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The Situation Room

Raid on Congressman's Office Decried by Lawmakers from Both Parties; President Bush Holds First Meeting With Israeli Prime Minister Ehud Olmert; Theft of Veteran Affairs Information Said to be Random; Senators Lash Out Over High Gas Prices; Senator Chris Dodd Exploring Run For White House; Lloyd Bentsen Dead At Age 85; Bill Bennett Discusses New Book

Aired May 23, 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, a new chapter, and new challenges for the United States and Israel. It is 4:00 p.m. here in Washington where President Bush is holding his first meeting with Israel's new prime minister. It is going on right now. Are they likely to make any new strides in the Middle East peace process and what about Iran's nuclear program? We're going to hear from the president and the prime minister live. That's coming up.

Also ahead, separation anxiety on Capitol Hill. Both Republicans and Democrats worry that a Justice Department raid on a colleague's office crossed the Constitutional line. It is never happened before. We're following the corruption probe of Congressman William Jefferson and the odd alliance it is creating on Capitol Hill.

And senator Hillary Clinton is calling for an energy revolution. Would her plan ease prices at the pump and will it provide new fuel for her presidential prospects? I'm Wolf Blitzer. You're in THE SITUATION ROOM.

At the White House right now President Bush and the Israeli Prime Minister Ehud Olmert are sizing up one another and their plans for dealing with the Palestinians and the Iranians. Their hopes for the future are complicated now that the radical group Hamas dominates the Palestinian government. We'll have a live report in a moment. That's coming up from the White House.

First, though, a surprising source of unity on Capitol Hill. The weekend raid of Congressman William Jefferson's office, Republican and Democratic leaders are on the same page today, warning that the search may have violated the Constitutional separation of powers. Let's begin our coverage with our congressional correspondent Dana Bash. A huge uproar on this issue, Dana.

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: That's right. You would think that Republicans in an election year where they're getting pummeled by Democrats on the issue of the culture of corruption, that they would be at least quietly rejoicing in the fact that a Democratic congressman was found allegedly with $90,000 cash in his freezer.

But actually what we have been hearing since yesterday from Republicans is outrage, specifically about the fact that this FBI raid done over the weekend was conducted in the congressman's office here on Capitol Hill. Dennis Hastert, the House speaker, has been very vocal on this, released a statement yesterday. Today he told us he took his concerns to the president.

(BEGIN VIDEO CLIP)

REP. DENNIS HASTERT (D-IL), HOUSE SPEAKER: There are discussions going on at this time. We want to make sure we take care of the Constitutional priorities of the House. We'll continue to work on that. At the same time, we understand that they want to support and pursue the process that the Justice Department is trying to pursue. There are ways to do it. My opinion is that they took the wrong path, they need to back up and we need to go from there.

(END VIDEO CLIP)

BASH: So there you heard the speaker saying that he's concerned that there was a breach, a Constitutional breach, in the separation of powers. Justice officials, White House officials, have been in constant discussions since yesterday about the Congressman and really all the lawmakers concerns about this issue. The attorney general said today he is working with members of Congress to alleviate their concerns.

But he also really pushed back on this issue and he essentially said he respectfully disagrees with the idea that the FBI did anything wrong.

(BEGIN VIDEO CLIP)

ALBERTO GONZALES, ATTORNEY GENERAL: It is true it has never been done before. The reason it has never been done before is not because there has never been corruption in the Congress, unfortunately, as there has been corruption in the judiciary branch and corruption in the executive branch unfortunately.

But the reason it has never been done before it because we have before been able to reach an accommodation to reach an agreement, to receive the evidence that we need to prosecute wrongdoing through a subpoena. And for a variety of reasons, that could not occur here.

(END VIDEO CLIP)

BASH: Wolf, we talked yesterday about all the plots and subplots of this issue. One that is emerging today is the way the Democrats, specifically the Democratic leaders, are handling this issue. They too are concerned about what they think might be a Constitutional breach in the raid here on Capitol Hill. But they are actually distancing themselves from the congressman in general.

They're very upset with what he is alleged to have done. And when you talk to Democratic leaders, when they have been asked even today about the reaction to this, they're very careful, both the Senate Democratic Leader Harry Reid and the House Leader Nancy Pelosi said no one is above the law. When people commit crimes, they need to be prosecuted. Doesn't take a lot to read between the lines on that, Wolf.

BLITZER: Clearly, the Bush administration on the edge of trying to break some new ground when it comes to the separation of powers, trying to expand the power of the executive. Dana, thank you very much. We'll have a lot more on this story coming up in our "Strategy Session."

Also, I'll speak with the Senate Majority Leader Bill Frist live about the raid on Jefferson's office. Other hot issues including immigration reform, Senator Frist will be my guest live here in THE SITUATION ROOM. That's coming up in the next hour.

In the House today, an overwhelming vote to further choke off U.S. aid to the Hamas-controlled Palestinian Authority. Backers say it is needed to block funds from flowing to the militant group deemed a terrorist organization by the U.S. government. But the White House, which already has cut off aid to the Hamas-led government, calls the bill unneeded and overreaching.

The Hamas problem clearly on the agenda right now as President Bush holds his first meeting with the new Israeli Prime Minister Ehud Olmert. That meeting is going on at the White House. Let's go to the White House, correspondent Suzanne Malveaux has the latest.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: As you know, a very busy day for Ehud Olmert. Here at the White House, about 30 minutes ago he arrived at the West Wing. We should be seeing both leaders in 60 minute or so in the East Room.

There are really two words to summarize this day, low expectations. White House officials say that this is really a chance for the two leaders to get to know one another, to sit down, to discuss their views, that we're not expecting any major announcements. But, of course, a lot of important issue on the table.

One of them is Olmert's plan to pull out Israeli settlers out of the West Bank, essentially to build a wall to keep out suicide bombers and to establish a final border for the Palestinian state without negotiations.

This is something that Olmert believes is necessary because he says that he does not believe Palestinian Authority leader Mahmoud Abbas, since Hamas took over the government, really has the authority or even the will to move on with negotiations. This was Ehud Olmert Sunday on "LATE EDITION."

(BEGIN VIDEO CLIP)

EHUD OLMERT, ISRAELI PRIME MINISTER: What are we going to do? Wait until the Palestinians will change? How long? One year, two year, three years, five years, ten years? And in the meantime, what? More terror, more innocent people killed, more victims, more blood, more suffering, more pain.

(END VIDEO CLIP)

MALVEAUX: Of course, Wolf, what President Bush is hoping to do this administration is really to prop up Mahmoud Abbas and convince Ehud Olmert he is a partner in peace, somebody that can actually get something done and is at least at the very least useful to talk to.

This is all a part of moving forward, the road map, the two state solution that the president has been talking about and pushing for the last four years and, Wolf, as you mentioned, before another very important issue on the table is nuclear ambitions of Iran.

Again, Ehud Olmert really wants to hear some reassurances from this administration in light of Iranian President Mahmoud Abbas' threat he wants to wipe Israel off the map. Tony Snow, the press secretary saying earlier today that if Iran attacks Israel, the U.S. will come to Israel's aid -- Wolf.

BLITZER: Suzanne, thank you very much. We'll go back to the White House live once that news conference starts. President Bush, Prime Minister Olmert scheduled to speak to reporters right at the top of the hour. We'll bring it to you live here in THE SITUATION ROOM. We'll find out if they have similar assessment on when Iran might be capable of developing a nuclear bomb.

New developments today in a troubling story of stolen personal data. A government source tells CNN the records of more than 26 million veterans were stolen on May 3rd. The source says authorities didn't alert the general public until yesterday, nearly three weeks later. Some members of Congress say the time lapse is unacceptable and simply outrageous. But the Attorney General Alberto Gonzales says his department acted as quickly as it could.

(BEGIN VIDEO CLIP)

GONZALES: As soon as we were notified of the problem, we immediately sprang into action. As soon as I was advised by Secretary Nicholson, I called the FBI director and directed that we put whatever resources was necessary to address this issue.

SEN. NORM COLEMAN (R), MINNESOTA: Typically you want to put people on notice very, very quickly. So give it a day, give it two days, give it seven days. God created the whole Earth and the world in seven days. That's a period of time. But three weeks, I find it very difficult to understand why the red flags and the horns weren't raised and sounded a lot earlier.

(END VIDEO CLIP)

BLITZER: The government source says a laptop and external drive with the veterans' personal data were stolen in what appeared to be a random burglary from the Maryland suburban home of a Veteran's Affairs analyst. The source says the government did not immediately announce the loss because officials had hoped to catch the thieves and didn't want to tip them off. We'll have a full report from our chief national correspondent, John King. That's coming up 7:00 p.m. Eastern right here in THE SITUATION ROOM.

The president's choice to be in the new CIA direction now is closer to confirmation. Within the last hour, the Senate Intelligence Committee approved the nomination of General Michael Hayden. The vote was 12-13 -- excuse me, 12-3. The three who voted against Hayden were senators Feingold, Wyden and Bayh, all Democrats. A full Senate vote is expected before the Memorial Day recess. Some senators say they're still concerned about Hayden's Pentagon ties and his role to the National Security Agency, spying program.

Let's go up to New York, Jack Cafferty is standing by with "The Cafferty File." Hi again, Jack.

JACK CAFFERTY, CNN ANCHOR: Hello, Wolf. Well the Democrats had this planned for the midterm elections. They were going make Republican corruption the national issue in the midterms. Plenty to work with on this subject. The indictment of former House Majority Leader Tom DeLay. You've got the guilty plea of the lobbyist Jack Abramoff, the imprisonment of Randy Duke Cunningham, the corrupt congressman from California.

But all of the sudden the Democratic House leaders want their colleagues to go home over Memorial Day and talk instead about high gasoline prices and veterans benefits. Skip the culture of corruption.

Why you ask? Well it turns out the Democrats have their own ethics problems. The FBI found 90 grand in this congressman's freezer, William Jefferson. And they claim to have him on videotape taking a payoff from an informant. Whoops. Then there is Alan Mollohan, the congressman from West Virginia, he resigned weeks ago. He was the top Democrat on the House Ethics Committee. Apparently he wasn't being so ethical. So much for the culture of corruption for the Democrats agendas for the midterm.

Here is the question, how will the case of Congressman William Jefferson affect the Democrats in the midterm elections? E-mail your thoughts to CaffertyFile@CNN.com or go to CNN.com/CaffertyFile -- Wolf.

BLITZER: Thanks, Jack. Good question. And if you want a preview of Jack's questions each day, you want to get a little look ahead, what is going to be up here in THE SITUATION ROOM, easy to do so. Sign up for our daily e-mail alert. Go CNN.com/SITUATIONROOM.

Coming up next, gas price frustrations. Lawmakers feeling the heat from voters over high gas prices and they're lashing out at a top government official over gouging. That story, that's coming up. Plus, add a new name to the race for the White House. We're going to tell you who it is and if this new name has a chance.

And later, much more on the political storm over the FBI's raid on Congressman Jefferson's office on Capitol Hill. I'll speak with Donna Brazile and J.C. Watts, our political analysts, about the battle over the branches. Stay with us. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Welcome back. New political fireworks today over high gas prices. Senator Hillary Clinton is calling for a virtual revolution, in her words, in America's approach to energy. And her Senate colleagues from both parties today lashed out at the oil industry during a hearing to investigate possible price gouging. Let's bring in our senior national correspondent John Roberts, who's watching the story. Hi, John.

JOHN ROBERTS, CNN SR. NATIONAL CORRESPONDENT: Good afternoon to you, Wolf. By now it's a familiar story, gas prices spike in the wake of a crisis. In this case, Hurricane Katrina. Consumers fume about it. Politicians scream, the government investigates price gouging by the oil industry for six months and finds nothing.

(BEGIN VIDEOTAPE)

ROBERTS (voice-over): It would usually end there but not in this election year.

SEN. BARBARA BOXER (D), CALIFORNIA: I'm very disappointed in this report. I think it is a whitewash.

SEN. TRENT LOTT (R), MISSISSIPPI: There is something real fishy here.

ROBERTS: The chairwoman of the Federal Trade Commission was pummeled today by senators feeling the heat from angry voters, moved close to tears by charges she could care less about consumers.

DEBORAH MAJORAS, CHAIRMAN, FTC: But if you have any doubt whatsoever about my caring and my empathy and my background of working class, for the people of America, then I would like to spend -- suggest you spend some time with me Because nobody who works with me doubts that for one second.

ROBERTS: But there was no sympathy for a commission that critics charged has allowed the oil industry to consolidate to the point there is no incentive to compete.

MARK COOPER, CONSUMER FEDERATION OF AMERICA: So the FTC allowed the industry to get into this state and now they don't have to do anything technically illegal to rip the consumer off.

ROBERTS: The oil companies say the price of gas simply reflects supply and demand. But critics say the industry keeps a tight leash on supply through refining capacity. And it's no surprise they say that there hasn't been a new refinery built in 20 years.

TYSON SLOCUM, PUBLIC CITIZEN: When you do not add more capacity by building new refineries to keep up with rising demand, you're going to create tighter supply situations. And when you have tighter supply situations, you have greater ability to increase prices to consumers.

ROBERTS: Of course the high cost of gas does give politicians a convenient focal point for outrage. In a presidential style speech, Hillary Clinton today unveiled an energy plan.

SEN. HILLARY CLINTON (D), NEW YORK: Our present system of energy is weakening our national security, hurting our pocketbooks, violating our common values, and threatening our children's future.

ROBERTS: The Republican National Committee meanwhile rolled out a new Internet ad taking aim at Democrats for wanting high gas prices. And if you want to know just how much is at stake, listen to the warning Senator Trent Lott sent to the oil companies today.

LOTT: I don't want to do something crazy. I voted against every regulatory effort in this area for 30 years. But the American people are agitated about this. And there better be some restraint shown or the consequences are not going to be pretty.

(END VIDEOTAPE)

ROBERTS: That something is already in the works. Republican Senator Ted Stevens says he's drafting a federal law to ban price gouging. Right now there isn't one, only laws against collusion to drive up prices. But the problem that Stevens is facing is how to give that law teeth -- Wolf.

BLITZER: You know, it's one thing when a liberal Democrat rails against the oil industry. But when you have Trent Lott, a conservative Republican, making that direct threat, that's big.

ROBERTS: Yes, it is. It is stunning. But it shows how much of an election year issue gas prices are going to be. And according to Republicans I talked to, it is clouding everything about the economy. So any good news about the economy is just getting lost in all the noise about gas prices.

BLITZER: John, thank you very much. John Roberts -- and as you saw earlier, Suzanne Malveaux and Dana Bash, part of the best political team on television. CNN, America's campaign headquarters.

Would Americans be better or worse off at the pump if Democrats were in power? A new online tool is pushing the politics of the pump. Our Internet reporter Jacki Schechner is joining with us more. Jacki?

JACKI SCHECHNER, CNN INTERNET REPORTER: Wolf, according to AAA, if I get in my 2000 Acura Integra, I drive from New York to Los Angeles across country, it's going to run me about $300. And that's in the current Republican administration.

Well, according to a new GOP campaign online, they say that would be much worse if the Democrats were in power. They sent out an e-mail to some 10 million people steering them to this Web site, this new ad, and a new online calculator. Now all of their calculations are based on what they say the Democrats would have done if they had gained power or what they would do if they retake the Congress.

But all of their calculations are based on legislation from 1993, not current legislation. Another thing to note about their calculator, it's not particularly accurate because basically their base cost of a trip is much higher than what we came out with for the same amount of mileage. They say it defaults to a round trip instead of a one-way, but there's no indication of that on their actual site, Wolf.

We spoke to the DNC today, just want to let you know. They say it's a "pathetic" attempt to distort the facts and they point out that President Bush's price increase, it has been 97 percent in regular gasoline since his first inauguration.

BLITZER: Jackie, thank you very much.

Up next, New Orleans bracing for another hurricane. No, it is not real, but a crucial test with hurricane season only a few days away.

And at the top of the hour, President Bush and the Israeli Prime Minister Ehud Olmert. They answer questions. We're standing by for live coverage. Stick around. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Zain Verjee is off today, Betty Nguyen standing by to give us some other important news making headlines.

Hi, Betty.

BETTY NGUYEN, CNN ANCHOR: Hi there, Wolf.

Car bombs, roadside bombs, even a motorcycle rigged with a bomb -- today in Iraq 30 people are dead after a rash of attacks involving explosives. Now, in one incident, a motorcycle rigged with a bomb went off near a food stand in northern Baghdad. In another, a car bomb detonated in a crowded market in Sadr City.

Now to Afghanistan -- 16 civilians were killed yesterday and President Hamid Karzai wants to know how. President Karzai is ordering an investigation into reports that terrorists, while battling coalition forces, used those civilians as human shields.

In the air strike, U.S. and coalition forces targeted a Taliban stronghold. While President Karzai says he's concerned about the strike, he calls the alleged use of civilians as human shields "acts of cowardice."

Well, today in court, Lee Boyd Malvo described D.C. sniper John Allen Muhammad as a father figure. Muhammad is on trial in Maryland for the 2002 sniper shootings that left 10 dead in and around the Washington area.

Today Malvo said the man who still calls him son wanted to carry out six sniper shootings every day for 30 days, then bomb schools and children's hospitals. The men have already been convicted in Virginia for shootings there.

Now to Louisiana. A Category 3 storm, evacuees fleeing for safety, elected officials making crucial decisions over how to respond. It was not a real storm, but a phony one called Hurricane Alicia.

It was all part of a practice drill to test how well-prepared Louisiana is prepared for another hurricane. Louisiana Governor Kathleen Blanco says she believes her state is ready for another storm. The hurricane season begins June 1st, so you'd better get ready.

Well, early to rise and then later to bed. ABC news anchor Charlie Gibson will soon become the sole anchor of "World News Tonight." He'll replace current anchors Elizabeth Vargas, who will step down for maternity leave, and Bob Woodruff, still recovering from wounds suffered in Iraq in January. Gibson will take over the program on Monday. Now, he's also going to anchor "Good Morning America" until June 30th.

And, Wolf, you know, I thought you were the hardest working man in television.

BLITZER: That's not as hard as three hours here every day.

NGUYEN: Exactly.

BLITZER: Half hour is hard, but not as hard as what I do.

NGUYEN: Six days a week.

BLITZER: Thanks.

NGUYEN: I knew I would get you with that one.

BLITZER: Thank you very much, Betty, for that.

Congratulations to my good friend Charlie. We wish him only the best over at ABC news.

Up next, is there a Democrat out there who can give Hillary Clinton a run for her money, and -- if and when she runs for the president. We'll tell you who is testing the waters right now. A new name has just come in.

And the corruption probe of Congressman William Jefferson, how is it playing into election year strategies of Republicans and Democrats in Congress? Donna Brazile and J.C. Watts, our analysts, they're standing by for our "Strategy Session." Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back to THE SITUATION ROOM. I'm Wolf Blitzer in Washington.

The field of possible presidential contenders in 2008 is more crowded today. Democratic Senator Chris Dodd of Connecticut is making his intention to run clear. But how might he fare against one of his party's biggest stars, namely Hillary Clinton?

Our Mary Snow is standing by with more on the race for the White House -- Mary.

MARY SNOW, CNN CORRESPONDENT: Well, Wolf, right now, 12 Democrats are regarded as potential presidential candidates, with Senator Christopher Dodd the latest to add his name to the list.

(BEGIN VIDEOTAPE)

SNOW (voice-over): Democratic Senator Christopher Dodd of Connecticut says he's exploring a run for the White House in 2008 because of the deep divisions among political leaders.

SEN. CHRISTOPHER DODD (D), CONNECTICUT: Most people, regardless of party and ideology, are greatly worried about where the country is going, both at home and abroad.

SNOW: The five-term senator flirted with the idea back in 2004, and joins a growing pool of Democratic potentials.

(BEGIN VIDEO CLIP)

JAMES CARVILLE, CNN POLITICAL ANALYST: A lot of Democrats are saying, you know, I should have gone in '04, and, yes, I'm not going to -- I'm not going to sit this out.

(END VIDEO CLIP)

SNOW: It is not just about sitting it out, but also elbowing out Senator Hillary Clinton, who is considered the Democratic front- runner, even though she has not said she will run for president.

Poll numbers and money, of which she has about $20 million in cash right now, puts her at the head of the pack.

LARRY SABATO, DIRECTOR, UNIVERSITY OF VIRGINIA CENTER FOR POLITICS: For the most part, it is going to turn out to be Hillary vs. the anti-Hillarys.

SNOW: Being anti-Hillary, say political observers, can mean different things.

SABATO: It could be somebody from the middle of the spectrum, like former Governor Mark Warner or Senator Evan Bayh. It is possible to be anti-Hillary and come from the left, as Senator Russ Feingold from Wisconsin may do.

SNOW: Also in that potential category on the left, say observers, former Senator John Edwards. Edwards ran for vice president in 2004 and is considering a run for the White House. In a recent interview with "New York 1," he said, "There's a need for Democrats to define themselves on conviction."

JOHN EDWARDS (D), FORMER U.S. SENATOR: We have had enough of sort of the politics of incrementalism and trying to be close to the Republican Party.

SNOW: Senator John Kerry has over $14 million in cash, most of it left over from his failed 2004 run for president. If he decides to run again, he can use most of that money for his campaign.

Other potential candidates include Senator Joseph Biden of Delaware, former Senate Majority Leader Tom Daschle, New Mexico Governor Bill Richardson, Governor Tom Vilsack of Iowa, and former NATO commander General Wesley Clark, who also ran in 2004.

(END VIDEOTAPE)

SNOW: And then there is always the wild card, such as the speculation about whether former Vice President Al Gore may try to run again -- Wolf.

BLITZER: It's going to be fun for all of us covering politics, Mary. Thank you very much.

And we will have more coming up on the race for 2008, the presidential contest.

First, though, our "Strategy Session," including in the subject of the raid on Congressman William Jefferson's office. It has got both sides of Capitol Hill crying foul. Why are some Republicans speaking out so strongly against this raid? Does this hurt the Democrats' attempt to make corruption a key part of the November elections?

Joining us here in THE SITUATION ROOM, our CNN political analysts, Democratic strategist Donna Brazile, and former Republican Congressman J.C. Watts.

J.C., I will start with you.

The speaker, the Republican speaker of the House, Dennis Hastert, says this of the raid on Congressman Jefferson's office: "The actions of the Justice Department in seeking and executing this warrant raise important Constitutional issues that go well beyond the specifics of this case. The Justice Department has never found it necessary to do what it did Saturday night, crossing this separation of powers line, in order to successfully prosecute corruption by members of Congress."

Not just Hastert, but Senator Frist, a lot of Republicans, and plenty of Democrats, think this Justice Department, the Bush Justice Department, went too far in going into a congressman's office, despite the allegations of corruption.

J.C. WATTS, CNN POLITICAL ANALYST: Well, Wolf, and I agree with that.

And the speaker went on to say this. He said, nothing I have learned in the last 48 hours leads me to believe that there was any necessity to change the precedent established in over the last 219 years. They had never done this. And he said, in over 200 years, I have never seen this happen.

So, I think that it presents some real cases for the prosecutors.

BLITZER: What the other side will argue, the Justice Department, Alberto Gonzales and others, is that no member of Congress should be above the law.

WATTS: Well, I agree with that. But what could they -- by doing that, what did they do on Saturday night that they could not have done, in terms of subpoena power, in terms of whatever evidence they think they might have had?

BLITZER: Well, they had subpoenaed him, but he wasn't responding.

WATTS: Well, nevertheless, Wolf, I still think there is a very thin line in the executive branch of the United States government trying to intimidate the legislative branch, which is an equal branch of government.

That's what that precedence was, to say, let's not use intimidation; let's not violate the law. And, as the speaker said, pretty thin ice there.

BLITZER: The Democratic leader, Nancy Pelosi, in the House, has that problem. But she also has another problem, a political problem, as a result of the allegations against Congressman Jefferson.

Listen to how she came out and described what she sees going on. Listen to this.

(BEGIN VIDEO CLIP)

REP. NANCY PELOSI (D-CA), MINORITY LEADER: Mr. Jefferson's service in Congress is a matter between him and his constituents. Every member of Congress, no one is appointed here. Everyone is elected by their constituents. And it is between him and his constituents.

(END VIDEO CLIP)

BLITZER: Should Nancy Pelosi, Donna, call on Congressman Jefferson to resign?

DONNA BRAZILE, CNN POLITICAL ANALYST: She has already called on the Ethics Committee to investigate Congressman Jefferson.

Look, Congressman Jefferson, like Congressman Ney and others right now that is facing some ethical cloud, they're innocent until proven guilty.

It is a sad moment for Congressman Jefferson. I know him personally. I have known him since I was a young girl in the Louisiana legislature as an intern. It saddened me to see his family go through this. At the same time, if these allegations are true, clearly, the congressman will have to make some tough decisions, including stepping down, or perhaps face a larger-than-unusual lineup of challenges back home in Louisiana.

BLITZER: Let me shift gears, Donna, with you for a moment and talk about presidential -- the presidential race. Take a look at the cash on hand for various Democratic potential candidates: Senator Clinton with $20 million; Senator Kerry, $17 million, mostly left over from the last campaign; Chris Dodd, who effectively threw his hat into the possible presidential waters today, $2 million.

What is your assessment right now? Is it Hillary vs. someone else for the Democratic nomination? Or is this wide open?

BRAZILE: It is totally wide open on both sides, both the Republican and the Democratic side.

Look, the Democratic activists will have a shopping spree this next couple of months. Chris Dodd is an asset to the party, former chair of the party. He's excited. I talked to him last night. I haven't talked to an excited presidential candidate in a long time.

He's ready to get out there. I don't think he's tossing his hat in the ring. He's actually running. And this is going to be an interesting contest.

BLITZER: There was a front-page story in "The New York Times" today -- I assume you saw it -- about the marriage, the relationship between Bill and Hillary Clinton. All of us remember what happened when he was president, the Monica Lewinsky scandal.

Lanny Davis, who was his special counsel, quoted in the article as saying this: "The conventional wisdom is that the relationship might hurt her, all those old memories and scandals will be evoked. But I'm betting -- and maybe this is wishful thinking -- that that's not correct."

What do you think, J.C.?

WATTS: Well, Wolf, it didn't help -- I mean, it didn't hurt President Clinton. You know, he got -- got elected, and he got reelected.

And, so, you know, I think Senator Clinton, you know, this is kind of like a preseason football poll. She comes out rated number one. John McCain is going to be rated number one on our side. And they're going to have to withstand all the bullets and all of the darts that's going to be thrown their way in trying to knock them off their perch.

But I do think that Senator Clinton is the person to be on the Democrat side. I think Bill -- I like Bill -- I personally like Bill Richardson. I think Evan Bayh, as we said last night, I think would be very credible candidate. But I do think Hillary Clinton is the person to beat.

BLITZER: You read that story in "The New York Times" today.

BRAZILE: Yes.

BLITZER: What did you think, Donna?

BRAZILE: Well, to the extent that Mrs. Clinton considers running, he is an asset. Look, he can help her raise money. He can help her campaign across the country. He's a perfect surrogate in any capacity. So, I see him as an asset. Look, voters are going to look at Mrs. Clinton's record in office. They're going to look at her vision for the country and whether or not she can pull the American people together. So, I think this is her race to lose, if she decides to get in.

WATTS: But, see, I think that -- I think, if she's the nominee, I think that is the thing that hurts her, because the country is saying, we are divided, supposedly. Who can bring us together? I don't think that Hillary Clinton is the person that the nation looks to bring together...

(CROSSTALK)

BLITZER: We have still got a long time before we have to reach those decisions.

Donna Brazile and J.C. Watts, thanks to both of you.

They're part of the best political team on television -- CNN, America's campaign headquarters.

Coming up, Governor Arnold Schwarzenegger back on the front line in the immigration wars. We are going to tell you what he's saying today and what the U.S. Senate is doing right now.

And the final vote is tonight for fans of "American Idol." Will turnout be better for the show than on Election Day in November? Our new poll -- yes, we have a new poll -- it may surprise you.

Stay with us. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Today, members of both political parties are sharing fond memories of former Senator and Clinton Treasury Secretary Lloyd Bentsen. He died today in his home in Houston at the age of 85. He had two strokes since 1998 and other health problems.

Many Americans may remember Bentsen best for a line he delivered as the Democratic vice presidential nominee in 1988. He was debating Vice President Dan Quayle when he delivered this famous putdown.

(BEGIN VIDEO CLIP)

LLOYD BENTSEN (D), VICE PRESIDENTIAL NOMINEE: Senator, I served with Jack Kennedy. I knew Jack Kennedy. Jack Kennedy was a friend of mine. Senator, you're no Jack Kennedy.

(CHEERING AND APPLAUSE)

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BLITZER: That comment was stinging.

His former leagues remember Bentsen as a kind and gentle statesman.

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BRIT HUME, MODERATOR: ... that moment came, what would be the first steps that you would take...

SEN. HARRY REID (D-NV), MINORITY LEADER: It is a sad day.

There is no one that better represented the Senate than Lloyd Bentsen. He looked like a senator. He carried himself so well. And he acted like a senator. And he legislated like a senator.

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BLITZER: Lloyd Bentsen, a very good man. He is being remembered right now.

In the Senate, a fragile compromise on immigration reform still is holding. Members today rejected an amendment to allow all illegal immigrants to stay in the United States and apply for citizenship of -- instead of just two-thirds.

A vote on the overall Senate immigration bill could come as soon as tomorrow. Immigration is a major focus of the Mexican president, Vicente Fox's, visit to the United States. Just a short while ago, he arrived in Utah, a state that is divided on immigration issues. He's also scheduled to visit Washington state, as well as California.

In California, Governor Arnold Schwarzenegger today addressed 1,200 new American citizens at a naturalization ceremony. He spoke of his own pride on the day he became a United States citizen. The Republican governor has raised concerns about President Bush's immigration reform proposals, specifically his plan to send 6,000 or so National Guard troops to the border.

On our "Political Radar" this Tuesday, four cities now are in the running to host the Republican National Convention in 2008, Cleveland, New York, Minneapolis and Tampa. The bids will now be evaluated by the party's site selection committee. Finalists will be announced July 1. And a final decision will be made early next year.

They spent only one term in office, but Jimmy Carter and Walter Mondale have now set a record for a former president and vice president. It's been 25 years and 123 days since they left office in January 1981. That's a day longer than any other president and vice president have lived after leaving office. John Adams and Thomas Jefferson were the only others to survive more than 25 years of retirement.

And this important programming note: The former President Jimmy Carter is my guest tomorrow, right here in THE SITUATION ROOM.

Tonight is the night fans will choose the next "American Idol." The voter turnout is likely to be huge. But will it be bigger than on Election Day? In our new CNN poll, just 5 percent of Americans said they were all but certain to vote for an "American Idol" tonight. Forty-three percent said they were virtually certain to vote in congressional elections in November. We will see.

Up next, our own Bill Bennett tells us why America is the last best hope. He will join us to talk about his brand-new book and its message about patriotism.

And, in our next hour, tough questions for the Senate majority leader, Bill Frist, on a raid of a congressman's office, immigration reform, gay marriage.

Stay with us. You're in THE SITUATION ROOM.

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BLITZER: What Bill Bennett once did for promoting values and virtues, he's now trying to do to promote patriotism. The CNN contributor and former education secretary has a new book out. It's entitled "America: The Last Best Hope."

He's joining us live here in THE SITUATION ROOM.

Bill, congratulations on the book. Thanks very much for coming in.

BILL BENNETT, CNN CONTRIBUTOR: Informed patriotism, thoughtful patriotism.

BLITZER: Well, you know, because you tell, you know, warts and all.

BENNETT: That's right.

BLITZER: You say America is the last best hope, but, sure, there have been plenty of mistakes, plenty of problems in our history.

BENNETT: Moynihan says -- and I quote Daniel Patrick Moynihan -- "Am I embarrassed to speak for a less than perfect democracy? No, I'm not. Find me a better one.'

Have we committed atrocities? Yes, we have. Our people find out about them by reading the newspaper and by watching television. But we have this incredible capacity for self-renewal, for making things better. There is plenty of negative on the record. But, overall, the American achievement is unique.

BLITZER: What would the founding fathers say if they saw FBI agents from the Justice Department, from the executive branch of the U.S. government, going into a member of Congress' office and raiding that office and looking for evidence? What do you think they would say, the founding fathers?

BENNETT: I don't think they would feel they needed to rewrite the Constitution. I don't get the constitutional argument here. What is the constitutional argument?

It was a judge, you know -- that is another branch of government -- that signed a warrant. I mean, this wasn't just a bunch of FBI guys running off on their own. A warrant was signed to go get this evidence, so that it wouldn't be destroyed or hidden, because...

BLITZER: It has never happened before in our history.

BENNETT: Because there's a -- well, hopefully, we haven't had that many cases of congressmen putting stacks of money in the freezer.

BLITZER: But that was at his home, though, not in his office on the Hill.

BENNETT: Yes, well, I understand. Well, I mean, if you use your evidence to hide evidence in a federal crime -- I mean, you can't use the executive office to hide it either.

BLITZER: But the Republican leadership, Senator Frist, Speaker Hastert -- it's not only Nancy Pelosi.

(CROSSTALK)

BLITZER: They're outraged at what they see as a violation of the separation of powers, which you talk about extensively in the book.

BENNETT: But what is the violation? What is the constitutional violation?

Look, go through it analytically. If they're saying that the FBI doing this is a violation of separation of powers, that means any time a member of Congress is being pursued under federal law, the federal officers all work for the executive branch. So, the executive branch officers can't intrude on their -- on their homes or their offices if it looks like they're hiding evidence of a crime?

If -- take -- change the facts. If Chandra Levy -- remember that situation.

BLITZER: Chandra Levy.

BENNETT: Chandra Levy, with the congressman, if there was some evidence in his home or his office, could the Feds have gone after it? I certainly think so.

I mean, this is one of these things where the American people are going to say: Wait a minute. If they have reasonable cause to go after me in my office or my home, federal officers, why shouldn't they be able to go after Congress? I just want to see where it says this in the Constitution.

BLITZER: All right.

BENNETT: The Constitution our guys wrote I don't think said anything about this.

BLITZER: Senator Frist is coming up. We will ask him...

BENNETT: Ask him.

BLITZER: ... in the next hour. BENNETT: Unreasonable searches and seizures, that's the language.

BLITZER: Let me read to you from the book "America: The Last Best Hope."

BENNETT: Yes.

BLITZER: "I believe that our conviction about American greatness and purpose is not as strong today. Newspaper columns and television reports are full of cynicism. Many express doubts about American motives on the world stage. Some Americans seem ready to believe the worst about our leaders and our country."

BENNETT: Right.

BLITZER: Just explain what you mean by that.

BENNETT: Well, there is a lot of cynicism.

I mean, we see it in a lot of people's attitudes. We wee it in polls. The Pew Foundation did a poll that just came out you might have reported on about American exceptionalism. They say we are really disliked around the world now because of who we are.

Well, I understand. People have -- are jealous of us. We exercise this enormous power. We have this incredible influence. You know, if you want to see something change in the world, you know, the United States is likely to be the agent of change. It's not the U.N. that will make things happen. It will be U.S. So, one expects a certain degree of envy and bias.

And, again, we have done some things that we are not proud of. But, overall, it seems to me, if you look at the record, as I say in the book, if you're in some godforsaken place in the world, and you see a group of soldiers coming over a hill and they have got a flag, which flag do you want them to be carrying?

BLITZER: Tell me what...

(CROSSTALK)

BENNETT: It's the American flag.

BLITZER: ... who the reader of this book -- who did you write this book for?

BENNETT: Well, every student, every teacher, I mean, every citizen. I hope it is a graduation or Father's Day gift.

And, look, it is not a political book. People know my views.

BLITZER: It's a history book.

BENNETT: It is a history book. But I think it is written fairly. I didn't airbrush the faults out. It is not a conservative book. It's not a liberal book. It is like "The Book of Virtues" in that regard.

And what I'm saying is that, when you look at the whole record and tell the story -- and it is just one really exciting story. I'm as much opposed to the boredom, the boring down of American history, as I am, you know, the politicization.

It's the most -- the second greatest story ever told, and the greatest political story ever told.

BLITZER: It's entitled "America: The Last Best Hope, Volume 1, From the Age of Discovery to World -- to a World at War."

BENNETT: Yes.

BLITZER: That would be World War I, right?

BENNETT: Right. Yes.

BLITZER: And, so, now we are going to wait for volume two.

BENNETT: Yes. You are going to have me back, another one?

BLITZER: Of course.

BENNETT: OK. Thank you.

(CROSSTALK)

BLITZER: Keep you busy.

BENNETT: Thank you, Wolf.

BLITZER: Bill Bennett, thanks very much. Congratulations.

(CROSSTALK)

BENNETT: Thank you, sir.

BLITZER: And still to come here in THE SITUATION ROOM: The corruption investigation of Congressman William Jefferson, how will it affect Democrats in their battle for control of Congress? Jack Cafferty standing by with your e-mail.

And, in just a moment, we're also going to take you live to the White House, a joint news conference. The president of the United States and the Israeli prime minister, they're standing by.

Stay with us.

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BLITZER: Let's go up to Jack in New York -- Jack. CAFFERTY: Well, the question is: How will the case of Congressman William Jefferson, the guy they found had 90 grand in his freezer, affect the Democrats in the midterm elections?

Greg in Vista, California: "There is not any difference between the Democrats and the Republicans. They both sold out the American people. Both parties are corrupt, and they should be thrown out of politics."

Max in New Milford, Connecticut: "I think the Democrats should immediately demand the resignation of Congressman Jefferson. I am a Democrat, and I believe there should be no double standards on ethics. A zero-tolerance policy is necessary."

Harry writes: "They found $90,000 in Jefferson's freezer. If he was a Republican, they would have found $900,000 in there, the FBI would never have searched his home, and when he eventually got in trouble, he would blame it on the Democrats. It's not that the Democrats are not sometimes corrupt. It's just that they're less corrupt than the Republicans."

Bill in Portland, Maine: "Jack, I think the Democrats can claim the Louisiana exemption. Taking bribes is a longstanding Pelican State tradition. Asked the now jailed Governor Edwards."

Doug in Pikeville, Kentucky, writes: "I doubt this incident will hurt the Democrats in the coming election. It will, however, hurt Mr. Jefferson."

And Bill in Leesburg, Florida: "I believe it shows the Democrats are not ready to join the investment class. Putting 100 grand in a freezer lacks return and draws only the interest of the FBI" -- Wolf.

BLITZER: Jack, thanks very much.

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