason the pentagon cites its relative silence is pending investigation. >> molly: fascinating report, thank you. >> jon: the u.s. testing and intercontinental ballistic missile of its own, sending a stern warning to north korea after it carried out at second icbm test. pentagon officials say it is kim jong-un's longest and most advanced test yet. next, we will be joined by an analyst who says we have not seen north korea's best.

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>> molly: new details on the u.s. test firing and intercontinental ballistic missile. airport officials say test was a long planned, but it does, as u.s. officials detect an increased level of submarine activity by the rural regime. let's bring in an analyst. let's start off with this information that they are seeing an increase in nuclear activity -- inactivity when it comes to the submarines. we have seen the successful missile tests which drew a lot of attention but now we are talking about what lies beneath. how concerned should we be? >> we should definitely be concerned. they fired for the first time from under the surface of the sea. we know that north korea has at

least one submarine that can launch missiles, that is a major advancement for north korea, because solid fuel permits them to fire without very much morning, that makes it a real threat to the u.s. that solid fuel missile looks like it came from china. >> molly: speaking of china, some breaking news this morning. our pentagon report or confirming that the chinese have conducted some missile tests of their own. they launched these mockup targets designed to look at the american system. what can we make of these recent tests? >> i think what it shows, because they are targeting thad, it shows the partnership.

we have seen so many statements from beijing, they will say they are worried about north korea's missiles but it is really perfunctory. what they show emotion about is south korea trying to defend itself. we know the chinese are outraged, they've posed a lot of economic sanctions. >> molly: the state department on tuesday, secretary of state rex tillerson told reporters that the united states and china are at a pivot point. where are we looking at these latest developments? >> we are at a place where we are going to see relationships deteriorate. it started in the last week of june, we know that the larger chinese banks, even the largest ones like bank of china have been named by the u.n. for money laundering for the north koreans. we are going to move against them and that is going to put the chinese economy and

financial system at risk and that means relations with beijing are probably going to go downhill very fast. >> molly: some sanctions have already been put in place, is that enough right now, do we need to sit down and talk about what could happen? looking down the road, any military action could be devastating for south korea and for american lives as well. >> i think president trump did that at the g20 meeting, that followed a series of actions i talked about. what i think president trump did in germany was basically say to the chinese, these are small things we did, we can ramp up the pressure. and with the failure of the comprehensive economic dialogue last month, we are seeing less and less reasons to cooperate with beijing. >> molly: if this escalates, if this does turn into something where military action may be

taken, what are the worst case scenarios? could we see china ultimately take sides and move in with north korea as we saw back in 1950? >> absolutely. if there were to be military action, there could be a nuclear exchange, the world's first, that would be the united states and north korea. the thing people don't talk about is what you just intimated, the chinese could come on the side of the north koreans. they did that in the korean war, it surprised general macarthur. we see this close partnership, the chinese have been supplying all sorts of equipment and probably technology as well to the ballistic missile program and also to the nuclear weapons program. this is a very serious issue for us. >> molly: thank you so much, and how come no one wants to see, we appreciate you joining us here today. >> jon: republicans are forging ahead in washington after a failed attempt to repeal obamacare. the president's agenda may have two weight, there is a serious

crisis approaching and with the house in session just 12 days from now, congress is running out of time. plus, you generally find them below the surface but check out this video, a 400-pound shark surprising sightseers with some impressive aquabatics. you don't let anything

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>> molly: you usually see them below the surface of the water but anglers anna fishing expedition off the coast of southern california got more than they bothered for when one of them hooked a 400-pound shark. it did not like that much and perform some serious acrobatics to break free.

spectacular video, the boat captain says he was shocked at the sheer size of it but eventually the shark didn't break free much to the relief of the fishermen who snagged it. >> jon: what a story to tell. right now republicans on capitol hill are signaling that they want to move on from health care after last week's failed vote. there are other big ticket items on the agenda including a crucial vote on raising the debt ceiling and lawmakers are running out of time. >> i don't know how you run saying something for seven years, if you give it to the house, the senate, the white house and when the voters give that to you you don't follow through on that promise. that's the type of mistake that follows through to haunt you in the future if you don't fix it. >> jon: let's talk about it with the former deputy staff secretary to president clinton and a republican strategist and

executive director of the southern california women's leadership association. the big issue coming up is the debt limit, you've got to raise the debt ceiling and congress is only going to be in session 12 days between now and the expiration of the nation's credit card. >> if you think about your own budget at home and thinks he got to pay for, you've got to pay your mortgage, tuition if you've got a kid in college. there are things you got to plan for later, maybe you want to do some renovations on your home or you want to plan a trip. if they don't raise the debt limit we could see a default on u.s. bonds we could really wreak havoc on our economy around the world. you also have to mention the funding of the government, the fiscal year is coming to a close. my wife and i just went to the grand teton's and yellowstone, it's beautiful, i hope it stays open. the problem congress has is in

dealing with those immediate time sensitive needs, that will push back consideration of things like tax reform, infrastructure, things i think all of us would like to see brought up, and they are running out of time before the midterm elections come upon us. that's one big things usually get done before everybody goes back into reelection mode. we are seeing congress go into reelection mode for 2018 without seeing any major legislation passed and running out of time to do it. >> jon: specifically when it comes to raising the debt ceiling, how confident are you that congress can get it done? >> i think it is all speculation, they are going to go back home and go to their districts and they are going to be met with people who are very frustrated that no legislation has been passed so far. it's going to make them focus on tax reform and make sure tax reform is passed by the end of the year. the speaker is insisting that it will be passed by the end of

2017, i do have faith that it will pass. it will be somewhat controversial because you have republicans or don't want to add -- who might not necessarily want to clean increase in the debt ceiling. i think the number one priority is making it tax reform so individuals and families all have the benefit and economic opportunity that will result from the tax reform. >> jon: tax reform is not as big to democrats as obamacare was. >> there is definitely room for bipartisan agreement on tax reform. i think the democrats have bleed out laid out some basic principles. chuck schumer has said they don't want to see all the democrats from the tax code go to the top 1% but i think there are plenty of republicans who agree with that. there is a problem i think we should point out for our

viewers, there was the expectation about republicans that by repealing obamacare, the ending of certain taxes would free up revenue to be treated in a tax reform scenario. now they don't have that. there is no change to obamacare, they've got to go back to the drawing board on what is going to pay for it. are you going to increase the deficit or pay for it by cutting something else? that is a new problem i think congress faces now since it seems like obamacare is here to stay and i think they've got to face that, especially if they decide to do what is called the budget reconciliation process. >> they have to do it, they have to do it through budget reconciliation because the democrats have been complete obstructionist. regardless of they have to come out with a plan with some principles, the bottom line is, they have not shown in any way, shape, or form that they are willing to work with republicans and that is part of the major problem here. i think republicans of had to go to reconciliation to get tax reform done and to be able to move forward.

>> jon: we are going to have to leave it there. thank you both. >> molly: the fight for obamacare subsidies, why it could eventually tie the president's hands. plus, the stock market hitting record high again. hitting the 22,000 mark for the first time ever. no doubt that is good news for your 401(k). >> the stock market hit an all-time record high today, over 22,000. we have picked up substantially, more than $4 trillion in net worth in terms of our stocks, our companies. we have a growth rate, a gdp which has been much higher than as you know anybody anticipated. on stage. e

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>> jon: president trump's hard-line approach to illegal immigration having an impact in texas, and not one everybody is happening happy about. construction companies are saying they are seeing a shortage of skilled workers. live with that from dallas. >> this is not a problem just facing texans, all across the country, construction companies say they are feeling the pinch and it is you, the consumer that

is going to be paying more down the road to make up for it. according to a recent survey from the national association of homebuilders, more than 56% of single-family homebuilders report nationwide labor shortage, more than 35% increase from just about five years ago. here in dallas-fort worth, dealing with about 50,000 fewer workers. in a good year, about 1 million new homes will be built in the united states. right now that number is about 800,000. analysts say there are several factors, construction and agriculture are among two of the largest industries which rely on migrant labor. business owners say droves of workers are fleeing. >> there are a lot of workers and documented that are leaving the stage, so i'm going to other states that don't have the

anti-immigrant sentiment and many of them going back to mexico. >> many companies have had to pay higher wages for skilled workers to try to lure more people out to the job sites. as a result, the median price of a home has gone up 30% in the last five years, well beyond the standard rate of inflation. it also means those projects are taking longer to complete in some cases, months and months are being added to the total billed time of a new home. >> jon: thank you. >> molly: president trump threatening to cut off subsidy payments between insurance companies that would help cover premiums for lower income peopl people. ruling from 16 states that oppose that idea could eventually tie the president's hands. let's bring in a fox legal analyst and a former prosecutor,

thank you both for being here. this is such a complicated topi topic, health care overall has been so challenging for people to understand and for our government to get moving on. essentially the president is making this decision and now it has been decided that the states can take action and go back to court. what does this mean, is that a big victory for these states, the democratic attorney general to file the lawsuit? >> there is a lot of traction, the states are being very aggressive because there is such financial fallout. the states have to absorb all of the health care costs. the insurers stepping in and improvising these costs, talking about 7 million individuals who will not have health care if the subsidies are removed. eventually it will be a fight between the federal and state government, historically that is what we are talking about.

courts have supported states when it comes to protecting their citizens and that is when the states are stepping in. >> molly: a big win for the states? >> it is a preliminary win, i don't think it's a big win yet. the trump administration is not taking the position as the obama administration, attorney generals are saying they wanted to represent the people who might lose their health care subsidies. this decision, which was only three pages, allowed them to argue that in court. even if they do win here, this will be appealed to the supreme court, so this is an early victory. >> molly: what is this mean for those people who are getting those subsidies? >> it is very significant, we are talking about $7 billion of the states are providing and

subsidies alone. they are going to be scrambling, some of them are on social welfare benefits, some of them are unemployed, so there are definitely some challenges that these individuals have. >> molly: 's descent to and worry about only if the trump administration takes action? >> if you are dependent on these subsidies it is very scary. if the house republicans win, the subsidies might go away. the goal at the beginning of this year was for congress to come together and revamp the system and then the case was going to go away and that is why the case was on hold now. >> molly: this came down from a three-judge panel, all obama appointees. here is a portion of the order. i will paraphrase. the states have shown that this

leads to an increase in the insurance prices, and for whom the states would have to provide care. it is a tangled web and it seems like they are trying to give the states that edge and it is all about money. >> exactly right, it really can be so devastating to the states if they then have to absorb the 7 million individuals that won't have health care. >> where these authorized in la law, will there be a replacement to make sure this problem goes away? >> molly: a lot of people are watching this, we appreciate your legal insight into this because it is pretty complicate complicated. >> jon: the nato convoy attacked in afghanistan in an area where u.s. troops are stationed. what we are learning about those caught in this ambush. plus, disaster strikes at school after an explosion trap some people inside. we hear from those who survived.

>> five girls with me, one in the counselor's office, we heard a loud explosion and got out as quickly as possible. it sounded like a large door slamming but the lights went out and the ceiling started to collapse so we knew to get out immediately.

>> molly: new information on the story breaking at the end of the first hour of "happening now" ," a gas explosn causing a minnesota school to collapse, fire crews rescue one person safely but they are still looking for two others. the private christian school located in minneapolis, officials say contractors were doing work on that building. at least five adults were injured and sent to the hospital, one of them in critical condition. >> jon: sad news from afghanistan, u.s. forces confirming to fox news that i nato convoy was attacked in southern afghanistan. it happened in an area where u.s. and international troops are based. the pentagon has confirmed to

u.s. forces are among those who were killed. conor powell live in our jerusalem bureau with more. >> afghanistan's violent summer continues today with u.s. nato convoy attack, this is one of the main areas where u.s. troops are still based. it these are the main areas. we've seen attacks in all three of those areas in the last few weeks. according to both witnesses and the pentagon saying that two u.s. soldiers were killed when the convoy was attacked by attala van car packed full of explosives. the attala band claiming responsibility for that attack. it comes just after isis launched an attack, wounding dozens with the suicide bomber there. this is all coming with a string of violent attacks as the trump

administration is debating a new strategy for afghanistan, a new strategy read a ready for review in the middle of july, we are now several weeks past that point. in the white house there are's discussions on what exactly that strategy should be. there are civilians in the white house who are looking for other options, concerned about committing more troops for essentially the same strategy that has been tried for the last 17 years. it is clear that the united states is not winning in afghanistan and that the afghan government is under a lot of pressure both internally and also the security situation is getting much worse, that something needs to be done there. as we have seen before, the question is what can be done there that would really turn the tide and secure upload

government there? >> jon: thank you, conor. >> molly: american infrastructure is a huge issue in our country. >> jon: today marks the opening of a very special bridge in minnesota, why folks there are calling it the miracle bridge. 80 percent of recurrent ischemic strokes

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>> hello everyone, i'm sandra smith. a busy afternoon, white house press briefing set to begin in the next hour after the

president signs the russia sanctions bill and simultaneously lasts congress for it, what is that all about? plus, the president unveils a major proposal on legal immigration. how is the policy affecting the construction industry? we will tell you. who is ready for 2020, people? democrat starting to float some names around, we will tell you who is who. >> molly: it took 50 years and faced countless setbacks but today the st. croix bridge finally open up outside of minneapolis. >> jon: locals called the mile-long span the miracle bridge. douglas kennedy will explain why. >> they've been wanting to build this bridge since the 1960s, residents here say they know how lucky they are. >> we are very excited, it's like a kid at christmas. >> you've heard of the bridge to nowhere, this was the bridge that was going nowhere.

they were trying to build this bridge for almost 50 years. >> lack of funding was a big problem, lack of cooperation between federal agencies and in some cases state and local agencies. jessie and ability to sometimes get along. >> the st. croix economic development corporation for years had advocated for the completion of the st. croix crossing, a bridge that connects eastern minnesota with western wisconsin. experts on infrastructure say it's a miracle the bridge was even built at all. infrastructure is very difficult to get funded at this point, in particular, bridges. >> it's a really difficult time right now, we've got a lot of needs throughout the country, a lot of functionally obsolete bridges. >> it wasn't just the $650 million price tag, the bridge had been opposed by major political stall work, like former vice president walter

mondale. two women from opposite ends of the aisle came together. >> in 2012, minnesota senator amy call bashar, a democrat joined forces with representative michelle bachman bachmann, a republican. >> at one point they decided to come together and lo and behold, the project occurred. >> when people come together they can produce some amazing things like this. back to you. >> jon: it's a good-looking bridge, it's an example of how a little political will and cooperation can get something done. >> in 2012, a required 100 senators all to agree to override the clean water act and

amy klobuchar was able to convince one of them. you can >> jon: interesting story, congratulations, i'm glad they got it built. >> molly: we are awaiting the daily white house news briefing, set to start in about 30 minutes, we will bring it to you live when it begins and also we are keeping a close eye on the dow as the markets make history again today. we will have more on the record-setting day coming up next hour. ♪ the great beauty of owning a property

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>> rescue crews getting quite a surprise off the english coast after saving a man who drifted a mile out to sea on a plastic toy dingy. >> this video was shot by the life boat crew as they were risking their own safety to rescue in this dingy. so small he had to dangle his legs over the side. >> the crew asked him why he was there. he thought he was going to be fine. >> life guards say this kind of incident highlights the need for more people to respect the water and stay off the toys. >> he's very lucky, that is for certain. well, thank you for joining us. >> "america's news hq" starts right now. >> sandra: fox news alert. president trump signing into law sanctions against russia, north korea and iran. and unveiling a new proposal to reform legal immigration. hello, everyone.

i'm sandra smith. president trump and several senators rolling out a plan to reorganize our immigration system. it would reduce the overall number of immigrants coming into this country every year. we have fox team coverage from the pentagon. but we begin with john roberts live at the white house where there is a lot going on. john? >> reporter: as always. just a typical day at 1600 pennsylvania. the president today threw his full support behind something called the rays act reforming americans immigration for a strong economy. this bill would change the way that the united states prioritizes the awarding of green cards, ending so-called chain migration that prioritizes family and vacation. instead putting ultrahigh skilled workers at the head of the line. here's the president. >> this competitive application process will favor applicants