reforms kick in, premiums go down and this is before we get to phase two or three. the c.b.o. estimates show when reforms kick in, it brings premiums down. so we're very confident that this bill, which already shows will lower premiums, combined with the things that pris let me go back to one thing and it's hard to quantify. we had a good risk pool in wisconsin. utaha good risk pool. had you have a risk people that covers the ctastrophic cost of people with catastrophic ins all other insurance products don't have to price that into their

insurance and you dramatically stabilize and lower the price of the insurance. been now c.b.o. hasn't so we're confident we're moving in the right direction, restoring market freedom. we think this approach is much smarter and better and dealing with how to get costs down, including access and preexisting conditions. >>. >> reporter: [ inaudible ]. >> i haven't given out of that this i haven't given any thought to that. >> yeah.

. >> p. >> reporter: [ inaudible ]. >> i'm the speaker of the house. my job is to move bills through the house in one word here in the house we're going through four committees. we constantly ged feed pac and so that we have a bill that can pass. we feel like we're making grout strides and great progress on getting a about that. >> i have no in nfrp is he p so

i'm not sure what exactly their concerns are in. to go p senators, if they have a concern or an, u are proo temperature so i can't understand why they want to have a pass year or what but they'll have every opportunity to pass this legislation. that's the legislative process. >> reporter: on the president's budget, some of your colleagues point to serious concern about potential cuts -- 1,237 be -- honestly, haven't looked at the

budget function. that's function 150. i haven't looked closely at what they're proposing in function 150. this is something that i have immersed myself in for dick brad did had. >> thank you. houser paul ryan objecting about the health care bill. good morning, i'm ali shell country in our msnbc secretaries in work. he said, many ant.

approximately f health care premiums are set to rise at at last 5% a year. when take 5% and drop that by 4.5%. this and there's no descent i know most of you have read the bbr br thank for being prp permanent ffrm.

>> i think that's a correct statement. >> you had on monday if you had to vote vot on the next are. >> well, i'm a process guy. we've heard a lot of talk about regular offered and committed and stuff like that but i would just say a couple of things. one is a committee meeting without witnesses, those are stake holders, omits part of regular order. we need to hear from people who are not members of congress, who a are. you'd need to hear from insurance companies, from retired people, from hospitals, from dos and on and on. and one of the committee meetings that eye think been admitted that would be incredible company on the road too reno. >> congressman, you this will

yourself short pvg it's been getting the best deal you can get for the long term in health care. >> the problem is we're midding the waters with somebody being able to say they won politically. as we know from the previous and you've been getting some feedback from some of those groups. do you think there's an end

you'd like to swore or do you want to every from a build as hot the problem without having any of those hearings, awill are rose be frch -- what we have is who can shot the loudes. there's way too much in this. people are talking about whether or not the bird rule -- >> i'm going to go back and fchb fchb it's like listen, ma, i

appreciate you asking yourself the question. up have a particular problem innia where you've seen heights go up higher than others in the stem f if we mess this up, they may simply leave the market and then what are you left with? that is not reform >> i hope this that -- casey, you're in the room where paul ryan was. >> yes. we are here. he through it out there like it was assumed but it a new way to

put this that he is talking about try to prn they had a slightly mother protes in the wunl committee. inted they very quickly ps pb including dave brat who hold former majority lead are eric can't our's seat. he lost in a big surprise and in some ways foreshadowed with donald trump in in latest presidential election. he has been a vocal opponent of th this. speaker ryan rolled up his sleeves and zen and he walked through our slides and said this

is our one and only shot to repeal and change the health care bill. i plant to play for you a little bit what did happen in that budget markup to give you a little bit of a flavor of what the conversations are like right now on capitol hill. take a look. >> right now obamacare is imploding. we were promised premiums that would decrease by $2,500. instead off yaj pam it was an ideological document, a familiar dom about choice that doesn't,ist. >> sos you consideration. the or thing that the speaker said today that i think was interesting is he talked at some length about the president's involvement in trying to sell that bill. of course he was back on the -- i guess it's not the campaign trail but it sure felt that way last night in nashville and in michigan.

the speaker pointed to that and said he's somebody who really connects with these voters and who is trying behind the scenes ce hard to crack a about, talking kem so there's still a couple of twists and turns for this bill to come. the rules committee is next week. that's where you'll see any major changes they are able to negotiate. >> imgoing to come down d.c. next week, stay cler to you. >> great, we'd love to have you. >> i suspect you're so busy anyway -- >> highly one of the midsts we have here is that the united states has the best health care system in the worldi want to look at u.s. performance rankings from 2013. can you go on the internet.

this is the commonwealth fund. they used oeca data and they ranked 11 countries. out of the 1 countries, the ninth out of 11 and because so many millions you are the best in the world in terms of what you can get. if you're an uninheuer america out of 11 developed countries dead last one again. same data set looking at overall aengings of britt was number one, switch hitterland is number two, sweden is number three. guess who's in dead last place

once again, the united states. there's a kind of a regn w all these people weren't ruing to get, there are some countries higher but 807, the average of all developed countries is 79.3 years in life expectancy. the united states bringing up the rear again, 78.8. i will say one thing. i put this financial so i've expectancy is not simply lower because of a peek pending per capita in develop and in the frn

so we spent more than double what everyone else in the developed world does on they can pb and these are the numbers, when i say sh else is the. >> okay, also this morning, a second federal judge, this one in maryland has issued a tem appropriate block from pee brom nayly f and lit yesterday up

frurc judge watson wrote a reasonable objective observer would find it intends to disfavor a particular religion. president trump reacted as he learned his second executive order had been blocked during a rally in nashville last night. >> a unprecedented judicial overreach. this ruling makes us look weak. which by the way we no longer are, believe me. this is a watered down version of the first one. this is a watered down version. and let me tell you something, i think we ought to go back to the first one and go all the way, which is what i wanted to do in the first place. >> nbc's peter alexander joins us now live from the white house. peter, the president is vowing to fight all the way to the supreme court. what are they doing this morning about it other than complaining about it? >> well, ali, you're exactly right. we saw president trump briefly yesterday as well, sean spicer was on air force i traveling back from that event.

sean spicer told us the lawyers are now reviewing this right now. the president was defiant, the lawyers in the department of justice are persistent with their effort to challenge this, if they insist there is will be a challenge to appeal that temporary restraining order. they said the president's executive order falls squarely within his lawful authority in seeking to protect our nation's security and the department will continue to defend this executive order in the courts. basically they strongly disagree with the rule they go say is both flawed in its reasoning and in its scope. ali? >> if you're going to be in the white house press conference, that has become must-watch tv. >> for sure. >> joining me is mayor steve adler, the democratic mayor of austin, texas, which is among one of the sanctuary cities that don't seek to enforce federal immigration laws within the city.

mayor, thank you for being with us. your city was among those that saw protests. how is this new travel ban going to affect you? >> at this point it looks like it has the same kind of impact. our companies in town, faceok, apple, google, are all expressing reservations that are being able to get people into the country that are a part of our economy. >> austin is sort of like an appendage to the silicon valley. it's a high tech hub. you get a lot of your labor from places that are not the united states. >> we do. over 20% of the population in austin is foreign born. but certainly with the high tech industries that we have, we have a lot of entrepreneurs and innovators that come to austin from all over the world. >> austin's seen a number of

immigration and customs enforcement raids. the president is threatening to withhold federal funding from cities like yours. i don't know how that effeaffec you but you said regardless you're not back down. >> we have a city that has a lot of scared and worried people. my goal in this city as a mayor is to fill potholes and collect garbage and make sure that we're safe. so we follow the advice of our public safety professionals and they tell us that in order for us to be safe and we're one of the safest cities in the country, in order for to us be safe, there has to be a trust relationship between law enforcement and communities so that victims step forward and witnesses step forward so police can go anywhere. communities that focus on that trust relationship are in fact the safest communities in the country. and we're trying to preserve that safety. so that's our concern here locally. we're just trying to keep people safe. >> mayor, in your city, like in other cities like yours, there

are pro-trump rallies, too. you're the mayor of a city where there are some people who believe in what trump is saying and you have to represent them, too. >> absolutely. and that's in the grandest tradition of not on in the country but austin, texas. we've been accused of suffering from terminal democracy here in austin. we love different points of view, for people to be able to express what they're thinking. so we invite those conversations in this city. >> do you still have that great slogan in your city, "keep austin weird"? >> we do and we're home to good, creative people. >> coming up live, new reaction from hawaii's attorney general after a federal judge rules in his favor blocking the president's revised travel ban.

>> the president might make certain decisions but the way our government works we need to able to take our steps to check and balance out that whole process. >> plus president trump's draft budget, which departments could benefit the most and what it signals for the station's long-term agenda. there's nothing more important to me than my vacation. so when i need to book a hotel room, i want someone that makes it easy to find what i want. booking.com gets it. they offer free cancellation if my plans change. visit booking.com. booking.yeah.

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president trump has come up with an outline of a new budget. it includes an additional $54 billion of defense and national security. the department of agriculture could see a 21% funding cut, the labor department could see similar cuts, the epa could see a dramatic 31% reduction in funding, the elimination of 50 programs and 3,200 jobs. i'm joined by bob hormats, former executive with goldman

sachs. the state department is taking a bit hilt het here and people do know how it affects their lives. >> the president himself and his team have made the case that they're moving to hard power away from what they term derisively as soft power. the problem with that analysis is that the state department does a number of things that are essential to the ability of the united states to extend its relationships around the world, to influence events around the world and to project power around the world. you have people in the state department who are very familiar with what's going on in various parts of the world where there is no military presence per se. in egypt, and throughout the middle east. there's a slight military presence, mostly the naval presence but basically you have

diplomats there, people who go around, who undetand the various power retions, the political parties, the leaders. they work with the militaries, with the foreign offices. if you're going to project power effectively, you have to know what's going on on the ground in order to do so. >> and if you believe we're in a bit of a tinder box in this world, then that ability to project power also involves the ability to diffuse situations, to know someone somewhere else in the world where you can pick up a phone and say stand down, we've got this, to create a diplomatic situation. >> exactly. the answer in every problem is not to engage the american military. the american military doesn't want that and this would not not want it but not be able to project power everywhere. you have to have a diplomatic approach to resolving a number of these problems. our relationship with china, we're not going to use the military every time we have the

dispute with china over something. we need to have a diplomatic process that enables us to work it out in a mature way ash peaceful way in a way that doesn't involve military engagement. >> and tell us about information gathering. you've got the cia and the 16 intelligence agencies. but the state department is actually a source for understanding what the issues are and where the points at which america can get involve exist. >> precisely. the state department works with foreign offices, it works with the prime ministers and presidents of these countries. it works with various people at various levels, not just in the capitals but in various parts of the country where you have consulates and they need to know what's going on not simply in the capital city but throughout. >> and the state department is sort of the leading edge in terms of getting the message out

that america wants to be put out the, snsors a lot of programs with local officials or journalists or whatever th se is to develop best practices. >> indeed. a lot of countries, even countries that are not democracies per se are responsive to public opinion. the diplomacy of the united states and american diplomats around the world help to present america's views around the world and help to influence public opinion in those countries about what its relationship with the united states should be, utilizing our view of american interests to make this case. the problem with in big budget cut, it not only a number, we have not seen the strategy behind it. why are they cutting certain things? what is the strategic cost? just taking a meat cleaver to

the kos costs -- >> it's the same thing sequester. >> we need a strategy. it's tough to make these decisions sensibly without understanding the strategy and costs and benefits. that you need to do first before you start doing the meat cleaver approach. >> thank you bob hormats. >> a federal judge in maryland also ruled against the president's travel ban. hawaii's state attorney general joins me now. he filed the lawsuit that got the president's new travel ban blocked. sir, thank you for joining us.

donald trump railed about this decision to block the new travel ban last night. i got to play it back for you again. >> an unprecedented judicial overreach. this ruling makes us look weak, which by the way, we no longer are, believe me. this is a watered down version of the first one. this is a watered down version. and let me tell you something, i think we ought to go back to the first one and go all the way, which is what i wanted to do in the first place. >> going all the way. he talks about the supreme court, taking it all the way to the supreme court. what's your reaction? >> well, that's just one more statement that president trump has made that will support the fact that really this supposedly neutral travel ban that's in his executive order is just a pretext to discriminate against people based upon their nation of origin or against their religion and i think the

feedback that the administration is getting from the federal court system is that that's just not going to be found constitutional or even lawful. so i think that's the exchange that you see going on right now. >> i thought it was very interesting that donald trump said at that rally that this is just a watered down version of the same one and i think we should have gone back to the last one. i don't know if that's just his thumbing his nose at the judiciary. the dge in hawaii said donald trump has said this is what it's about so i can't ignore that that's what this is about. >> they really tried to get the jj judge to limit himself to the

four corners of the documents. our argument is that contest matters. it's based on supreme court laws, establishment clause case law and it really was something that judge watson here in hawaii bought into as well as that's not unusual. that's something that other federal courts have done. they can look to see what are the sthamts were made behind the supposedly neutral language in order to find the discriminatory intent. >> that's why it's interesting to me that president trump said that last night because it doesn't seem to help his case. good to talk. thank you for being with us. >> doug chin is the attorney general for the state of hawaii. coming up, health care, the travel ban and i'll talk to ted lu about the strategy to fight fake news.

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back now with more reaction to major developments this morning including speaker of the house paul ryan acknowledging changes must be made to the republican plan to repeal and replace obamacare in order for it to be passed by the house. joining me is a member of the house judiciary and foreign affairs committees, congressman

liu. what does it mean about talking to experts in the field, what happens next? >> i hope speaker ryan chooses to work with democrats. that's not what he did the first time. i can sum up for you in one word why trumpcare doesn't work -- math. you cannot keep all the great pas obamacare and not pay for it. that's what speaker ryan wants to do and it's failing. >> news to my ears, i'm a math guy. i don't really care about the ideology, just show me the math and we can work from there. >> i want to play what president trump told fox news this morning about wiretapping. >> when i say weirewiretap, tho

words are in quotes. that covers surveillance and many things. >> i remember donald trump telling me some years ago that very soon his investigators are going to come back from hawaii with proof that barack obama was a kenyan-born muslim. your reaction to the very soon we're going to find out really interesting thing about wiretapping. >> let me say we have a, quote, ridiculous, unquote, president. donald trump has access to the highest levels of intelligence. he has the highest security clearance possible. he could have just asked his intel folks about wiretapping instead of making stuff up because of stuff he saw on the news. we know that president trump is basically lying about this. that's what comey is going to testify to next week. >> do you think we're going to get much out of the open hearing?

that hearing is the nont classified stuff. >> i hope that comey will put the president in his place. the president didn't make it up, then it means that intel folks and a judge -- >> i want to ask you about the house resolution introduced last week that you co-sponsored. i don't know if it's going to go anywhere but it's really interesting. you're opposing fake news and alternative facts. how do you conceive of that working? >> we just want to raise the issue. the best way to oppose fake news is for people to watch outlets like msnbc where you report real news all the time. keep in mind, the president is scared that people will watch msnbc so you must be doing something right. thanks for speaking truth to power. >> i want to be clear we didn't offer you any you're an

immigrant. >> i am. i'm an immigrant and i'm also a veteran and that's why i'm very pleased our judicial branch has put on hold donald trump's bigoted muslim ban. >> congressman, you always speak your mind, i appreciate that, a member ofs. >> coming up, trump is planning to cut several departments. he wants to seasoned more money to the military. will the white house answer the republican call for overall spending cuts. he scheduled at sm and with safelite's exclusive "on my way text" she knew exactly when i'd be there, so she didn't miss a single shot. i replaced her windshield givi her more time for what matters most. tech: how'd ya do? ayer: we won! tech: nice!

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be sure to talk to your doctor before you begin an aspirin regimen. bayer aspirin. office of management and budget director mick mulvaney is defending donald trump's proposed budget and increase in spending. >> to your point in the trade-offs between state and military, make no mistake, this is a hard power budget, not a soft power budget. that's what the president wanted and that's what we gave him. >> it assumes coming tax cuts and deregulation will help booth

growth. that's music to my next guest's ears. he was the first chiefs economist and served in president reagan's economic advisory board, known as the author of the supply side economics, art has done everything. are you still on about the supply side thing? do you still believe that's true? >> sure. if you tax people who work and you pay people who don't work, do i need to say the next sentence that you're going to get a will the of people not working. pee people respond to incentives. it's lovely being with you. >> i always love talking to you. you know so much and distill it well. increased spending on defense. and then tax cuts on top of

that. i don't know how you get to -- that balloons the budget deficit even more. by the way, congress reached another debt limit starting today. we're sort of ignoring that. tell me how you work with this. these numbers don't add up for basic math guys like me. >> you know, current numbers don't. you're going to have an increase in the budget deficit, that's going to happen. but let's talk about defense for a split second. if you look at defense, when kennedy did the huge increase in defense spending following what he called eisenhower softness on military spending his argument was the best form of defense spending is always wasted. whenever you find yourself in a situation where you're required to use your military hardware and prowess, that was a clear sign you did not spend enough. that's the logic under donald trump and i'm not a military person. tax cuts i am. >> i know that. >> tax cuts, you cut them. you increase the incentives to grow the economy, output

employment and production, by expanding that tax base you're going to get much more revenues, not than the total would have been but much more revenues to offset the tax cuts and increase prosperity. >> so let's go back to 2012 when kansas and louisiana both slashed state income taxes for businesses and people, individuals, both of them have had shortfalls in the hundreds of millions of dollars every year but state aren't allowed to run deficits, so what do you do when a state has a deficit? they cut schools and services. you said two, three, four years. that was four years ago. >> that's true. the cut there in kansas was very small. but let me see in tennessee where i amng o these numbers, we're the lowest taxed state in the nation, we had the best improvement in 4th grade,

8th grade math and reading and science and the gaps between black and while have dropped and we have these not the sun and the beaches and palm trees -- >> i don't think we have all that many people running to -- >> we're the eighth largest in migration state of the nation. so you're committed to this you thud we should keep going down this road and the end result is we should have more economic growth. >> we don't get more economic growth, ali, it's all over. >> it's really not all over for you. you've been at this for five decades or something. >> they had no growth and i advised them.

>> i'm not the claim adviser but i did he sim. >> you got arthur laugher was ar to donald trump. written a lot of books and he is famous. there he is. now you know where everybody likes him. >> president trump wants to build a border wll to stop undocumented immigrants from entering the country. is that wall actually going to be effective. we are going to hear from undocumented immigrants who don't come through that border, they come from ash audio. >> i'm asian american, korean, when i tell people i'm undocumented they are confused. >> most people associate undocumented immigration -- >> with the border. kevin kevin kevin kevin kevin

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president trump's prepared budgetot only includes drastic cuts to several government agencies. it also calls for $4 billion over the next two years to be spent on a wall along the u.s./mexico border, a wall the president insist will be paid for by mexico. even if it's built, if mexico pays for it and even if it secures the southern border it will not stop, listen to this, the largest group of undocumented immigrants into the united states. jake soboroff met some of knows

immigrants. >> reporter: the number of people who actually came to this country legally and overstayed their visas now outnumbers mexican border crossers. in fact it has for the last ten years, since 2007, who those people are might surprise you. look at this. president trump wants to build a wall with mexico to keep out undocumented immigrants. but the reality is in recent years people are coming from a different continent and on a different mode of transportation entirely. >> i'm asian american. when i tell people i'm undocumented the first thing they do is nothing, they are confused. >> most people associate the issue of undocumented immigration. >> with border. >> with the border, latinos, mexicans. >> we came with a visa and overstayed it. that's what we did. >> reporter: in 2007, america's undocumented population stands at just over 11 million today.

the number of undocumented people from mexico has dropped by more than a million while the number of undocumented asians has riz tony around 14% of the overall total. >> i still can't believe it sometimes. >> that you go the harvard? >> yeah. >> i can't believe i'm actually visiting harvard. >> most people think the reason they are not getting into harvard, they are like me, their grades sucked. you thought you were going to get in is because you are domented. found out you were undocumented in high school. >> yeah. >> what happened. >> i was in the internship thing, in the middle of the program the director asks me to come to her office. she sits me down can in a chair and tells me we don't let illegal aliens participate in our program. >> what -- did a chill go through you when she said that to you? >> yeah. so i -- i think immediately when i came out of the office i cried. >> so you found out you are undocumented. and then you applied to harvard, what, against -- in your mind all odds, you end up here.

>> yes. >> he is protected from deportation by daca, the obama administration policy. most undocumented asians like most undocumented people came to the united states as adult and don't have that protection like this woman who is living in los angeles. >> we text and message our family in. >> in the philippines. >> that's where i'm from. >> will you be visited. >> right now i can't. i won't be able to get back here into america because i'm undocumented. >> asian americans are poised to be the largest foreign born group in the united states by 2025. this is your brother. >> yes. >> and that's your fiancee. so you are undocumented, too. and how about you. >> same, same. >> also undocumented.

>> yeah. >> did everybody come here on an airplane? >> yeah. yeah. >> you all flew here? >> yeah. >> tourist visa. >> tourist visa, everybody. and everybody just decided we're going to overstay our visa, compromise our visa and now we are going to be to be in the united states illegally. >> we are here to stay because we exerted our life effort, our body and soul, our mind, yes, just to work and to contribute a lot. >> will a wall stop people coming from the philippines? >> no. >> no. >> no. >> because we came here legally. with a visa. tourist visa. we cannot swim from the philippines up to here. >> you can swim there the philippines here. >> it's too far. >> doesn't make a difference. >> that would be a far swim. it is a far swim indeed, ali, while president trump requested all this money for the border wall today, secretary kelly the

man in charge of that proposed project actually said during his confirmation hearing that isn't an efficient way to track people who overstayed their visas, now the biggest group of undocumented immigrants to the country. this is what he said we should send someone to their house and ask them why they haven't departed. >> america is the only country that doesn't track people when they leave so you have no way of knowing whether they left. great reporting. it's harvard's loss that they didn't get you jacob. >> i don't know about that. >> doing great reporting for us in los angeles. i'm out of time. that's it for me for this hour of msnbc. find me on social media. right now on msnbc, my friend chris jansing hosts "andrea mitchell reports" from d.c. hi chris. >> hi there. right now on "andrea mitchell reports," strike two, donald trump's travel ban is blocked ag this time by two federal judges hours before it was to go into efect.

e president calling the ban from the bench unprecedented judicial overreach. >> we're going to take our case as far as it needs to go, including all the way up to the supreme court. this is a watered down version. and let me tell you something. i think we you had at to go back to the first one and go all the way. [ audio problems ] border wall but cut deep into popular programs here at home and around the world. >> a lot of those programs that we target they sound great, they always do. they don't work. a lot of them don't work. i can't justify them to the folks paying their taxes. >> the level of spending the state department has been taking in particularly this past year is simply not sustainable. >> and burr den of proof, 12 days after his claim that then president obama tapped the phones at trump tower president trump hints more will be revealed soon.