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All Eyes on Midnight; Keeping Us Secure While Shut Down; Protesters Killed in Syria; No Military Death Benefit Paid in Shutdown

Aired April 08, 2011 - 14:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

RANDI KAYE, CNN ANCHOR: So here is where we stand right now.

Today is the final day of the latest stop-gap federal spending bill. Yesterday, the House passed a one-week extension that couples $12 billion in cuts with six months of funding for the Pentagon. Democrats won't accept it. So today, the Senate may actually vote on its own one-week plan if Senate Republicans agree.

The finish line, of course, take a look, right there, way over there, September 30th, the end of fiscal 2011. But that seems a long way of when we are counting down the minutes until a federal government shutdown.

Joining me now with the latest on the showdown, Senior Congressional Correspondent Dana Bash.

Dana, I understand that we're waiting for Senate Democrats to wrap up a meeting. We have a live picture of this press conference that's about to take place. Can you tell us what we might expect?

DANA BASH, CNN SENIOR CONGRESSIONAL CORRESPONDENT: Well, I'm sitting here in the front row, Randi. I'm not sure if you can see me or not, but more importantly, you can see all of the Democrats standing here.

This is a pretty remarkable picture. I don't remember, covering the Congress for years and years, seeing all of the Senate Democrats trying to cram into one room.

It's not a big shocker, why they are trying to do it. It is to show unity.

They are just coming out of the meeting with, again, all of the Senate Democrats, and they're waiting for their leader, the Senate majority leader, to speak. I am told in that meeting, that there was, as you can imagine, a lot of discussion of where to go from now.

These Democrats, many of them, have been pressing their leadership just like the Republicans have heard from their rank and file not to give in too much. So we are expecting the Senate majority leader to come in here very soon.

We also expect them to hit the issue that they have been hitting all day long, which is that they insist that all of the spending numbers have been dealt with and that this is just about women's health. It is a politically potent issue for them, they know, to say that the Republicans want to shutdown the government just because of women's health issues. But as you mentioned before, Republicans, led by the House Speaker, insist it is not that, they had their own meeting just about an hour ago, and they say that there are still spending issues that are on the table -- Randi.

KAYE: And Dana, does it seem to you that the closer we get, actually, to this deadline, that the hotter the rhetoric gets? Does it seem to you the gloves are really coming off at this point?

BASH: It depends what time of day it is, and I actually say that only half kidding, because as we've seen over the past several days, during the day, they are throwing rhetorical grenades at each other across the rotunda here at the Capitol. Democrats, accusing Republicans of not negotiating in good faith, and vice versa. And then they go to the White House at night and the Democratic leader and the House Speaker come out and say that there is progress that's being made.

So it's a very odd dynamic. But I will say that, in talking to sources about how things are going in private, both sides do say that despite the intense, intense pressure, despite the differences over the differences, frankly, that it has been a polite and cordial negotiation going on between the leaders and also their staff.

But look, the bottom line is, they don't have a deal. And here we are with, you know, just hours -- hours to go before the government shuts down. So the question at this point that maybe we'll hear a little bit more from the Senate majority leader here is where they go from here and, in particular, what the Senate is going to do, whether they are going to at least try to pass a measure today that will keep the government open after tonight's midnight deadline -- Randi.

KAYE: And last night, Dana, the president had said that he was certainly not prepared to express what he called wild optimism, but did say that were further along.

Have you heard any word at all there about any more high-level meetings planned with the president, with the vice president, with Harry Reid or John Boehner at the Oval Office?

BASH: So far, not. I wouldn't be surprised if we heard something about that soon.

All morning long, and into the early afternoon, where we are now, what the House Speaker has done and what the Senate majority leader has done is huddled with their own individual caucuses, with their own rank and file, to try to get a sense of what they want the negotiators to do, and also to give them a sense of where the negotiations stand. But I would not be surprised.

I mean, it would be hard to believe that they wouldn't get together at some point this afternoon to try to figure out if they can finally hammer out a deal. And just to sort of underscore -- sorry. I thought I saw Harry Reid coming in. And here he is.

SEN. HARRY REID (D-NV), MAJORITY LEADER: The House leadership, with the Speaker, have a very clear choice to make. And they don't have much time to make that choice.

They can keep their word and significantly cut the federal deficit, or they can shut down America's government over women's access to health care. If that sounds ridiculous, it's because it is ridiculous.

We all know the federal budget is very complex, but the choice here is of simple choice. A lot of cuts in our proposal were tough choices, very difficult to make. The choice though should be very easy.

We use the word "rider" around here a lot lately, and now it is plural, "riders." Let's remember what is really riding on the proposals that we have here.

If the government shuts down over access to, for example, cancer screenings, our fragile economy will really be hurt. Let's remember that in five weeks, the GDP would drop one whole percent, our intelligence and diplomatic efforts around the whole world would be significantly harmed, and in the process our credibility of this great country of ours would be damaged. We have obligations to our allies around the world, and we wouldn't be able to meet those obligations that we have made in many instances.

What if a family has worked and worked in this fragile economy and they finally are able to qualify for a home loan. Eighty percent of them, of course, are government-supported loans. They would stop. They would not be able to get one. And it's not only that person wanting to buy a home, but how about that person who has been trying to sell a home?

Small business won't be able to get the loans that they need, taxpayers won't be able to get the tax refunds that they have earned. A federal government shutdown doesn't mean they lock the doors at the Capitol building in Washington, but it does mean that it has everyday consequences for people throughout America.

It's not only federal employees. Almost a million federal employees are on pins and needles right now because they, just like everybody in America, have trouble making all of their payments on a given month, they may have waited for a few years to buy a new car, they have been planning for a long time to take a vacation.

As Mark Warner pointed out to us today, this shutdown would have a tremendous impact on the state of Virginia. This is Virginia's big weekend. It's the Cherry Blossom Festival. People plan to come here all year. And one of the things they want to do when they come here is to take a walk down the Mall, go to the national art gallery, go to one of the great Smithsonian museums. They won't do that. They're closed at 12:00 tonight. All this to stop women from getting the regular tests and preventive services that they need. Ninety percent of Title X money is for preventive health services. It is against the law that any money be spent on abortion or not. It is against the law. This is all a lost leader they have.

If Speaker Boehner can't sell that to his Republicans in the next few hours, it will be crystal clear to the American people that Democrats were reasonable and Republicans are responsible for shutting down the government.

The issue here is funding local health clinics that provide services like cancer screenings, that save women's lives and save money down the road by catching diseases that are expensive to treat and sometimes too far along to treat. The fact that Republicans have made this about women's health and not about money or anything controversial is really a shame.

Senator Murray.

SEN. PATTY MURRAY (D), WASHINGTON: For months and intensely, for weeks, we have been told by the Republican Caucus and the House members that this debate is about cutting spending. It's about the deficit and it's about the debt.

We heard that. We have come together. We have moved incredibly, difficulty through along a challenge to meet that number, and we did it.

And here we are, hours before a shutdown, when families are worried about paychecks, when people are worried about whether or not their FHA House is closing next Wednesday and it will fall through, whether or not that the contract that they have in place is going to be kept, how they're going to pay their mortgage, and about the deficits. They're being told it's no longer about that, it's about taking away the rights of millions of women in this country to get access to preventive care. It's about an extreme ideologically stronghold on the other side that has said we aren't going to let your family get a paycheck next week, or keep our parks open, or have businesses contracts go, or FHA loans go, because we want to take away a basic privilege for women in this country to basic health care.

We stand here today United as a caucus, across ideological lines, men and women from every region, to say, not on our watch. We agree we need to cut the deficit. Difficult as it has been, we have compromised and compromised, and we are to a number that some of us are going to have to swallow darn hard, knowing the consequences of that.

We understand the debt and deficit and getting our spending in line, but no one in this country should be given the horrendous choice of you will not have a job on Monday unless you give away women's rights in this country. As a caucus we stand together and say no.

REID: Patty and I will take a few questions. QUESTION: (OFF-MIKE) that the vice president got a little exasperated and said, well, fine, let the American people decide this issue. What does that say about the state of negotiations that a man that doesn't often get flustered seemed to be flustered last night?

REID: Well, Joe Biden wasn't flustered, but he was damn mad. And it shows how we have come to such an impasse here.

The numbers have been agreed upon. Last night it was agreed upon.

Now, the president has had a conversation -- at least one conversation with the Speaker. And it shouldn't be over the so-called Title X, and that's what it is, and that's too bad. And that's why Joe got upset.

QUESTION: Mr. Leader, by my count, Democrats and Republicans have held at least five press conferences so far today to blame each other for this impending shutdown. If we're this close to a deadline, shouldn't you be in the room together trying to come to an agreement?

REID: Don't I wish. All we need for them to say is the agreement that we made last night will be fulfilled.

BASH: What do you mean by that, sir? Because we don't know what the agreement you made last night was.

REID: That number -- whoa, everybody. We agreed at $78 billion. I told you earlier, that the number was $78 billion.

QUESTION: (OFF-MIKE)

REID: We are happy (ph) to analyze any deal. But remember, there is no question about the number. Everybody understand that. The number is $78 billion. It was agreed upon last night.

BASH: The Speaker earlier said there is no deal on the number. Is he not telling the truth?

REID: The Speaker has been saying this for a long time. I have the greatest confidence that John Boehner is having a difficult time in his caucus, and I can give him that. But that does not mean that we can't have an agreement when an agreement was reached.

I don't know what happened last night. But as I indicated earlier today, at 4:00 in the morning, I got an e-mail saying, "We've tried, but they backed off of the number they agreed to."

QUESTION: Senator Reid, what is the status of a short-term bill to prevent a shutdown tonight? And when do you expect to bring that?

REID: Well, what we're trying to do now is -- and I've talked to Senator McConnell today, a couple of times. And what we're trying to do is work something out procedurally.

As you know, the Senate floor can be a morass, a labyrinth. And we need to try to work our way through that.

I hope that maybe we'll hear from the House Republican leadership soon that the number that they agreed to last night is done and they have moved off Title X. If that's the case, then we'll have to work through their sending us another bill. But once agreement is made, then we can figure a way to go forward.

If there is not agreement made, then we're going to have a number of competing, continuing resolutions, unanimous consent requests, because, procedurally, at this time, with all the necessities of getting 60 votes and filing cloture and all that, it would be hard to do that. So, I hope that in fact if the Republicans in the House can't agree to what they agreed to, then what we'll have to do is see if we can come up with a unanimous consent request to have votes on very short-term funding measures for the country.

One last question.

QUESTION: Senator Reid, you said something this morning that you were working -- sorry. Back here, behind all these cameras.

You said earlier this morning that you were working on a one-week offering sort of to counter what the House had passed yesterday. And I'm wondering what levels that would be at, and also if that would include a funding for the troops in addition to the one --

(CROSSTALK)

REID: Yes, it would be a date change for a week's funding for the government, and it would take care of the troops.

OK.

My crew back here has said that I should give you a little more information on the $78 billion.

The agreement last night that was made was to maintain the number that we had with the domestic discretionary spending and increase mandatory spending and some defense cuts. That was the agreement made last night. And that got to $78 billion.

QUESTION: Senator, can you clarify what you said in the short term?

REID: In the short term, we have a short-term CR that is just a date change to keep the government functioning. But also, it has taken care of our troops on that same CR.

QUESTION: (OFF-MIKE)

REID: The rest of the fiscal year.

KAYE: All right. And there you have it. We have been listening to Senate Majority Leader Harry Reid basically telling us that they had agreed on a number with the Republicans last night, on exactly how much to cut, but then at 4:00 a.m. he gets this e-mail that says the GOP has backed off, no deal.

Reid said the GOP is looking to shut down the federal government over women's access to health care. He called it ridiculous. He said that the Republicans are pushing to strip federal funding, as you know, from Planned Parenthood.

But we should point out that federal dollars cannot be used for elective abortions. So we just want to make that clear.

But what was interesting, I thought, was he broadened it beyond just women's health. He really painted an awfully grim picture, in fact, of what will happen to the country -- troops not getting paid, government-supported loans will not be available; people won't be able to buy or even sell a house; small businesses wouldn't get loans; the GDP will drop. So there is a lot at stake here, as we have been trying to tell you over the last few days, certainly, as we watch this clock tick down.

We will of course keep an eye on any more press conferences or live events and bring them to you this hour.

Meanwhile, a first-term Democratic president faced with a new Republican Congress. Neither side willing to meet the other's demands for a budget. Yes, we have been here before.

In 1995, President Clinton was in the very same showdown President Obama is in today, and not one, but two government shutdowns resulted.

Our "Sound Effect" is from November 15th of that year, vintage Bill Clinton.

(BEGIN VIDEO CLIP)

WILLIAM JEFFERSON CLINTON, FORMER PRESIDENT OF THE UNITED STATES: This is an exercise of raw, naked power. The Constitution says that Congress should propose, the president should sign or veto. If the president vetoes, then the Congress can override the veto. If they can't override the veto, they should get together and work something out.

That is not what they want to do. What they want to do is to shut the government down until I take their budget.

(END VIDEO CLIP)

KAYE: Apparently, even when we do remember history, we are still doomed to repeat it.

So what do you think about all of this? What do you think about the possible shutdown?

Join the conversation on our blog, CNN.com/Ali. And you can also post on Ali's and my Facebook and Twitter pages. We'll share your comments throughout the show.

(COMMERCIAL BREAK)

KAYE: With our eyes on the clock, there are questions as to what this will mean to our security and to the people who keep us safe. The shutdown may, in one way or another, impact the military, intelligence, and homeland security. Mind you, essential departments and their employees will still remain.

Candace posted this on our blog: "My husband is 'essential,' as well as so many others. He is Homeland Security, so we are affected also. However, regardless of who is essential and who is not, if you are a government employee, you are affected."

So, let's get straight now to our homeland security correspondent, Jeanne Meserve, in Washington.

Jeanne, walk us through who will go and who will stay in this case.

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: Well, Randi, both the Justice Department and the Department of Homeland Security say about 80 percent of their employees will stay on the job if there is a government shutdown, because they are critical to protecting life and property. Now, there will be some who are furloughed at the Justice Department, for instance, of 237 employees who are in senior management and policy positions. All but 30 of them are going to be furloughed.

But let me give you some examples of people who will stay on the job.

At the FBI, about 30,000 of 35,000 employees will be staying on the job, including FBI agents who are involved in ongoing investigations. U.S. attorneys prosecuting criminal activity will still be working, although the Justice Department says there will be some curtailment of work on civil cases. All 116 federal prisons will be open, and the prison staff will be working. The Drug Enforcement Administration says its agents will stay on the job.

Alcohol, Tobacco and Firearms will continue investigating gangs and gun running. Most of its 2,400 agents will be working. Those support personnel and regulatory inspectors will likely be furloughed.

At DHS, the U.S. Coast Guard will continue its missions, as will the U.S. Secret Service. FEMA disaster personnel will be on the job.

Transportation security officers will still be at security checkpoints at the nation's airports. Air Marshals will still be on board flights. In addition, most U.S. Marshals personnel will be working.

One program we know is going to shut down for a bit is E-Verify. That's what employers use electronically to verify the legal status of their employees. It will be shut down as long as the government is, if indeed the government shuts down -- Randi.

KAYE: So, Jeanne, the bottom line, what's the takeaway here? Will there be an impact or an effect on our security, do you think?

MESERVE: Well, I'm sure those support personnel are there for a reason. They provide some of the basics that some of the operational personnel need. So, will there be some sort of ripple effect? I'm absolutely certain that there will. But the people on the frontline will be in position to do their jobs -- Randi.

KAYE: I've gotten so many tweets asking what will be affected, and a lot of people are asking about immigrations services and Customs and Border Patrol. So let's answer those folks.

We understand -- will those be open or closed?

MESERVE: Customs and Border Protection agents and Immigration and Custom Enforcement agencies will indeed be on the job. They will still be doing their jobs during any government shutdown.

KAYE: All right. Jeanne Meserve, thank you for sorting through all of that for us and helping us get a clear vision of what this may look like as the shutdown approaches.

Thank you.

MESERVE: You bet.

KAYE: So, what do you think about a possible shutdown? Join the conversation on our blog, CNN.com/Ali, and we'll continue to share your comments throughout the show.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: If anyone else in the world spent six months on a project after it was due, they would be fired.

(END VIDEO CLIP)

KAYE: So, if the federal government shuts down, it's going to save us all a whole bunch of money, right? Well, not exactly. And why is that? Well, start with the basics.

A million-plus government workers will keep working and presumably get paid eventually. Well, that leaves another 800,000 workers who will be furloughed. But just because they won't be at work doesn't mean that they won't get paid.

Take a look at this.

How much did the last one cost? Well, no one is really sure, but the budget office did a quick and dirty calculation at the time and came up with a figure of roughly $1.4 billion in 1996 dollars. Now, most of that went to furloughed workers who were given back pay for the days that they were off work. And for bean counters, if you aren't producing anything, but still getting paid, then that is actually a direct cost. Now, as for the fallout on the rest of the economy, the contractors who work for the government, the merchants who service government employees, no one really knows exactly how much that costs, which brings me to how much this shutdown is going to cost. Another billion? Maybe a few billion?

Research firm Capital Economics say it could cost as much as one percent of the country's economic growth if it goes on long enough. One percent of the GDP. But, of course, no one knows how long "long enough" actually is.

So, how else does a shutdown cost money? Well, here is a great example that we've been using.

America's national parks take in about $32 million on an average day, but without employees, no fees can be collected, so no income. There's also the cost to shut everything down, and then you have to start everything back up again from office buildings to construction projects.

Now, last time there was a shutdown, 200,000 passport applications weren't processed, toxic waste cleanup stopped, and 3,500 bankruptcy cases were delayed. So what it boils down to is that a chunk of our economy is about to grind to a halt if a deal isn't not reached soon.

All right. So, when we come back, a Chicago mom opens up her heart and home to gang members. She is this week's CNN Hero.

(COMMERCIAL BREAK)

KAYE: Since the start of the school year, 140 public school students in Chicago have been shot, many because of gang violence. One mother became so concerned that her own daughter might fall into trouble, so she decided to open up her heart and home to gang members.

Meet Diane Latiker, this week's CNN hero.

(BEGIN VIDEOTAPE)

DIANE LATIKER, COMMUNITY ORGANIZER: Guns, guns and more guns. These are our young people. These stones represent them. We are losing a generation to violence.

UNIDENTIFIED FEMALE: Everybody is scared to come out. They will get shot at.

UNIDENTIFIED FEMALE: So, when they start shooting, you got to grab the kids and run into the house.

LATIKER: People run into the house and close their doors. They don't even talk about it.

But there are some people who are not scared to go outside, and I'm one of them.

My name is Diane Latiker. And we opened up the center known as Kids Off the Block. We're known as KOB.

They are the kids that are gangs, they are homeless. Some of them are drug dealers. So, they got a lot of issues going on.

Whose sign up to get to Chicago?

I tell the kids, this is a peace place. This is a safe place.

UNIDENTIFIED MALE: I really to want be a veterinarian.

LATIKER: We have leadership workshops and music.

It's a range of things that goes on in here.

We started out with 10 young people and the next thing I knew I had 15, and then I had 25. And at one point, I had 75 young people in the three rooms of my house, and that's how Kids Off the Block started, in my living room.

We opened up the doors to the new KOB center in July. Last year, we served 301 young people. If they knock on that door, they can come in.

UNIDENTIFIED MALE: I was 12 when I got in a gang. I was robbing people. And Diane, she just changed my life. I love her for that.

LATIKER: I am no different than anybody else. I just I opened my door. Why can't come outside and see what's going on in the neighborhoods.

There are people who care, and I'm one of them.

(END VIDEOTAPE)

KAYE: Last year, Diane's center helped more than 300 kids stay off of the streets and out of trouble. Remember, every up with of this year's CNN heroes are chosen from people that all of you tell us about. So, to nominate someone you know who's making a big difference in the community, we make it real easy for you. Just go to CNNHeroes.com.

(COMMERCIAL BREAK)

KAYE: Now, checking on the stories you may have missed.

Let's start in England where one person is dead and another critically wounded after a shooting today on this British nuclear submarine. A person has taken into custody. The HMS Astute was docked in the English port of South Hampton.

A Colorado man who wrote, published and sold a how-to book for pedophiles will spend the two years on probation. Philip Greaves pleaded no contest to charges brought against him in Florida. He gained national attention when Amazon.com began selling his book last year. It has since been removed from the Web site. Under the plea deal, Greaves will not have to register as a sex offender, but will have to continue mental health counseling.

The hits coming in Japan. Rescuers say Thursday's earthquake killed three people and injured more than 140. The 7.1 magnitude hit off of the coast of northeastern Japan. It's considered an aftershock of the devastating earthquake and tsunami. That disaster has left 12,713 people dead and nearly 15,000 still missing.

Round two of the Masters is under way and the leader board is getting pretty crowded. Roy McIlroy was one of the co-leaders after the first round. But as McIlroy finishes his game, he and K.J. Chiu are neck to neck at the top. Tiger Woods just teed off last than an hour ago. And at the moment, he is one over par.

(VIDEO CLIP PLAYS)

KAYE: Syrian security forces opened fire on anti-government protests. Witnesses report many dead, many wounded as well. The latest in "Globe Trekking" is right after this.

(COMMERCIAL BREAK)

KAYE: There's been more deadly anti-government protests in Syria and Yemen today.

Joining us to discuss all of this is Fionnuala Sweeney.

Good to see you, Fionnuala.

Let's start with Syria. The latest reports, at least 22 protesters killed?

FIONNUALA SWEENEY, CNN INTERNATIONAL CORRESPONDENT: Indeed. Friday, of course, is the Muslim day of prayer for the Arab world and beyond, but in the Arab traditional now over the last few weeks. Since February, it's been the scene of protests.

And so, we saw demonstrations take place in Syria, again, not only in Daraa where most of these killings were but also in other cities. And people here are clearly not happy with what's been proposed by President Bashar al-Assad over the last week. They don't think the reforms are enough, and they want to see him gone.

KAYE: So, like many of the other countries that we have watched throughout this, they want government reform?

SWEENEY: Well, Syria is important, because Syria, of course, is seen as a bit of a hot bed for Hamas and Hezbollah, which is sponsored by Iran. So, really, if tensions in Syria, and the government there starts to come under serious threat, watch out for ripple effects across the region.

KAYE: And in Yemen, we can move on to Yemen. Security forces, again, firing on the anti-government protesters.

SWEENEY: And, again, incredible numbers of people on the streets demonstrating. The United States is in a very difficult position here. It's beginning to look as though it is hedging away from its support of President Saleh, but it's really caught between a rock and a hard place. Officially it's saying it wants to work and mediate and help the transition to a government after President Saleh, but he's been in power for a long time. And as we were discussing the other day, people like him and Colonel Gadhafi have a habit of staying in power because they know they have to.

KAYE: And in Libya, turning to the war there, there was this friendly fire incident. First, no apology from NATO, now, an apology.

SWEENEY: Well, what NATO is saying is that it regrets what happened, because it says it didn't know that the Libyan rebels had possession of tanks. What's been happening is a lot f the rebels have been getting possession of the tanks that they've captured from Colonel Gadhafi's forces. So, NATO apologizing for this, saying it regrets what happened.

But, you know, in the last half hour, we spoke to an eyewitness who has been contacting us regularly here at CNN from the city of Misrata, the coastal city, a very important pivotal city, and he says that there, Colonel Gadhafi's forces are taking over the city. That it could only be a matter of time. And if that were to happen, according to this source who's been very reliable for us, this could mean the splintering of Libya, eventually. Misrata could be the tipping point. And he's calling on NATO and as are, of course, the rebels calling on NATO, to increase the number of air strikes.

KAYE: And I don't want to let you go without talking about the Ivory Coast. That seems to be getting more violent each day.

SWEENEY: The United Nations says it has reports of 100 bodies found. We know of several hundred, numbers of bodies found earlier in the week in other parts of the country. But, really, the word here is stalemate. Everyone has been saying over the last few days and weeks that this is a situation that was about to end in a matter of hours. Well, Laurent Gbagbo, the man who claims he won the election, but the international committee says didn't and is still hanging on.

KAYE: He's still on his bunker.

SWEENEY: He's still in his bunker surrounded by the forces of Alassane Ouattara. And it's still ongoing.

KAYE: All right. Fionnuala, we appreciate that. Thank you for the update.

SWEENEY: Thank you.

KAYE: Meanwhile, now, we want to get straight to Barbara Starr at the Pentagon who has breaking news on a military death.

Barbara, what can you tell us?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Randi, this is all about if the shutdown happens, a background briefing is going on at this hour just down the hall from where we are. Senior Pentagon officials are briefing the news media on what will happen to the U.S. military and one very surprising new detail. If there is a government shutdown, and the money is not available to be spent, one of the things that will be stopped, the $100,000 death benefit for families of the fallen. Under the life insurance plan of the U.S. military, Randi, there is a death benefit that's paid to anybody, to their family members, for those who lose their lives in the line of duty. If the government shuts down, we now are told that that death benefit will not be paid until Congress starts up funding again.

This senior Pentagon official saying in a very quiet voice to reporters a few minutes ago, this could lead to families having real problems in meeting the funeral expenses of those who perish. They process about 100 to 150 death benefit claims a month for those who lose their lives in the war, who lose their lives in military accidents and that sort of thing -- very tragic implications here.

They're going to try and start it up again, you know, as soon as Congress appropriates the money. He said they are even trying to look at private aid societies to see if they can get some money flowing to the families of the fallen if this, in fact, happens, Randi.

KAYE: And, Barbara, I know you've been to Afghanistan. You've been to the front lines so many times. You've talked to these people who are willing to risk their lives for the safety of our country. How do you expect this is going to sit with them?

STARR: Well, I mean, Randi, we are already hearing on CNN iReports, there are Facebook sites, veterans organizations have been e-mailing us all day long around the world, U.S. military members are reacting to this with some sense of dismay. Now, you know, on the front lines, they are trying to focus on the job of fighting the war. But there is so much concern emerging at the military bases all over the world about what will happen to families.

And many of these people don't earn a lot of money. You know, they live paycheck to paycheck. Look at it this way, a young army private first class on the job for less than two years earns about $20,000 a year in base pay. If that private first class is married and has children, they need every paycheck. They can't afford the lose any.

And the Pentagon is really putting it out there in public about what will happen. They're playing a little bit of the situation themselves in the public arena, making sure that people understand this is up to Congress and the White House, and they're making it very clear that they do believe that the troops will suffer if it comes to a shutdown, Randi.

KAYE: Yes, at a time like this, even back pay, which I know they talk about certainly may not be enough.

You know, one of the things, Barbara, I will tell you that we've been asking, as you know for people to send us e-mails and Twitter and tweet with us, and comment on our Facebook pages on this, and one of the things that so many of you have been telling us that you are upset about is the possibility that the military won't get paid, that members of our military will not get paid. And you can certainly feel and sense the anger and the frustration from many of you just on that topic alone.

So, please continue to send us the tweets, write us to on Facebook and let us know what you think.

Continuing coverage on the government shutdown is coming up right after this quick break.

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KAYE: With the potential of a government shutdown looming, you might want to hold off on packing that RV, that's because all 394 national parks would close.

Our David Mattingly is live from the Great Smoky Mountains in Tennessee.

David, what are you finding there?

DAVID MATTINGLY, CNN CORRESPONDENT: Well, Randi, I can think of 800,000 people whose vacation plans are up in the air right now. That's how many people visit our national parks and those locations across the country every single day, and they spend $32 million in communities outside of those parks.

If this shutdown occurs, we're going to be seeing 17,000 park employees furloughed. And beyond that, we're going to see 22,000 other people, concessioners, these people who work inside the park, at businesses inside of the park. They will temporarily also be out of a job. And for them, they tell us, this possible shutdown could not come at a worse time.

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VESNA PLANKANIS, TRAIL GUIDE COMPANY OWNER: We are talking about thousands of dollar, and we have six guides who work for our company. We have seven months to make money for the entire year. And spring is one of our busiest seasons. And between now and Easter, this is when we make a good portion of our money.

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MATTINGLY: The Smoky Mountains National Park is the most visited national park in the country. This is one busy place.

Take a look at this. This is the parking lot at just one of the major overlooks here. It has been full of cars all day long. And it's been like that just nonstop, thousands of people coming through here every day faced with the possibility that they might have to change their plans abruptly come midnight tonight -- Randi.

KAYE: And, David, just really quickly, how would they actually implement the shutdown there if the government does shutdown? Do they just put out a sign "park closed" or what?

MATTINGLY: Well, in this particular case, with this park, one of the major roads will remain open, but they're going to close off all these parking areas, all these overlooks, all the restrooms -- every bit of services and facilities that they have here will be closed. So, that's not going to be much to see or do here if that happens.

With other locations, say, the Washington Monument, they just close the door when they leave in the evening, and they won't open it up again the next day. So, it's going to be different depending on which site you go to.

But for here, again, we're talking about thousands of people, and now, they're going to have to figure out what to do. We've got camp sites with hundreds of people here who are already here settled in for the season. And now, they're going to have to be moved out. That will take a couple of days, the park service is saying. They're not expecting them to leave immediately. But they will be told that they have to get out of here because the park is closed -- Randi.

KAYE: It sounds like they'll have to wind it down slowly. All right. David Mattingly -- thank you, David.

It is a dream that could become a nightmare -- when your business opening hinges on a government loan. Details on what will happen in a shutdown, next.

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KAYE: So, imagine this -- you are about to realize a lifelong dream, opening your own business. You've got everything ready to go, you just need to process the paperwork for your loan from the Small Business Administration. Well, what if, suddenly, right at the crucial moment, the SBA isn't open for business.

Ed Lavandera is in Justin, Texas, with one woman's story.

Ed, this sounds like a potential nightmare.

ED LAVANDERA, CNN CORRESPONDENT: Well, and that's what that story brings us here to this field in Justin, Texas, just north of Fort Worth. You might be wondering, well, what this field has to do with it.

Well, right here is where Cami Stewart wants to open up her first restaurant, and she is going through the process of getting that SBA loan. But all of that could very well be coming to a standstill.

How are you coping with that?

CAMI STEWART, TRYING TO START A BUSINESS: Well, just ready to take that care of to start business.

LAVANDERA: Well, now, this is very real. You are up against a deadline. You need to get this deal and this loan done by the end of this month, or you lose STEWART: The contract on the land.

LAVANDERA: -- the contract on this land.

STEWART: Yes.

LAVANDERA: So, what do you tell those politicians up in Washington who say, hey, look, you got me on the brink here?

STEWART: Right. Well, you know, I just hope that they help to solve our problems instead of, you know, putting us on the spot like this doing blame. But, you know, I just want to get my business going, hopefully, and employ 12 or 15 people, and instead of having to compete with them in the job force.

LAVANDERA: Yes. And her vision here is to turn this spot of land into a restaurant called Taco Mayo, which obviously a taco restaurant. You'd be employing 12 to 15 people. If you can't get this deal done, is the dream of opening up this restaurant over?

STEWART: Yes. So, we were able to get this lot at a pretty good price. So, if we are unable to close on the land, we don't get that contract. And then it's into higher priced tracts and we just can't afford that.

LAVANDERA: And also give people a sense -- you've been working on this a really long time,

STEWART: I've been working on it since December of 2009.

LAVANDERA: So, more than 16 months worth of work, and, all of the sudden, here, at the last moment, to hit a stumbling this block, how does it make you feel?

STEWART: Well, you know, it's very frustrating. Every day is a delay, and we just hope we get it done, because, you know, it really would make a difference for me and my family.

LAVANDERA: And tell us about your family. You're going out on this limb because you want to spend more time with your daughter.

STEWART: That's right. I do have a special needs daughter and, you know, the corporate world was good. It taught me a lot. But I just need to be available for her when I can, so -- when have to be. So, that would give me the opportunity to do that.

LAVANDERA: All right. Cami, we wish you the best of luck.

So, Randi, just to give you a sense, the Small Business Administration does -- we're told -- $400 million worth of loans every week. And it's examples like these, Cami Stewart, who then turn around and in many cases employ another 10, 12, 15 people at a time. So, that's the effect of what we might be seeing here. If this federal government shuts down, all those loans freeze up for the time being. And it really puts a lot of people in a bind -- Randi. KAYE: Yes, a lot of people who might think this is just a story out of Washington, D.C., certainly, it has tentacles all across the country and to so many people. Ed Lavandera for us in Texas -- thank you, Ed.

And CNN NEWSROOM continues with T.J. Holmes, who is in for Brooke Baldwin, right after this quick break.

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