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President Bush Discusses Iran's Nuclear Ambitions With President Of Azerbaijan And Reporters; Despite Strong Economy, Gas Prices Hurting The President's Poll Numbers; Controversy Over Spanish Version Of U.S. National Anthem; President Bush Today Renewed His Threat To Veto Emergency Spending Bill Unless Senate Scales Back Its Cost; Congressman Mollohan Welcoming Reports That FBI Will Subpoena Several Nonprofit Groups
Aired April 28, 2006 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
WOLF BLITZER, CNN ANCHOR: Thanks Ali.
To our viewers, you are in THE SITUATION ROOM, where new pictures and information are arriving all the time. Standing by, CNN reporters across the United States and around the world to bring you today's top stories.
Happening now, added urgency in the nuclear standoff with Iran. President Bush and the United Nations draw new lines in the sand, as a key deadline has now come and gone. It's 4 p.m. here in Washington, where Mr. Bush is talking openly now about some options for action.
Also this hour, economic ups and downs. The president boasts about a new growth spurt but soaring gas prices are weighing very heavily on consumers and on the president's poll numbers. We'll do the political math.
And oh, say can you see? The immigration wars rage on. Should the national anthem be sung in Spanish? We'll hear what Mr. Bush and some Democratic senators have to say.
I'm Wolf Blitzer. You're in THE SITUATION ROOM.
Up first this hour, new pressure on Iran from the United Nations and from the White House. The U.N. nuclear watchdog agency today declared that Iran has not complied with demands to stop its nuclear program.
President Bush is calling Iran's actions unacceptable. Today he discussed Iran's nuclear ambitions with the president of Azerbaijan and in a separate Q&A session with reporters. Our reporters are covering all aspects of this story.
Let's go to the White House first. Our correspondent Ed Henry has the latest -- Ed.
ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Wolf, stung by criticism that he was determined to go to war in Iraq no matter what, President Bush keeps saying basically that he wants to give peace a chance in Iran. So today he stood up to Iran, as you noted, basically said that what they are doing right now is unacceptable. And he didn't really escalate the rhetoric, issue more threats. Instead he kept stressing that the world is united in the effort to stop Iran from realizing its nuclear ambitions.
And on the diplomatic front, the president also welcomed in the president of Azerbaijan, a neighbor of Iran that has said that it will not let its nation be used as a base for any potential military conflict. It's a sensitive issue, obviously, so President Bush suggested in their Oval Office meeting that in fact he wants to solve this diplomatically and peacefully.
And then the president went to the rose garden, as you noted. He had a wide ranging press conference on many issues. But a hot topic obviously was Iran, and the president kept stressing diplomacy, diplomacy, diplomacy.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The IAEA statement is an important statement. It reminds the nations of the world that there is an ongoing diplomatic effort to convince the Iranians to give up their nuclear weapons ambitions.
It reminds -- should remind the Iranians that the world is united and concerned about their desire to have not only nuclear weapons but the capacity to make a nuclear weapon or the knowledge to make a nuclear weapon, all of which we're working hard to convince them not to try to achieve.
(END VIDEO CLIP)
HENRY: The president was pressed on whether those diplomatic options though are dwindling. The president insisted in his words diplomacy is just beginning. One option on the table is seeking sanctions before the United Nations against Iran. That's definitely on the table -- Wolf.
BLITZER: I watched that whole news conference in the rose garden, Ed, and the president seemed rather upbeat and confident as he was going through, despite the sinking poll numbers. What is going on behind the scenes? Is there a new strategy that's unfolding now that Josh Bolten has taken over as the White House chief of staff?
HENRY: I think perhaps the president was trying to let his personality show through. He is trying to show. He was joking, as you know, a lot with reporters, joshing and what not, trying to show it's not getting to him.
Also, not escalating the rhetoric against Iran, trying to keep a measured tone. And I think clearly, given all this pressure, he's trying to show that he's looking straight ahead. He has got his eye on the ball. He kept talking about the war on terror all around the world, keeping his eye on the economy here at home, which was the stated reason for this press conference. And he doesn't want to look like any of this is getting to him. That it is full steam ahead -- Wolf.
BLITZER: Thanks very much, Ed, at the White House.
Now the issue the president was most eager to speak about today that would be the economy. It grew during the first three months of this year at its fastest pace since 2003. But the president couldn't ignore a less upbeat subject. That would be the soaring gas prices. It is a good news-bad news economic story that hasn't been playing out well for the president in the polls.
Let's bring in our senior political analyst Bill Schneider -- Bill.
WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: Wolf, it's been a political cliche since 1992, "it's the economy, stupid," but you know what? Sometimes it's not.
(BEGIN VIDEOTAPE)
SCHNEIDER (voice-over): More happy talk about the economy. That's reported to be part of new White House Chief of Staff Josh Bolten's strategy for restoring confidence in the Bush administration. So here's the president.
BUSH: And our economy grew at an impressive 4.8 percent annual rate in the first quarter of this year.
SCHNEIDER: Tell it to the American people, 44 percent of Americans think the nation's economy has gotten worse over the past year compared with 23 percent who believe the economy has gotten better.
President Bush argued that a strong economy can relieve the nation's gas crisis, using an unfortunate metaphor.
BUSH: With gas prices on the minds of Americans, we need to keep our foot on the pedal of this strong economy.
SCHNEIDER: How exactly can that happen?
BUSH: These oil prices are a wake-up call.
SCHNEIDER: President Bush managed to find good news in the gas price increases.
BUSH: One reason there is tight gasoline supplies is because we haven't built any new refineries since the 1970s.
SCHNEIDER: The president called on oil companies to reinvest their record cash flows.
BUSH: That means expansion of refineries. That means exploration in environmentally friendly ways.
SCHNEIDER: Could gas price increases actually benefit American consumers?
BUSH: Now that the price of oil is up, alternatives become much more economically viable. And therefore I think the American people are going to see a lot of technological development happen quickly, which will enable people to have different options and different choices.
SCHNEIDER: The president believes the good news can drive out the bad, but by four to one, Americans say they feel uneasy about the economy because of gas prices, higher interest rates and the deficit rather than confident about the economy because of jobs, the stock market and low inflation. The bad news is driving out the good.
(END VIDEOTAPE)
SCHNEIDER: Happy talk about the economy does carry a risk for President Bush. He can sound more and more out of touch with the problems facing ordinary Americans, the way his father did in the early 1990s -- Wolf.
BLITZER: And it's the economy stupid when there isn't a war going on. The Iraq situation clearly hovering over this presidency presumably like none other.
SCHNEIDER: That's exactly right. When the economy is bad, the economy is the issue. When the economy is good something else is usually the issue.
BLITZER: Bill, thank you.
And right now a new theme is emerging in the political battle over immigration. Should the national anthem be sung only in English? A Spanish language version was released today, and it got some people talking including the president.
Let's bring in our congressional correspondent Dana Bash. She is following the immigration wars -- Dana.
DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: Well, Wolf, both the Republican and Democratic leader here in the Senate today said they are actually making progress in breaking the deadlock over an immigration reform bill, but there is some fear here that there could be some backlash over boycotts planned for Monday and a certain song.
(BEGIN VIDEOTAPE)
BASH (voice-over): He may speak Spanish every chance he gets, but President Bush says the national anthem should be in English.
BUSH: I think people who want to be a citizen of this country ought to learn English. And they ought to learn to sing the national anthem in English.
BASH: At issue is this, "Nuestro Himno," a Spanish language version of the anthem released Friday by Latin pop stars who call it a tribute to America's immigrants.
It has already provoked outrage on conservative blogs and elsewhere. And supporters of immigration reform in both parties fear the song could backfire, especially among lawmakers who say if illegal immigrants want to stay legally they must assimilate.
SEN. HARRY REID (D-NV), MINORITY LEADER: I personally am not going to dwell on something based on some song.
BASH: At a meeting with Catholic cardinals pushing for immigration reform, the Senate Democratic leader would not give his opinion.
REID: Well, let's look at the positive. Let's not look at the negative. Let's not look at someone waving a Mexican flag.
BASH: But top Democrats are worried about activists looking and sounding anti-American and encouraged organizers of massive immigration protests earlier this month to wave American flags.
Lawmakers are also concerned the national boycott Monday of everything from jobs to schools planned by immigration activists could knock progress on reform legislation off track.
And on Capitol Hill, Cardinal Roger Mahoney of Los Angeles encouraged people to go to work and school.
CARDINAL ROGER MAHONEY, LOS ANGELES ARCHDIOCESE: I think that any kind of action or strategy that could give us a negative backlash of some kind is unhelpful in passing legislation we need.
BASH: The president too called it a bad idea.
BUSH: I'm not a supporter of boycotts. I am a supporter of comprehensive immigration.
(END VIDEOTAPE)
BASH: And the controversy over the national anthem is getting attention fast here in Congress. Republican Senator Lamar Alexander says he will introduce a symbolic resolution on Monday, quote, "giving senators an opportunity to remind the country why we sing our national anthem in English" -- Wolf.
BLITZER: Dana, thanks. I also want to thank Bill Schneider. Ed Henry, part of the best political team on television. CNN, America's campaign headquarters.
Jack Cafferty is standing by in New York. And again, Jack -- I don't want to leave you out -- You're part of the best political team on television, as well.
JACK CAFFERTY, CNN ANCHOR: Thank you. Thank you very much.
You know, these folks threatened to snatch defeat from the jaws of victory on this immigration thing, Wolf. Now they're recording the national anthem in Spanish. They're going to do all this marching around on Monday and boycott this and parade against that. And at the same time, we've got the Congress halfway serious about trying to do something for them. This doesn't smack as being maybe the brightest strategy they have, but we'll see. Where is the outage? That's what Senate Judiciary Committee Arlen Specter wants to know, and he's a Republican. He's talking about how little information the administration has been shared with the Congress about its secret program of eavesdropping on Americans without a court order.
Specter says he's considering a bill that would cut off funding for the controversial NSA program until gets some satisfactory answers from the White House. He says he'll hold hearings. He's not going to seek a vote on it just yet, although he has already attracted potential co-sponsors. Specter's announcement came a day after the House passed a bill to dramatically increase spending on intelligence programs, presumably legal ones.
Here's the question. Should Congress block funding for the NSA domestic wiretapping program unless they're kept fully informed? E- mail your thoughts to CaffertyFile@CNN.com, or go to CNN.com/CaffertyFile.
Can I have the day off Monday, Wolf? I'd like to go out and march around a little bit.
BLITZER: No.
CAFFERTY: OK.
BLITZER: OK.
CAFFERTY: Just asking.
BLITZER: No. We need you here in THE SITUATION ROOM.
CAFFERTY: Fine.
BLITZER: And if you want to get a sneak preview of Jack's questions, plus an early read on the day's political news, what's ahead in THE SITUATION ROOM, you can sign up for our daily e-mail alert. Just go to our homepage, CNN.com/situationroom and you'll see how you can sign up right there.
Coming up, remember the Dubai ports security controversy? It was talk of this town across the country earlier this year. So will a new Dubai deal cause another controversy?
A new report says Iraq has become a safe haven for terrorists. Our Zain Verjee standing by with the details.
Plus George Clooney's very serious mission of mercy. My one-on- one interview with the actor and the activist.
That's coming up in the next hour, right here in THE SITUATION ROOM.
(COMMERCIAL BREAK)
BLITZER: President Bush gave his seal of approval today formally to a new deal with the Dubai-owned company. But this time, there's no uproar from Congress, at least not yet. A state-owned Arab firm will take over operations of some factories that make parts for U.S. military contractors right here in the United States. Lawmakers of both parties were briefed on the deal. It was investigated by the Bush administration's Committee on Foreign Investments in the United States, also known as CIFIUS.
(BEGIN VIDEO CLIP)
BUSH: That question has been looked at very carefully and has been analyzed by this -- a CIFIUS committee. I signed off on it this morning because I am convinced, at the recommendation of the CIFIUS committee, as well as our military, that it's a sale that should go through.
(END VIDEO CLIP)
BLITZER: As you probably remember, an earlier deal for a Dubai- based firm to manage some U.S. ports was killed because of fierce opposition in Congress. We're going to have a lot more on the way these two deals went down. That's coming up in the next hour of THE SITUATION ROOM. Our John Roberts is watching this story for us.
Zain Verjee is watching some other news for us. She's joining us from the newsroom here in Washington. Welcome to Washington, Zain.
ZAIN VERJEE, CNN ANCHOR: Thanks, Wolf.
Iran tops the U.S. State Department's list as the world's most active state sponsor of terrorism. The State Department latest terrorism report accuses Iran of directly sponsoring terrorists in Iraq and Palestinian militants in the Middle East. The report also warns extremist fighters are trying to turn Iraq into a safe haven for terrorists.
The State Department report says the biggest threat to the U.S. right now comes from unpredictable groups loosely linked to al Qaeda. According to the report, 11,000 terror attacks killed more than 14,000 people last year. That was worldwide.
There have been more U.S. casualties in Iraq. The U.S. military says a roadside bomb killed an American soldier north of Baghdad yesterday. A U.S. marine died on Wednesday in combat operations in Iraq's Anbar province. Two thousand three hundred and ninety-six U.S. soldiers and military civilians have died in Iraq since 2003.
The Department of Defense has announced it's uncovered what it's calling unusual activity on an Internet server for its military health program Tricare. Pentagon officials say there was an apparent network intrusion, and information was compromised. It's not clear how many files were accessed or by whom. The Pentagon says it's implemented security controls and additional monitoring tools to improve security. Letters are being sent to the individuals affected.
Jurors in Zacarias Moussaoui's sentencing trial have gone home for the weekend, but not before they got a warning from the judge. She told them to avoid dictionaries and the Internet. A juror looked up the meaning of the word aggravating. That's an issue in the deliberations, which resume on Monday. The jury is deciding if confessed al Qaeda conspirator Zacarias Moussaoui should be executed or get life in prison -- Wolf.
BLITZER: Zain, thank you for that.
Up next, five members of the U.S. Congress are willingly arrested today. Nothing to do with corruption. We're going to tell you why when we return.
Plus, Jack Abramoff's extravagant vacation. We're going online to get the inside story.
Stay with us. You're in THE SITUATION ROOM.
(COMMERCIAL BREAK)
BLITZER: Let's get a quick check of our "Political Radar." Five Democratic members of the U.S. Congress were willingly arrested today for disorderly conduct and unlawful assembly. They were protesting atrocities in the war-torn Darfur regions of Sudan. The lawmakers were led away from the Sudanese embassy here in Washington in plastic handcuffs.
Today President Bush met with advocates for the Darfur region. They accused the Sudanese government of arming militias who have raped and killed tens of thousands of people in Darfur and driven some two million people into refugee camps.
(BEGIN VIDEO CLIP)
BUSH: They agree with thousands of our citizens, hundreds of thousands of our citizens that genocide in Sudan is unacceptable. And there will be rallies across our country to send a message to the Sudanese government that the genocide must stop.
(END VIDEO CLIP)
BLITZER: The actor, the director George Clooney will be taking part in the rallies this Sunday to draw worldwide attention to the crisis in Sudan. I sat down with George Clooney to talk about that and more. You can see that interview coming up in the next hour right here in THE SITUATION ROOM.
A new poll offers an interesting new take on the race for the White House. People were asked if they would support building a new independent political party to run a credible third-party candidate for president. Nearly half -- get this -- nearly half, 45 percent of those surveyed in "The Wall Street Journal" NBC News poll said they would in fact favor the idea.
Did disgraced lobbyist Jack Abramoff take his family on an extravagant vacation to a Florida resort, this after telling federal court officials that he's in financial ruins?
Our Abbi Tatton is following the story on line, and she is joining us now -- Abbi.
ABBI TATTON, INTERNET REPORTER: Wolf, this is the motion filed last month by Abramoff's lawyers in Miami, saying that Abramoff is broke, that the convicted lobbyist is tormented daily worrying about his family needing financial assistance.
And this is the luxury Florida resort, where "The New York Times" reports that Abramoff and his family spent a nine-day Passover vacation earlier this month. It's called Turnberry Isle Resort and Club. It is one of the leading hotels in the world.
A hotel spokeswoman tells me that this travel agency, Presidential Kosher Holidays, booked a large portion of rooms to these Passover vacations. Guest enjoyed pool side beverages and gourmet kosher food.
At the Web site the trip was listed at costing $3,600. Now, neither the tour agency or the hotel would disclose any names of guests on these vacations. "The New York Times" quotes Abramoff's lawyer as saying the Abramoff trip was paid for by extended family -- Wolf.
BLITZER: Thank you for that. What a story. Expensive matzo trip during Passover.
Up next, the president's rough week. Is the White House strategy working? I'll ask two experts, Paul Begala and J.C. Watts.
Plus, gas price politics. How can the president and Republicans get beyond the pain at the pumps? We will find out in today's "Strategy Session." Stay with us.
(COMMERCIAL BREAK)
BLITZER: Today in our "Strategy Session," President Bush answers questions on the top issues facing his administration. Has the president been unable to catch a break lately? What can he do to try to turn things around?
Joining us now, our CNN political analysts. Democratic strategist Paul Begala and former Republican Congressman J.C. Watts.
Guys, let's listen to what the president said today about his strategy a little bit. Listen to this.
(BEGIN VIDEO CLIP)
BUSH: I think it's necessary to continue doing -- achieving results for the American people. We've got big challenges for this country, and I've got a strategy to deal with them.
(END VIDEO CLIP)
BLITZER: Not sure what his strategy is, but he's going to have a lot of work. If you take a look at this "Wall Street Journal"/NBC News poll of direction of the country, only 24 percent think the country is moving in the right direction. Sixty-seven believe -- 67 percent believe the country is moving in the wrong direction. Give the president some sound strategic advice.
PAUL BEGALA, CNN POLITICAL ANALYST: Well, first banish -- the word we heard in that sound byte that would most trouble me if I worked for the president is the word continue. Twenty-four percent want to continue, 67 want to change. He should stand up, as Ronald Reagan did, by the way. When Democrats were saying we want change and Reagan was president, Reagan said we are the change. The president ought to be on the side of change.
The problem with that is he's entrenched, and he's defending policies now that the American people don't support, whether it's economic policies that run up the debt, whether it's this God awful war in Iraq, or gas prices, where this week he was trying to pretend like he was going to get tough on the oil companies. I mean, just go to the American people and say who do you trust to take on big oil? George W. Bush and the Republicans or the Democrats? And he loses.
BLITZER: What does the president need to do, J.C.?
J.C. WATTS, CNN POLITICAL ANALYST: Well, Wolf, when you look at the economic policy, 4.8 percent growth in the last quarter, phenomenal. Eighteen consecutive quarters of growth, five point million -- not 5,000, but five point million new jobs in the last two years. That's phenomenal economic growth.
The president has to be careful that he doesn't allow this economy, this great strong economy, to be defined through the prism of fuel prices. And, again, I think in this situation the president -- Wolf, the last two times I've been on your show, I have said the president has to be proactive, not reactive. And they have to be careful that they're not reactive or reactive to these fuel prices.
Now, we've got some challenges there. But the president has done it. We made more refineries. We need exploration domestically, not just getting oil from foreign sources. Those things -- the president has been talking about for two or three years. He needs to drive those and force those issues on Congress to vote on them.
BLITZER: A lot of people are angry at the big oil companies, like ExxonMobil, for thee record profits that they have had. And a lot of Democrats, and even some Republicans, are now saying maybe a windfall profits, a little bit more taxes on the profits of these big oil companies might be a good idea to get some of that money back to the American people.
Listen to what the president, though, said about that today.
(BEGIN VIDEO CLIP)
BUSH: The temptation in Washington is to -- is to tax everything, and then figure -- and they -- and they spend the money, they being the people in Washington. The answer is, is for there to be strong reinvestment to make this country more secure, from an energy perspective. Listen, these oil prices are a wakeup call. We're dependent upon oil. And need to get off oil.
(END VIDEO CLIP)
BLITZER: What do you think?
BEGALA: Well, the Democrats have the better of the argument.
Nobody is going to believe George W. Bush on oil. And he just said, I don't want to tax the oil companies, because we need to reinvest in alternatives. That's what the Democratic proposal is, a windfall profits tax. Anything over 50 bucks a barrel, we're going to tax. And, then, we are going to take that money and plow it into alternative fuels to make ourselves energy independent.
In order to break the dependency, you have to take on the pusher. And the pusher here is ExxonMobil and the rest of the big oil companies. Who will stand up to the big oil companies could be a defining issue in the '06 election.
BLITZER: I don't think the American public, though needs a lot of pushing. They are anxious for these...
BEGALA: They're there.
BLITZER: ... big SUVs, anxious...
WATTS: But, Wolf...
BLITZER: ... anxious for all this.
But, listen. I want you to respond, J.C. in connection with Democratic Senator Chuck Schumer of New York. What he said is: "High gas prices are going to be the final nail in the GOP coffin this year."
WATTS: Well, I beg to differ with Mr. Schumer -- again, 18 straight quarters of economic growth, five million new jobs over the last two years. We have had oil prices go up in the last month. And now we're saying, everything is falling to pieces? That...
BLITZER: But the American public are...
WATTS: But ...
BLITZER: ... isn't buying that. Let me just show you...
WATTS: Well, but I'm saying the American public, I mean, that's -- again, Wolf, that has just been...
BLITZER: The perception.
WATTS: That's just -- right, the perception has just been in the last three or four weeks. We can't ignore the last two-and-a-half years.
BLITZER: Here's the -- more from this poll that came out, this on a day, on a day when the U.S. economy grew at an amazing 4.8 percent, the strongest growth in two-and-a-half years.
Look at these numbers. The economy, in the next 12 months, is it going to get better? Only 17 percent feel it will get better. Will it get worse? Forty-four percent, almost half, feel it will get worse. And 36 percent say it will stay the same.
That's an enormous challenge, J.C., for the president.
(CROSSTALK)
WATTS: But, Wolf, 17 percent saying that it will get better, that's an accurate number.
BLITZER: That's a small number.
WATTS: It can't get a whole lot better. I mean, I think 17 percent of the people are saying, how much better can it get?
We grew at 4.8 percent. Again, Wolf, those numbers, I think, are being defined by fuel prices, through the prism of fuel prices. Now, I understand the trepidation, the anxiety of the American people. But, you know, we talk about the big oil companies. Consider this.
Let's say we're going to take the small oil companies over to ANWR and let them do the exploration over there...
BLITZER: In Alaska.
WATTS: ... in Alaska. People would -- the Democrats would still be opposed to that.
BLITZER: All right.
WATTS: The president would be supportive. Let's take the small oil companies over there and let them drill.
(LAUGHTER)
WATTS: That gives us more supply.
BLITZER: Go ahead.
BEGALA: Well, the way to do it is not to go take the last wilderness left in -- in -- in America and turn it over to the small oil company.
I have never met a small oil company, J.C.
(CROSSTALK)
BEGALA: Well, I guess Bush's was small, because he was...
(CROSSTALK)
WATTS: You got a whole lot -- you got a whole lot of them in Oklahoma. BEGALA: George W. Bush ran a small oil company, because he ran it into the ground.
But the notion...
(LAUGHTER)
BEGALA: First of all, it's 15 years before we would ever get anything out of Alaska, even if we started drilling today.
Second, it's only a couple of weeks' supply anyway, a couple of months' supply, if we were to tap into it. What the president needs to do is take on the big oil companies, take on Detroit, raise average fuel economy in cars. It would save way more on fuel than all the oil in Alaska could ever get.
BLITZER: That's not a short-term fix either. That's a long...
BEGALA: No. The short-term fix that Democrats have is to -- is to rebate the gas tax, which would...
BLITZER: All right.
BEGALA: ... take 18 cents off the price of a gallon of gas...
(CROSSTALK)
BEGALA: ... which is a better than a poke in the eye with a sharp stick, which is what Mr. Bush...
(CROSSTALK)
WATTS: Wolf, let me say this in closing.
All of those things, Paul, alternative fuels -- alternative fuels, conservation efforts, that was in the energy bill. There was a comprehensive energy plan that most of the Democrats were opposed to. There was exploration in ANWR.
BLITZER: All right.
WATTS: They were opposed to that. So, how can...
(CROSSTALK)
WATTS: ... you say that things will get better...
BLITZER: All right, guys...
(CROSSTALK)
BEGALA: Billions in subsidies for Exxon and Mobil, whose CEO, by the way, looks like a stand-in for the bad guy on "Austin Powers," fat guy. I can't use the phrase his name is in the movie.
(LAUGHTER) BEGALA: But, on top of the bad optics, he walked away with $600 million. We're giving him and his company our tax breaks? I think it is nuts, J.C.
(CROSSTALK)
WATTS: But you know what?
(CROSSTALK)
WATTS: ... shareholders...
(CROSSTALK)
WATTS: ... board, hold them -- hold them responsible for that...
BLITZER: We got to...
WATTS: ... not the president.
BLITZER: We got to leave it right there.
Good discussion, J.C. and Paul.
BLITZER: I think it was $400 million, but $400 million, $600 million, what's the difference?
BEGALA: It is chump change, yes.
(LAUGHTER)
WATTS: It is more than we make.
(LAUGHTER)
BLITZER: Thanks.
BEGALA: Not me. I got the 400...
BLITZER: Thanks to Paul and J.C., part of the best political team on television -- CNN, America's campaign headquarters.
Coming up, a battle on Capitol Hill over what is called emergency spending. But get this. What constitutes an emergency? The way some lawmakers would answer that question may surprise you -- I'm sure it will -- and may even leave you outraged. I'm sure it will.
And stand by for my one-on-one interview with the actor, the director George Clooney. He's passionate about the crisis in the Darfur region of Sudan and about politics here at home. That's coming up in our next hour.
You're in THE SITUATION ROOM.
(COMMERCIAL BREAK) BLITZER: President Bush today renewed a threat to veto an emergency spending bill now before the Senate, unless members cut out some added programs and scale back its cost. Fiscal conservatives won a small but symbolic victory last night, killing funding for a seafood promotion program. Does that sound like an emergency program?
CNN's Joe Johns has been looking into all of this. He's joining us live here in Washington -- Joe.
JOE JOHNS, CNN CAPITOL HILL CORRESPONDENT: Wolf, it's a surprisingly bitter battle in the Senate over earmarks, those often expensive special projects that get tucked into spending bills, adding on to federal costs.
Senator Tom Coburn of Oklahoma, who has been waging war on earmarks since he was a member of the House, was back on center stage again this week, aggravating many of his colleagues.
(BEGIN VIDEOTAPE)
JOHNS (voice-over): Keep an eye on your wallet. The Senate has got some special projects it wants billions for, and it wants your money.
It started as a $92 billion emergency request from the president to pay for the war and for Hurricane Katrina. But then it hit the U.S. Senate and senators packed on hundreds of millions more, an extra $14 billion, to be exact.
SEN. TOM COBURN (R), OKLAHOMA: Nobody would run their household this way. No business runs this way. This is a gimmick, under which we can disguise how much we put this country in debt.
JOHNS: So, what is an emergency, and what isn't? Politicians have stretched, twisted, even mangled the definition of emergency, just to show folks back home they can still deliver the goods in an election year. But Senator Tom Coburn of Oklahoma is having none of it. In fact, he tried to shame his colleagues by spelling out the official definition of emergency.
COBURN: Unforeseen, unpredictable and unanticipated.
JOHNS: And what counts as an emergency in this bill?
STEVE ELLIS, TAXPAYERS FOR COMMON SENSE: There's money in there to help New England shell fishermen with their red toxic red tide outbreak last year.
JOHNS (on camera): What does that have to do with Katrina?
ELLIS: Absolutely nothing.
JOHNS (voice-over): Keeping them honest, we decided to tack a closer look at a few of the items on the bill that stretched the definition of emergency spending. Take the whopping proposed payout for the fishing industry in the Gulf states. The president asked Congress for about $21 million, but the Senate decided that wasn't quite enough. So, it tacked on about $1 billion more.
Alabama Republican Richard Shelby stuffed a lot of the fishing money in, and he's not apologizing.
SEN. RICHARD SHELBY (R), ALABAMA: Well, we make decisions up here, you know, irrespective of who's at the White House. And I think this has a lot of merit.
JOHNS: The fact is, when you roll up costly pet projects in the protective wrap of emergency spending, it doesn't usually get sharp scrutiny. And that's a huge temptation to members of Congress -- example, $3.9 billion for farmers and ranchers, including $12.5 million for drought assistance, even money for owners of flooded crops and grazing lands in North Dakota, not exactly in the hurricane's path.
(on camera): How did they get in there?
SEN. JOHN MCCAIN (R), ARIZONA: That's why we need reform. Nobody knows. At least, I don't know. That's why we need earmark reform.
(END VIDEOTAPE)
JOHNS: And, Wolf, as you said, the White House has threatened to veto if the bill is not carved down to more acceptable numbers. But, if the president's allies in the Senate intend to toe the line, they do seem to be taking their time -- Wolf.
BLITZER: Joe, this is the kind of stuff that makes a lot of people really angry. Thanks for bringing it to us.
And you can catch Joe Johns, part of the best political team in television, weeknights on "ANDERSON COOPER 360." That program airs 10:00 p.m. Eastern.
The passion that once fueled Bill Clinton's goal in politics is now geared towards philanthropy. One of the former president's biggest causes is fighting AIDS around the world. Today, he headlined a meeting in New York City entitled "A Global Summit: The End of AIDS."
The event was moderated by CNN's own senior medical correspondent, Dr. Sanjay Gupta.
Among other things, the former president explained why AIDS testing is so important.
(BEGIN VIDEO CLIP)
WILLIAM J. CLINTON, FORMER PRESIDENT OF THE UNITED STATES: Ninety percent of the people who have this infection do not know it. That means we have to test more people.
Now, we -- I have always been against mandatory testing, thinking it would run people away, because of the existence of stigma. And, in the '80s, there was no medicine.
In every society where you can prove to people you're fighting the stigma and they will live, I think there should be more testing. Lesotho, Malawi, Botswana, and Brazil have the most aggressive testing programs. They're not mandatory, but, like in the Lesotho case, they're opt-out. If you are 12 years or older, they are going to bring you in this year and say: You don't have to do this, but we think you should. You will not be discriminated against, and you will live.
(END VIDEO CLIP)
BLITZER: And we're going to have much more in the global summit in our weekend special. Please watch "CNN PRESENTS: The End of AIDS, a Global Summit" with the former President Bill Clinton and our own Sanjay Gupta. It airs Saturday and Sunday night, 8:00 p.m. Eastern, only here on CNN.
Up next, should Congress stop funding for the Bush administration's controversial domestic spying program until it gets some answers? Or would the move backfire? Jack Cafferty weighing in with your e-mail.
And a new version of the National Anthem is striking a chord of disharmony -- why some of saying it is out of tune with America. That's coming up in our next hour -- all that right here in THE SITUATION ROOM.
(COMMERCIAL BREAK)
BLITZER: Zain is joining us once again from the CNN Newsroom here in Washington with a closer look at some other stories -- Zain.
VERJEE: Wolf, relatives of the 12 miners who died in the West Virginia Sago Mine disaster want lawmakers to upgrade mine safety and communication equipment.
The January explosion's sole survivor, Randy McCloy, says, in a letter to his colleagues' family, that four of the miners' air packs failed to work. Investigators say they tested the devices and they would have functioned properly, if activated. The Bush administration is reviewing mine safety standards, including air packs and emergency equipment used by the nation's 42,000 miners.
NASA is trying to get a closer look at how clouds can affect the Earth's weather and climate. A Boeing Delta II rocket lifted off early today -- on board, the CloudSat and CALIPSO satellites. Once in orbit, there will -- they will track the Earth's atmosphere. CloudSat and CALIPSO can also view clouds in 3-D. Scientists hope that will help them better understand climate and air-quality changes.
New Orleans is marking a milestone. These are some live pictures you are looking at -- the 36th annual New Orleans Jazz and Heritage Festival well under way there. It's the city's first Jazz Fest since Hurricane Katrina. Thousands of people are expected to attend Jazz Fest this weekend and next. Bob Dylan is performing this afternoon. Local icon Dr. John takes -- Dr. John takes the stage after that. Other performers include Bruce Springsteen and Paul Simon.
Wolf, my English is coming along there.
BLITZER: No, you're doing well.
(LAUGHTER)
BLITZER: You're just excited that you're moving from Atlanta to Washington.
(LAUGHTER)
VERJEE: That must be it.
BLITZER: Jack Cafferty, I got to tell you, a lot of excitement here in Washington -- word spreading Zain is going to be living in Washington.
(LAUGHTER)
BLITZER: And the buzz is really circulating.
CAFFERTY: Yes.
And those are American singers that are going to be down in New Orleans.
(LAUGHTER)
(CROSSTALK)
VERJEE: Jack, when are you moving here?
CAFFERTY: When pigs fly upside down.
(LAUGHTER)
CAFFERTY: Senate Judiciary Committee Chairman Arlen Specter, a Republican, says he's considering a bill that will cut off funding for the NSA program to eavesdrop on Americans without a court order. That's until he gets answers from the White House. He says he isn't getting any cooperation. The question is, should Congress block funding for the NSA domestic wiretapping program unless they are kept fully informed?
David writes from Oviedo, Florida: "Congress should absolutely withhold funding. The power of the purse is one of the tools the founding fathers gave the Congress to help check the power of the executive branch. It's a tool that needs to be used judiciously, but it's time it came out of the tool belt."
Ruby in Chattanooga, Tennessee: "Funding should definitely be held for -- withheld for domestic spying. I have written to both my senators about this. There is outrage out here. I wish Senator Specter luck. If he gets the same answer from his cohorts that I did, it will be a form letter that has absolutely nothing to do with domestic spying."
Stacy in Fayetteville, Arkansas: "The Republican-led Congress has been neglecting its oversight duties for years. Congress should block funding for this program and reassert their congressional oversight role that they swore an oath to carry out."
Jack in Indiana: "Whether the wiretapping is funded for not is not the question. What will Congress do with the information they get? They ignore the important stuff and dwell on the trivial things."
And Frank in Miami: "I don't know about you, Jack, but I would be scared as hell to be fully informed on this."
This weekend, on "IN THE MONEY," General Motors, great story -- they developed a technology that will go a long way toward getting us off the addiction to foreign oil. You may not even be aware of it, but you could be driving a car right now that can burn up to 85 percent ethanol, and you don't have to do anything but put the thing in the tank, just like you do now. The engine adjusts automatically.
And we will handicap the midterm elections, tell you who is likely to win and why. "IN THE MONEY" airs Saturday at 1:00, Sunday at 3:00. We invite you to join us.
That includes you, Ms. Verjee, in Washington.
BLITZER: And don't forget, Jack...
VERJEE: Oh.
(LAUGHTER)
BLITZER: ... it's 1:00 and 3:00 p.m. Eastern.
VERJEE: Oh.
BLITZER: Remember, on the West Coast, it airs a little bit different time.
CAFFERTY: That's right, Wolf.
BLITZER: Zain is too busy. She is on the phone right now.
(LAUGHTER)
BLITZER: Thanks, Jack. We will speak to you shortly.
Still to come, who says a meeting between the president and reporters has to be completely serious? President Bush showed a little bit of humor at today's Rose Garden news conference. And it was all because of two little words. We're going to bring you what the president said. That's coming up. And the actor George Clooney takes another role, human rights activist. I'm talking with him next hour about his recent mission to Darfur. That's right here in THE SITUATION ROOM.
(COMMERCIAL BREAK)
BLITZER: Here's a look at some of the "Hot Shots" coming in with our friends at the Associated Press, pictures likely to be in your newspapers tomorrow.
To East Timor first: protesters armed with sticks and burning van during a protest turned violent outside the prime minister's office.
In Austria: Check this out, avalanche. A schoolteacher and five children were buried in the snow. They were all rescued alive.
Tanzania, where at least 400 dead dolphins washed up on the shore. It was immediately clear what killed them.
And at Sotheby's in New York, Frida Kahlo on display -- her famous painting, "Roots," is up for auction and is expected to bring in over $5 million.
Some of today's "Hot Shots," pictures often worth 1,000 words, and sometimes worth a lot of money as well.
In West Virginia today, Congressman Alan Mollohan actually is welcoming reports that the FBI is planning to subpoena several nonprofit groups he has helped with federal funding. Mollohan is predicting he will be vindicated in the flap that forced him to step down as the ranking Democrat on the House Ethics Committee.
Our congressional correspondent Andrea Koppel has the latest -- Andrea.
ANDREA KOPPEL, CNN CONGRESSIONAL CORRESPONDENT: Wolf, CNN has confirmed, according to a government official who is familiar with this investigation, that, earlier this week, the FBI contacted several nonprofit organizations in West Virginia with ties to Congressman Mollohan, that they were going to be subpoenaed for documents.
Now, these groups were created and have been largely funded thanks to federal money that had been directed to them by Congressman Mollohan, who not only sits on the Ethics Committee, where he actually just stepped down from recently as the top Democrat, temporarily. He also sits on the Appropriations Committee.
Now, according to people we have spoken to, it appears this investigation was prompted thanks to a nine-month investigation that was done by a conservative watchdog group known as the National Legal and Policy Center, which investigated Congressman Mollohan's personal finances.
Now, CNN has made two unsuccessful events (sic) to speak to Congressman Mollohan and conduct an interview ourselves. Congressman Mollohan has, until now, said that he feels these accusations are politically motivated. He's in a tight race to win reelection in the 1st District of West Virginia.
But, according to a statement he made on April the 7th, he said -- quote -- "Since taking office in January 1983, my top priority has been to help my congressional district in every way possible. I am proud of the nonprofit groups that have been established to address needs which exist in Northern West Virginia. These groups were not created to benefit me in any way, and they never have" -- Wolf.
BLITZER: Politics of this case are interesting. What do you think?
KOPPEL: Well, Wolf, as you know, Republicans actually have been seizing upon the Mollohan case, in addition to another case in Louisiana, as proof positive that it's not just Republicans who are perhaps corrupt.
As you know, the Jack Abramoff scandal has cast a shadow over the Republicans. And the Democrat leaders, in fact, have been pounding away at the culture of corruption, hoping to make inroads in the November midterm elections. But some analysts say that, now that Congressman Mollohan's case is in the news, this could actually backfire.
(BEGIN VIDEO CLIP)
STUART ROTHENBERG, POLITICAL ANALYST: When you have Congressman Mollohan in the newspapers, on TV, as a -- as someone who ethics issues to answer, that only helps the Republicans dilute the Democratic message.
(END VIDEO CLIP)
KOPPEL: Remember, last Friday, Congressman Mollohan stepped down temporarily as the top Democrat on the House Ethics Committee, Wolf, he says only until he has an opportunity to clear his name.
BLITZER: Thank you, Andrea, for that.
President Bush has been getting out, talking to journalists a little bit more in recent weeks. But that doesn't always go exactly as he might like. Today, the president called on a reporter and suddenly got a sense of deja vu.
Listen to this.
(BEGIN VIDEO CLIP)
BUSH: Let's see. Mark Smith?
QUESTION: Another one?
BUSH: Oh, you already asked one?
QUESTION: One of my colleagues.
BUSH: Did you ask one? QUESTION: Yes, sir.
BUSH: Oh, you did ask one.
QUESTION: It was a memorable question.
(CROSSTALK)
BUSH: Well, it wasn't a very profound question, to begin with.
(LAUGHTER)
(CROSSTALK)
QUESTION: Can I follow up on the energy question, Mr. President?
BUSH: No, you can't, because I just embarrassed myself by calling on Smith twice.
(LAUGHTER)
BUSH: That's right. It was that profound -- it was that brilliant question. I -- how could I forget?
(END VIDEO CLIP)
BLITZER: Mark should have asked another question.
And what was a U.S. congressman from New York doing at a Friday night frat party outside his district?
Our Abbi Tatton is standing by with some photos circulating online -- Abbi.
TATTON: Wolf, Republican John Sweeney at an Alpha Delta Phi frat party last weekend, first reported in this Union College student newspaper.
Last Friday, Congressman Sweeney ate dinner at Geppetto's, an Italian restaurant in Schenectady, New York. Owner Paul Licorat (ph) told us, the congressman dined on stromboli and drank half-a-glass of wine.
Some time after midnight, Licorat tells us he took the congressman across the street to this frat party to meet students. One of the students e-mailed us these photos here. Alcohol is not visible anywhere.
In response to reports that the congressman appeared intoxicated, a Sweeney spokeswoman told us "he did not have a drink at the party and is taking medication that may make his face look puffy" -- Wolf.
BLITZER: Thank you for that, Abbi.
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