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CNN Live At Daybreak

Target: Terrorism - Bush and Congressional Leaders Meet This Morning

Aired October 02, 2001 - 08:01   ET

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

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
PAULA ZAHN, CNN ANCHOR: We now want to get the very latest from Washington and for that we turn to my colleague John King who joins us from -- oh, you're inside today.

JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT: Inside this morning, Paula, good morning to you. A very busy day here in Washington.

The president at this hour having breakfast with the bipartisan congressional leadership, and we know already they have reached an agreement on what was to have been the dominant fight here in Washington this fall, next year's budget spending levels. In the end, the two sides decided this was not the time for partisanship. Both sides win, if you will. The president gets the $18 billion in additional defense spending he wanted in the fiscal year 2002 budget, Democrats get $4 billion in education spending beyond what the administration and many Republicans in Congress wanted. So a truce on the budget deal as the president and the bipartisan leadership of Congress try to discuss now bigger issues -- bigger immediate issues like what to do about the airline workers thrown out of work because of the terrorist strikes, what to do about the broader economic impact of all of this? That is the debate this morning.

An economic stimulus package that could include things like a payroll tax cut, things like extended unemployment benefits for workers thrown out of work because of the events of September 11. Also discussing as much as $1 billion in an emergency low income assistance for those in New York and elsewhere who might have trouble paying their heating bills this winter because their spouse, who was the bread winner in the family, perhaps a victim of the attacks on September 11.

So partisanship, the fall budget battle put aside, a compromise reached there between the president and the Congress. Still very urgent discussions about how to deal with the long-term economic impact of the terrorist strikes, including some adjustments to military spending on that front as well.

And when that meeting is over this morning in the oval Office and we will bring you highlights of it very soon we are told, the president goes off to National Airport a bit later today to announce one other dramatic development, the reopening or plan to reopen the last U.S. airport still shut down in the wake of the terrorist strikes of September 11. At National Airport in the 10:00 hour today, Mr. Bush will announce stringent new security measures being put in place there, even additional steps beyond those being taken at other airports around the country because of the proximity of National Airport to the White House, to the Capitol, to the Pentagon and other key federal installations. Additional security, including armed federal sky marshals on every single flight into and out of National Airport. Also the flight patters will be changed, ware told, to make them -- quote -- "consistent" with new national security concerns.

So a busy day for the president. Another reflection of the remarkable bipartisan spirit here in Washington in the wake of these attacks that he could reach an agreement with the Democrats and Republicans in Congress on the budget. We will hear directly from the President and some of those congressional leaders in the minutes ahead -- Paula.

ZAHN: John, before we let you go, let's come back to this budget agreement. Was there anything in particular that you found surprising about this compromise?

KING: Well, it's what's not in the -- what's not in the compromise, what's not in the paper of the compromise is the biggest surprise. Remember just a few weeks back there was to be a very large bitter partisan debate here in Washington about did this president push for so big of a tax cut that he was now forced to dip into the Social Security surplus, something politicians in both parties had promised not to do. That is now gone. We are in what they call a war economy here in Washington, a war budgeting here in Washington, and no one is saying it is inappropriate at this moment to dip into the Social Security surplus to pay the government's bills because of the costs at home economically as a result of the terrorist attacks and because of the growing cost of the military deployment overseas. So the president got his money in defense spending, no surprise there given the military buildup overseas. Very few in the Congress would want to stand up and oppose increased military spending at this moment.

And the president quieted criticism among conservatives to this additional education spending. Many conservatives think this is not Washington's job. The state's and local government should pay for education. Everyone turning down the volume, if you will, at this remarkable moment for the country and the whole debate that was to dominate Washington this fall, should the government tap the Social Security surplus is now gone, quieted for now. They will tap that Social Security surplus. Both parties agree they have no choice.

ZAHN: All right, John King, thanks so much. See you a little bit later on this morning.

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