nothing about her story. >> i don't know the facts of when she got sick or when she died. >> except cutter hosted the may conference call for the may conference call for the president's campaign which featured soptic telling his story and cutter thanking him. >> you can tell he's really worried about one group of people and the people like him now determined to call over. >> great, thank you, joe. >> now the owe bam paw camp tonight said it is republicans reoccupied with the ad. they are on the road talking healthcare and tax cuts. the romney campfiring backhanded it to obama saying you turn small things in big things when you don't have a campaign. who will fill out the republican ticket is still any one's guess. karl cameron tells us the latest polling indicates governor

romney may need some help. >> mitt romney raced around manhattan fundraising as speculation reached frenzied legals about the presidential pick -- vice presidential pick. romney has a 3 point edge also ahead by 8 points when it comes to reducing the deficit. the president and romney are tied when it comes to helping small business and dealing with immigrati immigration. his slipping in in polls is from attack ads from the left. independents shifted from romney to the independents who leads by 11 points. romney is counter attacking. his latest attack ad has a tough wedge issue for those who share him of religious intolerance. >> president obama used his healthcare plan to declare war on religion forces religious

institutions to go against their faith. mitt romney believes that's wrong. he quoted pope john paul ii. the combination is a clear appeal to catholic voters who voted large number in key battle ground states. in the fox poll the president leads romney by 13 points among catholics only by 4 points among white catholics. a romney surrogate along with rob portman. two of the short lirgss have kept low profiles paul ryan plans to be on vacation next week with his family and marco rubio has been vacationing and won't return until the weekend. all of the prospects are checking disclosure forms and updating wikipedia profiles waiting for a call from romney. >> he needs a big boost of moenl tum. it's the first time since

clinchs his nomination this is theest lebiggest lead obama has had. more on this from the panel. rob portman has never lost an election. the senator from ohio has done that with a publish image that is short on drama. tonight whether that makes him the right choice to be running with romney this fall. thank you for helping me to ensure mitt romney is in a position to lead mitt romnthis country. >> he has been on the campaign a lot lately. >> thank you for being here. >> political watchers think portman may be there at the end of romney's vp selection. >> i landed portman on the theory i think there's an appetite for confidence and solidity. >> i go with him he's serious he's not a gimmick. he might help with ohio. >> in ohio obama has a light

le slight lead. >> when you are looking for a vp you are looking for someone to make a 2 point or 3 point difference. >> ohio is close enough picking him could make a difference. could make a difference in wisconsin and the midwest. >> ohio aside the one thing that is most mentioned about rob portman. >> rob is one of the nicest people you will meet in public life but not a flamboyant figure to likely jump into the consciousness. >> portman and his family watched this comedy bit. >> nothing fires up the base like boring. romney doesn't want somebody who is going to up stage him. look at these two together. it's like the bland leading the bland. >> my kids love that. >> how do you respond? >> i like to think i am a serious legislator trying to get things done. that's my goal in life is to get things done.

it is not about sizzle for me. i think it is fine. america heymade a decision in 2 to go to the president who did have sizzle. he was kind of a celebrity. he had a compelling message which is i am going to bring people together and solve problems. it didn't happen. it didn't happen because he didn't have the experience. he didn't have the record. he didn't have the policies to do it. >> portman has been around the block in washington from a lawyer in the white house council's office and office of legislative affairs to congressmen from cincinnati to u.s. trade representatives and budget director under president george w. bush. portman was seen as a budget talk in congress and the bush administration. he earned nicknames from president bush some revealed as he steps down from the office of management and budget. >> although my title was director of omb other titles

came my way. >> dr. know. >> tight wad. budget hawk. penny pincher and some not suitable for television audienceses. >> there are critics out there who say this is a bush administration that also ballooned the national debt and some see that as a negative thing to be a part of the bush administration and to bring up the bush years in the current environment. what do you say to that? >> i was fortunate i guess to be part of some good fiscal discipline the budget that i proposed it was a balanced budget. can you believe that? 5 year balanced budget. it was hard to put it together. in 2007 the deficit was one 8th of the deficit today. it was 161 billion i would love to have those times again. unemployment was 4 and a half percent. i did leave to go home prior to the financial crisis. that's when frankly the revenues

went down and spending went up. >> when you hear president obama refer to the bush years and refer to what was handed to him and the fact that it was much worse than any one projected and that democrats point to the bush years saying this is why there are so many problems now thiswho you say to that? >> what did he do with it? 5 and a half million jobs down than we were before the recession began. in 1981 we had a tough recession. at this .4 years after we had gained 6 million jobs because ronald reagan took tough steps to be able to provide tax relief. you get the economy moving again. i think gosh three and a half almost 4 years later it's tough to say who was the other guy. >> the man to do that is mitt romney. >> portman has a midwestern appeal on the stump. but he can get down into the weeds of economic policy. he also tried his hand at roll playing helping john mccain get

ready for the 2008 debates against barack obama. >> rob portman played barack obama so well in the practice debates against me i still hate him to this day. you view him as maybe kind of a policy monk. i am telling you rob portman is one heck of a campaigner. >> he acknowledges where his party appears to be lacking. >> latinos. there seems to be a vulnerability in this block in understanding they don't vote as a block. are you concerned about that? >> yeah, i am. i am. it's a growing block of voters it is a grope of voters the republicans should be able to appeal to in fundamental ways small businesses and group as a

hole. >> rob portman. (speaking spanish) oo he has three kids he met his wife jane on a blind date. >> it didn't go that great actually. she thought i talked too much. she jokes i would be a great senator because i would be able to filibuster. >> something surprising people wouldn't know about you outside of politics? >> i have broken my collar bone mountain biking and dislocated my shoulder all within the last year and a half kayaking. so kayaking mountain biking. >> outdoors. >> i like that stuff. i like to hunt and i like to fish. >> which brings us back to the sizzle factor. >> maybe he should go for something blander like a mannequin or a heel of white bread. >> many are betting on portman and betting romney doesn't care

about sizzle. >> i think what people look forward to is someone they believe to be president were it necessary and that's probably the quality that is most important. >> we wrap up our series with former minnesota governor tim pawlenty. >> other campaign ads are causing problems that is a little later in the grapevine. up next who is telling the truth about the president's welfare policy? >> [ male announcer ] it's a golden opportunity...

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>> mitt romney says president obama wants to gut welfare reform. the president's people say they want to make things easier for administrators and caseworkers. who is right? jim angle with a fact check. >> whothose who worked on the welfare reformula say it was to prevent any work law. >> it cannot issue any waivers

about this section of the law. >> basically that would have defeated pretty much the entire purpose of the law. >> if the administration argues it will not weaken that provision it claims the authority to wave it. >> the lawyers at hhs figured out what i would call a loophole that allows them to actually make this waiver. >> many may be surprise to do learn the welfare work requirement does not apply to all welfare recipients. >> the state must have 40 percent of the adult recipients of this program engaged in some sort of work activity for 20 to 30 hours a week. >> they have the flexibility on how to combine and coordinate them. president obama earlier exempted welfare recipients from work and allowed states to expand the welfare propositions. it is a graeder trend toward increasing federal moneys of all

kind. they point to u.s. census numbers showing 107 million americans now depend on some government program not counting medicare or social security, earned income tax credit or new healthcare law. they run over 80 healthcare programs aiding poor people. >> food stamps in early 20009 which continues through this fall for 46 states. >> of all of these 80 plus programs only three had work requirements. now one of the work requirements is gone it's down to two>> they noted romney himself joined other governors in seeking welfare flexibility in 2005. >> in support of policies that would have eliminated the time limits in the roy and stay on welfare forever. >> they wouldn't weaken it they were the ones who were part of

the movement to establish it. jim, thank you. there were 6,000 fewer applicants last week for unemployment benefits. the four-week average rose by almost 2200. the s&p 500 gained a half point. nasdaq up 7. still ahead you will not believe what one california school district is doing now to get money. first is the president's new immigration policy turning a dream for some into a nightmare for many? you have a plan? first we're gonna check our bags for free, thanks to our explorer card. then, the united club. my mother was so wrong about you. next, we get priority boarding on our flight i booked with miles. all because of the card. and me. okay, what's the plan? plan? mm-hmm. we're on vacation. this is no pl. really? [ male announcer ] the united mileageplus explorer card. the mileage car ith special perks on united. get it and you're in. ith special perks on united.

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>> more gun fire in the sinai desert tops headlines tonight. they sprayed a police station with bullets today after egyptian troops launched an offensive and ruled them out from the increasingly volatile

region. they killed 16 egyptian soldiers last weekend. syria appointed a prime minister to replace the one that defected earlier this week. the country rages on for the largest city. they are being targetd from the air and ground and iran is hosting a conference on how to end the conflict. >> back in this country some democrats are pushing their party to formerly support a bill to help undocumented immigrants to obtain american citizenship and put that officially in their party flat form. chief washington correspondent james rose enlooks at what the president has already done to change immigration policy. >> over the next few months eligible individuals who do not present a risk to national security or public safety will be ability to request temporary release from deportation proceedings and apply for work authorization. >> nearly two months passed since he used his executive

powers to implement portions of the dream act instead of reform measures in congress. it exempts individuals who came to the u.s. illegally as children if they maintained relatively clean records and approved they qualify. the threat of deportation or threat of it can start applying august 15th. the department of homeland security or dhs expects 1 million. >> if there's an rays for a felony or serious misdemeanor that person does not add and there is a criminal record and other indications this is a gang member. no, that person won't qualify. >> now they have a draft document that shows how immigration services an agency within dhs are flushing out the new policy one segmented they might adopt a misdemeanor. no application will be rejected outright if the case is to be processed for a denial the draft document says. the case is routed to the

background check unit where it will undergo supper advise ry review. >> the fact that dhs is going to ignore certain misdemeanors or certain numbers of misdemeanors or attempts to redefine what a misdemeanor is a strong indication to me that the administration is going to accept certain criminal backgrounds and histories. >> dhs officials told fox news the draft paper should not be confused with final operational decision. they also sited deportation in fiscal year 2011 of 397,000 people. and said removal of criminals is up since fiscal year 2008 by 89 percent. >> however president obama told hispanic journalists last year such numbers are quote a little de september pceptive because t people in the border as deportees. fox news withheld portions of this draft that could if released compromise law enforcement operations. brett? >> james, thank you. guess which world body may put

an african war lord on the human rights panel? other problems with campaign ads that is next in the grapevine.

a oo now from the political grapevine. both presidential campaigns are taking eat fheat for recent ads. the cincinnati inquirer reports the owner of a specialty deli wants images of her store front removed from an obama ad.

she did not give permission and some customers now say they will no longer shop there. she admits the store manager knew about the filming for stock footage. a democratic official explains they were purchased the campaign. accused obama of failing in the car dealerships. the ad shows images of oklahoma a local news station in the sooner state points out the video shows downtown oklahoma city not lyndhurst ohio as the ad implies. the police chief of bell county california who was making 770,000 dollars a year in salary and benefits is suing his former employer for his vefrns pay. really? randy adams argues he never agreed to resign or give up his severance. he is already pulling down 22,000 dollars a month in pension. the new city manager there calls the suit hypocritical

considering adams was making more money per year than the president of the united states. speaking of hypocrisy the united nations human rights council is on the brink of appointing a war lord accused of genocide to his panel. despite a warrant issued by the criminal court for crimes against humanity omar al bashir's regime has the backing of the full body african delegation. a u.n. watch dog says it would be like putting jack the ripper in charge of a women's shelter. there is creative financing and something else. tonight chief correspondent mike emanuel reports on what one california school district is trying to do now that could spell disaster later. >> good evening. a stunning example as a community about 20 miles northeast of san diego. it is firing $105 million to build classrooms and renovate schools. they don't have to principal or interest on it for 20-years. the eventual price tag is

expected to be more than $1 billion. a local tax payer's group is sounding the alarm. >> he told us it would cost a certain amount and the price value doubled and it is costing more than we originally were told it would cost. stockton california seeking bankruptcy protection and forced to make a decision. it is now deep in debt. employees are minimum wage and it is pursuing a plan to borrow up to $18 million from a hedge fund to cover this year's budget gap. one expert said in the case of schools and businesses in a family there. >> it is important to understand the real risk here not even today's taxpayers and test a very big risk.

the cost is back is so great it is based on appreciation of property values that brings in more tax revenues over a decade. >> spokesman of the city says there is no reason to panic. quote as to the school district more municipal borrowing doesn't mean we will see more default decades into the future or in the near future for that matter. it is a hard decision to cut services and layoff a staff to cut their budget. a spokesperson for the school district did not respond to the request for our comments. >> thank you. on this topic join me for this weekend for a special look at cities going broke. the fox news reporting hour runs tomorrow night at 10:00 p.m. eastern and then again sunday at 9:00 p.m. the historic drought is worsening. the area of land griped by extreme or exceptional rose 2 percent this week. the u.n. food price indeaqs jumps 6 percent in july as the cost of grain and sugar went up

blamed partly on the american dreft. postal service is reporting a quarterly loss of $5.2 billion that is more than the 2 billion above -- more than 2 billion above the second quarter deficit last year. the service says it will likely miss a second payment of 5 and a half billion for future retiree health benefits. just how much trouble is the president in over the ad involving the cancer patient? we will ask the fox all stars when we come back. ♪ [ male announcer ] you've reached the age where you don't back down from a challenge. this is the age of knowing how to make things happen. sowhy let erectile dysfunction get in your way? talk to your doctor about viagra.

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>> stage 4. there was nothing they could do for her. she passed away in 22 days. i do not think mitt romney realizes what he has done to any one. >> mitt romney and bain he says

are somehow to do with that woman dying of cancer. >> it prepope supposes that's what we are were trying to do. it is to show the impact mitt romney had on the lives of thousands of people. >> you want people to believe you are not trying to liveng subtly or unsubtly between mitt romney bain capital business decisions he made and his death. >> it would be bile logic to do so. >> that's the head of the pro obama super pac that ran that ad involving joe soptic. his wife is now deceased from cancer. we have been talking about it over the last couple days. the white house and obama campaign are refusing to criticize the super pac or the ad for that matter. this continues do gain steam. joe soptic said months ago that bane tried to buy out his

service. >> they started looking for ways to eliminate jobs. in my case in my department they actually offered to buy our jobs out from underneath us. >> the facts the policies the political implications. >> judge nepal t napolitano and syndicated columnist charles kraut him -- krout hymer. >> we hear about the war on women the war on religion. the obama campaign is waging a war on grammar. if you watch the guy back he said i do not think mitt romney realizes what he has done to any one. any one. the phrase before that said the woman who passed away in 22 days. any one would refer to the person referred to in the phrase right before it.

that's the obvious meaning of it. you hear him say it would defy logic to imply there is a connection. this is the audacity of lying. when obama says if you have a business he says no that doesn't refer as it obviously would to if you have a business. it's the sentence right before that. this a plain language. the guy is saying the ghe doesnt realize what he has done to any one. mitt romney link to her death is almost beyond comprehension. >> is there backlash here? you had stephanie cutter with the obama campaign understanding the super pack and campaign are separate. they are on the romney side as well. she was saying she didn't know about this guy's health issues or his wife's health issues and the health insurance and then surfaces this conference call. the rnc made an ad out of it.

>> i don't know the facts of when joe soptic's wife got sick or when she died. i doesn't know the facts of when joe soptic's wife got sick or when she died. >> i turn the call back over. >> thank you, joe. really appreciate you and david sharing your experiences. >> goes on to say he told his story on that conference call. >> the campaign is not connected to the super pac as they are not on the romney side either. the super pac are always former staffers always close associates. in the case of mitt romney's campaign super pac a person went over to his campaign. everyone in that home should know they are interconnected. ner not supposed to coordinate the obama campaign says when you calm the steam workers and they

provide you someone whose life was ruined by bain capital. several men describe what bain capital did to their lives. never had they talked about someone dying they talk about losing their house but they never talked about this. hard to believe people couldn't remember one of them said his wife died of cancer. the implication is mitt romney is responsible for her death. it is extremely offensive. whether they coordinate it or not it is incorrect and outrageous. there are people in the campaign not only being frustrated with the ad but it stepped on mitt romney's own ad. welfare reform is something they hope would dominate the news instead of being over taken by this. >> oo it causes people like us

and colleagues on other networks and cable channels to talk about the ad rather than talk about the real issue in the campaign. i would argue failed presidency of obama and the horrific economy. his promise he couldn't turn the economy around in four years. >> isn't there a distaste if you have just this backlash about this ad and what the obama campaign said about it? >> i hope there is a tremendous distaste and backlash. this is profoundly accurate. he left bain in 199710 years before this woman died. he had no connection whatsoever to her death. >> they have problems with romney's ad on welfare reform. let's look at the fox news polls and it's not good news for mitt

romney. it is different from july 159 49-40. if you look at independents also slipping it there from july to now. approving oot economy he leads the president 46-43 percent. you see the categories there that he leads president obama. on categories where he is trailing he's trailing significantly. namely foreign policy. 61 percent to 38 percent. we should point out that our pollsters say this particular poll has pulled a slight edge of democrats over republicans. as many of the polls have. this is a quote from dana they seem tube more likely to consider themselves democrats than republicans. this is a 5 percentage point democratic average that is on average in this poll the edge is 9 points. that may or may not be on the high side although it seems

similar to other recent polls as she points out wall street journal and pew research center. charles your thoughts? >> this poll is not a reflection of issues. it's not about iran and it isn't about the economy. you know you don't have to have a ph.d. to see this is directly in response to the negative campaign against romney. the key has tripping of the gap among independents between obama and romney from 4 percent to 11. the key number here is favorable numbers. romneys have dropped by about 5 or 6 and unfavorables have risen by 5 or 6. that is the kill romney campaign to quote a leak in august of 2011. it is working. it is all about an attack on him and they make it into gordon gecko who kills the wives of --

it is interesting what he said. play it and get a quick reaction. >> i certainly expect to have a person that has a character vision for the country and that as something to the political discourse of the country. i believe this is a defining election for america. >> it sounds like congressman paul ryan from wisconsin the state that mitt romney needs to turn red. i think he's going to have to take it at this point looking at the numbers tonight. losing the same amount of voters in the cnn poll. the most disgusted it's a very small number. it's the most disgusted and least interested. the move from mitt romney to

change the numbers is to be specific about his plan. tell his story. have a vision and have a goal it has to be clarified. he keeps muddling through he might lose. >> put a fire in people's belly. i don't know who that would be but he needs someone who is a lot angrier a lot more fauxesful a lot more in your face than he is. who am i talking about? >> chris christie can't get more in your face than chris christie. it sounds like a ryan or rubio. whoever romney picks he will portray in exactly those terms. so many will change the direction. he can apply it to anybody. giving a signal i would think he would give a signal on the eve of his choice. i can't get into his head. >> the feelings. the feelings. >> next up it turns out it's not all about the economy or is it? i go ahead of you?

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rl>> 1979 the son of poland pope john paul ii spoke words that would bring down an empire, be not afraid. >> religious freedom is threatened. who do you want to stand with? >> i think mitt romney is out of touch with the average woman's health issues. >> this is not the 1950s. contraception is so important to women. it's about a woman being able to make decisions. >> i don't remember any one as extreme as romney. >> a romney campaign ad and an obama campaign ad. two different issues two different social issues.

an election that is supposed to be all about the economy. we are back with the panel. first to the owe bam pbama camp. they were running these ads i think there were five of them now. run them a lot in colorado. the president was just out there in colorado with sandra who testified on capitol hill about contraception. they see they are trying to stir the women's vote here. >> you know. against all of the campaigns celebrities are sort of interesting. but i think that the obama campaign knows that it has an advantage with women. when you breakdown the polls it's not with married woman but there are a lot going on with married woman in the country he has an advantage with them and he needs them to turn out for him. paying attention to these issues, it tends to work it is why republicans became terrified in the middle of a primary that rick santorum was talking about things swing voters for the ultimate nominee and women tend

to be more supportive of president obama's healthcare plan. they tend to be more socially moderate even when they are identified as republicans. i think this is a group that he needs to turn out and he is going to work hard to do it. >> what about the religious freedom ad? >> the religious freedom ad attacks the portion of obama care which requires even religious organizations that preach against contraception to purchase healthcare for employees that provide the service. this is the subject for 34 lawsuits around the country. it has not yet been ruled on by the supreme court. it will make its way to the supreme court but after election day. it is a perfectly leg gnitimate argument for the romney camp to suggest this legislation tries to force the hand of religious groups by forcing them to do the opposite of what they teach. that is a war on religion.

>> democrats will push back. we haven't seen a lot of it today. they are dealing with the fallout and offensive about the cancer ad and the welfare reform ad. what about the ad and how it plays? >> i think it has a very specific focus target audience that is catholic, polish american. romney had a very successful leg in the trip in poland although you wouldn't know it if you read the media in the u.s. gotten dorrsed by a man who was a great polish hero. the man who carried out for the second. they link that connection and the fact that romney was endorsed when he was in poland.

the issue is a strong one. it is entirely as precontraception denying to women drug stores aren't going to be allowed. it is about whether or not you get it in your healthcare plan or not. it is obviously available otherwise. they are over looking the fact that there is a direct rebuke to religious institutions like catholic charities which are required to do their own doctrine. it is understood by mainly catholics were interested in this. i think it will have a large effect on the small minority and can swing a state like ohio or any of the other midwestern states. >> you look at these two ads which one is moving women? catholic women, women in these battle ground states. >> that was an interesting debate when this flared up

before there was a lot of stuff contraception using catholics married ones, too, who thought this was going a bit too far. i don't know. i know about the facts. i know it is climbing to the women in the electorate the opponent is totally out of touch is a good strategy for obama to try to hold as many of them as they can change the subject in the economy and drive this out. >> thank you judge always good to have you. >> pleasure to be here. >> stay tuned for olympic highlights. ♪

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hard. they may have to talk to the promotions department, though. >> even nbc who has the games has occasional mixup. on monday i carefully avoided i wanted to see if 17-year-old missy franklin was going to win first gold medal in swimming. five minutes before the race. coming up how good can missy franklin be. finals of the hundred back coming up. >> when you are 17 years old, and win your first gold medal, there is nobody you would rather share it with. >> oh. no thanks for inviting us into your home tonight. that's it for this "special report," fair, balanced, and unafraid. >> shepard: this is "the fox report." and there is breaking news as we hit the air tonight in the financial meltdown that rocked the nation and the world. the feds have just decided who will not be held accountable. a live report just ahead.

plus, pretending to be a medical professional. and the accused is just a teenager. >> i started doing cpr on her for like a minute. >> shepard: investigators say he had everybody fooled and now he is facing decades behind bars. but he insists it was all the hospital's fault. plus, puerto rico, the virgin islands, they are vacation paradises but also new hot spots for drug cartels. and now targets for the feds. tonight, riding along with the airborne cocaine hunters. and we saw him walk across niagara falls on a tight rope. [cheers] >> but this time dare devil nic woe linda is taking a stroll without a safety harness. tonight, walking the wire 100 feet in the air.

there is breaking news now on fox news channel. just minutes ago we got word that the department of justice will not prosecute goldman sachs or any of its employees for the company's role in the nation's financial crisis. the securities and exchange commission had previously ordered that investment bank to pay $550 million to settle charges that goldman mislead investigators about subprime mortgages. it's breaking news and mike emanuel is on it from d.c. explain what the justice department's decision means here, mike. >> well, shep, the department of justice just announced after a careful review and more than a year of thorough investigation as they put it determined that based on the law and evidence that exists at this time there is not a viable basis to bring a criminal prosecution with respect to goldman sachs and its employees with regard to the investigation. in other words they didn't think they have the goods