dave: women like men who drive pickup trucks. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- b this is a fox news alert. -- bill: this is a fox news alert. more news on the cost of health care, nationalization, and were due health care insurance may be in trouble. congress is trying to figure out how to pay for health reform. is looking to cover a bill that could cost $1 trillion or more. some of the options for consideration. tax for health benefits that you get from a company for free. pass a national sales tax. or, at a big n and a new high surtax. i am bill hemmer. megyn: i am megyn kelly. there are new questions about whether health care reform is in trouble. middle-class taxpayers across

the country are apparently unhappy with the big price tag and the payment plans coming from the democrats in congress. they are now complaining to lawmakers. bill: they got an earful on the july 4 holiday. stu varney, good morning. what is the clearest option? >> there are three options. this is all about paying for health-care reform. politicians are choking on the cost. the first possibility, if taxing existing health benefits. this is wildly unpopular with voters. why should we pay to insure the uninsured when 10 million of them are illegal? two, a national sales tax. it is wildly unpopular. that would break president obama's promise not to raise taxes on anybody making more than $250,000. the third option, tax the rich. it does not bring in the money.

the rich are facing much higher taxes. state income taxes, property taxes, capital gains taxes. if you add on one more, it does not bring in the money. the bottom line, the politicians are choking on voter reaction to pay you for health care reform. bill: any time voters hear more about spending more money, they are turning around and ready the other way. you could track the back to two things, the stimulus plan and the tarp bailout in october of last year. we are looking at $1 trillion that is now a sinking into the consciousness of the american people. >> a big political issue is the size of this deficit. the out-of-control government spending and running up the deficits. can you really go to the voters and add to that deficit p

aying for health-care reform, a minimum $1 trillion? i think health care reform is in real trouble because you cannot pay for it. bill: they want to get it done in five weeks before the august recess. steven moore will join us. megyn: can we get stu varney back? let's show the viewers. what do these things have been common? thank you very much. pink. >> my people got together with your people. bill: i call it salmon. megyn: wall street has been watching all this talk about new federal health-care spending and the new calls for another stimulus. investors do not like what they

say. yesterday's close, the dow was down. take a look at june 12, less than four weeks ago. the dow has lost 7% in less than one month. del futures are up slightly ahead of what is likely to be a quiet day -- dow futures are up slightly. bill: now from washington, and this unusually sophisticated cyber attack that knocked out government web sites. u.s. officials refused to talk about this publicly. the cyber attack took out a number of federal website. it also affected some government assistance in south korea. computer security experts call this shocking and severe in their ability to take down sites and stay down for a long period of time. an anonymous official says the

south korea connection raises suspicions it could be from the north, or it could be an inside job. megyn: you can expect sharp criticism at a senate hearing later today. the chief of a little-known homeland security agency will have to answer for this. watched this video. how did investigators from the government accountability of this smuggle liquid explosives and detonators into t federal buildings? you are watching surveillance tape. they were not supposed to get in. they did. they got into a congressman's office, and even a homeland security building. they were able to make the beginnings of bombs. once inside, they are able to assemble bombs and move around freely. this is not how the system is supposed to work. caroline, this government

accountability office investigates all sorts of things. they tried to hold the government accountable. this investigation did not wind up so well for the government. >> no, 10 different federal buildings and tents successes for the g.a.o. they walked up and down the halls with no problem. check out a photo of a guard sleeping during a nighttime shift. they found a guard operating an adult for profit website on government computers. another guard accidentally fired his weapon in a restroom. another guard did not notice handguns delivered to the building. megyn: wait a minute. stop right there. you are telling me the guard is in the restroom like bam, just

practicing, and the gun goes off? >> they did not go into details. you can imagine he was whipping it out and pointing it at the mirror. megyn: and discard is asleep -- and dithis guard was asleep. >> and in another case, the guard was not paying attention, the baby went straight through the x-ray. the guard was fired. he won a lawsuit because it turns out he did not get enough training. megyn: it is either laugh or cry. you've seen the sleeping guard. now, the g.a.o. tries to find out where this is happening.

did they use some secret, extraordinary measures? was it unfair in any way? >> not from what we can see from this report. it does not look like they used in the james bond steps. the whole point of this was to see if a regular joe could bring bombs through. they just show their drivers' licenses, and they put the bomb parts through the metal detector. megyn: i am speechless. i do not know what to say. by the way, was the baby ok? >> the baby is ok. there are worries. the x-ray is a very powerful machine. megyn: you cannot make this up. thank you very much. bill: it does not anend there. by the way, i feel so much

better about that report. megyn: don't you feel safe? i'm glad i've worked in new york city. to make the point about how dangerous this could have been -- that is the point of this. they say, guess what? we just assemble a bomb. the government accounting office assemble a real bomb to make their point. they took the real bomb outside and set it off. it is all on video. here you go. yes, that is not good. in the indian the guard needs to lay off the purchase at -- i think the guard needs to lay off the percaset. bill: the guard with doubt be done in the bathroom, and that

it was discharged. there's a mystery today. millions watched yesterday's tribute to michael jackson. what happened to the king of pop's gold-plated casket after it was rolled out of the staples center? megyn: can you believe they are keeping us guessing still? some washington lawmakers want to pull out the checkbook again. your checkbook. when we come back, we will tell you what they want to spend it on now. gecko vo: geico's the third-largest car insurance company in the nation. but, it's not like we're kicking back, now, havin' a cuppa tea. gecko vo: takes lots of sweat to become that big. gecko vo: 'course, geckos don't literally sweat... it's just not our thing... gecko vo: ...but i do work hard, mind you.

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megyn: 12 days after he died, the king of pop was honored with a lengthy memorial service. thousands packed the staples center for star-studded tribute to michael jackson. the most dramatic moment coming from jackson's 11-year-old daughter paris. she called the late singer the best father ever. you can see jackson's brothers wherein one white glove, and contribute to their brother. his resting place is still up in the air. the family held a private

memorial service yesterday. it does not appear that jackson will be buried there. where will he be buried? the california law may not allow him to be buried at the never land ranch. bill: the first stimulus bill passed in early february -- told it would help keep unemployment below 8%. that has not happened. we are now at 9.5%. the democratic house majority leader says we may now need a second of stimulus plan. meanwhile, interest payments for the first and was plan are reportedly running $100 million per day. senate republican leader mitch mcconnell, with a strong response to the idea. >> at home we used to say there was no education in the second

to camil kick of a mule. it is mind-boggling. bill: you are not going to figure it out the second time. economics writer stephen moore of "the wall street journal" joins us. the white house is backing away from this. what would a second plan looks like? -- with a second plan look- a like? >> we are borrowing $2 trillion. they're printing money at a record pace. it is hard to believe that anyone can conclude that the reason the economy is not performing better is because

washington is not spending more. that is the conclusion they have come to. what led this stimulus package look like? we do not know. one of the problems with this whole idea is -- as you know, about 90% of the $800 billion still has not been spent. what are you going to do? another stimulus plan at the time when we have not spent 90% of the first one. one of the scandals is that it is taking so long for this monday. three months ago, we were told these were shoveled read-ready projects. most of the money, 90 percent of it, has not even been out the door yet. bill: here is what we have today. 7% of the money has been spent. by the end of this year, 24% of

the money will be disbursed. that does not mean it will be spent. it is a classic washington argument. do you go from government spending versus tax cuts, which we know have been faster in the fast? >> one other alarming statistic, almost half of the money that was authorized does not get spent until after 2011. a lot of this money will not be spent for the next 24 months. your question, do you cut taxes or do you increase spending? i happen to be old-fashioned. i think government spending is destimulus. the problem is we're spending too much money. i would take up some giant scissors to the giant federal credit card. bill: you wonder how much

traction that is getting out there. >> it is getting on in congress because they want to spend the money. they do not want to give the money to businesses. without healthy businesses, there are no jobs. we have done nothing to help businesses in this package. bill: we talked to stu varney about this. people really turned off by anything that looks additional spending or additional taxes. apparently, a lot of them got a mouth full over the weekend. >> that is an excellent point. i do not think there will be a second stimulus because americans are up to here with all of this overspending. when americans are asked what is the biggest problem right now, they say it is overspending by washington. the runaway government is starting to resonate with voters. bill: stephen moore of "the wall street journal."

thank you. megyn: with all the pressing matters on capitol hill like health care reform and confirming a new supreme court justice, congress is taking up the matter today of killer pythons. we are not making light of this issue. one of these things killed a little girl last week because a man had it in his home and got out in the middle of the night. what can congress do about this? bill: good question. nasa is making new progress and establishing a permanent colony high above the earth. the last man to walk on the moon was 37 years ago. he is in our studio this mornin.

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bill: new developments in the dublin on a real crash at disney world in florida. the ntsb is joining the investigation. it is the first time the agency is getting involved in an accident on private property. the accident killed a 21-year old train operator, crashing after his train ran into another. a witness called this a head-on collision. toxicology tests on the driver are still pending. megyn: giving back to those making the greatest sacrifice, the veterans of the worst in iraq and afghanistan. a new program now offers rehabilitation instead of jail time for former soldiers convicted of non-violent crimes. rick, good morning. exactly how will this work?

define the problem for us. >> there is no evidence that more veterans than non veterans are coming back to the united states and committing crimes after serving in iraq for afghanistan. the district attorneys in three of the largest counties want to make sure that anyone who did serve their country and does have a problem when they get home, against the help that they need. they are offering the system. it is nonviolent and they are not a threat to the community, they can get the help that they need. >> our veterans and men and women in service are the backbone of this country. when we need them most, they are there with unwavering courage. when they return, we must be there for about with the same steadfast support they so desperately deserve.

>> she is talking about veterans who have committed nonviolent crimes. megyn: helow bad is the problem? >> they did not give the statistics, but they said that some veterans have a problem after they return from combat. they have assigned people across the country at v.a. hospitals who might qualify for this program and get them the help that they need. megyn: i can say that these people work very hard. they love those veterans and they want to help them. thank you very much. bill: in a moment, we have this very special guest. we have never before seen pictures this morning, giving us a view of the moon you can only get by walking on the surface of the moon. the last man to do that 37 years

ago is here to talk about his experience. the way he describes this is just fascinating. megyn: new questions being raised over president obama's supreme court pick, judge sonia sotomayor question. they're coming from the national rifle association. that is one powerful group. i have a new warning about this ♪ happiness is a war gun nothing beats walmart's unbeatable prices...

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bill: in the middle of health care reform energy bill, there's a push on capitol hill to ban burmese pythons as pets. florida senator bill nelson said the final straw was the strangulation death of a two- year old girl by a pet snake

that got out of its cage. what is expected from this hearing today? >> in about half an hour, center bill nelson will lead this hearing -- senator bill nelson will testify about a bill he has put together to label these snakes as dangerous species and to ban them from being imported. since 1990, more than 110,000 burmese pythons have been imported into the u.s. at least 10 people have been killed since 1980, including the tragic story about the two-roll to was strangled in her crib -- who was strangled in her crib by the mother's boyfriend's snake.

bill: nelson will testify. this is his deal. >> absolutely. he represents florida. this is where the pythons have been released illegally into the environment. we will see what happens. there will be a lot of attention on this because of this dramatic tragedy that happened last week. bill: thank you. megyn: hearings march forward on capitol hill today on nationalizing america's health- care system. the legislation will likely by in at more than 1000 pages. only a few staffers you have never heard of will actually read it. unless a conservative group called let freedom ring has its way. it has a novel idea. once the law makers to actually read -- it wants the lawmakers to actually read the bill.

it is asking members of congress to sign a pledge that says they will do just that. how's that going? the president of let freedom ring is my guest now. it is so innovative. it is brilliant. the lawmakers actually beating the law. i do not know where you come up with this stuff. -- the law makers actually reading the law. >> i think the original idea was in the constitution. megyn: you sent this to every member of congress. the pledge says, can you please just promise that you will personally read the bill? could you do that? and could you give the american people a decent amount of time to review it for themselves before it becomes the law? who has said yes, if anyone? >> we have over half a dozen people who have signed. we're not making a public yet. they have just come back from

recess. i want to give everybody two full weeks to consider whether or not to sign this. on july 20, we will go public with who has signed, who has refused, and who has not responded. megyn: is it bipartisan? >> not so far, but i hope. megyn: we know some of the names. according to my information, they are all republicans. it is ironic. both houses of congress are controlled by democrats. >> i agree totally pure . megyn: the house majority leader steny hoyer left at you. he said, "if every member pledge to not vote for a bill if they have not read it in its entirety, i think we would have fevery few votes." >> if you think about it, his laughter, cynical as it may become is directed at the american people.

-- as cynical as it may be, is directed at the american people. we're sick of hearing about these enormous pieces of legislation to do not know -- and they do not know what is in those bills. redrafted this pledge. it relates to the health care bill. it says two things. it says the designer will not vote for it without having read it. -- it says that the signer will not vote for it without having read it, and it needs to be available on internet for 48 hours. i do not think that is asking too much. i think it is what americans overwhelmingly expect. megyn: that was the house majority leader. here's what the house minority leader, john boehner, had to say about the problem. >> here we are with 1100 pages. 1100 pages not one member of

this body has read. there may be some staffer in the appropriations committee that read all of this last night. annot one member has read this. what happened to the promise that we are going to let the american people see what is in this bill for 48 hours? no, we do not have time to do that. megyn: he recognizes the problem. but others who are defending not to read these bills say the staffers read it. why is that not good enough? >> on a bill of this significant, a bill that could signal the julie restructure 17% of our entire economy -- this is a bill that could restructure 17% of our entire economy. i think it is important that the

members take a little extra diligence. that is what we are asking for. at least read through this once. among other things, it will protect the member from the kinds of surprises that sometimes surfaces when little favor in the lanes that are inserted by lobbyists come to light. megyn: this has been raised before. a few years ago, back in 2007, senator jim demint had a fight with senator durbin. he said, you just released a 3400 page omnibus bill on a sunday night, and you want to vote on this on tuesday. it is 3400 pages. dick durbin said, you had the opportunity to go to the internet and see the bill in its entirety for 46 minutes. is that enough?

>> we have asked for 72 hours in this pledge. it is time for citizens and blog gers and media people to see what is in there. megyn: do you want to 72 hours for public review? ironically, if you find some support from the top democrat in this country, president obama. he made a promise along these lines on the campaign trail. >> he promised he would not sign a bill that arrived on his desk until it had been posted for five days. that is 48 hours longer than we are speaking about. our pledge addresses the actual vote on the bill. his relates to signing a bill that has been sent to him by the congress. megyn: when you get a yes and nos, will you come back, and

billion name names? we want to know. we want to know who has refused to read the legislation they will vote on. -- will you come back and reveal the names? >> absolutely pur. megyn: you will know their names, as john mccain said. bill: and make them famous. a novel idea, by the way. republicans responding to the new filibuster proof majority in the senate. have a look at a new web advertisement. minnesota's newest senator has a starring role.

♪ bill: they could upgrade the tune. megyn: that is kind of depressing. bill: expected. lot more of that theme during the next round of elections. megyn: the music brings the room down. it seems like a sad movie. we are now hearing that in less than 24 hours, we could see the new gm emerge from bankruptcy. what happens to the old investors? our long time car dealers, and our old friend, the u.s. taxpayer. bill: nasa is making new progress on establishing a permanent home on the moon. after the break, you will hear from the last man who walked on

the surface of the mood about what we can expect. megyn: i hear it is very bumpy. ♪ i was strolling on the moon one day in may we've made a great product even better. now every drop of shell gasolines... contain a nitrogen-enriched cleaning system... that seeks and destroys engine gunk... left by lower-quality gasoline. it protects engines from performance-robbing gunk. try new nitrogen-enriched shell gasolines. 90s slacker hip-hop. ♪ that can strain your relationships and hurt yourody 'cause we'pride ♪ng a ride ♪ performance-robbing gunk. ♪ it's the credit roller aster ♪ ♪ and as you can see it kinda bites! ♪

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connecticut. police an advertising executive kidnapped his ex-wife in a parking rod at gunpoint. he held her hostage. dozens of gun shots and explosions at the winter the area. the suspect, richard shenkman, first released his wife, and then surrendered to police after setting the house on fire. incredibly, no serious injuries were reported. bill: we have new pictures from the surface of the moon from the latest lunar orbiter. as we approach the anniversary of the historic day when america became the first to land on the moon. this is what nasa is going for. they want to map the entire surface and figure out the best place to set up an outpost soon.

this picture goes back to 1972. the man on your screen -- people remember this as a time of optimism. today we are speaking to the last man who ever walked on the moon, eugene cernan, a former astronaut. he is in that picture. you have some awesome thing to say about your experience through the first thing that happens is you experience the most quiet moment in your entire life. nothing is moving. there's no wind. there's no sound. >> the most exciting period of your life. you start to descend. it is shaking and it is crazy. the dust starts blowing.

they have nothing left to tell you. you shut down the engine. the dust is gone. your partner is mesmerized. you realize that what you are looking at, you are now where no human being has ever been before. bill: what do we look like from up there? >> put yourself in the valley. the marvelous beauty. across oceans and continents, the magnificent blues of the ocean and the whites of the earth and the clouds. you realize you're looking at the other side of the world. you are on another planet. it is beauty beyond comprehension. bill: did you feel a stronger

connection to earth? >> you do not really consider the risk at that time. you have bit the bullet. when you can hold up nothing bigger than the palm of your hand to cover up the entirety of the earth, your live in almost in a science-fiction world. earth is surrounded by three- dimensional blackness. infinity. we do not even know what that means. there you are. there is life as you understand it. bill: your unlucky human being. you say the moon is pbland in color. -- you are a lucky human being. why do we want to go back there? >> why do we want to go back to

the moon? why do we want to go to mars? may be simply because it is there. why did columbus sailed across the ocean? it is our nature. it is our destiny to explore. you can go on and talk about all the technology and all the leadership in the world. one of the reasons we need to go back to the moon is because of the education of young people, to stimulate their desire to dream. bill: what would we gain from an outpost? is that literally the shooting off point that would take us to mars? >> we have to live on the moon and places like mars. when we go there, we will have to stay four weeks at a time. to live, and exists of the land. i think we can do that could

lead to better understand ourselves. -- i think we can do that. there are so many things. we set up telescopes. bill: i can say your mind racing. i've got to roll a clip of the e video the you remember intimately. what is going on here? >> ♪ month of may. the first scientist to fly in space, a looters geologist. it was actually the right thing -- the first scientist to fly in space, a lunar geologist. where did the moon come from?

the earth? the stars? bill: and in absolute honor. >> you will watch human beings well, malk on mars. bill: he is the star of a new fox special, "apollo 11: one small step to our future." i do not know. i think gene is my avenue to get there. megyn: he is including a. if he takes us, we can all go. >> if we can find the spacecraft, i will take you both. megyn: i will make some calls. >> thank you. bill: thank you great to see you. megyn: 566 hours in outer space.

here he sits on our set, eugene cernan, an american hero. a troubling new report on the stimulus spending. remember when president obama promised strict oversight? not so much as it turns out. the new information is just ahead. and talk about the thrill of victory and the agony of defeat. the former figure skating champ is facing in the long arm of the law right now. what cops say she did and what the former ice princess is facing. . are you receiving a payout from a legal settlement or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today.

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bill: what do we have? headlines from overseas. take a look at this new video

here in new york. these are street battles breaking out in the northern area of kashmir. violent confrontations after the mutilated body of a muslim student was found in a graveyard. protesters say that it came because of the police. police deny iran -- wrongdoing. a rare public appearance by kim jong il. he is attending events marking the death of his father. he appears to have lost more weight since his last public appearance. he suffered a stroke one year ago. talk of his succession has been prompted. there is talk that his youngest son has been named the heir to the presidency. megyn: from consumers to asbestos patience and car accident victims, dozens of groups are trying to stop the general motors bankruptcy fail, the clock is ticking. these groups have until noon

tomorrow to achieve their mission. jeff, let's put this in perspective. what is for sale? who is trying to stop it? >> this is the asset sale, general motors selling itself to the new general motors, keeping the good assets, selling off the old assets. i know that you have a particular interest, as an attorney. last night the bankruptcy judge ruled that asbestos claimants could not take their appeal directly to the court of appeals. megyn: essentially, the court is giving the back of the hand to these people that have objections to this, many of whom have claims against general motors. >> exactly. asbestos victims, some with chronic liability lawsuits still pending. the judge has some precedent, they just went through this with

chrysler. the bankruptcy judge allowed the sale to go forward, even though those claims are left holding the bag. there will not be a lot of assets. >> that is the beauty of bankruptcy for the company that find themselves in it. how soon will it close? >> it could theoretically close after noon tomorrow. the judge has stayed his order, allowing the closing until after noon tomorrow. someone could enter at the last minute. i spoke to a source close to the proceedings, they said that it would be a likely tomorrow, but perhaps friday or monday. looks like this would happen quickly. >> -- megyn: truly, an expedited proceeding. thank you. bill: monday, next week, confirmation hearings began on capitol hill. new questions are being raised about sonia sotomayor. this could get very big. megyn: in "kelly's court,"

donald trump is finding out that words can make a big difference. just ahead, the little people and their big lawsuit.

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[captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- megyn: fox news alert, the national rifle association raising a red flag, a decision that could change your right to bear arms. they have serious concerns about judge sonia sotomayor. president obama picture to be the next supreme court justice -- picked her to be the next supreme court justice. the writing might be on the wall. gun rights, topping the hour. good morning, everyone. bill: nra big leagues saying that out of respect for the process, they have not announced their official position on the confirmation of judge sonia sotomayor. however, should her answers regarding the second amendment be optional or evasive, we will have no choice but to oppose her nomination. megyn: where is this coming from? shannon, they have grave concerns about sonia sotomayor.

tell us why. >> instead of outright opposing her, they do expect very thorough and serious questions by the members of the judiciary committee. they say that she is a threat to the 80 million gun owners in america. they do not think that she has the proper respect and interpretation when it comes to the second amendment. they said that if they see anything that gives them concern, they will oppose her. interestingly, another letter went to senators yesterday. a board member of the nra sent -- signed don, asking to not confirm her. operating differently from the executive director, there are clearly calls of concern about the second amendment. megyn: what is the decision that he issued that they are worried about? >> a decision that came out earlier this year where she said -- when the washington, dc

gun and was struck down, since then she had this decision. what she decided is the fact that the second amendment does not apply to the states, meaning that states can still ban your gun. that is on the case, headed for the supreme court. if they did and she was confirmed, she would be sitting on the bench when the case got there. very controversial. other circuits decided differently. it is a question that seems unsettled. megyn: even in the wake of heller, a victory for guns, now gun owners are not happy about her decision. the nra thinks that this issue might sway votes. people should know that the nra has a lot of power. this is a strong group.

could they actually changed the outcome of this nomination? everyone has assumed it is a foregone conclusion until now. >> i had one advocate tell me that the second amendment is the new roe v. wade. there are a lot of democrats that are fully supportive of gun rights. constituents at home want to hear that there senator, democrat or republican, will support gun ownership. it is something that gives democrats a lot of concern. traditionally, very supportive of the nominee, but this issue will be tough in the senate. megyn: the news of the past couple of days, a serial killer in south carolina led the residents, many of whom who did not own guns, because they're worried about their own protection.

the issue of whether states can ban gun ownership is front and center, for better or worse. we will hear more about it next week. see you there. bill: in the meantime there is a major move in the health-care debate taking shape in washington. a senate committee fine-tuning a reform bill by ted kennedy, offering government run health care. the gop says no. the mandate that the employers offer adequate coverage. in 30 minutes we will hear from joe biden, expected to announce a deal with three major hospital groups, saying that those groups are going to give up $155 billion over the next 10 years to cover the cost for health care. this goes along the line of what drug companies agreed to about two weeks ago. we will get republican reaction later in the hour. megyn: president obama's popularity is plummeting in the heartland.

big political implications. ohio voters, expressing dissatisfaction with president obama. on the fifth of many he enjoyed a 62% approval rating. that number has dipped to 49%. 814 point drop in a critical swing state. -- a 14 point drop in a critical swing state. the university polling institute said that fears over the economy have hurt the standing of the president in ohio. bill: all about jobs, time and again. especially in ohio. those are my keeps. megyn: your people. bill: northeast of rome, the g8 summit. the white house insists that it is too early to pull the plug on stimulus efforts.

they say that they will see better dividends in the third and fourth quarters. british prime minister gordon brown says that the world needs to wake up and focus on turning the world economy around. this was supposed to be a posh island resort, but it was moved to where and why? >> remember, three months ago, april 6, there was a terrible earthquake that can -- killed nearly 300 people. the heart of the earthquake was here, in l'aquila. the location was changed l'aquila in order to put the world's spotlight for these few days on the area, on the earthquake victims, trying to give them a boost of some sort. the town is really in trouble, basically shut down. they will get a chance to tour some of that heavily damaged town of l'aquila and the towns

nearby. bill: we have seen president obama get quite a reception in certain parts of the world. rather tepid from moscow. what has it been like for him in italy the first time? >> in rome they are actually quite excited. he is very well liked here. you did not see it on his arrival, because he arrived at such a small airport. there is a lot of excitement on the streets. people tell me that it is nothing compared to a john kennedy in the 1960's, but he is certainly well liked. huge security. not only obama, but the other g8 liters and dozens of others that have been brought in, rome is chock full of police. bill: thank you for that. we will continue to fall this story throughout the day on the fox news channel as the g8 continues. megyn: nobody messes with joe. that is what president obama

said when he put vice president joe biden in charge of monitoring waste in the stimulus money. news today, more than a few people are messing with joe. bill: a powerful blast caught on camera here. this explosion was inside of a state room, but it was not a bomb that blew the wall opened. megyn: once a powerhouse on the figure skating circuit, this u.s. champion is now on relief and eyes. rising star to falling star, then a big arrest. next.

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bill: we have surveillance video from a hotel in alabama. the wall of a window exploded, not a bomb, it was a math lab. debris was found in the parking lot, as far as 25 feet away. police arrested one of the people inside, they are still hunting for the other two.

megyn: president obama promised americans strict oversight of the sum of $800 billion in stimulus money. -nobody messes with joe, right? not so much, it turns out. states are using portions of the stimulus money to fill in their budget gaps, basically paying of medicaid debts, instead of creating jobs. is that what we had in mind? steven is with a group of taxpayers for common sense. hello, stephen. government accountability office, making sure that you cannot get bombs and to government buildings -- by the way, you can. now, the portion of this money, a big portion, $50 billion, went to the states to help them create and save jobs. what are they saying about what

they are doing with the money? >> the day estimate that they will get about $50 billion by the end of the fiscal year, september 30. $29 billion of that has already gone out. a lot of this money was to back fill the medicare and medicaid needs, freeing up other funds to do other things. it seems like in a lot of cases, states are not doing new infrastructure or larger projects to generate the jobs promised. megyn: i do not understand. the gao has concluded that much of it has gone to bolster medicaid, a health-care program for the poor. they are saying that almost all of the stimulus money has gone to help with medicaid. how is that creating jobs? when president obama backed out stimulus, he said that we would

use it for school buildings and public buildings that would be retrofitted to be made more energy-efficient. construction jobs and so on. where was the talk of helping medicaid paid the bill? >> there was part of a discussion of having aid to states, they recognize that it is a zero sum game. money that is not available for other activities. some of it is what are they doing with the extra cash? if we are helping them out with medicaid, which you are right, some of the money went directly to that, what are they doing with it the other funds that are not going to economically distressed areas? are they trying to build new infrastructure? it is a large to do list on the infrastructure. megyn: they are saying now, as you point out. the stimulus law passed required states that got the money, if they were going to give it to transportation projects, which had received so much discussion,

they had to start with projects in economically distressed areas. helping the folks who are hurting the most first. gao is reporting that that is not being done. is there accountability for this? what happens now? >> a good question. some of these states redefine what economically distressed is. part of the problem with this is that we are doing a post-mortem on figuring out where the money is being spent, hopefully we can use that as leverage to make sure that the additional dollars are being spent more wisely and appropriately. megyn: forget about the balance of the existing stimulus, they are already talking about stimulus 2 on capitol hill. they are getting ready for that. you are still worried about the first one? i am including steny hoyer in that. >> there is saber rattling out

there. public and people around the country are looking around and seeing nothing, asking where the stimulus and jobs are. they need to make sure they get this right before we talk about the stimulus sequel. megyn: they are saying that the money is going perhaps to the wrong places right now, instead of the right places. there was pressure to spend the money and fast, maybe too much pressure? they started pushing the money into projects that would be quick, like repaving roads, it even if they were the not most needy projects. is that the fault of those many republicans who said that if you put this money out there, do it fast? >> we have suffered at the altar of shovel ready, showing that there are some fissures and challenges in trying to use infrastructure spending as a stimulus. it takes a long time where the money to move to the system,

dealing with these projects. although there was a lot of talk of crumbling infrastructure in the country, stimulus taking things off of the to do list, we found that we did a lot of stuff that was nice to have, okay to have. still, the big, hairy challenging ones are out there, even though we are in a budgetary hole not able to meet the challenges. megyn: that is big, hairy, and ugly. [laughter] thank you. >> thank you. talking about me? [laughter] bill: there is a story going on in philadelphia about currents mandated by the federal government. they are being rebuilt because they were incorrectly installed. but there's no sidewalk for them. at the intersection, you can see these sidewalk curbs with no sidewalks.

millions go to florida every year. we have live pictures every year out of clearwater, a new state law could kill tourism faster than a man on bikinis. megyn: looks like a lovely morning. bill: life-and-death struggles in the sunshine state. megyn: folks in california have a great idea to fix the budget crisis. west coast. toke it up! for

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remember the olympic figure skater, nicole bobek? look at her here, beautiful, happy times. winner of the u.s. national title in 1995. today, wait for it, wait until you see the difference, she is sitting behind bars in florida. accused of being part of a drug distribution ring in northern new jersey. 31 years old, charged with conspiracy to sell methamphetamine. this is what drugs can do to you, folks. one of the 20 people arrested, she came in 17th in the 1998 wimp -- winter olympics. now facing 10 years in prison. bill: they said turn of events. florida's tourism industry is shaking. a provision in a new bill expands natural gas drilling to waters only miles from some of their most popular beaches. phil keating is wearing sun

block in clearwater beach, florida. how close would that be the shore, phil? >> it would be way off in the distance, but potentially you could have oil raids not far away in the gulf of mexico. industry experts believe that there are potentially as much as 10 billion gallons of hydrocarbons and natural gas, much of its natural gas and oil. curly you cannot drill off of the coast of florida going all of the way 145 miles out. the key of this area in the bill is the zone just south of pensacola, said to contain two trillion cubic feet of hydrocarbon, most of that natural gas. that is why the industry has been dying to tap into this. however, the tourist industry is saying look, this could be bad for the beaches. these beaches bring in tourists

from around the state, adding up to $65 billion every year. >> the governor was quite vocal about this, publicly. he does not want to drill down there in he has made his position quite clear. i take it that the argument against it is environmental, right? >> that has been the longest argument, going back decades. most of the state lawmakers and politicians in florida have all been historically against drilling offshore. charlie crist said last year that he was possibly open to the idea of pursuing that. the main issue is not only the economy, it is becoming a national security issue. oil industry executives say that the real national security threat is that we depend on foreign oil for 60% of u.s. consumption coming from countries that are not friendly to the united states, like venezuela and other less

unstable countries in the persian gulf. however, senator ben nelson is vowing to filibuster the bill if the amendment states in because he says that the national security issue is out there in the gulf of mexico, as a training ground for the military. the navy uses the gulf of mexico for bombing runs every year. lots of training. according to senator nelson, that is the greater national security issue. bill: thank you, phil keating, reporting from the beach. enjoy your day. nicely done. we expect to hear from joe biden in a matter of moments. he is expected to announce a new deal to save us billions in health care costs by way of major hospitals. we are going to hear from mike hens, indiana congressman, expected to say not so fast. megyn: remember the little people from the wizard of oz?

they were called munchkins. that might be ok. but do not use the other m word for describing them. the dustup that involved little people, donald trump, and the fcc. that is coming up in "kelly's court." ♪ geico's been saving people money on car insurance for over 70 years. and who doesn't want value for their dollar? been true since the day i made my first dollar. where is that dollar? i got it out to show you... uhh... was it rather old and wrinkly? yeah, you saw it? umm fancy a crisp? geico. fifteen minutes could save you fifteen percent or more on car insurance.

megyn: 10:30 in the east, we are awaiting an announcement by vice president, joe biden, along with health and human secretary -- health and human services secretary, kathleen sebelius. we are expecting an announcement on a deal that was reached on the part of health-care reform and hospital groups. hospitals across the u.s. will cut $155 billion over the next

10 years, if they manage to find that much in savings, that money goes towards insuring people without health coverage. the bill: sounds good on the surface, saving money, cutting into that $1 trillion figure. what are the hospitals getting in return? what will the taxpayer get in the long run? mike pence is with me now. good morning, welcome back. so, hospitals got together to do the deal for you. $155 billion over the next 10 years. >> my response, as you suggested, would be not so fast. if, in fact, in a few moments we hear that the white house has managed to secure a commitment for $150 billion in savings,

that is about 10% of the cost of the democrats' health care plan as projected, about $1.50 trillion. the hard truth here is that we may be seeing another industry, kind of like utilities and financial firms, automobile dealers, being marched out of the white house, coming to some kind of voluntary agreement dictated by the white house. at the end of the day, 90% of the cost will be born in the form of taxing the american people. the reason that the health-care proposal is in disarray is because millions of americans like the health insurance benefits that they have today, and they know that a government insurance option and the taxing of benefits are both going to result in them losing insurance or paying higher taxes. bill: drug companies say they

are willing to save about $80 billion. taking a piece from here, a piece from their, eventually it is real money. why does that not sound like a good idea? what it appears is that the white house is getting commitments from people who have skin in the game to cut off the overall pricing. >> there are voluntary agreements, then there are less than voluntary agreements. during the days of the wall street bailout, a lot of bank executives were pulled into the previous administration's white house, told the they are taking the t.a.r.p. money. that are -- they walked out and said you know what, we are taking the t.a.r.p. money. as a limited conservative, i am not happy with the government getting commitments from the private sector. if they are savings, the good. but viewers should know that this is a $1.50 trillion plan. they are going to announce it to

a lot of fanfare and that they have found a way to pay for about 10%. 90% will be borne by higher taxes. bill: at the moment, you are not a buyer? >> not in a government takeover of health care in this country. i really do believe that the american people know that we ought to deal with the issue, we should work harder to make health insurance products more affordable and more available to more americans. we do not need a government insurance option. we do not need government takeover. we do not need to start taxing the health insurance benefits of millions of americans, which is exactly where most democrats in washington are going to go to pay for the other 90%. bill: apparently so these democratic leaders went back to their home districts over the weekend, stunned by the earful

that they got from their constituents. one of them came back and called it sticker shock. this is the taxing idea of employee benefits. even john mccain proposed this during last year's campaign. it appears that that is a major sticking point, allowing committees to wallow, turning things over day after day. when you just look at that on the surface, it seems like health care reform is a very difficult proposition. >> it is a very difficult proposition to get a government takeover of health care in america, not just through the congress but by the american people. the reality is that the u.n. group study found that the recently adjusted their numbers, projecting that there -- if there is a government auction,

about 114 million americans who currently have health insurance through their employer will lose their health insurance. i always thought that these recesses that we take are the real antidotes to potomac fever. antidotes can make sense on capitol hill, but you go home and, as we say in indiana, you have got another think coming. the white house is in disarray on the government takeover of health care because the american people are being heard in increasing measure. they do not want government run options or a mandate. no amount of window dressing on this announcement today by hospitals and the administration is going to change the fact that all those things are coming. bill: we will get the view from the left when joe biden steps -- steps to the microphone. thank you, congressman.

megyn: calif., struggling to bridge a $26 billion budget gap. the new ad campaign out there says that the smart answer is a little dope. supporters said that taxing pot could generate up to $1 billion in revenue each year. the advertisement spokesperson is a stroke victim that uses the drug maddison elite. >> the government and legislature are pushing out people who want to pay taxes. we are marijuana consumers. we want to pay our fair share. taxes from the marijuana industry to pay the salaries of 20,000 teachers. is it not time? megyn: the marijuana policy project is meant to encourage debate, not promote drug use.

the california governor had said earlier that he was open to at least a discussion. bill: we have got breaking news out of washington, d.c. officials have released a videotape showing a train operator at the local system, using a text message while operating a train. difficult to make out in the youtube image, but they say that this is hard evidence. because of that, they have suspended the driver for one week without pay. last month, that deadly train collision that some people said it was possible that the train operator was using a device on the train, no evidence has been found to support that, no evidence that the operator was using his cell phone on the job. but this evidence, they say, is hard and fast.

one week's suspension, no pay. in a moment it could be a sign that the taliban is running scared. one-third of u.s. marines in the country, a crafty way that rebel fighters fled certain death. megyn: they are mad as hell and they will not take it anymore. one word is sparking outrage in america's little people. six letters that they never want to hear strung together again. why are they going after donald trump and the fcc and of that is in "kelly's court" next. ♪ the results are in. beauty editors and research institutes are seeing results. [ male announcer ] best cleanser, essence magazine. hydrates better than the $350 cream. [ female announcer ] most importantly, women are seeing results. and still no drastic measures. olay regenerist.

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creating this bizarre advertisement for detergent. roll it. >> three times concentrated means that it is three times as strong. [yelling] >> freshen your clothes all day long with all-small mighty. megyn: is midget about to join the seven words you cannot say on television? let's ask our panel. >> good morning, your honor. megyn: all right. little people are ticked off, they want the fcc to do something about it. can they? >> first of all, i like to the commercial. was kind of funny. megyn: they do not. [laughter] >> i do not think that it was the commercial itself, it was

the use of the m word over and over again leading up to it. megyn: they do not like the commercial either, they have a problem with it. >> ok, they have their little convention -- i think it was in brooklyn on sunday? they passed this resolution that they do not want to use the m word anymore. people jump to being overly sensitive, but who is it who decides what words we can use and not used? women's groups decide which words are appropriate for women to be referred to. italian americans say that they do not want to recall this or that. people with disabilities say that we hate the world crippled. -- the word crippled. megyn: but that is political correctness, not a lot. there are lots of firms for

women that are derogatory that you can say on television. for the sec to ban a term that i think a lot of americans had no idea was considered offensive. >> the answer is no. the answer is not adding more words to a list of take the free at of free speech. -- the answer is not adding more words into a list that will take the free out of free- speech. this is just how they feel about the issue, that is if. stop calling them that phrase. my problem is adding more terms to the fcc list, when will it stop? plenty of people are lining up. homeless people want to be called roadside unemployed. >> [laughter]

by their request, they are raising the visibility of this topic. >> absolutely. good for them. megyn: but this came up in the episode and watch what happened. >> let me ask you a question, is it really little people? is midget offensive? >> not to me. >> there you go. >> this is it. megyn: on the episode in question, this guy does not find it offensive. i know that he is just one, but do these little peoples before all little people? >> family bought from me, if i told you today how many times i heard the n-word near the school i live, it would blow your mind. but if you ask al sharpton if they should be using that word, you -- they would say no.

you cannot take a small sample like that. it is the same thing. the people involved in the association and have thought about this have said that this is hurting, we won this stopped. >> he makes a good point. you are never going to find everyone in aid articular group agreeing. i was recently called out by someone i have referred to as african-american, they said they were not from africa, do not call me that. not everyone will agree to a particular term. if an effort -- if the organization gets together and says this is what they want, we need to educate. megyn: is wanting to honor the request, once you know -- it is one thing to honor the request, once you know. >> no fcc. megyn: perhaps even suing, which they have not yet done, donald trump or the show. arthur, i am confused as to why

this show in an episode caught the ire of the little people so much -- why this show and this episode, the ire of the little people so much. who could forget "jack s."? how does this not get phone calls? >> just like everything else in history, why have some things been made permissive? you used to be able to call women and italians surnames, then there is a straw that breaks the camel's back. nobody calls and rudy giuliani a guinea, but somebody said that to mario cuomo in 1992. now you would say that. megyn: not a nice term, but that word is allowed to come out of your mouth. this group wants to ban it. they want to make it one of the seventh words you cannot say on

television. i would like to say that now that we know, we are concerned. but people might say midget on the air, they might have no idea how offensive it is. then to be slapped with a fine? >> good for you, good for putting it out there. i have told a lot of people. word is getting out. the suggestion that the fcc should add this to the list, absolutely not. >> it will not be added to the list, but they are shooting high. they are shooting high to raise awareness. they are accomplishing their goal. i agree, it will not get on the list, they had to shoot for the stars and if they just reached the moon, they were successful. megyn: well put. little people have little chance of winning any claim against the fcc. as of now, midget is not a ban the term.

using it on television is not a problem legally. the push with the fcc will likely fail, since regulators are normally very reluctant to slap free-speech regulations on broadcasters. having said all that, their push for big public relations on the issue is their best car, and i feel we have done our best to help. bill: little guy, huh? remember this story, the u.s. government -- reaching into the far reaches, not just here, but in south korea as well. overwhelming several institutions, targeting the white house, pentagon, and new york stock exchange, homeland security, nasdaq, washington post, the list goes on. many of these organizations were able to keep the attack from penetrating their computer systems. this news is just breaking across the wire.

we will have more information for you on this after the break. also, megyn? megyn: investigators are hitting a wall on the more -- murder of steve mcnair and his girlfriend. we will tell you why the evidence might not be adding up. . .

megyn: police investigating the murder of former quarterback steve mcnair says the lack of evidence is hurting the investigation. a 20-year-old mistress, saleh kazemi, lay dead next to him with a single gunshot wound to the head. police are suggesting a murder-

suicide, but now they say they have their doubts because friends and family of the waitress say that she showed no signs of suicidal behavior. police say ballistic tests showed that the gun was owned by kazemi. bill: apparently she committed suicide and the gun was under her body. how does that happen? a federal judge has given ruth madoff her wings, ruling that she can get her passport back. she surrendered her passport last year as a condition for her jailed husband. we are on top of this story. are we to interpret this to mean that she is free and clear of legal implications? >> for right now. she could still be charged.

the door is always open for them to come back and charged mrs. madoff should they implicate her in the crimes. bill: they took the penthouse and all the items inside. what do they plan on doing with it? >> the u.s. marshal actually has the job of selling off their assets. eventually, the property is turned over to a real-estate agent who put them on their website. you can go to the u.s. marshal website to see what they are selling now. bill: ultimately, the money they get from that will be doled out to the attorneys and victims? >> no, it goes all to the victims. in this case, the money collected by the sale of those assets will all go to the

victims. bill: duly noted. thank you. megyn: it was the moment that captured everyone's attention during michael jackson's memorial. his 11-year-old daughter taking the stage and breaking out in tears. why that moment is causing some controversy. one hundred potato chips, or one hundred pringles.

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has been the best father you can imagine. i just wanted to say i love him so much. megyn: that was a heart wrenching moment at the michael jackson tribute yesterday. now it is causing controversy because some are arguing if it was staged and if she was asked to do that by the family. lots of people tell us that it was in poor taste to allow the child to take the microphone i was watching -- take the microphone. i was watching. when she starts to break down, you start to see and come in to adjust the microphone for her. she starts to break down in tears,