building a library. jon: there are going to be some jobs, it will house his papers, a policy research institute and a number of other facets of the president's time in office. jenna: the former first lady now has her own library. that's pretty cool. american dream. jon: that's for sure. thank you for joining us today. jenna: "america live" start right now. shannon: this is a fox news alert, we're getting new detail on a bombshell report now highlighting a major online security breach. welcome to "america live," i'm shannon bream in for megyn kelly. for 18 .s last april, a sizable chunk of the world's internet traffic was routed through servers in china, traffic that included u.s. government and military sites. eighteen minutes of routeing potentially sensitive day data to a nation with sophisticated cyber tools for spying. catherine herridge's got the information on this. >> reporter: this report will

be officially released tomorrow, and it analyzes u.s./china relation from an economic and national security perspective. the report specifically look at the increasingly sophisticated nature of malicious computer activity by the chinese, and it this concludes, as you mentioned, that for 18 .s in april of this year china was able to push 15% of the world's internet traffic through its service. it's called an internet protocol hijacking. the report reads in part, this incident affected traffic to and from u.s. government .governor and military site for the senate, the army, the navy, the marine corps, the air force, the office of the secretary of defense and nasa. it's important to note what we don't know right now, the report does not include whether this diversion was intentional or whether it was, in fact, malicious. but it points out there can be severe consequences when this type of traffic is diverted through chinese servers, and here are the consequences. it states the hijacking of data

could allow surveillance of specific users of the specific web sites, it could prevent a user from connecting with the site, and finally and most significantly, it can allow data to be divert today a site unknown to its user. now, the commission did not reach any conclusions about what was done with the data, but it's clear that this type of activity is on the rise, and it will be with us for the foreseeable future, shannon. shannon: very interesting. catherine herridge live in washington, thank you. >> reporter: you're welcome. shannon: definitely a major concern for washington, but how could this have happened, and is there any way to tell if chinese slipped behind any of our firewalls? coming up, we'll talk to a guy who works on the internet security business as this story continues to unfold. this is a fox news alert, we are awaiting a white house meeting. right now between key hispanic lawmakers and president obama. the lawmakers expected to ask the president for help passing what they call the dream act. it is a controversial measure

that has failed so far on capitol hill. it provides a path to citizenship for young illegal immigrants so long as they either attend college for two year or join the u.s. military. mike emanuel is is live at the white house for us today. mike, what is the white house saying about this meeting? what do we know? >> reporter: well, president obama's going to meet with key members of the congressional hispanic caucus this afternoon talking about immigration reform, also talking about the dream act. essentially, the case they're making is that children of illegal immigrants may have come to this country, had no choice in the matter, but the question is what do you do with them? so the president believes it is right to help educate them or to allow them to join the united states military, so we expect that he will throw his support behind their efforts and can talk to them about the dream act. also comprehensive immigration reform. as you mentioned, it is a, what do you call it, a controversial measure rather, i should say. sorry, shannon. shannon: it certainly is, and we

watched in washington a couple month back as they tried to attach it to legislation related to defense spending, there was a lot of criticism about the dream act, so what's wrong with it? >> reporter: that's right. senator john mccain was one of those who said the an effort by democrats, essentially, to win favor with hispanic voters ahead of the election by attaching this measure to must-pass legislation. senator david vitter from louisiana was critical saying it's disguised as an education measure but, essentially, you're encouraging illegals to come to this country and to essentially have in-state tuition. why not come to the country illegally and encourage more people to come to this country illegally? the republican pushed back pretty strong. at this point t not clear whether they will have the votes to get this done anytime soon, and with republicans taking over the house, it certainly looks like it will get more difficult, but certainly something the president and members of the congressional hispanic caucus want to talk about this afternoon, shannon. shannon: mike emanuel, always

great to see you live from the white house today. thank you. and another fox news alert, we're now awaiting a response from congressman charlie rangel. he was convicted of violating house ethics rules just about an hour ago. a panel finding him guilty of 11 counts of financial and fund raising misconduct. the committee must now chem an appropriate -- determine an appropriate punishment before making a recommendation to the full house where it would go for a vote. just ahead, a new report that the foreclosure crisis could threaten some of our nation's major banks. a watchdog group says it could cost lenders billions of dollars in losses. they are warning that the foreclosure problems further threaten to hurt the government's effort to help people keep from losing their homeses. eric bolling is going to join us to talk about how it effects all of us, taxpayers and homeowners. we're also waiting to see if he hear from representative heath shuler this afternoon, telling fox last night that he

is going to challenge nancy pelosi as leader of the soon-to-be democratic minority in the house. a rasmussen poll showed 60% of likely voters had an unfavorable view of the speaker of the house. live in washington, molly line. why would he want to try to take this on? >> reporter: for one thing, congressman schuler promised during his re-election campaign that barring another, quote, viable alternative, he would challenge speaker pelosi because he says the party needs a leader who's more of a sent risk. here's more. >> it's very important that we have an opportunity to have, continue the big tent party and to have a moderate, to be able to lead the way. but unfortunately, i mean, i don't think it's going to happen, but, you know, i still have to -- to what i said i would do. >> reporter: schuler says if house democrats want to win back the seats they lost this year, they need a moderate leader who can help recruit more moderate candidates who can win in swing districts.

he says that's going to be more difficult with speaker pelosi as he called, the top of the ticket. shannon: any chance he can actually beat with her in this race? >> well, congressman schuler acknowledges it's going to be ab yun hill -- an uphill battle, and insiders say speaker pelosi wouldn't throw her hat in the ring if she didn't have the votes to win. and a number of moderate democrat lost in the midterm elections meaning there are more liberals to support pelosi. still, schuler says it's a secret ballot, and he hopes the party will take a more moderate turn. shannon: we'll watch and see. molly, thank you very much. new developments with the complaints over those body scanners at the airport just like this one. they're being used in the airporting all a-- airports all across the country, and now a prominent muslim group is speaking out. some of your tax money could soon go to educating illegals instead of u.s. citizens, and it's all been approved by a very powerful court. plus, he risked everything to insure that a fellow soldier

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shannon: this is a fox news alert, we are awaiting a news conference from ohio, the search for two women and a 10-year-old boy missing since last wednesday. meantime, a bond hearing is is set to begin for the only suspect charged in connection with this case.

you see his picture there, matthew hoffman. authorities arrested him after finding a 13-year-old girl who was also missing along with her mom, brother and be their family friend. that girl was found bound and gagged in the wayment of hoffman -- basement of hoffman's home. we're going to bring you details as soon as they come in to us. we are also awaiting a major hearing on air cargo security, a key u.s. senate panel meeting to discuss ways to close security gaps that are threatening our country. including those new screenings at airports that some passengers say are going just too far. the patdowns also receiving mounting criticism from islamic groups who say muslim women should not be subjected to invasive touching. trace gallagher live from our west coast newsroom. >> reporter: homeland security secretary janet napolitano has made it very clear, look, if you don't like the new rules, find another means of transportation. boy, tsa's getting a lot of pushback, and a lot of it's

coming from the council on american islamic relations. in fact, some are saying the full-body scanners are a violation of religious and privacy rights. islamic scholars now say it actually violate islamic law. so now they're issuing new -yard line for muslim travelers -- guideline for muslim travelers, especially women who wear the head scarf. they're saying to them, avoid the scanners and, i'm quoting here, before you are patted down you are reminding the tsa officer that they are only supposed to pat down the area in question. in this scenario, the head and neck. they should not subject you to a full-body or partial-body patdown. well, here's the problem. these scanners are being used, now, in this 68 airports across the country, so it's either the scanner, or you get the full-body patdown which is the front of the hands over the total body. we just called tsa. they issued a statement to us saying, and i'm quoting here,

removal of all headwear is recommended, but the rules accommodate those with religious, medical or other reasons for which the passenger wishes not to remove the item. if officer cannot reasonably determine that the clothing or head covering is free of a threat, individuals will be referred for additional screening. the pilots' unions are pushing back, they're telling pilots not to go through the scanner, not to get the patdown. flight attendants are coming online as well, and there's a national push called opt-out now, they're telling thanksgiving travelers to opt out of the scanners which could create chaos at the airport if everybody wants to be patted down, shannon. so it's going to be interesting to see how tsa responds. shannon: trace, i have to imagine, i mean, there are a number of groups that would have objections for a number of reasons. we're hearing from those who are concerned about the religious protection and freedoms for

these women who modesty is paramount, but i've got to wonder if you're getting any inclination how many group or exception they'll be willing to make and still be willing to guarantee they're keeping the public safe. >> reporter: it's interesting because janet napolitano yesterday intimated they'd be willing to at least listen to some of these groups. her quote was, and i don't know it off the top of my head, but her quote was, basically, look, if we have to make adjustments, we're listening. and right now there are a lot of groups, as we said,ing pilots, religious groups, flight attendants who want to go back through the old walk-through metal detectors. it's likely that's not going to happen, so the compromise is going to have to fall somewhere in the middle between these old metal detectors and the new full-body scanners and the patdowns. where they meet in the middle is right now very unclear. shannon: all right. difficult fine line between security and privacy. trace, thank you very much. >> reporter: okay.

shannon: for the first time in a very long time -- in fact, we really can't remember when this happens before -- the president is siding with the gop against member of his own party. juan williams will be here to weigh in on what this mean for pork barrel spending in washington. and their cupcake stand shut down by police, the kids, because they didn't have a permit to operate their bake sale. wait until you hear who ratted them out, and it's not making their parents very happy. >> are yeah. i was very surprised. i was very shocked because it was kind of, like, without warning. i didn't -- i wasn't expecting it at all. i didn't know. they just came, and i was like, okay. >> i was shocked. i couldn't believe it. lost... until the combination of three good probiotics in phillips' colon health defended against the bad gas, diarrhea and constipation. ...and? it helped balance her lon. oh, now that's t best part. i love your work. [ female announcer ] phillips' colon health. i love your work. everyone has someone to go heart healthy for. who's your someone?

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shannon: two piece of disturbing

video today, each showing you what happens when you mess with the bull. check out the scene in mexico city, that bull bursting into the ring making a wee line for a -- beeline for a nearby fence and leaping into the stands. terrified fans and matadors running for their lives. the second attack happened at rodeo in edmonton, this bull also attacking everyone within reach. staff eventually roped that animal but not before four people were injured. we are awaiting a republican conference meeting this afternoon where the issue of earmarks is expected to be a hot topic. if you were with us yesterday, you remember breaking news with this announcement from senate minority leader mitch mccobble. -- mccom. >> today i'm announcing that i will join the republican leadership in a support on a moratorium on earmarks in the 112th congress. over the years i've seen president of both party seek to

acquire total discretion over appropriations, and i've seen president waste taxpayer dollars on meritless projects and programs than every congressional earmark put together. shannon: president obama said, quote, i welcome senator mcconnell's decision to join me and member of both party who support cracking down on wasteful earmark spending. shannon: here now to talk about it, juan will yam, a fox news political activist. juan, it's the president and republicans on the same side. it's a cliche that politics makes strange bed fellows, but it seem like it's true! >> well, it's true for the moment especially if you're looking at the 112th congress, the one that's to come, shannon. the question that's really on the hot plate at the moment is whether or not president obama will hold to the no earmark pledge when it comes to the budget that the lame duck

congress, dominated, of course, by a democratic majority in both the house and the senate, is about to pass. will he say, no more earmarks? this. shannon: it's interesting because a couple of week back the president did say he had regrets over signing bills that did have pork but acknowledging that a lot of times to get thing done, that may be the most expedient way. he's said he would side with republicans. you know, eric cantor on the house side said i'm glad to hear the president's talking about this, but i also hope he makes a phone call first to senator harry reid. here's something we heard from the senator's spokesman yesterday, quote, it is up to each senator whether or not they will support congressionally-directed funding to their state. from delivering $100 million in military projects for nevada to funding education and public transportation projects in this state, senator reid makes no apologies for delivering to the people of nevada. all right, juan, does the president wrangle in senator reid? how does it work? this. >> i don't think he can wrangle

him in at the moment unless senator reid decides to change his tune because, much like senator mcconnell, he hears that the american people are sick of earmarks and think t a symbol of waste, exactly what mitch mcconnell said yesterday. but for the moment what you get is a lot of the veteran people on capitol hill, shannon, from mcconnell to reid saying, you know what? we like earmarks. and and it's tough for these guys to give 'em up. and can at the moment the question is whether president obama can put pressure on the like of senator reid and nancy pelosi to say we are opening ourselves to political attack unless we strip the ear marks out of the current budget bill. david axlerod, the president's top adviser, told chris wallace just last sunday on fox news sunday that these earmarks in the current legislation are already done. i mean, they're embedded, and he doesn't see they're going to be taken out. if that's the case, republicans are going to have a ripe target, and the target is going to have president obama's face right in the bull's eye.

shannon: we know that this spending is just a fraction, a tiny portion of the federal budget, but what is this, is it really just about symbolism, these folk who are stepping up to say, time to get rid of them? >> you know, i think it is about symbolism, but here's the thing, it's not about specifically cutting the budget, shannon, so much as it is about the notion of corruption and waste. and that speaks to the idea that the government is too large which is a refrain we heard from voters in exit polls in the last midterm election. they think government's too big, too wasteful and as a result, taxes the american people too much and the like. so what earmark have become is the first step, it's the evidence that the government hears the people and that they're responding to the charge that there is waste if not corruption as a result of the earmarks process. shannon: all right. we'll see how the tug-of-war plays out. juan williams, great to see you. >> are nice to see you, shannon. shannon: a fox news alert, we're just getting word to expect

federal regulators to ban caffeinated alcoholic drinks like the popular four loco brand, it could come as early as this week. a couple of week ago, now it sounds like it may happen. that ban, what's the late e, trace? >> reporter: if you listen to chuck schumer, he says the fda will announce they're going to ban some of these caffeinated alcohol drinks like four loko. there could be a number of others that would be prohibited to be sold in the unite, a number of states -- washington state, oklahoma, utah -- have already banned them. chuck schumer pushed new york to ban the drink. t the alcohol and caffeine that the fda says may be unsafe, we're talking about 12% alcohol, and a lot of caffeine, about two or three cup of coffee in each can. implicated in the deaths of two people in florida, said to have gotten a number of college student sick at a party in washington state and now it appear that these type of drinks could be banned, we just called

the parent company, fusion, that makes four loko. they have not gotten back to us, but when they do, you can imagine this will be a humongous blow to the business of caffeinated alcoholic beverages. when they get back to us, shannon, when we get more from the fda, we'll bring it to you. right now it look like four loko and other drinks like it are on life support. shannon: new fallout from a court decision that lets illegal immigrants get a break on their college costs in california. state it is taxpayers paying upo $23,000 a year to help students who come to the state illegally. plus, we are watching the white house and a very special ceremony for a brave and humble hero. president obama is set to award army staff sergeant salvatore guinta the medal of honor for his bravery on the battlefield in afghanistan. he literally took a bullet

trying to get to a wounded friend then in the hands of the enemy. it's all coming up. >> in this job i am only mediocre. i'm average. this, this was a situation that we were put into, and by no means did i do anything that anyone else wouldn't have done in that situation.

shannon: we are just getting word that the department of justice is charging another man in relation to that new york city bombing attempt in times square. he's alleged to have helped out faisal shahzad. it was discovered before anything was able to detonate. treasury secretary tim geithner urging congress to resolve the bush tax cut issues before the end of the session. democrats and republicans are divide over how to extend the tax cuts and for how long. he's called the lord of war. accused russian arms dealer is

head to the united states to face charges. he's accused of fueling conflicts in africa and other parts of the world. new fallout from a ruling by california's supreme court that says illegal immigrants are entitled to tuition breaks at taxpayer funded universities in california. that's financial aid that legit residents from other states, they are not going to get. william lajeunesse is live with the story. >> reporter: this break or discount is no less controversial today than it was when it was approved 10 years ago. students paying less to attend universities, the same u.s. citizens. there are nine other states that offer the same tuition break for illegal immigrants living in

those states. we are talking $500 million nationally, $10,000 to $25,000 per year per student depending on the state. the lawsuit was filed by students from out of state who claim the subsidy violates a federal statute that they have to offer the same break to u.s. students. >> california's game directly encouraged unlawful aliens to stay here. if they stay here they get the reward of discounted tuition which is a huge reward. it's the difference between $8,000 to go to a uc system and $35,000. >> reporter: the states claim there is no conflict with federal law. in fact that the tuition discount is based on residency, not citizenship.

anyone who resides in the state will pay the lower rates. this decision by the california supreme court overturns a lower court ruling that sided with the u.s. students. we are battling about the state versus federal supremacy when it comes to immigration law. shannon: i saw one of the attorneys in the cases talking about appealing this to the u.s. supreme court. do we have any indication in the meantime whether this will be the law in california or not? >> reporter: it will remain the law in california. they will ask the supreme court to reconsider because they say it's a violation of a 1996 immigration control act. so the nine states already doing it, other states considering it. that's why they believe the supreme court will take the

case. shannon: fair and balanced debate. let's bring in syndicated radio host leslie marshall and lars larson. lars, if this is about people regardless of how they came to the country becoming better educated and contributing more to the u.s., what's wrong with this? >> this is craziness. how they came here does matter. if you come here legally you are an immigrant. these people are illegal aliens. now they will be given a tuition subsidy americans from other states are not entitled to. once they are have this education how are they going to work in this country since you have to have a name that match.your social security number and if you are here illegally you don't have a social security number. the colleges shouldn't be admitting these students and they shouldn't be giving them a tuition break at taxpayers'

expense. >> reporter: these are taxpayer dollars. california is in bad shape. they have a deficit of more than $25 billion. can they afford to help people with higher education on the taxpayer dime? >> i'm living in the state of california so i'm paying out and you guys aren't. it would seem from a fiscal perspective to have out-of-state students coming in would be more cost beneficial. in january there is the first increase and overall increase for all residents of california for all state schools. on that note i want to address something you pointed out. and lars, you said. most of these kids came here as children. they didn't make the decision to come here legally. as a parent i don't want my kids to be punished for something i

did. this is where it's key to look at something that's a bipartisan supported measure like the dream act. it's better for these young people to be educated as opposed to ending up in prison or not be contributing by picking let us or straining social program. so in the long run right' better for the state of california and america if these kids are educated. shannon: california seems to be marching to the beat of its own drum. >> leslie's taxes are paying. but a lot of those colleges get federal taxes as well. we have to bribe people who come to our country illegally with college so they won't commit crimes? nice theory, but it won't fly. >> they have to be residents. >> they are now adult. they were brought here as children.

but now as adults they are breaking the laws of this country. there is a legal way for them to proceed. go home to your country with a $125,000 k-12 education the taxpayers have already given you, then come back to this country legally. once they get this first-class education, what job are they going to do without a social security number? they are not here legally. if you come here illegally from most countries you cannot legalize your status while you are in this country. ask any immigration attorney about that. shannon: you brought up the dream act. if it's passed, you can go to the college for a couple years. that is an experience, but at that point you can apply for a special track to citizenship. is this a way to buy your way into citizenship? >> didn't some of our ancestors

buy their way into sit seasonship? the society and the state of california and all 50 states pay far more when you look at correlation between lack of education and crime in our prison system and crime and our gangs. in my opinion we are opening up the floodgates to more crime, and expenditures to social programs. i would rather have that illegal immigrant student educated, pathway to citizenship and be a doctor treat something one in the e.r. than draining the system. >> you want a doctor who doesn't go by his real name? is the d.e.a. going to give him a development a. drug license. >> with a pathway to citizenship they will be. >> there isn't a pathway and under this congress there won't be a pathway. >> maybe this will push the federal government to do so. >> america -- leslie, were you

have paying attention on november 2 when america said no, we are going the wrong direction? that's -- >> i thought america said they wanted the economy turned around. they wanted more jobs. i didn't hear america saying they didn't want illegals going to college in california. >> i'm going to tell you something. 10% of the illegals in this country work farm jobs. the rest of them work good jobs americans would love to have. you want to fix america's economy, sentd illegals home and you will put 10 million americans back to work and i'm not talking about picking beans. shannon: we are talking about a $23,000 subsidy for these kids. i would think this money has to come from people living and working in the state. their parents paying into the system. if we have people who show up and go into three years of high

school. you have to question if the money is going to be there as the expense of someone here legally. what do we do about that? >> statically the ememployers who are wrong to employ them usually pay their taxes. a number of these parents pay into the system. when lars talks about someone going home to their own country and trying to reenter this country, if you have been here 18 years, this is your home, this is your country. >> let me point something out. who is paying for the college for these kids unless they are getting all slips which is displacing american kids? it's being paid for by their parents. their parents are here illegally if their status has not been adjusted and in most cases it hasn't. shannon: leslie, the last word. >> i'm paying for it, and i'm

not complaining. >> i'm paying for it and i'm complaining. >> stay in oregon. shannon: great to see you both, thank you. new details coming in on our top story. u.s. military servers routed to servers in china. how can we tell if the chinese got behind the fire wall. we are awaiting a news conference with that missing ohio family as they search for a mother, her son and a family friend. >> i know the time frame has been long between when they disappeared, but we have hope that we'll see our loved ones soon. are you receiving a payout from a legal settlement

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for people i would love to share this moment with. they are no longer with us and they gave everything for their country. in doing that we'll not be able to enjoy this together. shannon: those are the humble words of staff sergeant salvatore giunta. he's about to receive the medal of honor. camera crews have arrived. the president is going to present salvatore giunta the award. we'll bring you that live in 10 minutes. this guy said i look at other meld of honor winners and i i'm not those guys. a brand-new report raising red flags on an internet security breach. for 18 minute one day last april a huge amount of data from the

u.s. government and military sites was suddenly routed through servers in china. city could disrupt data trans% and it could allow data to be diverted to a site unknown to its user. is there any way to tell if the chinese slipped behind the fire wall? explain to us the logistics of this. from way understand, there are servers that route traffic. how does this work? we understand this was a chinese server that welcomed the protocol. >> this is a fundamental way which the internet works. if we look to pass traffic through the world we take a look at our neighbors and ask them if they know the best way to route. when traffic goes threw offen times we have to rely on this

web of trust. everyone has to essentially trust everyone else. we have to make assumptions sometimes. shannon: should we be trusting china which allegedly has good cyber snooping skills. >> anything from a government perspective if it's deemed worthy of protection will be encrypted. so if anyone -- effectively anyone within the entire space in which the traffic is routed, able to read. if it's encrypted it makes it more difficult. shannon: could they have rerouted that information elsewhere to keep it later to

unencrypt it? is that possible? >> they could have. the difficulty is encryption is here for a reason. it make it difficult to determine what the actual data actually is. iit's a fundamental method how e deal with data. shannon: is there any way for the original user to know if that data was siphoned off, fit was unencrypted? >> the main thing a user can do. if they look up in the top bar they may see https. that wil indicate you have an encrypted connection. it insures any data you would

like to protect is under the circumstances is the best option. so from that perspective, the users need to just understand that. shannon: certainly risks involved whenever you are on the internet. a hearing underway on the foreclosure paperwork mess. we'll see what is in that report. we were wondering who called out the cupcake cops to crack down on two young boys and their curbside bake sale. we learned who. that touched off a whole new round of controversy.

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shannon: new developments on the cupcake crackdown in new york. two 13-year-old boys told to pack up their baked goods and get home when they were caut peddling pace tris without a permit. >> reporter: they were also peddling dangerous goods called brownies and rise crispy cakes. the cops say you can't sell cupcakes here because you need a business license. the families of the two young

men found out that it was actually a local city councilman who called the cops on them. so one of the families called a local newspaper. the newspaper found the police report that it was in fact a councilman who called the cops on the kids. now he's the town villian. the kids are the heros and the kids are nationally known because this whole thing went viral. the kids acknowledge when the cops showed up it was kind of scary. >> i was very surprised. i was shocked because it was kind of like without warning. i didn't -- i wasn't expecting it at all. i didn't know -- they just came win said okay. >> reporter: as for the city councilman, he had no idea he was about to go outed by the paper web said, thanks to you, talk tbght newspaper, i'm the most hated person. i'm overwhelmed by the amount of

negative email and threats myself and family have received over what was basically a lack of communication. in hindsight i should have spoken to the boys. he went on to say maybe this wasn't the right thing to do. one of the mothers of the kids said the coverage of this is over the top and she feels bad if the family has had unhappiness over this. but you noel be scrooge and the kids will be tiny tim. shannon: just in time for christmas. this is a fox news alert. moments ago a judge set a $1 million bond for matthew hoffman. the suspect being held on kidnapping charges. the girls mother, brother and a friend of her mother's are still missing. she was found in his basement. why the suspect spent six years in prison and got out just a month ago. we are waiting to hear from the

man of the hour. president obama set to award one of the military's highest honors to staff sergeant salvatore giunta. >> as i was running, i noticed -- that's not and afghani. i just run and shoot, shoot and run. eggland's best eggs.

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shannon: president obama set to meet with leading hispanic members of congress and discuss the so-called dream act. critics say it's a back-ended way to buy amnesty. we are waiting for something that has not happened since the 1970s. the president set to award the

medal of honor to a living soldier. salvatore giunta braved a hail of bullets to pull a fallen comrade after the battlefield in afghanistan. we are awaiting a meeting on capitol hill. while we wait for the medal of honor ceremony, let's check in with carl cameron. >> reporter: this is a proposed two-year moratorium. iit somehow ends up in the bill. lawmakers, republicans, specifically the gop of the senate have been behind closed doors virtually all day. they emerged to announce their newly elected team. in the next couple hours they will have a vote, just the republicans. this is non-binding. they will find out how supportive they are as a group

for this ban on earmarks. mitch mcconnell did a 180 yesterday having opposed any type of moratorium for years arguing that's important congressional spending and lawmakers shouldn't give up the privilege. he decided to listen to the voters of 2010, and particularly the tea party who pushed aggressively for this ban. there are some democrats pac pag this. this is a democrat from missou missouri. >> i think it's important my party his to the voters. we have got to listen to the voters. that's why i think this earmark vote is so important. it isn't always what you expect. >> reporter: she'll support a ban and she is not expecting a

lot of democrats will join her. harry reid * as nancy pelosi have long supported if earmarks. so there is a lot of pressure on president obama and whether he will make good his pledges as a senator and presidential candidate to go ahead with earmark reform. they will vote tomorrow and put everybody on record whether this is a good or bad thing. new worries about the nationwide foreclosure crisis and how it will affect every single homeowner. even if you are not behind on your mortgage payments. that's set to start at the bottom of the hour. eric bolling is the anchor of "follow the money." why are all of us going to pay even if we are managing to keep

up. >> following the money became difficult recently. there have been scandals. sub prime, we know about that. robosigning -- we are talking about here. it comes down to modifications. banks are trying to robosign and rubber stamp foreclosures. they were pushing the process through to get the bad mort gauges sometimes not so gad mortgages off their books. but the problem was they were putting good mort gauges or questionable mort gauges in with bad mort gauges and now people -- bad mortgages. so a lot of mess to be cleared out on the hilda. shannon: thank you very much. we'll head to the white house. we have been telling you about this all last hour. staff sergeant salvatore giunta, you see him at the white house. he's going to receive the medal

of honor. in 2007 he was in afghanistan, caught in a firefight. and he was a true hero that day going in to save a wounded comrade. let's listen into the ceremony. >> we commit ourselves to service to our families and fellow citizens. during combat it inspired renewed unity in our own land. as we celebrate this special day with sal's wife, brother, sister, may we remember in prayer all military families who await the safe run home of their loved one. as we pause to remember the many freedoms we enjoy as a nation. let ups remember to give thanks to those especially who played the glorious liberty through their blood, sweat and tears. this we pray in your holy name,

amen. >> on behalf of michelle and myself, welcome to the white house. thank you schap lan -- thank yo. with all the privileges that come with serving as president of the united states, i have none greater than serving as commander-in-chief of the finest military the world has ever known. of all the military decorations a president and nation can bestow, there is none higher than the medal of honor. today is particularly special. at end of the vietnam war, the medal of honor has been pea warded nine times for conspicuous gallantry in an ongoing or recent conflict.

sadly our nation has been unable to present the decorations because each gave his life, the last full measure of devotion for our country. indeed as president i presented the medal of honor three times, and each time to the families of a fallen hero. today, therefore, marks the first time in nearly 40 years that the recipient of the medal of honor for an ongoing conflict has been able to come to the white house and accept this recognition in person. it is my privilege to present our nation's highest military decoration, the medal of honor, to a soldier as humble as he is heroic, staff sergeant salvatore giunta. now, i'm going to go off script here for a second and just say i

really like this guy. [applause] i think anybody -- we all just get a sense of people. and who they are. when you meet sal and meet his family, you are convinced this is what america is all about. and it just makes you proud. so this is a joyous occasion to me. something i have been looking forward to. the immediate after honor reflects the grad got used to an entire -- the gratitude of an entire nation. we are joined by members of

congress. we are also joined by leaders from across my administration and the department of defense, including the secretary of defense robert gates, chairman of the joint chiefs of staff admiral mike mullen. where is mike? there he is right there. army secretary downmccue and -- army secretary john mccue. we are especially honored to be joined by sergeant giunta's fellow soldiers from the 173rd airborne brigade that now welcomes him into its ranks, the medal of honor society. give them a big round of applause.

we also welcome the friends and family who made staff sergeant giunta into the man he is including his wife ginny and his parents ann as well as his siblings. it was his mother after all who taught him as a young boy in small town iowa how to remove the screen from his bedroom window in case of fire. what she didn't know in teaching sal how to sneak out of his bedroom in the dead of night, she was unleashing a future paratrooper. during the first of his tour -- two tours of duty in afghanistan, he was forced early

on to come to terms with the loss of comrades and friends. the team leader at times gave him a piece of advice. just try -- you just got to try to do everything you can when it's your time to do it. you just got to try everything you can when it's your time to do it. salvatore giunta's time came on october 25, 2007. he was a specialist then. just 22 years old. sal and his platoon were several days into a mission. the most dangerous valley in northeast afghanistan. the moon was full. the light it cast was enough to travel by without using the night vision goggles. with heavy gear on their backs and air support overhead, they made their way single file down

a rocky ridge crest along terrain so steep that sliding was sometimes easier than walking. they hadn't traveled a quarter mile before the silence was shattered. there was an am burg so close that the -- there was an ambush so close, fire hammered the ridge at hundreds of rounds per minute, more, sal said later than the stars in the sky. the apache gunships couldn't engage with the enemy so close to our soldiers. the next a ton heard the shooting but -- the next platoon heard the shooting but were not close enough to engage. when a third was struck in the helmet and fell to the ground. sal charged head long into the wall of bullets to pull him to safety behind whatever cover

there was. as did, sal was hit twice. they were pinned down. two wounded americans still lay up ahead. sal and his comrades regriewched and counter attacked. -- comrades regrouped and counter attacked. they threw tbre naids, shooting -- they threw grenades. charging ahead. finally they reached one of their men. he had been shot in the leg but he kept returning fire until his gun jammed. as another soldier tended to his wounds, sal sprintd ahead, meeting relentless enemy fire. he crested a hill alone with no cover but the dust kicked up by

the bullets biting into the ground. there he saw the silhouettes of two insurgents carrying the other wounded american away, who happened to be one of sal's best friends. he took aim, he killed one of the insurgents and wound the other who ran off. sal found his friend alive but badly wounded. sal saved him from the enemy, now he had to try to save his life. even as bullets impacted all around him. sal grabbed his friend by the vest and dragged him to cover. for nearly half an hour sal worked to stop the breathing until the medevac arrived to lift the oned from the ridge. american gunships worked to clear the enemy from the hills. with the battle over they picked up their gear and resumed their march through the valley. they continued their mission. it had been as intense and

violent a firefight as any soldier will experience. by the time was finished, every member of first platoon had happen nell oshrapnel or a bulln their gear. the parent of joshua and hugo are here today. i know that there are no words that even three years later can ease the ache that their hearts or pay the debt that america owes to you. but on behalf of a grateful nation let me express profound thanks to your son's service and their sacrifice. could the parents of josh and hugo stand briefly? [applause]

>> i already mentioned, i like this guy, sal. as i found out when i are first spoke with him on the phone and met him in the oval office. he's a low key guy, a humble guy. an doesn't seek the limelight. he will tell you he didn't do anything special. he was just doing his job. that any of his brothers in the unit would do the same thing. in fact he just lived up to what his team leader instructed him to do years before. to do everything you can.

staff sergeant tbrks iunta, without hesitation you charged forward to extreme enemy fire, embodying the warrior, i will never leave a fallen comrade. your courage prevernted the capture of an american soldier and brought that soldier back to his family. you may believe you don't deserve this honor, about it was your fellow soldiers who recommended you for it. hour commander said you lived up to the standards of the most decorated soldier of world war ii audi murphy. they were killing my friend.

that's why salvatore giunta risked his life for his fellow soldiers because they would risk their lives for him. the absolute confidence they had his back. one of them sal said, he said they are gist as much of me as i am. they are just as much of me as i am. i would ask sal's team, all of the company who were with him that day to stand and be recognized as well. [applause]

>> i want the thank you for your service. we are all in your debt and i'm proud to be your commander-in-chief. these are the soldiers of our armed forces. highly trained, battle hardened. each with special eyed roles and responsibilities. -- each with specialized roles and responsibilities. and they volunteer. in an era when it's never been more tempting to chase narrow self-interest. they chose the opposite. they felt a tug. they answered a call. they said i'll go.

for the better part of a decade necessity endured tour after tour in distant and difficult places. they have protected us from danger. they have given others the opportunity to earn a better and more secure life. they are the courageous men and women serving in afghanistan even as we speak. they keep close focus on their mission to break the back of the taliban insurgency. they possess the steely resolve to see their mission through. they are made of the same strong stuff as the troops in this room and i'm confident they will continue to succeed in the missions we give them in afghanistan and beyond. our brave servicemen and women and their families have done everything they have been asked to do. they have been everything that

we have asked them to be. if i'm a hero, sal has said. then every man who stands our me, every woman in the military. every person who defends this country is. and he's right. this medal today is a testament to his uncommon valor. but also the parents in the community that raised it. the military that trained him. and all the men and women who served by his side. all of them deserve our enduring thanks and gratitude. they represent a small fraction of the american population. but they and the families who sea wait their safe return carry far more than their fair share of our burden. they fight halfway around the globe, but they do it in hopes that our children and our grandchildren won't have to.

they are the very best part of us. they are our friends, our family, our neighbors, our classmates, our co-workers, they are why our banners still wave, our founding principles still shine and our country the united states of america still stands as a force for good all over the world. so please join me in welcoming staff sergeant salvatore giunta for the reading of the citation. >> the president of the united states of america authorized by act of congress has awarded in the name of congress the immediate after honor to specialist salvatore giunta of the united states army.

specialist salvatore giunta deficiented himself at the -- distinguished himself with an armed enemy in afghanistan on october 25, 2007. while conduct the patrol as team lead were company b, specialist giunta and his team were navigating through high terrain. while under heavy enemy fire salvatore giunta engaged the enemy. seeing that his squad leader had fallen and believing he had been injured. he exposed himself to fire and helped to him to cover and administered aid. while administering aid, enemy

fire struck his body armor. he engaged the enemy before preparing and throwing grenades. attempting to reach additional wounded fellow soldiers sep rated from the squad, sal where and his steam encountered a barrage of enemy fire. the team continued forward. and upon reach can the wounded soldiers, salvatore giunta realized there was still one wounded. he observed two insurgents carrying away an american soldier. he immediately engaged the enemy, killing one and wounding the other. upon reach can the wounded soldier he began to provide medical aid as his squad caught up and provided security. his unwavering courage and leadership while under enemy fire were integral to his

platoon's ability to defeat an ambush and recover a wounded soldier from the enemy. his extraordinary heroism, selflessness are in keeping with the highest military service. company b, 503rd infantry regiment and the united states armoryarmy. [applause]

shannon: sergeant salvatore giunta award the immediate after honor. brave and humble. that's a true american hero. we'll be back in three minutes with a key white house meeting. a top army officer joins us to talk about cuts to the tune of $100 billion from the pentagon budget. right now, though, one more salute for staff sergeant giunta. may he wear the medal of honor

with pride. >> please give sal and gin great wisdom. may he continue to meet them all with courage, honor and humility. upon all at national leaders they strive together to lead our greet country. god bless the members of our armed services and god bless america we pray in your holy name, amen. how'd you do that? do what? it tastes t good to be fiber. you made it taste like chocolate. it has 35% of your daily value of fiber. do it again. turn it into somethintasty. this guy's doing magic. there's chocolate chips in here now. how'd you do that? right! tasty fiber, that's a good one! ok, umm...read her mind. what's she thinking? that's right! i'm not thinking anything! [ male announcer ] fiber one chewy bars. cardboard no. delicious yes.

shannon: we are awaiting news conference in the case of a missing ohio family as a desperate search is underway for tina herrmann, her on and her friend. >> reporter: that news conference with the sheriff expected to begin 30 minutes from now in the building behind me. we expect to learn more in the search for that missing family. there appeared to be a video in court for his first bond hearing. he's being held on $1 million bond for the lone kidnapping charge against him. but there could be more charges filed depend opening what police find with regard to that missing family. authorities including divers and civilians as well were combing a nearby park looking for clues. there were not only divers with

you snorklers in the water searching for potential evidence in this case, including anything linked to tina herrmann or her son. matthew hoffman is being held on a kidnapping charge. hoffman apparently held that 13-year-old girl in his basement for several days. she is now with family members and we hope to learn more about the progress of this investigation in a news conference. shannon: thank you very much. this is a fox news alert. we hearing fro from charlie ran. he says i'm disapintsd by the unfortunate findings of the ethics stubb committee. the committee's actions are unpress dented in view of the fact that they arrived without

rebuttal or counter evidence on my behalf. you remember yesterday he walked out of the hearing and said he didn't have counsel. he's reacting to the conviction. new online survey raising questions about how the view from inside the beltway is different from the view from around the rest of the country specifically when it comes to the election results. michael reagan joins us to break it down. one of the things we are seeing from the online poll results. many in the beltway saw a different message from the mid-term elections. the elite site as less of a pronouncement on obama and his policies, but rest of the country says it was about that. why the disconnect? >> there has always been a disconnect went he athletes in d.c. and the rest of us in the

rest of the united states. this has been going on for a long period of time. the people in washington just really don't get the fact that people out in america are not happy with the way things where being done in washington, d.c. that's why they have given the republican party a mulligan in this election saying we are putting you in there, this time you have to pay attention to america, not the elites back in washington. shannon: do you think that's what the earmarks statement by senate minority leader mitch mcconnell was about yesterday? >> absolutely. he said this is a symbol of the problems in washington, d.c. not that they break the bank. but the fact of the matter is we read about these things all the time. earmarks are used to buy votes from other members of congress to pass certain pieces of

legislation. so you see what's going on with earmarks and that becomes a i am boflt fraud, the waste and all the things going on in washington, d.c. and we are tired of it. shannon: let's talk about the average vote were out there. the coasts have a lot kno more o know about what's going on. do you think they proceed at their own peril? >> absolutely. if they don't get it this time of they will be replaced in the 2012 election.. i don't know if california gets. we just reelected barbara boxer and jerry brown to a third term in the stat state of california. that's not going to bode very well for the state of california within. $500 billion in the arears in pensions. we have real problems in california. i'm hoping and praying that washington elites don't think they need to bail out

california. we need to figure it out ourselves. shannon: let me ask you about california. for most places november 2, what's going on out there? there were hopes for the first time in a long time within the gop they would be able to take on the governorship. barbara boxer's senate seat. but when it couple down to it is wasn't close. >> because meg whitman could never relate to anybody making less than a million dollars. people thought she was the only one supporting her campaign with $140 million in it. she never took it some jerry brown. carlie, and the other hand ultimately gave up. she put $5.5 million in a primary to defeat a person could have defeated for $1 million. i think she just gave up. i don't think she really wanted to become a senator. somebody in the family didn't

want her to be senator. it's unfortunate for the state of california. i said on one show, i think this show a few weeks ago, it was like the campaigns were being run by the brain dead wing of the republican party because these were two races we should are won and we did not. shannonnot.i will tell you this, for years we have goon taken election and have gone home and let take care of it. the tea party, and others. we'll keep an eye on members of congress to make sure this time they stay with what america wants, not with what just they want. if they don't do the right thing. we can change this all over again in 2012. shannon: michael reagan, thanks for joining us today. the mission on reducing the debts is suggesting the pentagon slice $100 billion off its

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shannon: moments away from an important white house meeting between several key hispanic leaders and president obama. they are appealing for the president to push for a controversial immigration bill known as the dream act. speaker pelosi said she would like to see it in the house this week. why immigration reform and not a federal budget or reforms?

why is it a pry nort -- why is a priority in this lame duck? >> it's in conspiracy sit with the american dream. this would give a path to citizenship for those young americans who struggled against all odds to make it through college and served in the military and have a rightful place in our society. it should be the law of the land but i believe it's going to fall victim to the legislative calendar. we have 28 days in this session. even though i do support the bill. we have more pressing pieces of legislation around the defense approach yaition -- defense appropriations. this legislation will not see the light of day. shannon: they are still talking

about it. do it rocket ahead of tax cuts? >> they are using the phrase path to citizenship. may this be a priority for the democrats. like speaker pelosi being a symbol of what's wrong with the left. this dream act is what is wrong with these people want to do. in california illegals will get in-state tuition benefits. when lindsey graham talks about illegals getting to the back of the line, i don't think that's what he means. they will pay less than my kid or your kid who wants to go to qulej in california if they don't happen to be an in-state residents. i believe with all my heart this disaster is a big issue and the candidates in 2012 who wrap

their arms around this are going to win. we are stick of illegals getting to the head of the line. we are sick of benefits that. it's time to knock this out of the park. shannon: bernard, mike mentions 2012. is the push for the dream act so heavy in this lame act because numbers will change in january and they may change again in 2012? is this the best chance to get it through? >> crazy radicals liker o like t up on the children of illegal immigrants and you will be casting your own defeat. your congressional republicans in a rout got 31% of the vote.

if you cannot find a bipartisan approach to beginning the solve the immigration problem by granting sit seasonship to those children who d granting citizenship to those children who came with their parents. you are going to fail. >> you are going to stub your toe on this. i hope you make this a centerpiece of the democratic party agenda. you don't heart rage i hear north, south, east and west from listeners who are fed up giving opportunities to illegals ahead of american citizens. i want you to justify that taken illegal in california gets to pay $23,000 less than an american citizen to go to college there? >> we are talking about giving children of illegal immigrants the opportunity once they have served in the military or gone

to college. this exposes the lies the republicans are. they have no interest in forging bipartisanship on any issue. give these people a chance. they have no desire to cooperate. >> the voters woke up in the mid-term. it's interesting coming from a democrat. you got your butts kicked over an issue like this and you will get kicked again in 2012. i admit a lot of republicans don't get it, too. there are republicans like john mccain that are clueless about the passion and anger people feel. shannon: you mentioned butt kick and outrage. but there will be a meeting today between the president and hispanic lawmakers. they expect something. house speaker nancy pelosi want to get this passed, too.

do they owe this segment of their base? >> they owe it to these people. i believe that dream act is the most common sense incremental first step towards beginning to have a conversationn and a solution to immigration renorm ire --immigration reform in this country. i think the republicans who jumped onboard could have been -- >> you guys talk about starting the conversation. why don't you take a moment and finish the die log. do you want amnesty given to illegals. do you want a border? do you want illegal immigration laws enforced? >> if we kicked out the illegals you wouldn't be able to go a restaurant or a building that is cleaned. common sense rational approach. >> what does that mean?

>> put up a fence and keep everybody out and -- we are a nation ofism grants. >> we are a nation of laws. shannon: we'll leave it with agreeing to disagree. critical question in washington right now. can they cut $100 billion from the pentagon budget and still keep our military sharp? we'll talk with a former hop army officer i -- we'll talk toa former top army officer. how the late princess diana is playing a role in all the hoop hoopla. are you receiving a payout from a legal settlement or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today.

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. shannon: president obama's pentagon is asked to cut $1 billion from its budget. and some have no problem with it. so writes the cut? what can we cut? >> one thing the administration fails to point out is $27 billion has already been cut out of this budget by the obama administration. while they were coming up with a trillion in stimulus they cut $27 billion from what the joint chiefs of staff wanted. so the defense budget in congress right now, is $47 billion less than what our joint chiefs of staff wanted.

shannon: they are dragging their feet on the defense bills. do you think it has weakened any position within the pentagon or department of defense? >> it probably has. the army chief of staff, there are thing they wanted to have for national security and they have been tang out of the defense budget. now the commission is talking about taking additional budget steps. this country is teetering from an economic standpoint. we have to find some cuts and do it smartly. i'm concerned they are cutting for cuts with the research, the procurement, with modernization. those are not ripe to cut. they have said as far as overseas bases there are some we can cut and i do believe we can get some savings from cutting some of the base overseas.

from a personnel standpoint there are some things we can cut. the g.i. bill, i have been a long and strong supporter. about it doesn't provide benefits for the military service members to go to college, also the spouses. i think we ought to look at that as well. shannon: we know the debt commission, whatever comes from the commission would be official december 1. any other advice for them? $100 billion sounds like a lot. >> it's a huge chunk. i hope this new congress -- one of the great things about this new congress, we have members who actually have on the battlefield experience in places like iraq and afghanistan. and know thes in and out of the pentagon bureaucracy.

we are talking about allen west. congressman duncan hunter who was a marine in afghanistan and iraq. i hope the new republican leadership listens to these men. shannon: do we have to calculate into the equation how our enemies will perceive the equation? cutting billions of dollars from our defense would be discouraging i would think. >> if we look at the biological threat and security threat. it's the pentagon leading the way on measures to deal with both of those threats. way don't want to see is what's happened to great britain. they have cut so much to the bone and the fat of the military that they are having some gamble with national security. i don't want to see the united states in a position where we have to gamble with our national security. shannon: on capitol hill they

have not been willing to kit. but if we are dealing with the reality after faltering u.s. economy of, is it the reality everyone will have to cut including the military? >> i come back to the point we already cut $47 billion out of what the joint chiefs of staff said we had to have. don't forget whenever we had a recession, congress has actually increased the military spending. they didn't do it in the obama stimulus plan, they did it through social security spending. it was the 1994 republican congress came in and increased national security and helped drive our economic recovery. shannon: that's often a part of the puzzle. thank you for your insight today. we are awaiting new details from police in ohio about a missing family. efamilied

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