a row. [laughter] steve: when are you going to sleep? >> when i am done. gretchen: blog on to our website to watch the after the show show. thank you for watching the show today. brian is off to the radio. we will see you tomorrow. [captioning made possible by fox news channel] megyn: captioned by the national captioning institute --www.ncicap.org-- we are waiting for remarks from the president of the united states -- megyn: we are waiting for march from the president of the united states on the passing of an icon, senator ted kennedy has died at the age of 77. you are looking at live pictures of the kennedy compound in cape cod. he died there last night after a yearlong battle with brain cancer. the last surviving brother in a political dynasty, his political career spanned 50 years.

an impressive list of achievements, working all laws that affect health care and civil-rights, his main passions. good morning, everyone. there is a lot happening this morning on that health care debate. town halls, cia probes, we will have it all for you momentarily. but the senator's death tops the news today. gregg: reaction is pouring in from all over this morning. the british prime minister, gordon brown, saying that senator kennedy will be more and not just in america, but on every continent. megyn: major is live from massachusetts with more. good morning. we expect president obama to speak on the senator's passing. put it in perspective for us. this senator was key to this president's election.

>> absolutely, good morning. we are at the oak bluffs elementary school. my camera man is going to move the camera so that you can see that the flag is flying at half staff. they are flying that way at the u.s. capitol, all over martha's vineyard, part of a symbolic tribute to, as you said, a senator, a legislator, someone who left a mark not just on american politics, but on this particular president. you asked about logistics', we expect the president to take the microphone at 9:30, his remarks will be about 10 minutes long, talking about his own personal feelings for senator kennedy and placing his death in the ongoing and raging debate in america on health care. we have seen that ted kennedy was an inspiration to those

fighting right now in america for health care reform. the democratic national committee has announced that they will pay tribute to ted kennedy next month at their party's national meeting. a historical footnote, it was 1970 when he ran with lyndon johnson. next month, the democratic party will pay tribute to ted kennedy. put it this way, when barack obama had his political coming out party, it was in ted kennedy's backyard. of course, the junior senator from the commonwealth of massachusetts, john kerry, was the nominee. but barack obama made a huge splash in boston. ted kennedy endorsed barack obama, choosing him over hillary clinton. another senate colleague, someone he knew well, he knew it was time to move to a new

generation of liberalism and someone with political activists and toughness. megyn: you have captured -- covered capitol hill for almost 20 years, you have followed the career of senator ted kennedy. when he endorsed barack obama, it was interesting, he campaigned on his behalf, it was seen as a passing of the baton from one liberal icon to the next. however, ted kennedy, over the course of his career, has worked across the aisle, he has been a bipartisan lawmaker, even though he has been very proud of his liberal stripes. >> that is quite right. as we talk about ted kennedy and his legislation over health-care reform, looking at his career there are two pass that could be followed. one, be very aggressive in your liberalism, pronounced in your belief in another direction.

or you could choose the path that he chose when he was forced into political compromise, like in 1996, working on health-care reform to make affordability more of a reality. an example of how he worked with republicans on health care, something the democrats might think about going forward. megyn: it will be interesting to see our current president follows that example. we will more when he speaks at 9:30. thank you so much. gregg: california gov. arnold schwarzenegger is honoring ted kennedy as a dedicated lawmaker, and through his wife schwarzenegger knew him as an uncle. noting that "most importantly, he was the rock of the family, a loving husband, father, brother and uncle. he was a man of great faith and character. to him public service was not a

hobby or even an occupation, but a way of life." megyn: senator kennedy has a huge list of legislative accomplishments. laws that you might not have any idea his fingerprints were all over. i guarantee you that he has changed your life in one way or another with the laws that he has pushed through. throughout the next hour, interspersed with other news, we are going to show you some of the items that he pushed through a u.s. senate, beginning with this one, the family and medical leave act of 1990. he wrote that bill with chris dodd, requiring businesses to provide unpaid leave for their employees in case of family emergencies or after the birth of a child. when you get to go on maternity leave or you get to take care of an era -- ailing relative, that employer is required to give you time off. that has the senators fingerprints on it as well.

was signed into law by senator clinton. -- president clinton in 1993. gregg: whether you stood on the same ideological flame with him or not, his colleagues -- ideological plane with him or not, his colleagues said that he knew how to get legislation passed. with us now, our fox news contributor juan williams. good to see you. for all of his idealism, he was a pragmatist. in the survey from "the hill," 2009, his colleagues said that he was the easiest guy to work with across the aisle. that he was the most bipartisan of all. restriking. >> yes, because it does not comport with the national image. so much of his rhetoric could be over the top in terms of being so pronounced in his

liberalism. look at his recent legislative accomplishments. you were talking about his fingerprints being done so much that touched our lives, but when he had the medicare prescription drug plan, at his biggest democratic ally in that effort, it was near in dear to my heart. when you think about no child left behind, ted kennedy was willing to expend political capital to take on the teacher'' unions in many cases, insisting that no child left behind go into law. he was able to drag his democratic allies along. otherwise george bush would not have had a victory there. gregg: his oratory was quite memorable, from heart wrenching

eulogies to the rousing convention speeches. but juxtaposed that without he was extemporaneously. i remember well, 1979 and roger mudd. holding in a rambling when asked why he wanted to be president. -- halting and rambling when he askasked why he wanted to be president. how could he fumble this quintessential moment? >> he had great political advisers that could, in and help him with the prepared -- that could come in and help with prepared speeches. but oftentimes he had great difficulty because people gave him so much leeway. stop and think about what is best to say even at this

moment, this defining time in his life -- his brothers had been assassinated, it looked like there was a clear path for him to go to the white house. chappaquiddick happens, he says that he did not do anything wrong. then he should have called in earlier to the police. a lot of people got turned off in that moment, as he did when he challenged jimmy carter in 1980 for the nomination. it seemed as if for many people -- he is ted kennedy, he should have the nomination, but he could not answer that key question. where was the fire in the belly? gregg: i remember it well, there was a movement for him to get the nomination when his brother was assassinated. he might have been president at the age of 36.

that could have changed history dramatically. how much of a personal burden was placed on his shoulders from the political triumphs and tragedies of his brothers? >> it is incredible to stop and think about it. one of the images seared into my mind is that he became the patriarch of the kennedy clan. the entire family. stop and think about that. all of those other families, even when john f. kennedy's son died, there was ted kennedy to had to come out and deliver that eulogy, talking about -- he said that the irish have a thing, imagining john john with gray hair. my gosh, that was his job. when it came to tragedy and trouble in that family, it was all on him. think about the idea again, in

the political sense, that he was supposed to live up to his brothers. that he was supposed to be as good. then he got caught up in chappaquiddick, leading to some of the dysfunctional behavior that people began to mock. gregg: he told reuters, "i think about my brother's every day." on williams -- juan williams, thank you very much. megyn: of course, then there was joe kennedy. the oldest of the four brothers, he was killed in world war ii. ted kennedy was the youngest. as each of his brothers died a violent death, the calls came on him. i read in "the new york times" this morning about how close he was to bobby kennedy. it made an interesting point, his press secretary said that

he saw ted kennedy leaning over with the most awful expression on his face when the news came down. much more than agony, of "more than anguish, i do not know if there's a word for it. that man, like all of the kennedy brothers, went through so much." it became a way of life for the kennedys to deal with these untimely deaths. gregg: he had very broad shoulders. megyn: he was the only kennedy brother of those four to live into his '70's. in other news, the congressional budget office yesterday said that the national deficit is set to skyrocket by 70% over what was expected six months ago. that is not the whole story. three very scary things that the media is not telling you about how big the deficit numbers to get, just ahead. gregg: constituents were not the only one getting passionate at john mccain's town hall

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>> did anybody here get invited to the white house for a deal lately? [laughter]

the pharmaceutical companies, who have done everything they can to block generic drugs, which are much cheaper. now they want no competition of the lowest price and the white house will adopt a policy for blocking the importation of drugs from canada. by the way, they are reportedly spending $150 million in advertisements supporting, guess what, the democratic bill. if that does not make you cynical, nothing will. we have got to take back our government from the special interests. megyn: john mccain yesterday offering scathing criticism of a white house deal with pharmaceutical companies, with big drug companies in the united states. it reportedly cut drug costs by $80 billion over 10 years, but now the whole thing could be settled by democratic

congressman henry waxman. shannon green is live in washington, helping to sort this out. first of all, what is the deal, exactly, between the white house and the drug companies? >> it is hard to know real details, most of them have not been released. the white house did not want to talk about this a couple of weeks ago. the memo floated into the open that was supposedly a document that outlines and $80 billion deal that the white house made with pharmaceutical companies. when pressed on it, robert gibbs would not get into details, but it was clear that something had been worked out between those groups. the white house is now saying that they are going to pay out to consumers out there. megyn: in the stand that the details are scandalous, but i do not understand the outline. decreasing competition so that they can maintain certain prices and they will give money to

advertising for health care reform bill promotion? >> they also say that there will be savings build into the $80 billion deal. that they will be stepping in to that so-called dole not hold that exist in medicaid coverage, helping people out by discounting drugs it for seniors and other people. they say that they are building in savings, which the white house says will be great, but you can imagine that there are plenty of critics that want to know the details. megyn: quickly, as we are up against a heartbreak, what is waxman doing? >> looking back to 2006, 6.5 million people were moved out of medicaid programs for the poor. drug negotiations for crisis changed radically. their prices were much higher. he said it was a big windfall for the drug industry, and he wants that money back. they could kill the deal if

henry waxman gets his way. megyn: thank you. gregg: grim numbers on the federal deficit coming out yesterday, but they may not show the full extent of the whole we are in. a huge crater. three scary things that the mainstream media is not telling you, next. (mom) soon, we'll be doing homework, getting up early, packing lunches and running for the bus.

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bill: we had a -- gregg: staggering new numbers on the federal deficit. congressional been counters, revising their forecasts from earlier this year, saying that the deficit that they expected to total $4 trillion over the next 10 years is going to total over $7 trillion. do you not know what is the scariest thing? that estimate is too rosy.

it has pie in the sky savings that will never happen. stuart varney, he has information that the mainstream media will not tell you. one line from "the wall street journal" editorial board, "many of these current projections are laughably implausible." >> before you except $7 trillion or $9 trillion, check these assumptions. they assume that the government rate of spending is going to increase in line with inflation. tough to accept that one, they are already talking about an 8% increase. no. 2, they assume that there are going to be huge cuts in head start, food stamps, child nutrition programs. third, funding for child nutrition? that government spending cut is not likely to happen. 28 million americans are supposed to go into the

alternative minimum tax. that is what the minimum is based on, experts revenue. it is not going to happen. democrats say that they will not allow it to happen. add it all up, assumptions do not work in the $7 or $9 trillion range, and these numbers are laughably low. gregg: we have known all along that the white house was using fuzzy math. they issued a vague statement yesterday saying that the president was equally concerned about these deficits. why is he pushing a $1 trillion entitlement program? why has he ordered this immediate and automatic spending freeze? >> i cannot answer the question. i do not think that he can back away from the spending that is in place. $3.60 trillion for the new budget.

you cannot back away, not from the term that has been occupied. gregg: thank you, stuart varney. megyn: a special prosecutor has been appointed to investigate cia interrogators. that is the same department that approve them to use these methods in the first place, but now there is a new president in time -- town. is this just about politics? are we putting national security at risk? also -- [yelling] gregg: the passionate opposition at health care meetings has been classified as an american and crazy -- one americanu onenamerican -- unamerican and crazy.

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gregg: lets look live on the right side of your screen. these are live pictures from the nation's capital, the flag is flying at half staff. honoring the lion of the senate, ted kennedy. a powerful voice, now silenced. orrin hatch said "today america out lost elder statesman and today i lost a dear friend." ted kennedy was a larger-than- life united states senator whose influence cannot be overstated. many will come before, many will come after, but his name will always be remembered as someone who lived and breathed the united states senate. let's go to carl cameron, live from capitol hill. >> his accomplishments are legendary, he spent 47 years in the senate.

barack obama was 1-year-old when ted kennedy actually first took office in 1962, a special election to fill the seat that his brother had vacated to run for election. such were the beginnings of camelot. no one offered his legislation or had his name on more bills except for james madison, going back to the founders of the country. just to take a look at highlights, in the early part of his career he was directly involved in getting a national teachers' corp. pact past. the job training partnership program, which he worked on with dan quayle. one of the early parts of bipartisanship. senator kennedy, i would like to point out, the americans with disabilities act was a part of his efforts. early on he was one of the

liberals to be the attack against robert bork. he was, during the clinton years, particularly busy. he helped to pass americorps, the family and medical leave act, and a health-care bill that began the process of establishing medical savings account in dealing with such controversial issues as affordability. during george w. bush's administration, ted kennedy was directly involved in health care proposals, a leading proponent of the leave no child behind act. working on both sides of the aisle, senator edward kennedy's name is literally on some of the most important legislation in the last 50 years. he was involved in the civil rights debate, the list goes on and on.

gregg: what a career. thank you, carl. megyn: president obama says that he wants to move forward and not look back when it comes to looking at cia operatives engaged in harsh interrogation techniques. apparently eric holder did not get the memo. he said that those who interrogated certain suspects will be investigated themselves. perhaps even prosecuted. critics say that this could leave the country in danger. this morning, panel. >> good morning. megyn: this has become a rough issue for a lot of americans. whatever your feelings about what the cia agents did, folks are worried about national security and they do not want the cia to be in a position where they do not want to

interrogate al qaeda suspects because they're worried that eric holder or some future attorney general is going to prosecute them. >> his initial instincts were correct about looking forward and not looking back. having said that, whenever eric holder brad must have been pretty severe for him to do this. -- whenever he read must have been pretty severe for him to decide to do this. let's remember, political appointees of the bush administration appointed this, when the political -- career appointees opposed it. megyn: they look at this and said that no investigation was warranted and that the cia was doing an adequate job of self policing, turning over one contractor for prosecution. those career prosecutors already said that the investigations are not appropriate.

>> that was five years ago. in april 2009 a iraq holder said that it was not fair to prosecute men and women working to protect the safety of americans -- in april of 2009, eric holder said that it was not fair to prosecute men and women working to protect the safety of americans. why is the obama administration so concerned with appeasing the far left? clearly they have not learned of the mistakes of the clinton administration. if you completely go to the left, there is nowhere else to go. so, the left is going to cheer and the right is going to go bananas and everyone in the middle is going to have to take a side. obama is going to lose this fight. when i hear democratic strategists on television starting a whisper campaign that he does not want this, he knee -- he needs to come out and say that. megyn: does this smack of

politics? i have read the articles about what the interrogators' allegedly did, threatening to kill the children of the terrorists -- i think that most americans than hear that would say ok. -- most americans and that here that would say ok. -- most americans that here that -- hear that would say ok. >> these decisions were not based on the cia's internal investigation, which has recently come to the surface. some kind of information has come across the desk of eric holder since those people made that decision. when i said that the career lawyers did not think from the beginning that a lot of this was something that could stand up to scrutiny. having said that, i think that the point is that these cia operatives should not be the ones put on a limb. if we are going to investigate,

we have got to go right to the source, including dick cheney. if we are going to investigate it -- of one cia operative has to get trouble for -- have to get in trouble for this, the vice-president needs to go down the walk with him. >> you said that you agree that we should look forward and not backward. from a political standpoint the obama administration knows that when it goes against the bush administration, it wins. now they're looking to start a food fight. >> this is not a winning political situation. look, if the call were based purely on politics, the right call would not be to do this. but the fact of the matter must be that there is information that i do not know about and we do not know about. you talk about national security. if we are a cart -- if we are a country of laws, it would be a difficult thing for me to assume that this should go by. >> you are assuming that what they did was illegal. >> i am not assuming anything.

i am assuming that there is an investigation. megyn: it is a good point, if you are going to go after anyone, should we not go after the policymakers? these operatives were going and doing what they were told. how can they be prosecuted and the people that made it okay were not? >> that is assuming that this was a legal. megyn: no, it is saying that if you are going to go down this route, why start with people taking the orders? >> exactly. barack obama said that he wants to keep the identity of the officials say. the left went crazy when valerie claim costs identity was leaked. -- valerie claim's identity was leaked. why share this information with enemies that are laughing hysterically? they hated us before, they will continue to hate us a matter what we do. >> i might add that the names --

>> and now they -- megyn: quickly. >> they are public, dick cheney and gonzales. megyn: the record of eternity, no thanks to these terrorists. we can all agree on that. thank you both for being here. gregg: this story has got legs and will go on for a long time. megyn: this is really terrifying. you can have their names getting released, having al qaeda forces know exactly who did what, who was doing the waterboarding? we will see if they can withstand the pressure. gregg: we found out that the report concluded that these interrogations' save lives and foiled plots. new details on your stimulus dollars of work. thousands of federal check's going to massachusetts residents. one problem with this?

by are all residents of the state prison system. megyn: [laughter] so wrong. how will the passing of ted kennedy affect the effort to get a health care deal done in washington? possible changes, just ahead . ♪

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employee health benefit plan -- i am in shirred the -- en insured by the federal employee health benefit plan. i want to preserve it. gregg: seem to be more jeers than cheers at that town hall last night. the senator was a longtime advocate of health care reform, his death could be a major blow to the plan to overhauling the health-care system. his guidance could be missed as his colleagues worked to hammer out a deal that works for all americans. joining us with more on that now, senator john breaux. thank you for being with us. the next health care meeting in

america, a very divisive issue. the very issue that senator kennedy seemed to care the most about. how does his passing effect that debate? >> it is a very tragic passing, both personally for the family and those that knew and loved him, but also a tragedy for those that want to get health care reform passed. he was able to bring people together. i remember specifically, the prescription drug program for seniors. had he not addressed the more liberal members, supporting the program, it would that have happened. he had the unique ability to reach out to people. he would come to my office when i was a freshman senator and talk to me about health care. he would come in, sit down, work with freshmen senators and republicans. he will be sorely missed in that

debate. gregg: democrats are going to need every single vote to get legislation passed. senator kennedy might have capped the last vote, if it came to that. how does that change the equation of actually getting something passed? >> obviously it makes it much more difficult. some people argue that the democrats had 60 votes. senator byrd is absent, senator kennedy is absent, so there are really 58. a number of the democrats are not voting for the so-called public option. senator kennedy would have been able to work out a deal, a legitimate compromise between the two versions. he would have been able to attract moderate democrats and keep the base of liberal democrats intact. he was also able to reach out to republicans who were willing to work with him because they knew that he wanted to get something done. he was all about getting

something done. it was a real privilege to have the opportunity to serve with him. gregg: very quickly, it invites the question -- perhaps the only alternative is budget reconciliation? a straight of vote in which they need 51. under the rules as i need them, you have to prove that there will not be substantial government spending. how can the president sign such a bill since he has vowed it will be deficit neutral? >> i do not think that democrats should want to pass a democratic only bill. he won bipartisan support, as we intended, shared credit. i think that you would want republicans on board as well. there is still a chance to take the finance committee version and pass it in a bipartisan fashion. gregg: thank you.

megyn: medical clinics in the northern united states are getting a lot of business these days from canada. a new look at the canadian version of the public option. possible dramatic changes to the post office. racheting up slowly ) ( whooshing, riders cheering )

megyn: supporters of government run health care site canada as an example of how it could work. if it is such a good model, why are canadians making deals with u.s. hospital to get their treatments here? corrina, why do canadians not

just use their own hospitals? >> we went there ourselves to ask that question, but just over the border of michigan. doctors say that it is not that they cannot handle the patient volume, but like many smaller cities they do not have the number of specialists that in need. when a patient has an untreatable patients, it is protocol to send patients to the nearest big hospital. they put a call into homeland security, faxing over the paperwork, allowing the ambulance to skip the customs line and go straight into the united states. they can be in detroit in about 20 to 30 minutes. megyn: how many hospitals have this agreement with the canadian health agency? >> we are told that there are 13 hospitals in the state of michigan, new york, minnesota, and ohio. they cover a wide range of

emergencies, even neonatal. the cost for sending a patient over the border is paid by the canadian health system. there are also patients that used to come to the united states at their own expense to have things like surgery paid for because, as an example, in canada if you need geriatrics surgery performed, you could put -- you could be put on a waiting list. many canadians choose to pay for it themselves. megyn: we had a woman on the air that had a brain tumor, she was going to have to wait several months. instead she took out a 7 -- second mortgage on her house and got surgery that week. they told her that it was life threatening and that she would have been dead if she had waited. do canadians like this agreement? i assume they like the option of being able to use american hospitals. let the canadians that we talked

to said yes. we talked to a 61-year-old patient that went to the hospital that we were telling you about. he found out that he had severe artery blockage and that he needed an angioplasty. he was in detroit two hours later. the hospital for $40,000 was paid for by the ontario ministry of health. he is one of those patients that is very pleased with health care in canada. megyn: many canadians are actually worried about what will happen to the american health- care system, because they have become a part of it. thank you for the update. >> you are welcome. gregg: a new poll shows that a majority of average americans think that they have a better understanding of the health care reform bill in congress. when asked how you would read your understanding of the president's health care reform proposal, 19% say excellent, 32% to excellent, only 20% said they

had a poor understanding. as for how boaters great congress's understanding of the plan -- as for how the voters rate the congress's understanding of the plan, 35% said poor. that may be because they have been watching fox news. megyn: fox news alert, there is a reason that we are shelling -- showing you this empty field, the president is about to make remarks from this field about the president of ted kennedy. our president is on vacation in martha's vineyard, but word came down last night that senator ted kennedy had died after suffering from brain cancer. the battle that lasted for several months and his life was prolonged considerably, but the prognosis was grim.

president obama, with some remarks. >> i wanted to say a few words this morning about the passing of an extraordinary leader, senator edward kennedy. over the past several years i have had the honor to call him a colleague, counselor, and friend. even though we had known this day was coming for some time now, we awaited the day with no small amount of dred. since his diagnosis last year, we have seen the courage that has brought him here, knowing how much that he went to -- how much he meant to all of us. the blessing of time that we were giving to it -- that we were given to say thank you and goodbye. the outpouring of love,

gratitude, forgiveness complex his ideas and ideals are stamped on the laws reflected in millions of lives, for families that new opportunity, for children and now the promise of education, in all that can pursue their dream in an america that is more equal and more just, including yourself -- myself. the kennedy name is synonymous with the democratic party, at times the target of vicious campaign attacks. in the senate, i can think of no one to engender greater respect for affection from both sides of the aisle. his seriousness of purpose was perpetually matched by humility, warmth, and bashir. he could passion of the battle

others and deep -- do so carelessly on the senate floor -- peerlessly on the senate floor. he became one of the greatest centers of our time, one of the most accomplished senators to ever serve our democracy. his extraordinary life has come to an end. the extraordinary good that he did lives on. for his family, he was a guardian. for america, he was the defender of a dream. i spoke earlier this morning to his beloved wife, vicki, a hutu the and was a wonderful source of encouragement and strength. our thoughts and prayers are with her, his children, his stepchildren, the entire kennedy family, decade's worth of his staff, the people of massachusetts, and all americans who, like us, loved ted kennedy.

[captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- megyn: there you have it. brief and poignant, the president's remarks on a colleague and friend, senator ted kennedy. it was a stunner when he endorsed barack obama over hillary clinton. the kennedys and clintons had been closed for some years. the clintons had received a lot of support from the kennedys. it was a political shocker and an important moment in his campaign for the presidency. some say that it gave him the momentum they needed at the time. the president paid tribute to his friend of their in front of the microphones, while on his vacation. "he picked up the torch of his fallen brothers, becoming the greatest u.s. senator of our time. " that is where we begin here on

this wednesday. gregg: good morning. they had a close relationship, and it has been written at the very first person that senator obama met with was senator ted kennedy. when he was thinking about running for president, the first person that he consulted for advice was ted kennedy. megyn: why not? he was the lion of the senate, a line of the democratic party, if you were seeking advice who else would you turn to? the two men were very close. of course, they were crucial allies during the president's bid for the oval office. live from the kennedy compound is our own molly line. what is the family saying this morning? >> the family has released a brief statement about the passing of senator ted kennedy, saying that he was a father,

grandfather, uncle, having many different roles that he has played out in his life. he was just 36 when his brother robert was assassinated. he took on the role of being a father like figure to a dozen nieces and nephews. the kennedy family saying that they have lost an irreplaceable center to their family, but that his faith, optimism, and perseverance will live in their hearts forever. he always believed that our best days were still ahead, but it is hard to imagine any of them without him. greg out what is happening at the compound right now? i realize that it is quite early, but surely plans have been constructed over the last several months for the funeral. are you hearing anything at all about that? >> nothing regarding memorial

services or funeral services, but this is normally a quiet neighborhood. the senator would walk along with his dog, often seen out on his boat along the harbor. he was a very familiar figure in this neighborhood. to a certain extent, the neighborhood still has that feeling. there are still kids going by, neighbors walking dogs. we get a sense for how much they care about him and how much it was a part of the community. of course, people are stopping by with flowers and balloons, expressing their wishes. gregg: thank you. megyn: senator kennedy had his stamp on virtually every piece of legislation that dealt with civil-rights, health care, immigration and education for the last several decades.

like his politics or not, this is a man who got things done. kennedy served with 10 presidents. bill hemmer and i were there when he made a rousing address at the 2008 democratic national convention. >> as i look ahead, i am strengthened by family and friendship. so many of you have been with me in the happiest days and the hardest days. together we have known success and seen setbacks. we have never lost our belief that we are all called to a better country and a new world. i pledge to you that i will be there next january on the floor of the united states senate.

[applause] megyn: senator kennedy was there to see barack obama win the presidency and win the nomination. sadly, he did not live to the end of his first term, as i am sure that they would have both light. but he fought that disease valiantly. no matter your thoughts on senator kennedy, that man was a public servant. he served this country for the majority of his life, which is much more than most people do. look, some folks are saying, you are not mentioning the other parts of his legacy. he pleaded guilty to abandoning the scene of an accident, something that later derail his presidential hopes -- that is a

part of his legacy. but the major part of his legacy is the service that he provided to this country. the legislation that he was behind, working across the aisle to get critical pieces of legislation passed, like civil- rights legislation and voting rights acts, all of which were trail blazing at the time. many of these pieces of legislation did not have public support. that needs to be remembered today. gregg: a lot of americans of their paychecks to him. he made a great many mistakes in the pay dearly for some of them. tragedy seemed to stop the family of the kennedys, beginning with the eldest son -- presumed to be the political star of the kennedy dynasty, joseph kennedy jr.. a pilot in world war ii, killed

on a bombing mission in 1944. his airplane exploded before he could get to the target, he was only 29 years old. of course, everyone knows what happened to the king of camelot, john f. kennedy done to down by an assassin's bullet. -- gunned down by an assassin's bullet. his younger brother, bobby kennedy, fatally shot during a campaign event at the ambassador hotel in los angeles. he had just won the primary, bobby kennedy was 42 years old at the time. probably most difficult for senator kennedy to face, the tragic death of john kennedy jr., john john as he was called a growing out, was killed when his airplane crashed in 1999.

his wife and sister-in-law were also killed in the terrible accident. there were other losses, to be sure. his sister was institutionalized, his other sister kathleen was killed early in her life. megyn: for nearly five decades it was his home away from home. today on capitol hill the flag is flying at half staff, serving as a reminder that the lion of the senate is gone. a close friend of his four years, a french ship that began by accident back in 1983, cal thomas is with us. good morning to you. >> good morning. megyn: i love the way that your friendship began back in 1983. tell us. >> i was the vice president of jerry falwell's organization at the time. the computer accidentally sent him a moral majority membership

card. i ask -- ask if they could get the membership card back -- they ask if they could get the card back, but he wanted to visit the school. it was an incredible evening in 1983. it was the day of the martin luther king national holiday debate. i was in the gallery for that, he was squaring off against jesse helms. we got on the private plane and flew down there. there must have been 5000 people in all, all the networks and newspapers sent their top political reporters. neither one of us compromised our values. we have learned that in washington friendship should transcend politics. many people hate people in this town because of political positions, but ted was better than anyone -- as said by many

people prior to my appearance today here -- i am reaching across the aisle. he never compromised his principles, but he was able to prince of -- compromise to advance his agenda. consumers could learn a lot from him -- conservatives to burn a lot from him. megyn: people watching today that may not have liked how he conducted himself when it came to passing laws and his policies, what is your message to them? what do you want them to know about this man, politics aside? >> he has suffered more tragedy than any other american, in many ways. i do not know how many people could live with two brothers being assassinated and threats to be no. 3. he lived with that all the time. i saw him walking around the senate by himself.

i remember a dinner that the wife had a few years ago in northern -- northern virginia. he took us down a long haul in his home, showing us pictures and letters. he was a political junkie. he was kind to people. a lot of my christian conservative friends and loved to denounce him, but i wonder how many actually prayed for him. he had desires like anyone else. i came to love him as a person. megyn: that he came to enact charity in ways that he would not have ever wanted credit for. >> that is right. he would do things for inner- city schools. in washington, d.c., a terrible public school system, he did a lot for that.

he did not put out press releases, he gave out of his personal fortune to causes and people that no one knows about to this day. when you do that, when you do not put out a press release, that says a lot about someone as an individual. megyn: by the way, that last picture was of cal thomas and ted kennedy -- you had a mustache back in the day. [laughter] >> i grew it to make me look older and it worked. i shaved it to make myself look younger, 95 new york women have said that it worked, so i will not go back. megyn: [laughter] cal thomas, thank you so much for coming on. >> thank you. megyn: you can go to our website, on the homepage we have a special senator ted kennedy second. you can click on the link to

have a look at the senator's life. there is an interactive timeline, you can scroll through his childhood, his run for senate -- is very fascinating. you might not even know about all that he came through before he became the public figure that he was. all of the moving around that he did as a child, private schools, boarding schools -- he said that it helped him to get out there in the public and become more social, really helping him in his run for office. gregg: absolutely. swine flu fears are hitting hard coast-to-coast. administrators not taking any chances, students getting out of class because of the blood? class is coming to them in a live report. the air is sweet. and zyrtec® starts... relieving my allergies... 2 hours faster than claritin®. my worst symptoms feel better, indoors and outdoors.

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coverage. [yelling] so, that means -- you [yelling] so, that means -- [yelling] gregg: none of the bills actually limit it to the uninsured. apparently the audience knew that. sparks were flying in virginia over that health care reform town hall meeting. from last night's meeting with jim moran, his constituents and former presidential candidate, howard dean. updating a fresh round of town halls getting underway. by a manual is live in washington with more. there are more town halls today, members of congress bracing themselves for equally tough

reactions? >> i think that when you look at the congressman jim iran and event -- jim moran event, he took an earful. let's listen. >> the legislation as an important provision that has energized people across the spectrum. a provision that does not seem to be fully understood, but could do the most to bring down long-term medical costs. and to adequately insure every american. that is the so-called public option. [yelling] >> clearly, strong feelings on both sides using that terminology. members of congress, be prepared. talk about a government auction, you might get an earful one way or the other.

gregg: republicans are also getting a hostile greetings at times. john mccain got one on comfortable response yesterday, tell us about that. >> one woman was upset with government spending, asking that the president's understand we live under a constitution. >> i am convinced that the president is absolutely sincere in his beliefs. wait a minute, he is sincere in his beliefs. we happen to disagree. he is the president and we should be respectful. >> while senator mccain was back in campaign mode talking about friends, it was an unusual spot in defending the president. gregg: thank you, mike. megyn: the stimulus package is supposed to get america spending again. now, should some of that spending start inside of the prison system? that is right, we will show you

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gregg: nasa is scrambling to solve a fuel valve problem on the shuttle discovery. take a look at it on the pad. problems forced them to scrub the second launch attempt yesterday. engineers are planning to take a closer look at the problem. another launch attempt will be at 12:22 pm eastern on friday morning. for you insomniacs. there will be another opportunity just before midnight.

megyn: the fall is just around the corner. can you believe that? can you believe that august is almost over? stunned, what happened to august? what happened to summer? gregg: i want to go back, i want a do over. megyn: kids going to college, football, and the threat of the h1n1 swine flu outbreak. great, another thing to worry about. college kids are among the most vulnerable. what happens if lot -- large chunks of the student body get sick? peter is live in our newsroom. all right, if there is an outbreak on campus -- at home? school is over? >> even if the campus is closed, classes will continue in a lot of places thanksgivings called distance learning. if your school says do not come in because we are trying to stop the spread of h1n1, just get to a computer.

logon to the web site and you can watch professor's lecture, read notes, and take tests. i remember when i was in college if class was canceled, you got out for free. megyn: you mean four months ago? >> yes, four months ago. [laughter] no more free days. megyn: are you telling me that the kids in your school, you get this alert -- stay home because h1n1 n, but you can catch the class on line? you would have done that? >> we are not talking about me, we are talking about the kids who are faced with a very scary swine flu problem in the fall. many of the kids that we talked to, look, colleges expensive and times are tough. most people are grateful to still be getting their money's worth, even if the swine flu shots down the school. megyn: parents will be happy, i do not know about the students.

>> the kids know what is going on. megyn: we would have these cancellations because of the snow, which was very rare, but we would not have done that. ok, i have got to dig -- got to go. thank you, peter. >> all right. gregg: the vice president is now making remarks on the passing of ted kennedy. let's listen. >> another step in the direction of energy independence. the wisest choice that the president made was asking you to be the secretary of the department of energy. he has assembled a first-rate staff, taking on a roll that is going to be, in large part, the terminus of the success of these next 3.5 years. whether or not we make a genuine dent, genuine progress in moving towards an energy

policy that can help america lead the world in the 21st century, as it did in the 20th- century. some suggest that we are trying to do too much. gregg: the vice-president is together with the secretary of energy, they were going to announce several different congressional programs. but we were alerted that the vice-president was making remarks about the late ted kennedy and his passing. we will listen for those remarks. >> he is obviously bright, a man that has assembled a staff that can corral a bureaucracy. we are all a part of it, in a way that i have not seen in a while. i had planned on speaking to the clean cities program as one of several initiatives that we have to begin to reshape the energy

policy. as we would say in the senate if teddy were here, please excuse this point of personal privilege. quite frankly, i think it would be inappropriate for me to dwell too much on the initiative that we are announcing today and not speak to my friend. my wife, jill, my sons, my daughter, they all knew him. he did something personal and special for each of them in their lives. they are truly desperate -- distressed by his passing. our hearts go out to teddy jr., and vicki -- with whom i spoke this morning.

the entire kennedy family. teddy spent a lifetime working for a fair and more just america. for 36 years i have the privilege of going to work every day, sitting next to him, being a witness to history every single day that the senate was in session. i would sit with him on the senate floor, in the judiciary committee, sitting with him in the caucuses. it was in that process, every day i was with him, and this will sound strange, but he would restore my sense of idealism and my faith in the possibilities of what this country could do.

he and i were talking after his diagnosis. i told him that he was the only other person that he had -- that i ever met that was more optimistic than when he was elected. he was 36, i was 29. you would think that that would be the peak of the idealism. but i genuinely feel more optimistic about the prospects for my country today than i have in any other time in my life. it was infectious when you were with him. those of you who knew him, those of you who did not, you could see it in the nature of his debate, the nature of how key, every single day, would attack these probls. he was never defeatist.

he was never pity. he was never small. in the process of his doing, he made everyone that he worked with bigger. both his adversaries as well as his allies. do you not find it remarkable that one of the most partisan, liberal man in the last century serving in the senate, that so many of his -- so many of his foes embrace him. because they knew that he made them bigger. he made them more graceful in a way that he conducted himself. you know, he changed the circumstances of tens of

millions of americans. literally. he also changed to another aspect, as i have observed. not only the physical circumstance, but how these people look at themselves. and how they look at one another. it is a remarkable contribution for any man or woman to make. for the hundreds, if not thousands of us, that got to know him personally, he actually -- how can i say it -- he altered our lives as well. through the gaps -- through the grace of god and history, i was blessed to be one of those

people. every important event in my adult life, as i look back this morning, every single one, he was there. he was there to encourage, the council, to be empathetic and left uppe. showing up at the delaware armory, i got 85% of the vote in the district. i would literally not be standing here if it were not for teddy kennedy. not figuratively, it is not hyperbole. he was with me when my wife and daughter were killed in an

accident. he was there, literally every day in the hospital. some specialists from massachusetts was with us, a doctor that i never asked for, literally, sitting in the room with me. but it was not just me that was affected like that, it was hundreds and hundreds of people. we were not ready to making igo

she said. millions of americans, hundreds of us affected by his personal touch -- people like me that came to rely on him. unlike many of the people in my years, the unique thing about teddy was that it was never about him. it was always about you. it was never about him. there are people that i admire, great women and men, it gets down to being about them. with teddy, it was never about him. well, today we lost a truly remarkable man.

to paraphrase shakespeare, i do not think we shall ever see his like again. i think that the legend that he left was not just the landmark legislation that he passed, but how he helped people look at themselves and look at one another. i apologize for us not being able to go into more detail. for me i do not think it was appropriate today. i am sure that much more will be said about my friend and your friend. he changed the political landscape for almost half of the century. i just hope that we will remember what he did.

i hope we will remember how he treated other people and made other people look at themselves and one another. that would be the truly fundamental unifying legacy of teddy kennedy's life. if that happens. and it will for a while in the senate. mr. secretary, you and your staff have done an incredible job. megyn: there you have it. an emotional tribute from our vice president to the lion of the senate. he began serving at age 30, as did -- as did senator kennedy. they spoke about how ted kennedy was at his side when vice-president biden's wife and daughter were killed so many years ago. setting a doctor that was not even ask for.

"so many of his foes embraced him." vice president biden, choking back tears several times during his remarks. talking about his conversation with senator kennedy's widow, who told him that he was ready to go, but we were not ready to let him go. the senator has been battling brain cancer for over one year. spending a lot of time at the family compound, in joining the things that he loved -- his family, his sailing. the vice president said that the one thing he wanted people to remember about senator kennedy was that it was never about him, it was about others. saying that his legacy will love only be a landmark legislation that he pushed through, but how he of people to look at

themselves and others. something that was truly remarkable about him, senator ted kennedy, now dead at age 77. gregg: we will be moving on. did you get your cut of the stimulus package? a nice check from on the -- uncle sam? if not, it might be because you are not behind bars. a bit of a snafu. megyn: a border france -- a border fence not cutting it, how about another way to curb illegal immigration? a first-class bus ticket? gregg: howard dean, a health- care town hall gone haywire -- john mccain is in the on deck circle, ready to swing the bat. is he going to face a similar fate? that is coming out.

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manage your diabetes, including most brand name meters. call now and we'll send you a free meter. plus, a free cookbook when you join. call liberty. they can help you live a better life. call the number on your screen. jon: we are going to join you in about 15 minutes, remembering the legacy of one of america's longest serving senators, ted kennedy. democrats take to the road to promote health care reform to race series of rallies while republicans warn that we are in for a fiscal train wreck. a chicago boy, his entire family save him from a house fire -- we will share it with you live on "happening now." megyn: this could be the story

of the day. thousands of your stimulus dollars, almost millions, all going straight to convict. that is right, the fed sent $250,000 in stimulus checks to thousands and thousands of prisoners. prisoners that might have just cheated on income-tax returns, or first degree murderers -- all getting your money. some are honest mistakes, others are released the good ones. dave, if there were ever for -- every time for your group -- citizens against government waste -- this is it. >> you are right. one of the adjectives? so many motions, frustrated, confusing, angry -- we are spending trillions of dollars and money is being wasted. the real criminals are the politicians that are allowing

this to happen. megyn: you have got to give it to "the boston herald." they broke the story. 23 criminals in massachusetts had received stimulus checks. wait a minute, they said. sure enough, the fed said that they were right. the herald stayed on it, it was not just 23 -- it was about 4000. some of them may have been legitimate, but 2200 are very much in question. i guess that the story is that the local department of correction in massachusetts said hey, you are not supposed to send these to the congress. the feds never responded. eventually they had to release the money. they are asking the prisoners to return money, i guess that will be no trouble with that. >> i think that they should just give it to them in cigarettes. that is the currency in prison.

seriously, this is exactly why people are going to town hall meetings, people are fed up. the government knew about this, yet they did that at about -- act on it. it is wanting to know it is going on, but it is another thing not to act. megyn: they had been alerted by the massachusetts department of corrections, saying that you are trying to send stimulus checks the prisoners -- that is not supposed happen, please get back to was. according to the department of corrections, the fed never did anything. now the social security administration is saying that they're going ask for the checks back, do not worry, but the jails are saying that they do not know if the prisoners have it. some of the money has apparently gone. now, what did they do? >> i abide by all the laws in

this country, and i get no money from the federal government. i have a better chance for a government handout if i commit a murder. what about the other areas in the country? in the southeast, southwest, this is probably happening across the country. this is just one case. imagine the hundreds of millions of dollars potentially going to inmates. megyn: just to pick up on that point, of those 23 inmates in massachusetts one was convicted of first-degree murder, three for second-degree murder, five convicted rapists. that is who got your taxpayer dollars. sorry, that money has been spent. this is the problem with government getting involved in these massive programs. when the president pushes for a stimulus bill, he told us that nobody messes with joe biden. that joe biden would oversee the

program, making sure that they did not have waste by this, but this is just the latest example. we have seen money going to several different sources that many find questionable. corn producers, prisoners, on and on the list goes. what does a group like yours do about it? >> what we are trying to do is expose the waste. look at the fundamental problem. spending $1 trillion quickly? of course there will be waste. if you take a long time, it will not get into the economy the way that you wanted to. they have no choice. and if we do not know about it, we cannot stop it. that is why we need greater transparency, not this recovery .gov that does not even tell us where stimulus money is going. the first step is finding out where the spending is going.

megyn: a bad deal for the taxpayers, a great deal for the convicts. thank you for coming on. gregg: do not start discriminating against the pornography industry, ok? megyn: [laughter] remember those titles? four men, three women, and a gorilla -- that was one of them. i am not kidding. gregg: do not miss that. illegal immigrants, getting a plane ride back home courtesy of the u.s. government. $6 million is the cost, why is this plan working? megyn: tropical storm noel annie has forts -- formed -- tropical storm danny has formed, we will track it. . upbeat rock ♪ singer:wanted to get myself a new cell phone ♪ ♪ so i could hear myself as a ringtone ♪

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megyn: this is a fox news alert. tropical storm danny tracking the east coast. according to our weather center, the current model brings in nearly a hundred banks by saturday morning. by that time it could be a strong comparable-store or a minimal hurricane. they say it will continue on a northerly track of to the northeast u.s., near cape cod. the east coast need to watch out for this storm. i never understand where they get these names. in any event, the aware. -- be aware.

gregg: damian may have been better. thor? megyn: what are some scary women's names? gregg: all the women and dated. illegal immigrants crossing over our border, often packed in vans or just to run across. we will show you how many are getting a plane ride back home. we are in arizona to show you why this program works. >> in a lot of people may be outraged by this, but do the math. the department of homeland security says that this program pays for itself when it costs $100 a day on average to detain an illegal immigrant.

on any given day, there are 33,000 of them incarcerated in the country. they are going back to where they started. >> i wanted to look for a better life, a better future. >> homeland security only run these repatriation flights in the hottest time of the year because the sonora desert can be unforgiving. >> we operate this in the extreme summer heat. >> temperatures can soar up to 100 degrees, and crossing the border on foot could take days. >> the vast majority of these mexican nationals were caught trying to cross into the u.s. from mexico. these airplanes are full with about 100 passengers and there are two flights daily. >> once they land in mexico

city, and they are processed and are given 150 pesos. >> most of these people will try to cross the border again. >> back to you in new york. gregg, thank you. -- gregg: thank you. show and tell you weren't always my favorite day. with all the pet hair in the air, i'd spend class preoccupied, bothered by itchy eyes. but now i have new zyrtec® itchy eye drops.

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