Transcripts For WHYY PBS NewsHour 20140722

The charter and traditional schools come together. Woodruff those are just some of the stories were covering on tonights pbs newshour. Major funding for the pbs newshour has been provided by at bae systems, our pride and dedication show in everything we do; from Electronics Systems to intelligence analysis and cyber operations; from combat vehicles and weapons to the maintenance and modernization of ships, aircraft, and critical infrastructure. Knowing our work makes a difference inspires us everyday. Thats bae systems. Thats inspired work. Ive been around long enough to recognize the people who are out there owning it. The ones getting involved, staying engaged. They are not afraid to question the path theyre on. Because the one question they never want to ask is, how did i end up here . I started schwab with those people. People who want to take ownership of their investments, like they do in every other aspect of their lives. And the william and flora hewlett foundation, helping people build immeasurably better lives. And with the ongoing support of these institutions and. This program was made possible by the corporation for public broadcasting. And by contributions to your pbs station from viewers like you. Thank you. Ifill its been five days since a Malaysian Airlines plane was shot down over eastern ukraine, and today, 200 of the 298 victims reached the first stop on the way home. Neil connery of independent Television News filed this report from ukraine. Reporter after a 17hour journey, the train carrying the bodies of flight mh17s victims finally arrived in kharkiv. A former tank factory in the soviet era turned into a makeshift morgue, now offering some sort of sanctuary before the final journey home. There was at last here dignity for the dead. One malaysian official on board the train told me great care is being taken here. They were taken from train to the building because theyre going to make sure that it was kept properly so that when reporter most of the victims from flight mh17 are now finally under the protection of the ukrainian and dutch authorities in this site behind me. Their families have had to wait five long and agonizing days for this to happen, but they are now finally about to head home. Back at the crash site, International Observers say they fear the aircrafts wreckage may have been tampered with. The other day when we were at the cockpit section, when we were leaving, we did see workers using a dieselpowered saw to get a closer look at the fuselage. We cant draw any conclusions, thats not our role, but its an observation that we made. Reporter the black box flight recorders were finally handed over to the malaysian authorities by the prorussian militia in donetsk in the early hours. Theyre now being sent to air accident investigators in britain to be downloaded, for the dutch to then analyze them. A small Memorial Service was held next to the wreckage. The 298 lives extinguished at 33,000 feet last thursday were remembered by villagers. The bodies of those victims will leave this makeshift morgue behind these gates and return to the netherlands tomorrow, each one laid in a coffin. Ifill later, a european monitor said his team saw no sign of any attempt to recover the human remains still at the crash site. Well turn to the days diplomatic developments, later in the program. Woodruff and in other news this day, president obamas nominee to head the department of Veterans Affairs promised today hell work to sort out a scandal over health care delays. Former procter and gamble c. E. O. Robert mcdonald appeared at a Senate Confirmation hearing. He said the challenges include long treatment delays, falsified appointment records and the v. A. s very culture. The departments problems with access, transparency, and accountability, and integrity are all welldocumented. Theres a lot of work to do to transform the department. It wont be easy, but it is essential and it can be achieved. The seriousness of this moment demands action. Woodruff if mcdonald is confirmed, hed replace retired general eric shinseki, who resigned in may under mounting pressure. Meanwhile, Senate Majority harry reid said today theres been some progress on congressional funding to address the v. A. s problems. Ifill researchers in the u. S. And britain say theyve taken a big step toward developing future drug treatments for schizophrenia. They reported today the largest ever genetic study of the disease has identified 108 d. N. A. Markers. Schizophrenia makes it difficult to distinguish between what is real and what is not. It affects one of every 100 people and, in the u. S. Alone, costs about 60 billion a year to treat. Woodruff the president of nigeria, goodluck jonathan, held his first meeting today with parents of girls abducted by boko haram militants in april. The meeting took place at the president ial villa in the capital, abuja. Later, in a statement, jonathan said his goal is to free the 219 girls still captive, and rout boko haram from nigeria. But news reports say the insurgents overran more territory in the northeastern part of the country in the past few days, an army base and surrounding villages. Ifill Election Officials in indonesia have declared a winner in the bitterly disputed president ial race. Jakarta governor joko widodo won 53 of the vote. He celebrated with supporters today, and appealed for unity in the worlds Third Largest democracy. Earlier, though, the other candidate, former general Prabowo Subianto, withdrew from the contest and charged it was all a sham. translated there has been a massive fraud, structured and systematic in the 2014 elections. In consideration of this, we, the president ial candidate Prabowo Subianto and running mate hatta rajasa, will use our Constitutional Rights to reject the 2014 election. Ifill despite that claim, the defeated candidate opted against challenging the results in court. Woodruff dozens of police were rounded up in turkey today, accused of spying on Prime Minister Recep Tayyip Erdogan and others. They were charged with using a corruption probe as a cover. In another development, erdogan said he no longer speaks directly with president obama. He told a t. V. Interviewer its because the u. S. Failed to take stronger action in syria. Ifill in south korea, police announced theyve found the countrys most wanted fugitive, the man whose family owned the ferry that sank in april. The decomposed body of yoo byungeun turned up in a farm field, more than a month ago, but it took lab tests to confirm the identity. Yoo disappeared after the ferry disaster that killed more than 300 people. Investigators do not suspect foul play in his death. Woodruff back in this country, detroits plans to shed debt and emerge from bankruptcy have won a big boost from active and retired city employees. An overwhelming majority of them voted to accept pension cuts, as part of the effort to cut the citys longterm debt of 18 billion. A federal bankruptcy judge holds a hearing next month on approving the citys plan. Ifill on wall street today, the Dow Jones Industrial average gained more than 61 points to close at 17,113. The nasdaq rose 31 points to close at 4,456. And the sandp 500 added nearly ten, to finish at 1,983. Still to come on the newshour several airlines cut off flights to telaviv; europe brings additional sanctions against russia; bridging the chasm between charter and traditional Public Schools; two federal courts issue conflicting rulings on the Health Care Law; and, ten years after the 911 Commission Report was published, how safe are we woodruff the battle between hamas and israel raged on, and prompted some commercial airlines to cancel flights to tel aviv. Woodruff by night, israeli air strikes and artillery fire kept up a heavy barrage in gaza city. By day, palestinians again counted casualties, now more than 600 dead, more than 500 homes destroyed, and raged against their attackers. translated there is no excuse. They killed innocent children, women and elders who were using this building as shelter. They thought this place was safe. Woodruff hamas struck back with new rocket fire, hitting a house in tel avivs yehud suburb and lightly wounding one israeli. It was the closest strike yet to the Ben Gurion International airport, and several u. S. , european and Canadian Airlines temporarily halted service to israel. The Israeli Transportation Ministry criticized the move, saying it would hand terror a prize. On the ground, military officials acknowledged the deaths of two more soldiers. They also announced a 21year old sergeant, oron shaul, is missing and presumed dead after a battle sunday. Hamas had claimed it captured an israeli soldier over the weekend. But Prime Minister Benjamin Netanyahu vowed to keep up the assault, after meeting with u. N. Secretary general ban kimoon in tel aviv. What grievance can we solve for hamas . Their grievance is that we exist. They dont even want a two state solution. They dont want any state solution. In the face of such extremism, in the face of such violence, in the face of such terror, israel has no option but to defend itself. This is what we are doing. Woodruff secretarygeneral ban, wholl meet with the palestinian Prime Minister in the west bank tomorrow, urgently appealed for the shooting to stop. My message to israelis and palestinians is the same stop fighting. Start talking. And take on the root causes of the conflict, so we are not back to the same situation in another six months or a year. Woodruff later, in a videoconference with the u. N. Security council, ban said its his hope and belief the fighting will end in the very near future. Meanwhile, in cairo, secretary of state john kerry continued the u. S. Push for a ceasefire, meeting with egypts leaders and the head of the arab league. While we still obviously have work to do, it is also clear to me from each of the parties that i have met with that there is a framework available to end the violence, and that framework is the Egyptian Initiative that has been put forward. Woodruff the egyptian cease fire proposal is backed by both the u. S. And israel, but has so far been rejected by hamas. The militant group, with support from turkey and qatar, has demanded an end to the blockade that has crippled gazas economy. Woodruff for more on the f. A. A. s suspension of flights to israel, the broader efforts to broker a cease fire in the conflict there, and the latest on the situation in ukraine, we turn to ben rhodes, Deputy National security advisor to the president. I spoke to him a short while ago. Ben ben rhodes, thank you for talking with us. We reported the f. A. A. And other Safety Agencies halted commercial traffic into Ben Gurion Airport in tel aviv. We know the israelis are saying thats not necessary, it hands terror a prize. We know Prime Minister netanyahu has called secretary of state kerry to try to reverse the decision. What does the president believe about this . Well, judy, its important towns the f. A. A. Takes certain precautions out of an abundance of caution. The f. A. A. Said the rocket fired by hamas landed roughly a mile from Ben Gurion Airport, triggering f. A. A. To warn u. S. Carriers to avoid landing in ben gurion because we dont want to put our Civil Aviation at risk. They review us every 24 hours, but, again, this was gone in accordance with common tract. If you see that kind of threat in the vicinity of the airport, we have to issue a warning to civilian carriers to avoid the airport. Woodruff so the president is not inclined to reverse the decision of the f. A. A. . F. A. A. . No, we wouldnt want to overrule something the f. A. A. Is doing for the protection of americans and those flying american carriers. We can review the situations based ton security situation on a 24hour basis but we believe its necessary, particularly when we see what happened in ukraine, that we are taking great care when it comes to the safety of our air carriers. Woodruff when it comes to the fighting in gaza between gaza and israel, we know there are 600 palestinians dead, threequarters civilians, a quarter chirn, problems with water supplies, 29 israelis dead. When does this situation become intolerable for the president . Judy, we believe the best course of action is immediate cease fire. Weve long said hamas is responsible for the conflict because they precipitated it with rocket fire. Israel has a right to defend against rocket fire and tunnel attacks. At the same time, we have been heart broken over the loss of innocent life on the palestinian side, the growing death toll on the israeli side and believe the best outcome is an immediate cease fire to restore the calm and the deals of threat of rocket fire from hamas, the part of the cease fire would be the rocket fire stopping and addressing the stockpiles of rockets. Woodruff secretary kerry is saying the egyptian proposal has been agreed to by the israelis. He is saying hamas is the holdup. So youre saying thats the administrations position . Yes, absolutely. Israel has indicated an openness to the egyptian cease fire proposal. We are working to get hamas in agreement so there can be a restoration of calm and an end to loss of life weve seen. Seen. Woodruff do you think were any closer to seeing it happen . Secretary kerry has been doing consultations in the region. Those who moved forward. Again, it will take extra push of influence on hamas to get them to come into complains with the cease fire. We achieved that in 2012 the last time we saw a conflict like this, and thats what secretary kerry will press in the region, talking to egypt and other countries and partners as well. Woodruff turning to ukraine. Senior u. S. Intelligence officials late today are telling reporters that the passenger jet, the malaysian jet was likely feld by an sa surfacetoair missile fired by the prorussian separatists but they dont have direct evidence of russian involvement. Does this mean the administration can prove that this came from within separatistcontrolled territory . Thats right, judy. What weve assessed and what weve seen in our intelligence is there was an sa11 system, likely the missing that brought down the plane, and the geographic space from where the misis shot is controlled by the russianbacked separatists. I wouldnt absolve russia of responsibility of this at all, number one because theyve created the climate of arming separatists and stoking the conflict in ukraine, and number two because were looking at hard whether that sa11 system came from russia and whether there was russian training on the system. Weve seen russian provision of arms including antiaircraft systems to the separatists so thats something well continue to pull the thread on. Woodruff can you share the evidence the missile was fired from territory controlled by spratdists . Were working to declassify the information we have which includes the assessment of where it was fired from which is a russian separatistcontrolled area and our assessment is this is a missile that goes basically directly up and the wreckage of course also fell in russian separatist controlled areas as well. Everything points to the fact that this was a mills that was likely fired by those russianbacked separatists. Woodruff and do you believe you will be able to prove one way or another if the missile launcher was provided by russia . Do you expect to get fragments from the crash site . I ask because there were reports that the crash area has been tampered with. Thats one of the reasons why we need International Investigators to get access to that site because we believe there would be forensic evidence in that crash site that could further corroborate what weve determined here regarding sa11 and perhaps where it came from as well. So we are very concerned about reports of tampering. It is the case of investigations, good forensic work can determine what it is that brought down a plane. I would know, judy, for instance, there have been reports of black boxes provided out of the separatistcontrolled areas. That is not sufficient. A black box will not tell you exactly what felled the airplane, will just tell you about the airports flight path. So thats not sufficient. Thats why were working to get that access. We passed a Security Council resolution yesterday, working to get teams on the ground, and the United States has f. B. I. And ntsb teams on the ground in ukraine to assist with that investigation. Woodruff quickly, ben rhodes, about the European Partners of the United States. So far they have not been willing to go along with tougher socalled sec torl economic sanctions as the u. S. Has been urging. What does this say about the unwillingness of the europeans to punish russia or punish russia and its policy for what happened here . We have been coordinating with the europeans in putting sanctions on russia. We did move into sanctions in different russian sectors. The president has been forking the phones with his european counterparts. What we saw today was the european Foreign Ministers met and there was actually a positive statement coming out of that meeting indicating they are giving instructions to prepare designations in different sectors and named the energy sectors, arms sector, the financial sector. Those are exactly where we have been targeting our sanctions so were optimistic with this announcement from european Foreign Ministers today well see further actions in the coming days and weeks where the europeans are moving with stronger sanctions on russia. Our sanctions have led to significant things. And this can have cost. Woodruff you dont know if they will follow through . We cants ants pate they l. They were specific today in saying theyve given opinion instructions to prepare designations of sanctions and targets within these sectors. Well work with them as they prepare those and will coordinate with them as well aspect further announcements from the europeans in the days ahead. Woodruff ben rhodes, joining us from the white house, thank you. Thanks very much. Ifill we take a closer look at europes response. Today they imposed new sanctions on individual russian officials, and as we just heard, may consider even tougher measures later this week. Gary gibbon of independent Television News reports from brussels. The u. S. Governments been telling european governments they need to wake up. Theyve been too reluctant to punish russia for its actions in ukraine. Too keen to protect their own contracts. At its meeting of Foreign Ministers in the wake of the Malaysian Air disaster, europe feels it has done just that. They opened with a minute silence. The Dutch Foreign minister then spoke passionately to e. U. Colleagues of his countrys loss. How hed known seven people on the flight. How russian backed separatists might be tampering with the evidence at the crash scene. Europe, he said after the meeting, had toughened its stance. Im happy with the fact that so many of my colleagues expressed solidarity and support for the victims and their loved ones. Im also happy that we have taken a decision which i think is quite forceful and that we president obama said europe needed to wake up. Do you think europe did wake up today . I think europe did wake up. And the skeptics who says actually all weve got is a list of names potentially by the end of the week that we were going to get next week anyway. No, you wont. No, no, no. I mean there things in this paper that has never been in the paper before. Well im quite new to thise whole e. U. Process and it has its own peculiarities. But what i heard today was a clear political commitment by the Foreign Ministers in response to this outrage to act. Reporter in brussels they united. Strong tendency has been deepseated divisions in europe on ukraine. Ifill so what is the chance europe will form a united front when it comes to sanctions against russian . For that we go to heather conley, director of the Europe Program at center for Strategic International studies. She also served as Deputy Assistant secretary of state for European Affairs during the george w. Bush administration. Welcome. Thank you. Ifill what is the significance of what you did do today and what they didnt do . They are accelerating the preparation or more enhanced lists. So what we assume they will produce on thursday is an expanded list on top of the 3 individuals and entities that the e. U. Has already sanctioned in a relationship to supporting the annexation of crime. I cant we expect that they will expand that list, perhaps getting a little closer to putins inner circle, and targeting, sanctioning names specifically for those that have supported the prorussianbacked separatists. And then concurrently, theyre preparing a list that will look at sec torl sanctions. So on energy, the financial sector, defense issues, dualuse technologies. Weve heard europe talk about this third phase or tier three sanctions since march but weve never seen a list developed. So i think this would be a preview and a message to president putin that should the europeans decide to take action, theyve got quite a bit of very targeted areas which would certainly hurt the russian economy. Ifill you do mention its been since march and seems baby steps have been taken, threats made not necessarily on any follow thru. What is different this time . Well, clearly the downing of flight 17 and the unbelievable tragedy and the outrage of how the deceased were treated in ukraine changed the political tenor in europe. You heard david cameron, the British Foreign secretary, they are in a new place politically and willing to sacrifice economic pain for more sanctions. The problem is all of europe isnt in that same place. Ifill that was our next question to you. What explains the reluctance, up until now, and the reluctance still on the part of some european nations . As president bill clinton would say, it is the economy. It is about the fragile nature of the european economy. Unemployment in the euro zone is 11 . The french and italian companies, extremely vulnerable, may even fall into recession, and this means jobs, this means real Economic Impact for those who are very dependent on, you know, strong europeanrussian economic ties. It is also about energy and we cant take our eye off an upcoming winter that, should russia decide to cut off oil and gas through ukraine, europe would be devastated. Theyre very dependent. Ifill lets talk about two countries, germany, onethird of their energy comes from russia, and france, who we saw today theyre going ahead with shipping or selling helicopter warships to russia in spite of this. Why couldnt the president says we wont give you these and obviously was pressured to do that. Yes, these French Military sale of assault ships is a poster child for why europe seemingly cannot take more decisive steps in light of the escalating crisis in the eastern ukraine. It means 2,500 jobs in france, its 1. 2 billion euros of sale and even today they were reluctant, no, well sell the first ship but postpone the second ship, the second is named sevastopol. The french are moving again gwen but not commensurate with the tragedy and escalating crisis in ukraine. Germany is slightly different. I think theyve acknowledged theyre going to have to go forward in additional sanctions. The german Prime Minister said weve tried our best and are pursuing dialogue but will have to take steps to encourage russia to take more meaningful steps. Ifill we heard ben rhodes say the president has been working the phones. His chief of staff, National Security advisors are in germany meeting with Angela Merkels people and we have tough talk coming from the brits. Is any of that have any persuadable effect . Does the u. S. Have the leverage to make this happen . Last week when we announced enhanced sanctions against russia, the white house would have liked to have been the europeans with us and we did it together. We didnt wait for them but what our additional leadership and the sanctions area, it sent a message to europe that we will not wait for them. Our sanctions have dancing effect on europe because as we target russian financial entities, Russian Energy entities, European Companies will have a more difficult challenge in working with them if they deal with the u. S. Dollar, if they deal with american institutions, there is an effect. But despite enormous amounts of pressure and the reason the u. S. Chief of staff is in russia today is the u. S. German relationship is not so great. The u. S. Scandal and the recent revelation of our intelligence work in germany has damaged the relationship. So theres an uphill climb but the europeans have to take responsibility for their security environment and their neighborhood and we hope they get there by themselves. Ifill doesnt matter the sanctions, whether an arms broker, financial action, or is there any appetite to target Vladimir Putin personally . Well, some feel its an all of the above. I think like the u. S. Sanctions, we have targeted that inner circle around president putin that is really shaping their support for the prorussianbacked separatists in eastern ukraine, but to really get the attention of the russian leadership and to really impact the russian economy and to hope to change behavior, thats whatere trying to do, hoping to change russian behavior, you have to focus on the sectors where they rely on western Financial Support and western knowhow and technology. Thats energy, thats certainly in the financial sector. Europe has enormous power to change president putins calculations about the costs of his support for these russianbacked separatists. Whether they do that or not is a different situation. Ifill heather conley, center of strategic and international studies, thank you very much. Thanks, gwen. Woodruff now, a u. S. Education story with a twist. Relations between Charter Schools and traditional Public Schools have often been hostile and thats become a more intense problem in recent years about 4 of u. S. Students attend about 5,000 Charter Schools. Special correspondent for education john merrow reports on one School District that is swimming against that tide. Charters work charters work reporter it would be difficult to overstate the battle royal going on between traditional Public Schools and Charter Schools. Save our schools save our schools reporter Charter Schools, which are publicly funded but privately run, were conceived of as testing grounds for traditional schools. To me, Charter Schools are schools that free teachers to do what they know best to do. Reporter Charter Schools are free to hire uncertified teachers, set their own pay scales, and fire teachers they feel arent measuring up. From the beginning, many in education saw Charter Schools as a threat, robbing traditional schools of students and scarce education dollars. We have seen constant promotion of charter, charter, charter. And whats happening is that, in many cities today, we are on the verge of losing Public Education altogether. Reporter Charter School supporters promised academic success, but the results have been mixed take math, for example. According to a 2013 study, 29 of charters do better than traditional schools, 31 do worse, and 40 score about the same. Some operators have used their Charter Schools as a license to steal. Today the chasm between charter and traditional schools is greater than ever. But here in houston, texas in the Spring Branch School District something astounding, even revolutionary, is taking place. I dont see charters as a threat. I see Charter Schools, particularly highperforming Charter Schools, as kind of incubators of innovation. Reporter rather than go to battle, superintendent Duncan Klussmann stuck his neck out and invited two successful Charter School networks into two of his schools, both of them facing declining enrollment. The charter students are selected by a lottery. Eric schmidt is the principal of kipp courage middle school, one of 141 kipp Charter Schools nationwide weve got 200 students in fifth and sixth grade right now. Well grow out to have 400 students in five through eight. Like all of our schools, we do our work in underserved communities where majority of students qualify for free or reduced lunch. Reporter two years ago, kipp courage began sharing space with landrum middle school, a traditional public school. Good morning. Reporter Patricia Thomas is principal of landrum middle school. Our school is a grade six through eight campus. We have about 750 students. Reporter how did thomas feel about having a newcomer, a competitor, setting up shop in her building . A little bit leery of the program and what was gonna go on. Didnt really know what the program was about, how it was gonna work as a partnership. Reporter knowing that bringing in Charter Schools would be controversial, klussmann did his best to reassure teachers. When i met with the faculties early on, i guaranteed them that no one in Spring Branch would lose their job over this partnership. Reporter the president of the local union, an affiliate of the American Federation of teachers, objected. Reporter but teacher unions in texas have limited power, and klussmans experiment continued at landrum, the union of charter and traditional means that kipp math teacher ryan hambley has access to Classroom Technology he wouldnt have at kipp. Because were at landrum, we get provided for ipads, we get provided for netbooks, and Beautiful Technology such as promethean boards and pens. Reporter kipp and landrum hire their own teachers for core courses like math and reading. Its here in the elective courses, band, orchestra, choir art, theater and phys ed, where the charter and traditional schools come together. On its own, kipp could not afford to offer so many choices. We are an envy of the town at kipp courage among the kipp world because we offer so many electives reporter kipp gets the additional courses and landrum gets to send its teachers to kipps training program. All of the elective teachers came and participated in our Summer Professional Development that we had at kipp. And then we also opened it up to other teachers in landrum, core content teachers. And there was a team that came and said, we want to specifically learn about the character strengths. Reporter building character is uppermost in kipps list of educational goals. Kipp is defined by the fact that were 51 character, 49 academics. Reporter kipps impact on landrum seems far greater than the reverse. Spring branch had a program called development assets, you know, a character education. And so we kind of morphed ours to be more aligned with kipp reporter in the cafeteria, landrum students with their red insignias on their shirts and kipp with their blue may choose to eat separately, but they all spend the first few moments quietly reading or doing homework. This was a kipp practice where they sit down first before a mass runs into the lunchroom and goes to the line. Reporter two years into the partnership, landrum and kipp are still working out the kinks. One problem, finding time when kipp teachers, who have a longer school day, can Work Together with landrums teachers. Were working on aligning our schedules for our seventh grade team of teachers next year. And so allowing teachers to have similar off time during the day so that math teachers can get together and collaborate on ideas. Reporter teacher turnover is also a problem. Yes prep, the second Charter School klussmann invited in, replaced five of its eight teachers after the first year. Two were promoted. Three left, according to yes preps principal, because it wasnt the right fit. So how is the twoyear Old Partnership working out . The leaders seem pleased. I like to bounce ideas off of erik. Him being the young guy, me being the old girl, you know, he might have a different idea and vice versa. Reporter teachers are also generally pleased, according to a survey. Academically, the results are mixed. Reading and math scores at landrum are flat; those at northbrook have improved slightly. At both schools, the charter students are generally outperforming the traditional students. And that benefits the traditional schools because klussmann combines the test scores when he reports them to the state. So when we report scores from the campuses we report, the school overall, for accountability reasons all the scores are landrum middle school, northbrook middle school, Spring Branch isd scores. They just may be in a kipp or yestaught class. Reporter could partnerships like this one in Spring Branch catch on . Perhaps. So far 19 School Districts, including milwaukee, tulsa, and denver, have come to take a look. Ifill now, Conflicting Court rulings on the healthcare law. The federal court of appeals based in washington ruled today that the law does not allow policy holders who get their insurance through the federal exchange to qualify for subsidies that would reduce the cost. But a separate ruling, issued hours later by a federal Appeals Court in richmond said those getting policies through the federal exchanges do qualify for the subsidies. The rulings come down to different interpretations of the same passage of the law Congress Said if a state did not create its own insurance exchange, the federal government should. But the law also reads that subsidies be provided by, quote, an exchange established by the state. Just 14 states, plus the district of columbia, created their own exchanges. Five million enrollees now receive subsidies through the federal exchange. What do these conflicting rulings mean for the future of the Health Care Law . For that, we turn to julie rovner of Kaiser Health news. And tom goldstein, founder of scotusblog. Com. Lets go back to the root of this challenge, julie, why did this come up . Because people who opposed the law found what appeared to be a drafting area saying companies were only available in the state based exchange and decided to sue perhaps trying to get another bite of the apple trying to invalidate or make a mess of the law. It comes down to whether or not this was a mistake or Something Congress intended to do when it wrote just that one sentence. The whole point of the subsidies was to put the a in affordable care, right . Thats exactly right. If this were to go away, about 5 Million People would see premium increases of 76 portion. Most people buying insurance on the exchanges are getting subdz cities, subdz cities are fairly large. If the subsidies were not available basically insurance would become unaffordable and the individual mandate requirement for people to have insurance does not apply to people for whom insurance is unaffordable. Ifill the courts ruled this was an unambiguous reading of the law, but yet this other reading of the law seems to open the whole thing to am by duty. Thats right a ambiguity. Its a shock that this sweeping law that takes up thousands of pages might not be clear to everyone. The language says a statecreated exchange and even if it would make a ton of sense for congress to say part of the country has subsidies available to it and a large part of the country doesnt, thats the law congress wrote and our job is to enforce it. The court of appeals in richmond said this statute is a mess and there are things that point in Different Directions about what congress wanted and because its unclear its the administrations job to figure it out. Ifill congress opened the door for the challenge . Yes, absolutely. Congress did say when there were supposed to be subsidies but its unclear whether it literally meant only a statecreated exchange or if it meant if you buy your healthcare through the exchange and you cant afford Health Insurance well help you out. Ifill if the first ruling were to stand, julie, were assuming the only way to address it is for every state to set up its own exchange instead of relying on the federal one. That would be the idea and there is already discussions in some states on how to do that in some states passed constitutional amendments barring them from creating their own exchanges. Some states dont want anything to do with this law. It also affects the employer mandate, the requirement for employers to buy insurance because thats tied to the subsidies that individuals get, the way the employer mandate works is it says employers only have to pay a fine if they dont offer insurance and one of their employees goeso the exchange and gets a subsidy. If theres no subsidy, theres no way to enforce the employer part of this either. Either. Ifill seems weve seen enough challenges to the healthcare law including the part upseld by the Supreme Court court and a hobby lobby decision in the final case. Seems like death by cuts . There are circle people critical of the law and brought challenges. The statute had been upheld by and large. This is the single greatest threat to the reach of the statute, to the attempt to help a lot of people be able to afford healthcare, but it is a part of the law people find offensive in many parts of the country because they dont want the federal government so involved. Its probably going to be up to the Supreme Court just like the last major challenges. Ifill are there other challenges . There are in lower courts. Its not a requirement it will produce a requirement for the Supreme Court to take the case. Ifill were talking about two different courts and two fferent circuits today and then what . Well, right now immediately, this was a threejudge panel of the cour court of appeals and ty will appeal to the entire Appeals Court and generally there are more democratic than republican appointees there. There is at least a perception its likely to be reversed by the full Appeals Court and you would have basically two with Appeals Courts having ruled and not disagreeing and in that case the Supreme Court would not have to take the case but they probably would. Ifill remind us, tom, the way this works. At what point does the court decide it would have to intervene . Someone has to ask. So the plaintiffs who lost the richmond are inevitably going to ask the Supreme Court to step in. The government could go to the Supreme Court but washington said it would ask the full Appeals Court the quasht r washington to hear the says. Were probably a year to 18 months away from getting the answer. The Supreme Court could stay out. Its more likely to say this is so important and enough people on the court, enough justices to take it up. But its an open question. Ifill why would this be more important than any of the other challenges . You dont think the court would be compelled . My guess would be if theres no split in the circuits the court wouldnt want to revisit it again unless they could change the decision they got in 2012. Ifill the most immediate question for people watching tonight is how does this affect me. If they have their employercovered insurance, it doesnt affect them . No, and if they have subsidies in the federal exchange states, it doesnt affect them immediately. The way the rules work in the d. C. Circuit is they dont even send the requirement back down to the district court, who is who would actually implement this, to 45 days to give the government full time to appeal this which we know the government will do. This wont happen right away. It will be a long time before people start losing their subsidies theyre getting now. Ifill potentially how many people will be affected by the rulings . 5 million. Ifill 5 million currently . Yes. Ifill others lined up . There is so much discussion at who was registering at what pace, but do we know if there are others that are also affected. As more people join, it will affect more. Some numbers have gone into 2016, so its everybody getting the subsidies now and everybody whos potentially eligible in the 36 states where the federal government is running. And then we have all the employers who wouldnt be subject to the mandate thats coming in the future that they provide Health Insurance because none of their employees would be getting subsidies. Ifill is there timetable for the court to act again . No, the court of appeals can take its time to have the whole court hear the case. Most are sensitive to whether the Supreme Court could youre looking at 18 months for when well have a final answer. Ifill cant wait. Tom goldstein, julie rovner of Kaiser Health news. Thanks very much. Woodruff finally tonight, ten years ago, an independent group issued a 567page report assessing the nations preparedness and response to the september 11th attacks. Theyd been tasked by congress with providing recommendations to keep the country safe from future attacks. A decade later, the original group of five democrats and five republicans reconvened, as part of an effort led by the bipartisan policy center, to produce a Current Assessment of the nations threats and challenges. I spoke yesterday with the commissions chair, former new jersey governor tom kean, a republican, and vicechair, former democratic representative lee hamilton of indiana. Governor tom kean, representative lee hamilton, welcome to the newshour. Thank you. Woodruff you say in this report looking back over the ten years that the u. S. Government has done a good job at fighting terrorism but you also say, tom kean, you warn the struggle against terrorism has entered a new and dangerous phase. What do you base that on . The threat is different but no less. Its not one central al quaida based in afghanistan the way it was, now its many more countries than there were before, all working at the same time and working in different ways. Bomb making techniques coming out of a group, i. S. I. S. , a great danger, who are training terrorists who can come over anytime. So a lot going on. The American People cant be complacent. We need to protect oursselves as much now as we did on 9 11. Woodruff does that mean we are not safer today, lee hamilton . I think were safer than prior to nine len. Not safe enough. We still live in a dangerous worldy where a lot of people want to do us harm, so we must consider the urgency of the threat, keep it in front of the American People. Weve got a pretty good record, not a perfect record. Weve had no event like 9 11. We have had some incidents like fort hood and the boston marathon, but overall, all the money weve spent, all the organizations weve with created, we have a good record but not a perfect one. Woodruff tom kean, one of the things you say is this lack of security today is part of the result of the u. S. Inability or reluctance to assert power an influence in a number of places. Are you saying if the u. S. Had gone into syria, for example, we wouldnt be in this situation . Some would, i wont necessarily say it myself and not what were saying as a group, but, yes, the United States the world cant do without us. We are the one Nuclear Power generally project ford the democratic good in the world and when we step back, a lot of other people rush in, and the world is now such a strange place with so many different areas. We said the one thing you cant allow is a place where terrorists can train and prepare the way they did in afghanistan before 9 11 and those places are created today. Woodruff that would mean a more activist United States abroad militarily. The American People dont have an appetite for that necessarily, do they . It is changing. We are not putting boots on ground for combat. Thats pretty clear. Policymakers dont come in with a clean slate. They know the American People dont want to get militarily involved there. What does that mean . What means is you have to use other tools of power, and that can be covert action, diplomacy, political steps, economic leverage, all kinds of things, but were not going to be putting troops on the ground. But as we withdraw, we take a major tool of American Foreign policy out of the picture. Well have to put other things in its place. Woodruff are you saying the administration hasnt done that sufficiently . I think we can always do better. Theyre doing it to some degree but not the way i would like to see it. We need, i think, to be involved particularly in the areas in that part of the world that are so unsettled. We need america our principles, morals and democratic point of view expressed. Woodruff you single out cyberthreats as an area you worry a great deal about. We talked to every official having these responsibilities in the Obama Administration and people who have left the Obama Administration, every single one said cybersecurity was a real threat, every single one of them said were way behind on it. Some of them said were the way we were the day before 9 11 as far as cyber goes. So were having a huge transfer of knowledge, secrets coming from the private sector, affecting jobs, secrets coming from the Defense Department on our newest technology, all stolen, its being done quietly so the American People arent aware of how seriously its affecting us. Woodruff you say the American People are not sufficiently aware of how serious this threat is. Well, theyve become complacent and why not . We havent had an attack like 9 11, thats good. Thats a success. But because of the success, they have become more complacent. What we worry about is that as they become more complacent, they wont talk to their representatives about it. Congress wont reflect it, the executive branch wont reflect it. Theyll lower their guard on counterterrorism empts and were saying that will be a big mistake. Woodruff how much of this,top tom, is the president s responsibility to make sure people think about the threat thats still there . I think a great deal of responsibility because the president is the only one who can speak to the American People as a whole and rally them. This report is somewhat like a long bill in the night. There are very serious things going on. We dont think the American People are aware of it and in some ways the American Government are as prepared as they should be for the threats out there and we hope the president will take the leadership in explaining the threat and in more detail than he has the steps well take to meet the threat. Woodruff sounding the alarm ten years after the first 9 11 report. We thank you both, congressman lee hamilton, governor tom kean. Thank you. Ifill again, the major developments of the day. Deputy National Security adviser ben rhodes told the newshour u. S. Intelligence has confirmed the missile that brought down malaysia air flight 17 originated in ukrainian territory controlled by pro russian separatists, but that it does not absolve russia of complicity in the incident. And u. S. , european, and Canadian Airlines suspended flights to israels Ben Gurion Airport, after hamas rocketfire landed in a nearby suburb. Woodruff on the newshour online right now, one lowincome neighborhood in austin, texas, is hoping to transform the community through street art. Artists and citizens are coming together, despite language barriers and cultural differences, to paint fences with the phrase beauty will save the world. See what that looks like, on art beat. All that and more is on our web site, newshour. Pbs. Org. Ifill and thats the newshour for tonight. On wednesday, 100 days after those nigerian schoolgirls went missing, we provide an update. Im gwen ifill. Woodruff and im judy woodruff. Well see you online, and again here tomorrow evening. For all of us here at the pbs newshour, thank you and good night. Major funding for the pbs newshour has been provided by moving our economy for 160 years. Bnsf, the engine that connects us. And by the alfred p. Sloan foundation. Supporting science, technology, and improved Economic Performance and Financial Literacy in the 21st century. And with the ongoing support of these institutions and. This program was made possible by the corporation for public broadcasting. And by contributions to your pbs station from viewers like you. Thank you. Captioning sponsored by Macneil Lehrer productions captioned by Media Access Group at wgbh access. Wgbh. Org erer this is nightly Business Report with Tyler Mathisen and susie gharib. Apple tops the targets but does it have a revolutionary product in the pipeline that will wow investors and consumers . Battle ground stock. Herbalife shares have the best day ever after bill ackman failed to deliver what is being called a death blow. Two courts issued different rulings on a central component of the president s Health Care Law. Subsidized premiums. All that and more tonight on nightly Business Report for tuesday, july 22nd. Good evening, everyone. Im sue herrera filling in for susie gharib. And im Tyler Mathisen. Welcome, everyone. Stocks rose today and got a boost from positive earnings, strong Economic Data and e