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American Morning
State of the Union: The President's Plans; RX Change: Fact Check on Healthcare
Aired January 24, 2007 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: This is not the fight we entered in Iraq, but it is the fight we're in. Our country is pursuing a new strategy in Iraq, and I ask you to give it a chance to work.
(END VIDEO CLIP)
MILES O'BRIEN, CNN ANCHOR: Humble but determined, President Bush asks a Democratic Congress to help achieve his goals.
SOLEDAD O'BRIEN, CNN ANCHOR: This morning, a reality check on those goals -- sending more troops into Iraq, affordable healthcare, and getting Americans to use less gas.
All that and much more ahead on this special edition of AMERICAN MORNING.
Good morning. Welcome, everybody.
It is Wednesday, January 24th.
I'm Soledad O'Brien in New York this morning.
Hey, Miles.
M. O'BRIEN: Good morning, Soledad.
Miles O'Brien on Capitol Hill.
Thanks for joining us on this special early edition of AMERICAN MORNING.
This morning here in Washington they're waking up in a new political era. That fact made crystal clear last night as the president delivered his sixth State of the Union Address before a joining session of Congress.
For the first time ever, a woman sat in the seat reserved for the speaker of the House. And for the first time in the Bush presidency, the president spoke to a Congress controlled by the other party.
A couple of other big issues in play, of course -- a war raging in Iraq and the race to succeed Mr. Bush picking up steam. In fact, as the president looked out to the audience, he saw no less than 10 potential candidates to succeed him.
Later this morning we're going to talk to three of them. Senator Barack Obama, Senator John McCain, Governor Bill Richardson, all our guests all throughout the morning. So stay with us.
We also have, of course, a full slate of the best political reporters standing by for you this morning. The best political team on television, we call them: White House Correspondent Suzanne Malveaux; AMERICAN MORNING'S Bob Franken is in Wilmington, Delaware, where the president will be today; and our Alina Cho and Sean Callebs, all here.
Let's begin with Suzanne Malveaux -- Suzanne.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Miles, of course President Bush is trying to convince the American people he is credible and relevant. And a big question this morning is whether or not the State of the Union agenda really makes any difference at all and whether or not Americans are even still listening.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: The president of the United States.
MALVEAUX (voice over): The president, who used to boast of having political capital to spend, is arguably down to chump change. With his Iraq policy under fire and his domestic agenda now at a screeching halt, this State of the Union was an attempt to salvage both.
BUSH: This is not the fight we entered in Iraq, but it is the fight we're in. Every one of us wishes this war were over and won, yet it would not be like us to leave our promises unkept, our friends abandoned, and our own security at risk.
MALVEAUX: Mr. Bush practically pleaded members of Congress to give him more time for his Iraq strategy to work, which includes sending more Americans into battle. He cleverly used the call to support the troops to get the Democrats, as well as the Republicans, on their feet.
BUSH: We went into this largely united in our assumptions and our convictions. And whatever you voted for, you did not vote for failure. Our country is pursuing a new strategy in Iraq, and I ask you to give it a chance to work. And I ask you to support our troops in the field and those on their way.
(APPLAUSE)
MALVEAUX: But with House Speaker Nancy Pelosi, third in line to the presidency, standing over Mr. Bush's shoulder, the president did recognize the political landscape had changed.
BUSH: Tonight I have the high privilege and distinct honor of my own as the first president to begin the State of the Union message with these words: Madame Speaker. (APPLAUSE)
BUSH: On the domestic side, the president is also trying to prove he is still relevant and able to get things done at home. Mr. Bush pitched new initiatives regarding healthcare, energy, and the environment, which received mixed reviews from the Democrats. But his immigration reform plan got a better reception from them than from the Republicans.
(END VIDEOTAPE)
MALVEAUX: And Miles, of course President Bush is going to try to sell his agenda to the American people, taking it on the road. Later today he's going to travel to Wilmington, Delaware. He's going to be visiting a research development facility, DuPont, to promote his energy initiatives -- Miles.
M. O'BRIEN: Suzanne Malveaux near the White House.
Thank you very much.
Of course, as the president goes out to sell his agenda, the big discussion remains in this country about the war in Iraq. The president still dominating his speech on the subject of Iraq, saying we must not fail in that country, and almost pleading with Congress to give his new plan, a surge of in excess of 21,000 troops, a chance.
AMERICAN MORNING'S Sean Callebs has some reaction to that.
Good morning, Sean.
SEAN CALLEBS, CNN CORRESPONDENT: Good morning, Miles.
The president just less than two weeks ago delivered a major address on his plan for Iraq, but still, heading into the State of the Union, Congress and the American public knew it would be one of the cornerstones of his speech. Well, critics said -- actually, his supporters said that he looked very reassured and confident up there; however, the critics say he's unbending and they heard nothing knew.
(BEGIN VIDEOTAPE)
CALLEBS (voice over): President Bush's plans for 21,000 more troops in Iraq, a surge in forces there, is being met with congressional skepticism. And some leaders vowing to block efforts to bolster troops. No longer addressing a GOP majority, Mr. Bush told members on both sides of the aisle that he needs their help.
BUSH: Our country is pursuing a new strategy in Iraq, and I ask you to give it a chance to work. And I ask you to support our troops in the field and those on their way.
BRIG. GEN. JAMES MARKS, U.S. ARMY (RET.): The president would be very wise to stick his hubris aside and very humbly reach out to Congress and say, look, this is our fight. Irrespective of how we got here, this is where we are today. I need your help. CALLEBS: Critics say while Congress may not be ready to sign off on Iraq, it's not ready to accept failure there either.
STEPHEN BIDDLE, COUNCIL ON FOREIGN RELATIONS: The president is taking a real long-shot gamble on Iraq and this policy, and it's a long-shot gamble that the public and the Congress don't want to face.
CALLEBS: The president acknowledged the fight in Iraq has morphed from battling Saddam Hussein to a violent sectarian battle between Sunni and Shia loyalists, what many call a civil war.
BUSH: This is not the fight we entered in Iraq, but it is the fight we're in. Every one of us wishes this war were over and won.
CALLEBS: CNN military analyst retired General James "Spider" Marks said the president detailed how Iraq plunged into what he calls "hellish chaos."
MARKS: The president, I think, has done an admirable job raising his hand and saying, I've made some mistakes, we've made some mistakes, and I take ownership of those mistakes. What really has to happen at this point is, what is the best way to accommodate and get through these mistakes?
CALLEBS: But, critics charge, there is always this risk...
BIDDLE: We could end up at the end of the day with a muddled compromised outcome that ends up neither giving us any prospect of meaningful scale of succeeding in Iraq, nor of enabling us to cut our losses.
CALLEBS: An argument the president rejects.
BUSH: It is still within our power to shape the outcome of this battle. Let us find our resolve and turn events toward victory.
(END VIDEOTAPE)
CALLEBS: Well, the president said in his speech last night that he spoke with military commanders and he believes that ramping up the 21,000-plus troops is the best chance to succeed. However, he clearly faces a tough sell. It's not just Democrats who are now ramping up, coming up with resolutions designed to oppose this, Miles, but also members of his own party.
M. O'BRIEN: In his speech, though, a tacit admission that the military is stretched thin, indicating that he's going to increase the ranks.
CALLEBS: Exactly. He talked about bringing 92,000 more soldiers and U.S. Marines. And when I talked to Spider Marks last night, he said he never heard this before. And perhaps maybe it's because Rumsfeld is no longer in the picture, the former defense secretary, who wanted a smaller, mobile armed forces.
M. O'BRIEN: All right. A departure for sure. Thank you, Sean Callebs. We'll see more of you all throughout the morning.
Back to Soledad in New York.
S. O'BRIEN: All right, Miles. Thanks.
Other news that's happening this morning.
Right now there's an intense street battle going on in an insurgent stronghold in Baghdad. U.S. and Iraqi forces, backed by helicopters and jet fighters, are battling militants on Haifa Street. That's just outside the Green Zone.
In Los Angeles, an arrest to tell you about in that spilled mercury case that took place on a subway platform. Armando Moranda (ph) -- that's his picture right there -- he's being held this morning. Police say he is the man that you can see on the subway surveillance tape.
It was obtained exclusively by CNN. And in this videotape he's pouring or spilling mercury. Police say he then called to report the incident. Investigators say they now believe that spill was just an accident.
This morning, a happy ending to a story we've been following for several days. Kimberly Walker and her children between the ages of 16 months and 9 years, well, they're safe today. Jerry White, the children's father, who allegedly kidnapped them at gunpoint last Saturday, is not under arrest.
Police found the family in an Elkhart, Indiana, motel. A friend of Walker's who was shot during the kidnapping remains in critical condition today.
In Mississippi, State Farm Insurance is agreeing to a multimillion-dollar settlement of Katrina lawsuits. State Farm is going to pay at least $50 million to 35,000 policy holders. A federal judge has got to approve the deal. Policy holders could then start getting some of their money within 60 days or so.
Testimony will pick up again this morning in the Scooter Libby trial. His attorney contends that Libby was the fall guy for the White House, scapegoated to protect Karl Rove. Libby faces five felony charges from a federal investigation into the leak of a CIA agent's name to the media -- Miles.
M. O'BRIEN: Thanks very much, Soledad.
Back here on Capitol Hill, the State of the Union Address was the president's first in front of a Democratic-controlled Congress, and the first ever in history that there was a Madame Speaker sitting over his shoulder.
Congressional Correspondent Andrea Koppel is here with reaction on the Hill. A lot of symbolism in every State of the Union Address. This one in particular.
ANDREA KOPPEL, CNN CONGRESSIONAL CORRESPONDENT: Absolutely. As you said, the sight of seeing Nancy Pelosi rather than Dennis Hastert over the president's shoulder spoke volumes.
And it wasn't just the symbolism of seeing Ms. Pelosi there, but it was also the limited applause that you heard in the audience. The fact that in previous -- at least the five previous State of the Unions -- many more Republicans in the audience this time around, there were fewer Democrats, sat there in many instances just with their stony faces.
The fact of the matter is, the president did make an effort to reach across the aisle. He had kind words at the start of the speech about Ms. Pelosi's father. He also said that he wasn't the first president to come with uncertainty in the air and a divided government.
Nevertheless, when it comes to the issue of Iraq, the very issue that President Bush has staked his legacy on, you could see that he did not change any minds.
(BEGIN VIDEO CLIP)
SEN. JIM WEBB (D), VIRGINIA: The majority of the nation no longer supports the way this war is being fought. Nor does the majority of our military. Nor does the majority of Congress.
We need a new direction. Not one step back from the war against international terrorism, not a precipitous withdrawal that ignores the possibility of further chaos, but an immediate shift towards strong, regionally-based diplomacy, a policy that takes our soldiers off the streets of Iraq's cities, and a formula that will in short order allow our combat forces to leave Iraq.
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
SEN. LINDSEY GRAHAM (R), SOUTH CAROLINA: He asked the country to give this new strategy a chance. He believes in it, General Petraeus believes in it. And I think we would be well served to give it a chance. To condemn it as a failure before it's even implemented would be a mistake.
So, he talked about a lot of things, but at the end of the day, we were only listening about Iraq.
(END VIDEO CLIP)
KOPPEL: Now, the first legislative pushback is going to come later today, when the Senate Foreign Relations Committee is going to vote on a non-binding resolution that's been offered up by a couple of Democrats, but also a couple of key Republicans, Chuck Hagel and Olympia Snowe of Maine, Miles. And in this they're going to say that they oppose the president's escalation sending over 20,000 U.S. troops to Iraq.
M. O'BRIEN: Add to that Senator John Warner, leading Republican, very well versed in military matters, breaking ranks with the president on the surge.
Is there a full-scale Republican revolt under way on Capitol Hill right now?
KOPPEL: No. No. Not yet.
I mean, there are significant breaks, as you said, John Warner. You also have over in the House, where we are right now, John Boehner, the House majority leader, who I interviewed yesterday, this is a man who's been in virtual lockstep with the White House. There is now daylight there.
He said -- spelled out, basically, that they expect to see in the next 60 to 90 days whether or not the president's escalation is going to work.
M. O'BRIEN: It's not a lot of time.
KOPPEL: No, it is not.
M. O'BRIEN: Andrea Koppel, who covers this place for us.
Good to see you. Thanks for letting me drop by on your turf this morning -- Soledad.
S. O'BRIEN: Thanks, guys.
Coming up this morning, your midweek forecast. Some of the coldest air of the winter is on its way.
Plus, the president's new plan to fix healthcare. Can it really make it more affordable and more accessible? We'll take a look at that.
Then later, the two words the president has not publicly said before: global warming. A closer look ahead.
You're watching AMERICAN MORNING. The most news in the morning is right here on CNN.
(COMMERCIAL BREAK)
S. O'BRIEN: Fifteen minutes past the hour. Let's get right to Chad Myers. He's at the CNN weather center. He's got the traveler's forecast for us.
Hey, Chad. Good morning.
CHAD MYERS, CNN METEOROLOGIST: Good morning, Soledad.
(WEATHER REPORT)
S. O'BRIEN: Let's talk more about the president's State of the Union Address.
The president said he wants to help Americans who don't have health insurance get it. He unveiled a new plan last night.
AMERICAN MORNING'S Alina Cho was literally up all night looking into how that might work.
Good morning.
ALINA CHO, CNN CORRESPONDENT: Pretty darned close, Soledad. Good morning to you.
You know the president says his plan to fix healthcare will be affordable and accessible. But is that really the case? Can it pass a Democratic-controlled Congress? And if it does, who are the winners and who are the losers?
We watched the president's speech last night with a healthcare expert, and together we broke it down point by point.
(BEGIN VIDEOTAPE)
BUSH: And so tonight I propose two new initiatives.
CHO (voice over): President Bush's plan to improve healthcare includes two parts. Part one, a standard tax deduction for health insurance. Here's how it works.
Americans who get health insurance through their jobs -- and that's the majority -- would have to pay taxes on their health benefits. Right now they don't. But the president says Americans would get that money back through tax breaks -- $15,000 for families, $7,500 for individuals.
BUSH: This proposal would mean a substantial tax savings -- $4,500 for a family of four making $60,000 a year.
CHO: Professor Sherry Glied says the problem is that's just five percent of Americans. Glied, who counseled both the first President Bush and President Clinton on healthcare, says the tax break would help some Americans, but not everyone.
PROF. SHERRY GLIED, COLUMBIA UNIVERSITY: Low-income people cannot afford to buy health insurance. Letting them deduct $15,000 off their nonexistent income to buy health insurance isn't going to make it any easier to afford health coverage.
CHO: Part two of the president's plan, something he calls affordable choices grants. The idea, take federal funds that otherwise would be earmarked for public hospitals and use that money instead for health insurance.
BUSH: These grants would give our nation's governors more money and more flexibility to get private health insurance to those most in need.
CHO: Professor Glied says the plan would only benefit states that mandate healthcare coverage. And only a few have such plans. In all other cases, she says, public hospitals would suffer and those left uninsured might not have a place to go for care. Even by the Bush administration's admission, the president's proposal would reduce the number of uninsured Americans by only three million out of the 47 million who currently don't have health insurance.
(on camera): Well, some have said, dead on arrival. Do you think that's true?
GLIED: I think it would be very unlikely that this is going to pass the current Congress.
(END VIDEOTAPE)
CHO: That's with the Democrats in power. Professor Glied says even with a Republican-controlled Congress there would be a real fight over this plan. The president's central argument is that too many Americans have gold standard coverage -- that's what he calls it -- because they're getting those benefits tax free. President Bush hopes if there are tax caps, people will choose more modest coverage.
So the idea, Soledad, is that if you're young, if you're healthy, you may want to shop around for a cheaper plan. Maybe you want to go to ehealthinsurance.com, and you can find a plan for $2,000. So things are good for you.
And the president says -- or the Bush administration says, they hope that this will intensify competition in the insurance marketplace. And ultimately, of course, the result, they hope, is that prices will go down.
S. O'BRIEN: The president's spokesman promised the day before the speech it was going to be bold. Does this proposal fall into that category, a bold, new initiative?
CHO: Well, you know, it's hard to say. We'll see.
You know, there's going to be a real fight over Congress -- in Congress over this. And remember, these are not new initiatives. I mean, the tax deduction was floated in the 1970s.
President Reagan first introduced it in the early '80s. And Hillary Clinton, whose name, as you know, was synonymous with healthcare a decade ago, now she's running for president again. And so you can bet that healthcare will be a big issue as we look ahead to 2008.
S. O'BRIEN: All right. We're expecting that.
CHO: That's right.
S. O'BRIEN: Alina Cho, thank you very much. And speaking of Hillary Clinton, she's one of two senators who are looking to trade up to the White House. Barack Obama, John McCain, two others. We're going to be talking to them live this morning right here on AMERICAN MORNING.
And this man was a guest of the president's last night, the subway superhero. Remember him? We'll talk to him. He's going to join us live on AMERICAN MORNING straight ahead.
Stay with us.
(COMMERCIAL BREAK)
M. O'BRIEN: Welcome back from Washington.
The last two years of any presidency are an interesting time as the man in the Oval Office looks toward his legacy and the contenders line up to succeed him. But this year, with an unpopular war raging, no vice presidential heir apparent, and a Congress controlled by Democrats, it is going to be a time to remember for political pros.
John Mercurio is one of those pros. He is the senior editor of the "National Journal's Hotline." He joins me now.
Good to have you with us, John.
JOHN MERCURIO, SR. EDITOR, "HOTLINE": Good to be here.
M. O'BRIEN: Let's talk about the president's goal last night. Was it about himself, his legacy, or was it about laying the groundwork for Republicans to continue holding the Oval Office in 2008?
MERCURIO: Yes. I mean, I think the extent to which he was able to actually talk about domestic issues, I think that helped remind folks that this was actually a president who came into office trying to sort of advance a very aggressive domestic agenda.
I think he also was trying to project an image of someone who is willing to sort of adapt to the times. He heard the message the voters gave last November. He offered a very nice sort of personal tribute to Nancy Pelosi which was well received. But as we saw, you know, the stark political reality both here, domestically, and in Iraq, is that the war in Iraq will define this president, will define his agenda, and will, I think, to a large extent, determine the success or failure of Republicans in 2008.
M. O'BRIEN: Well, let's talk about that. If you're a Republican sitting in that audience, listening to that speech, what do you take away from it? Do you put some distance between the speech and the president and yourself as you run?
MERCURIO: Yes.
M. O'BRIEN: Or -- you do. In a word, huh? MERCURIO: Absolutely. I think the most unusual situation or dynamic that we could see in 2008 is a -- you know, it's an open field. We know that. There's no incumbent, there's no vice president. And to a large extent, if the situation in Iraq doesn't improve dramatically, you're going to see the Republican nominee running as far away from this president as possible, even if it's someone like John McCain or Mitt Romney or Rudy Giuliani, the three sort of Republican frontrunners who currently support the president's war in Iraq.
I still think you'll see them putting a lot of distance between themselves in the way that the president's handled the war.
M. O'BRIEN: It will be interesting to see how they finesse that, because in the case of John McCain, you do have support for that troop surge, really marching in lockstep at this point.
MERCURIO: Sure. But we've also seen McCain -- he gave a very interesting interview to "The Washington Post" just a couple of weeks ago in which he talked about the support for the surge plan, but also his criticism, his very strong and vivid criticism for the way that the administration's handled the war.
M. O'BRIEN: Let's talk about if you're a Democrat sitting in that audience and you want to be president. Plenty of red meat there?
MERCURIO: Sure. And there were plenty of Democrats in that audience who wanted to -- who want to be president.
M. O'BRIEN: It almost seemed like a majority.
MERCURIO: Yes. There was actually one shot where you could see Hillary Clinton sitting right behind Barack Obama. It was a shot that a lot of people like to look at.
Sure, a lot of red meat in that speech last night. A lot of -- you saw both Hillary Clinton and Barack Obama and John Kerry and Chris Dodd and Joe Biden come out of that speech last night and talk about their criticism, not just of the president's handling, but of the surge plan.
So I think to -- you know, to a large extent, Democrats very happy with the speech as it came out last night politically.
M. O'BRIEN: So the takeaway here is, no matter what the president says at this point, Iraq overshadows in such a way that it will remain the focus of discussion. And really, as far as policy goes, it will be difficult to talk about anything else here in Capitol Hill.
MERCURIO: Absolutely. I mean, that's what I think was the most interesting frustration that this president had last night. He wanted to give a domestic speech. He wanted to be able to project the idea that this was an administration sort of firing on all cylinders. But really, the reality is that unless the situation in Iraq stabilizes over the next six to eight months, there is no domestic agenda over the next two years.
M. O'BRIEN: John Mercurio, thanks for getting up early for us.
MERCURIO: Thank you.
M. O'BRIEN: We do appreciate that.
He's "Hotline's" senior editor, and he always gives good insights for us on politics.
Thanks very much.
Top stories of the morning are coming up next.
President Bush hits the road today to push his ideas. We'll be live from his first stop.
Plus, cash at least in sight for thousands of homeowners struggling to rebuild from Hurricane Katrina. That was a subject we didn't hear anything about last night.
You're watching AMERICAN MORNING. The most news in the morning is right here on CNN.
(COMMERCIAL BREAK)
MILES O'BRIEN, CNN ANCHOR, AMERICAN MORNING: Reaching out, President Bush taking the humble approach in his state of the union address, asking Democrats to work with him.
SOLEDAD O'BRIEN, CNN ANCHOR, AMERICAN MORNING: This morning, a fact check of the president's agenda. We've been up all night looking at the reality of his plan to send more troops to Iraq, his plan to pay for health care, his plan to have Americans cut back on gas. All that and much more on this special edition of AMERICAN MORNING. Welcome back everybody. It's Wednesday, January 24. I'm Soledad O'Brien.
M. O'BRIEN: And I'm Miles O'Brien on Capitol Hill. We thank you for being with us on this special split edition of AMERICAN MORNING, bright and early or dark as early as it is. This morning here in Washington, they're waking up to a whole new political era. The fact was made crystal clear last night as the president delivered his sixth state of the union address before a joint session of Congress. And for the first time ever, a woman sat in the seat reserved for the speaker of the House and for the first time in the Bush presidency, the speaker spoke to a Congress controlled by the other party.
A lot of other big issues at play, a war raging in Iraq and the race to succeed Mr. Bush picking up steam. In fact, as the president looked out to the audience and saw no less than 10 potential candidates. Later this morning, we're going to talk to three of them, Senator Barack Obama, Senator John McCain and Governor Bill Richardson, along with the best political team on television of course. So now that door to door sales job begins for the president. This morning, the president is heading to Wilmington, Delaware, where he will talk about his energy proposals at a Dupont research and development facility. AMERICAN MORNING's Bob Franken is live there with more. Good morning Bob.
BOB FRANKEN, CNN CORRESPONDENT: Good morning, Miles. We wanted to gauge the reactions of the people here in Wilmington, Delaware and where better to go where people would be watching TV than into a sports bar and restaurant. A very popular one here is named Kid Shaleen's (ph) and they switched the TV so the state of the union could be played. And for the most part, the patron were watching very, very seriously.
(BEGIN VIDEOTAPE)
FRANKEN (voice-over): Instead of the usual Tuesday night basketball, the monitors at Kid Shaleen's restaurant and sports bar were tuned not to games, but to the deadly serious business of a president trying to seek common ground with the newly Democratic Congress, a Congress aggressively challenging the new addition of troops to the Iraq war.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Our country is pursuing a new strategy in Iraq and I ask you to give it a chance to work.
FRANKEN: With all the turmoil over Iraq policy, the reaction at least in this place, was surprisingly sympathetic, even among those who would not normally be the president's supporters.
UNIDENTIFIED MALE: I'm encouraged at the positivity (ph) of the president. I am a kind of a give peace a chance generation and I'm - like I say, I evolved in a give peace a chance, but you know what, I think we should probably give success in Iraq a chance.
FRANKEN: This was a diverse group, but those watching had diverse agendas.
UNIDENTIFIED FEMALE: I was wildly disappointed that the rebuilding of New Orleans was not mentioned at all. There's been supposedly (ph) ongoing commitment to it and yet it gets no attention. So how important economic development is in Iraq and there's no urban policy and specifically, there's no policy toward New Orleans.
BUSH: The state of our union is strong. Our cause in the world is right and tonight that cause goes on. God bless.
UNIDENTIFIED MALE: He seems kind of humble tonight, not as forceful in the way that he made his ideas and his viewpoints across and I think he's finally getting the message that the two parties need to work together toward getting it solved.
(END VIDEOTAPE)
FRANKEN: So perhaps the lesson at Kid Shaleen's Miles is that hope springs eternal.
M. O'BRIEN: Bob Franken in Wilmington, thank you very much. Soledad.
S. O'BRIEN: All right Miles, thanks. Now to what Americans (INAUDIBLE) are thinking about the president's speech. CNN Opinion Research Corporation took a poll right after the speech. Our senior political analyst Bill Schneider had a look at those numbers.
(BEGIN VIDEOTAPE)
BILL SCHNEIDER, CNN CORRESPONDENT (voice-over): How did the state of the union speech go over? Forty one percent of those who watched it said their reaction was very positive, sounds pretty good. But that's actually less positive than the response to President Bush's past state of the union speeches. This one was OK, but not a blockbuster. One reason is that this year the audience was less partisan than usual. Usually the audience for a Bush speech is disproportionately Republican. This year it was evenly balanced between Republicans and Democrats. Apparently a lot of Democrats tuned in to see the new Democratic Congress and new House Speaker Nancy Pelosi.
Did viewers believe the speech would lead to more cooperation or more disagreement between President Bush and congressional Democrats? A majority said more cooperation, but only a narrow majority. One speech does not a uniter make. Were viewers persuaded that President Bush would be able to achieve the goals he has set for Iraq? They were split; 51 percent said yes, 46 percent said no. Americans are very skeptical about the president's Iraq policies. The speech does not seem to have done much to dispel that skepticism. Bill Schneider, CNN, Washington.
(END VIDEOTAPE)
M. O'BRIEN: Let's pick up on that point. Overshadowing everything Iraq of course, the president asking the Democratically controlled Congress for support, for this health. AMERICAN MORNING's Sean Callebs here now with a fact check and a response from some critics. Sean, good morning.
SEAN CALLEBS, CNN CORRESPONDENT: Good morning Miles. Indeed, the president gave an important speech on Iraq back on January 10th. Still, the observers we spoke with last night after the state of the union said, no surprise he talked extensively about it again last night. Their words, it's kind of like the elephant in the room and will be a defining issue in his legacy once everything is said and done.
But critics say there (ph) were very little new last night. Once the speech was done, they said if they didn't support more troops in Iraq yesterday, they are not very likely to support more after hearing the state of the union.
(BEGIN VIDEOTAPE) CALLEBS (voice-over): President Bush's plans for 21,000 more troops in Iraq, a surge in forces there, is being met with congressional skepticism and some leaders vowing to block efforts to bolster troops. No longer addressing a GOP majority, Mr. Bush told members on both sides of the aisle that he needs their help.
BUSH: Our country is pursing a new strategy in Iraq and I ask you to give it a chance to work. And I ask you to support our troops in the field and those on their way.
BRIG. GEN. JAMES MARKS, U.S. ARMY (RET): The president was very wise, stick his hubris aside and very humbly reach out to the Congress and say look, this is our fight, irrespective of how we got here. This is where we are today. I need your help.
CALLEBS: Critics say while Congress may not be ready to sign off on Iraq, it's not ready to accept failure there either.
STEPHEN BIDDLE, COUNCIL ON FOREIGN RELATIONS: The president is taking a real long-shot gamble on Iraq in this policy and it's a long- shot gamble that the public and the Congress don't want to take.
CALLEBS: The president acknowledged the fight in Iraq has morphed from battling Saddam Hussein to a violent sectarian battle between Sunni and Shia loyalists, what many call a civil war.
BUSH: This is not the fight we entered in Iraq, but it is a fight we are in. Everyone one of us wishes this war were over and won.
CALLEBS: CNN military analyst, retired General James "Spider" Marks said the president detailed how Iraq plunged into what he calls hellish chaos.
MARKS: The president I think has done an admirable job raising his hand and saying, I've made some mistakes. We've made some mistakes and I take ownership of those mistakes. What really has to happen at this point is what is the best way to accommodate and get through these mistakes.
CALLEBS: But critics charge, there is always this risk.
BIDDLE: We could end up at the end of the day with a muddled compromise outcome that ends up neither giving us any prospect of meaningful scale of succeeding in Iraq, nor of enabling us to cut our losses.
CALLEBS: An argument the president rejects.
BUSH: It is still within our power to shape the outcome of this battle. Let us find our resolve and turn events toward victory.
(END VIDEOTAPE)
CALLEBS: And the observers we spoke with last night also found it interesting that during the speech, the president talked about the war on terror, then segued right into Iraq. Perhaps he's trying to lift public support in Iraq by connecting the war on terror. It is going to be a tough sell on Capitol Hill. Many leaders up here Miles simply say at this point, the public no longer supports the war in Iraq.
M. O'BRIEN: Well, you mentioned it comes just a couple of weeks after that important speech. Was there really anything in there that was significantly new about the war in Iraq?
CALLEBS: Well, a couple of things in talking with "Spider" Marks, one just the detail about how troops will be going in neighborhoods and neighborhood door to door. It sounds like very coordinated fighting, but it also sounds like a gorilla war, so is the public ready for that?
M. O'BRIEN: Is the public ready for U.S. troops holding ground and that's a significant change in strategy. Sean Callebs, thank you very much. Soledad.
S. O'BRIEN: Thanks Miles, other news happening this morning. Right now there's an intense street battle going on in an insurgent stronghold in Baghdad. U.S. and Iraqi forces backed by helicopters and jet fighters are battling militants along Haifa Street. That's just outside the green zone.
In Los Angeles, an arrest in that spilled mercury case on a subway platform. Armando Veranda (ph) is being held this morning. Police say he is a man on this subway surveillance videotape that was obtained exclusively by CNN and you can see in that videotape he's pouring or spilling mercury police say. Police say he then called to report the incident. Investigators now believe the spill was an accident.
This morning a happy ending to a story we've been telling you about. Kimberly Walker and her four children, ages 16 months to nine years old are safe today. They were allegedly kidnapped by the children's father last Saturday. Police found them safe and sound in a motel in Elkhart, Indiana.
Testimony picks up again this morning in the Scooter Libby trial. His attorney contends that Libby was the fall guy at the White House, scapegoated to protect Karl Rove. Libby faces five felony charges from a Federal investigation into the leak of a CIA operative's name to the media. Miles.
M. O'BRIEN: Thank you Soledad. In every state of the union speech, the president and the first lady invite special guests to attend and last night paid tribute to a good Samaritan known around the country as the subway super hero.
(BEGIN VIDEO CLIP)
BUSH: Three weeks ago, Wesley Archery (ph) was waiting in a Harlem subway station with his two little girls when he saw a man fall into the path of a train. With seconds to act, Wesley jumped onto the tracks, pulled the man into the space between the rails and held him as the train passed right above their heads. He insists he's not a hero. He says we got guys and girls overseas dying for us to have our freedoms. We have got to show each other some love. There is something wonderful about a country that produces a brave and humble man like Wesley Archery.
(END VIDEO CLIP)
M. O'BRIEN: We're going to talk to Wesley Archery. Beside him there his two little girls who witnessed that whole amazing incident. They were napping during all that so they weren't too impressed. But we're impressed.
Also, Senators Barack Obama, John McCain, Governor Bill Richardson, a panel of Iraq war vets and we'll check in with talk radio hosts this morning. We're going to see what listeners are saying this morning, see what's on your mind. Soledad.
S. O'BRIEN: All right Miles, thanks. Also coming up this morning, a major victory for thousands of home owners who were hit very hard by hurricane Katrina. We'll tell you what happened there and a closer look at one of the centerpieces of last night's state of the union address, something new for this president, a call for conserving energy. You're watching AMERICAN MORNING. The most news in the morning is right here on CNN.
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S. O'BRIEN: It's about quarter of six in the morning here Eastern time. We're getting a little bit of a jump start on this special edition of AMERICAN MORNING in the wake of the president's state of the union address. Chad Myers is at the CNN weather center, has a look at your travelers' forecast this morning. Hey Chad.
CHAD MYERS, CNN METEOROLOGIST: Good morning Soledad. As you add up all the temperatures across the entire globe for this week, the last week in January, you should get the coldest week for the entire season. It's going to miss it by a little bit, actually next week might actually win that award. We'll see though a major Arctic outbreak comes for the end of the week for us here in the eastern half of the United States. Still some snow today, lake effect snow across Watertown, Syracuse, even Rochester. That shuts off this afternoon, but comes back again tomorrow as the winds come back out of the northwest with a really good clip.
This is going to be a very cold Arctic outbreak for the entire east coast for at least 10 days. That's why the gas prices, natural gas prices, went up across the futures board yesterday. Here's the snow, western New York down into West Virginia, Snowshoe, Seven Springs, all the way up to those ski resorts down there very happy, peak and peak (ph) very happy across western New York as well with natural snow for a change. Rain showers though from Houston to New Orleans, expecting airport delays now in Houston, probably 30 minutes to an hour this afternoon. This rain does not stop and in fact, this rain makes its way all the way over to Florida for tomorrow and into the weekend. There's the cold front. It is bitterly cold, the coldest air of the year so far and many areas, many forecasters around the country are saying this is the coldest air for many years across the east coast for the next 10 days. We'll keep you up to date on that. S. O'BRIEN: In a nutshell, it's really, really cold (INAUDIBLE).
MYERS: It's winter, breaking news.
S. O'BRIEN: No, no, it's really really cold even for winter I think is what you're telling us. Chad, thanks.
The president's pushing Social Security reform, energy reform, health care reform, but there was one domestic issue that was nowhere to be found in the president's state of the union script last night, hurricane Katrina. He made no mention of Katrina, no mention of New Orleans, not even mentioning the Gulf coast in his speech last night. In the Democratic response, Virginia's Senator Jim Webb said that recovery in the Gulf is a priority for his party.
(BEGIN VIDEOTAPE)
SUSAN ROESGEN, CNN CORRESPONDENT (voice-over): This was the beachfront home of Claire and John Tuepker in Long Beach, Mississippi until a 29-foot wall of water from hurricane Katrina swept the home away. But even worse for the Tuepker's, State Farm refused to pay the $350,000 policy.
JOHN TUEPKER, HOMEOWNER: We've been paying premiums for 17 years and to just say, no, we're not going to pay anything. Look at the house. It's gone.
ROESGEN: The Tuepkers argued that State Farm hadn't required them to carry flood insurance and they argued that wind, which was covered by their policy, is what pushed the water that destroyed their home. Thousands of other property owners said the same thing and now facing a class action lawsuit, State Farm has agreed to settle.
JEFF JACKSON, STATE FARM ATTORNEY: This gives us an opportunity to resolve pending litigation and to insure that we can resolve other issues in the state and move forward.
ROESGEN: State Farm has agreed to pay at least $50 million to 35,000 policy holders and the settlement could climb to hundreds of millions of dollars, depending on the amount of the claims. In return, the policy holders agree not to sue State Farm individually. Representing them is prominent trial lawyer Dickie Scruggs, who also lost his house to Katrina.
DICKIE SCRUGGS, POLICYHOLDER ATTORNEY: So many people were looking to us and our legal team to set it right and to give them a fighting chance and I'm so gratified because when you can have a chance to be a hometown hero, it means a lot more to you than almost anything.
ROESGEN: If a Federal judge approves it, policyholders could start getting some of the money in 60 days and the settlement gives hope to thousands of other property owners on the Gulf coast who've lost the fight with their insurance companies but might now have a second chance at getting something back. Susan Roesgen, CNN, Gulfport, Mississippi. (END VIDEOTAPE)
S. O'BRIEN: Coming up this morning, we have live interviews with the biggest news makers, Senator Barack Obama, Senator John McCain and also Americans who listened into the president last night. We're listening in as talk radio hosts are on the air. We'll take a live look from the inside their (ph) studio as your views are aired this morning. Plus CNN's been up all night combing through the president's proposals on health care and global warming and of course Iraq. We'll have results from that reality check on all of those ideas, straight ahead on AMERICAN MORNING, the most news in the morning and today the earliest is right here on AMERICAN MORNING.
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M. O'BRIEN: We're back live Capitol Hill this morning. The president will head to Wilmington, Delaware to drum up support for his plan to reduce U.S. oil consumption. It's not the first time he has made such a call. Last year he said we are addicted to oil, but this, there was an important difference.
(BEGIN VIDEO CLIP)
BUSH: America's on the verge of technological breakthroughs that will enable us to live our lives less dependent on oil. And these technologies will help us be better stewards of the environment and they will help us to confront the serious challenge of global climate change.
(END VIDEO CLIP)
M. O'BRIEN: Significant moment there, that is the first time he has mentioned global warming or climate change in his state of the union address, but many scientists and advocates say his response is inadequate. They say the president's push for alternatives to oil and to increased mileage in U.S. cars will not rein in global warming. They continue their push for mandatory caps on emissions of greenhouse gases industry ide. We'll have more on this later.
Coming up, a look at how the president's speech is playing outside the beltway. We're live inside the radio studio as they're on the air. We'll talk to talk show hosts Steve Mosberg (ph) and Rachael Madow (ph) about what their listeners are saying this morning and you're watching AMERICAN MORNING. The most news in the morning is right here.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
BUSH: This is not the fight we entered in Iraq but it is the fight we're in. Our country is pursuing a new strategy in Iraq and I ask you to give it a chance to work.
(END VIDEO CLIP)
M. O'BRIEN: Humbled but determined, President Bush asks a Democratic Congress to help achieve his goals.
This morning, the first reality check on those goals, sending more troops to Iraq, new steps on health insurance and getting America to use less gas.
S. O'BRIEN: And cash at last, a deal for home owners to finally get hurricane relief. Those stories and much more on this special edition of AMERICAN MORNING. Welcome, everybody. It is Wednesday, January 24th. I'm Soledad O'Brien. Hey, Miles, good morning.
M. O'BRIEN: Good morning Soledad. I'm Miles O'Brien on Capitol Hill. We thank you all for being with us on this AMERICAN MORNING. The president not wasting any time trying to sell his domestic agenda. Today he's heading to Wilmington, Delaware and will talk about his energy proposals. He talked about that. He talked about reforming health insurance in this country, fixing the deficit, but the issue here in Washington, the issue that overshadowed that speech remains of course the war in Iraq. And as a subtext to all of that, the presidential campaign, which is already well under way. A little bit later we're going to talk to three people who would like to succeed the president: Barack Obama, John McCain and Bill Richardson, our guests later this morning.
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