good to be with you. i'm katy tur. historic after a mammoth weekend in the senate, joe biden's inflation reduction act is now on the verge of passing. once it goes through the house, president biden is set to be one of the most legislatively successful presidents of the modern era. for the 26th time since taking office, kamala harris, the vice president, used her tie-breaking vote in the senate to advance the legislation. the bill promises to inject more than $370 million into climate and energy programs. it will also allow medicare to negotiate drug prices for the first time and raise revenue to a 15% minimum tax on large corporations. democrats are heading into the august recess on a high after a year of failed negotiations and party in fighting, we saw a major shift this summer. the chips plus act, the pact

act, sweden and finland's asession to nato, gun control and reconciliation were all passed over the last two months, many with big bipartisan majorities. if it gets to his desks, the president will have pushed through a $3.7 trillion agenda. how is this all going to play in the mid terms? that is the big question. there are a lot of variables, including record inflation and abortion and that stubborn political precedent that the party in the white house almost always loses in the mid terms. joining me is senior white house correspondent kelly o'donnell, jake sherman, co-founder of punch bowl news, susan page,

washington bureau chief and peter baker, author of "the divider." jake, i want to start with you because you're on capitol hill. there was a vote-a-rama over the weekend. it's in the house now. what are the big headlines? >> the big headlines is that they got it through after 18 months of tortured negotiations over this package and the will he or won't he of joe manchin and will she or won't she of kyrsten sinema, they found a package they can support. quite the chain of legislative victories for the democratic senate and president biden, who is the beneficiary of these wins, even though he's not the designer of many of these victories. i would say a few things, important to note that they are going into this august recess with the wind at their back at

least legislatively. the president's approval ratings are still in the 30s and that's not helpful for any democratic candidate that's running for reelection in 2022. we'll have to see what the inflation numbers are on wednesday. they come out on wednesday, we'll get a better sense of the economy. terrific jobs numbers last week but now this goes over to the house, this piece of legislation that should pass on friday. it's undeniable that this is massive legislative victory for biden and for the democratic senate. the question is how much does that matter, how quickly will people feel the results of this legislation and even chuck schumer suggested some of these things will take a while. some you'll be able to feel immediately, some will take a little while for voters to feel. >> a lot of this, peter baker, was dead in the water. a lot of the parts of this bill were dead in the water only a few weeks ago. talk to me about the negotiations, the wrangling within the democratic party to

get this done. >> yeah, i think as jake alluded to, one of the keys to success here for the president was not being involved or at least not being as hands on as he has been. in other words, let the senators figure this out among themselves, even though he was a senator himself, his natural instinct is to get in the room and mix things up themselves. he allowed them to figure out where their sweet spot was together and had his staff in touch. it was a shift in approach from the beginning of his presidency when he was a little bit more directly in the room. that worked for him in this case. sometimes you have to step back in order to move forward. i think that's a lesson he's taken from this. >> so he's taken this lesson, kelly, he's taken a step back. usually in the past joe biden has said it's always best to be in the room, in this case as he is the president of the united states, it was best to not be in the room because of all the politics and the baggage that comes with the white house getting involved, especially within the republican party, even though they didn't sign on

to this bill at all. how does the president see these legislative wins, how does he see the momentum being built? does the white house feel this might be enough to turn those approval ratings around? might it be enough to defy the political gravity that the party in power usually loses in the mid terms? >> they're going to live in the moment and take this as a win. certainly when the president is able to look at this and say politically it is a win, it is good for his own presidency, it's good for democrats, it shows that ideas that he has put out on his agenda, they may not be as fulsome as they were at the beginning of his term but a number of the ideas have now moved to this point where by the end of the week they could be ready for his signature. that is significant. at the same time, they are very aware of some of the sort of structural problems they're dealing with, the approval

rating, inflation, the historic sort of heavy weight that they have to deal with that a party that controls the white house and both branches of congress typically has a rough go in the first mid terms. but they're taking the win and trying to build it on to if you add it to good jobs numbers and the intelligence mission that killed the leader of al qaeda, if you add it to other legislation like the chips bill, which would bring manufacturing back to the united states, that was bipartisan. if you take a number of these things and tie them together, it probably one of the best stretches in the term of joe biden that we have seen, where there have been a number of things that have been positive. republicans can chip away at each of these, can talk about the things they will run against and they will do that, they will still talk about inflation, they'll talk about higher taxes in this inflation reduction act, they'll talk about the irs

getting some additional resources and agencies they say many are not fond of and it not something that will be appealing to voters but the biden white house will take this and say it is some they campaigned on that can come to fruition. >> allowing medicare to negotiate prices, that's a big one. the democrats have been running on that for years. and this $35 cap on insulin for many medicare users, republicans stopped that insulin cap from being extended to everybody with insurance. why is it just medicare users? who does that benefit? >> looking at this bill, it's the biggest climate change bill in our history, it's the biggest health care bill since the affordable care act passed. and these are provisions

democrats have been trying to do for a generation. that insulin vote that they had yesterday where where they refused to give the insulin cap for insurers from sea to signing sea. that is an issue that strikes home with an awful lot of americans who are dealing with the cost of drugs. there was some thought -- democrats had some thought that republicans might go ahead and let that go through. a couple republicans sided with them but not enough to get over that 60 vote minimum that they needed for that particular provision. >> what is the benefit for republicans not to get behind this? if those ads are going to go out across the country saying the republicans are against you were getting affordable insulin, how does that help them? >> their argument is this is too big a government, the government is too much in our lives, we

want pharmaceuticals to have the money to investigate for new drugs. that will be their argument. but i got to say that will be cold comfort for people who are not seniors but need insulin and they have seen these insulin costs really rise. it was a very risky vote that republicans took. >> a lot especially in the upper midwest going to canada to get affordable insulin. another thing i was surprised to read about last night as i was coming back from vacation and getting updated on everything was the carried interest loophole. i thought that was a part of the bill. suddenly it's not a part of the bill. why would that not remain? donald trump campaigned on closing that loophole. he didn't do it with his tax bill. democrats have been talking about it for years. how in the world did that not remain in this bill? >> well, two words, kyrsten sinema. >> why? >> she was against getting rid of that loophole. that's a good question. she has stood up for lower taxes

on private equity and hedge fund managers and people involved in the finance industry consistently over the last 18 months. remember, that carried interest loophole is a provision by which basically fund managers pay tax at a 20% rate instead of the top rate, which is 36% and that was in the bill. and then it wasn't. it fell out of the bill. and then there was another tax, a little bit complicated on private equity firms and its subsidiaries. that got knocked out yesterday here in the capitol after a significant enough to bring all of us reporters to the capitol yesterday to report on it, a significant amount of legislative maneuvering. she is averse to any tax increases on private equity and hedge funds. she has been against that consistently over the last couple months. she's reaped benefits from a

campaign perspective, katie. it's been something she's been quite consistent on. it's something that i could tell you senior democrats and lawmakers involved in this deal yesterday were flabbergasted at her stance. >> it's making a lot of money for a lot of people who are already very, very rich. so it is something that i'm sure people are going to want a little bit more answers to going forward. jake sherman, thank you very much. kelly o'donnell, thank you for fighting against that generator or power washer and susan page, thank you as well. peter baker, you sticking around because you've got a new book coming around called "the divider." you write that donald trump complained to his chief of staff john kelly that he wanted u.s. generals to be more like hitler's generals. the president's loud complaint to john kelly one day was typical. you f'ing generals, why can't you be like the german generals.

which generals, californiay kelly asked. the german generals in world war ii, you do know that they tried to kill hitler three times and almost pulled it off? and no, no, no, they were totally loyal to him, the president replied. in his version, the generals of the third reich, they had been totally loyal to hitler. tell me about this reaction of john kelly. >> a retired four star marine general. he heard that president say many things about the military that i think stunned him and dismayed him to say the least. he talked about the parade he wanted down the streets of washington, d.c. but he didn't want any wounded soldier, people without limbs in the parade because it would look bad and general kelly said to him something to the effect of there

no greater heros except for the ones who are actually buried in arlington, which didn't persuade the president. the general mentioned his own son was buried in arlington having been killed in afghanistan as a patriot. these small episodes reflect a larger tension between a commander and a chief and the generals who, you know, worked for him but didn't see things the same way. in their view president trump saw the military as a political instrument, not as an apolitical force in society. they resisted the idea of the military being drawn in to what they saw as the president's machinations. >> let's talk about general mark milley and the conversations he had with the president around lafayette square and clearing it out of the protesters, as the president wanted to do, those black lives matter protesters. "when milley and the others

resisted and said the national guard would be sufficient, trump you shouted "you're all losers! you are all losers! can't you f 'ing just shoot them, shoot them in the legs or something"? >> and in fact this led to that now famous march across lafayette square where general milley and defense secretary esper expressed public regret to have allowed themselves to be used in that way. we now know that general milley went back and wrote out a letter of resignation. we previously had known he thought about that but the letter is reproduced in our article and in our book this fall. he said that the commander in chief -- president trump did not believe in his view in the

american values, that american soldiers had fought and died for in world war ii and others wars. he said you're ruining the international order, you're doing great damage to the country. he didn't send the letter. he ended up putting it in his drawer, instead decided he was going to stay in his job and fight. he said i'm going to fight from the inside. not fight the order of a legitimate commander in chief but the political politicization of the military. >> we've heard from a lot of former officials in donald trump's white house who have expressed deep reservations or fears about the president and the way that he behaved, especially in the final hours of his presidency and yet a lot of them say they would vote for him again. can you square that circle? >> reporter: yeah, it's a really curious phenomenon. you do have people who like, for instance, bill barr, vigorously objected to the election fraud claims, said that they were b.s., he said that to the

president, he said that publicly in an interview in december 2020. he doesn't think president trump should be the nominee again but when asked in an interview if he would vote for him if he was the nominee, he said he would support the nominee of his party. this is where the republican party is really struggling with what it wants to be. is it donald trump's party or is it a party of republican ideas and values that had once, you know, been the important determinants of a political cause? and i think that right now they've shown that they're the party of donald trump, and a lot of people are trying to figure out what that means for the future of the republicans. >> the book is called "the divider," you wrote it with your wife, susan glasser of the new yorkers and your marriage apparently still surviving. writing a book together must be a difficult task. >> we're still speaking, yes. >> and president biden and first lady jill biden are in kentucky,

touring the catastrophic flood damage. you just saw the president shaking hands with people in kentucky, giving them condolences. what are you hearing from the folks who have gathered? >> i think it's safe to say the president will be playing the role of consoler in chief once again. he spoke about how this is his second time visiting kentucky. the last visit was back in december, you might remember in mayfield, kentucky. i was here covering that natural disaster as well, but that was a tornado that wiped out pretty much the entire downtown of mayfield and here we are again talking about an historic flooding that caused so much devastation throughout eastern kentucky, roughly 12 counties impacted by the floodwaters and

obviously the water has receded but the clean-up effort really is just getting started. many people saying it will likely take weeks if not months to recover from all of this and as we stand by for the president to deliver his remarks, he did say earlier when he was meeting with fema officials that he applauded the efforts on the ground from the first responders, the volunteers, who have really stepped up in the past couple of days to mobilize quickly, to help strangers really to get out of their homes. you might have seen dramatic pictures after the storms came through the area. but there are still a lot of lingering challenges in this community. water is still a big issue. a lot of the infrastructure has been destroyed with the floodwaters. we're told tens of thousands are told to boil their water before consuming them and thousands of still without water at this time. that is just one of many challenges in this community.

but then as we look ahead in the next couple of days, we are tracking more severe weather in this area. officials say even one to two inches of rain could really complicate the recovery efforts because a lot of these bridges are still blocked because of the massive amount of debris that got wedged in to some of these areas. so just a little bit more water could be pretty devastating. katy? >> climate scientists and meteorologists will argue what we're seeing here, the extreme weather and devastation is the effect of climate change happening in realtime. i know you were listening in but there are big climate provisions. we will talk about that in the next hour with a member of the president's climate change staff. we're going to get to that in a second. kathy, thank you so much for giving us a rundown of what's happening there. we're going to go to president biden as soon as he begins

speaking. he's still touring damage and speaking to folks there in kentucky. still ahead, there are not enough teachers. what is behind the nationwide shortage and what schools are doing to try to get around it. and state legislators radically out of sync with their constituents. it's pretty shocking reporting out of ohio of how a moderate state is producing some. most extreme laws in the country and the one big political move that is insulating radical lawmakers from being voted out. but first, michigan's attorney general is asking for a special prosecutor to investigate her trump-backed republican opponent. what did he allegedly do to voting machines?

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michigan's attorney general is requesting a special prosecutor to investigate her opponent in the upcoming statewide election, citing evidence he was involved in a

conspiracy to improperly obtain access to voting machines used in the 2020 election. a month's long investigation unexpectedly left michigan state police to matthew deperno, a lawyer, running to attorney general. former president trump has taken a keen interest in him. here is what he said earlier this year at a rally. >> somebody said, well, he's very tough. that's what you need from somebody puts his life and reputation on the line, matt deperno. after the 2020 election, matt led the explosive investigation into what happened in antrim county where among other irregularities, votes were switched by mistake and had to be corrected. >> joining me is politico

reporter heidi pryzbyla. welcome back. what exactly is he being accused of doing? >> the documents we obtained allege he was part of a campaign to tamper with voting machines. that's why when the current a.g. who unexpectedly ran into this decided to refer this to a special investigator. this man was at the epicenter of what happened in michigan. he filed that lawsuit in antrim county and it went all across the country because those bogus allegations were used in lawsuit after lawsuit in critical battleground states. those allegations even showed up in a draft executive order to seize voting machines that never came to fruition but the evidence that they have

according to the documents that i've reviewed appearing to be rather substantial. it shows that he was present in an oakland county hotel room during which the machines were taken and tampered with and that he was a primary person involved in this. there's also evidence that he himself provided in a subpoena he issued in his own case regarding antrim county in which he included the modem i.d. numbers of some of the machines that had been illegally confiscated. >> could this mean something for 2022 or 2024? are these machines out of commission now? >> reporter: good question. all of these machines are out of commission. it appears the attorney general waited until just after michigan's primary to put the information out there so there would be no concerns about the

integrity of this current election, but the concern, katy, really should be a nationwide one, i'm told by election security experts. this is a prime example of what they've been warning about in terms of insider threat to the system. what you see is former president trump going surgically into a number of battleground states that were contested in 2020 and elevating state-level official who is could be in a position to help him in 2024. he very much wants mr. deperno to be in that position. he's been hosting a fund-raiser for him at mar maralago. >> michigan attorney general is requesting a special prosecutor. what will that mean, paul? >> that means it will be an independent investigation. the chain of custody of voting

machines is crucial to security. state regulators are required to. it's a five-year felony to seek or provide unauthorized access to voting equipment. it's the states, not the federal government that have primary responsibility for the integrity of elections. and now we have some of trump loyalists claim they were trying to uncover election fraud may be the ones who were actually committing it. >> this is pretty sensitive because the election is coming up. this is now between two people who are running for the same position, dana nestle, the current michigan a.g. and deperno, running to be a.g. what is the timeline of getting this adjudicated? the election is only three months away. paul? >> federal prosecutors, local

state investigators do these kinds of investigations. they usually don't say how long it's going to take but you're totally correct, katy. it's really troubling for now and for 2024 that this random group of republican activists were able to seize michigan vote tabulators. they were able to seize the machines, local county clerks just handed them over and that's very troubling and concerning for 2024. >> paul butler, heidi pryzbyla. thank you guys. >> and an israeli-palestinian cease-fire, will it hold? >> and how moderate voters have been transformed into a center of extremist legislation. extren

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it's better left to the people. the reporter focuses on june where an abortion ban was so extreme, a 10-year-old rape victim was forced to travel to indiana to terminate her pregnancy. jane maher, thank you very much for being here. as i read all of your pieces, i read this one with a sense of foreboding and horror. talk to me about what's going on in ohio. this abortion law, it's not in step with what ohioans want.

>> thanks so much for having me, katy. what's so interesting about ohio is it's long been seen as a swing state, a kind of a bellwether of american politics and what's going on there is extremists have taken over the legislature. when the supreme court says leave it to the people and give it back to the state legislatures, it's really gas lighting because they know the state legislatures in states like ohio have been gerrymandered by the majority -- by the republican majority there so that they really no longer are democratic, they don't reflect the view of the state. the state is about 64% to 56% democrat, republican to democrat. so close. but the legislature is legislating to the right of south carolina. >> which is much more extreme than even where most of the republicans are in ohio. when you're talking about

abortion, the ban they instituted is wildly out of step with the voters. how did this gerrymandering come to be in ohio and why can't voters vote them out if they're so out of step with the electorate? >> you would think they could. but what happened is these districts have been drawn starting right after 2010 and we're now seeing a decade of this. what the districts are doing is making it impossible for republicans to lose. they're drawn in such a way that democrats can't beat the republicans. and because of that, the only incentive that republicans have is to go further and further right in case of a primary challenge. that's the only thing they're really worried about at this point. >> but ohioans voted to change their constitution to outlaw this sort of gerrymandering.

>> what's happening in ohio, the general public is relatively moderate and it tried to fix this. they did all the things you do to fix something like this, which is they amended the state constitution to have fairer districts but they were overridden by a couple of trump judges on the federal court that have made it impossible to fix the situation right now. so they're moving into a mid-term election with districts that their own courts, the state supreme court, have said are unconstitutional because they're so unfair and they're pushing extremism. you're getting crazy extremist bills out of a place like ohio, and it's not the only state like that. that's what's also important. >> if i understand correctly, ohioans changed their constitution a couple times, made it illegal. there were a number of cases that the supreme court in ohio said, hey, listen, these are not constitutional the way you've drawn these maps, said it a bunch of times to the

republicans, republicans kept redrawing the maps in not legal, constitutional ways, pushed it back to the point where it got so close to an election that a federal court said this is too close to an election so they basically got this one away for free and then there was a republican who tweeted about this, the majority leader of the house, who jered his democratic opponents saying too bad, so sad, we win again. it's a tough night for all you libs, pour why is a glass of warm milk, the game is over and you lost. they are laughing about it, according to david peppers, the former democratic lawmaker that you spoke with. >> absolutely. it's a breakdown of sort of the rule of law, it's the breakdown of sort of democratic norms. if you saw it in another country, you would say, oh my god, democracy is coming unglued at the seams in your state.

but it's a slow boil that's gotten us to this point. and we're seeing the consequences now with such extreme legislation that a 10-year-old girl would be denied an abortion after she's been raped. and, you know, so it's -- it's just kind of a shocking situation really. >> this goes for guns, it goes for what's being taught in schools. there's an anecdote of lawmakers talking both sides of the holocaust needs to be taught. you can get to that in the article. the article focusses on ohio but this is not only happening in ohio. it's happening in state legislatures across the country, state legislators that are wild live out of step with most americans. that's where republicans have focused for years. what have democrats done? >> they, too, have been

gerrymandered in some states. for example, in new york state the democrats tried to gerrymander the districts. but when the courts ruled they can't get away with it, they abided by the courts. what's different in ohio is they basically thumb their nose at the courts. they sort of are getting away with murder there. since this story posted, i've gotten messages from so many people in so many states saying, oh my god, it's happening here, too. because it was a nationwide effort by the republican party in 2010 and a decade later or more, a dozen years later, we're really seeing the consequences, which is legislation coming out of these states far more extreme than american voters. it looks like the world is turning bright red. it's actually not. it's just the legislatures. >> and it's a lesson to focus on not just these national elections, these federal elections but your state elections as well. most people can't say who their state lawmakers are, and it's

something that you should be paying attention to because it directly affects everybody. jane, thank you again for all of your reporting. "state legislatures are torching democracy," i recommend everybody read it, it's important. >> president biden, we'll go to him when he begins. hiring people with no teaching experience, what school districts are resorting to to get around a teacher shortage. >> and more than a year inside the cease-fire between israel and a militant group in gaza. i. i also feel the same way about my dog. we got her the farmer's dog sent in the mail. it was all fresh. i want my dog to have a healthy and long life. the farmer's dog helps that out. see the benefits of fresh food at betterforthem.com

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fighting in over a year while israel's iron dome intercepted rockets fired from gaza, israeli rockets fired back, killed at least 44 palestinians and injured hundreds more. joining me is kelly cobiella. who was involved in this and will the cease-fire hold? >> reporter: so this was really a conflict between palestinian islamic jihad and israel, not the ruling hamas party and israel. that's a really important distinction. israel says that the islamic jihad group was planning an imminent attack. that is why they targeted a senior commander of that group in gaza. the first strikes were on friday, more strikes on saturday. two high-level people from islamic jihad killed according to the israelis. as you mentioned, katy, a lot of people caught in the crossfire, some 300 people injured,

according to gaza health officials. as happens, militants fired back and sirens sounding throughout the weekend but no deaths in israel, the majority of the casualties in gaza. how did we get to a cease-fire? hamas again stayed on the sidelines on this and the people of gaza were really in a difficult, difficult situation. because of this fire and counterfire, the crossings and crucial crossings into gaza were closed by israel. that meant no fuel was getting in to the one power plant that serves the 2.3 million people in the gaza strip and there were warnings from the hospitals that they were going to run out of power in two days if something didn't change.

so egypt got involved, the egyptians and the khataris have been involved since the 11-day conflict last may and stepped in and helped to negotiate this cease-fire. katy, this morning those border crossings were reopened, some humanitarian aid and crucially fuel is getting back in. >> while this was going on over the weekend, there was some concern this could break out into a much larger conflict, that they were really on verge of something potentially very bad. there has been a negotiated cease-fire, as you said with the egyptians and khataris and egyptians getting involved. is there confidence this is going to hold? >> there is some confidence this is going to hold, again, because hamas didn't step in, they stayed on the sidelines are this. over the past several months israel has granted some 12,000

work permits to people in gaza to cross over and work in israel, and that is crucial to the livelihoods and the economy of gazans and they promised inc hamas to stay out of it, and that looks like what we saw. >> conditions are terrible in gaza. kelly, thank you very much. coming up next, the head of the school superintendent's association says he's never seen it this bad. what happened to make teachers across the country to quit in droves and what schools are doing to try and make up the difference.

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be doing this. i said, you're kidding me. seriously. and he pointed out that here's the deal. it is true that the people here in this community and the folks i met in the tornado, they're not just kentuckians, they're americans. they're americans. this happened in america. american problem. and we're all americans. everybody has an obligation to help. we have the capacity to do this. it's not like it's beyond our control. the weather may be beyond our control for now, but it's not beyond our control. but i promise you, we're staying, the federal government, along with the state, county and city, we're staying until everybody is back to where they were. not a joke. one other thing, we've never done this before, but because of a number of things we got done on a bipartisan bases, like

$1,200,000,000 infrastructure project, taking care of everything from health care to god knows what else. but we're going to see -- for example, if they have to put a new water line in, in the community, there's no reason they can't at the same time be digging a line that puts in a whole new modern line for internet connections. why? why can't we do that? so it's going to be different. we're going to come back better than before. i really mean it. that's the objective i have. not come back to what we were before, come back to better than we were before. and i mean this, and you know i do, and i'm confident with your leadership we can do it. along with the -- we call them county executives from where i'm from, but the judge here, i'm find thing is something that we can all do. we can get this done. because we're the only country in the world that has come out

of every major disaster stronger than when we went into it. we got clobbered going in but came out stronger. that's the objective here. not just to get back to where we were, but better than where we were. and we have the wherewithal to do it with the bipartisan legislation. so i don't want any kentuckian telling me you don't have to do this for me. oh, yeah, we do. you're an american citizen. we never give up, we never stop, bow, or bend. we just go forward. the bad news for you is, i'm coming back, because i want to see it. thank you very much. that's it. >> you're the man. >> all right, now, we're all going to run laps. all kidding aside, thank you, thank you, thank you. these people deserve enormous amount of credit for their courage and stamina.

thanks. [ applause ] >> president biden in lost creek, kentucky, speaking after surveying that flood damage. you can see it right there. it looks really bad. he's seeing that we as americans can do something about this together. that no, we can't change the weather right now, but this is a long-term problem and the country has to start getting behind efforts to fight climate change. that's what democrats are trying to do and are about to do with this new big "inflation reduction package" that is expected to be voted on and passed later this week, and then go to joe biden's desk where he will sign it, some climate change fighting effects on that. we'll talk the next hour to the white house climate adviser to talk about those new investments made, and for those that are

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