we talked to jonathan karl of abc news, gerald seib of the "wall street journal" and john heilemann of "new york" magazine. >> the budget though is really setting the republican agenda not just for the rest of the year but potentially for a generation. i mean he has put forward a plan that gets into not simply questions of government spending but of policy. i mean his efforts to basically remake the medicare program into a system that is government subsidized but private insurance. >> what paul ryan did this week starts a national conversation slash debate that runs all the way through the 2012 election. it is a conversation and debate that's not really about the budget, it is about what is the role of government in the 21st century america and how much are you willing to pay to have that role fulfilled. >> if you think about gingrich, he had those revolutionaries behind him, his base, the further i was pea he pull on the

i start with jonathan karl. where do you think we are. >> we are at a place how far a shut down until they try something in the really next 12 to 24 hours. the deal runs out by friday. they've got a deal to pass in the house and senate and right now all sides are digging in. speaker boehner is in a situation where whatever deal he ultimately strikes he still has to pass in the house and his members are pushing in to push for further cuts and that's exactly what he is doing, not willing to accept what the white house and the democrats have put on the table so far. >> charlie: gerry, how do you think the president's handling it and what's the dilemma for the president. >> what's fascinating today, charlie when the president was talking he was standing above the night in a way. he was describing the democrat over there and the republicans over there and you guys need to get together not me and the other democrats and you guys the rowrkz. i think he's positioning himself as the adult in the room. that's almost the w

so with so much at stake jonathan karl explains what is really holding things up.ter: on capitol hill a part san melt down. >> the reason we did not shut it down is because -- house will come to order. cut spending. to begin getting our fiscal house in order and to keep about. [applause]. >>reporter: even disagree about what they disagree about. democrat say they have agreement on 34.5 billion dollars in spending cuts. but republicans say there is no agreement on how much to cut. and believe it or not the issue of abortion could be causing the government to shut down. democrat say republicans are trying to use the funding bill to force new restrictions on abortion rights. republicans say they are simply trying to restrict public funning of abortion. one tea party freshman told us shutting down is better than rolling over. >> really serious we could see a government shut down when only a few billion dollars separating these 2. >> yes. it is possible. >>reporter: worth shutting it down over the few bill yoychbility i will tell you it is time for our side to stop bein

>>reporter: jonathan karl reporting.g money on gas may drive people to wal-mart new on line grocery delivery service. it is being tested at one store only in san jose. service is called wal-mart to go. you can order groceries health and beauty product over the counter medicine and toys from the company web site. wal-mart will then drive the goods to your home at the time of your choice. wal-mart taking on amazon with the service. if it works they will likely expand it to other areas. >>> third air traffic contro controller fired today for falling asleep on the job twice. in the mean time a member of national transportation safety board safety board thinks it has a solution to these kind of incidents. let them take a nachlt board member mark rose kind says scientific evidence shows short naps refresh workers suffering from fatigue and helps them remain alert. union representing the controllers is pressing the faa to allow naps during overnight shifts and during 20 to 30 minute breaks. obama administration is against the i

abc news correspondent jonathan karl talked to congressman david schweikert and senator joe manchin. first, schweikert. >> are you concerned that we could see a government shutdown when there are only a few billion dollars -- >> it is possible. >> worth shutting it down for those few billion? >> it is time for our side to stop giving and it. >> you understand how it back congress looks? >> -- how bad congress looks? >> i understand, i am one of them. >> we went through this in 1996 with bill clinton as president and newt gingrich as speaker of the house. how did we get to this point again, evan? >> we never learned. most of the country does not want this to happen, but the voters and a district that elected the tea party people do want it to happen. that the book group of congressmen are under pressure from their voters to shut it down -- that little group of congressmen are under pressure from their borders to shut it down. >> colby? >> that is one-sided. the other side has pressure, the ideological side, the democrats who say we don't want riders in the bill. you have an ideologica

that's led house republican leader, john boehner, to tell our jonathan karl, something he hasn't said before about oil company tax breaks. >> reporter: would you be in favor of seeing the subsidies at oil companies. >> something we need to be looking at. >> reporter: doing away with the subsidies? >> we're at a time when the federal government is short on revenues. we need to control spending. but we need revenues to keep the government moving. they ought to be paying their fair share. >> boehner also says president obama is partly to blame for the run-up of gas prices. he says mr. obama will not win re-election if the gas prices continue to rise. >>> and looking ahead to that re-election battle, one republican candidate is in and another is out. mississippi governor, haley barbour, has decided not to run in 2012. barbour says he lacked the fire in the belly that a candidacy would require. however, texas congressman, ron paul, is announcing he is forming an exploratory committee. >>> and donald trump is questioning president obama's background and qualifications. this time, the donald

here's jonathan karl. >> reporter: on capitol hill, a partisan meltdown. >> the reason we didn't shutis because -- >> house will come to order. gentleman will suspend. >> cut spending to begin getting our fiscal house in order and to keep -- >> reporter: they even disagree about what they disagree about. democrats say they have an agreement on $34.5 billion in spending cuts. the republicans say there's no agreement on how much to cut. and believe it or not, the issue of abortion could be what causes the government to shut down. democrats say republicans are trying to use the funding bill to force new restrictions on abortion rights. republicans say they are simply trying to restrict public funding of abortion. one tea party freshman told us, shutting down is better than rolling over. are we really serious that we could see a government shutdown when there are only a few billion dollars separating these two? >> yeah, it's possible. >> it's worth shutting it down over those few billion? >> i will tell you it's time for our side to stop being the ones to give in. >> do you understand how

jonathan karl, abc news, capitol hill. >> and a lot of people just find this shocking that we're in thisyou know, at all, and many people think that some of the politicians aren't acting in the country's best interest but maybe trying to make sure that they keep those re-election -- the focus there on the re-election instead of what really need to be done in terms of balancing the budget. >> yeah, and bottom line, it just looks bad, people are frustrated and fed up with it. we'll see how it affects everyday americans. it just is frustrating, to say the least, and we'll obviously stay on top of that story throughout the week. >>> but we do now want to go to the nation's commercial airlines. they've been in the headlines the past few days. people were scared to fly even, so engineers at boeing said they never expected the metal joints on older 737 jetliners would wear so soon. >> not so reassuring, is it. >> no, not at all. >> they're rushing to create inspection and repair instructions for hundreds of similar planes in service worldwide. diana alvear is now joins us from los angeles with

jonathan karl is on capitol hill for us. what's the latest? >> reporter: good morning, juju.ning, democrats and republicans that i have spoken to can't agree about what they disagree about. the democrats say they have some agreement but that the republicans are blocking over abortion. the republicans say, that's not true. time is running out. midnight tonight, the government shuts down unless they can get a deal. >> jonathan karl, with a long day and a long night ahead. thank you. >>> social security is making a big change. and it has nothing to do with the possible government shutdown. the agency is going to stop mailing the annual statements that says what you will get when you retire. instead, they will post it online and save about $70 million. >>> a possible breakthrough in the hunt for a serial killer here in new york. as we told you this week, three more bodies have been found along the beach in long island, bringing to eight the number of possible victims. now, police are reportedly looking closely at a potential suspect. and they're looking at links between this case

jonathan karl asked house speaker boehner about oil companies getting taxpayer subsidy. >>reporter: from speaker boehner a significant shift that stunned washington. suggesting a willingness to do away with tax break for big oil. >> certainly something that we ought to be looking at. >>reporter: doing away with the subsidy. we are at a time when the federal government is short on revenue. need to control spending but we need to have revenue to keep the government moving. they ought to be paying their fair share. >>reporter: congressional democrat pounced. one applauding boehner for seeing the light and our exclusive interview caught the president attention. prompting him to fire off a letter to congressional leaders saying he was quote heart ended by what the speaker told abc and urging congress to take immediate action to eliminate unwarranted tax breaks for the oil and gas industry and use the dlarts to invest in clean energy. all told those tax break designed to encourage more domestic oil production cost taxpayers more than 4 billion dollars a year in lost revenue. o

i'm jonathan karl. >> joining me now, the senate's third ranking democrat, chuck sumer who you just sawhere, who joins us from his home state of new york, at our bureau there. and with me here in the newseum, senator jeff sessions. thank you for joining me. you saw jon karl's piece. there's a lot of hijinks in that piece. has any progress been made this weekend amongst negotiators? >> i don't know. >> is that a know? >> i don't know that it has. the speaker indicated he has not reached an agreement. i think that negotiations continue and they need to continue. but what this is -- christiane, we need to understand this is more than a republican-democratic squabble. this is -- the fundamental question is, are we headed to a financial crisis if we don't get off the fiscal course we're on? we have had witness after witness say that is so. erskine bowles said that. president obama's choice to head the debt commission. we're predicting a crisis that could happen in two years. we have to take action now. >> we'll get to that. from your perspective, senator schumer, has progress been made? will

jonathan karl, abc news, greenville, ohio. >>> more people bought new homes last month giving the industry0 new homes were sold, but that's far below the 700,000 that experts view as healthy. builders are continuing to struggle against the enormous number of foreclosed homes already on the market. >>> congresswoman gabby giffords takes a vital step towards her rehab this week. she will travel to florida for the launch of the shuttle "endeavour" commanded by her husband. experts say for brain injured patients like giffords, setting and achieving goals is the key to recovery. john hendren has more. >> reporter: mark kelly's final shuttle journey is a red letter date twice over. what might be the final launch of any shuttle on friday, it's not clear there is money for one more, and the first public appearance by his wife congresswoman gabrielle giffords since she was shot in the head in tucson in january. >> i've met with her -- her doctors and neurosurgeon and they've given us permission to take her down to the launch. >> reporter: gabby, too, is excited to mark both milestones, as kelly tol

barone award for excellence in washington-based reporting in congress to jonathan karl of abc news.ause] congratulations. >> thank you. just very quickly, it is an unbelievable honor. the credit all goes to my team. i am blessed to work with some of the very best people in journalism. they are unbelievable. thank you for working with me. zach wolf, gregory simmons -- and my wife who loves me so much. thank you, you all. >> here is a short video about his award. >> job and, bill is being pushed by democrats. quite the bill is loaded up with pork projects. it is an outrage. >> many of these earmarked were rejected by republican senators. >> there are millions of dollars in earmarked from the two of you. had you have any credibility? >> we are going to vote against the bill. this is the wrong way to do business. >> this is not just about your marks. they are a waste of washington spending. the american people have said they want reform. >> was it wrong to put in the year marks in the first place. >> i try to answer to the best of my ability. >> you are the incoming appropriations chair