jenna: thanks for joining us, everybody. trace: "america live" with megyn kelly starts right now. megyn: hey, guys, thanks so much. this is "america live," i'm megyn kelly. a federal judge has ordered a top al-qaeda ringleader to go free. monica crowley on why they want to release one of the guys who organized 9/11. plus, brit hume and what about the vice president just dropping the f-bomb at the big bill signing? a volcanic eruption sent enough gas fumes to kill thousands of people over in england. new information from scientists on how it could effect your winter next year.

♪ megyn: to the way you fly. they will effect every american who will ever get on a plane, a $20 billion effort to fix almost every significant airline nightmare we have seen in the last few years. while you were watching all the health care stuff go down on capitol hill, this was also happening, and unlike health care, folks, this one was approve inside the senate by lawmakers on that side by 93-0. how long do you -- how often do you see a bill approved 93-0? this thing is going to protect people from getting trapped on locked airplanes, meaning airplanes that are delayed. it'll regulate the food and water you have to be given during those delays, it cracks down on what pilots can do in the cockpit and on and on it goes. moments from now i'm going to be joined by d.j. frost, a commercial airline pilot, he's going to help put this in perspective on exactly how it's going to change the way you

travel. nobody's paying any attention to this, this is this airline passengers' bill of rights thing that was on the front burner for months and months, and now congress has done something about it. stay tuned for that. moving on, now that the health care reform bill is the law of the land, lawmakers on capitol hill are reportedly about to take up the old cap and trade bill, the one critics call cap and tax. massachusetts senator john kerry says a climate change bill will be the next best opportunity to create jobs, reduce pollution and cut our dependence on foreign oil. on the other side, a number of republicans and even some democrats call this bill a great big job-killing energy tax. we'll have both sides in this a fair and balanced debate next hour. and president obama has made it official. signing the historic health care reform bill into law just one hour ago. in front of 600 supporters, including many house and senate democrats. right before signing the legislation, the president

invited some of the key people who helped get the overhaul passed to join him at the front of the east room as he signed the bill. including members of the democratic leadership like nancy pelosi and others. and when it comes to what americans think about the top democrats in congress, it turns out many of them just don't. but among those who do have an opinion, the news for the democratic leaders is not good. take a look at this new cbs poll. it finds nancy pelosi's favor about rating stands at 11%. would you look that? would you look at that? more than three times as many have an unfavorable opinion of her. this is so interesting because diane sawyer just had this interview with her quoting other polls that showed that she was acknowledged to be the most powerful woman in america. maybe powerful but not that well liked according to this poll. 36% say they have not heard enough about nancy pelosi to even choose. harry reid's favor about rating? even lower.

it's at 8%. 23% of those polled give him the thumbs down, 50% say they don't know enough about harry reid. that poll was taken just prior to this weekend's health care vote. well, reports today that acorn, the left-wing community organization group, is apparently folding up shop. that group, acorn, says it will shut down by april because of a lack of funding. the news comes six months after video surfaced showing some acorn workers giving tax tips and other advice to two activists posing as a pimp and a prostitute. eric shawn has more from our new york news newsroom. is it really disbanding? >> reporter: acorn says it will disband nationally on april 1st, but today critics are calling it an april tool -- fool's joke. just rebranding under other names and will continue its mission. acorn has been under fire for about two years now. acorn workers have already gone

to election fraud to accusations that it misuses public money for its own political purposes. acorn has long denied the charges but critics like iowa republican congressman steve king charge it's only shifting its role to local organizations. >> people don't change, and the tiger doesn't change its stripes, so neither do people that are operate anything a corrupt fashion. if it's the same people in charge, we're going to see them attempting the same thing. >> reporter: here are some new acorn-linked organizations, they say, that include the affordable housing centers of america inc., that was acorn housing. there's alliance of californians for community empowerment, arkansas community organizations, missourians organizing for reform empowerment, new york communities for change, there's new england united for justice. in fact, megyn, when we went to the offices of the new york

group, for example, in brooklyn, new york, we found out it was operating in acorn's old offices. megyn: i mean, not a huge shock. this thing has so many tentacles, you know, it's an attention grabber to say it's closing. what does acorn actually say? >> reporter: the agency will close, take a couple of months to get its business in order. there's a statement from perithat lieu -- bertha lewis that says, quote: >> reporter: she claims those undercover vid -- videos, well, acorn claims they were manufactured. they showed the pair posing as a supposed pimp and prostitute, apparently getting information from workers on how to skirt the law. the group continues to be under investigation. in las vegas this summer in the a voter registration fraud case,

prosecutors not commenting, but that trial of acorn still set to start in july. megyn: all right. eric shawn, thanks so much. folks, we are getting word that a federal judge has ordered the release of a suspected al-qaeda organizer. a guy accused of recruiting one of the terrorists involved in the 9/11 attacks. this guy was aassociated with one of the pilots who flew the jets into the world trade center on 9/11. and now he's about to be set free. why? radio talk show host monica crowley is here in three minutes to peel back what went wrong on this one. and a volcano that is so large, so powerful it could change the weather across the world. just ahead, we'll show you how that one works. you do not want to miss this story. ♪ we didn't start the fire, it was always burning since the world's been turning. ♪ we didn't start the fire, but

we

megyn: well, an update on that so-called runaway prius in new york state. police now say driver error was the cause. a 56-year-old woman was driving this car when she said it suddenly accelerated and crashed into a stone wall. authorities confirming that the gas pedal was not stuck, but had been pressed all the way down, and the brakes never applied. that, that'll do it. she was not seriously hurt. well, the justice department is now reviewing whether to appeal a federal judge's order to release a key al-qaeda suspect. at one point this guy was called the most valuable, the most dangerous prisoner that the u.s. was holding down at gitmo. he is accused of recruiting some of the terrorists who actually took part in the 9/11 attacks. i mean, people like mohamed at

ma. evil. monica crowley, how can it be, how can it be that this guy who allegedly had this relationship with mohamed atta, i mean, recruited them for 9/11, he's just about to get released with a see ya pass? >> see ya later. don't pass home, monopoly, get out of jail card free. here's what happened. this guy was considered our highest-valued detainee at guantanamo bay for a long time. he did orchestrate the european cell that was run by mohamed atta that orchestrated and carried out the september 11th attacks. he was set to be tried in military commission, and actually we did start going down the road in 2003-2004 of trying this man in a military commission. the problem was that the military prosecutor, a colonel, said, look, a lot of this evidence that you were set to use was gleaned, it all came out of enhanced interrogation techniques. in other words, the eits that

now the obama administration considers to be torture. so this military prosecutor said we can't use any of that evidence. that brought the military commission to a screeching halt, megyn. and then they turned around and said, well, now what do we do with this guy? should we matriculate him into the civilian justice system? he appealed, this week judge robertson said, that's it, he's got, he's free to go. he's free to go. this is what you get when you treat international terrorism as a law enforcement issue, megyn. two questions, first of all, whether the obama administration and the justice department under the attorney general, eric holder, will block the release of this terrorist, and i hope to goodness sakes that they do. the second question is, are they still committed to the road of treating some of the other top 9/11 terrorists like khalid shaich mohammed in the same way? the concern the american people have is that any liberal judge in america could go down the

same road and perhaps release khalid sheikh mohammed because he was subjected to the same enhanced interrogation techniques as this man was. megyn: the problem in this case is that he, according to the former prosecutor, there isn't a lot of other evidence against him besides his testimony and statements made by ramseyal seed who's also one of the most notorious terrorists. and unlike the case of ksm, all i have is evidence that's not necessarily admissible. so what are the options? assume he's right, that former prosecutor's right, you can't make the piece against him because every piece of evidence came from alleged torture. what are the options? i mean, because his lawyer said you just can't keep him at gitmo forever, and the supreme court has held that they have certain rights to challenge their indefinite detentions, so what are the options? >> the supreme court also ruled for the course and length of this rule which could go on for

decades, megyn, that the u.s. government does have the right to indefinitely hold these alleged terrorists, okay? so one of the things that the obama administration is looking at is indefinite detention for some of these most dangerous. that's why the attorney general has come out and said, look, i have no doubt that khalid sheikh mohammed is never going to see the light of day again. how do you know that? they know that because even if the he is acquitted or a judge lets the guy go, well, we're going to remand him back into federal custody for the rest of his life which raises the question, why go down the road of civilian trials at all? also keep in mind, megyn, that this administration to their credit have kept a number of detainees at guantanamo bay out of the system saying we're going to indefinitely hold these people as well as at bagram air force base in afghanistan which has none of the attention. megyn: which is about to become the new gitmo. >> right. but we are holding hundreds of suspected terrorists

indefinitely at bagram. megyn: this is just sort of a window into the problems that exist now when we catch these terrorists and attach all these rights to them. what does -- i'm just thinking about the closure of gitmo, where are these people going to go? this guy gets a get out of jail free pass, there are others like him at gitmo, what is the obama administration to do? >> what is their plan? they don't really have a plan, megyn, and that's another part of the problem. that's why you don't just have republicans, but a lot of democrats saying, whoa, nelly. we're not going to go down the path of closing gitmo until you have a real plan in place. they say, well, we can transfer some of these detainees to this prison in illinois. the problem is once you transfer these detainees to u.s. soil -- megyn: then the rights -- yeah. >> then the rights are manifest. megyn: granted, it was under these enhanced interrogation tech anemic, but he confessed to a lot. >> yes.

megyn: a lot. is there a chance he's walking around free as a bird soon? is. >> you know, the eits broke him, and it's a crying shame that because we used those techniques, now we can't prosecute him in a military commission. the only resort we have is that the justice department under eric holder, i would suspect that because of a high-profile case like this with a detainee that was considered our highest-valued target at gitmo for a long time, that they will end up blocking this release. there will be a huge human cry on the left, what are you doing? but i believe because of the nature of this particular terrorist, the president and the attorney general should at least block his release and remand him back to gitmo. megyn: you can't imagine them setting this guy free. >> no, and the problem is with a lot of these detainees that they have already released, they've gone back to countries like yemen and saudi arabia and back to the battlefield. megyn: think he's feeling any better about the united states now that he's been down there

for seven years getting enhanced interrogation techniques? i don't think so. monica crowley, i appreciate it. from michael jackson's death bed, a witness now says that what michael jackson's doctor did in that room was more than criminal. and controversy over how some hockey fans are handling the national anthem. we'll show you what has some folks saying, that is just not american. ♪ are you receiving a payout from a legal settlement

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megyn: well, shocking new allegations in the death of michael jackson. prosecutors claim jackson's doctor, conrad murray, actually stopped cpr on the dying star in order to go stash evidence in

jackson's home. murray is charged with involuntary manslaughter in connection with jackson's death. murray admitted giving jackson a powerful sedative before he died of a drug overdose last month, a drug that is normally only used in operating rooms. now jackson's logistics directer, who was apparently in the room at the time, claimed that dr. murray stopped performing cpr to collect viles and an iv drip before the ambulance arrived. murray's attorney denies that claim and says this man has offered differing accounts in what happened in speaking with the police. ♪ o, say can you see by the dawn's early light -- megyn: well, new controversy surrounding a hockey tradition. critics are blasting blackhawks' fans for screaming and clapping during the national anthem saying it's disrespectful to our vets and our nation.

so will the fans be silenced? steve brown has an update live from the united center in chicago. what's with all the yelling at these particular events during the anthem? >> reporter: at chicago blackhawks' games, it is a tradition which goes back to the mid '80s that folks cheer and yell and clap and shout throughout the entire national anthem, not just at the very end where folks are singing, "home of the brave." it has been embraced by blackhawks' fans and is part and parcel of the game experience there. quite frankly, it's encouraged by the team, so that's what's going on at the anthem, different here than any other sports venue in the country. megyn: how did this get started? the normal anthem etiquette is just to chime in at the end, so how do we find ourselves embroiled in this controversy now? >> well, a guy by the name of rob otto who is a sports blogger from michigan, and we need to point out that michigan is the

home to the archrival detroit red wings, but rob otto looked up the u.s. code and, yes, it is disrespectful or at least against the rules to be cheering during the national anthem. have a listen. >> a specific way that you're supposed to be for the national anthem and when the flag is being raised in official capacity, and i just think that ignoring that is disrespectful for the rules that were set up. >> reporter: and specifically in the code it states that if you're not in uniform, that you need to stand there with your right hand over the heart and face the flag during the playing of the national anthem. megyn: are you allowed to hoot and holler at the end when they get to the last line? [laughter] >> reporter: you're supposed to, according to emily post, she wrote years ago that afterwards you may, of course, applaud the performance of the national anthem, but you're really not supposed to applaud, apparently, during the national anthem although many people do.

megyn: so what's going to happen? are they going to stop doing this at the games, or what's the outcome going to be? >> reporter: no, they've gotten a very important endorsement from servicemen and women. they bring down two onto the ice for the playing of the national anthem. they are in uniform, they are honored guests, and these folks have gotten a big kick out of being there and say that it is very patriotic. have a listen. >> what's important isn't following rules and regulations, following the u.s. code. what's important is showing respect for the flag, respect for your country, respect are for the military on the ice, and i recognize that when blackhawk fans are celebrating, they're doing just that. >> reporter: in the eyes of the military or at least the folks that have experienced this, hey, folks are being positive during the national anthem, it would be a different thing if they were being negative. they're not, so they like it. megyn: good luck to the emily

post descendants of the world saying, pipe down, mister. >> reporter: better battles to pick, yeah. megyn: exactly. thanks so much. well, two weeks after mexico's drug violence left an american couple dead, top members of president obama's team are on the ground going to war with the drug gangs to protect americans on both sides of the border, just ahead. and could a volcanic eruption in iceland end up killing people hundreds of miles away and change the weather right near the united states? it's happened before and could be about to happen again. the details next. [ female announcer ] crunch time, wheat thins.

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megyn: hey, here's a quick look at the top stories we are watching for you right now, a judge denying bond for the professor accused of gunning down three people at the university of alabama in february. amy bishop making her first court appearance today, her attorney will pursue an insanity defense. and at least two paramedics face action in pittsburgh for the death of this man during a blizzard. 50-year-old curtis mitchell died after waiting 30 hours for an ambulance when merely # feet of -- 2 feet of snow fell back in february. and members of president obama's cabinet on the ground in mexico. the group, led by secretary of state hillary clinton, addressing ways for the u.s. to help mexico control its rampant drug violence that is now taking

american lives along the border. we are live on that story at the top of our next hour. well, a massive, massive financial overhaul is now on its way to the full u.s. senate. the bill would give uncle sam big new power over how wall street does business. the question now, what exactly does it mean for main street? stu varney is with the fox business network, he is my guest now, stu of varney and company. put it in terms we can understand, why do we care about this? >> at the end of the day, the politicians are going to have a great deal more say over you and your money. when you go to a bank to get a mortgage, a credit card, a car loan, the government, the politicians will be leaning over that bank's shoulder and looking at the transaction much more closely. the rate you pay, the terms of that loan, and who are you, by the way? and on the other side, how big is this bank? what risk is it taking? where does it put its money? what are the credentials of the

people offering you that loan? how much does an executive earn? at every stage in that transaction between you and your bank, the government is going to be looking over the shoulder and regulating that transaction, and you and your money. megyn: i thought that the government already was regulating who got loans to some extent, all the pressure, for example, on fannie and freddie to lend to people who couldn't qualify, and as for the oversight of the banks themselves, don't we need that? didn't the whole meltdown prove somebody at least needs to be looking at the lending practices? >> there was a failure of regulation. the federal reserve took its hand off the wheel for many years prior to the big panic. look, that is all true. so now you turn around and have much more direct involvement of the poll sixes -- politicians. the federal reserve, remember, is an independent operation. it's much more closely aligned, in the future it will be the politicians, directly the government, much more intrusive

into the financial system. and as for fannie and freddie, you're right, that's what got us into trouble in the first place, but they are excluded from all of this financial reform. not part of it. not at all. megyn: so you're telling me when i go into citibank or wachovia, now, to apply for a mortgage or a car loan that the government could be involved in that transaction too? >> in the future, question. megyn: really? >> they're trying to set up something called the consumer financial protection agency, a stand-alone agency like the environmental protection agency, for example, appointed by the president, politically controlled, and that would look at your transaction, your mortgage. was it fair? did you understand the mortgage that you just have taken out? megyn: how are you going to do all this? now the government's going to be running a large portion of the health care system, they're already running a large portion of the auto system, now they're going to be running a large portion of wall street and our banking business, who's going to do all this? do we need to hire more federal mows?

>> yes. [laughter] haven't you heard? they're hiring an extra 16,500 irs agents to impose health care reform. what you're talking about is a much more bureaucratic situation. i really hate bureaucracy, but i think that's what we're in for. megyn: you know, some people out there listening to this will say i don't know about these other things, but when it comes to regulating wall street, i'm for it because i saw the implosion, and i don't like the fat cat, and i want somebody making sure they're not that fat. >> i think the administration is riding a wave of anger. they a blame those fat cats for what went wrong in the fall of '08. therefore, rely on the government to impose fairness. this clearly didn't work, clearly broke down, we need others to step in and ride in and establish some fairness and justice. megyn: what's the response to that? >> my response? megyn: yeah. >> i hate it. megyn: you like free market. we don't have a free market. the government let these banks fail, then we stepped in and propped them up. >> that is the trend of this

administration and our society. we are getting more like europe. we are more -- megyn: president bush started it. he's the one who stepped in and saved the banks. >> yes, but i came here 35 years ago looking at a glorious capitalist society, and now i find it going the other way, dismaying. megyn: thank you so much, sir. right now a situation is unfolding in iceland -- that is not a place we normally cover -- that some scientists say could pose a danger for the entire planet. that's all, just the planet. a volcano erupting near a glacier is spouting lava and ash high into the air. the big worry right now is that it could be a sign that an even bigger eruption at another volcano could be on the way. this happened more than 300 years ago, and when it did, researchers say it changed the weather pattern for the entire planet. including right here in the god old us of a.

joining me is a seismologist from uc berkeley. thanks so much for being here. we saw this volcano in iceland, and the pictures were interesting, and we heard, all right, it could force another volcano to go off, and that was kind of interesting. then we heard at some point, you know, hundreds of years ago, that's what happened, and 1500 people across the pond died of toxic gases relating to these two volcanos going off. is that true and could it happen again? >> well, not only could it happen again, it's happened in a number of other places around the world. for example, in crack toe what in 1883, tam bore rah in 1815. the reassumption there put about 20-30 cubic miles of ash into the air and caused the year of no summer. but that's nothing compared to some of the really big eruptions in world history some of which were here in the u.s. yellowstone erupted about 200 cubic miles of ash in mammoth,

near long valley in california. erupted about the same amount at roughly the same time. and actually the record belongs to the volcano that occurred around the time of the extinction of the dinosaurs in which something like 500,000 cubic miles of ash were erupted -- megyn: how big is that, 500 cubic miles? >> i can't even tell you, you know, it's inconceivable. putting that much ash and rock in the air will cause, you know, substantial cooling equivalent to like a nuclear winter kind of thing, and in fact some people actually think that was a major contribution to the extinction of the dinosaurs. megyn: is this, i mean, just how seriously should we be watching this, then, in iceland? the first volcano which i'm not even going to try to pronounce, but the one we're worried about is the katla? >> that's right. megyn: if that thing does blow because they're saying the last time it did we had, well, that

there was another volcano that freed gases that turned into smog, smog floated across the jet stream changing weather patterns. crop production fell in western europe, famine spread, fiery sunsets were seen. then 1784 the winter was one of the longest and coldest on record in north america. new england, record stretch of below-average temperatures. on it went, john. is this actually possible again? >> oh, sure. it's going to happen again, you know, and, in fact, as i mentioned tambora happened in the 1815-1816, and you can expect this to happen because, frankly, water and volcanos don't mix. it produces an explosive kind of volcanic activity that causes these kinds of things. i remember distinctly flying over the midwest about a week after mount st. helens erupted and seeing brown air over chicago. i thought that was pretty interesting. "money formegyn: yeah.

and i guess this one particular volcano is pretty dangerous because it caused floods the size of the amazon, sent boulders as big as houses tumbling down into valleys and roads, and the last major eruption was 1918. floods followed in as little as an hour. how do you handicap it that we're going to see katla explode? >> well, you know, we spend a lot of time trying to understand risk, and there are various places like the santa fe institute in new mexico where we're interested in risk. we also have our own little company, open hazards.com, where we try to evaluate the risks from earth earthquakes worldwide. so we're getting better at this, and this is going to continue. stay tuned because in 3-5 years i think we're going to be much better at being able to handicap these cientsdz of eruptions. megyn: well, i certainly hope we're around for that. >> i'm sure you will be. i wouldn't worry about it. megyn: i'm worried about this katla. >> don't worry about it.

we'll be fine. megyn: all right, we'll leave it on that happy note. john, thanks so much. >> you've got it. megyn: well, a whopping new lawsuit raising new questions about reality tv. meet alicia. she appeared on abc's hit "wife swap." she was the daughter of one of the wives that was swapped. now she is suing the network for a whopping $100 million claiming the show was edited to make her look like a spoiled brat obsessed with her looks. alicia charges she has now gotten death threats and has thoughts of suicide. we're going to debate this on kelly's court. but first, first we want you to go to our show page, check out the background on this, and we're going to get your thoughts on it on kelly@foxnews.com. here's a clip before our legal panel weighs in. >> i definitely think pageants define me as a person. i don't care what other people say, appearance is everything in this world. this is dynamite. it judges the -- blows the

judges away. i do feel sorry for people that are not gorgeous people. >> that's the sparkle. >> if you don't have the beth clothes, the best hair and makeup, the best tan, you're not going to make the pageant. put one step forward, and we sparkle again. >> you don't have to be beautiful to do well in life, but it sure helps. >> really and karen have -- ralph and karen have done well themselves. >> i'd rather be a pretty girl dressed to the nines than a girl who comes in, i'm here for the interview, i'm smart. [laughter] megyn: okay. well, we'd love to know what you think. you can log on to our show web site, it's foxnews.com/america live. today we are asking, who's to blame for the way alicia came across on the show? is it abc? her parents perhaps? is it alicia herself? or all of the above? get up to speed on this case and vote, and then we will have a

full debate with our legal panel in our next hour in kelly's court. well, after months of congressional investigations, the community activist group acorn is calling it quits. straight ahead i'll get reaction from one of the lawmakers who led the probe into acorn's practices. and a police chase goes horribly wrong. whoa. whoa. an impact so hard the camera is left swinging. the details on what's happened next. these are actual farmers who raise vegetables in campbell's condensed soup. so if you've ever wondered who grew my soup, well, here they are. ♪ so many, many reasons ♪ it's so m'm! m'm! good! ♪

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the biggest difference is stopping it before it starts. don't wait another minute. call now and immediately start enjoying the confidence, security, and peace of mind only lifelock can offer. call the number on your screen and mention shredder ... to receive this special offer. real people, real protection, real peace of mind. don't wait until it's too late. get your lifelock protection started immediately. call now. megyn: just a week from now the community activist group known as acorn will officially shut it doors. the group calling it quits after a series of scandals including voter registration fraud and questionable behavior by acorn workers. though some of acorn's critics think the reports of it death may be premature. joining me now is the congressman who helped lead an investigation into acorn's

practices. california republican darrell issa, he's the ranking member on the government reform committee. all right, congressman, so let's get down to what we actually think is happening here. acorn says that it's closing its political operations, not its housing unit which is sort of the unit that was investigated by those two undercover, you know, james o'keefe and hannah giles. it says it's closing it political operation meaning voter registration efforts and so on. do you believe it? >> well, they may be ceasing operations, but they've horded about $30 million of cash and building assets back to corporate, and bertha lewis is controlling those. more importantly, as somebody who used to have to chase accounts receivable when small companies would skip and run, these affiliates are not changing their tax id, so no water what their name is, they're still the same

corporation. and it's almost like name changes, aliases for criminals where they'll have ten aliases. the fact is it's still the same person, these are still the same organizations, in most cases with the same board of directors. megyn: yeah. because the reports are that most of the 20 chapters of acorn are now reorganizing under new names. so i don't know that they are closing up their political shop so much as just giving it a different name. >> well, exactly. and because the money was taken, these entities, these corporations are effectively getting their own money, opening their own accounts. they were always, many of them were separate corporations, so they're going to be affiliates less than wholly-owned subsidiaries. but the structure is still the same. you have activists who have been doing a certain group of things including defrauding the voters by registering and turning out nonexistent or unqualified voters. people have been taking money under false pretenses, taking advantage of the very people

they claim they were going to serve. so the bottom line is these organizations are not repenting or changing, they're simply changing how they appear to the public so they can do the public in again. megyn: so how does the public stay abreast of this? it seems like acorn has, its reputation is tarnished, there's no question, given all the criminal investigations and guilty pleas that its workers have come out and made. so how does the public now know when they're dealing with acorn, the new acorn under the new name? >> well, we'll be happy to give fox a link directly to our web site, the point where we're tracking all the name changes and making sure that becomes public. and as we continue sending out letters to banks and other groups that in the past had given money and been misled, we're going to be using and showing these new names and saying, you know, make sure that you're different this time in your money giving because it was obvious it wasn't just the federal government that was giving money to bad actors, it was all kinds of nonprofits and

particularly banks that were sort of told if you don't give us money, we'll tell you how bad you are. if you do give us money, we'll take care of the poor. in fact, they were taking care of their board of directors and high-ranking people. megyn: acorn came out and said this is a quote from its board, acorn has faced a series of well-orchestrated, relentless, well-funded right-wing attacks. it is to that that acorn is attributing its problems and the latest move saying it's basically been the target of a right-wing hit job. how do you respond, congressman? >> well, i guess the vast right-wing conspiracy is back. i can tell you that i don't believe to an organized party. i'm a republican. clearly, what we did in committee in researching this group, yes, we did it, and we're very proud of the 66-page report and a supplemental that came out that detailed criminal activities. i certainly think when you think of o'keefe's operation, it was a shoe string operation that went in place after place on a dime

and discovered in almost every place they were willing to participate in criminal activities. i don't see that as a vast right-wing conspiracy, i see it as a group that flagrantly ignored the law for a long time and got away with it, and it was backed all the way up to the white house by groups of people who were beholding. megyn: i gotta go, but i want to ask you quickly, a federal judge has ordered that the federal funding be restored s that going to happen? i need a quick answer. >> i'm afraid the court's answer will stand, and this administration does not appear willing to do the due process in order to cut off the funding. megyn: we'll be watching it. >> thanks, megyn. megyn: last year, the founder, told me he foresaw that. in the meantime, he's opening up acorn branches all over the world, so stay tuned. no republicans attended the historic signing of the health care bill because they say it was not a bipartisan bill, and we're told that is just fine with speaker nancy pelosi.

but is this how it's going to be? brit hume joins us next hour with answers to that. and how about traveling to space for your next vacation? we'll show you how close that really is right after the break. ♪ i believe it's time for me to fly, time for me to fly muck yo= can h

megyn: well, your chance to fly in space just got a whole lot closer if you've got deep enough pockets. the world's first commercial spacecraft making a successful test flight over the mojave desert. if all goes according to plan, the vss enterprise will eventually take space tourists into low-earth orbit. trace gallagher on that one in our new york city newsroom. >> reporter: yeah, sir richard

branson is the muscle and money behind this, we've all seen these rockets blast off from the earth. this one actually blasts off from 50,000 feet up. the mother ship looks like a giant catamaran. this is the first test flight where they had the rocket attached to it. the rocket is called spaceship 2, also known as bss enterprise. it can carry six passengers. it goes from 60,000 feet to six miles, that's low-orbit. that's where the passengers can experience weightlessness as well as see the curvature of the earth. richard branson weighed in on this test flight saying, and i'm quoting here, watching vss enterprise fly for the first time really brings home what beautiful ground breaking vehicles burt, meaning burt rattan one of the early designers of this, and his team have developed for us. it comes as no surprise that the flight went so well. the cost of this, you mentioned? you don't have to have the right stuff anymore, megyn, you have to have the right bucks.

$200,000 to fly, and they've already got 330 reservations booked for this thing, 2011 they hope is going to be the first passenger flight into low orbit. megyn: how long is the flight, trace, and do you get to, you know, are you weightless? >> reporter: yeah, you are weightless, and you can see the curvature of the earth. if all goes well, they haven't sent this thing out, if all goes well should last for a couple of hours. megyn: wow. do you get a meal and a movie? >> reporter: there's no meal, but you do get a pillow and a blanket, and you can carry two bags on no extra charge. 200,000 takes care of everything. megyn: i'll go half says with you. we're 15 minutes away from the health care debate in the senate. you thought it was over? huh-uh. we've heard reports that the gop has some plan up it sleeve for an 11th hour attempt to derail this thing. this is the vote on the reconciliation bill, the

so-called fix-it bill that we're just not sure what's going to hatch with that one. fifteen minutes away. and the highest court in the land refusing to hear the case of a high school senior and the song she wanted to play at her graduation. we'll explain. ♪ host: does charlie daniels play a mean fiddle? ♪ fiddle music charlie:hat's how you do it son. vo: geico. 15 minutes could save you 15% or more on car insurance.

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megyn: fox news alert. there is drama unfolding on capitol hill. we are 15 minutes away from the healthcare bill debate in the senate. it's not over, folks. remember they passed one bill and president obama signed it into law. the senate healthcare bill. but they are trying to pass a so-called fix-it bill that the house members came up with. that bill is controversial in the senate.

that's the bill they believe will have to be passed by so-called 51 reckon sill -- by so-called reconciliation. we are just getting the information in on what to expect. for the first time we may hear from the so-called senate par let aryan -- -- the senate par le men tearan. he could have a answer questions on camera. we may see what's okay and what's not okay. we are told the republicans have something up their sleeve and they are being cagey as to wait is to stop this thing -- what it is to stop this thing. the democratic senators we are told get to the senate floor, it only takes one senator from the other side to object and force certain votes that could be

problematic. so the democrats are rallying their people as well to get to the senate floor. so that's the drama we are watching. what are the republicans up to? how are the democrats getting ready to fight it and what will this guy allen frumin say what can and cannot be done by reconciliation. you will see it unfold live here within the next 30 minutes. another fox news alert for you. new fears middle east peace talks may be in jeopardy. hours ahead of a crucial meeting at the white house. israeli prime minister benjamin netanyahu says talks could be delayed another year unless yeas palestinians drop their demands. tensions between israel and the obama administration have been fliegs recent weeks amid

israel's plans for new housing units in an area palestinians claim as their own. what will be the focus of this meeting? >> reporter: the white house is setting the agenda. it will be moving indirect peace talks forward. they want them to begin immediately. the white house has said from day one, they want to see a palestinian state before he leaves office. israeli prime minister benjamin netanyahu announcing these talks will be delayed a year if palestinians don't give up the idea of a settlement freeze. the settlements are sitting on land that palestinians want for a future state. megyn: where does this go from here? >> reporter: consider this round one of the head-to-head. the big clash is expected in september when a 10-month

settlement construction freeze is set to expire. the israeli government says they have no plans to renew that. expect that to be among the issues president obama will discuss with netanyahu today. we have seen some of the most violent clashes just last week in east jerusalem and the west bank. it has been very intense and unpredictable. megyn: we have seen you with a hard hat in very precarious situations. stay safe. thank you. while we wait for the final phase of the healthcare reform fight to launch in the senate in moments, we are learning 13 states are filing the first lawsuits challenging several parts of the bill that was just signed into law. florida's attorney general leading efforts to challenge the constitutionality of forcing individuals to buy healthcare coverage. here he is explaining why it's

so important for his state. >> it's critical for the future of the state of florida and our ability to function as a state and the individuals affected by this, the citizens who would be fined or subjected to an unconstitutional tax. megyn: just 13 states so farr far. they say 38 may be gearing up for a legal battle. it may be the irs coming after americans who do not comply and doling aught subsidies to americans who do qualify. but what can we expect from expanded internal revenue service with new powers. molly henneberg has all the details. >> reporter: we are from the irs and we are here to help. right? the standard role for the irs is

to monitor individuals and businesses monthly to make sure each person has health insurance as of 2014, and businesses are offering it to employees. those not in compliance the irs is supposed to levy a penalty for taxes. the irs will be responsible for determining who is eligible for tax credits. or for additional taxpayer dollars to help them buy insurance. but new healthcare reform bill does not give the tax agency more money to do all this. the congressional budget office estimates it will cost the irs $5 billion to $10 billion to do this over 10 years. but no money has been set aside. megyn: how do they expect to pay for it. >> reporter: the government will have to find money somewhere. the bill isn't clear on how the irs will go about enforcing the new penalties and taxes. but taxpayer advocate groups

warn that irs will have the authority it needs to collect the money. >> the irs is going to get more, not fewer powers to issue liens and leafies in connection with d and leafies to enforce the mandates. but the treasury secretary and the director health and human services will work as a team to create a seamless enforcement regime. i think you will see more not fewer grants of power to the irs. >> reporter: he says the irs will be able to deduct money from your checks or tax funds to pay these penalties. megyn: if you want to learn more about the irs role in healthcare you can go to foxnews.com and click on

"politics." "the o'reilly factor." a brand-new poll just coming in that reveals unease with our economy and national debt. the latest fox news opinion dynamics poll show 79% much voters -- of voters think it's possible for the nation's economy to collapse. it wasn't pretty but it worked. the democrats pushing through a new healthcare law without any support from the other side of the aisle. we'll see what happens when the fight moves to the senate where they are right now working on the reconciliation bill that the house passed. but what is going to happen to it in the senate? that fate is not assured. we'll watch unfold live here

within the next half-hour. and we'll ask brit hume about it in just a bit. and about vice president biden having some colorful language in the ear of the president upon the signing of the healthcare bill. some say the song "ave maria going sounds heavenly. the girl who wanted to play it in school take her case to the u.s. supreme court. >> i feel if the supreme court talked about it, i have a feeling i could have won it. but it's frustrating. @=h [ male announcer ] nature valley

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megyn: a fox news alert. things are unfolding in the u.s. senate where they are going to take up the so-called reconciliation bill. right here they just wrapped up a republican sort of a news conference where mitch mcconnell

was making comments. they are about to unleash some sort of a strategy to try to stop this reconciliation bill from going through in the senate. this has been their goal all along, the republicans in the senate. they hope to stop the bill from getting passed in the house. that didn't happen. and now it will head to the u.s. senate. this is the bill they believe will pass if at all with a so-called reconciliation measure meaning 51 votes instead of 60. is that even remotely possible for them to stop it? we just see brit hume. hi, brit. >> reporter: i'll be as an made it as i can. megyn: shaw so much as always. wheel we are watching the dr. -- we are watching the drama in the

senate. is there any way they can stop the reconciliation bill? >> reporter: they can stall it. this is the package of fixes that gets rid of some of the more unseemly deals. not all of them. but a number of them. there are probably some democrats in the senate who would just as soon see those deals stay in place. there are additional taxes in this. additional reductions in medicare spending. i'm not sure they can stop it, but they are going to make them vote on all of it. that will be the way they choose to fight this battle. i think they are comfortable, these republic dmants position of -- the republicans in the position of being in resistance to this. megyn: what about the 51 votes on the democratic side? i know they have written a letter assuring house members that they have the 51 votes and

they will pass this reconciliation measure. that was apparently what was needed to get them to sign onto the senate bill in the house. but i remember hearing charles krauthammer predict, why would the democratic senators do that? they like the senate bill. they like it better than what would be passed through reconciliation. is it a done deal they will sign onto this thing? >> reporter: we'll see. that's one of the reasons the republicans i think will force a lot of different votes on these measures to see whether that majority of democrats will keep their word. i think it will be hard for them not to, but who knows. megyn: now we'll ear from alan frumin. and he may be the most powerful

man in congress today, am i right? >> reporter: yes in the sense certain kinds of measures can be passed using the so-called reconciliation rules with 51 votes. he may find if he reads the rules carefully that certain of these measures cannot be enacted in that way. if he does, that can be a ruling like that from the parliamentarian can be overruled. the vice president could overright as the presiding officer. i think last i recall a majority could overright. but that may take 60. i don't know, i don't remember. it's been years since i covered the senate. it will be interesting to see what he does and see what happens thereafter. but this is all a little bit of a side issue in terms of the overall dimensions of things.

this is minor compared to what's been passed. as you noted today, signed into law. megyn: speaking of which the moment that this bill was signed into law, you have got to love joe biden. wherever he goes, he manages to inject a little extra color. today he was apparently caught on the microphone whispering something involving the so-called "f" bomb into the president's ear. let's take a listen. >> the president of the united states, barack obama. [bleep] megyn: apparently what he said is this is a big [bleeping] deal. what do you make of it? >> reporter: you sometimes think when joe biden goes to the shoe store he needs to buy not a pair of shoes but three. hthree.

he's a loveable guy in many what is and a nice man, but he has always had difficulty putting a sock in it. i did a piece years ago in which the "new republic going head lined on the cover, shut up, senator biden. this has been an issue with him forever. he just can't keep the discipline he needs to. he's not supposed to -- you don't say four-letter words into a microphone. megyn: the funny thing is robert gibbs from the white house tweeted out on twitter, yes, mr. vice president, you are right. so the white house seems to have a sense of humor about this. >> reporter: the substance what he said is right. this is a big deal. this is one of the biggest pieces of legislation to pass congress in decades.

so there is no doubt about that. it might be a not particularly solicitous way of putting it. megyn: all the best. okay. a police officer pro pairing to make -- preparing to make a routine traffic stop. before that he swerves and crashes. we'll show you what it was like from inside this vehicle. all this young lady wanted to do was to play "ave maria" at more high school reunion. it turned into a supreme court fight. that's next. ♪ i watched what i ate. i worked out. personally, i thought i was invincible. once it happened, i realized it's a different story. i'm on an aspirin regimen now because i never want to feel that helplessness again.

[ male announcer ] aspirin is not appropriate for everyone. so be sure to talk to your doctor before you begin an aspirin regimen. i was the guy who was doing everythg right. i was wrong. talk to your doctor, and take care of what you have to take care of. [ male announcer ] learn more about protecting your heart at iamproheart.com. [ male announcer ] competition... it pushes us to work harder. to be better. to win. but sometimes even rivals realize they share a common goal.

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megyn: unbelievable video out of texas. where a police officer preparing to make a traffic stop swerved, trying to avoid crashing into another car. watch. oh, my goodness. it's hard to make out what they are saying. the whole thing was caught on a dash cam. he clipped the white car's trunk but avoided slamming directly into the driver's side door if the officer and the other driver were taken to the hospital. we are trying to get an update on his condition. the car he was trying to pull over got away. a high school student's dream to

play "ave maria" at her graduation hit a sour note with her high school principal. he argued many would see the song as religious. so the student sued. take her case all the way to the u.s. supreme court. trace gallagher has more on this one. >> reporter: the student went to henry jackson high school near seattle. she wanted to play "ave maria." the principal said no. then the superintendent said no. so she sues. the lower court rules against her. then it went to the 9th circuit coast appeals and they rule against her. another then she goes to the supreme court of the united states and they wouldn't hear it. but justice samuel alito did want to hear it. he sent a note to the 9th circuit coast appeal saying their decision is not easy to square with tour free speech.

he also said the school violated her rights. >> if the supreme court would have talked about it, i kind of had a good feel owrg side could have -- our side could have won it. it's frustrating. >> reporter: henry jackson high school, that's henry scoop jackson. he was a reagan democrat. a huge supporter of constitutional and civil rights. it's a high school named after him. megyn: healthcare is not the only reform president obama has his sights on. also on his agenda, curbing climate change. we just got word the republicans have offered 100 amendments to the reconciliation healthcare bill that just hit the senate floor. here is mitch mcconnell speak big it now.

we are watching the drama. you will see it unfold live. what are they doing? is it going to work? and a teen beauty queen not happy with how her 15 minutes of fame is playing out. suing abc over how she was portrayed on the tv reality show "wife swap." a little irregular, sluggish. my daughter needed activia! so i gave it a try and wow. it works. now she has a spring on her step. i'm loving it, every morning. mmmm. avo: help get your system back on track. activia with bifidus regularis helps regulate your digestive system would you recommend activia? i already have. she recommends it. what are you waiting for? singer: activia.

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megyn: welcome back. we are watching the senate floor where now, you see the majority leader harry reid speak at this moment making the case for healthcare reform and for using reconciliation, an act critics have called the nuclear option. they would push this through the senate on 51 votes instead of 60. you may say what bill? there is another bill. the reconciliation bill that has fixes to the bill that is now law. this is going to make the bill a little bit more palatable for the democrats in the house and they promised they would sign it into law. they would sign onto it. we'll see if that happens. we'll see what the republicans can do to stop it. they think they have a way. do they? while find out.

we are watching it here live on "america live." we have information on an alleged troubling run-in between a black lawmaker and a protester. >> reporter: even worse than the hurling of racial and antigay slurs saturday, incident for which we are hoping to secure video was a situation in which a protester was said to have spat upon andrew cleaver. a fox news camera was on the scene. congressman cleaver could be seen stopping to confront someone. lip reading shows cleaver saying did you spit on me? it appears to be an older man that cleaver spoke to. minutes later cleaver re-emerges with a u.s. capital police officer in tow.

he seems unable to identify the man. but points to the same individual but with less conviction. we have a freeze frame of the man in question who may, and i stress may have been the individual that cleaver believes mad spat upon him. remarkably from this information age, we have as yet no name or further details on a man who purportedly spat on a black congressman and was detained briefly by the capitol police. one eyewitness tells fox news the man accidentally sprayed cleaver, did not intentionally spit on him. the healthcare debate has been a season of incivility. there were the angry town halls in which lawmakers were shout down. a black conservative activist was physically beaten and called

racial slurs by a man tide to a labor union. and congressman joe wilson yelled "you lie." congressman alan grayson says republicans wants the people to die quickly. ed a lie stevenson was spat upon two months before president kennedy was assassinated there. so once again, megyn, as we continue to further report on this tense and historic weekend we encourage anyone with video or audio of these incidents to provide them to us at fox news. megyn: that can be done in a number of ways including ureport@foxnews.com. fresh after a victory on

healthcare. some of the president's allies on capitol hill are reportedly eyeing another controversial issue. climate change. they call it cap and trade. critics call it a job killing energy tax calling it cap and tax. does this have a chance of going through? joining us brad blakeman. and bernard whitman. now we see sort of the din on capitol hill turning to climate change. john kerry saying now is the time. the president has the went in his back. we can get bipartisan support on this and push this through. is he right? >> he's wrong. i think the democrats are on a suicide mission to take on global warming when americans are facing the biggest financial crisis since the great

depression. there is no chance in hell that climate change is going to have any hope of passing before the november mid-terms. if they do it, they do it at their peril. i they they are on a suicide mission. megyn: how can kerry be turning to this when it was stalled in the senate for months. the senate hasn't shown any backbone to act on this. what makes him think now they will. >> i think he's out of his miends. what we need is jobs, jobs, jobs. perhaps we ought to get lady gaga to pen a song and send it to congress to get people focused on this issue. we need jobs. we have got to help out small businesses. and i think it is abundantly clear that the american people want, need deserve and expect movement on the jobs issue. we simply do not have time on the legislative calendar or the

political will necessary to push through what will likely be a long and devisive fight over climate change and energy. megyn: that appears to be the route they are going. john kerry says he has confidence he will gain republican support. he says he's work on it with senator lindsey graham. and they say this plan may surprise some republicans, because unlike most of the democratic plans it includes a likely back of nuclear energy and offshore oil drilling which are popular with republicans. maybe john kerries on to something. >> i agree with my democraticfriend it's all about jobs. when we face even up employment of -- when we face unemployment of 10%. in the inner cities, 18%.

what good is it if people can't heat their homes, and educate their children. they have the healthcare debacle. historically democrats are going to get shown the door because it's a mid-term election. democrats are in a position where they can salvage some seats by take on the economy. megyn: we are watching the senate floor where they are take up this reconciliation bill, the so-called fix-it bill coming out of the house which will fix the healthcare bill that's now been signed into law. bernard, if they go ahead as senator kerry seems to be intents on doing and take up climate change legislation in the senate now in advance of the mid-term elections. how does that play out for the democrats come december. >> i agree with senator kerry on

the facts. we reduce our dependence on foreign oil and make us more secure. the problem is that is an argument that takes time to construct. you have to take people from point a to point b to point c. nancy pelosi speech right before the bill passed, she talked about something that was missing from the entire debate. this healthcare is going the help entrepreneurs. that message never got through to the american people. so to think we'll be able to get through a job creation message on an issue that's more difficult to put forward, that is energy and climate change, i think is quite foolhardy. we might have some hearings in the senate. there is no way the house will be able to act. they will be fighting for reelection. megyn: thanks to you both so

much for being here. coming up, that was a lot of "b"s. i have another "b" for you, studio b with sheped smith is here. >> the white house will be reviewing the compensation for some of the bailed pout companies. one of the questions we had was how can you control what the companies do. in addition. you may have heard about this high value target being held at gitmo taken from the battlefield. now ordered released despite the fact that at one point he was considered one of the most dangerous terror suspects in all of guantanamo bay. they are trying to figure out what to do about this guy. we have a great guest on for this ap. a former member of the 9/11 commission. he apparently knows him well. during the 9/11 investigation

they learned a lot about this man and what the options are. you don't have enough to try him, but you know he's a bad guy. so what can you do? gordon coming up at the top of the hour. megyn: it has to be the strangest medical headline we have seen in a long time. two brothers have a heart attack on the same day at the same time in the same hospital. dr. manny on that with what he says is a critical lesson being overlooked. plus this teen beauty queen claims she went on a popular reality tv show and got a whole lot more than she bargained for. now reports a $100 million lawsuit. "kelly's court" is next. ♪

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megyn: "kelly's court" is back in session. on the docket today, from the small screen to the courthouse. a teen beauty queen to ahead on "wife swap" is reportedly suing the disney-owned network for $100 million big ones. meet 18-year-old alicia guastaferro. claiming the show framed scenes by making her appear as though she were a spoiled brat. her humiliation so complete she claims she has had to change schools and has received death threats. here is a sample from the show. >> i definitely think pageants define me as a person. appearance is everything in this world. this is a dynamite picture. it will blow the judges away. i feel sorry for people who are

not gorgeous people. you have to sparkle. if you don't have the best clothes, the best hair and makeup and the best tan, you are not going to win the pageant. megyn: you have to sparkle. is abc to blame for the sparkling? let's ask our