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Sides at a Standstill; Government Shutdown Fallout; Interview with Congressman Steny Hoyer of Maryland; Scare At Jacksonville Intl. Airport; New York Highway Brawl

Aired October 2, 2013 - 08:00   ET


MICHAELA PEREIRA, CNN ANCHOR: A community now mourning the loss of a family.

CHRIS CUOMO, CNN ANCHOR: Your NEW DAY continues right now.



ANNOUNCER: What you need to know --

REP. NANCY PELOSI (D-CA), MINORITY LEADER: They took hostages by shutting down the government. It's pathetic. It's not responsible.

ANNOUNCER: What you just have to see.

UNIDENTIFIED MALE: I was holding it like this and it shot the nail in, and it bounced and then hit my chest and went off again.

ANNOUNCER: This is NEW DAY with Chris Cuomo, Kate Bolduan and Michaela Pereira.


CUOMO: Good morning. Welcome back to NEW DAY. It's Wednesday, October 2nd, 8:00 in the East.

Coming up this hour: day two of the government shutdown -- 800,000 federal workers and this and their families still not getting paid. Public opinion polls say the people who put them in that situation are acting like spoiled children.

So, we decided to ask actual children what they would do, how did they see the situation. You'll be amazed at what we can learn from these kids.

KATE BOLDUAN, CNN ANCHOR: And then, an SUV versus a pack of motorcycles. Two men are in custody, one man now paralyzed and now the driver of the SUV could be facing charges. We have an update on that developing story ahead.

PEREIRA: The NEW DAY award of the day award today goes to a Tennessee fencing instructor who foiled his robbery with his foil and his pants. Are you confused? It will all make sense, we hope, when John Berman joins us.

CUOMO: He's charging.

BOLDUAN: First up, let's go back to the lead story; compromise now seemingly a dirty word. Congress still in their standoff on the shutdown without an end in sight. And Americans seem to be without hope that their government will ever work for the people again.

Could both sides come together at hour 32 of the shutdown?

Let's get to Brianna Keilar who has the latest from the White House this morning.

Good morning, Brianna.


And this shutdown affecting the president's travel schedule. He was supposed to take a trip to Asia with four stops on it. Two of those have been canceled. He called the heads of Malaysia and the Philippines last night to let them know that he will not be coming. As of now, though, his stops in Indonesia as well as Brunei still on the schedule, but certainly a shortened trip due to this showdown over the shutdown.


KEILAR (voice-over): The impasse in Congress is no closer to being resolved this morning.

UNIDENTIFIED MALE: The motion to table is agreed to.

KEILAR: With nearly 800,000 federal employees off their jobs for a second day, President Obama is blaming Tea Party Republicans for shutting down the government over their objections to Obamacare.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: They demanded ransom just for doing their job.

KEILAR: He's urging Congress to act.

OBAMA: Allow the public servants who have been sent home to return to work.

KEILAR: Tuesday night, House Republicans tried to fund the government piecemeal, starting with veterans, national parks and the city of Washington, D.C.

REP. PHIL GINGREY (R), GEORGIA: We're ready to talk. And they have rejected that. And we have to send that back every day.

KEILAR: Their first attempt failed. Most Democrats voting no.

PELOSI: This is a waste of time. It's not going anyplace. KEILAR: What's worst, we're about to hit the debt ceiling. Treasury Secretary Jack Lew again warned Congress if it doesn't raise the U.S.'s ability to pay its debts, it will default October 17th.

GOP leaders blamed Democrats for refusing to sit down and negotiate.

REP. JOHN BOEHNER (R-OH), SPEAKER OF THE HOUSE: My goodness, they won't even sit down and have a discussion.

KEILAR: President Obama said his signature program isn't up for discussion.

OBAMA: The Affordable Care Act is still open for business, and it is here to stay.

KEILAR: Frustrated taxpayers made sure their voices were heard, too.


UNIDENTIFIED MALE: I'm tired of a Congress that can't govern this country. You guys are worthless!


KEILAR: And, Chris, some new poll numbers out this morning, from CNN/ORC showing that 56 percent of Americans think that if the debt ceiling isn't increased, that would be bad. Fifty-one percent to 43 percent saying it's more important to raise the debt ceiling than to delay Obamacare. That is some public opinion that the White House is sort of banking on to increase pressure on these House Republicans.

CUOMO: All right, Brianna. Thank you very much. Appreciate the reporting and the perspective.

Well, here's what we know. The shutdown fallout is only just beginning. Many government services and agencies have been hit already and hit hard. The shutdown could cost about $1 billion a week in pay for the hundreds of thousands of furloughed workers.

Rene Marsh has more from the World War II memorial. Now, that's one of the sites that's supposed to be closed.


PROTESTERS: We all are essential!

RENE MARSH, CNN CORRESPONDENT (voice-over): Day two of the government shutdown!

PROTESTERS: Furlough Congress!

MARSH: Outrage across the country already reaching a fever pitch.

PROTESTERS: We want to work!

UNIDENTIFIED MALE: Everyone is angry. I mean angry. LINDA LAUGHLIN, FORLOUGHED FEDERAL EMPLOYEE: I came here to work today and I'm not allowed to. I'm not essential, none of us are, and I'm doing the walk of shame.

MARSH: More than 800,000 federal employees likely taking that same walk or drive.

NATASHA ROZIER, FORLOUGHED CENSUS BUREAU EMPLOYEE: This is my hand is the notice of furlough all employees were given this morning.

MARSH: Natasha Rozier is now a furloughed Census Bureau employee trying to support a 5-year-old daughter.

(on camera): What do you tell your daughter, I guess, at this point?

ROZIER: She's too young, at 5 years old you don't understand finances is going to be difficult for mom and dad.

MARSH: Also in jeopardy, hundreds of patients, including children with cancer, who will have to wait until after the shutdown to start clinical trials with the National Institutes of Health. Our nation's capital looking more like a ghost town.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Here at the Pentagon, a lot of empty hallways. Defense Secretary Chuck Hagel says he's got the authority to bring back thousands of furloughed civilian workers who support the troops -- doing everything from purchasing the weapons to helping them with housing. And key House Republicans agree. Now the question, will the White House sign off?

MARSH: A question these World War II veterans aren't waiting to be answered.

UNIDENTIFIED MALE: We're going in, brother.

MARSH: Despite the government shutdown, these veterans didn't let their patriotism get shut out. Moving past the barricades to their marching song, these vets, some in wheelchairs, kept their plans of visiting the World War II Memorial on Tuesday.

Meanwhile, thousands of preschoolers are at home instead of in classrooms.

JOHN ZARRELLA, CNN CORRESPONDENT: I'm in a classroom at the Head Start Center in Brooksville, Florida, where 135 children from low income families are provided with education, nutrition and even health care. Well, their families got this notification today that because of the government shutdown, this facility is going to be closed as of Friday.

MARSH: Doors are potentially closing at Service Academy Stadium, the Army, Navy, Air Force and Coast Guard, suspending their football games this weekend if the government is still shut down. An extended shut down could jeopardize two Notre Dame football games and affect their chances of making it to a bowl game.


BOLDUAN: All right. Rene Marsh, thank you so much for that.

So, are the House and the Senate any closer to a solution that would end the shutdown? Let's get some answers.

Joining me now, the number two top Democrat in the House, Congressman Steny Hoyer of Maryland.

Congressman, it's great to see you. Thanks so much for coming in.

REP. STENY HOYER (D), MARYLAND: Hi, Kate. Good to be with you always.

BOLDUAN: Thank you very much.

So, we know that House Republicans -- they are moving with the strategy, this piecemeal approach. And as Eric Cantor said on CNN last night, no one disagrees with funding the V.A., no one disagrees with funding the District of Columbia.

So, why is that not an acceptable solution to getting out of this?

HOYER: Well, of course, the problem is the budget that the Republicans passed dealt with funding all of the government. They've never gone to conference on the budget so we have no agreement on it, but this piecemeal approach is going to be dragged out over a long period of time.

And you've just done a litany of adverse consequences as a result of shutting this government down that apparently our Republican friends did not anticipate, that Eric Cantor as the majority leader, has the ability to put a clean C.R. That simply means a bill which will fund all of government at a level that is the Republican level of funding. He has the opportunity to put that on the floor, pass it, and it will go to the president and be the law, and we can open government tomorrow.

So, that we believe that this piecemeal dragged out item by item approach is to inefficient, so undermining of the operations of government, the growth of our economy, our national security, all of that litany you just set forth -- 57,000 Head Start children shut out of head start, kids who can't get into cancer treatment, women, infants and children who can't get nutritional programs. That makes no sense and they're not dealing with that.

BOLDUAN: So, Congressman, let me ask you -- let me ask you about that clean C.R., that clean funding bill that you're looking for. We are seeing some cracks within the Republican Party. Chris talked to Michael Grimm earlier in the show, we've heard this from Peter King, they're not happy how the House Republicans are approaching this shutdown.

Have you been reaching out to them?

HOYER: I have talked to them, yes. And, Kate, it appears we may be getting to a place where they're going to be enough rational Republicans to join with the Democrats and pass what is a continuing resolution which will fund government, get us open, give us the opportunity over the next six weeks to see if we can come to an agreement for a final resolution for the balance of the year, a cooling off period, if you will, that makes sense for the American people, makes sense for the government, makes sense for the country.

You know, our Republican colleagues for so long said if it doesn't include a health care repeal or delay, we won't vote for it. Well, what are they doing today? And yesterday? They offered bills which had nothing to do with health care because, finally, they've come to grips with the fact that the responsible action to take is to pass legislation which will fund government.

But they ought not to do it in a piecemeal fashion. They ought to do it -- get it done and then we go to the negotiating table and see if we can reach a final agreement.

BOLDUAN: And if it doesn't get done, we're going to be -- the country is going to be looking at a dual crisis of not only the shutdown but also the debt ceiling. Would you support combining those two to try to get it all fixed in one package?

HOYER: If you're asking me would I vote for a clean continuing resolution to keep government funding and raising the debt limit that is clean, the answer to that is absolutely yes. And we're --

BOLDUAN: Combining them at this point, do you think -- do you think it helps getting past all of this, because we're facing a catastrophe is what economic analysts say if we do not raise the debt ceiling. Do you think that the House and the Senate, I guess, need that kind of brutal deadline in order for anyone to start negotiating?

HOYER: Kate, I can speak for the Democrats. If that was, if such a bill were on the floor, Democrats would vote for it, in other words -- when we talk about clean, we simply mean there aren't other issues --


HOYER: -- of political difference put on a bill, but if you had an appropriating bill for the short term spending gap, keep government open, keep government serving the American people and attached to that was an increase in the national debt limit ceiling. We didn't have a crisis coming October 17th and the ability of the United States of America to pay its debt -- then, yes, absolutely I think the Democrats would vote for that in overwhelming numbers, hopefully joined by the Republicans.

That would be a responsible way to go. It would give confidence to the marketplace and it would give confidence to those who deal with us overseas that America, can, in fact run its business on a reasonable basis.

BOLDUAN: So, then, let me ask you this, Congressman, I'm hearing this quite often, where is the president in this? Because we know from past fights and I was there on Capitol Hill covering the last debt ceiling fight, right, chasing you down the hall.

HOYER: Right.

BOLDUAN: We know from the past fights that making speeches does not make a deal. Sitting down at a negotiating table and trying to reach compromise makes a deal. What we're seeing now is a lot of speeches.

HOYER: There was a headline which I loved, it was yesterday, I forget which publication it was. And essentially what it said was the president can't reach out an open hand to the Republican's clenched fist. Republican's response has been my way or the highway. That's not a way you can negotiate.

In my view, the president put on the table, frankly, just a few months ago a balanced budget deal which he really reached after discussing with a number of Republican U.S. senators that adopted some of their premises, adopted some of our premises, it was never taken off the table, never considered.

BOLDUAN: But we just heard from Michael Grim, Congressman, that the president is not negotiating. That Republicans need to see him sitting down in a negotiating table, not doing in their view campaign- style speeches, trying to put all the blame on them. You know that.

HOYER: Now, I do know that and I know that's their position.

But the fact is this president has negotiated in my opinion more than any other president with whom I've served. If you look at the fact with the Republican United States senators, you heard about these dinner meetings, these lunch meetings, meeting after meeting after meeting. He had meeting after meeting after meeting with Mr. Boehner, Mr. Cantor, Ms. Pelosi, myself, Senator McConnell, Senator Reid, for months, frankly, trying to get to an agreement.

He and Mr. Boehner got to an agreement and frankly, what happened is, Mr. Boehner brought that back to his Republicans and they said no -- just as they said no to the agreements, not the agreement but the plan that he himself had, Speaker Boehner had.

BOLDUAN: So, Congressman, very quickly --

HOYER: So very tough to negotiate with people who won't negotiate.

BOLDUAN: So, real quick. Do you think you're going to be heading over to the White House to sit down with John Boehner, the president and the rest of the leadership this week?

HOYER: I don't know the answer to that, Kate.


HOYER: John Boehner I think frankly is willing to negotiate. I think what he doesn't have is the support of his caucus and that's unfortunate. BOLDUAN: OK. Congressman Steny Hoyer, the number two Democrat in the House of Representatives -- always great to have you on NEW DAY. Thank you so much.

HOYER: Thanks, Kate.

BOLDUAN: Of course.


CUOMO: All right, Kate, we're going to take a turn now.

A story breaking overnight -- hours of chaos for passengers just trying to get to their destination from Jacksonville's airport. Evacuations after two suspicious packages were found, tied up the airport for hours. But winds up, it was all a hoax. EARLY START anchor, John Berman is here. So, that's what it was?

JOHN BERMAN, CNN CORRESPONDENT: Yes. Big news and big developments all happening just this morning, Chris. We should say there were some genuinely scary moments in the Jacksonville Airport when word came down that something suspicious had been found there. But, now, with federal law enforcement source tells CNN they x-rayed a bag, found no explosives. There is an arrest and a suspect facing charges, but it's for making a fake bomb threat.


BERMAN (voice-over): A heart-stopping scene followed by chaos.

JENNIFER ALEXANDER, AIRLINE PASSENGER: Didn't really hear too much, just everybody started running. A lot of people that worked at the counters started ducked behind where the packages go and just everybody started to run and saying to get out.

BERMAN: And then hours of waiting, the Jacksonville International Airport was entirely shutdown last night after authorities uncovered two suspicious packages. A tweet from airport officials read "Due to police activity regarding suspicious packages, Jacksonville Airport has been evacuated. Please check with airline for flight updates."

Authorities say the packages were uncovered in two separate locations, one in the airport garage and one in the airport terminal, itself. And at least one of them was potentially dangerous.

SHANNON HARTLEY, JACKSONVILLE SHERIFF'S OFFICE: It was a device that, you know, certainly you had some destructive nature to the degree that they needed to be taken off site to be rendered safe which is what we did.

BERMAN: But now, federal law enforcement officials are telling CNN that it was all a hoax. A bag was searched and then x-rayed, but no explosive device was found and there is no next to terrorism. That federal law enforcement official also told CNN one person will likely be charged with state charges for making a bomb threat. Initially, local authorities thought there was another person involved, but that turned out not to be the case.

ERIC SULLIVAN, AIRLINE PASSENGER: We saw them arrest a guy earlier, throw the guy down to the ground, right in front of us at the garage, and that kind of started a very long wait.

BERMAN: As for the hundreds of stranded passengers left at the paralyzed airport --

UNIDENTIFIED MALE: Everybody was lined up and they said, OK, we have the buses. We're going to take you out of here 30 at a time, and there was about 300 of us. Everybody kind of looked around and it's like, you know, who goes? What's the deal?


BERMAN: What a mess. All those people had to go through all of that for no real reason, a hoax. A federal law enforcement source says it appears again that that suspect was acting alone. And stupidly.

KATE BOLDUAN, CNN ANCHOR: Talk about insult to injury. Your entire travel day ruined and then this. Better safe than sorry. How many more cliches can I say in one live shot.

CUOMO: Well, I'll you what, also, you know, as tough as it was, this is a good news story, because I'll take a hoax over the real thing any day.

BOLDUAN: That's very true. Thanks, John.

We got a lot of news developing at this hour, so let's get straight to Michaela for the latest headlines.

MICHAELA PEREIRA, CNN ANCHOR: All right. Here we go. Making news, Pope Francis again grabbing headlines with a new provocative interview discussing change within the Catholic Church. In an interview with Italy's "La Repubblica" newspaper, he calls effort to convert people solemn nonsense (ph) adding, "You have to meet people and listen to them." Today, he continues meetings with top cardinals about the future of the church.

A Louisiana man out of prison. His murder conviction and sentence vacated after more than four decades in solitary confinement. Herman Wallace (ph) has long denied the murder he was part of the so-called "Angola Three." Inmates who tried to expose injustices at a Louisiana State penitentiary.

Wallace is terminally ill with liver cancer. His attorney says it's important for him to be now with loved ones.

New clues in a cold case have an elderly couple behind bars this morning. This couple, 71-year-old Gerald Uden (ph) and his 74-year- old wife, Alice, are facing first-degree murder charges. He is accused of killing his ex-wife and her two children in Wyoming back in 1980. Alice is now charged with killing her ex-husband and dumping his body in an abandoned goldmine in Laramie County, Wyoming, sometime in the mid-1970s. A violent chain reaction crash, look at that, involving two school buses in Tacoma, Washington caught on surveillance camera. Thankfully, no children aboard. Troopers say the female bus driver clipped (ph) the pick-up truck before it rear-ending another bus. No one was injured, but she was ticketed for negligent driving.

Now, officials from Tacoma Public Schools are investigating whether she was wearing her seatbelt properly.

I want to introduce you to a guy who is tough as nails. That is Eugene Rakow, a carpenter from Minnesota. He was working on a deck for a neighbor, prepare yourself, he shot himself in the heart working with a nail gun. There's the x-ray. Amazingly, it missed vital veins. Got the big old organ right there. He had open heart surgery. There he is. He's back home and fine. He has his wife alongside his seven kids. That is a crazy story and what's even more troubling, it's not completely rare.


PEREIRA: Those kind of accidents happen a little too frequently. Chris and I were talking about --


PEREIRA: -- hair trigger on those nail guns. It makes you grab your chest.

BOLDUAN: I know. It's like aw!

PEREIRA: Happened to a friend of mine's dad and he miraculously recovered completely as well. Upsetting. I'm going to use a hammer always.

BOLDUAN: Good idea.

CUOMO: Nail gun is much faster. I get it. But there are risks, apparently.

All right. So, let's go to Indra Petersons now keeping track of the latest forecast for us. Indra, science.

INDRA PETERSONS, AMS METEOROLOGIST: Science. And tropical storms out there. But first, let's start with the good news. It is beautiful in the northeast again today. We're talking about temperatures very similar to yesterday by a good 10 to 15 degrees above normal. All thanks to this dome of high pressure that's in place bringing all that warmth in from the southeast all the way up into the northeast.

Notice, though, behind it, we are looking at a system making its way through and that will change our weather pattern. Even though it will stay warm, we'll be talking about a couple showers first tomorrow and through the Midwest. Behind that, we're going to be talking about and kind of spreading into the northeast by Friday or so.

Now, let's talk about what is going on in the tropics. Little bit of an upgrade now already. Now, about 40 percent in the Caribbean of a chance for development. Yes. We have Jerry. It's way out in Atlantic. It's going to stay there. It's currently a tropical storm, but it's actually this guy we're going to continue to watch. Let me show you the spaghetti models. I'll show you what that means. It's all the different models where it thinks this guy could go as it develops.

Some of them bring it to the Yucatan, some of them bring in to Houston, and some of it curve it even into panhandle of Florida. So, let's talk about two of these models. And the first one, we're going to take you towards the European model, it looks like, as we get through right around Saturday evening. We could see this make landfall as a weak (ph) depression.

This would be like New Orleans into the lock state (ph). The second model here I'm going to bring you out west is actually going to be bringing a little bit farther east, kind of concentrating on the Florida panhandle. That one still, a very weak tropical storm. Either way, though, again, it still shows us that things can develop late in the season. Something we're going to be monitoring as we go through the weekend

BOLDUAN: Quiet so far. We'll see what happens now. All right. Thanks, Indra.

Coming up next on NEW DAY, a brutal run-in on a busy New York City street leaving two bikers in custody, one paralyzed in a coma. Questions today as to what happened after an SUV collided into that pack of motorcyclists and more details on the pursuit that followed.

CUOMO: And you know, and we keep saying in Congress, they're acting like kids, you know? So, we went and we spoke to kids to see what they think about the shutdown, what would they do, and it is amazing what we're able to learn from these nine-year-olds. Great day. Great to listen to, too.


CUOMO: Oh, I forgot to mention something. The members of Congress when the government is shut down and they send people home to their families with no pay, they still get paid.


UNIDENTIFIED KID: They don't (ph) do another job?



CUOMO: Motorcycle mayhem in Manhattan. Now, two people under arrest facing charges for a police say was their role in the terrifying episode. The whole thing caught on video. A man driving with his wife and two-year-old daughter apparently chased, surrounded by a battery of bikers, a bloody confrontation followed. Big question now is, who's to blame. Susan Candiotti joins us with the story -- Susan. SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: There are still so many questions, you know? How it started? How it ended. Investigators trying to figure out how many people may be responsible for a biker ride that got way out of hand.


CANDIOTTI (voice-over): Two motorcyclists charged by police in connection with a disturbing incident caught on tape along a Manhattan Highway over the weekend. It ended when a motorcycle gang dragged a New York man from his vehicle and attacked him while his wife and baby looked on.

Police say the driver of the SUV called 911 several times before and after two o'clock Sunday reporting a gang of motorcyclists driving erratically. This biker, Christopher Cruz (ph), is under arrest for several charges, including reckless endangerment after allegedly causing an SUV to hit him. It set off a violent chain of events ending in a frightening attack.

Forty-two-year-old Allen Edwards (ph), the helmeted man seen on the right pounding on an SUV turned himself in to police Tuesday. Edwards is charged with reckless endangerment, criminal mischief, and menacing. When the video cuts off, police say the driver is pulled out and assaulted. But he's not the only victim of the dramatic ordeal that played out on New York City's west side highway.

Watch what happens earlier when the SUV was still trying to get away from bikers. Edwin Mieses (ph) was dragged underneath the SUV.

YOLANDA SANTIAGO, INJURED BIKER'S MOTHER: All of his ribs fractured. His lungs are so badly bruised that he's still on the ventilator.

CANDIOTTI: Mieses seen here in a Facebook page dedicated to him is now in critical condition.

DAYANA MIESES, INJURED BIKER'S WIFE: My husband got off his bike to help the guy. And, whatever he did, he got scared, he went, peeled off, and he paralyzed my husband on the way.

CANDIOTTI: The driver of the SUV has not been charged, but NYPD commissioner, Ray Kelly isn't ruling it out.

RAY KELLY, COMMISSIONER NYPD: It depends on whether or not the vehicle was being attacked, whether or not you think you're being attack, whether or not your wife and child were in the car. We have to look at the brutality of the circumstances and that's what we're doing.


CANDIOTTI (on-camera): And while police are sorting things out, a debate going on in social media, relatives of the biker who's in critical condition saying they want it known he's a victim, too. Others weighing in that the bikers put themselves at risk and that the driver of that SUV was fully justified in trying to protect his family. And quite frankly, who can blame him?

BOLDUAN: That's a good point. That's a mess, a mess, a mess. All you can say about it. Thanks so much, Susan.

CUOMO: All right. Coming up on NEW DAY, you're about to meet an extraordinary group of fourth graders, nine years old. What do they think about the shutdown? They say they know what's going on, they know what it means, and they know how to solve it. And guess what, unlike the rest of us who just want to go after the guys down there, they want to be like the members of the Congress. Why? We'll tell you.


UNIDENTIFIED KID: You get money for being in politics?

CUOMO: I know. They pay you to go down there and have all this fun. Who knew?

UNIDENTIFIED KID: Can I run right now?