"happening now", the white house raises new questions about republican campaign funding, stepping up attacks against the chamber of commerce of the united states, as well, the democratic natnal committee now accuses the chamber of using secret foreign contributions to influence the upcoming midterm elections. tain a listen: >> karl rove, ed gillespie, they're bush cronies, the u.s. chamber of commerce, they're shields for big business, and they're stealing our democracy, spending millions from secret donors to use republicans to bid for them in congress, taking secret money for their elections, it's incredible, republicans benefiting from secret money, tell the bush chamber and the commerce, stop stealing our money. jon: james rose sen following the uproar over that political ad, live in washington. not just the dnc but president obama himself is -- himself is making that charge. >> that's right and the president continued making this charge even after "the new york times" on friday dubbed it one for which there was, quote, little evidence. here's how it went down, while campaigning for jose sestak in venz, democrat for u.s. senate, obama questioned whether the outside groups funding helicopter-backed candidates like the chamber of commerce, americans for prosperity and american crossroads, that last group supported by gop strategists karl rove and el gistes pee, the president questioned whether they were foreign-controlled. the chamber, which has an annual budget of $200 million, collects 100 grand worth of dues of overseas affiliates, the paper noting there is little evidence in what the chamber does is improper or unusual. the paper also said that liberal organizations like the afl-cio and sierra club also collect funds from overseas sources. >> this part about foreign money t. appears to be peanut, mr. axelrod, do you have any evidence that it's anything other than peanut. sue: do you have any evidence that it's not bob? the fact is the chamber has asserted that but they won't release any information about where their campaign money is coming from and that's at the core of the problem here. >> reporter: all right, we also heard from defense -- defense from karl rove on fox news sunday. do we have that clip? >> the president of the united states accused the chamber of commerce and democratic national committee in its new ad accuses ed gillespie and i of a criminal violation of our law by gaining foreign money and spending it on an american political campaign and they are not one shred of evidence to back up that lie. this is a desperate and i think disturbing trend by the president of the united states to tar his political adversaries with some kind of enemies list. >> the chamber of commerce also says the funds it collects from overseas are strictly segregated as campaign finish laws require that the group enbeginnings to -- group uses to enbeginning in political activities. the white house says the president was making larger point about the need for campaign finance disclosure. jon: what a hornet nest. thank you. jenna: the obama administration says it does not support a nationwide freeze on home foreclosures but the white house is facing growing pressure to step in after evidence surfaced banks have used faulty paperwork to evict homeowners. fox business network's carl casone joins us. talk us through this. what could a for torum mean for the housing market at this point? >> it could spell disaster for the housing market. if you listen to mark zandi, a well respected communist for moody's.com, he will tell you he thought the housing market would start to recover in the third quarter of next year, he's saying 2-3 years out minimum if the moratorium were to be put in place, even if the moratorium were not put in place, you still have the issue of improper foreclosures and improper documentation. this reads like a spy novel, you know, fake social security numbers, lies, the paper trail ending and not being able to be followed up on by the banks, investigations by states attorneys general, class action filed across the country. this entire mess no matter what the outcome, no matter what the white house is going to say about it is going to hurt the housing market. it's a done deal. jen yuen then there's that growing sense of impatience amongst the american public wondering when this is going to get better. is there anything else on the horizon that could either help or hurt the housing market, especially when it comes to those foreclosure? >> one of those things we haven't talked about and need to be tpwaug is the fact that you're going to have more mortgages reseting in the next couple of years. a lot of the folks that got these great smoking deals on their homes got seven-year arms, five-year arms and a lot of the mortgages are going to be reseting in the next couple of years, so you've already got hundreds of thousands of foreclosures in the pipelines, some are going to have to be either thrown out in court or have to be reworked entirely, then you've got this next issue of the mortgages coming due, the interest-only mortgages, all these crazy products that we had three years ago, now those are going to be flooding into the market over the next couple of years. luckily, david axelrod, he was on face the nation and eric kantor was on fox news sunday, coming out and speaking about the issue. that's good enough right now for the markets and for analysts to say okay, if they're going to be discussing this, if it's going to be on the front page of the paper tomorrow morning, maybe we can stop some of the problems that could hitting housing market which as you know is so fragile right now. jenna: excellent point. cheryl, see you on the fox business network today. thank you very much. >> thanks jenna. jon: breaking right now n. carlsbad, california, elementary school student heading back to class, just three days after witnessing a shooting during recess. police say a 40-year-old -- 41-year-old gunman shot two girls in the article on friday as he emptied his weapon into a crowd of screaming first graders. harris is on the story, at the breaking news desk. >> reporter: that's really the complicating factor, the crowd of little young kids, and a second grader maybe put it best, quote, i saw two people got shot and then all i saw was red. these children are traumatized, teachers and faculty wanted to get kids back into the classroom as soon as possible because they want to give them the kind of support they will need to go forward. many psychiatrists saying many kids will get over it in a week or two with counseling but those closest to the bullets flying will have a harder time. they are holding crisis crowns ling meetings today with children, trying to get them back into normality, but a couple of things, they're going to schedule a student picnic and story time in each classroom today to try to reach out with those little witnesses who saw a gunman open fire and they still, police say, have still not determined motor five why he chose this school, why he chose these little children. thirty-one-year-old brendono brendan o'rourke is the suspect, he was picked up, saw in some of the video he was arrested three hours after this happened, right there on the campus and the kids today, tpwhabg their classrooms with lots of support at kelly elementary in carlsbad, california. back to you guys. jon: we are lucky it wasn't worse. >> the two little girls, by the way, are expected to recover from their injuries, the two who are shot but no fatalities but you know as a parent it's shruf. jon: that's for sure. harris faulkner, thank you. jenna: to chile, chile's 33 trapped miners may be days away from freedom, finally. rescue teams say they hope to start pulling them out by we, just two days from now. right now, they've just finishing reinforcing an escape shaft under -- into the ground underchamber and will pull up the minor one by one. that process could take 48 hours. the men should been -- have been stuck below ground for three months now. jon: we're going to take you to the white house, the president is preparing to make some remarks, he's in the rose garden. let's listen in: >> mayor villaraigosa and economists and verse from -- engineers from across the country to discuss one of america's greatest challenges, our crumbling infrastructure and the urgent need to put americans back to work, upgradeing it for the 21st century. we're also joined today by two former transportation secretaries, both political parties. sam skinner, who served under president george h. w. bush, and norm mineta, who served in the cabinet of both president clinton and president george w. bush, they're here today because they are passionate about this task. their cooperation, and indeed this country's very history, proves that this is something for which there has traditionally been broad bipartisan support. sam and norm have been leading a bipartisan group of more than # on experts who just last week released a call to action, demanding a fundamental overhaul of how america approaches funding and building our infrastructure, and today, my treasury department, my council of economic advisers, have released our own study, and these reports confirm what any american can already tell you, our infrastructure is woefully insufficient and outdated. for years we have deferred tough decisions and today our aging systems of highways and byways, air routes and rail lines hinder our economic growth. today the average american household is forced to spend more on transportation each year than food. our roads, clogged with traffic, cost us $80 billion a year in lost productivity and wasted fuel. our airports, choked with passengers, cost nearly $10 billion a year in productivity losses from flight delays, and in some cases our crumbling infrastructure costs americans lives. it should not take another collapsing bridge or a failing levy to shock us into action. we're already paying for our failure to act, and what's more, the longer our infrastructure erodes, the deeper our competitor edge erodes. other nations understand this, they are going all in. today, as a percentage of gdp, we invest less than half of what russia does does in their infrastructure less than one third of what western europe does. right now, china is building hundreds of thousands of miles of new roads. over the next ten years, it plans to build dozens of new airports, over the next 20, it could build as many as 170 new mass transit systems. everywhere else, they're thinking big, they're creating jobs. today. but they're also playing to win tomorrow. so the bottom line is our short sightedness has come due. we can no longer afford to sit still. what we need is a smart system of infrastructure equal to the needs of the 21st century, a system that encourages sustainable communities with easier access to our jobs, to our schools, to our homes. a system that decreases travel time and increases mobility. a system that cuts congestion and ups productivity. a system that reduces harmful emissions over time and creates jobs right now. so we've already begun on this task. the recovery act included the most serious investment in our infrastructure since president eisenhower built the interstate highway system in the 1950s, and we're not just talking new and restored roads and bridges and dams and levy, but we're also talking a smart electric grid and high speed internet and rail lines required for america to compete in the 21st century economy. we're talking about investments which impacts are both immediate and lasting. tens of thousands of projects employing hundreds of thousands of workers are already underway across america. we're improving 40,000 miles of road and rebuilding water and sewage systems, we're building a smarter, stable, electric grid across 46 states that will increase access to renewable sources of energy and cut costs for customers. we're moving forward with projects that connect communities across the country to broadband internet and connect 31 states via a true high-speed rail network. what's more, a great man of these projects are coming in under budget. by investing in these projects we've created hundreds of thousands of jobs but the fact remains that nearly one in five construction workers is still unemployed and needs a job. and that makes absolutely no sense at a time when there's so much of america that needs rebuilding. that's why last month i announced a new plan for upgrading america's roads, railways for the long term. over the next six years, we will rebuild 150,000 miles of our roads and enough to circle the world six times. we will lay and maintain 4000 miles of our railways, enough to stretch from coast to coast. we will restore 150 miles of run ways and advance a next generation air traffic control system that reduces delays for the american people. this plan will be fully paid for. it will not add to our decifit over time. and we are going to work with congress to see to that. it will establish an infrastructure bank to leverage federal dollars and focus on the smartest investments. we want to cut waste and bureaucracy by consolidating and collapsing more than 100 different often donica tiff programs and it will change the way washington works by a different path of funding and maintaining our infrastructure. we've got to focus less on wasteful earmarks, outdated formulas, we've got to focus more on competition and innovation. less on short sighted political priorities and more on our national economic priorities. investing our infrastructure is something that members of both members of political parties have always supported, it's something that groups ranging from the chamber of commerce to the afl-cio support today and by making these investments across the country we just won't make our economy better over the long haul we'll create good middle class jobs right now. there's no reason why we can't do this. there's no reason why the world's best infrastructure should lie beyond our borders. this is america. we've always had the best infrastructure. this is work that needs to be done. there are workers who are ready to do it. all we need is the political will. this is a season for choices and this is the choice, between decline and prosperity and between the past and the future. our future has never been predestined, it has been built on the hard work and sacrifices of previous generations. they invested in yesterday for what we have today. that's how we built canals and roads and highways and port that is allowed our economy to grow by leaps and bounds, that's how we led the world in the pursuit of new technologies and innovations, that's what allowed us to build the middle class and lead the global economy in the 20th century and if we're going to lead it in the 21st, that's a vision we can't afford to lose sight of right now. that's a challenge that's fallen to this generation. that's the challenge that this country is going to meet, and with the help of these gentlemen behind me and i hope strong bipartisan support, i have no doubt that we will meet these challenges. thank you very much, everybody. jon: the president there in the rose garden with current members of his administration and members of former administrations, as well as outside political leaders, you saw there governor ed rendell of pennsylvania, for instance, talking about his push to upgrade the nation's infrastructure. the question is, how do you pay for it. he says it will be paid for as this process goes along. he wants to lay new roads, improve bridges, transportation systems, all across the country, and you might take note there, he made a very nice mention of the chamber of commerce. if you were watching james rosen's report early ner the hour, the president has some problems with the u.s. chamber of commerce right now, but he gave them a nice plug in that speech. we'll continue to update you on what the president wants to do regarding transportation on "happening now". jenna: now to north korea, the next leader of north korea making his official debut, king jung un sitting next to the current ruler, his father jim -- kim jung-il as they presided over a massive military parade, one of the largest ever in this massively secret country. greg palkot has more on this. tell us what you saw. >> reporter: jenna, we were remarkably close to the two, maybe 75 years, the young kim jung un made the right moves, clapping, waving, talking to the general. from time to time, you got the feeling he would be doing his reported favorite task, watching nba basketball. as for kim jung-il, as he walked -- he looked his age, he would grab the bannister and limping. maybe we'll see this transition sooner rather than later, jenna. jenna: any reaction from the neighboring countries on this announcement? >> reporter: it's been swift. the military and political although i didn't to the north of north korea kwrarbgs china, offered an invitation very quickly to kim jung-il and what they called his new leadership circle, the sun, and -- the son, and also from the rival of north korea, south korea, was not too positive t. called on north korea to stop the nuclear program, the suspect northie program and was dismissive of any generational change here. jenna: we only have 30 seconds but any reaction tphrort koreans about this leadership change? >> reporter: we've been trying to get that. we've been out on the street talking to people as they lay flowers, at the statue for the founder and other places. it's tough when you got government minders in tow. you can imagine the general opinion, the unanimous opinion was positive about this boss-to-be. there are changes that need to be made, however, as we looked around the country and we looked around the country and saw not just a young face but a lot of old faces entrenched in the government here, that is status quo that would prevent anything revolutionary here. jenna: thank you greg. jon: a fox news alert and major announcement from israel. benjamin netanyahu, the israeli prime minister, is offering a moratorium, or to continue the moratorium on any settlement building in the disputed lands if the palestinians will recognize israel as a jewish state. as you know, the palestinians have been loathe to do that up until now. we will see whether they will extend -- how they will respond to this offer from the israeli prime minister, benjamin netanyahu offers to stop all settlement construction if there is a recognition of the jewish state and it is just crossing the wires that mahmoud abbas, the palestinian president, at least the president of the faction in the disputed territories, in the west bank, is saying no to this offer. again, the back and forth continues in that part of the world. we'll be back with more coverage, straight ahead. jon: major developments now in afghanistan where afghan president hamid karzai confirms he's meeting with taliban leaders in a push for peace. jennifer griffin is live in washington. how serious are these talks with the taliban, any way to know, jennifer? >> reporter: it's clear that president karzai wants to make you think they are serious. he has set up a 70-member council to focus on reconciliation with the taliban. he told cnn's larry king in an interview, quote, we have been talking to the taliban as countrymen to countrymen, not as a regular official contact with the taliban, with a fixed address, but rather unofficial personal contact has been going on for quite some time. the question is how senior are the taliban members that they are speaking to. i am told these are really fledgling efforts, jon. jon: why is he being so public about this, why admit he's talking to the taliban now? >> don't forget president karzai has an increasingly strained relationship with the obama administration right now, and became very nerv