captioning sponsored by macneil/lehrer productions >> woodruff: u.s., canadian and european airlines suspend all flights to tel aviv after rockets fired by hamas land near the israeli airport. good evening, i'm judy woodruff. >> ifill: and i'm gwen ifill. also ahead this tuesday, european union leaders meeting in brussels impose additional sanctions on russia, in the wake of the shoot-down of malaysia air flight 17. >> woodruff: plus, how charter and traditional public schools in houston are partnering up to share space, resources and improve education. >> reporter: kipp and landrum hire their own teachers for core courses like math and reading. it's here in the elective courses, band, orchestra, choir art, theater and phys ed, where

the charter and traditional schools come together. >> woodruff: those are just some of the stories we're covering on tonight's pbs newshour. >> major funding for the pbs newshour has been provided by: >> at bae systems, our pride and dedication show in everything we do; from electronics systems to intelligence analysis and cyber- operations; from combat vehicles and weapons to the maintenance and modernization of ships, aircraft, and critical infrastructure. knowing our work makes a difference inspires us everyday. that's bae systems. that's inspired work. >> i've been around long enough to recognize the people who are out there owning it. the ones getting involved, staying engaged. they are not afraid to question the path they're on. because the one question they

never want to ask is, "how did i end up here?" i started schwab with those people. people who want to take ownership of their investments, like they do in every other aspect of their lives. >> and the william and flora hewlett foundation, helping people build immeasurably better lives. >> and with the ongoing support of these institutions and... >> this program was made possible by the corporation for public broadcasting. and by contributions to your pbs station from viewers like you. thank you. >> ifill: it's been five days since a malaysian airlines plane was shot down over eastern ukraine, and today, 200 of the 298 victims reached the first

stop on the way home. neil connery of independent television news filed this report from ukraine. >> reporter: after a 17-hour journey, the train carrying the bodies of flight mh-17's victims finally arrived in kharkiv. a former tank factory in the soviet era turned into a makeshift morgue, now offering some sort of sanctuary before the final journey home. there was at last here dignity for the dead. one malaysian official on board the train told me great care is being taken here. >> they were taken from train to the building because they're going to make sure that it was kept properly so that when >> reporter: most of the victims from flight mh-17 are now finally under the protection of the ukrainian and dutch authorities in this site behind

me. their families have had to wait five long and agonizing days for this to happen, but they are now finally about to head home. back at the crash site, international observers say they fear the aircraft's wreckage may have been tampered with. >> the other day when we were at the cockpit section, when we were leaving, we did see workers using a diesel-powered saw to get a closer look at the fuselage. we can't draw any conclusions, that's not our role, but it's an observation that we made. >> reporter: the black box flight recorders were finally handed over to the malaysian authorities by the pro-russian militia in donetsk in the early hours. they're now being sent to air accident investigators in britain to be downloaded, for the dutch to then analyze them. a small memorial service was held next to the wreckage. the 298 lives extinguished at 33,000 feet last thursday were remembered by villagers. the bodies of those victims will leave this makeshift morgue

behind these gates and return to the netherlands tomorrow, each one laid in a coffin. >> ifill: later, a european monitor said his team saw no sign of any attempt to recover the human remains still at the crash site. we'll turn to the day's diplomatic developments, later in the program. >> woodruff: and in other news this day, president obama's nominee to head the department of veterans affairs promised today he'll work to sort out a scandal over health care delays. former procter and gamble c.e.o. robert mcdonald appeared at a senate confirmation hearing. he said the challenges include long treatment delays, falsified appointment records and the v.a.'s very culture. >> the department's problems with access, transparency, and accountability, and integrity are all well-documented. there's a lot of work to do to transform the department. it won't be easy, but it is essential and it can be achieved.

the seriousness of this moment demands action. >> woodruff: if mcdonald is confirmed, he'd replace retired general eric shinseki, who resigned in may under mounting pressure. meanwhile, senate majority harry reid said today there's been some progress on congressional funding to address the v.a.'s problems. >> ifill: researchers in the u.s. and britain say they've taken a big step toward developing future drug treatments for schizophrenia. they reported today the largest- ever genetic study of the disease has identified 108 d.n.a. markers. schizophrenia makes it difficult to distinguish between what is real and what is not. it affects one of every 100 people and, in the u.s. alone, costs about $60 billion a year to treat. >> woodruff: the president of nigeria, goodluck jonathan, held his first meeting today with parents of girls abducted by boko haram militants in april. the meeting took place at the presidential villa in the capital, abuja.

later, in a statement, jonathan said his goal is to free the 219 girls still captive, and rout boko haram from nigeria. but news reports say the insurgents overran more territory in the northeastern part of the country in the past few days, an army base and surrounding villages. >> ifill: election officials in indonesia have declared a winner in the bitterly disputed presidential race. jakarta governor joko widodo won 53% of the vote. he celebrated with supporters today, and appealed for unity in the world's third largest democracy. earlier, though, the other candidate, former general prabowo subianto, withdrew from the contest and charged it was all a sham. >> ( translated ): there has been a massive fraud, structured and systematic in the 2014 elections. in consideration of this, we, the presidential candidate prabowo subianto and running mate hatta rajasa, will use our constitutional rights to reject

the 2014 election. >> ifill: despite that claim, the defeated candidate opted against challenging the results in court. >> woodruff: dozens of police were rounded up in turkey today, accused of spying on prime minister recep tayyip erdogan and others. they were charged with using a corruption probe as a cover. in another development, erdogan said he no longer speaks directly with president obama. he told a t.v. interviewer it's because the u.s. failed to take stronger action in syria. >> ifill: in south korea, police announced they've found the country's most wanted fugitive, the man whose family owned the ferry that sank in april. the decomposed body of yoo byung-eun turned up in a farm field, more than a month ago, but it took lab tests to confirm the identity. yoo disappeared after the ferry disaster that killed more than 300 people. investigators do not suspect foul play in his death. >> woodruff: back in this country, detroit's plans to shed debt and emerge from bankruptcy have won a big boost from active

and retired city employees. an overwhelming majority of them voted to accept pension cuts, as part of the effort to cut the city's long-term debt of $18 billion. a federal bankruptcy judge holds a hearing next month on approving the city's plan. >> ifill: on wall street today, the dow jones industrial average gained more than 61 points to close at 17,113. the nasdaq rose 31 points to close at 4,456. and the s-and-p 500 added nearly ten, to finish at 1,983. still to come on the newshour: several airlines cut off flights to tel-aviv; europe brings additional sanctions against russia; bridging the chasm between charter and traditional public schools; two federal courts issue conflicting rulings on the health care law; and, ten years after the 9-11

commission report was published, how safe are we >> woodruff: the battle between hamas and israel raged on, and prompted some commercial airlines to cancel flights to tel aviv. >> woodruff: by night, israeli air strikes and artillery fire kept up a heavy barrage in gaza city. by day, palestinians again counted casualties, now more than 600 dead, more than 500 homes destroyed, and raged against their attackers. >> ( translated ): there is no excuse. they killed innocent children, women and elders who were using this building as shelter. they thought this place was safe. >> woodruff: hamas struck back with new rocket fire, hitting a house in tel aviv's yehud suburb and lightly wounding one israeli. it was the closest strike yet to the ben gurion international airport, and several u.s.,

european and canadian airlines temporarily halted service to israel. the israeli transportation ministry criticized the move, saying it would "hand terror a prize." on the ground, military officials acknowledged the deaths of two more soldiers. they also announced a 21-year old sergeant, oron shaul, is missing and presumed dead after a battle sunday. hamas had claimed it captured an israeli soldier over the weekend. but prime minister benjamin netanyahu vowed to keep up the assault, after meeting with u.n. secretary general ban ki-moon in tel aviv. >> what grievance can we solve for hamas? their grievance is that we exist. they don't even want a two state solution. they don't want any state solution. in the face of such extremism, in the face of such violence, in the face of such terror, israel has no option but to defend itself. this is what we are doing. >> woodruff: secretary-general

ban, who'll meet with the palestinian prime minister in the west bank tomorrow, urgently appealed for the shooting to stop. >> my message to israelis and palestinians is the same: stop fighting. start talking. and take on the root causes of the conflict, so we are not back to the same situation in another six months or a year. >> woodruff: later, in a videoconference with the u.n. security council, ban said it's his hope and belief the fighting will end "in the very near future." meanwhile, in cairo, secretary of state john kerry continued the u.s. push for a cease-fire, meeting with egypt's leaders and the head of the arab league. >> while we still obviously have work to do, it is also clear to me from each of the parties that i have met with that there is a framework available to end the violence, and that framework is

the egyptian initiative that has been put forward. >> woodruff: the egyptian cease- fire proposal is backed by both the u.s. and israel, but has so far been rejected by hamas. the militant group, with support from turkey and qatar, has demanded an end to the blockade that has crippled gaza's economy. >> woodruff: for more on the f.a.a.'s suspension of flights to israel, the broader efforts to broker a cease fire in the conflict there, and the latest on the situation in ukraine, we turn to ben rhodes, deputy national security advisor to the president. i spoke to him a short while ago. ben ben rhodes, thank you for talking with us. we reported the f.a.a. and other safety agencies halted commercial traffic into ben gurion airport in tel aviv. we know the israelis are saying that's not necessary, it hands terror a prize. we know prime minister netanyahu

has called secretary of state kerry to try to reverse the decision. what does the president believe about this? >> well, judy, it's important towns the f.a.a. takes certain precautions out of an abundance of caution. the f.a.a. said the rocket fired by hamas landed roughly a mile from ben gurion airport, triggering f.a.a. to warn u.s. carriers to avoid landing in ben gurion because we don't want to put our civil aviation at risk. they review us every 24 hours, but, again, this was gone in accordance with common tract. if you see that kind of threat in the vicinity of the airport, we have to issue a warning to civilian carriers to avoid the airport. >> woodruff: so the president is not inclined to reverse the decision of the f.a.a.? >f.a.a.? no, we wouldn't want to overrule something the f.a.a. is doing for the protection of americans and those flying american carriers. we can review the situations based ton security situation on

a 24-hour basis but we believe it's necessary, particularly when we see what happened in ukraine, that we are taking great care when it comes to the safety of our air carriers. >> woodruff: when it comes to the fighting in gaza between gaza and israel, we know there are 600 palestinians dead, three-quarters civilians, a quarter chirn, problems with water supplies, 29 israelis dead. when does this situation become intolerable for the president? >> judy, we believe the best course of action is immediate cease fire. we've long said hamas is responsible for the conflict because they precipitated it with rocket fire. israel has a right to defend against rocket fire and tunnel attacks. at the same time, we have been heart broken over the loss of innocent life on the palestinian side, the growing death toll on the israeli side and believe the best outcome is an immediate cease fire to restore the calm and the deals of threat of rocket fire from hamas, the part

of the cease fire would be the rocket fire stopping and addressing the stockpiles of rockets. >> woodruff: secretary kerry is saying the egyptian proposal has been agreed to by the israelis. he is saying hamas is the holdup. so you're saying that's the administration's position? >> yes, absolutely. israel has indicated an openness to the egyptian cease fire proposal. we are working to get hamas in agreement so there can be a restoration of calm and an end to loss of life we've seen. >seen. >> woodruff: do you think we're any closer to seeing it happen? >> secretary kerry has been doing consultations in the region. those who moved forward. again, it will take extra push of influence on hamas to get them to come into complains with the cease fire. we achieved that in 2012 the last time we saw a conflict like this, and that's what secretary kerry will press in the region, talking to egypt and other countries and partners as well. >> woodruff: turning to

ukraine. senior u.s. intelligence officials late today are telling reporters that the passenger jet, the malaysian jet was likely feld by an sa surface-to-air missile fired by the pro-russian separatists but they don't have direct evidence of russian involvement. does this mean the administration can prove that this came from within separatist-controlled territory? >> that's right, judy. what we've assessed and what we've seen in our intelligence is there was an sa-11 system, likely the missing that brought down the plane, and the geographic space from where the misis shot is controlled by the russian-backed separatists. i wouldn't absolve russia of responsibility of this at all, number one because they've created the climate of arming separatists and stoking the conflict in ukraine, and number two because we're looking at hard whether that sa-11 system came from russia and whether there was russian training on the system. we've seen russian provision of

arms including anti-aircraft systems to the separatists so that's something we'll continue to pull the thread on. >> woodruff: can you share the evidence the missile was fired from territory controlled by spratdists? >> we're working to declassify the information we have which includes the assessment of where it was fired from which is a russian separatist-controlled area and our assessment is this is a missile that goes basically directly up and the wreckage of course also fell in russian separatist controlled areas as well. everything points to the fact that this was a mills that was likely fired by those russian-backed separatists. >> woodruff: and do you believe you will be able to prove one way or another if the missile launcher was provided by russia? do you expect to get fragments from the crash site? i ask because there were reports that the crash area has been tampered with. >> that's one of the reasons why we need international investigators to get access to that site because we believe

there would be forensic evidence in that crash site that could further corroborate what we've determined here regarding sa-11 and perhaps where it came from as well. so we are very concerned about reports of tampering. it is the case of investigations, good forensic work can determine what it is that brought down a plane. i would know, judy, for instance, there have been reports of black boxes provided out of the separatist-controlled areas. that is not sufficient. a black box will not tell you exactly what felled the airplane, will just tell you about the airport's flight path. so that's not sufficient. that's why we're working to get that access. we passed a security council resolution yesterday, working to get teams on the ground, and the united states has f.b.i. and ntsb teams on the ground in ukraine to assist with that investigation. >> woodruff: quickly, ben rhodes, about the european partners of the united states. so far they have not been willing to go along with tougher so-called sec torl economic

sanctions as the u.s. has been urging. what does this say about the unwillingness of the europeans to punish russia or punish russia and its policy for what happened here? >> we have been coordinating with the europeans in putting sanctions on russia. we did move into sanctions in different russian sectors. the president has been forking the phones with his european counterparts. what we saw today was the european foreign ministers met and there was actually a positive statement coming out of that meeting indicating they are giving instructions to prepare designations in different sectors and named the energy sectors, arms sector, the financial sector. those are exactly where we have been targeting our sanctions so we're optimistic with this announcement from european foreign ministers today we'll see further actions in the coming days and weeks where the europeans are moving with stronger sanctions on russia. our sanctions have led to

significant things. and this can have cost. >> woodruff: you don't know if they will follow through? >> we cants ants pate they l. they were specific today in saying they've given opinion instructions to prepare designations of sanctions and targets within these sectors. we'll work with them as they prepare those and will coordinate with them as well aspect further announcements from the europeans in the days ahead. >> woodruff: ben rhodes, joining us from the white house, thank you. >> thanks very much. >> ifill: we take a closer look at europe's response. today they imposed new sanctions on individual russian officials, and as we just heard, may consider even tougher measures later this week. gary gibbon of independent television news reports from brussels. >> the u.s. government's been telling european governments they need to wake up. they've been too reluctant to punish russia for its actions in ukraine. too keen to protect their own contracts.

at it's meeting of foreign ministers in the wake of the malaysian air disaster, europe feels it has done just that. they opened with a minute silence. the dutch foreign minister then spoke passionately to e.u. colleagues of his country's loss. how he'd known seven people on the flight. how russian backed separatists might be tampering with the evidence at the crash scene. europe, he said after the meeting, had toughened it's stance. >> i'm happy with the fact that so many of my colleagues expressed solidarity and support for the victims and their loved ones. i'm also happy that we have taken a decision which i think is quite forceful and that we >> president obama said europe needed to wake up.

do you think europe did wake up today? >> i think europe did wake up. >> and the skeptics who says actually all we've got is a list of names potentially by the end of the week that we were going to get next week anyway. >> no, you won't. no, no, no. i mean there things in this paper that has never been in the paper before. >> well i'm quite new to thise whole e.u. process and it has its own peculiarities. but what i heard today was a clear political commitment by the foreign ministers in response to this outrage to act. >> reporter: in brussels they united. strong tendency has been deep-seated divisions in europe on ukraine. >> ifill: so what is the chance europe will form a united front when it comes to sanctions against russian? for that we go to heather conley, director of the europe program at center for strategic international studies. she also served as deputy assistant secretary of state for european affairs during the george w. bush administration. welcome. >> thank you. >> ifill: what is the significance of what you did do today and what they didn't do? >> they are accelerating the preparation or more enhanced lists.

so what we assume they will produce on thursday is an expanded list on top of the +*3 individuals and entities that the e.u. has already sanctioned in a relationship to supporting the annexation of crime. i can't we expect that they will expand that list, perhaps getting a little closer to putin's inner circle, and targeting, sanctioning names specifically for those that have supported the pro-russian-backed separatists. and then concurrently, they're preparing a list that will look at sec torl sanctions. so on energy, the financial sector, defense issues, dual-use technologies. we've heard europe talk about this third phase or tier three sanctions since march but we've never seen a list developed. so i think this would be a preview and a message to president putin that should the europeans decide to take action, they've got quite a bit of very targeted areas which would certainly hurt the russian economy.

>> ifill: you do mention it's been since march and seems baby steps have been taken, threats made not necessarily on any follow thru. what is different this time? >> well, clearly the downing of flight 17 and the unbelievable tragedy and the outrage of how the deceased were treated in ukraine changed the political tenor in europe. you heard david cameron, the british foreign secretary, they are in a new place politically and willing to sacrifice economic pain for more sanctions. the problem is all of europe isn't in that same place. >> ifill: that was our next question to you. what explains the reluctance, up until now, and the reluctance still on the part of some european nations? >> as president bill clinton would say, it is the economy. it is about the fragile nature of the european economy. unemployment in the euro zone is 11%. the french and italian

companies, extremely vulnerable, may even fall into recession, and this means jobs, this means real economic impact for those who are very dependent on, you know, strong european-russian economic ties. it is also about energy and we can't take our eye off an upcoming winter that, should russia decide to cut off oil and gas through ukraine, europe would be devastated. they're very dependent. >> ifill: let's talk about two countries, germany, one-third of their energy comes from russia, and france, who we saw today they're going ahead with shipping or selling helicopter warships to russia in spite of this. why couldn't the president says we won't give you these and obviously was pressured to do that. >> yes, these french military sale of assault ships is a poster child for why europe

seemingly cannot take more decisive steps in light of the escalating crisis in the eastern ukraine. it means 2,500 jobs in france, it's 1.2 billion euros of sale and even today they were reluctant, no, we'll sell the first ship but postpone the second ship, the second is named sevastopol. the french are moving again gwen but not commensurate with the tragedy and escalating crisis in ukraine. germany is slightly different. i think they've acknowledged they're going to have to go forward in additional sanctions. the german prime minister said we've tried our best and are pursuing dialogue but will have to take steps to encourage russia to take more meaningful steps. >> ifill: we heard ben rhodes say the president has been working the phones.

his chief of staff, national security advisors are in germany meeting with angela merkel's people and we have tough talk coming from the brits. is any of that have any persuadable effect? does the u.s. have the leverage to make this happen? >> last week when we announced enhanced sanctions against russia, the white house would have liked to have been the europeans with us and we did it together. we didn't wait for them but what our additional leadership and the sanctions area, it sent a message to europe that we will not wait for them. our sanctions have dancing effect on europe because as we target russian financial entities, russian energy entities, european companies will have a more difficult challenge in working with them if they deal with the u.s. dollar, if they deal with american institutions, there is an effect. but despite enormous amounts of pressure and the reason the u.s.

chief of staff is in russia today is the u.s.-german relationship is not so great. the u.s. scandal and the recent revelation of our intelligence work in germany has damaged the relationship. so there's an uphill climb but the europeans have to take responsibility for their security environment and their neighborhood and we hope they get there by themselves. >> ifill: doesn't matter the sanctions, whether an arms broker, financial action, or is there any appetite to target vladimir putin personally? >> well, some feel it's an all of the above. i think like the u.s. sanctions, we have targeted that inner circle around president putin that is really shaping their support for the pro-russian-backed separatists in eastern ukraine, but to really get the attention of the russian leadership and to really impact the russian economy and to hope to change behavior, that's whate're trying to do, hoping to change russian

behavior, you have to focus on the sectors where they rely on western financial support and western know-how and technology. that's energy, that's certainly in the financial sector. europe has enormous power to change president putin's calculations about the costs of his support for these russian-backed separatists. whether they do that or not is a different situation. >> ifill: heather conley, center of strategic and international studies, thank you very much. >> thanks, gwen. >> woodruff: now, a u.s. education story with a twist. relations between charter schools and traditional public schools have often been hostile and that's become a more intense problem in recent years: about 4% of u.s. students attend about 5,000 charter schools. special correspondent for education john merrow reports on one school district that is swimming against that tide.

>> charters work! charters work! >> reporter: it would be difficult to overstate the battle royal going on between traditional public schools and charter schools. >> save our schools! save our schools! >> reporter: charter schools, which are publicly funded but privately run, were conceived of as testing grounds for traditional schools. >> to me, charter schools are schools that free teachers to do what they know best to do. >> reporter: charter schools are free to hire uncertified teachers, set their own pay scales, and fire teachers they feel aren't measuring up. from the beginning, many in education saw charter schools as a threat, robbing traditional schools of students and scarce education dollars. >> we have seen constant promotion of charter, charter, charter. and what's happening is that, in

many cities today, we are on the verge of losing public education altogether. >> reporter: charter school supporters promised academic success, but the results have been mixed: take math, for example. according to a 2013 study, 29% of charters do better than traditional schools, 31% do worse, and 40% score about the same. some operators have used their charter schools as a license to steal. today the chasm between charter and traditional schools is greater than ever. but here in houston, texas in the spring branch school district something astounding, even revolutionary, is taking place. >> i don't see charters as a threat. i see charter schools, particularly high-performing charter schools, as kind of incubators of innovation. >> reporter: rather than go to battle, superintendent duncan klussmann stuck his neck out and invited two successful charter school networks into two of his

schools, both of them facing declining enrollment. the charter students are selected by a lottery. eric schmidt is the principal of kipp courage middle school, one of 141 kipp charter schools nationwide >> we've got 200 students in fifth and sixth grade right now. we'll grow out to have 400 students in five through eight. like all of our schools, we do our work in under-served communities where majority of students qualify for free or reduced lunch. >> reporter: two years ago, kipp courage began sharing space with landrum middle school, a traditional public school. >> good morning. >> reporter: patricia thomas is principal of landrum middle school. >> our school is a grade six through eight campus. we have about 750 students. >> reporter: how did thomas feel about having a newcomer, a competitor, setting up shop in her building? >> a little bit leery of the program and what was gonna go on.

didn't really know what the program was about, how it was gonna work as a partnership. >> reporter: knowing that bringing in charter schools would be controversial, klussmann did his best to reassure teachers. >> when i met with the faculties early on, i guaranteed them that no one in spring branch would lose their job over this partnership. >> reporter: the president of the local union, an affiliate of the american federation of teachers, objected. >> reporter: but teacher unions in texas have limited power, and klussman's experiment continued at landrum, the union of charter and traditional means that kipp math teacher ryan hambley has access to classroom technology he wouldn't have at kipp. because we're at landrum, we get provided for i-pads, we get provided for net-books, and beautiful technology such as promethean boards and pens. >> reporter: kipp and landrum hire their own teachers for core

courses like math and reading. it's here in the elective courses, band, orchestra, choir art, theater and phys ed, where the charter and traditional schools come together. on it's own, kipp could not afford to offer so many choices. >> we are an envy of the town at kipp courage among the kipp world because we offer so many electives >> reporter: kipp gets the additional courses and landrum gets to send it's teachers to kipp's training program. >> all of the elective teachers came and participated in our summer professional development that we had at kipp. and then we also opened it up to other teachers in landrum, core- content teachers. and there was a team that came and said, "we want to specifically learn about the character strengths." >> reporter: building character is uppermost in kipp's list of educational goals. >> kipp is defined by the fact that we're 51% character, 49%

academics. >> reporter: kipp's impact on landrum seems far greater than the reverse. >> spring branch had a program called development assets, you know, a character education. and so we kind of morphed ours to be more aligned with kipp >> reporter: in the cafeteria, landrum students with their red insignias on their shirts and kipp with their blue may choose to eat separately, but they all spend the first few moments quietly reading or doing homework. >> this was a kipp practice where they sit down first before a mass runs into the lunchroom and goes to the line. >> reporter: two years into the partnership, landrum and kipp are still working out the kinks. one problem, finding time when kipp teachers, who have a longer school day, can work together with landrum's teachers. >> we're working on aligning our schedules for our seventh grade team of teachers next year. and so allowing teachers to have similar off time during the day so that math teachers can get

together and collaborate on ideas. >> reporter: teacher turnover is also a problem. yes prep, the second charter school klussmann invited in, replaced five of it's eight teachers after the first year. two were promoted. three left, according to yes prep's principal, because "it wasn't the right fit." so how is the two-year old partnership working out? the leaders seem pleased. >> i like to bounce ideas off of erik. him being the young guy, me being the old girl, you know, he might have a different idea and vice versa. >> reporter: teachers are also generally pleased, according to a survey. academically, the results are mixed. reading and math scores at landrum are flat; those at northbrook have improved slightly. at both schools, the charter students are generally outperforming the traditional students. and that benefits the traditional schools because klussmann combines the test

scores when he reports them to the state. >> so when we report scores from the campuses we report, the school overall, for accountability reasons all the scores are landrum middle school, northbrook middle school, spring branch isd scores. they just may be in a kipp or yes-taught class. >> reporter: could partnerships like this one in spring branch catch on? perhaps. so far 19 school districts, including milwaukee, tulsa, and denver, have come to take a look. >> ifill: now, conflicting court rulings on the healthcare law. the federal court of appeals based in washington ruled today that the law does not allow policy holders who get their insurance through the federal exchange to qualify for subsidies that would reduce the cost. but a separate ruling, issued hours later by a federal appeals court in richmond said those getting policies through the federal exchanges do qualify for the subsidies.

the rulings come down to different interpretations of the same passage of the law: congress said if a state did not create it's own insurance exchange, the federal government should. but the law also reads that subsidies be provided by, quote, an "exchange established by the state." just 14 states, plus the district of columbia, created their own exchanges. five million enrollees now receive subsidies through the federal exchange. what do these conflicting rulings mean for the future of the health care law? for that, we turn to julie rovner of kaiser health news. and tom goldstein, founder of scotusblog.com. let's go back to the root of this challenge, julie, why did this come up? >> because people who opposed the law found what appeared to be a drafting area saying companies were only available in the state based exchange and decided to sue perhaps trying to get another bite of the apple

trying to invalidate or make a mess of the law. it comes down to whether or not this was a mistake or something congress intended to do when it wrote just that one sentence. >> the whole point of the subsidies was to put the a in affordable care, right? >> that's exactly right. if this were to go away, about 5 million people would see premium increases of 76 portion. most people buying insurance on the exchanges are getting subdz cities, subdz cities are fairly large. if the subsidies were not available basically insurance would become unaffordable and the individual mandate requirement for people to have insurance does not apply to people for whom insurance is unaffordable. >> ifill: the courts ruled this was an unambiguous reading of the law, but yet this other reading of the law seems to open the whole thing to am by duty. >> that's right -- a ambiguity. it's a shock that this sweeping law that takes up thousands of pages might not be

clear to everyone. the language says a state-created exchange and even if it would make a ton of sense for congress to say part of the country has subsidies available to it and a large part of the country doesn't, that's the law congress wrote and our job is to enforce it. the court of appeals in richmond said this statute is a mess and there are things that point in different directions about what congress wanted and because it's unclear it's the administration's job to figure it out. >> ifill: congress opened the door for the challenge? >> yes, absolutely. congress did say when there were supposed to be subsidies but it's unclear whether it literally meant only a state-created exchange or if it meant if you buy your healthcare through the exchange and you can't afford health insurance we'll help you out. >> ifill: if the first ruling were to stand, julie, we're assuming the only way to address it is for every state to set up its own exchange instead of relying on the federal one. >> that would be the idea and there is already discussions in some states on how to do that in

some states passed constitutional amendments barring them from creating their own exchanges. some states don't want anything to do with this law. it also affects the employer mandate, the requirement for employers to buy insurance because that's tied to the subsidies that individuals get, the way the employer mandate works is it says employers only have to pay a fine if they don't offer insurance and one of their employees goeso the exchange and gets a subsidy. if there's no subsidy, there's no way to enforce the employer part of this either. >either. >> ifill: seems we've seen enough challenges to the healthcare law including the part upseld by the supreme court court and a hobby lobby decision in the final case. seems like death by cuts? >> there are circle people critical of the law and brought challenges. the statute had been upheld by and large. this is the single greatest

threat to the reach of the statute, to the attempt to help a lot of people be able to afford healthcare, but it is a part of the law people find offensive in many parts of the country because they don't want the federal government so involved. it's probably going to be up to the supreme court just like the last major challenges. >> ifill: are there other challenges? >> there are in lower courts. it's not a requirement it will produce a requirement for the supreme court to take the case. >> ifill: we're talking about two different courts and two fferent circuits today and then what? >> well, right now immediately, this was a three-judge panel of the cour court of appeals and ty will appeal to the entire appeals court and generally there are more democratic than republican appointees there. there is at least a perception it's likely to be reversed by the full appeals court and you would have basically two with appeals courts having ruled and not disagreeing and in that case

the supreme court would not have to take the case but they probably would. >> ifill: remind us, tom, the way this works. at what point does the court decide it would have to intervene? >> someone has to ask. so the plaintiffs who lost the richmond are inevitably going to ask the supreme court to step in. the government could go to the supreme court but washington said it would ask the full appeals court the quasht r washington to hear the says. we're probably a year to 18 months away from getting the answer. the supreme court could stay out. it's more likely to say this is so important and enough people on the court, enough justices to take it up. but it's an open question. >> ifill: why would this be more important than any of the other challenges? you don't think the court would be compelled? >> my guess would be if there's no split in the circuits the court wouldn't want to revisit it again unless they could change the decision they got in 2012. >> ifill: the most immediate question for people watching

tonight is how does this affect me. if they have their employer-covered insurance, it doesn't affect them? >> no, and if they have subsidies in the federal exchange states, it doesn't affect them immediately. the way the rules work in the d.c. circuit is they don't even send the requirement back down to the district court, who is who would actually implement this, to 45 days to give the government full time to appeal this which we know the government will do. this won't happen right away. it will be a long time before people start losing their subsidies they're getting now. >> ifill: potentially how many people will be affected by the rulings? >> 5 million. >> ifill: 5 million currently? yes. >> ifill: others lined up? there is so much discussion at who was registering at what pace, but do we know if there are others that are also affected. >> as more people join, it will affect more. some numbers have gone into 2016, so it's everybody getting

the subsidies now and everybody who's potentially eligible in the 36 states where the federal government is running. >> and then we have all the employers who wouldn't be subject to the mandate that's coming in the future that they provide health insurance because none of their employees would be getting subsidies. >> ifill: is there timetable for the court to act again? >> no, the court of appeals can take its time to have the whole court hear the case. most are sensitive to whether the supreme court could -- you're looking at 18 months for when we'll have a final answer. >> ifill: can't wait. tom goldstein, julie rovner of kaiser health news. thanks very much. >> woodruff: finally tonight, ten years ago, an independent group issued a 567-page report assessing the nation's preparedness and response to the september 11th attacks. they'd been tasked by congress

with providing recommendations to keep the country safe from future attacks. a decade later, the original group of five democrats and five republicans reconvened, as part of an effort led by the bipartisan policy center, to produce a current assessment of the nation's threats and challenges. i spoke yesterday with the commission's chair, former new jersey governor tom kean, a republican, and vice-chair, former democratic representative lee hamilton of indiana. governor tom kean, representative lee hamilton, welcome to the "newshour". >> thank you. >> woodruff: you say in this report looking back over the ten years that the u.s. government has done a good job at fighting terrorism but you also say, tom kean, you warn the struggle against terrorism has entered a new and dangerous phase. what do you base that on? >> the threat is different but no less. it's not one central al quaida based in afghanistan the way it

was, now it's many more countries than there were before, all working at the same time and working in different ways. bomb making techniques coming out of a group, i.s.i.s., a great danger, who are training terrorists who can come over anytime. so a lot going on. the american people can't be complacent. we need to protect oursselves as much now as we did on 9/11. >> woodruff: does that mean we are not safer today, lee hamilton? >> i think we're safer than prior to nine len. not safe enough. we still live in a dangerous worldy where a lot of people want to do us harm, so we must consider the urgency of the threat, keep it in front of the american people. we've got a pretty good record, not a perfect record. we've had no event like 9/11.

we have had some incidents like fort hood and the boston marathon, but overall, all the money we've spent, all the organizations we've with created, we have a good record but not a perfect one. >> woodruff: tom kean, one of the things you say is this lack of security today is part of the result of the u.s. "inability or reluctance to assert power an influence in a number of places." are you saying if the u.s. had gone into syria, for example, we wouldn't be in this situation? >> some would, i won't necessarily say it myself and not what we're saying as a group, but, yes, the united states -- the world can't do without us. we are the one nuclear power generally project ford the democratic good in the world and when we step back, a lot of other people rush in, and the world is now such a strange place with so many different

areas. we said the one thing you can't allow is a place where terrorists can train and prepare the way they did in afghanistan before 9/11 and those places are created today. >> woodruff: that would mean a more activist united states abroad militarily. the american people don't have an appetite for that necessarily, do they? >> it is changing. we are not putting boots on ground for combat. that's pretty clear. policymakers don't come in with a clean slate. they know the american people don't want to get militarily involved there. what does that mean? what means is you have to use other tools of power, and that can be covert action, diplomacy, political steps, economic leverage, all kinds of things, but we're not going to be

putting troops on the ground. but as we withdraw, we take a major tool of american foreign policy out of the picture. we'll have to put other things in its place. >> woodruff: are you saying the administration hasn't done that sufficiently? >> i think we can always do better. they're doing it to some degree but not the way i would like to see it. we need, i think, to be involved particularly in the areas in that part of the world that are so unsettled. we need america -- our principles, morals and democratic point of view expressed. >> woodruff: you single out cyberthreats as an area you worry a great deal about. >> we talked to every official having these responsibilities in the obama administration and people who have left the obama administration, every single one said cybersecurity was a real threat, every single one of them said we're way behind on it. some of them said we're the way we were the day before 9/11 as

far as cyber goes. so we're having a huge transfer of knowledge, secrets coming from the private sector, affecting jobs, secrets coming from the defense department on our newest technology, all stolen, it's being done quietly so the american people aren't aware of how seriously it's affecting us. >> woodruff: you say the american people are not sufficiently aware of how serious this threat is. >> well, they've become complacent and why not? we haven't had an attack like 9/11, that's good. that's a success. but because of the success, they have become more complacent. what we worry about is that as they become more complacent, they won't talk to their representatives about it. congress won't reflect it, the executive branch won't reflect it.

they'll lower their guard on counterterrorism empts and we're saying that will be a big mistake. >> woodruff: how much of this,top tom, is the president's responsibility to make sure people think about the threat that's still there? >> i think a great deal of responsibility because the president is the only one who can speak to the american people as a whole and rally them. this report is somewhat like a long bill in the night. there are very serious things going on. we don't think the american people are aware of it and in some ways the american government are as prepared as they should be for the threats out there and we hope the president will take the leadership in explaining the threat and in more detail than he has the steps we'll take to meet the threat. >> woodruff: sounding the alarm ten years after the first 9/11 report. we thank you both, congressman lee hamilton, governor tom kean. >> thank you. >> ifill: again, the major developments of the day.

deputy national security adviser ben rhodes told the newshour u.s. intelligence has confirmed the missile that brought down malaysia air flight 17 originated in ukrainian territory controlled by pro- russian separatists, but that it does not absolve russia of complicity in the incident. and u.s., european, and canadian airlines suspended flights to israel's ben gurion airport, after hamas rocket-fire landed in a nearby suburb. >> woodruff: on the newshour online right now, one low-income neighborhood in austin, texas, is hoping to transform the community through street art. artists and citizens are coming together, despite language barriers and cultural differences, to paint fences with the phrase "beauty will save the world." see what that looks like, on art beat. all that and more is on our web site, newshour.pbs.org. >> ifill: and that's the newshour for tonight. on wednesday, 100 days after those nigerian schoolgirls went missing, we provide an update. i'm gwen ifill. >> woodruff: and i'm judy

woodruff. we'll see you on-line, and again here tomorrow evening. for all of us here at the pbs newshour, thank you and good night. >> major funding for the pbs newshour has been provided by: ♪ ♪ moving our economy for 160 years. bnsf, the engine that connects us. >> and by the alfred p. sloan foundation.

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this is "nightly business report" with tyler mathisen and susie gharib. >> apple tops the targets but does it have a revolutionary product in the pipeline that will wow investors and consumers? >> battle ground stock. herbalife shares have the best day ever after bill ackman failed to deliver what is being called a death blow. >> two courts issued different rulings on a central component of the president's health care law. subsidized premiums. >> all that and more tonight on "nightly business report" for tuesday, july 22nd. good evening, everyone. i'm sue herrera filling in for susie gharib. >> and i'm tyler mathisen. welcome, everyone. stocks rose today and got a boost from positive earnings, strong economic data and e