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Immigration Reform Protests Before Senate Showdown; Christian Groups Urging President Bush To Do More To Save Abdul Rahman's Life; President Bush And Vice President Cheney Helping Their Party In Fall Congressional Elections; Russia May Have Passed Information On U.S. Troop Movement To Saddam Hussein Before Iraq War; New Legal Challenge To New Orleans' Election Plans By Civil Rights Activists; New Jersey Democrats Reconsidering Endorsement Of Arab-American Candidate After Controversial Terrorism Comments

Aired March 24, 2006 - 16:00   ET

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

WOLF BLITZER, CNN ANCHOR: Thanks very much Ali.
And to our viewers, you're in THE SITUATION ROOM, where new pictures and information are arriving all the time. Standing by, CNN reporters across the United States and around the world to bring you today's top stories.

Happening now, heated border protests and politics. It's 2:00 p.m. in Arizona, the scene of a huge march against legislation aimed at cracking down on illegal immigrants.

Back here in Washington, someone is pressing hot button issues in the battle over immigration that is about to explode.

Also this hour, the president and the vice president raising cash and raising eyebrows. It's 4:00 p.m. in Indiana and Florida, where the biggest White House guns have been firing away. Wait until you hear what the vice president is now saying.

And one man's life on the line for converting from Islam to Christianity. It's 1:30 a.m. Saturday in Afghanistan where there are new developments in this stunning case. Is President Bush's wartime push for democracy being threatened?

I'm Wolf Blitzer. You're in THE SITUATION ROOM.

It's happening right now near the U.S. border and in the U.S. capital. There's new political positioning underway before a Senate showdown over illegal immigration.

In Phoenix, Arizona, throngs of protesters are demanding what they call humane immigration reform. They're fighting some of the toughest measures before Congress including efforts to build more walls along the border and to make helping illegal immigrants a criminal offense.

High school students in California are sending a similar message to lawmakers. They walked out of their classrooms to protest reposed immigration policies. The march comes a day before a larger rally in Los Angeles by immigrant rights group. It's all part of the lead up to what could be a knockdown, drag out immigration fight on Capitol Hill.

Let's go to our Congressional correspondent Ed Henry. He has got the latest -- Ed.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Wolf, that's right. In fact, this is basically -- all these protests are a lead up to a very dramatic showdown we are going to see Monday morning in the Senate Judiciary Committee, where they are going to battling.

Basically, these supporters of immigration rights are fired up about a House bill though that passed last year that would impose new penalties on employers that hire illegal, make it a felony to be illegal in the country and also crackdown on organization that provide aid to these illegal immigrants.

And that is why we saw Hillary Clinton this week basically charge that this would be anti-Jesus that it would be going against the good Samaritan. Even very tough talk over a bill sponsored by Congressman Jim Sensenbrenner. He's a Republican from Wisconsin, which is one of the reasons why we also saw protests yesterday in Milwaukee.

All of this, as I mentioned, setting the stage for this dramatic showdown on Monday. If the Senate Judiciary Committee does not work out a compromise on what to do with the 11 million to 12 million illegal immigrants already in the United States, Senate Majority Leader Bill Frist says he will move forward on a bill not dealing with that, and that is what is sparking all of the controversy -- Wolf.

BLITZER: Ed, the whole issue in the Senate -- usually the Senate finds a way to modify, if you will, or moderate what passes in the House. Is that likely to happen this time?

HENRY: Not necessarily and that is exactly -- you put your finger right on what the basic fight here. It is basically Senator Frist is saying, if there's no compromise crafted by the Judiciary Committee to work out what to do with these 11 million to 12 million illegal immigrants in the country -- basically some call it a guest worker program. Opponents call it amnesty.

Then he is going to move forward on a border security only bill that would be much closer to what we saw the House pass rather than moderate that bill it would be similar to the House bill. That's what got a lot of the protesters fired up.

And what is interesting is you have seen the Senate Democratic leader, as you know, on this very program a couple of days ago in THE SITUATION ROOM threatening a filibuster against what Senate Majority Leader Frist is going to bring up if it does not deal with the 11 million to 12 million illegal immigrants here.

And what is most interesting is that Senator Reid and other Democrats are aligned basically with President Bush on this, who also wants a guest worker program. That's is what is infuriating a lot of conservatives and has put a real split right down the middle of the Republican Party -- Wolf.

BLITZER: On another matter, Ed, I understand there's some new maneuvering going on in the whole issue of censuring the president?

HENRY: That's right. This also involving Senate Judiciary Chairman Arlen Specter, a Republican. He has though raised questions about the president's NSA domestic surveillance program. He just moments ago scheduled a hearing for Friday, March 32, on whether or not to censure the president that motion, the resolution by Democratic Senator Russ Feingold.

This does not mean that Senator Specter is on board with censuring the president. But it does mean that he is willing to at least have a hearing. It was referred to his committee. He is going to have a hearing next Friday to take a look at the merits of this. Very likely though that the Republican-led Senate will end up shooting this down -- Wolf.

BLITZER: Thanks very much. Ed Henry reporting for us.

So we will move on to another kind of culture war that is breaking out, the case of an Afghan man threatened with execution because he converted from Islam to Christianity. Just a short time ago, an Afghan government official said Abdul Rahman is expected to be freed in the coming days.

Western nations have been calling for his release, putting pressure on the Kabul government, which was installed after the U.S.- led invasion of Afghanistan. Here in the United States, Christian groups have been urging President Bush to do more to save Rahman's life.

Our senior analyst Jeff Greenfield has been looking into this story, assessing the political fallout -- Jeff.

JEFF GREENFIELD, CNN SENIOR ANALYST: Well, Wolf, just as the president was wrapping up a vigorous campaign to defend his Iraq policies with those open ended give and takes with the press and citizens. A new problem emerged from the other country where American troops had gone to war, and this problem strikes at the heart of both the president's rationale for his policies and at his Republican base.

(BEGIN VIDEOTAPE)

GREENFIELD (voice-over): News that an Afghan citizen Abdul Rahman was facing the death penalty for converting to Christianity has exploded across the news. The president has already said he's deeply troubled by the threat.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: That's not the universal application of the values that I talked about.

GREENFIELD: In fact, that's the heart of the dilemma. When U.S. forces ousted the Taliban four and half years ago, it wasn't just a hit and staging area for al Qaeda in the attacks of September 11. Taliban rule is a harsh, deeply repressive brand of Islam, where women were forbidden to learn, where heretics of all sorts were killed in the most brutal of ways. Indeed, the Bush administration in it's national security strategy in 2002, the intellectual underpinning of the war in Iraq, argued among other things that religious tolerance was a non- negotiable universal value. The president celebrated Afghanistan as a victory for freedom. It leaders were showcased at the White House and State of the Union addresses.

So the notion that an Afghan citizen could be killed under religious law for simply converting to Christianity seemed to undercut that rationale. Not to mention the fact that one of the key elements of the Republican base, Politically Engaged Christians, has already been pressing the Bush administration on human rights issues, especially involving the persecution of Christians abroad.

No wonder the case has already engaged Republicans like Senator Bill Frist who wants the Republican nomination in 2008 and who knows that base is crucial.

When any American president put American blood and treasure at risk to defend another nation there is always a risk that misconduct by that other nation can threaten support for the policy. We saw that with stories of corruption and brutality from South Vietnam.

(END VIDEOTAPE)

GREENFIELD: And today if you had to come up with the worst possible story to afflict this administration, it would be hard to top the story of a government put into force by U.S. force under the banner of spreading freedom now threatening to kill a citizen for the crime of becoming a Christian -- Wolf.

BLITZER: What happens if they let this guy simply leave the country and move out of Afghanistan, does the subject go away, Jeff?

GREENFIELD: Well, it would be less dramatic than if in fact this poor individual had been executed. But it's the kind of story, Wolf, that I think a lot of people, particularly supporters of the president in this case, would pick up the paper or look at the TV and go, what? The government we put in power was thinking about executing somebody for the crime of becoming a Christian?

I think the taste that it will leave in people's mouths will linger even if in fact the current crisis is resolved by the Afghan government.

BLITZER: Jeff Greenfield, thanks very much.

This hour, the president and the vice president are on the campaign trail working in different ways to help their party in the fall Congressional elections. Today Mr. Bush is the money man. Mr. Cheney is on the political attack.

Our White House correspondent Dana Bash is following their travels. She is joining us now from the White House -- Dana.

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Wolf, today really felt like the beginning of 2006, the campaign year of 2006 for this White House. As you mentioned, both the vice president and the president were out at fund-raisers for Congressional candidates. And Mr. Cheney, for his part, came out breathing fire on Iraq. His mission today was to hit back against the Democratic Leader Harry Reid who called the president, quote, "dangerously incompetent."

Now, Mr. Cheney not only slammed Harry Reid but also Howard Dean, the Democratic National chairman. But, in addition, he reached back to 2004 to their former opponent John Kerry, some things that he had said, calling all of the Democrats the party that simply can't be trusted when it comes to national security.

(BEGIN VIDEO CLIP)

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: And leading Democrats have demanded a sudden withdraw from the battle against terrorists in Iraq, the very kind of retreat that Osama bin Laden has been predicting. And with that sorry record the leaders of the Democratic Party have decided to run on the theme of competence.

If they are competent to fight this war then I ought to be singing on "American Idol." I don't know what that is funny.

(END VIDEO CLIP)

BASH: A little attack with a little humor there from the vice president. As for the, Wolf, he picked an old standby for the way he was going to step into the political fray today. In Indianapolis for another fundraiser, he talked about tax cuts, the one issue, perhaps, at this point is a guarantee to unify the Republican Party. And he said that that is something that Republicans should think about when they're voting, Republican versus Democrat on that issue.

(BEGIN VIDEO CLIP)

G. BUSH: The difference is clear. If you want the government in your pocket, vote Democrat. If you want to keep more of your hard earned money, vote Republican.

(END VIDEO CLIP)

BASH: Now, what you saw today, Wolf, is something that officials here and at the Republican National Committee and on Capitol Hill tell us that they are going to try very hard to do more of, and that is to try to turn this election away from a referendum on the president -- who, obviously, is very low in the polls -- and try to do more contrasting, as they call it, with Democrats, what have been saying and their policies.

That is something that they feel worked for them in 2004 and it's something that they're going to do more of, essentially trying to make the case, you think that you don't like us, that we're not doing a good job, well, guess what would happen if they were in charge -- Wolf.

BLITZER: As part of this politicking, where does he go next, the president, Dana?

BASH: He's going to Pennsylvania. He's going to do a fundraiser for Senator Rick Santorum, one of the Republican leaders in the Senate, certainly in one of toughest fights this coming year. It's going to be a fundraiser, but a closed fundraiser. There you see some pictures of them together from earlier this year or late last year. That is not going to happen today.

Now, the Santorum campaign says that this is standard operating procedure to have fundraisers that are closed only. The president will raise about $500,000. Again, just as we've been seeing, candidates are very happy to take the money that the president still can bring in.

But the question is whether or not down the road these candidates, like for example Senator Santorum, is going to want the president to actually be actively campaigning with him.

I spoke with one of Senator Santorum's advisors yesterday, asked him that question, and he very diplomatically said, "we value the president's ability to help raise money, but we prefer this race to be focused on Rick Santorum versus Bob Casey, and that's what we want this truly to be about." Bob Casey being the Democratic challenger -- Wolf.

BLITZER: Thanks very much, Dana, for that.

Let's take a closer look now at why Senator Santorum is so worried about getting too close to President Bush. The Pennsylvania Republican is in the political fight of his life to keep his Senate seat. The most recent poll out of Pennsylvania shows Santorum running 12 points behind his leading Democratic opponent, the state treasurer Bob Casey.

The Democratic Party recruited Casey to run. They hope his anti- abortion stance will help him defeat Santorum, a prominent and fierce opponent of abortion right for women.

And remember, you're in THE SITUATION ROOM where political news is arriving all the time. CNN, America's campaign headquarters.

Time now for "The Cafferty File." That means we go to New York and Jack. Hi, Jack.

JACK CAFFERTY, CNN ANCHOR: Hi, Wolf.

Could women be the answer to some of the Democrats' prayers? The "New York Times" is reporting that Democratic women are running for major campaigns in almost half of the two dozen most competitive House races this year. Democrats hope to pick up enough Republican seats in the midterm elections in November to gain control of the House.

Strategists are betting that the voters' unhappiness with the current lot -- that would be mostly men -- creates an opportunity. They want to frame the midterm debate as change versus status quo, making women who are running as outsiders the perfect candidates. The Republicans remain confident they'll do well in November because the number one issue, they say, remains national security.

So here's the question: Will it help the Democrats to have more women running for office in November? E-mail your thoughts to CAFFERTYFILE@CNN.COM, or go to CNN.com/CaffertyFile -- Wolf.

BLITZER: Thanks, Jack.

Coming up here in THE SITUATION ROOM, we'll have much more on our top story, the massive protests underway right now against immigration reform. Our "Play of the Week" comes out of this story, but who gets the play? Bill Schneider will reveal the winner. That's coming up.

Plus, there's controversy over an Arab-American candidate running for a local office in New Jersey. We're going to tell you what all the fuss is about.

And also coming up, after three years of fighting in Iraq, what lessons have U.S. troops now learned? We're going to tell you what the Pentagon is saying. Stay with us. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: We're following a developing story right now. Some stunning revelations from the Pentagon about the early days of the Iraq war. There's a just-released report revealing that Russia supposedly passed information to Saddam Hussein about U.S. troop movements and plans as the war was getting underway.

Let's get the latest now from our senior Pentagon correspondent, Jamie McIntyre. This is pretty alarming if true, Jamie. What do we know?

JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT: Well, it's pretty interesting stuff, Wolf. It's from a 210-page report called the Iraqi Perspective Project just put out by the Pentagon, interviews with dozens of Iraqi officials after the war and the review of thousands of documents.

And one of those documents is a dispatch that Saddam Hussein got on March 24th, a couple days into the war, from the Russians. Apparently the Russian ambassador passing along details of what the U.S. war strategy was to bypass some of the cities and to isolate Iraq.

The problem was that the information was somewhat incomplete and somewhat inaccurate as well. It also said that the U.S. wouldn't go into Baghdad until mid-April, when the 4th Infantry Division arrived. Of course, the U.S. didn't wait for that. They toppled Saddam Hussein's government in a rush to Baghdad much sooner than this.

But the other problem, of course, is Saddam Hussein ignored it, as he did the advice from his own generals, and he basically relied only on himself and his own judgment. That caused him to make a lot of miscalculations, such as not destroying the bridges, that also facilitated the U.S. advance into Baghdad. Again, a fascinating report. It's full of miscalculations that Saddam Hussein made, some of his misconceptions, and one of most interesting things, Wolf, is that many people in the Iraqi government had no idea if Iraq had weapons of mass destruction, and it concludes Saddam himself didn't have a clear picture of what his weapons program had actually produced.

BLITZER: But it seems to me, Jamie, the issue is not so much whether or not Saddam Hussein was listening to this information. The key question a U.S. perspective, was there a Russian mole or spy inside the U.S. military Central Command passing along the most sensitive information about troop movements to the Iraqis, to Iraqi officials?

MCINTYRE: Well, the document from the Russians purports to have sources inside the U.S. Central Command in Doha. When I asked some of the military investigators who put this report together whether they had any information to corroborate that, they said they did not. But they said the document would just have to speak for itself.

BLITZER: Jamie, thanks very much. We're going to follow up on this story and have much more coming up here in THE SITUATION ROOM.

Zain Verjee has the day off. Fredricka Whitfield is joining us now from the CNN Global Headquarters with a quick look at some other stories making headlines today. Hi, Fred.

FREDRICKA WHITFIELD, CNN ANCHOR: Hello to you, Wolf.

More now on the U.S.-Iraq operation. The U.S. military says two American soldiers were killed yesterday in Iraq's Anbar province. That brings the U.S. troops casualties now to 2,321.

At least 12 people are dead after a day of violent attacks in Iraq. Gunmen killed four bakery workers in Baghdad today. They also left behind a booby-trapped bomb, which killed a policemen who was investigating the shooting.

North of the Iraqi capitol, a bomb killed five worshipers as they left weekly prayers at a Sunni mosque.

And authorities say the wife of a slain Tennessee minister has confessed to killing hem. Mary Winkler faces a charge of first degree murder in the shooting death of her husband, Matthew Winkler. She has waived extradition rights and is being transported back to Tennessee from Alabama.

Congregants found Matthew Winkler's body at his home on Wednesday night after he failed to show up for evening services. The police have not given a motive for the killing.

Princess Cruises is flying more than 2,600 star princess passengers home today and tomorrow from Montego Bay, Jamaica. That's where the charred $430 million cruise ship, where it is docked, after yesterday's deadly fire. One man died of an apparent heart attack. Eleven other people suffered smoke-related injuries. An investigation into the blaze is now underway. The passengers will receive full refunds -- Wolf.

BLITZER: I would hope.

Thanks very much, Fred, for that. We will get back to you soon.

Coming up immigration reform generating lots of anger and protests. But it is also giving us the "Play of the Week." Who is the winner? We are going to find out from Bill Schneider.

Plus, Vice President Dick Cheney on the attack against the Democrats. Is that a smart strategy for the White House? I will ask two experts, James Carville and Bay Buchanan. They are standing by for our strategy session. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Let's go right back to Fred at the CNN center. She's following a developing story. What's going on, Fred?

WHITFIELD: Right off the Washington coast, U.S. Coast Guard efforts are underway to try to free a 360-foot cruise ship that is stuck on a sandbar. Apparently, this is taking place near Washougal, Washington. The stern of the ship is stuck in about seven feet of water. While the bow is stuck in about 14 feet.

There are about 257 passengers on board. We're not clear exactly where they were going. Only that this cruise ship was on a seven-day trip at sea. And these efforts are underway now. A tugboat is there to try to free this cruise ship so that those many passengers can get to dry land -- Wolf.

BLITZER: All right. We will continue to watch this story. Fred, thanks very much.

We will take another quick break. We will be right back. Much more coming up, including Bill Schneider and his "Play of the Week." Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back. Today in our "Strategy Session," the president takes to the campaign trail and the vice president goes on the offensive against the Democrats. Will candidates be running with or away from the president in November, specifically Republicans? And is the vice president the right man to lead the attack against the critics?

Joining us now are CNN political analysts Democratic strategist James Carville and Bay Buchanan, the president of American Cause. Listen to this sound bite from what the vice president said earlier today. Listen to this.

(BEGIN VIDEO CLIP)

CHENEY: And leading Democrats have demanded a sudden withdraw from the battle against terrorists in Iraq, the very kind of retreat that Osama bin Laden has been predicting. And with that sorry record, the leaders of the Democratic Party have decided to run on the theme of incompetence. If they are competent to fight this war, then I ought to be singing on "American Idol."

(END VIDEO CLIP)

BLITZER: It's a funny line.

JAMES CARVILLE, CNN POLITICAL ANALYST: It's wonderful.

BLITZER: Is it a good strategy though?

CARVILLE: Shooter's at it again. I mean, look, here is a man who said that we would be greeted as liberators, that Iraq had reconstituted the nuclear weapons program. It is kind of funny. Him talking about competence is like me talking about hair. Don't know very much about it now, do we? And I have to say when it comes to Cheney -- red Rover, red Rover, send Dick Cheney right over. I can't imagine that the Democrats...

BLITZER: Do you think Republicans who are in close races with the Senate or the House or governors are going to want Dick Cheney coming into their districts, their states, to campaign for them?

BAY BUCHANAN, CNN POLITICAL ANALYST: I don't think they would hesitate to have Dick Cheney come in. I think the key is this is reminiscent of the old Spiro Agnew. The key -- what the vice president is trying to do here is create a national agenda for Republicans. So whether he goes into this state or not or just talks to national television, the point is make that trump card stronger than ever.

National security works for Republicans. Let's bring it up there. Let's put the Democrats on the defense. They are splintered on it. They fall apart every time somebody says something strong in their -- takes strong action in their party. Let that happen again between now and November.

CARVILLE: I was just in Pennsylvania. I think he ought to go up and help Rick Santorum tomorrow. I think he ought to campaign.

BLITZER: He's there tonight. He's there tonight.

CARVILLE: Yes. Go campaign around the states.

BLITZER: Bush is there tonight.

CARVILLE: Get Cheney to campaign around the state. I bet you it will be tonight, and it will be short.

BLITZER: But he could raise money for him. They are good at that.

CARVILLE: They should be able to. They have done everything that they could for the lobbying community. Why wouldn't they be able to raise -- of course, they can raise money. Look, Rick Santorum is the king of Kay Street. They are going to rake in a lot of money. That is a given. But what Cheney needs to do is go up and campaign around the state, go with Santorum and go door to door with him.

BUCHANAN: You know, everyone is talking about oh my gosh, people are going to run away from the president. The key is what James just said. The president will raise you huge sums of money, millions of dollars. Well, if there is a little bit of slippage, that millions of dollars will help buoy that up and put you up even higher.

So of course you bring him in, the early, the better. You bring Laura in, in the last couple of weeks, and everything will work out just fine.

CARVILLE: Keep him out late and he can raise money.

BLITZER: The president was out campaigning today. Listen to what he said. We have this clip.

(BEGIN VIDEO CLIP)

G. BUSH: The reality in the world in which we live is there's an enemy who hates those of us who embrace freedom and would like to strike us again, and therefore, it's important to have members of the United States Congress who understand the stakes in the global war on terror.

(END VIDEO CLIP)

BLITZER: Is that a successful strategy, you think, for them to be hitting home in effect suggesting Democrats really don't understand the issues?

BUCHANAN: Well, I think depending on how you say it, yes, it is effective. The key here is every poll shows that in the Democrats are perceived as weak on security, that they are going to lose. The American people will not gamble on security. So if you can create that atmosphere using ...

BLITZER: That gap you know has been narrowing and narrowing and narrowing.

BUCHANAN: Yes, but it is still there. And you can get it up again if you make the people think that indeed this threat is real and imminent.

CARVILLE: I don't -- he didn't say anything I disagreed with. There are people who don't wish us well. They would like to strike us again. That's why Democrats overwhelmingly support implementing the recommendations of the 9/11 commission, which by the way gave this administration a D on security. That's why more and more people are saying the Democrats are just as good. The polls are almost equal.

So I don't disagree with what he said at all. I just think the Democrats are a lot stronger on this issue than they are.

BLITZER: Listen to what Senator Chuck Hagel, a Republican, but he's got an independent streak, what he said yesterday, he said "Democrats keep blowing every opportunity we give them. And I've told my Democratic friends, if nothing else, just keep your mouth shut and let us self-destruct but they won't even let us do that." That's a good line from him.

CARVILLE: It is. But I think they're doing a pretty good job of it anyway, to tell you the truth. I don't think we've been able to stop them from self-destructing. People ask me, gee, why aren't the Democrats profiting? In our poll it is something like a 15 point congressional ballot test right now. No way to go but down from there.

It is -- actually I wrote a book that was very critical of Democrats. I actually think we're doing some things better. And I think -- I'm optimistic that we will continue to. But if the Democrats -- one of the things is I don't think we're competent enough to stop their slide from self destruction.

BLITZER: I believe you co-wrote that book.

CARVILLE: Co-wrote.

BLITZER: One Paul Begala.

CARVILLE: Texas fan. You're right.

BLITZER: Texas/LSU. We'll talk about that a little later.

CARVILLE: I stand corrected.

BLITZER: Immigration. This is a tough issue for a lot of Republicans this year because so many of them, they disagree with the president and his guest worker program. But listen to what Hillary Clinton said this week.

(BEGIN VIDEO CLIP)

SEN. HILLARY CLINTON (D), NEW YORK: It is hard to believe that a Republican leadership that is constantly talking about values and about faith would put forth such a mean-spirited piece of legislation.

(END VIDEO CLIP)

BLITZER: She's referring to legislation in the House of Representatives. The Senate is about to take up its own version.

BUCHANAN: Of course. And what she's saying is mean-spirited is exactly this. That the American people and the House of Republicans want their borders secure and their laws enforced. That's what they're asking for. That's it, nothing more, and she calls that mean- spirited.

There's something -- she also referred to the Bible and said it would be against the things in the Bible. I'm not sure -- my last read of that bible I didn't see anything about immigration laws being violated but that's her read of it and it's just about as interesting as some of the other ...

CARVILLE: She was very specific. They should only take care of the people in Nazareth. If you see a poor person from Judea you should obviously neglect him, because they might not be there and that's ridiculous.

The idea that it's a Christian value to deny somebody who is starving food and someone who is freezing shelter and say, excuse me, can I see your green card before I give you some soup, or somebody having a heart attack to deny them -- if that kind of legislation comports in any way with the teachings of the Bible or the New Testament I am completely unfamiliar with it.

BUCHANAN: James obviously hasn't read the legislation because it doesn't talk about that at all. In fact, the Minutemen who are down there on the border, they are the first ones to give food and water and to help those people coming across as best they could and then turn them over to authorities.

The key here is we expect the government to enforce our laws. And when you have people who have broken them, it is unfair and there's no respect for the law and it's hurting Americans across the country. Wages are suppressed. Jobs are taken, hospitals are closing, schools are in havoc. The problem is just being exacerbated and in the Senate bills none of them address them as expected.

BLITZER: We only have a few seconds.

CARVILLE: They didn't start this war, they didn't run this deficit up. They didn't sit around and do nothing about healthcare. I think the president has a decent proposal to try to get some of these people that are already here, hardworking people, get them a legalized guest worker, amnesty, whatever the heck you want to call it, stiffen up the borders and put some sanctions in. But I'm never going to be for denying hungry person food or denying a cold person shelter or a sick personal healthcare.

BLITZER: We'll leave it there. Bay and James, thanks very much.

BUCHANAN: Sure.

BLITZER: The immigration issue is heating up on line as well.

Let's get the latest from our Internet reporter, Jacki Schechner -- Jacki.

JACKI SCHECHNER, CNN INTERNET REPORTER: Wolf, people are ramping up on line to protest for fair rights for immigrant workers. This is bluelatinos.org, this is a national on line organization of progressive Latinos. They actually have a rally going on right now in Cleveland or at 5:00 today. And they're also going to be gearing up tomorrow for a massive protest in Los Angeles and they're going to be in New York City on -- encouraging people to rally in New York City on Sunday.

Also happening in Sunday back in L.A. is the Cesar Chavez rally. That is sponsored by the United Farm Workers and that rally is in support of the contribution of immigrant worker over the years.

On the other side of the issue, there is FAIR, the Federation for American Immigration Reform. They're encouraging people to contact their lawmakers to support immigration reform and under that umbrella is no more amnesty and they are sponsoring the Save the American Worker Week, that being this week. There is also going to be a protest here in DC on Monday in support of tighter border control -- Wolf.

BLITZER: Thanks, Jacki, very much.

Coming up, we'll have much more on the political battle immigration. The controversy is giving us our play of the week. But who is the winner? You are going to find out next.

(COMMERCIAL BREAK)

BLITZER: Back to our lead story. The immigration war as the Senate showdown that's about to unfold is likely to be bruising and bitter. But could it also be a plus for a Republican with White House ambitions. Let's bring in our senior political analyst Bill Schneider -- Bill.

WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: Wolf, forcing the United States Senate to do something is no small feat. If it also happen as to further your interests as a presidential candidate, then it's the political play of the week.

(BEGIN VIDEOTAPE)

SCHNEIDER (voice-over): The House of Representatives passed a border security bill way back in December. The Senate Judiciary Committee has been struggling with its own immigration bill for three weeks. So Senate majority leader Bill Frist issued an ultimatum.

SEN. BILL FRIST (R-TN), MAJORITY LEADER: Today I introduced a border security bill to ensured the Senate will have legislation available for consideration during that week of March 27th.

SCHNEIDER: If the Judiciary Committee doesn't come up with a bill on Monday, Frist will send his own bill to the Senate floor. Committee Chairman Arlen Specter says it would be a colossal mistake to bypass his committee. A majority on the committee favors a guest worker program, as does President Bush but many conservatives oppose a guest worker program. Frist's bill does not include one.

FRIST: It focuses on ensuring strict enforcement of our nation's immigration laws.

SCHNEIDER: Oh, by the way, Frist may be a Republican candidate for president. Frist's threat drew a counter-threat from the Senate Democratic leader.

SEN. HARRY REID (R-NV), MINORITY LEADER I will use every procedural means at my disposal to stop that. SCHNEIDER: Which drew a counter-threat from Republican Senator Johnny Isakson to stop any guest worker bill until the borders are sealed and secured.

What will happen in the Senate? Possibly nothing.

SEN. RICHARD LUGAR (R), INDIANA: Very critical points may require 60 votes to overcome filibuster.

SCHNEIDER: But leader Frist and say, hey I'm doing my part.

FRIST: Allowing the nature to work its will on border security and on interior law enforcement as well as comprehensive immigration reform.

SCHNEIDER: And if he can do that that shows good faith with conservatives, that's not a problem. It's the political play of the week.

(END VIDEOTAPE)

SCHNEIDER: Frist invited the Senate to work its will on quote, "comprehensive immigration reform." That's a code word for a guest worker program like the president favors. Frist said the Senate could work its will, not the president's will or Frist's will -- Wolf.

BLITZER: Bill Schneider, thank you very much.

Coming up, why are these people so angry about next month's election in New Orleans? You are going to find out in today's "Political Radar."

Plus, the First Lady speaks out. Laura Bush sits down with Larry King. We are going to you what she had to say. Stay with us on THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: On our "Political Radar" this Friday, there's a new legal challenge to New Orleans' election plans by Jesse Jackson and other civil rights activists. They're trying to postpone the April 22nd vote which already was delayed once by Hurricane Katrina. The NAACP and other groups say residents who relocated to other cities would have to return to New Orleans to vote in person. They say the expense of that amounts to an illegal poll tax.

(BEGIN VIDEO CLIP)

JESSE JACKSON, CIVIL RIGHTS LEADER: We are not going to compromise the Voting Rights Act. Whatever must be done will be done to fight to protect those rights to the same degree of fervor and risk it took to get the Voting Rights Act in 1965.

(END VIDEO CLIP)

BLITZER: First Lady Laura Bush often keeps her political views close to the vest, but she said more than once she would love to see a woman serve in the Oval Office. Today, CNN's Larry King asked Mrs. Bush about a would-be candidate she has mentioned before. Namely, Secretary of State Condoleezza Rice.

(BEGIN VIDEO CLIP)

LARRY KING, CNN HOST: Would Secretary Rice make a good president?

LAURA BUSH, FIRST LADY OF THE UNITED STATES: She would make an excellent president. But I don't think we can talk her into running.

KING: No?

L. BUSH: I don't think so. I think she sincerely does not want to run. But I wish she should.

KING: Going to go back to college?

L. BUSH: I think she probably wants to move back to California and have a wonderful life post secretary of state. But she's a wonderful secretary of state for our country and she would be a great president.

KING: Because there's this story that she wants to be the commissioner of the National Football League.

L. BUSH: Well, I heard she said she didn't want to now. She was still going to continue to be secretary of state.

(END VIDEO CLIP)

BLITZER: We are going to have more of Larry's exclusive interview with Mrs. Bush and also speak to Larry. That's coming up in our next hour right here in THE SITUATION ROOM.

Another note on the First Lady, Sally Quinn of "The Washington Post" wrote an open letter to Mrs. Bush today urging her to help her husband repair the political damage to his administration. Among other things, Quinn says Mrs. Bush should urge the president to hear outside opinions, pay more attention to Congress and convince him that polls do matter.

We're also learning now that the Red Cross is investigating allegations that some of its own volunteers mismanaged millions of dollars of Hurricane Katrina donations. Meantime, FEMA has its own set of problems concerning disaster relief money doled out to 1.7 million households. The federal agency dispersed money it shouldn't have. Our Internet reporter Abbi Tatton is following this story -- Abbi.

ABBI TATTON, CNN CORRESPONDENT: Wolf, FEMA gave this money out and this week they're trying to get some of it back. They've been sending out these letters, 1,500 of them so far and many thousands more to follow, asking people to return payments. Who is getting them? People who accidentally made multiple claims for assistance or got duplicate payments along with insurance money and also people suspected of fraud.

A government report last month showed just how vulnerable this agency was to fraud. After Hurricane Katrina, investigators posing as Katrina victims got their hands on this check for $2,000. Further research showed that some of the money wasn't going to exactly essential things. A gentleman's club, for pistols and tattoos and other things in this GAO report.

A FEMA spokesperson tells us today is that in their efforts to distribute money as quickly as possible after a disaster, errors are sometimes made. They hope to recoup two to three percent of these payments -- Wolf.

BLITZER: Thanks very much, Abbi, for that.

We are going to go to New Orleans live in the next hour here in THE SITUATION ROOM for much more on this story. Up next, though, the battle for control of Congress. Do you think it will help the Democrats to have more women running for office in November? Jack Cafferty has the answers to your email. That's coming up.

Plus a funeral today for an American airman more than 60 years after he died in a plane crash. Stay with us. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Check back with Fred. There's a developing story that we're following. Fred, what's the latest?

WHITFIELD: All right, Wolf. Off the Washington coast, a 360 foot long cruise ship is stuck on a sand bar. The U.S. Coast Guard is there trying to assess whether to unload the 257 passengers who are onboard. You're now looking at live pictures that we're just now getting in or whether they will find some other way to get that ship afloat. We know that this ship was on a seven-day cruise at sea. We don't know exactly what its origination point or where it was going. But right now, no reported injuries of those 257 passengers onboard.

Meantime in other news, a long-missing World War II airman was laid to rest today. Leo Mustonen's army plane crashed into a Sierra Nevada area back in 1942. Today, he was buried next to his mother in his hometown of Brainerd, Minnesota. His two nieces attended the funeral. Mustonen remained missing for 63 years but last year, mountain climbers came across his frozen body in the ice. DNA tests verified his identity, Wolf.

BLITZER: Fred, thank you very much for that.

Let's go to New York right now. Jack Cafferty is standing by with the "Cafferty File" -- Jack.

CAFFERTY: Thanks, Wolf. "The New York Times" says that Democratic women are running major campaigns in almost half the two dozen of the most competitive House races. Democratic strategists are betting voters unhappiness with the current lot, mostly men, creates an opportunity. The question is will it help the Democrats to have more women running for office in November?

Lisa in Telford, Pennsylvania, "Not unless they have some new, positive ideas. It's patronizing to suggest that women will vote for other women just because they're of the same sex."

Gail in California. "Absolutely. Women have their fingers on the pulse of what's really important, jobs, health care, education, family issues that affect the middle class in particular. The middle class have no advocates demanding free hospitalization, drivers licenses, education and food stamps. They just work and pay the taxes."

Debbie in Cumberland, Maryland. "Not necessarily. The Democrats just need to get in touch with the 70 percent of the American people who want our borders and ports secure and begin to help us middle class people. We just want our kids to have the America we had, not a corporate-owned America. Gender doesn't really matter."

John writes, "I don't think the gender of the candidates matters as much as offering solutions rather than restating problems. And making Howard Dean shut up would be a good idea, too."

Patricia in Palmdale, California. "Yes. Women are half the population. We deserve to have more say. Hell, Jack, you might like being dominated by some women."

What does that mean?

Coming up on "IN THE MONEY" this weekend, find out why the gas- sucking, road-hogging, four-wheel drive for no reason SUVs may finally be going the way of the dinosaur and it can't happen soon enough. We'll talk to an expert who thinks the stock market might be poised for a big rally. He says conditions are right. There's a ton of money waiting to come into the market.

IN THE MONEY airs Saturday afternoon at 1:00, Sunday at 3:00 Eastern Time. We invite you to join us. What do you think that woman meant, Wolf? I would like to be dominated by some women?

BLITZER: Dominated -- something -- I'm not exactly sure what she meant.

Thanks Jack. "IN THE MONEY" -- good show on the weekends. I urge our viewers, check it out, Saturdays and Sundays. Jack is back.

Still to come, an Arab-American candidate speaks out about suicide bombers and splits his own party. Our Mary Snow confronts him. Got some controversial words.

And on the march near the border. Protestors venting their anger about legislation to crack down on illegal immigrants. We're going to have a live report from L.A. That's coming up here in THE SITUATION ROOM.

(COMMERCIAL BREAK) BLITZER: In New Jersey, an Arab-American candidate for local office has become a lightning rod. At issue, comments he made about suicide bombers. Now some fellow Democrats are outraged and others, though, are standing by him. Let's go to CNN's Mary Snow. She is standing by with the fallout. Mary?

MARY SNOW, CNN CORRESPONDENT: Wolf, tomorrow Democrats in Passaic County, New Jersey will hold a special meeting on what would normally be a little noticed election. They're reconsidering their endorsement of an Arab-American candidate after two of the top of the state's Democrats raised red flags over comments about terrorism.

(BEGIN VIDEOTAPE)

SNOW (voice-over): Sami Merhi's phone doesn't stop ringing as he runs for local office in New Jersey. But controversial comments may come back to haunt him. Merhi, an Arab-American who migrated from Lebanon in 1977 said at a fund raiser in 2002 that the hijackers were, quote "crazy fanatics, they're as far from God and Islam as hell itself." But when asked if his feelings extended to Palestinian suicide bombers, he said, quote, "I can't see the comparison."

(on camera): Do you sympathize with suicide bombers?

SAMI MERHI (D), PASSAIC COUNTY, NEW JERSEY: Never, ever. I think anyone -- anyone who uses or hijacks a religion or a faith to kill someone else, that is an ugly thug in my book.

SNOW (voice-over): Merhi says he was misunderstood and that he sees himself as a victim of September 11th.

MERHI: My country was invaded. My godson was taken away. This is home for me. My heart goes to anyone and everyone who is hurt through violence.

SNOW: But U.S. Senator Robert Menendez from New Jersey was so concerned that he wrote to the Passaic County Democratic chairman saying, "If true, Mr. Merhi's remarks are extremely disturbing."

The offices of both Menendez and Governor Jon Corzine say they will not support Merhi. Now Democrats in Passaic County, home to a large Arab-American population are meeting to reconsider whether they should endorse Merhi and Arab-Americans outside of New Jersey are closely watching the outcome.

JAMES ZOGBY, ARAB-AMERICAN INSTITUTE: They're not going to except Sami being removed from the ticket and then go back to business as usual. This will have consequences in Michigan, Ohio, Pennsylvania and other states in 2006. Democrats can't take Arab-American voters for granted.

(END VIDEOTAPE)

SNOW: The Arab-American Institute is comparing Merhi's election to the Dubai ports deal, accusing politicians of using scare politics -- Wolf. BLITZER: Mary, thank you very much.

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