looked gorgeous on tv one day and i was like what's going on? and i found out before anybody in the building she was two weeks pregnant. >> i've known you for so many years, you even bought me my wedding shoes. >> we are so happy four, carley. your baby boy is going to be beautiful. >> here is "america reports." >> all right, it is a major win for democrats and closely watched special election in new york. the race seen as a bellweather for what is ahead this fall. >> pat ryan put abortion rights at the center of his campaign, a victory in a swing district biden carried by fewer than two minutes back in 2020. analysis from kellyanne conway is just moments away. >> sandra: but first, a fox news alert, to the white house at this hour, where president biden has returned from vacation earlier today, set to make his

first major announcement since then, forgiving student loan debt for millions of americans up to $20,000 per borrower. and it's angering republicans and some democrats. hello, welcome, everyone. i'm sandra smith. another busy news day. >> john: i'm john roberts in washington. this is "america reports." we'll have the president's remarks as they happen during the next hour. republicans say the move will cost taxpayers billions of dollars and worsen an already historic inflation crisis. democrats say, though, that the plan does not go nearly far enough. calling for thousands more in loan forgiveness. reaction already mixed. >> the government shouldn't pay for it. if you go to school, you pay for it yourself. if you can't, get a scholarship. >> i think we can live with it. why not give the students a break, that's our future. >> if you go to school, you should probably pay for it. >> sandra: a california

congressman will react in just moments. >> john: peter doocy on the north lawn. you are getting more details what the president will announce a little more than an hour from now. >> peter: we are, john. just got off a background call with officials who tell us this is going to benefit 43 million borrowers, including 20 million will have the loan debt totally wiped out. 0 out the balances. education secretary says in a statement today we are delivering targeted relief to help ensure borrowers are not in a worse position financially because of the pandemic and restore trust in a system that should be creating opportunity, not a debt trap. but there are no opportunities in this announcement for people who didn't go to college, and that's very upsetting to the head of the naacp, says president biden's decision on student debt cannot become the latest example of a policy that has left black people, especially black women behind. not how you treat black voters who turned out in record numbers

and provided 90% of their vote to once again save democracy in 2020. the cost to forgive $10,000 in normal student debt, 20,000 for those that received a pell grant and paused everybody else for four months, is between 300 billion and 980 billion taxpayers dollars over ten years. 70% of the relief is going to be for the top 60% of income earners, so speaker pelosi says by delivering historic student, targeted relief, they can meet their kitchen table needs as they recover from the pandemic. last summer speaker pelosi suggested something like this is totally unfair. >> suppose your family was not -- your child just decided they want at this time not want to go to college but you are paying taxes to forgive somebody

else's obligations. you may not be happy about that. >> peter: she also said last summer a president does not have the ability to do this. something like this would require an act of congress. so, speaker pelosi has really changed her tune. john. >> john: a lot of thought this might end up in the supreme court. peter doocy, ahead of the announcement on the white house. thank you. sandra. >> sandra: let's bring in democratic congressman from california, do you support the move by the president? he's about to announce it an hour from now. >> i do, i think it's the right thing to do. there's no doubt about it, that low and middle income students have really been squeezed trying to pay off student debt through the pandemic, they have been waived, the interest as well as the pavements. and now it's time to move forward. one thing that has not been mentioned, some of this debt can be given when students go into

public service jobs needed. teachers, everybody talks about the shortage of teachers, the healthcare system and the like, even the peace corps. all of those service, public service jobs, we need them and some of this debt relief is targeted that way and i'm -- another piece here, why is the federal government making money, profit off of the back of students? we have introduced legislation called the student debt refinancing, there is every reason in the world to lower the interest costs on these. >> sandra: why not address that and why go the route of government spending in an era of sky high inflation that will ultimately fall on the lap of lower income americans, many of which did not rack up this debt, and they are going to be on the hook for it. >> hang on just a second. it's a very, very good question. actually, all of this begins

next year and rolls out over the years ahead. it does not all happen at once, it's not a pile of money in the pockets. most of these people that are going to be receiving these reductions are on the edge to begin with. so, it's not an inflation issue, although everybody wants to holler about inflation. this is really an opportunity for these people that will receive these benefits to be able to get their act together. if you get out into the countryside, in the cities and the like you'll find that people -- these young men and women simply cannot get their life together. they are delaying their marriage, they are delaying the opportunities as they try to pay off this debt. this gives them a necessary break. >> sandra: address the lower income americans who did not rack up this debt, did not graduate from college, who will see their taxes go up as a result, and will pay more in taxes in the form of higher inflation. because you are trying to say that more government spending will not lead to higher

inflation? is that correct? >> i'm saying that this benefit will be spread out over future years and therefore the impact on inflation is likely to be small or even negligible. they ought to take a look at the inflation reduction act as well as the infrastructure bills passed which have very significant increases and opportunities for educational, for job training, for apprenticeship programs, those opportunities are there. they are in that legislation. and yes, that is federal money, that is taxpayer money that will be spent directly on people that need those educational opportunities, and do not forget about the american rescue plan that pumped literally billions of dollars into the education system so that that education system could become modern

dealing with the reality of zoom and internet. >> sandra: sounds like you are identifying a lot of problems, none are addressed by waiving the student loan debt. rick scott of florida said like electricians and plumbers, we will make them pay more taxes to help doctors and lawyers. that is wrong. senator tom cotton is joining us, telling every college in america to raise tuition by $10,000, that's obviously a concern, governor larry hogan told bret baier waiving this debt is penalizing the people that maybe worked three jobs to pay things off right now. a final thought on this, more that could be done to address the education system in this country that it has gotten to this point where people are taking on debt that they can't pay for, they are college

educated and capable of getting a job that pays very well. >> well, first of all, you are correct and wrong at the same time. not all of these debts are accumulated in college. often they are in other programs that deal with specific job training programs. for those people, and certainly this is targeted for your low and low middle income families and you talk about teachers, absolutely, in this proposal there are specific reductions available for public service jobs of which teaching is one of the principal ones. i think we need to step back and stop hollering at each other and see the good that comes from this. these young men and women that will receive this benefit need it because they are in the lowest income, and we also have programs simultaneously in the inflation reduction act as well as in the infrastructure and in the rescue bill that provide

substantial amount of money for education, job training. >> sandra: those receiving the benefit sounds great, but the concern how we pay for it as a country during inflationary and high government spending. >> final thought, make who really benefits over the last several years, the major corporations that paid no taxes, even though amazon had a $5 billion annual profit. no taxes whatsoever. you want to talk about fair, let's talk about the reality of the super rich getting a trillion tax reduction four years ago. super rich. >> sandra: capped at 125,000 the president is about to say, 125,000, those making up to 125 per individual, no matter where you are in the country making up to 250,000 as a couple. we will await the president's remarks.

congressman, we do appreciate you joining us. thank you very much, sir. >> thank you. >> john: the corporate issue there always a convenient fallback position, but i still have not heard any democrat really effectively address this question of why should people who didn't go to college, didn't rack up college debt be on the hook for paying for other people's college debt. for those people it does not make a whole lot of sense. see how it plays out in the november election, too. the fbi is investigating an incident on video between border patrol agents and two migrants. confrontation happened on a beach in san diego just over the border from tijuana, imperial beach. the agents appear to tackle one the migrants, pinning him to the ground, other migrants taunt them. we don't know what sparked the altercation. the spokesman says the fbi review is to ensure an unbiased investigation. sandra. >> sandra: thank you. fox news is taking a deeper look at the tragic and sometimes deadly consequences of trying to

cross the southern border, and we want to warn you, the next image you will be seeing is disturbing. the cover of today's "new york post" shows a rescue worker retrieving the body of 1 of 2 migrant children who drown in the rio grande river this week. headily simply asking when will it end? all this as we get mounting reports of migrant deaths across busy texas border sectors, the data is difficult to confirm. they no longer make the information public. casey stegall is reporting live in eagle pass, texas for us. casey, what is the reason for that? >> sandra, good question, and it's certainly one that we have put to u.s. customs and border protection but have yet to receive an explanation, in fact we have repeatedly asked them since covering this crisis, in fact, a gao report in april recommended that border patrol make improvements on how that

data is not only collected but how it is made public and published as well, because it is not currently a part of the statistics made available to the public on its website, on the dashboard. some sector chiefs, like here in the del rio area of operation, do release data on their own so we can tell you that more than 200 migrant deaths have been recorded since october 1st, but we have no previous numbers for comparison. and again, that's just one sector. bulk of those drownings are in the rio grande river, just this week fox news has captured multiple victims pulled from the water in body bags, including a 3-year-old child. this as today five more busses arrived in new york city from texas and since the beginning of august now, governor greg abbott's office says more than 1,000 migrants have been bussed from the lone star state to the big apple. >> we noted that they were

hungry, thirsty and many had medical conditions. we actually had to transport a family with two children to a local hospital. >> new york city mayor has accused abbott and others of playing political football. >> sandra: casey, thank you. >> john: we are breaking down the race results from two of the country's biggest states, a special election in new york going to the democrats. what can that tell us about what might happen on november 8th? kellyanne conway weighs in just ahead. >> sandra: a new view of how paul pelosi's drunk driving bust went down in realtime. does the video shine new light on the crime and punishment? >> involved in a crash, i smell alcohol coming from your breath, i can see you are very unsteady on your feet. veteran homeowners, i've got great news.

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to get a free kohler® luxstone® bath wall upgrade. and take advantage of our special offer of no payments for 18 months. >> john: fox news alert, first lady jill biden testing positive for covid again today in what appears to be a rebound case. the first lady had been isolating in south carolina after initially testing positive. she flew from there to join the president on sunday, and will now continue in isolation in rehobeth until she tests negative. she is not experiencing a reemergence of symptoms and is doing well. same thing happened to president biden and he tested negative again a few days later. sandra, we will keep watching this one. >> sandra: we wish her well. we are getting a look at what happened the night of paul pelosi's car crash and dui

arrest. california highway patrol releasing dash cam video, pelosi trying to take field sobriety tests and admitted two drinks earlier in the evening. he pled guiltyy yesterday in court, claudia is reporting now from northern california. fox has been asking for the video for months, what else is it showing us now that we see it? >> hey, sandra, the dash cam video shows an intoxicated paul pelosi moments after he caused a two-car crash in napa when he drove home drunk from a dinner party on may two. california highway patrol released the video shortly after the 82-year-old pled guilty to one count of misdemeanor drunk driving, a second count was dropped and shows him grabbing on to the patrol car to keep his balance. his wife, house speaker nancy pelosi was back east at the time and he was driving alone. he told police he had only had a

glass of champagne and a glass of wine hours earlier in the evening, but when police asked him to blow into a breathalyzer, pelosi asked them if they know who he is. >> right, i understand who you are and i'm not here to try to do anything -- to, ok, will do. to draw any negative attention to you. if you've been honest with me, there's nothing you should be worried about. >> after he flunked a field sobriety test, officers cuffed him, took him to jail and a few hours later determined he had a blood alcohol content just above the legal limit. newly released pictures show pelosi's smashed porsche, and the other driver was hurt, too,

and pelosi had bad bruises on his hands. the plea deal will mean no more jail time, the d.a. says it fits the punishment in the case, and denies paul pelosi, now a convict d drunk driver got special treatment. >> sandra: now that we have had a glimpse of the dash cam video, thank you, john. >> john: democrats scoring a surprise win in a closely watched special election in new york state yesterday. pat ryan defeating republican mark molinaro, molinaro campaigned on inflation and crime, ryan campaigned on access to abortion rights. kellyanne conway, author of "here's the deal," and former adviser to president trump, and we look at the special election yesterday and the results with pat ryan on top, even though mark molinaro went into the

special election with about a three-point advantage, what does that tell us could happen on november 8th, kellyanne? >> not very much. he's hardly maya flores in texas, it went for obama, trump, and then biden. it had republican members and now democratic member also. ryan has to be there for about a hot minute during the recess and then defend the seat all over again since this is a democratic retention seat, john. the predecessor is now running for lieutenant governor for re-election in new york. but look, i think it does tell us one thing. that the democrats will probably look at this as a successful blueprint for running on mostly running on abortion, and probably a little climate, maybe throw some gun stuff in there, not in new york 19, they cannot do that. but the democratic party wants

to be the party of abortion that talks to women from the waist down, not up, where our eyes, ears, brains, mouths are, bring it. planned parenthood will spend $50 million, 5-0, on senate races. one thing caught me eye in the poll from last week, among independents, they fought crime, opioid cries, economy and the border by double digits. they favor the democrats on abortion and on climate, but single digits. so i think those independent swing voters across the country who don't necessarily turn out for a special election, they are going to have a say at the ballot box. right now aligning with republicans but republicans have to have a message to go from 15 seats and 50 seats in the fall is exactly that, having your own message. >> john: there's no question that turnout is much higher during a general election than a special election. what pat ryan tweeted about his

victory to your point. choice was on the ballot, freedom on the ballot, and we voted like our democracy was on the line because it is. we up ended everything we thought we knew about politics and did it together. republicans have tried to make this, the 19th congressional district a referendum on biden. democrats hammered abortion message and the supreme court decision. so will the midterms be, some of these races a referendum on biden ore the conservative supreme court justices? >> both of the above. not on the supreme court justices, no, i don't think this gentleman, he's in the house, he would not have been one of the democrats voting against the qualified strict constructionist constitutional loving justices on the supreme court. but as john, the answer to your question crisply is, both the above and other things. crime and public safety is the

sleeper issue, in 1994, i was a baby pollster working with newt gingrinch and barber, and crime and education -- excuse me, crime and the economy were the top two issues. look, voters are very primed to put an awful lot in the big voter caldron issues, ideas and impressions, individuals, stir it up and make their choice. the question i think for the voters this time is to what do you -- where is your intensity. so, agreement on the issues is one thing, but what really will make you crawl across broken glass and get to the polls. for a lot of people, it would be abortion. but pro lifers have a lot to be grateful for come november. they are grateful roe is gone, that abortion any time, any where, anyone, the democratic party platform is no longer the case and looks like mr. ryan, who sounds a little like a republican, small business owner, west point grad, not that it has a political cast to it, but served in the war, he'll

fight in washington. haughty, not humble tweet. >> john: 30 seconds left, find out from you in terms of issues to talk about in november, where do you think this cancellation of student debt is going to fall? >> it's going to anger a lot of the working men and women in this country who made a different career choice, welders, carpenters, hairdressers who could not afford to go to college, and the one who paid off -- and a major redistribution, no other way to look at this. you can use their own talking points against them and i think that one thing you don't do, john, when we are in, when we have inflation, when many economists say we are in recession, you don't start spending money like drunken sailors and that's what biden's washington doing. biden is going to be on the ballot everywhere in november. nobody wants to campaign with him. >> see what the reaction is to

the student debt announcement in 50 minutes from now. a lot of the blue collar workers now identify with the republican party, than the democratic party. great to spend time with you. >> sandra: cueing up the sound of the dad who went after elizabeth warren. who is going to pay me, i paid off my kids' debt. a hot bed of controversy. fairfax county, virginia, allowing a sex offender to work as a guidance counselor two years after his arrest. how does that happen? >> john: a lot in fairfax county when it comes to schools there. and millions off the hook for student loans. coming under fire from both sides of the aisle, and now fears the move will do the opposite of what the president says it will do. instead, widening the wealth gap

while driving up the debt. charles payne is here and sounds off coming up next on "america reports." >> most of this money will go to people in the upper 60%. every day, hard working americans will have to pay, basically bail them out.

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>> sandra: president biden plans to officially roll out his student loan handouts next hour, top of the hour. critics say it would mainly help people at the top and add to historic inflation. more than half of outstanding student debt is owned by households with graduate degrees, people likely to eventually make higher salaries. bring in charles payne, host of "making money" on fox business. charles, i'm digging through here, pen wharton look for responsible budget, no one is deployed to dig through this and predict models and the outcomes as a result of a policy decision like this saying this is a good idea. if there is, show me.

because we have not seen it. not to mention the only polling that has been done on this shows most americans are not in favor of this. >> elizabeth warren says that president biden helping people struggle with rising costs, encouraging to buy homes, start businesses, start families and narrow the racial wealth gap for borrowers. it has to be the worst tweet i've seen in my life. i've never seen so many falsehoods and lies. it is really a shame. what the white house is going to do, what you are going to hear president biden saying. he's going to say listen, we are cancelling these debts, it's going to impact 90% of the relief for people earning less than 75,000, and that's the trickery here, right. for the most part, we look at different types of degrees, people 25 to 34 years old, even with a masters degree in that area, your average, median income is 69,700.

so, yeah, of course right now if you are 33 years old and making 70,000 a year, that's pretty good money. you are on your way to making 2.8 to $3 million a year. that's the trick part of all of this stuff. messaging part of it. the reality, though, you go down the scale, less than high school grads are making 29,000. they get squat. they get nothing for it except high grocery bills, healthcare bills, tougher way of life. people making 29,000 a year get nothing but more misery out of this. yet there was a poll that came out, a survey, and it was one part that struck me, called light evaluations. people in the country, a feeling of prosperity was announced, it was in freefall. but people, the percent of americans who said they were suffering. 5.6%, sounds like a low number, that's the highest since they have been doing this thing, the absolute highest. we are heading in the wrong

direction, every day we debate how much more inflation and then after that how bad recession will be. we are looking at the evil 1-2 punch of economic misery and all authored by a white house that keeps lavishing all these amazing financial benefits on the most successful people in america, the folks on the golden path to enjoying every, all the benefits this country offers. i say congratulations to them, but why should they keep getting the taxpayer money from a cab driver or someone who could not go to college but maybe started a business. why the separation, and it's a new cast system. it is a new cast system. i'm telling you, it is -- this is the greatest form of elitism i've ever seen. i've never seen a president this boldly say i'm going to put one group of americans above everyone else, and by the way, everything president biden has done has lined the pockets, child tax credits for folks making 300,000, solar panels, e.v., the numbers go on and on,

billions and billions of dollars. it's embarrassing. >> sandra: and what i continue to say, is this, and the question should be to those who support this, like the congressman who joined the top of the hour and appreciate him doing so, an economic decision or political one? if it's an economic decision that will result in better growth and a better overall economic environment for every american, turn out the model, show us, show us the results. show us the growth that will result, and show us that it's not going to overall raise tuition. i had to pull the quote a second ago, reagan's education secretary bill bennet said in 1987, he wrote increases in financial aid in recent years have enabled colleges and universities likely to raise their tuitions, confident that federal loan subsidies would help cushion the increase. are we doing anything to prevent that balloon from furthering after we make this policy decision? >> when president obama kicked

out the middleman, and it's far worse right now. it's political. >> sandra: charles, i know you are going to have more on your show. >> you have to watch my f-block. >> sandra: back half the hour for charles payne. >> john: before that, san drashgs you have to watch this. twice charged sex offender allowed to work as a school guidance counselor for nearly two years after his first arrest. he was working at a middle school in fairfax county, virginia. mike emanuel here with details. how in the heck does this happen? >> mike: police tried notifying public schools by email in november of 2020 and later learned it never got to the superintendent. the guy's name is darren lamar thornton, arrested in virginia near richmond, for solicitation of prostitution from a minor in november of 2020. he was convicted on march 11 of this year and put on probation. then arrested a second time on june 9th for the same

solicitation of prostitution charge. police notified fairfax county public schools by phone on june 10th. he was placed on unpaid leave a week later. virginia authorities are looking into it, the virginia department of corrections is opening a full investigation regarding this incident and the department is prepared to take any and all necessary actions following the results of the investigation. virginia attorney general has many questions about what went wrong with this case. >> why did a magistrate decide to let this person out on an unsecured bond, serve no jail time, why fairfax supplied unworking email addresses even though the chesterfield police department called fairfax and asked them, how do we notify you, there was an arrest made. >> dr. michelle reed is the new superintendent, she started her job on july 1st. she wrote to parents, i want to make this very clear, this

entire situation is unacceptable from any perspective. we are deeply concerned how it happened in one of our schools. it has many parents alarmed how this guy was allowed to keep working in a school due to a communications breakdown, john. >> john: so what jason was saying, unworking email address, or did it just not get passed on? >> evidently the cops called and said we have to alert you guys about this, how do we do it, and they said here is the email address, and they tried the email address and it apparently never got through, so somebody misspell the email address, or a typo, but if there was no follow-up, there was no, you know, seemed like laziness on both sides, to be honest. >> john: we'll follow this and see where it goes. clearly it's a matter of huge concern. mike, great to see you. farmers in north dakota taking on the big guy, china. why residents in grand forks are now taking their own city to court. it all leads back to beijing.

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>> sandra: folks living in north dakota rallying together to block a chinese company from building a corn mill in the town, just 12 miles from an air base raising all sorts of security concerns. more from grand forks, north dakota. what steps are people taking to try to stop these people from moving in? >> hi, sandra, here in grand forks, north dakota, they are trying everything to stop the plant, thousands signed a petition and many people have signed like this up in yards saying stop them from moving into town. not just a local concern but a national security concern. a dozen miles over my shoulder is the grand forks air force base. this is the map to show you where everything is in grand forks, an hour from fargo.

this controversy has been growing for months because the chinese company bought the more than 300 acres of prime farmland last year. they say they have ties to the chinese communist party. now investing $700 million to open that massive corn mill here. the plant would be just 12 miles from the grand forks air force base, home to top secret drone technology. a federal review filed in may found red flags with the project and the community is fighting back, even filing a lawsuit against the city. >> grand forks, water pollution, smell, traffic and safety, in terms of nationally, security. everyone should be concerned nationally about the security issue. >> and it's not just here in the dakota, sandra, all the way to washington, d.c., where senator kevin kramer tells me he has major concerns of chinese

espionage, he says it would never be allowed if the tables were turned. >> you and i could never go to beijing and find some land we could buy, especially in close proximity to a chinese military base. >> fufeng the largest in the community, it would bring in 200 jobs and millions in tax revenue, at least 1 million in the first year alone, grand forks mayor tells me if the federal government finds a security threat, the deal is done. >> we would love to see the corn mill, you know, the china thing makes it more difficult for us. >> right now the federal government is reviewing the plan to see if there is a national security threat and the company didn't want to comment. sandra. >> sandra: alexis mcadams on that, thank you. >> john: a california district attorney is blasting 0 bail policies, he says they did not

work in his county, with the majority of suspects landing back behind bars. we are joined with the data to prove his point. that is coming up next. >> sandra: the battle over transgender athletes in women's sport, golfing world, hailey davidson wanted to join the lpga. caitlyn jenner will join us on that. el better... by treating the multiple symptoms of psoriatic arthritis. don't use if you're allergic to cosentyx. before starting...get checked for tuberculosis. an increased risk of infections some serious... and the lowered ability to fight them may occur. tell your doctor about an infection or symptoms... or if you've had a vaccine or plan to. tell your doctor if your crohn's disease symptoms... develop or worsen. serious allergic reactions may occur. watch me. ask your rheumatologist about cosentyx. ♪ limu emu ♪ and doug. [power-drill noises] alright, limu, give me a socket wrench,

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>> john: a district attorney in northern skaern nouned california oof >> jeff is the district attorney for yolo county, california, and the president of the california district attorney's association. jeff, great to talk to you and finally get some statistics and hard numbers to put with the perception that a lot of people across the country have. in june of this year, your office started tracking by offenders released without bail went on to commit new crimes and what you found. 595 individuals released, 420 were rearrested for new crimes.

70.6% recidivism raid, and 23% arrested for violent crimes, murder, attempted murder, kidnapping, robbery, domestic violence. what did you think when you saw those numbers? >> it's a staggering number, i mean, frankly it shocks the conscience to think that many new crimes were committed by the people released on 0 bail, and i thought about the new victims created as a result of this policy. >> john: how is it those people ended up on the streets in the first place? purely the guidelines of the california judicial county, the way that they were charged? what led to them getting back on the streets? >> during 2020 and the first part of 2021, under a mandated 0 bail policy because of court actions and local actions as well, not my choosing, but 0 bail was the rage in california during the pandemic, and as a result, you had people being arrested for all types of crimes, including felonies, and

being immediately arrested into the community with no supervision, no oversight, no mandated treatment, no ankle monitor, no conversation with the victims of their original crimes. they were just being dumped out of the jails and that's the number that we have, 70% reoffended. some within days, most within six months. >> john: it's stunning when you look at the statistics. judicial council put in place in 2020, and rescinded in june of the same year, and yolo ended it in june of 2021. and you see the policies in other states across the nation and offenders taking advantage of a revolving door of justice, committing crimes, released on 0 bail and recommitting crimes. you know, as a district attorney, are you frustrated in seeing what some of your colleagues and people in

positions of leadership are doing? >> it's really outrageous to me, to watch this happen around the country and places like new york, and other states, and right here in california this movement by certain people to make 0 bail the law is ongoing, as we speak there are conversations going on in the state capitol which is right next to my county in sacramento where they are trying to put this into the law again, even though the voters rejected it in california, rejected 0 bail in 2020. this is bad policy, it's a get out of jail free card. people are getting really hurt, even murdered because of these policies and we just need to scratch it. this is not a good policy. >> all right. we'll see if the numbers now, now that we have some hard figures have any effect on other jurisdictions across the country. jeff, thank you for joining us, appreciate it. >> sandra: all new at 2:00, we await president biden's remarks

on his plan to pay off up to $20,000 in student loan debt for some americans. senator tom cotton says the plan is disastrous. and robert wolf will debate the merits of the forgiveness. caitlyn jenner on women's sports and more as "america reports" rolls into a brand-new hour. ca. air force, pararescue, five years. home values are at record highs. the newday 100 va loan lets veterans borrow up to 100% of their home's total value. and take an average of $60,000 cash. 25% more cash than they'd get at a bank. united states marine corps, aviation maintenance, five years. that's why veterans from every branch... united states army, military police, eight years. ...from every specialty... marines, infantry, four years.

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>> john: begin new at 2:00 with breaking news. moments away, president biden set to give remarks at his highly anticipated and controversial plan for student loan debt. he calls it forgiveness. critics say it's nothing more than a handout. john roberts in washington, good to spend hour two with you. >> sandra: you too, john, a lot of news this hour. welcome back as "america reports" rolls into hour two. analysts are looking at this saying president biden's big plan could cost taxpayers at least $300 billion, not only that, they say those making more

will actually benefit the most while making inflation even worse. >> john: and then senator tom cotton, he says the move is nothing more than a shameless bribe. he'll be with us in just a moment. but we begin with fox team coverage at the white house starting with jacqui heinrich. what are we expecting to hear from the president? >> jacqui: they have made a claim a short while ago on a background call that this will potentially be neutral or deinflationary, to counter critics say it's going to exacerbate inflation and increase the national debt. that official said because 45 million borrowers have the student loan payments paused right now, joint impact could be neutral or deinflationary, we have not seen the math to back that up yet, but it is not what non-partisan committees like the

committee for responsible budget have said. senator mitt romney on twitter, sad to see what's being done to bribe the voters. it may win some democratic votes but fuels inflation, and unfair to those who paid their own way and create irresponsible expectations. even some democrats are worried that this could backfire. >> do you worry from your side of the aisle that there will be people that say i paid off my loans, or people that don't go to college saying why do i forgive this? >> no question about it, i'm already hearing that. >> jacqui: biden's plan did not go far enough. naacp had pushed for more than $10,000 in cancellation handouts, saying president biden's decision on student debt cannot be the latest example of a policy that has left black people, especially black women behind. it's not how you treat black voters who turned out in record numbers and provided 90% of the vote to once again save

democracy in 2020. and some analysts say there is some truth to that, white people will disproportionately benefit. >> almost 70% of the benefit will top 60% of the income distribution. it's not something that's targeting low income households and people in the higher income households tend to not be as cash constrained to begin with. l>> jacqui: expect to hear a lot of questions on what authority the president has to take this kind of action. you'll recall, speaker pelosi last year said the president does not have that power and it would take an act of congress. john. >> john: jacqui heinrich on the north lawn of the white house which is about to get very busy. thank you. >> sandra: some economists are warning it's going to harm working class taxpayers and helping those at the top. hillary vaughn is live at the white house as we await the announcement. how much is the president's plan

expected to cost the average american? >> it's costing every taxpayers, whether or not you went to college or paid off your own debt, ultimately every taxpayer is going to be bearing the brunt of this cost. president biden announcing taxpayer cash will be used to pay off $20,000 of debt for those who went to college on pell grants, $10,000 of debt for everyone else. only people making less than 125,000 will get the taxpayer funded payout. on top of that, biden is extending the pause on student loan payments for every11 final time to december 31st. this, of course, is not free. there is no such thing as making debt just disappear like a magician. the pen wharton budget model estimating for getting $10,000 for borrower, will cost around $300 billion and it is ultimately taxpayers that are picking up the tab. the national taxpayers union foundation puts the cost at about $2,000 per taxpayer. the administration, though, is

brushing off concerns that this is going to hike inflation even higher. they say because right now no one is making any student loan payments, they think restarting payments at the same time they are paying off a chunk of the debt, they think the two will offset each other. but some democrats even a year ago doubted the president was able to do this and that this was legal. >> people think that the president of the united states has the power for debt forgiveness. he does not. he can postpone, he can delay, but he does not have that power. that has to be an act of congress. >> the department of education general counsel said they think this is legal. they are using the justification for the heros act put in place after september 11th, gives the administration the right to cancel student loan payments in a time of war or in emergency. that emergency, sandra, they say, is the pandemic.

sandra. >> sandra: a lot to dig into there. live at the white house as we await the announcement. thank you. >> john: bring in arkansas republican senator tom cotton. ask you first of all about the question that hillary was just talking about. does this pass constitutional muster and do you expect it to end up at the system? >> no, john, i don't think it does. the president does not have the power to eliminate entire categories of debt, maybe the power to negotiate a settlement in a case it's disputed, but no, does not have that power. irrespective of lawsuits coming, of all the dumb things joe biden has done, this may be the dumbest yet. i know it's stiff competition, how unfair this is for all the americans harmed by this now on the hook for hundreds of billions of dollars of other people's loans. all the people who did not go to college, became farmers or

ranchers, plumbers, carpenters, welders, all the people in arkansas what went to college and work to put themselves through to not take on debt, and all those who went to college and paid off their loans. not only do they not benefit from this, but they are harmed by it, they are on the hook from the tax dollars and public debt for paying off hundreds of billions of other people's loans. it's also highly inflationary, at a time when we still have record high inflation, and finally, it encourages colleges to raise tuition harming a new generation of students. that's why i say this is a terrible policy. it's going to harm many more americans than it will help. >> sandra: and not just those who paid for their college, took on loans, paid them off, worked hard to pay for college while they were in it. and those who never went to college and chose not to go to college because it was so expensive and did not take out

the debt, they'll be on the hook for that. big numbers are alarming, the taxpayers could be on the hook for $329 billion according to penn. they went a step further and said take that cost, divided across 160 million taxpayers in 2019, that leaves each taxpayer in this country, no matter your income, responsible for about $2,085, ok. if this plays out over ten years. it reminds you of this moment, and i had our team tee this up, elizabeth warren in her run for president and the dad who confronted her about forgiving student loan debt. listen. >> i want to ask one question. my daughter is getting out of school, i saved all my money. am i going to get my money back? >> sandra: i saved all my money, my daughter doesn't have any loans, god bless her, said warren and the dad said am i going to get my money back? of course not.

a lot of people are feeling like that right now. >> yeah, i think they do, sandra. like you said, think about all the people who have worked hard and earned a good living without going to college. and a young man in arkansas started out as a house painter and then invest in a truck and ladders and equipments and now has a small house painting business. he doesn't benefit, he has at that pay off the loans. for a young woman who went to work as a stylist and now owns a small salon, she did not benefit from this proposal, and now she has to pay it off. you can multiply that across millions of other americans who are not only going to get nothing from this announcement, but are actually going to have to pay off those loans. loans are now being held by people making up to a quarter million dollars a year. joe biden is going to give people $20,000 and families making a quarter million dollars a year. it's just shocking. >> john: when you take a look at

it, 70% of the relief from this announcement goes to the upper 60% of income earners, and typically the people who hold the most college debt are the best educated in this country, regardless of whether they are making $125,000 or less, or making $75,000 or more. i mean, he's clearly chosen when he thinks is some sort of fair target. but how is it again, how is it fair that people who are the best educated and have the potential to earn the most money are getting the most relief here? >> it's not at all fair, john. as you point out, $250,000 per family is 4 or 5 times the median income for the state of arkansas. they are going to be young men and women working on wall street, working out of ivy league or stanford or university of california or cal tech, up to $20,000 paid off on they're loans on the hard work of

arkansas who never went to college, did not take out loans, and they had to start working right away, or paid their way through college. this is grossly unfair. priorities of the democratic party. once again looking out for the interests of wealthy, well-educated elites, largely clustered on the coasts and will harm the vast majority of americans who have to pay off their fellow americans' loans. no one is paying off arkansas farmer tractor loans, their small business loans or mortgage, but now paying off the loans of students who borrowed the money freely and willingly and don't want to repay it. >> sandra: and undermines the efforts to bring down inflation. more government spending that led to the 40-year high inflation, you can make the case as some models do, that inflation will get worse and that will be additional tax on the american people. we hear from both sides and had a democrat on with us last hour,

senator. john geramundi, a supporter of president biden's plans he is about to announce and he defended the move earlier, listen. >> it's not an inflation issue, although everybody wants to holler about inflation. this is really an opportunity for these people that will receive these benefits to be able to get their act together. they are delaying their marriage, delaying the opportunities as they try to pay off this debt. this gives them a necessary break. >> sandra: your reaction to that, senator. >> well, obviously it's inflationary if you spend $300 billion or more at a time when we have record high inflation. and contributes to inflation in college tuition. one of the most inflationary sectors, going to college, saving to put a kid through college. and what john says people getting their act together, these are people who took out loans, did so willingly and

freely, they need to pay off their loans just like every other american needs to pay off their mortgage or their small business loan or the loan they took to buy that pick-up truck that started their painting business or power washing business or carpentry business. no one is forgiving their loans no matter how much they are struggling in this economy. we shouldn't be asking hard working people in arkansas to pay off $20,000 each for families making a quarter million dollars. >> john: senator, when it comes to who has the authority to be able to actually affect a policy like this, not too long ago nancy pelosi was quite clear the president doesn't have the power to do this, that only resides in congress. so as a member of congress, are you going to say look, this has got to go through us, this can't be done through the power of the president's pen? >> john, nancy pelosi said that because she can read plain english and the law is fairly plain. the department of education may be able to enter settlements on

disputes of one person's debts, but the president cannot forgive an entire category of debts. the only people that can do that are the elected people's representatives in the congress. when we are back in session next month, i suspect you'll see a lot of people who want to put the brakes on this agenda, in addition to the likely lawsuits it's going to generate. >> john: senator tom cotton from the great state of arkansas, thank you for joining us, appreciate your thoughts. >> sandra: appreciate him joining us and bring in the econ panel. thank you both for joining us. i just want to know first off where you guys stand on this. robert, do you support this move by the president? >> i do, i support it. this is what he campaigned on, he was at $10,000 when bernie sanders was for full cancellation, i've never supported. i like the idea part is income-based like the 5% for

under grads. i think during these tough times during the pandemic it's a good thing that we are helping hard working americans just like we did on a lot of things during the pandemic, whether it was those people with -- that worked in hospital, whether in travel or leisure. listen, we stepped up on a lot of different ways and i think we are seeing incredible number of defaults, so i think it's a good thing. it averages about $100 a week, and i know people are putting up 300 billion but the truth is, you have to enroll in this program, some people think the enrollment will be less than 50%. >> sandra: you don't have to enroll in every case, that's not true. it's going to be automatic for many. >> the pell grants you don't, no, ok, i was just on a call on it, on the budget -- >> sandra: if you read straight through it, that is not the case. steve. >> i'm surprised that robert is in support of this because i thought he was against student loan debt retirement. but listen --

>> i was for full cancellation, steve. >> well, look. how many people do you think are going to ever repay their student loans? i mean, this is crazy. i mean -- the suckers here are the people who actually did repay their loans and now they have to pay taxes for the people who aren't. i think it's -- another point, you know, i think it sends a really bad example to young people that you don't have to pay back your loans. we used to call people like that deadbeats and that's not the kind of behavior we should be rewarding. we should be rewarding people who are acting honorably and paying back their loans, my wife is in that category, she graduated from ucla, did not make a lot of income when she graduated from college but set aside money to repay her debt and now she's angry as hell. like why did i even bother to do that? >> john: robert, it's john here. ask you what you said about this being a good thing now, to help

people out during times of economic hardship. you've got decades of people who had economic hardship trying to pay off their student loans. why should the people in the last couple years who accrued student debt get a break when all the other folks didn't? >> i think that's a great question. i was one of those. i had student loans when i graduated and trust me, i was making ends meet each and every week. i think what we are seeing is the hardship has changed dramatically. during the pandemic we had what was the k-shaped economy, the have and have notes. and those people hurt the most often have student loans. if you look at the default aspect to it, and those who were hammered on their credit, a lot of it is because of student loans. remember, we had a moratorium during the trump administration and it continued during the biden. but it's not like principle has changed. they have to start up again. the interest rate did not go down to like 1% to borrow, you know, at the corporation level.

it stayed at 6.5, 7%. so, there was a lot of things that took place over the last three years that was not the norm, and the truth is, 100-year happening took place. that never happened before in our lifetime. and so things have to be looked upon differently. from an inflationary perspective, it's not inflationary because the average household will be getting about $100 a week and look at that today, you have been saying it all day, like helping filling up a car one time. we are doing things like that and thinking about those things each and every day to help hard working americans. i just don't buy the whole inflation thing. it's just -- numbers don't show that.universities, every time w provide more benefits to the universities, john, the universities increase their tuition. we have not actually made colleges more affordable with the loan programs, we have made them less affordable. the greatest scam in america financially over the last 25 years is how much these universities are charging our

families. and i will make a prediction to you. if these kinds of student loan debt forgiveness policies go forward, it won't be long before these colleges are charging $100,000 a year in tuition because there is nothing to stop it. one other quick point, john and sandra. the university, i just looked up the numbers, universities have $700 billion of untaxed money in their undowments. why not charge the universities. >> i'm all for changing costs. >> sandra: we have to look out in the future, think of what it's going to do to college tuition going forward. >> i agree with steve on that point. >> sandra: bill bennet, 1987, said this, increases in financial aid in recent years have enabled these colleges and universities to raise their tuitions, confident federal loan

subsidies would help cushion the increase. this has been a problem for a long time. >> i think we are talking apples and oranges here. education has been skyrocketing before student aid became an issue. student aid became an issue starting for the most part during the great recession in 2008 and 9. so i mean -- >> sandra: what is this? >> yeah, i'm in agreement with that. >> sandra: i want to be clear, we are awaiting this official announcement to go back, robert, to the point you suggested that a lot of these borrowers will not apply for this. the white house website says and has a question and answer on what the president is about to announce, what do i need to do in order to receive the loan forgiveness. that's the first answer of many bolded points, nearly 8 million borrowers may be eligible to receive relief automatically, relevant income data is already

available to the u.s. department of education. they won't have to enroll. >> yeah, so i was on a call with the white house today and we were talking about the budgetary aspect. they were very clear, i have not read the website, they were very clear most people will have to enroll. they don't think the take-up, although they would love it to be 100%, they don't think it will be near 100%. so there may be a difference between what they call automatic, if you have a federal loan, versus having to enroll. i think we'll have to square the circle, it came out today. i only can tell you what i heard on the call. >> sandra: follow-up quick on that. to both of you. economic decision or political one? and robert, if it's an economic decision why doesn't the white house in announcing a $300 billion handout, why don't they put up a chart and say this is where this is going to get the american economy going in the next year, the next five years, the next ten years. where is the economic model they are using to implement these

massive government spending policies? >> yes, so, sandra, i'm glad you used the phrase 300 billion over and over. i went to penn so i think the economic model is excellent. >> sandra: that's the low end. >> the low period. >> it said it could be. no different than steve said the trump tax thing would pay for itself. models did -- >> it did, it did. >> yeah, it did. 2 trillion in deficits. but each -- >> robert, you never answered my question about why -- >> wait. sandra, i do think you are right. i think we have to show why this is deemed not inflationary. i think we should show why it helps hard working americans. i'll all for showing complete transparency. i'm not in the white house so i cannot tell them what the narrative should be, but i'm in full agreement with you. we should show everything to show why this is helping people.

go ahead, steve. >> it's not about transparency, it's about fairness. how is it fair to the people who repaid their loans. >> and also, here is the other point about this. is that you know, i asked this at the beginning. why would anybody in the future ever repay their student loan if they think it's going to be written off by the government? i mean, you are creating so many adverse incentives for people. >> a few things. i mean, we are confusing things here. the $10,000 is not repaying fully everyone's student loan. let's just be clear. you are saying the wrong information. it's paying off $10,000 of student loan. >> some of it. >> number two, the student loan continues to increase both in principal and interest. when you file and you have something defaulting, try to get a mortgage, an auto mortgage. the people who have defaulted on the student loans, it's not like they are ringing the bell

hallelujiah, you are just wrong. >> sandra: aren't you encouraging people to continue to take out loans they can't afford or can't pay off? >> i think so. >> that to me? >> sandra: sure. >> no, in my opinion and said to steve the other day on fox, i think we should completely change how student loans work, i've been touting this for actually a decade. it should be only a person sag of your income and should be capped at ten years, and we should make sure we understand what the credit of the other side is getting, and understand like any other loan who the counter party is, but percentage off of income and it should be variable. remember, these are federal loans and a lot to look at how the whole program works. no different than fannie and freddie. we have the tools to make it right and we should use them.

>> john: robert, you said there's a big discrepancy between the haves and the have notes. and loan forgiveness income capped at $125,000 per individual, $250,000 for a couple, to a welder in iowa making $40,000, that seems like these people have a lot and that they are not the have nots. welder never went anywhere near university. >> basic unfairness of it. you have -- let me -- >> half of americans in the workforce do not have a -- >> let steve have a second here. >> let me make this point. vf of the workers in america do not have a college degree. this bill transfers $300 billion from people like you are talking b the welder, the taxi driver, the small businessman or woman what did not go to college, and

the people who went to college make more money than people who didn't. >> steve, you just supported trillions of dollars during the pandemic for people hurt versus people who weren't being hurt in hotels and airlines and all the things. the government steps in. >> i was not in favor of that. >> steps in all the time. you were in favor of the trump recovery act. >> bail out everybody, everything will be free. >> steve, you were in favor of that touting the recovery act during the trump administration. >> i was never in favor of the bailout. >> sandra: we thank you for joining us heading up to the president's announcement, he is expected to make the announcement at 2:15 eastern time. a live look at the white house. as soon as we are told the president is coming out to deliver the message we will go to the white house live, a bit delayed for now. steve, robert, thank you both for joining us. >> john: didn't mean to start a fight, guys. fbi is looking into a

confrontation in san diego near the border. watch this. customs and border protection encounter happened when two migrants tried to illegally enter the united states. jonathan hunt is live in los angeles with the latest on all of this. this would appear to be a customs and border protection issue. why is the fbi involved? >> yeah, john, certainly seems unusual for the fbi to be investigating the sort of encounter cbp agents are routinely involved in, frankly, along the length of our southern border but appears to be about deciding what action may now be taken against the migrants involved. we just got a response from the fbi confirming that the agency is "investigating the assault on

federal officers" and added we will review all available facts of the incident to determine what federal response is warranted. now, the video of the incident starts with one man face down in the sand. his hands zip tied, pinned on the ground by a border patrol agent whose knee appears to be on the man's back. then the video rapidly pans to an ongoing standoff twoen another agent and another man wearing a wet suit. he appears to be challenging the border patrol agent, at one point lunging at him as the agent swings a baton. a large crowd on the mexican side of the border shouts and cheers as the standoff continues. two more agents then arrive, one of them tackling the man from behind bringing him to the ground. the three agents detain him. in a statement, they said the two men, mexican citizens, age 17 and 20, had entered the united states illegally by

swimming around the international boundary maritime primary fencing near imperial beach, california. as agents attempted to take both migrants into custody, the migrants actively resisted and assaulted the agents. now, john, as so often with these types of videos we don't see everything that happened on that beach. the fbi will presumably access a lot more information and possibly more video, all of which will be used to help determine what, if any charges the two migrants might now face. >> john: we'll keep watching this and see where it goes. jonathan, thank you. sandra. >> sandra: john, we continue to await the white house and as soon as the president begins that announcement we'll go there. meanwhile, drugs coming through the border, they are killing so many americans, more than 2200 people in kentucky died from drug overdoses in 2021 and 73% of the deaths included fentanyl,

agents are seizing more than ever at the border. mike tobin is live in southern kentucky at this hour. mike, what are you hearing from the people there? >> we have heard they have sadly passed this grim milestone last year of more than 2,000 overdose deaths and 72 or 73% of those overdose deaths were caused by fentanyl. a man named allen reed in richmond, kentucky knows the pain all too well. his son brandon was addicted to opiates after a series of knee surgery, prescribed oxycontin. and he survived the addiction until october of 2021, he bought some drugs with the street mix of fentanyl in them. remarkably, brandon survived his first overdose of the evening, revived and then went back for more. >> she revived him with narcan. besides reviving her own

boyfriend of narcan some time before. then she drove him to get his last dose and then later on that night brandon took his fatal dose at his girlfriend's apartment and he died in the bathroom. >> tom loving, the director of the drug county task force says the number of fentanyl pills seized in this county doubled from 2020 to 2021, and the number has already tripled just this year. he links the increase to chaos at the border, with the flow of people, he says drugs come across as well. fentanyl seizures are also increasing at the border as well. less than 5,000 pounds were seized in 2021, more than 10,000 pounds last year, and this year, more than 10,000 pounds have been captured coming across. mitch mcconnell puts the blame squarely on the biden administration calling the president's handling of the border a dereliction of duty.

sandra. >> sandra: mike tobin reporting from bowling green for us. thank you, mike. >> john: as we await the president, transgender golfer missing the cut at the lpga but fighting to compete professionally as a woman and against women. hailey davidson qualified the second tier, the epson tour. some call it attack on women's sports. caitlyn jenner, it's great to spend time with you, lpga rules allow hailey davidson to compete, removed the female at birth requirement in 2010 as long as the player has undergone hormone therapy and gender reassignment surgery. hailey has undergone both. playing in the rules, are the rules sound? >> oh, boy, john, here we go again. are the rules sound, i would say

yes, the lpga is a different sport. i've been very consistent with how i've tried to approach this transgender athletes. it really depends on the sport. every sport is different. obviously we saw with lia thomas she had gone through male puberty, bigger cardiovascular system, it was just not fair. and fortunately we won that, we won that won. the world organization for controlled swimming, basically banned her, said you have to go through transition before you are the age of 12, you can't go through male puberty. now we come to golf. golf is a totally different game. it is a game of touch and feel. it is about your ability around the green to get the ball close, out of the bunker. your ability to putt, and the girls on the lpga tour, i've played in some of these events, these girls are so good it's a

joke. i was hitting the ball, yes, i was hitting next to lexi thompson at one of the pro am events on the lpga tour. she's six feet tall, the girl is in shape, she is just bombing it out there, 30 yards farther than i could hit it. i have another friend, danielle, she kills me. these girls are really, really good. now, for hailey davidson, she's playing within the rules. in 2010, the lpga changed their rules from you have to be born female at birth in 2010, they changed the rules, that you could -- really open up the door for trans athletes to come in. in the last 12 years, how many trans golfers have we had? two. back in 2013, bobby lancaster tried to make it, she didn't make it. and now we have hailey davidson,

she's playing within the rules, like you said earlier, she's making the epson tour, a qualifying tour to get into the lpga. and so she's playing by the rules. so honestly, for me, the jury is still out on this one. let's just let it play out. i don't think she's going to be able to make it on the lpga tour. >> john: like you said, so much more that goes into it when it comes to golf than just brute physical strength. you drive for show and putt for dough. but when it comes to whether or not this is the right thing for the lpga to be doing, tennis great, andy murray's mother, a tennis coach said not fair at all, no, protect women's sports. listen to the facts, scientists and the medics, this is wrong. to which davidson's mother reacted shame on judy murray for

attacking another woman's child. you don't know my daughter hailey and you don't know about transgender men and women. unless you are a parent of a transgender child i suggest you keep your opinions to yourself. an area opposing somebody's participation in a sport because of their transgender sport becomes anti-transgender. is it, or can you oppose participation without falling into that category? >> well, we have the moms bottle right now, two moms battling it out. to be honest with you, i'm on hailey's mom's side. they don't know what it is like to go through transition to all the things, how difficult it is. the mothers do know and hailey's mom knows what this child has been through.

and is out there supporting her. she played i think the last time she played was like 2015, she played in a men's event. she says she's slowed down 15 miles an hour on her swing. i don't think that makes that much difference because it's all about the putter, but her mom is out there defending her and she's playing in the rules, let's see how this thing works out. it will be interesting, but i don't think she's in position where she's going to be dominating on the lpga tour. to be honest with you, those girls on tour are so good. >> john: no question about that. >> i guarantee -- the top girls on tour can beat probably 99.9% of the men out there. they are that good. >> john: and i know how good a golfer you are, for you to say that, clearly.

no question about that. we don't know if she's going to join the epson tour or not. appreciate you coming on. always love to get your thoughts. >> good talking to you, john. >> sandra: to caitlyn's point, lexi thompson, average drive, 272 yards, that's insane. all right. to the white house now, that's a live look, we are waiting president biden, the pool has been called we are told so they are getting closer. jonathan turley joining us at george washington law professor and fox news contributor. quite a tweet right now coming from jason furman, formerly of a democratic administration, economist, university of chicago says pouring roughly a half trillion dollars on inflationary fire is reckless. doing it well beyond one campaign promise $10,000 student loan relief and breaking another, all proposals paid for is even worse. this president is getting

criticism from both sides of the aisle for the move he is about to announce. is it constitutional? >> i'm skeptical. i would bet against it. no law gives the president this authority. there is a higher education act for the secretary to manage loans but does not say that you can wipe out an entire category of loans or much of it. this is a huge amount of money. i think the framers would be mortified a president could unilaterally make this decision. like giving money to the secretary for a money manager and saying i managed it, i gave it away. there's no clear authority for that. the hero act i don't think establishes that authority either. this president has been repeatedly found to exceeded the constitutional authority by the supreme court.

pushed the cdc to extend an eviction moratorium most of us said was unconstitutional. the supreme court had already been heard on that subject and yet they did it again and it was found unconstitutional. >> john: jonathan, if you take a look at it, though, it's not going to hit the court system in any meaningful way until probably after the november 8th election. so the president gets to go out there today and say to all of his constituents i'm going to forgive $10,000 of your debt across the board, 20,000 if you have a pell grant. by the time this gets overturned by the supreme court, election has gone away and then democrats can say well, it's just a conservative supreme court that again overturned the president's power of the pen. so how much of this do you believe is politics? >> jonathan: indeed, the extension of the loan puts it on the other side of november and there is real political dynamic

here. but one of the concerns i have is that when president biden was challenged about the extension of the eviction moratorium, he said well, he heard from some people go ahead and do it to get as much money out the door before the courts shut it down, and he cited lawrence tribe saying you could get away with this, when his own lawyers were telling him no, this is probably unconstitutional. that type of cynicism really undermines the authority of the united states and of this administration. now, how fast a court can act, we'll have to see, but they can't cite any direct mandate from congress. and what's astonishing, the democratic members of congress applauding their own institutional obsoleteness. this probably wouldn't get through congress and yet you have members who are wildly applauding the fact that they are being turned into

constitutional nonentities. >> sandra: professor turley, we know you have to run, thank you for joining us ahead of the president's announcement. appreciate your time. thank you, sir. >> john: byron york, chief political correspondent for "washington examiner" and fox news contributor. byron, where we left off with jonathan, all this feels like a rhetorical question, how much of this is politics? >> well, when i heard you ask that question my own answer was almost all of it is politics. go back to the 2020 democratic primary campaign. they had 20 plus candidates and at times it was a bidding war over who could offer more student debt relief. there were the really, really top people like bernie sanders who basically wanted t relieve all debt of everybody, and elizabeth warren wanted to do at least $50,000 in debt, that's five times more than what the president is going to announce

today. and then there is joe biden, a little more cautious about it, but still all of the candidates were promising something. and the other political part about this is the democratic voters who have lost the most faith in president biden in the last year and a half are 18 to 34 in age. they were the ones who had the highest opinion of him, the highest job approval rating for him a year, year and a half ago, and that has fallen quite a bit now. so as you say, less than two months before the midterms with a key, key voting group kind of disillusioned with the president, this might be a way to appeal to them. >> sandra: i'm just looking through, it's amazing to see some of these economists, byron, democratic administration's, we often quote larry summers who has been very critical of the administration's handling of inflation and he's warning what this massive spending will do to

an already inflationary environment in the country. he says student loan debt relief is spending that raises demand and increases inflation, consumes resources better used helping those who did not for whatever reason have the chance to attend college. it will also tend to be inflationary by raising tuition. there's a lot of warnings coming from larry summers even on this, byron. >> you know, what larry summers has said sounded a lot like what senator cotton said at the top of this program. and those are the actual reasons, and you have to remember summers has had kind of an up and down relationship with the biden white house on the issue of inflation. he warned that the american rescue plan was way too big and that it would be inflationary, and they were all trying to downplay that and say any inflation would be transitory. but then he did get on board for the so-called deceptively named

inflation reduction act, on board for that, and now as far as student loans are concerned he is warning that again, that it is going to be inflationary. and you know, a lot of democrats say to republicans well, what's your plan for dealing with inflation? well, the first thing is to do no harmmean, don't make it wors. so i think you are going to see this be a big, big campaigning point for republicans in a couple months ahead. >> john: i wanted to ask you about that, byron. i mean, clearly this is going to tick a lot of people off. if you talk about the taxi driver who never went to even community college and is trying to make a living for themselves and their family or you talk about the welder in middle america who went to two years of community college to learn a trade, and is making nowhere near the $125,000 that's the cap for debt forgiveness here. but not the galvanizing issue the dobbs decision was. as you look at those two things

as we go into the final eight weeks of the campaign here, can you really make a lot of political hay out of this loan forgiveness deal and could it ever measure up to the galvanizing energy that the dobbs decision has given the democrats? >> well, i think the idea is more to specifically target some democratic groups that they would like to fire up. remember, they are talking about trying to fire up their own base, not bringing in converts, trying to fire up their own base and there are two overlapping groups which is the progressive wing of the democratic party and young people. a lot of the same people there. but the thing is, yes, this is going to anger a lot of people, but it will also help a lot of people. i mean, there are millions and millions of people who have college debt and those who have debt of 10,000 or below or if they have a pell grant of 20,000 or below, they are going to get

that all cleared off. so, obviously that's -- personal benefit for them. >> john: sorry, byron, the preds just arrived in the roosevelt room, here he is. >> we became the best educated public in the world and better prepared than any other nation, and i would argue that that's one of the reasons why we were so successful, and have been so successful. but as you have all observed, other nations have caught up. in the 21st century, 12 years of universal education is not enough, and we are going to be outcompeted by the rest of the world if we don't take action. here is the deal. the cost of education beyond high school has gone up significantly. total cost to attend a public four-year university has tripled, tripled in 40 years. tripled. instead of properly funding public colleges, many states have cut back their support.

we are just talking about that in the oval, many states have cut back support for their state universities, leaving students to pick up more of the tab. and 50 years, for 50 years pell grants had been a key way for the federal government to help lower income families, particularly those earning less than $60,000 a year to send their kids to college. those pell grants used to cover 80%, 80% of a cost of going to a public four-year college. today pell grants cover 30 -- roughly 32%. that's one-third of the cost as opposed to before. it matters. i remember walking up and down my dad like probably a lot of your folks cared a lot about your education. my dad's greatest regret was that he never got to go to college. and my dad was a very well-read

man, particularly history and, but it was a great regret and he would say joe, you are going to be a college man. and dad, what does that matter, you can still get fired if you are a college man. yeah, but they can never take it away from you, they can never take your education away and i remember my senior year i got into one of the ivys and into a number of schools and trying to get the money even with financial assistance to be able to go there, we had four kids, all of us wanting to go to school, and i remember going down after a baseball game, i went to a really good school up in claymont, delaware on the pennsylvania border, and drove down to newark, delaware, my dad worked, and i walked in and had my spikes, and the reason i was going down, and dad works in an automobile agency you have a great advantage, you get a new car to go to the prom, or good used car -- you think i'm

joking, i'm not joking. and beach towels for seat covers, and had my uniform on, spikes, and the woman, mary, and i said mary, where is dad, he's out in the lane going into the repair shop. true story. and my dad was a well-dressed, refine fella and my dad was pacing back and forth between the big garage door going into the repair shop and the door going out of the showroom, and looked up and said oh, joey, honey, i'm so sorry, i'm so sorry, i thought, god, something happened, this is before cell phones. something happened to one of my brothers, sisters, mom, i went to see, the guy's name was charlie delcher, vice president of the state owned bank who did

financing for people to buy the car, i went to charlie and asked to borrow money and he won't lend it to me. i'm so damn ashamed. my dad was like millions of parents all across the country. want to help the kids get to school but there was no way to be able to do it. you know, and because he believed as i do, education is a ticket to a better life. but something jill and i, kamala and doug, we understand deeply, the vast majority of you do as well. but over time, too expensive for too many americans. all this means is the entire -- an entire generation is now saddled one sustainable debt in exchange for an attempt at least at a college degree. even if you graduate you may not have access to the middle class

life the college degree once provided. many people, many people can't qualify for a mortgage to buy a home because the debt they continue to carry. you know, they carry -- it's too high, they can't come up with the down payment anyway. a lot of folks are even putting off starting families because the cost, and the dream of starting and running your own business is just way off in the distance with the debt that so many are saddled with. many of you had to leave school because of financial strain was much too high. about a third of the borrowers have debt but no degree, and the worst of both worlds. debt and no degree. the burden is especially heavy on black and hispanic borrowers, on average have less family wealth to pay for it. they don't own their homes to borrow against to be able to pay for college. and the pandemic only made things worse. but we responded aggressively to the pandemic to minimize the

economic impact and the harm covid imposed on individuals, families and businesses. you all were there, it was recovery -- look, we increased unemployment benefits for workers who were laid off. we provided loans, small businesses so they could stay afloat and take care of their families and their employees. we president biden assistance to people to put food on the table. remember those long lines you guys would all film of cars -- decent-looking cars, not jalopies, nice cars, waiting for a box of food to be put in the trunk in the united states of america, waiting an hour to get food in the trunk? and rent and mortgage assistance to keep people from being evicted and thrown out in the street. approach to help the americans who need it the most was necessary. and it was the right thing to do, and to help people avoid financial crisis which helped our whole country as a consequence of that. that didn't benefit them, it benefitted the whole economy. our approach is why america's

economic recovery was faster and stronger than any other advance nation in the world. and now it's time to address the burden of student debt in the same way. working closely with the secretary of education, he's got the hard job, you know, secretary cardona, here is what my administration is going to do. provide more breathing room for people so they have less burden by student debt. and quite frankly, to fix the system itself, we came in and both acknowledged was broken in terms of -- anyway. there are three key factors we are going to do today. first, we made incredible progress advancing america's economic recovery. we have wound down pandemic relief programs like the ones unemployment insurance and small businesses. it's time we do the same thing for student loans. student loan payments pause, it's going to end, it's going to end december 30th -- extend to

december 31, 2022, it's going to end at that time. it's time for the payments to resume. second, my campaign for president, i made a commitment that we would provide student debt relief and i'm honoring that commitment today. using the authority congress granted to the department of education, we will forgive $10,000 in outstanding federal student loans. in addition, students who come from low income families, which allowed them to qualify to receive a pell grant, will have their debt reduced $20,000. both of these targeted actions are for families who need it the most. working and middle class people hit especially hard during the pandemic, making under $125,000 a year. you make more than that, you don't qualify. no high income individual or

high income household on top of the 5% in the top 5% of incomes, by the way, will benefit from this action, period. in fact, about 90% of the eligible beneficiaries make under $75,000 as a family. here is what that means. if you make under $125,000, you get $10,000 knocked off your student debt. you make under $125,000 a year and you received a pell grant, you'll get additional $10,000 knocked off that total, for a total of $20,000 relief. 95% of the borrowers can benefit from these actions, that's 43 million people. of the 43 million, over 60% are pell grant recipients, that's 27 million people who will get $20,000 in debt relief.

nearly 45% can have their student debt fully canceled. that's 20 million people who can start getting on with their lives. all this means people can start finally crawl out from under that mountain of debt. on top of the rent and utilities, to finally think about buying a home or starting a family or starting a business. and by the way, when this happens, the whole economy is better off. in the coming weeks, the department of education will lay out in detail a short and simple form to apply for this relief along with information when this application process opens. by resuming student loan payments at the same time as we provide targeted relief, we are taking an economically responsible course. as a consequence, about $50 billion a year will start coming back into the treasury because the resumption of debt.

independent experts agree these actions taken together will provide real benefits for families without meaningful effect on inflation. let's be clear. i hear it all the time, how do we pay for it. we pay for it by what we have done. last year we cut the deficit by more than $350 billion. this year we are on track to cut it by more than 1.7 trillion by the end of this fiscal year. single largest deficit reduction in a single year in the history of america. and the inflation reduction act is going to cut it by another 300 billion over the next decade because medicare, will be paying less for prescription drugs, and over a trillion dollars for the next two decades. the point is this. there is plenty of deficit reduction to pay for the programs, cumulative deficit reduction many times over. i will never apologize helping americans, working americans or

middle class, especially not to the same folks who voted for a 2 trillion tax cut that mainly benefitted the wealthiest americans and the biggest corporations, that slowed the economy, didn't do a hell of a lot for economic growth, and was not paid for and racked up this enormous deficit. just as we have never apologized when the federal government foregave almost every single cent of over $700 billion in loans to hundreds of thousands of small businesses across no one complained that those loans caused inflation. a lot of these folks and small businesses are working in middle class families. they needed help. the right thing to do. so the outrage over helping working people with student loans i think is simply wrong. dead wrong. third thing, we're fixing the student loan program system

itself. we've talked about this at length, this is really important. we're proposing to make what is called an income-driven repayment plan simple and fair. here's how. no one with an undergraduate loan today or in the future, whether for a community college or four-year college will have to pay more than 5% of their discretionary income to repay their loan. that's income after you pay the necessities like housing, food and the like. you currently pay 10%. we're cutting that in half to 5%. after you pay your loan for 20 years, your obligation will be fulfilled. you want to pay any more, period. borrowers with a original balance of $120,000, many of whom are community college students will be done paying after ten years. these changes will save more than