English subtitles for clip: File:1-28-15- Press Briefing by Principal Deputy Press Secretary Eric Schultz.webm

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Mr. Schultz:
Good afternoon.

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Welcome to your White
House press briefing.

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Before we get started,
I want to highlight

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some good health news this week.

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As you saw, yesterday Indiana
became the 28th state,

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plus the District of
Columbia, to expand Medicaid.

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This is great news for the
estimated 350,000 Hoosiers,

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who will gain coverage.

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And we commend Governor Pence
for joining other Democrats

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and Republicans who have
decided to expand Medicaid.

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If the remaining 22
states expanded Medicaid,

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millions of more people
would gain health coverage.

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Yesterday, as you also saw,

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the Department of Health
and Human Services announced

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that 9.5 million
people have selected

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a health insurance marketplace plan, or were automatically

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re-enrolled in the
first two months

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of open enrollment for 2015.

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And in the 37 states
using Healthcare.gov,

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2.5 million young people under
age 35 have selected a plan

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or have been re-enrolled.

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And in those same states, 87
percent of people have signed up

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for a qualified premium
tax credit or other

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financial assistance to help
make insurance more affordable.

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This is great progress, and we
encourage people who still

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need insurance to come and
sign up by February 15th.

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With that, Nancy, I will
take your questions.

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The Press:
I had a question about

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this quick dropping of the 529 tax plan as a distraction.

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What does that say about the
President's commitment

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to his policies if something can
be dropped so quickly

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as a distraction?

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Mr. Schultz:
Thank you, Nancy.

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I appreciate the question.

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And I think it's important to
take a step back and look

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at the broader proposal the
President has offered to ensure

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more middle-class families
can get a college degree.

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First, he's proposed making two
years of community college free

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for responsible students so that
every American has access

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to at least two years
or more of high school

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-- of high-quality schooling.

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The President believes the
surest way to the middle class

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is higher education.

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So some of you were on our trip
to Knoxville a few weeks ago,

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where we were very transparent
that we modeled our program

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on the national scale after

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the Republican governor's program in Tennessee.

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In addition, he's proposed
-- the President has proposed

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nearly $50 billion in education
tax reforms geared towards

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helping middle-class families
afford the cost of college.

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This proposal includes
simplifying, consolidating,

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and better targeting
tax-based financial aid.

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The President's plan would cut
taxes for 8.5 million

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families and students; simplify
taxes for more than 25 million

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families and students
that claim tax benefits.

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All told, this would provide
students working towards

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a college degree with up
to $2,500 of assistance

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each year for five years.

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So while the program you're
asking about is a very

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small component of that,
it was a distraction,

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we decided to move forward
with the rest of our plan,

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and we hope Congress
moves on it shortly.

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The Press:
So is there any thinking that

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by doing this there's a greater opportunity to strike

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a broader deal with Republicans on a broader package?

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Mr. Schultz:
We absolutely are anxious

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to roll up our sleeves and get to work with both Republicans

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and Democrats on this.

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As I mentioned, the fundamental
pieces of this proposal

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are pieces that have enjoyed
bipartisan support --

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support from Republicans and
Democrats -- in the past.

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So we are absolutely hopeful
that we can get to work on them.

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The Press:
On immigration,

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what is your thinking about
this talk on the Hill that

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the DHS funding deadline isn't
necessarily that important

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because DHS employees
would be the essential employees

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who would be working anyway?

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Mr. Schultz:
I'm glad you asked that, Nancy.

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I think that Republicans have
a choice to make right now.

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They can decide to either
refight an old political battle

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over the President's executive
actions on immigration,

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or they can choose to
fund, fully fund

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the Department of
Homeland Security.

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This is a mess they created back
in December when they decided

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to opt for that fight over the
immigration reform actions

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the President took.

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We believe that was
unwise and misguided;

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that they now have a
mess on their hands that

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they ought to be cleaning up.

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They fought very hard
for control of power

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in both chambers -- the House of
Representatives and the Senate

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-- and it's now time for
them to step up and govern.

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The Press:
Any comment

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on the growing
indication of a lawsuit

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by the House Republicans
on immigration?

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Mr. Schultz:
I would just say that House

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Republicans seem to be relying more and more on the courts

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these days to challenge
the President's authority.

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We believe that we acted within the full bounds of the authority

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in trying to -- of the
executive branch,

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and we'll be defending that.

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Jeff.

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The Press:
Eric, back on 529s --

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can you tell us who at the White House was involved

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in the original proposal, and how you came about deciding

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not to move forward?

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Mr. Schultz:
Sure.

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The President's budget
is the culmination

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of extensive conversations
and discussions across

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the executive branch with agencies, and it's a process

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that's housed at our Office of Management and Budget.

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So I'm not going to be in a
position to give a tick-tock

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of those conversations.

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But I can tell you that
that was a small part

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of a larger plan to help build
economic opportunity

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for the middle class, because
we feel that higher education

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is critical to that endeavor.

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The Press:
Is it fair, though, to say

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that I guess budget
officials were involved

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in making the proposal then?

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Mr. Schultz:
It's fair to say that

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under the proposal that we put forth, that both senior staff

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at the White House and administration officials

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from across the
agencies were involved.

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The Press:
Did you expect to get

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the blowback from both
sides that you did?

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Mr. Schultz:
I think that what we expected

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was that when the President
put forward this plan,

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in order to lift opportunities for the middle class

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to achieve higher education,
we wanted to make sure

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that the focus was on expanding
that economic opportunity.

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Over the past six years,
we've seen significant

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economic progress across this
country, but that --

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and that includes, by the way,
the longest stretch

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of job creation in our nation's
history, and last year marking

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the highest number of job growth

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for a calendar year
since the late 1990s.

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But we've also seen that the
middle class hasn't always

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enjoyed the prosperity
that some at the top have.

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So what the President is focused
on and what we expected was

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to have a conversation now
about middle-class economics,

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so that more and more
Americans in the middle class

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could enjoy that prosperity.

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And that's what the
President is focused on.

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The Press:
All right.

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On another topic, what's
the White House's reaction

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to the new Greek Prime
Minister's short tenure so far,

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and his desire and
efforts to renegotiate

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the bailout package with Europe?

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Mr. Schultz:
Thank you, Jeff.

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We do, in fact, look
forward to working with

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the new Prime Minister
and his new government.

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The Greek people have taken many
difficult but important steps

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to lay out the groundwork
for the economic recovery.

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As a longstanding
friend and ally,

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the United States will continue
to support their efforts

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and those of the international
community to strengthen

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the foundation of Greece's
long-term prosperity.

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We also continue to discuss ways
that Europe can boost demand

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and job creation to help
foster an environment

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that is supportive of reforms in
Greece and elsewhere in Europe.

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So that's definitely a situation
that we're monitoring closely.

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The Press:
But can you be specific

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as to whether you support Greece's desire

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to renegotiate its
bailout terms?

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Or are you coming down more
on the side of Germany,

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which is the big
creditor in this package?

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Mr. Schultz:
Well, I think it's important

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to note that European leaders have made clear that

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they want Greece to remain
in the Euro area,

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while respecting
its commitments to reform.

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And so the United States
supports those efforts.

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The Press:
Does he take a side

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on that particular question?

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Mr. Schultz:
Well, Jeff, we remain

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in communications with IMF
and European leaders

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on the measures necessary to secure that progress

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that Greece has achieved.

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We're going to continue
to monitor the situation.

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Justin.

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The Press:
I wanted to loop back

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on immigration first.

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I know that you said it's time
for Republicans to get to work

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on a solution, and I guess
I'm curious what your guys'

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parameters for that
solution would be.

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I know you've threatened to veto
anything that would override

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the President's
executive action.

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But there's been talk on
Capitol Hill of Republicans,

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including maybe something
on border security,

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maybe something on H1B visas.

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Can you envision the President
signing a bill that includes --

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that's not a kind of clean
bill, like funding as it were,

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but includes some
of those provisions?

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Mr. Schultz:
Sure.

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Our view is we want a
clean DHS funding bill.

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If you look at where we are,
again, over the past six years,

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we are now at a point where
Republicans fought very hard

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for majorities in both the
House and the Senate,

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and a few months ago
they achieved just that.

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So it is now time
for them to help fund

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the Department of
Homeland Security.

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It's unimaginable to me that
Republicans would risk defunding

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that agency which is responsible
for aviation security,

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which is responsible for the
United States Secret Service,

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which is responsible
for enforcement

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of our immigration laws.

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So our view is we want a
year's worth of full funding.

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The Press:
Sure, but that doesn't really

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answer the question, which
is would you accept

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a year's worth of full
funding that included

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some of the provisions that
Republicans have been trying

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to bargain into a broader
comprehensive immigration bill

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but attached to DHS funding?

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Mr. Schultz:
Justin, I've seen some reports

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of Republicans sort of floating certain riders and such.

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Our bright line thus far
has been we will veto

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anything that includes
a rollback of the

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President's executive actions
on immigration.

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Short of that, I'm not
going to be in a position

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to sort of negotiate
on those pieces.

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The Press:
And then just on 529s --

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after you guys rolled that out, there was a press call

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with senior administration
officials in which they said

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they hadn't talked to
Capitol Hill about this before

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it was kind of
rolled out to us.

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Was that a mistake?

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Did not bringing Democrats in
and kind of explaining to them

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how this tax plan
was going to work

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lead to the sort of
mutiny that we saw?

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We saw Nancy Pelosi

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kind of get in the President's ear about this.

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Mr. Schultz:
I think, Justin, that you saw,

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in the wake of the State
of the Union, widespread, if not

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unanimous support from Democrats
on the President's plan

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to make college more
affordable and more accessible

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for all Americans.

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Again, this piece, this particular piece

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was becoming a distraction.

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We didn't want that to
jeopardize

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the broader plan, so that's
why we announced what we did.

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Jon.

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The Press:
Eric, what's the White House

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reaction to the Jordanian government expressing

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a willingness to give in
to demands of ISIL

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to release a convicted
terrorist to gain release

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00:10:32,800 --> 00:10:36,170
of their pilot
who's been held hostage?

247
00:10:36,166 --> 00:10:39,496
What does the White
House make of this?

248
00:10:39,500 --> 00:10:42,300
Mr. Schultz:
Jon, as you know, our policy

249
00:10:42,300 --> 00:10:44,370
is that we don't pay ransom,
we don't give concessions

250
00:10:44,367 --> 00:10:47,867
to other -- to terrorist organizations.

251
00:10:47,867 --> 00:10:50,237
But in terms of details
on the negotiations

252
00:10:50,233 --> 00:10:52,633
between the Jordanians
and the Japanese,

253
00:10:52,633 --> 00:10:55,103
I'm going to refer you
to their governments.

254
00:10:55,100 --> 00:10:56,530
The Press:
Okay, but my question is --

255
00:10:56,533 --> 00:11:00,333
okay, so we don't -- the
United States government

256
00:11:00,333 --> 00:11:03,363
will not pay ransom, will not give in to demands.

257
00:11:03,367 --> 00:11:06,537
Do we think it is a bad idea

258
00:11:06,533 --> 00:11:08,863
if another government
does exactly that?

259
00:11:08,867 --> 00:11:10,337
Mr. Schultz:
I can tell you that

260
00:11:10,333 --> 00:11:11,733
this is a longstanding policy

261
00:11:11,734 --> 00:11:13,864
that predates this administration, and it's also

262
00:11:13,867 --> 00:11:15,997
one that we've communicated
to our friends and allies

263
00:11:16,000 --> 00:11:17,530
across the world.

264
00:11:17,533 --> 00:11:19,833
The Press:
So you announced,

265
00:11:19,834 --> 00:11:21,464
the White House announced that there would be a review

266
00:11:21,467 --> 00:11:25,097
of our hostage negotiation
policy back in November.

267
00:11:25,100 --> 00:11:26,630
What has happened
with that review?

268
00:11:26,633 --> 00:11:27,763
Mr. Schultz:
Sure.

269
00:11:27,767 --> 00:11:38,267
That review is underway, Jon,
and that review is being led

270
00:11:38,266 --> 00:11:41,236
by our counterterrorism
director, Lisa Monaco.

271
00:11:41,233 --> 00:11:46,863
This is a review
that takes a look

272
00:11:46,867 --> 00:11:48,467
at our internal
processes on this.

273
00:11:48,467 --> 00:11:51,337
It was prompted by
the increasing number

274
00:11:51,333 --> 00:11:54,063
of U.S. citizens taken hostage
by terrorist groups overseas,

275
00:11:54,066 --> 00:11:57,136
the extraordinary nature
of recent hostage cases.

276
00:11:57,133 --> 00:11:59,763
And that's why the
President directed

277
00:11:59,767 --> 00:12:01,337
this review to be conducted.

278
00:12:01,333 --> 00:12:03,063
I don't have a status
update for you on that,

279
00:12:03,066 --> 00:12:05,236
but as soon as we do
we'll let you know.

280
00:12:05,233 --> 00:12:06,263
The Press:
And this is a --

281
00:12:06,266 --> 00:12:07,966
you say the United States government does not give in

282
00:12:07,967 --> 00:12:10,667
to demands, does not pay
hostage -- does not pay ransom.

283
00:12:10,667 --> 00:12:13,537
But how is what the Jordanians
are talking about doing

284
00:12:13,533 --> 00:12:15,163
any different than what the
United States did to get

285
00:12:15,166 --> 00:12:19,136
the release of Bergdahl -- the
releasing prisoners held

286
00:12:19,133 --> 00:12:21,033
at Guantanamo Bay
to the Taliban,

287
00:12:21,033 --> 00:12:23,263
which is clearly a
terrorist organization?

288
00:12:23,266 --> 00:12:25,666
Mr. Schultz:
Sure, as you know, this was

289
00:12:25,667 --> 00:12:27,797
highly discussed at the time.

290
00:12:27,800 --> 00:12:30,030
And prisoner swaps
are a traditional,

291
00:12:30,033 --> 00:12:34,403
end-of-conflict
interaction that happens.

292
00:12:34,400 --> 00:12:37,300
As the war in
Afghanistan wound down,

293
00:12:37,300 --> 00:12:39,870
we felt like it was the
appropriate thing to do.

294
00:12:39,867 --> 00:12:41,967
The President's bedrock
commitment as Commander-in-Chief

295
00:12:41,967 --> 00:12:44,037
is to leave no man
or woman behind.

296
00:12:44,033 --> 00:12:46,833
That's the principle
he was operating under.

297
00:12:46,834 --> 00:12:48,334
The Press:
Isn't that what the Jordanians

298
00:12:48,333 --> 00:12:49,933
are operating under?

299
00:12:49,934 --> 00:12:52,104
I mean, the Taliban is still
conducting terrorist attacks,

300
00:12:52,100 --> 00:12:55,200
so you can't really say
that the war has ended

301
00:12:55,200 --> 00:12:56,630
as far as they're concerned.

302
00:12:56,633 --> 00:12:57,803
Mr. Schultz:
Well, I'd also point out

303
00:12:57,800 --> 00:13:00,170
that the Taliban is an
armed insurgency;

304
00:13:00,166 --> 00:13:03,536
ISIL is a terrorist group.

305
00:13:03,533 --> 00:13:05,463
So we don't make concessions
to terrorist groups.

306
00:13:05,467 --> 00:13:06,737
We feel --

307
00:13:06,734 --> 00:13:07,504
The Press:
You don't think the Taliban

308
00:13:07,500 --> 00:13:08,600
is a terrorist group?

309
00:13:08,600 --> 00:13:10,300
Mr. Schultz:
I don't think that the Taliban

310
00:13:10,300 --> 00:13:15,300
-- the Taliban is an
armed insurgency.

311
00:13:15,300 --> 00:13:18,200
This was a winding-down
of the war in Afghanistan,

312
00:13:18,200 --> 00:13:20,170
and that's why this
arrangement was dealt.

313
00:13:20,166 --> 00:13:23,896
Our view is, as the President
said at the time, which is,

314
00:13:23,900 --> 00:13:26,400
as Commander-in-Chief, when
he sends men and women

315
00:13:26,400 --> 00:13:28,530
into armed combat, he doesn't
want to leave anyone behind.

316
00:13:28,533 --> 00:13:31,203
That was the commitment he
was following through on this.

317
00:13:31,200 --> 00:13:32,530
The Press:
Okay, and just one other topic.

318
00:13:32,533 --> 00:13:35,003
On the question of Iran,
of course the President

319
00:13:35,000 --> 00:13:38,270
made it clear he would veto the
sanctions bill if Congress

320
00:13:38,266 --> 00:13:40,696
did it -- saying it would
interfere with negotiations.

321
00:13:40,700 --> 00:13:44,370
Now Senator Menendez and nine
other Democrats who all support

322
00:13:44,367 --> 00:13:47,537
that bill have conceded to the
White House that they will not

323
00:13:47,533 --> 00:13:51,133
support a sanctions bill until
March 24th; that's the date

324
00:13:51,133 --> 00:13:53,503
that you're supposed to
have a framework agreement.

325
00:13:53,500 --> 00:13:57,530
So does the veto threat go
away after March 24th?

326
00:13:57,533 --> 00:13:59,203
Because they say they
want to vote on it

327
00:13:59,200 --> 00:14:01,400
right after March 24th
if Iran has not

328
00:14:01,400 --> 00:14:03,000
agreed to that
framework agreement.

329
00:14:03,000 --> 00:14:04,930
So will you -- they've
now made a big concession

330
00:14:04,934 --> 00:14:06,734
to the White House that
they're going to hold off.

331
00:14:06,734 --> 00:14:09,304
Will that veto threat be
dropped on March 24th

332
00:14:09,300 --> 00:14:11,270
if there is no
framework agreement?

333
00:14:11,266 --> 00:14:13,036
Mr. Schultz:
Jon, the President does indeed

334
00:14:13,033 --> 00:14:16,933
appreciate the recognition that our negotiators need

335
00:14:16,934 --> 00:14:20,004
continued time and space to pursue this diplomatic option.

336
00:14:20,000 --> 00:14:23,230
We welcome the commitment by
Senator Menendez and others

337
00:14:23,233 --> 00:14:25,133
to vote against, as you point
out, the sanctions bill

338
00:14:25,133 --> 00:14:26,733
on the floor right now.

339
00:14:26,734 --> 00:14:28,764
We're going to continue to work
closely with Congress on this.

340
00:14:28,767 --> 00:14:30,367
The Press:
But my question is,

341
00:14:30,367 --> 00:14:32,397
does the veto threat go
away on March 24th

342
00:14:32,400 --> 00:14:34,930
if there is no agreement,

343
00:14:34,934 --> 00:14:37,164
if the Iranians have not
agreed to a broad framework?

344
00:14:37,166 --> 00:14:38,366
Mr. Schultz:
Jon, the President

345
00:14:38,367 --> 00:14:40,867
has made clear the importance of the end-of-March deadline

346
00:14:40,867 --> 00:14:43,197
in our own pursuit of a political framework there.

347
00:14:43,200 --> 00:14:45,430
So we're going to certainly
engage Congress at that point,

348
00:14:45,433 --> 00:14:47,663
just like we have been thus far.

349
00:14:47,667 --> 00:14:49,937
And if we determine that
negotiations have failed,

350
00:14:49,934 --> 00:14:52,204
we'll be the -- we have always
said we'll be the first ones

351
00:14:52,200 --> 00:14:55,000
to move for sanctions; I think
the President has said that.

352
00:14:55,000 --> 00:14:57,800
We'll take a day or two, but
that's a determination

353
00:14:57,800 --> 00:14:59,900
we're going to make based on the
progress of the negotiations

354
00:14:59,900 --> 00:15:01,400
at that point.

355
00:15:01,400 --> 00:15:02,870
Michael.

356
00:15:02,867 --> 00:15:04,537
The Press:
Another topic.

357
00:15:04,533 --> 00:15:07,903
Senator Burr last week sent
a letter to the White House

358
00:15:07,900 --> 00:15:11,870
requesting that the
administration send all copies

359
00:15:11,867 --> 00:15:15,397
of the full torture report that
it got from the Senate back

360
00:15:15,400 --> 00:15:19,030
to the Senate because
he doesn't think

361
00:15:19,033 --> 00:15:20,503
that it should have gotten
it in the first place.

362
00:15:20,500 --> 00:15:22,500
Will the administration be
sending the full

363
00:15:22,500 --> 00:15:26,770
6,700-page copy -- the
copies that it has

364
00:15:26,767 --> 00:15:28,597
of the full torture report
back to the Senate?

365
00:15:28,600 --> 00:15:30,100
Mr. Schultz:
I'm going to be honest with you,

366
00:15:30,100 --> 00:15:31,630
Mike, I did not see that letter.

367
00:15:31,633 --> 00:15:33,963
I will say, it was under the
President's directive that

368
00:15:33,967 --> 00:15:36,537
the un-redacted version of
the report be made public.

369
00:15:36,533 --> 00:15:39,033
So I think we have a strong
record of transparency

370
00:15:39,033 --> 00:15:40,863
on that front, but I don't have
a particular response

371
00:15:40,867 --> 00:15:43,197
to that specific request.

372
00:15:43,200 --> 00:15:44,300
The Press:
Can you follow up on that?

373
00:15:44,300 --> 00:15:45,370
Mr. Schultz:
I'm happy to take a look.

374
00:15:45,367 --> 00:15:47,137
Edward-Isaac Dovere.

375
00:15:47,133 --> 00:15:49,303
The Press:
Full name.

376
00:15:49,300 --> 00:15:51,630
(laughter)

377
00:15:51,633 --> 00:15:56,363
Senator Feinstein issued a
15-point dissection

378
00:15:56,367 --> 00:15:58,537
of the report about the CIA

379
00:15:58,533 --> 00:16:00,503
snooping on the
committee computers.

380
00:16:00,500 --> 00:16:05,470
Josh had expressed a lot of --
"a lot of confidence"

381
00:16:05,467 --> 00:16:07,067
was the quote in that report.

382
00:16:07,066 --> 00:16:10,236
Does what Senator Feinstein said
about this raise any questions

383
00:16:10,233 --> 00:16:12,933
for you guys now about that
confidence that you had in it?

384
00:16:12,934 --> 00:16:16,064
Mr. Schultz:
We're 0 for 2,

385
00:16:16,066 --> 00:16:19,696
because I did not see Senator Feinstein's release either.

386
00:16:19,700 --> 00:16:21,570
I can tell you that we continue

387
00:16:21,567 --> 00:16:22,937
to have confidence
in that report.

388
00:16:22,934 --> 00:16:25,134
I know that a lot of
professionals worked a long time

389
00:16:25,133 --> 00:16:26,503
on that report.

390
00:16:26,500 --> 00:16:28,030
The President felt
it was strong.

391
00:16:28,033 --> 00:16:30,863
It was important to make sure
that an un-redacted version

392
00:16:30,867 --> 00:16:32,897
was able to get into the
public space because

393
00:16:32,900 --> 00:16:35,070
of the important dialogue that
was happening on this issue.

394
00:16:35,066 --> 00:16:37,266
But I don't have a
response to that.

395
00:16:37,266 --> 00:16:38,296
The Press:
There's nothing that's come up

396
00:16:38,300 --> 00:16:40,730
since that has raised any questions in the minds of --

397
00:16:40,734 --> 00:16:42,064
Mr. Schultz:
Not that I've seen.

398
00:16:42,066 --> 00:16:43,136
April.

399
00:16:43,133 --> 00:16:44,633
The Press:
Thanks, Eric.

400
00:16:44,633 --> 00:16:48,503
Is the President watching any
of confirmation hearings

401
00:16:48,500 --> 00:16:50,570
for Loretta Lynch?

402
00:16:50,567 --> 00:16:54,637
Mr. Schultz:
So I don't know if the President

403
00:16:54,633 --> 00:16:57,533
has been watching C-SPAN
at all this morning.

404
00:16:57,533 --> 00:17:00,803
But I can tell you
that we feel good

405
00:17:00,800 --> 00:17:02,430
about the confirmation hearing.

406
00:17:02,433 --> 00:17:06,663
We think Ms. Lynch has made
clear that she's proven

407
00:17:06,667 --> 00:17:08,997
the President correct when he
said that it was pretty hard

408
00:17:09,000 --> 00:17:11,730
to find someone more qualified
for this job than Loretta.

409
00:17:11,734 --> 00:17:15,234
She has a 30-year career
distinguishing herself as tough,

410
00:17:15,233 --> 00:17:18,363
fair, independent; and twice
headed the most prominent

411
00:17:18,367 --> 00:17:21,597
U.S. attorney's office in the
country -- twice being confirmed

412
00:17:21,600 --> 00:17:24,430
with bipartisan support by
the United States Senate.

413
00:17:24,433 --> 00:17:26,963
But don't take my word for it.

414
00:17:26,967 --> 00:17:29,737
This might be the first
and only time we cite

415
00:17:29,734 --> 00:17:31,234
Bill O'Reilly from the podium.

416
00:17:31,233 --> 00:17:32,463
(laughter)

417
00:17:32,467 --> 00:17:33,997
But just a few days ago,
he called her a hero

418
00:17:34,000 --> 00:17:36,200
and happy that she's the new Attorney General.

419
00:17:36,200 --> 00:17:38,270
The Press:
So with all of that,

420
00:17:38,266 --> 00:17:41,366
she said that she's
not Eric Holder.

421
00:17:41,367 --> 00:17:45,667
And the President really admired
Eric Holder for all of his work,

422
00:17:45,667 --> 00:17:49,337
particularly in areas of civil
rights and criminal justice.

423
00:17:49,333 --> 00:17:54,133
What does that mean for you for
her to say that on the Hill when

424
00:17:54,133 --> 00:17:58,963
the President was so much of a
supporter of Eric Holder's work?

425
00:17:58,967 --> 00:18:01,437
Mr. Schultz:
We are very much a supporter

426
00:18:01,433 --> 00:18:02,763
of Eric Holder's work.

427
00:18:02,767 --> 00:18:04,597
We think his record
speaks for itself.

428
00:18:04,600 --> 00:18:06,130
If you look at the
progress we've made

429
00:18:06,133 --> 00:18:08,133
on civil rights enforcement, if you look at the progress

430
00:18:08,133 --> 00:18:10,003
we've made prosecuting terrorists,

431
00:18:10,000 --> 00:18:15,070
increasing the rights of the LGBT community,

432
00:18:15,066 --> 00:18:18,396
and fighting tirelessly for voting rights, we feel good

433
00:18:18,400 --> 00:18:21,270
about Eric Holder's record at the Department of Justice.

434
00:18:21,266 --> 00:18:23,636
He has a strong record,
an impressive record.

435
00:18:23,633 --> 00:18:27,963
And we feel that Loretta Lynch
will be just as strong

436
00:18:27,967 --> 00:18:29,767
of an Attorney General
as Eric Holder was.

437
00:18:29,767 --> 00:18:30,737
The Press:
Do you mean she will follow

438
00:18:30,734 --> 00:18:32,934
along that line even though she says she is not Eric Holder?

439
00:18:32,934 --> 00:18:38,304
Mr. Schultz:
I didn't have a chance to read

440
00:18:38,300 --> 00:18:39,630
Loretta Lynch's
opening statement.

441
00:18:39,633 --> 00:18:41,903
She might have been
just being literal

442
00:18:41,900 --> 00:18:42,730
that she's not Eric Holder.

443
00:18:42,734 --> 00:18:44,104
(laughter)

444
00:18:44,100 --> 00:18:46,530
I think that --
if you are --

445
00:18:46,533 --> 00:18:47,863
(laughter)

446
00:18:47,867 --> 00:18:50,237
-- if you --

447
00:18:50,233 --> 00:18:53,033
The Press:
(inaudible)

448
00:18:53,033 --> 00:18:56,033
I think if you take a look
at Loretta Lynch's testimony

449
00:18:56,033 --> 00:18:58,463
and her career and her
credentials, you'll find

450
00:18:58,467 --> 00:19:01,667
the values and the priorities
and the public policies

451
00:19:01,667 --> 00:19:03,237
that she's going to pursue.

452
00:19:03,233 --> 00:19:04,603
The President certainly
felt comfortable with that,

453
00:19:04,600 --> 00:19:06,670
and that's why he nominated her.

454
00:19:06,667 --> 00:19:07,937
Mara.

455
00:19:07,934 --> 00:19:09,034
The Press:
I have a question about another

456
00:19:09,033 --> 00:19:10,533
veto threat, which is Keystone.

457
00:19:10,533 --> 00:19:12,403
It might be the first
one you get to exercise.

458
00:19:12,400 --> 00:19:14,370
He's been very clear
that he'll veto it,

459
00:19:14,367 --> 00:19:16,997
but he hasn't been
clear about why.

460
00:19:17,000 --> 00:19:18,900
Is he against building
the Keystone pipeline?

461
00:19:18,900 --> 00:19:23,130
Or is this because he wants to
preserve some kind of process

462
00:19:23,133 --> 00:19:25,903
and wait for the State
Department to do its thing?

463
00:19:25,900 --> 00:19:27,600
That's been very unclear.

464
00:19:27,600 --> 00:19:28,570
Mr. Schultz:
Mara, to the contrary,

465
00:19:28,567 --> 00:19:29,837
I think we have been clear.

466
00:19:29,834 --> 00:19:32,434
This Keystone project
is undergoing review

467
00:19:32,433 --> 00:19:33,503
at the State Department.

468
00:19:33,500 --> 00:19:35,870
That is a process that long
predates this administration.

469
00:19:35,867 --> 00:19:39,737
So we are opposed to any
legislative maneuver

470
00:19:39,734 --> 00:19:41,134
that would circumvent
that process.

471
00:19:41,133 --> 00:19:42,363
The Press:
This is about the process,

472
00:19:42,367 --> 00:19:44,067
it is not about the
Keystone pipeline?

473
00:19:44,066 --> 00:19:45,396
Mr. Schultz:
Again, we are opposed to any

474
00:19:45,400 --> 00:19:47,270
legislative maneuver that would circumvent a process

475
00:19:47,266 --> 00:19:48,666
that's been in place
for decades.

476
00:19:48,667 --> 00:19:49,797
The Press:
Does the President have

477
00:19:49,800 --> 00:19:53,030
an opinion after all this time on the Keystone pipeline?

478
00:19:53,033 --> 00:19:55,763
The merits of the
Keystone pipeline?

479
00:19:55,767 --> 00:19:57,097
Mr. Schultz:
I think you've heard

480
00:19:57,100 --> 00:20:00,730
the President talk about this
on many occasions.

481
00:20:00,734 --> 00:20:03,564
I'm not going to go ahead
and parse his words.

482
00:20:03,567 --> 00:20:06,037
Most recently, he addressed
this in the State of the Union,

483
00:20:06,033 --> 00:20:10,363
where he said the United States
government can set a larger bar,

484
00:20:10,367 --> 00:20:13,737
have a grander vision to rebuild
infrastructure in this country.

485
00:20:13,734 --> 00:20:15,904
That's what he's focused on.

486
00:20:15,900 --> 00:20:18,570
In terms of the Keystone
pipeline, as I said,

487
00:20:18,567 --> 00:20:20,297
this is undergoing review
at the State Department.

488
00:20:20,300 --> 00:20:23,200
He's going to wait until the
State Department makes its final

489
00:20:23,200 --> 00:20:26,900
determination before voicing
anything determinative.

490
00:20:26,900 --> 00:20:28,300
The Press:
Well, how do you interpret

491
00:20:28,300 --> 00:20:29,870
what he said in the
State of the Union?

492
00:20:29,867 --> 00:20:31,297
Because it was kind of oblique.

493
00:20:31,300 --> 00:20:33,170
He said, we shouldn't
set our sights so low

494
00:20:33,166 --> 00:20:34,796
as to a single pipeline.

495
00:20:34,800 --> 00:20:36,170
Does that mean he thinks
it's small potatoes

496
00:20:36,166 --> 00:20:37,866
and it doesn't
matter either way?

497
00:20:37,867 --> 00:20:39,967
Or what?

498
00:20:39,967 --> 00:20:43,037
Mr. Schultz:
I think the President has talked

499
00:20:43,033 --> 00:20:44,503
about this a couple of
different times,

500
00:20:44,500 --> 00:20:47,370
and so I don't have anything
to add at this point

501
00:20:47,367 --> 00:20:49,167
from the podium.

502
00:20:49,166 --> 00:20:51,096
I will say the project is under
review at the State Department.

503
00:20:51,100 --> 00:20:53,500
We're going to wait for
that review to complete

504
00:20:53,500 --> 00:20:54,800
before we weigh in.

505
00:20:54,800 --> 00:20:56,870
It's under careful
consideration.

506
00:20:56,867 --> 00:20:58,497
There's a lot -- it's
an elaborate process.

507
00:20:58,500 --> 00:21:01,330
Now that the Nebraska
court has weighed in,

508
00:21:01,333 --> 00:21:03,703
that route can now be assessed.

509
00:21:03,700 --> 00:21:07,000
But I'm not going to
prejudge that process.

510
00:21:07,000 --> 00:21:08,930
Kristen.

511
00:21:08,934 --> 00:21:10,134
The Press:
Eric, thanks.

512
00:21:10,133 --> 00:21:11,563
I want to try to nail down
a little bit more why

513
00:21:11,567 --> 00:21:16,437
you abandoned the plan to tax
the 529 college savings funds.

514
00:21:16,433 --> 00:21:18,763
Of course, there were
those reports that

515
00:21:18,767 --> 00:21:20,597
Minority Leader Pelosi was
pressing President Obama

516
00:21:20,600 --> 00:21:23,170
on Air Force One, as well as
Chris Van Hollen.

517
00:21:23,166 --> 00:21:24,866
Were those conversations

518
00:21:24,867 --> 00:21:27,467
the straw that broke the camel's back, essentially?

519
00:21:27,467 --> 00:21:29,837
Mr. Schultz:
Those conversations were

520
00:21:29,834 --> 00:21:32,504
indicative of the distraction that this was becoming.

521
00:21:32,500 --> 00:21:36,500
And the President put forth a
bold proposal to make college

522
00:21:36,500 --> 00:21:38,430
more affordable
for all Americans.

523
00:21:38,433 --> 00:21:41,703
He didn't want this to
be a stumbling block

524
00:21:41,700 --> 00:21:43,700
that would jeopardize
the rest of the package.

525
00:21:43,700 --> 00:21:45,130
The Press:
So you call it a distraction.

526
00:21:45,133 --> 00:21:46,963
Do you still think
this is a good policy?

527
00:21:46,967 --> 00:21:48,937
There was so much backlash,
particularly from

528
00:21:48,934 --> 00:21:52,764
middle-class Americans, who said
we really value these plans.

529
00:21:52,767 --> 00:21:55,167
So do you still stand behind
that as a good policy?

530
00:21:55,166 --> 00:21:57,836
Mr. Schultz:
Sure, we do.

531
00:21:57,834 --> 00:22:00,604
And again, even at the time,
before yesterday --

532
00:22:00,600 --> 00:22:03,970
as my colleague, Josh Earnest,
said -- we would have only

533
00:22:03,967 --> 00:22:07,267
implemented this particular
piece alongside a much broader

534
00:22:07,266 --> 00:22:10,036
package, which would have
amounted to $50 billion

535
00:22:10,033 --> 00:22:11,803
in tax cuts for
the middle class.

536
00:22:11,800 --> 00:22:13,030
The Press:
You have a lot of people saying,

537
00:22:13,033 --> 00:22:15,703
though, that they wouldn't buy those plans if they came

538
00:22:15,700 --> 00:22:17,370
along with the tax.

539
00:22:17,367 --> 00:22:19,337
So I guess just in
keeping with that,

540
00:22:19,333 --> 00:22:21,663
is that really good policy, when
you have so many people saying,

541
00:22:21,667 --> 00:22:23,967
well, then the plans
become useless essentially?

542
00:22:23,967 --> 00:22:26,637
Mr. Schultz:
I'm not sure

543
00:22:26,633 --> 00:22:27,833
I'd characterize it that way.

544
00:22:27,834 --> 00:22:30,034
I do think, again,
this particular piece,

545
00:22:30,033 --> 00:22:34,303
which was $1 billion
over 10 years,

546
00:22:34,300 --> 00:22:38,930
compared to a $50-billion
program, was a small, tiny piece

547
00:22:38,934 --> 00:22:40,364
of a program we
wanted to implement

548
00:22:40,367 --> 00:22:42,137
on behalf of
middle-class families.

549
00:22:42,133 --> 00:22:43,563
The Press:
And the First Lady

550
00:22:43,567 --> 00:22:46,397
is getting some criticism for not wearing a head scarf.

551
00:22:46,400 --> 00:22:48,300
Does she have a reaction
to that criticism?

552
00:22:48,300 --> 00:22:51,000
She's getting some criticism on
Twitter, particularly,

553
00:22:51,000 --> 00:22:53,100
I guess, in Arabic.

554
00:22:53,100 --> 00:22:55,000
So what is her reaction to that?

555
00:22:55,000 --> 00:22:58,230
Does she think that's
fair or justified?

556
00:22:58,233 --> 00:23:00,263
Does the White House
have a reaction?

557
00:23:00,266 --> 00:23:02,336
Mr. Schultz:
Kristen, I saw those reports,

558
00:23:02,333 --> 00:23:06,063
and the attire the First Lady
wore on this trip was consistent

559
00:23:06,066 --> 00:23:07,966
with what First Ladies in the
past have worn --

560
00:23:07,967 --> 00:23:11,067
First Lady Laura Bush, what
Secretary Clinton wore

561
00:23:11,066 --> 00:23:14,036
on her visits to Saudi Arabia,
Chancellor Merkel on her visits

562
00:23:14,033 --> 00:23:16,463
to Saudi Arabia, and
including other members

563
00:23:16,467 --> 00:23:18,837
of the United States
delegation at the time.

564
00:23:18,834 --> 00:23:20,804
The Press:
Ted Cruz, Senator Ted Cruz

565
00:23:20,800 --> 00:23:23,430
just tweeted, "Kudos to
FLOTUS for standing up

566
00:23:23,433 --> 00:23:25,063
for women and refusing to wear

567
00:23:25,066 --> 00:23:27,836
Sharia-mandated head
scarfs in Saudi Arabia.

568
00:23:27,834 --> 00:23:29,234
Nicely done."

569
00:23:29,233 --> 00:23:31,203
Was that her intention,
to send that message?

570
00:23:31,200 --> 00:23:33,830
Mr. Schultz:
I don't have a response

571
00:23:33,834 --> 00:23:35,764
to a tweet from
Senator Ted Cruz.

572
00:23:35,767 --> 00:23:38,837
I will say that the First Lady
very much enjoyed her visit

573
00:23:38,834 --> 00:23:41,104
to both India and Saudi Arabia.

574
00:23:41,100 --> 00:23:44,800
She felt like she was warmly
welcomed by the King there.

575
00:23:44,800 --> 00:23:47,830
They had a very good discussion
that included catching up

576
00:23:47,834 --> 00:23:50,834
on their families, and also a
new school that the King

577
00:23:50,834 --> 00:23:53,464
had built to help 60,000
women get educated.

578
00:23:53,467 --> 00:23:55,897
Cheryl.

579
00:23:55,900 --> 00:23:57,000
The Press:
Thanks.

580
00:23:57,000 --> 00:24:01,570
Back to 529 -- Republicans have
introduced a bill now that

581
00:24:01,567 --> 00:24:04,997
would actually expand those
529 college accounts.

582
00:24:05,000 --> 00:24:07,570
Would the White House
support a bill like that?

583
00:24:07,567 --> 00:24:08,967
Mr. Schultz:
I saw those press reports,

584
00:24:08,967 --> 00:24:11,637
and I can tell you that my
friends in the policy shops

585
00:24:11,633 --> 00:24:13,603
and the legislative shops are
taking a look at that.

586
00:24:13,600 --> 00:24:17,670
Our focus is on working with
Congress to deliver the larger

587
00:24:17,667 --> 00:24:20,737
package of education tax relief
the President proposed, which,

588
00:24:20,734 --> 00:24:23,334
again, does have bipartisan
support, as well as

589
00:24:23,333 --> 00:24:25,703
the President's broader
package of tax relief

590
00:24:25,700 --> 00:24:28,200
for child care and
working families -- again,

591
00:24:28,200 --> 00:24:32,570
as we've discussed, paid for by
closing the trust fund loophole

592
00:24:32,567 --> 00:24:34,797
and making sure the wealthy
pay their fair share.

593
00:24:34,800 --> 00:24:37,430
Bill.

594
00:24:37,433 --> 00:24:40,003
The Press:
The United States continues

595
00:24:40,000 --> 00:24:42,530
to conduct drone
strikes in Yemen.

596
00:24:42,533 --> 00:24:46,003
Previously, this was done with
the support and cooperation

597
00:24:46,000 --> 00:24:48,730
of the Yemeni government,
but now there isn't one.

598
00:24:48,734 --> 00:24:52,164
Are we continuing to
do this on our own?

599
00:24:52,166 --> 00:24:55,866
Mr. Schultz:
Sure, I know you're not putting

600
00:24:55,867 --> 00:24:58,867
me on the spot to confirm any activity like that, but

601
00:24:58,867 --> 00:25:01,597
I will say that the political instability in Yemen

602
00:25:01,600 --> 00:25:03,100
has not forced us to suspend

603
00:25:03,100 --> 00:25:05,200
our counterterrorism
operations in the past --

604
00:25:05,200 --> 00:25:09,070
or suspend our counterterrorism operations there.

605
00:25:09,066 --> 00:25:12,266
As we have in the past, we
will continue to take action

606
00:25:12,266 --> 00:25:14,536
to disrupt continuing
and imminent threats

607
00:25:14,533 --> 00:25:16,233
to the United States
and our citizens.

608
00:25:16,233 --> 00:25:18,663
We continue to partner with
Yemeni security forces

609
00:25:18,667 --> 00:25:20,137
in this effort.

610
00:25:20,133 --> 00:25:21,933
So I think the short
answer to your question is,

611
00:25:21,934 --> 00:25:24,964
our relationship with the
Yemenis was not bound

612
00:25:24,967 --> 00:25:26,697
to just one person.

613
00:25:26,700 --> 00:25:29,130
We have a multifaceted
relationship with folks

614
00:25:29,133 --> 00:25:31,303
over there, and we continue
to be in touch.

615
00:25:31,300 --> 00:25:32,430
The Press:
Well, it wasn't just one person.

616
00:25:32,433 --> 00:25:33,963
There's no government,
effectively.

617
00:25:33,967 --> 00:25:35,597
Mr. Schultz:
Again, our relationship

618
00:25:35,600 --> 00:25:37,630
was not confined to
just one individual.

619
00:25:37,633 --> 00:25:39,433
We were working with the
Yemeni security forces

620
00:25:39,433 --> 00:25:41,133
and other parties over there.

621
00:25:41,133 --> 00:25:42,163
The Press:
So no matter what

622
00:25:42,166 --> 00:25:43,866
the Yemenis think, we're going to continue to do it?

623
00:25:43,867 --> 00:25:47,437
Mr. Schultz:
Bill, again, I think

624
00:25:47,433 --> 00:25:48,733
even as the President
has made clear,

625
00:25:48,734 --> 00:25:50,664
our counterterrorism operations have not stopped.

626
00:25:50,667 --> 00:25:53,837
The President believes if
there's a threat emanating

627
00:25:53,834 --> 00:25:55,764
from that region, he's
going to take action.

628
00:25:55,767 --> 00:26:00,297
Wow -- Jim.

629
00:26:00,300 --> 00:26:02,230
(laughter)

630
00:26:02,233 --> 00:26:05,003
The Press:
Took a while to scan over

631
00:26:05,000 --> 00:26:06,570
to this side of the room.

632
00:26:06,567 --> 00:26:09,997
Speaking of drones, following
that crash landing here

633
00:26:10,000 --> 00:26:12,100
at the White House on Monday,
does the White House

634
00:26:12,100 --> 00:26:14,970
believe that the grounds here

635
00:26:14,967 --> 00:26:17,597
are adequately protected
from drones?

636
00:26:17,600 --> 00:26:19,630
Mr. Schultz:
We do, we do.

637
00:26:19,633 --> 00:26:22,563
Obviously, the safety and
security of the White House

638
00:26:22,567 --> 00:26:26,037
grounds is the mission of the
-- is one of the missions

639
00:26:26,033 --> 00:26:27,703
of the United States
Secret Service.

640
00:26:27,700 --> 00:26:30,830
We have full confidence in
them to accomplish that.

641
00:26:30,834 --> 00:26:34,904
And I think that one of
the -- I'm not going to be

642
00:26:34,900 --> 00:26:37,270
in a position to detail the sort
of security infrastructure

643
00:26:37,266 --> 00:26:38,636
around the White House.

644
00:26:38,633 --> 00:26:40,503
I'll refer you to
the Secret Service

645
00:26:40,500 --> 00:26:42,600
for what they are
willing to share.

646
00:26:42,600 --> 00:26:45,330
But I will also say that this
technology is not new

647
00:26:45,333 --> 00:26:46,803
to the Secret Service.

648
00:26:46,800 --> 00:26:48,970
This is something they've been
working through for some time.

649
00:26:48,967 --> 00:26:53,937
And so they also are constantly
reviewing emerging technologies.

650
00:26:53,934 --> 00:26:56,634
This is no different, so
I'd refer you to them

651
00:26:56,633 --> 00:26:58,333
for any details they
can share on that.

652
00:26:58,333 --> 00:27:00,763
The Press:
And has the White House

653
00:27:00,767 --> 00:27:03,737
looked at all at this
operator's story?

654
00:27:03,734 --> 00:27:08,164
It was reported out by the
Secret Service that he was

655
00:27:08,166 --> 00:27:10,036
only using it for
recreational reasons.

656
00:27:10,033 --> 00:27:12,563
Does that fly with you guys?

657
00:27:12,567 --> 00:27:14,897
Mr. Schultz:
Well done.

658
00:27:14,900 --> 00:27:16,170
(laughter)

659
00:27:16,166 --> 00:27:17,736
The Press:
Sorry.

660
00:27:17,734 --> 00:27:18,864
Mr. Schultz:
It's good.

661
00:27:18,867 --> 00:27:20,137
The Press:
A little Josh thrown in there.

662
00:27:20,133 --> 00:27:21,403
Mr. Schultz:
Yes, that's good, that's good.

663
00:27:21,400 --> 00:27:26,070
Jim, the investigation
is squarely housed

664
00:27:26,066 --> 00:27:27,696
at Secret Service, so
they're the ones

665
00:27:27,700 --> 00:27:29,500
who are completing that investigation.

666
00:27:29,500 --> 00:27:31,600
I expect it to be fair,
thorough, and tough.

667
00:27:31,600 --> 00:27:32,870
The Press:
And the President told

668
00:27:32,867 --> 00:27:35,067
Fareed Zakaria with CNN

669
00:27:35,066 --> 00:27:40,036
that he reiterated the
explanation that you guys gave

670
00:27:40,033 --> 00:27:42,963
that he's not going to meet with
Prime Minister Netanyahu

671
00:27:42,967 --> 00:27:45,897
within a couple of weeks of
the Israeli elections.

672
00:27:45,900 --> 00:27:48,600
Have they had a chance
to speak at all?

673
00:27:48,600 --> 00:27:51,500
Mr. Schultz:
I don't have any calls

674
00:27:51,500 --> 00:27:54,200
with Prime Minister Netanyahu and the President

675
00:27:54,200 --> 00:27:55,530
to read out right now.

676
00:27:55,533 --> 00:27:56,403
The Press:
So you don't know

677
00:27:56,400 --> 00:27:57,370
if they've spoken at all, so --

678
00:27:57,367 --> 00:27:58,597
Mr. Schultz:
Again, I don't
have any calls to read out.

679
00:27:58,600 --> 00:28:01,370
The Press:
And just to follow up

680
00:28:01,367 --> 00:28:07,837
on Kristen's questions about the 529 plans, it does seem

681
00:28:07,834 --> 00:28:10,934
as though -- I don't want to say you don't get it, but

682
00:28:10,934 --> 00:28:13,964
there are a lot of people out
there who really believe

683
00:28:13,967 --> 00:28:16,967
in these 529 plans.

684
00:28:16,967 --> 00:28:19,297
And I guess I'm just curious
-- did the White House

685
00:28:19,300 --> 00:28:21,330
explore that?

686
00:28:21,333 --> 00:28:24,303
Did they -- did you guys look,
in putting together this policy,

687
00:28:24,300 --> 00:28:29,000
this proposal for the budget,
did you look at the popularity

688
00:28:29,000 --> 00:28:31,230
of these programs and the fact
that so many people out there

689
00:28:31,233 --> 00:28:33,103
are invested in these?

690
00:28:33,100 --> 00:28:35,470
And what would have been the
impact on all of those Americans

691
00:28:35,467 --> 00:28:38,197
if they had to all of a sudden
figure out a different way

692
00:28:38,200 --> 00:28:40,670
to save for college?

693
00:28:40,667 --> 00:28:44,037
I mean, it just seems as though
it's a very inexpensive item

694
00:28:44,033 --> 00:28:46,733
in the budget but a major
headache that was created

695
00:28:46,734 --> 00:28:50,104
by putting this out there.

696
00:28:50,100 --> 00:28:52,100
Mr. Schultz:
I appreciate you noting

697
00:28:52,100 --> 00:28:54,930
the reality, that this is a relatively inexpensive

698
00:28:54,934 --> 00:28:56,804
and small piece of
business for us.

699
00:28:56,800 --> 00:28:59,300
Our proposal, as
we've said all along,

700
00:28:59,300 --> 00:29:04,330
is to deliver nearly $50 billion
in education tax cuts

701
00:29:04,333 --> 00:29:05,933
for the middle class.

702
00:29:05,934 --> 00:29:08,364
The 529 proposal is about
3 percent of that nearly

703
00:29:08,367 --> 00:29:11,137
$50-billion tax reform package.

704
00:29:11,133 --> 00:29:13,733
And that being said, the
President is very interested

705
00:29:13,734 --> 00:29:16,664
in working with Congress to move
forward on his broader package.

706
00:29:16,667 --> 00:29:20,967
As you point out, this was a
concern for both Democrats

707
00:29:20,967 --> 00:29:22,837
and Republicans on the Hill.

708
00:29:22,834 --> 00:29:24,504
We decided to take
that to heart.

709
00:29:24,500 --> 00:29:26,970
And sometimes we come out
here, face a lot of heat

710
00:29:26,967 --> 00:29:28,537
for not listening to the Hill.

711
00:29:28,533 --> 00:29:31,603
We decided that we didn't want
this to become a distraction,

712
00:29:31,600 --> 00:29:33,470
and that's why we
want to move forward

713
00:29:33,467 --> 00:29:34,937
on the rest of the package.

714
00:29:34,934 --> 00:29:37,204
The Press:
But maybe, I mean, do you think

715
00:29:37,200 --> 00:29:38,730
maybe you should have talked to the Hill beforehand?

716
00:29:38,734 --> 00:29:40,304
Mr. Schultz:
I think that we have extensive

717
00:29:40,300 --> 00:29:43,070
conversations with members of Congress and their staff.

718
00:29:43,066 --> 00:29:46,996
I think, by and large, we've
seen near unanimous support,

719
00:29:47,000 --> 00:29:49,930
at least from the Democrats,
on a lot of the goals

720
00:29:49,934 --> 00:29:54,364
and the pieces of the education
reform proposal.

721
00:29:54,367 --> 00:29:56,197
Thank you.

722
00:29:56,200 --> 00:29:57,400
Annie.

723
00:29:57,400 --> 00:29:58,670
The Press:
There's another piece

724
00:29:58,667 --> 00:30:00,237
in the President's plan that
is very popular

725
00:30:00,233 --> 00:30:03,663
among middle-class families that's ending,

726
00:30:03,667 --> 00:30:05,397
and that's the child care
flexible savings accounts.

727
00:30:05,400 --> 00:30:07,900
Has there been any discussion
in the White House about

728
00:30:07,900 --> 00:30:11,670
also taking a step back
from that proposal?

729
00:30:11,667 --> 00:30:13,137
Mr. Schultz:
No.

730
00:30:13,133 --> 00:30:15,663
The President's
proposals for child care

731
00:30:15,667 --> 00:30:18,497
and education tax benefits
invest nearly $1 billion more

732
00:30:18,500 --> 00:30:21,030
in middle-class families
while making it a lot easier

733
00:30:21,033 --> 00:30:22,933
for families to take
advantage of them.

734
00:30:22,934 --> 00:30:26,904
Alexis.

735
00:30:26,900 --> 00:30:29,530
The Press:
Eric, can I ask about the

736
00:30:29,533 --> 00:30:33,163
drilling of oil on
the Atlantic Coast?

737
00:30:33,166 --> 00:30:36,366
There are probably lots of
folks along the coast

738
00:30:36,367 --> 00:30:39,167
who are thinking, what did
the President decide

739
00:30:39,166 --> 00:30:41,936
after the Deepwater accident that made him confident

740
00:30:41,934 --> 00:30:43,834
that this was the way to go.

741
00:30:43,834 --> 00:30:45,834
Can you just describe how
the President arrived

742
00:30:45,834 --> 00:30:48,834
at his decision that this
would be safe environmentally

743
00:30:48,834 --> 00:30:53,034
and worth doing at this time?

744
00:30:53,033 --> 00:30:55,133
Mr. Schultz:
Thank you for the question, Alexis.

745
00:30:55,133 --> 00:31:00,333
I'm not sure if it was
yesterday or earlier this week,

746
00:31:00,333 --> 00:31:03,263
the Department of Interior did
release its five-year plan.

747
00:31:03,266 --> 00:31:09,336
That plan did make available
additional areas

748
00:31:09,333 --> 00:31:13,563
for drilling and for leasing.

749
00:31:13,567 --> 00:31:15,697
But it's important to note
that that was just

750
00:31:15,700 --> 00:31:18,130
a preliminary step, that this is
a plan that's now open

751
00:31:18,133 --> 00:31:21,603
for feedback and for public input both from the public

752
00:31:21,600 --> 00:31:23,270
and specific stakeholders.

753
00:31:23,266 --> 00:31:25,736
So this plan is
by no means final.

754
00:31:25,734 --> 00:31:29,464
And so before that's locked in,

755
00:31:29,467 --> 00:31:32,337
there will be plenty of
times to comment.

756
00:31:32,333 --> 00:31:36,833
I think more largely speaking,
this is consistent with

757
00:31:36,834 --> 00:31:40,164
the President's all-of-the-above
energy approach.

758
00:31:40,166 --> 00:31:43,166
The United States of America is
now the world's largest producer

759
00:31:43,166 --> 00:31:45,966
of domestic -- of oil.

760
00:31:45,967 --> 00:31:51,767
And we are at a historic low for
imports of oil and natural gas.

761
00:31:51,767 --> 00:31:53,467
So the President
feels good about

762
00:31:53,467 --> 00:31:54,937
his all-of-the-above
energy approach.

763
00:31:54,934 --> 00:31:57,734
Clearly, energy prices are
down, production is up,

764
00:31:57,734 --> 00:32:02,334
and so I think the announcement
by the Department of Interior

765
00:32:02,333 --> 00:32:04,033
yesterday was
consistent with that.

766
00:32:04,033 --> 00:32:05,303
The Press:
And also, just to follow up

767
00:32:05,300 --> 00:32:07,530
on Mara's question, is there
any correlation

768
00:32:07,533 --> 00:32:10,733
in the President's mind in terms of this policy announcement

769
00:32:10,734 --> 00:32:16,704
between drilling on the Atlantic
Coast and his dissatisfaction

770
00:32:16,700 --> 00:32:18,530
with the Keystone
pipeline's utility

771
00:32:18,533 --> 00:32:21,563
or job creation or necessity?

772
00:32:21,567 --> 00:32:23,497
Mr. Schultz:
I don't think so.

773
00:32:23,500 --> 00:32:28,930
I think that -- can you ask
your question one more time?

774
00:32:28,934 --> 00:32:29,964
I'm sorry.

775
00:32:29,967 --> 00:32:30,837
The Press:
Does the President's policy

776
00:32:30,834 --> 00:32:34,004
on drilling, the need for drilling on the Atlantic Coast,

777
00:32:34,000 --> 00:32:37,170
relate at all to his
dissatisfaction with

778
00:32:37,166 --> 00:32:39,866
the arguments for the
Keystone pipeline?

779
00:32:39,867 --> 00:32:40,967
Mr. Schultz:
No.

780
00:32:40,967 --> 00:32:44,837
Again, the Keystone pipeline
project is still under review

781
00:32:44,834 --> 00:32:46,764
at the Department of State, so
it's going to be hard for me

782
00:32:46,767 --> 00:32:49,067
to weigh in here on
that right now.

783
00:32:49,066 --> 00:32:52,096
In terms of the
President's commitment

784
00:32:52,100 --> 00:32:54,630
to increase oil production,
we think the numbers

785
00:32:54,633 --> 00:32:56,333
speak for themselves.

786
00:32:56,333 --> 00:32:58,203
Again, it's part of
the President's

787
00:32:58,200 --> 00:32:59,470
all-of-the-above
energy approach.

788
00:32:59,467 --> 00:33:01,667
Our numbers on
solar, wind, again,

789
00:33:01,667 --> 00:33:04,867
with domestic oil
production are all high,

790
00:33:04,867 --> 00:33:06,837
and the President is
proud of that record.

791
00:33:06,834 --> 00:33:08,234
The Press:
One other quick follow-up.

792
00:33:08,233 --> 00:33:09,963
The President is going to
release his budget on Monday.

793
00:33:09,967 --> 00:33:12,637
And I have another 529 question.

794
00:33:12,633 --> 00:33:15,163
If the President believed
that the 529 proposal was

795
00:33:15,166 --> 00:33:19,696
the right policy and now he's
arguing that he's changed

796
00:33:19,700 --> 00:33:22,400
his mind because it became
a political distraction,

797
00:33:22,400 --> 00:33:26,430
how are we supposed to appraise the blowback that we're going

798
00:33:26,433 --> 00:33:28,433
to hear to the President's budget on Monday?

799
00:33:28,433 --> 00:33:32,633
Are the policies that get some
sort of political blowback

800
00:33:32,633 --> 00:33:35,203
distractions that should be
jettisoned from the budget?

801
00:33:35,200 --> 00:33:36,770
How do we evaluate that?

802
00:33:36,767 --> 00:33:38,167
Mr. Schultz:
Why are you anticipating

803
00:33:38,166 --> 00:33:39,536
blowback from the budget?

804
00:33:39,533 --> 00:33:42,063
You don't think it's going to be
received with universal acclaim?

805
00:33:42,066 --> 00:33:43,396
(laughter)

806
00:33:43,400 --> 00:33:47,830
I do want to give you one
heads-up for your planning,

807
00:33:47,834 --> 00:33:51,534
which is the 529 piece will
still be in the written budget

808
00:33:51,533 --> 00:33:52,963
that's released.

809
00:33:52,967 --> 00:33:56,897
The announcement yesterday was
made after the book

810
00:33:56,900 --> 00:34:00,430
was in the shop to be produced.

811
00:34:00,433 --> 00:34:01,963
So just for your planning.

812
00:34:01,967 --> 00:34:04,137
But the President,
broadly speaking,

813
00:34:04,133 --> 00:34:06,363
is very excited
about this budget.

814
00:34:06,367 --> 00:34:09,467
We think it reflects a lot of
priorities that the President

815
00:34:09,467 --> 00:34:10,997
talked about in his
State of the Union.

816
00:34:11,000 --> 00:34:13,500
Again, it's a product of an
exhaustive process that crosses

817
00:34:13,500 --> 00:34:16,530
many different agencies
here in the administration.

818
00:34:16,533 --> 00:34:20,033
We think it's going to reflect
the fundamental values of

819
00:34:20,033 --> 00:34:24,033
building out the middle class to
help sustain economic progress.

820
00:34:24,033 --> 00:34:26,503
For us, that includes
making paychecks go further,

821
00:34:26,500 --> 00:34:29,130
making sure young people have
the skills they need to succeed,

822
00:34:29,133 --> 00:34:32,003
and making sure higher
education is more attainable

823
00:34:32,000 --> 00:34:33,770
for Americans across the board.

824
00:34:33,767 --> 00:34:34,797
The Press:
Right, but you didn't

825
00:34:34,800 --> 00:34:35,970
answer my question.

826
00:34:35,967 --> 00:34:37,767
Mr. Schultz:
Why don't you

827
00:34:37,767 --> 00:34:39,397
give it another shot?

828
00:34:39,400 --> 00:34:40,370
The Press:
Okay.

829
00:34:40,367 --> 00:34:43,097
So you just set a new way to
evaluate the budget, right?

830
00:34:43,100 --> 00:34:45,530
If something becomes a
distraction, the President will

831
00:34:45,533 --> 00:34:47,503
consider eliminating it.

832
00:34:47,500 --> 00:34:51,870
So my question to you is, as the
President prepares and releases

833
00:34:51,867 --> 00:34:54,567
the budget on Monday, and there
is political dissatisfaction

834
00:34:54,567 --> 00:34:57,637
of elements of it, will
the President consider

835
00:34:57,633 --> 00:34:59,363
eliminating those?

836
00:34:59,367 --> 00:35:02,197
Did he just set a new
way of evaluating,

837
00:35:02,200 --> 00:35:04,970
even though he thought
the 529 policy made sense?

838
00:35:04,967 --> 00:35:06,897
Mr. Schultz:
That's not how we see it, Alexis.

839
00:35:06,900 --> 00:35:09,830
The President, in his budget --
if you're looking for clues for

840
00:35:09,834 --> 00:35:11,334
what's in the budget and how
it's going to be received,

841
00:35:11,333 --> 00:35:14,503
I would draw you to the State of
the Union text where he laid out

842
00:35:14,500 --> 00:35:16,330
pretty firm plans for
strengthening our economy,

843
00:35:16,333 --> 00:35:19,263
improving the education and
skills of our workforce,

844
00:35:19,266 --> 00:35:21,896
accelerating
scientific discovery,

845
00:35:21,900 --> 00:35:24,570
bolstering manufacturing,
and keeping our nation safe.

846
00:35:24,567 --> 00:35:26,667
Those are the fundamental
tenets of our budget.

847
00:35:26,667 --> 00:35:28,967
Beyond that, I'm not going to
preview what's in there

848
00:35:28,967 --> 00:35:32,697
or what the reaction is going to
be or how we're going to respond

849
00:35:32,700 --> 00:35:34,730
to the reaction right now.

850
00:35:34,734 --> 00:35:35,834
Thank you.

851
00:35:35,834 --> 00:35:37,064
Byron.

852
00:35:37,066 --> 00:35:38,136
The Press:
Thanks, Eric.

853
00:35:38,133 --> 00:35:41,633
The President, in his 2006 book,
had a lot of praise

854
00:35:41,633 --> 00:35:43,833
for tax-free education savings
accounts, which would encompass

855
00:35:43,834 --> 00:35:46,804
plans like the 529.

856
00:35:46,800 --> 00:35:49,730
Is it fair to say he's changed
his mind on this issue?

857
00:35:49,734 --> 00:35:54,464
He also, in 2007, voted to
make 529 tax savings permanent.

858
00:35:54,467 --> 00:35:56,937
So has he flip-flopped?

859
00:35:56,934 --> 00:35:58,834
Has he changed his mind on
this issue over the years?

860
00:35:58,834 --> 00:36:00,834
And perhaps, why?

861
00:36:00,834 --> 00:36:03,034
Mr. Schultz:
Thank you.

862
00:36:03,033 --> 00:36:07,263
I think if we take a look
back at this proposal,

863
00:36:07,266 --> 00:36:10,736
it was part of a larger
$50-billion proposal to make

864
00:36:10,734 --> 00:36:14,104
economic opportunity for the
middle class more attainable

865
00:36:14,100 --> 00:36:16,330
by making college more accessible.

866
00:36:16,333 --> 00:36:18,003
That was what's driving
the President,

867
00:36:18,000 --> 00:36:20,200
that's his North Star.

868
00:36:20,200 --> 00:36:22,570
When he wakes up every morning,
that's what he wants to achieve.

869
00:36:22,567 --> 00:36:26,737
So this was a small piece of a
much broader plan to get there.

870
00:36:26,734 --> 00:36:34,064
Because this did not enjoy the
support from members

871
00:36:34,066 --> 00:36:35,766
of the House and the Senate, we
wanted to make sure

872
00:36:35,767 --> 00:36:37,937
that this didn't become
a distraction

873
00:36:37,934 --> 00:36:39,764
to help jeopardize
the rest of the plan.

874
00:36:39,767 --> 00:36:41,737
So that's why we made
the decision that we did.

875
00:36:41,734 --> 00:36:44,634
And that's why we want to get to
work on the rest of the plan

876
00:36:44,633 --> 00:36:46,003
as soon as possible.

877
00:36:46,000 --> 00:36:47,300
The Press:
But has he changed his mind

878
00:36:47,300 --> 00:36:50,900
over the course of a couple years about, I guess,

879
00:36:50,900 --> 00:36:54,370
educational financing and the way that the tax code

880
00:36:54,367 --> 00:36:57,137
should treat
educational savings?

881
00:36:57,133 --> 00:36:58,603
Mr. Schultz:
I think the President,

882
00:36:58,600 --> 00:37:01,500
by virtue of the proposals he's
released over the past 10 days,

883
00:37:01,500 --> 00:37:04,600
has been very clear where
he stands on funding

884
00:37:04,600 --> 00:37:07,100
higher education and making sure
that is more attainable

885
00:37:07,100 --> 00:37:09,730
for people in the middle class.

886
00:37:09,734 --> 00:37:13,664
And I can also tell you that
the President did agree with

887
00:37:13,667 --> 00:37:17,697
the decision to not move forward

888
00:37:17,700 --> 00:37:19,970
with this particular
proposal yesterday.

889
00:37:19,967 --> 00:37:22,437
The Press:
Can I ask a question

890
00:37:22,433 --> 00:37:24,833
following up on what the President was asked

891
00:37:24,834 --> 00:37:26,504
in the YouTube interview?

892
00:37:26,500 --> 00:37:29,130
He was asked about the
legalization of marijuana,

893
00:37:29,133 --> 00:37:31,833
and he cited federal
law as a reason

894
00:37:31,834 --> 00:37:35,434
that marijuana remains illegal.

895
00:37:35,433 --> 00:37:38,503
But federal law also contains a
provision for rescheduling drugs

896
00:37:38,500 --> 00:37:41,100
within the administration.

897
00:37:41,100 --> 00:37:42,900
Does he have a position
on that aspect?

898
00:37:42,900 --> 00:37:43,230
Mr. Schultz:
Which interview are you saying?

899
00:37:43,233 --> 00:37:44,033
I'm sorry.

900
00:37:44,033 --> 00:37:45,803
The Press:
The YouTube interview --

901
00:37:45,800 --> 00:37:47,170
I'm sorry -- he was asked about marijuana legalization.

902
00:37:47,166 --> 00:37:48,036
Mr. Schultz:
Oh, got it.

903
00:37:48,033 --> 00:37:49,163
I thought you said
Jeffrey Toobin.

904
00:37:49,166 --> 00:37:51,536
I'm going to refer you to
the Department of Justice.

905
00:37:51,533 --> 00:37:53,563
I don't have a lot of
information on that right now.

906
00:37:53,567 --> 00:37:55,337
Thank you. Cassie.

907
00:37:55,333 --> 00:37:56,903
The Press:
Thanks, Eric.

908
00:37:56,900 --> 00:37:59,930
New Jersey Governor Chris
Christie this weekend

909
00:37:59,934 --> 00:38:01,834
is planning on going
overseas to London;

910
00:38:01,834 --> 00:38:04,434
he becomes one in a long
list of potential Republican

911
00:38:04,433 --> 00:38:07,303
presidential candidates
to make a trip abroad,

912
00:38:07,300 --> 00:38:08,830
and to London specifically.

913
00:38:08,834 --> 00:38:10,834
And I'm wondering, does the
President view those trips

914
00:38:10,834 --> 00:38:14,034
as helpful, hurtful,
or relevant to the

915
00:38:14,033 --> 00:38:16,103
overall conduct of U.S.
foreign policy?

916
00:38:16,100 --> 00:38:19,330
And also, as somebody
who came from the Senate

917
00:38:19,333 --> 00:38:21,063
to the White House and
who took a trip abroad,

918
00:38:21,066 --> 00:38:23,736
does he view those trips as
potentially helpful in preparing

919
00:38:23,734 --> 00:38:25,164
to be Commander-in-Chief?

920
00:38:25,166 --> 00:38:26,566
Mr. Schultz:
As tempting as it is,

921
00:38:26,567 --> 00:38:29,197
I'm not going to take the
bait and take a 2016 question.

922
00:38:29,200 --> 00:38:30,770
But I appreciate the effort.

923
00:38:30,767 --> 00:38:32,497
The Press:
Would such a trip --

924
00:38:32,500 --> 00:38:35,370
are there risks involved in such a trip if a U.S. official

925
00:38:35,367 --> 00:38:38,437
goes abroad and says
something that's off-kilter?

926
00:38:38,433 --> 00:38:40,663
Mitt Romney, for example, when
he went as a Republican nominee,

927
00:38:40,667 --> 00:38:42,297
made several missteps.

928
00:38:42,300 --> 00:38:43,700
Mr. Schultz:
I remember that trip.

929
00:38:43,700 --> 00:38:46,200
(laughter)

930
00:38:46,200 --> 00:38:50,430
But I'm going to let others
judge the wisdom of those trips.

931
00:38:50,433 --> 00:38:53,103
Mark.

932
00:38:53,100 --> 00:38:56,970
The Press:
Is there an administration view

933
00:38:56,967 --> 00:39:00,137
on eliminating the tax-exempt
status on big-money

934
00:39:00,133 --> 00:39:03,863
sports leagues like the
NHL and the NFL?

935
00:39:03,867 --> 00:39:05,897
Mr. Schultz:
If there is, I didn't come prepared to share it.

936
00:39:05,900 --> 00:39:07,500
The Press:
Could you get back to me on that?

937
00:39:07,500 --> 00:39:08,470
Mr. Schultz:
I will, yes.

938
00:39:08,467 --> 00:39:09,467
Kevin.

939
00:39:09,467 --> 00:39:10,497
The Press:
Eric, thanks.

940
00:39:10,500 --> 00:39:13,070
I want to ask about Jeremy Bird,
who served as a national

941
00:39:13,066 --> 00:39:16,836
field director during the 2012
reelection campaign.

942
00:39:16,834 --> 00:39:18,934
He is said to be actively
working in Israel as part

943
00:39:18,934 --> 00:39:22,134
of a concerted effort against
Prime Minister Netanyahu.

944
00:39:22,133 --> 00:39:25,033
And I'm just curious, given
all the friction between

945
00:39:25,033 --> 00:39:27,403
the administration right
now and Jerusalem,

946
00:39:27,400 --> 00:39:31,070
how concerned are you with
his activities right now?

947
00:39:31,066 --> 00:39:33,436
Mr. Schultz:
Kevin, I haven't seen

948
00:39:33,433 --> 00:39:36,133
those reports, but I will tell you that we feel very good

949
00:39:36,133 --> 00:39:37,863
about the relationship we
have with Israel.

950
00:39:37,867 --> 00:39:39,797
They are our closest
ally in the Middle East.

951
00:39:39,800 --> 00:39:43,730
The President talks to Prime
Minister Netanyahu more than

952
00:39:43,734 --> 00:39:45,304
any other foreign leader.

953
00:39:45,300 --> 00:39:47,030
They spoke, I believe,
just a few weeks ago.

954
00:39:47,033 --> 00:39:50,603
So that relationship
is as solid as ever,

955
00:39:50,600 --> 00:39:53,700
and so I'm not going to
have anything more for you.

956
00:39:53,700 --> 00:39:54,800
The Press:
Would it be fair to say

957
00:39:54,800 --> 00:39:56,600
you would discourage other former administration

958
00:39:56,600 --> 00:40:00,100
either officials or those
who have worked with

959
00:40:00,100 --> 00:40:02,530
the administration from engaging in such activity?

960
00:40:02,533 --> 00:40:04,703
Mr. Schultz:
I have a lot on my plate.

961
00:40:04,700 --> 00:40:08,130
Taking to task what former
administration officials do

962
00:40:08,133 --> 00:40:10,503
once they leave the White House
is not something I'm going

963
00:40:10,500 --> 00:40:12,070
to engage in right here.

964
00:40:12,066 --> 00:40:13,436
The Press:
Let me ask you about

965
00:40:13,433 --> 00:40:15,903
the relationship, Eric,
between the Pentagon

966
00:40:15,900 --> 00:40:16,900
and the White House.

967
00:40:16,900 --> 00:40:19,100
There's been some criticism
about micromanagement,

968
00:40:19,100 --> 00:40:22,600
heavy handedness, the
inability to sort of formulate

969
00:40:22,600 --> 00:40:26,370
a coherent plan given the
second-guessing that

970
00:40:26,367 --> 00:40:29,597
happens often at 1600 Pennsylvania Avenue.

971
00:40:29,600 --> 00:40:31,270
How would you characterize
the relationship between

972
00:40:31,266 --> 00:40:33,036
the White House
and the Pentagon?

973
00:40:33,033 --> 00:40:35,333
Mr. Schultz:
It's going to be helpful

974
00:40:35,333 --> 00:40:37,703
if you -- are there any specifics you're asking about?

975
00:40:37,700 --> 00:40:39,670
The Press:
Well, specifically Leon Panetta,

976
00:40:39,667 --> 00:40:43,197
Robert Gates, and even more recently comments attributed

977
00:40:43,200 --> 00:40:46,700
off the record to others in very high and senior-level positions

978
00:40:46,700 --> 00:40:48,470
have been critical

979
00:40:48,467 --> 00:40:50,537
of micromanagement
from the White House.

980
00:40:50,533 --> 00:40:51,863
Mr. Schultz:
This is something

981
00:40:51,867 --> 00:40:53,367
we've discussed at
length from here.

982
00:40:53,367 --> 00:40:58,067
But we, of course, always deeply
value and respect the input

983
00:40:58,066 --> 00:41:00,136
of our military leadership.

984
00:41:00,133 --> 00:41:03,133
That's something that is placed
at paramount value here

985
00:41:03,133 --> 00:41:05,103
at the White House and something
that goes into every

986
00:41:05,100 --> 00:41:07,630
consideration the President
makes as Commander-in-Chief.

987
00:41:07,633 --> 00:41:10,033
That said, the President
is the Commander-in-Chief.

988
00:41:10,033 --> 00:41:13,033
The friction with the
Pentagon, I believe,

989
00:41:13,033 --> 00:41:15,663
those who have been covering
this White House much longer

990
00:41:15,667 --> 00:41:17,367
than I've been working here will
tell you that's something that

991
00:41:17,367 --> 00:41:19,497
predates this administration.

992
00:41:19,500 --> 00:41:22,900
So we believe we have
good relationships with

993
00:41:22,900 --> 00:41:27,870
the military leaders, and most
importantly the President has

994
00:41:27,867 --> 00:41:30,067
an open ear, and values their
input around the table

995
00:41:30,066 --> 00:41:32,096
or over the telephone.

996
00:41:32,100 --> 00:41:33,170
The Press:
Thank you.

997
00:41:33,166 --> 00:41:34,166
Mr. Schultz:
Thank you.

998
00:41:34,166 --> 00:41:37,136
Jared.

999
00:41:37,133 --> 00:41:38,933
The Press:
Thanks, Eric.

1000
00:41:38,934 --> 00:41:41,334
You were talking about an
all-of-the-above energy strategy

1001
00:41:41,333 --> 00:41:42,933
earlier, and I just
wanted to follow up.

1002
00:41:42,934 --> 00:41:44,664
Yesterday the House
passed a bill about

1003
00:41:44,667 --> 00:41:46,367
liquefied natural gas exports.

1004
00:41:46,367 --> 00:41:48,697
Does the White House
have a reaction to that?

1005
00:41:48,700 --> 00:41:50,670
Mr. Schultz:
We think the bill is unnecessary.

1006
00:41:50,667 --> 00:41:52,167
The Press:
Why?

1007
00:41:52,166 --> 00:42:04,466
Mr. Schultz:
Because the Department of Energy

1008
00:42:04,467 --> 00:42:07,137
has already taken steps to modernize LNG export

1009
00:42:07,133 --> 00:42:10,563
approval process and ensure applications are looked at

1010
00:42:10,567 --> 00:42:12,237
efficiently and expeditiously.

1011
00:42:12,233 --> 00:42:13,733
So we believe the
process is working well,

1012
00:42:13,734 --> 00:42:15,504
and that bill is
totally unnecessary.

1013
00:42:15,500 --> 00:42:16,670
The Press:
You don't think it's unnecessary

1014
00:42:16,667 --> 00:42:20,437
because any sale of LNG would actually be bogged down

1015
00:42:20,433 --> 00:42:22,963
by bureaucratic red tape?

1016
00:42:22,967 --> 00:42:24,267
Mr. Schultz:
We actually think the process

1017
00:42:24,266 --> 00:42:26,096
is working well, and I haven't seen much evidence

1018
00:42:26,100 --> 00:42:27,370
to the contrary.

1019
00:42:27,367 --> 00:42:28,737
The Press:
On the other side of the issue

1020
00:42:28,734 --> 00:42:31,704
of natural gas, any reaction -- I know I asked Josh about this

1021
00:42:31,700 --> 00:42:33,400
a couple weeks ago.

1022
00:42:33,400 --> 00:42:36,230
The states like New York who have banned fracking

1023
00:42:36,233 --> 00:42:38,663
of natural gas, the White
House wants to push --

1024
00:42:38,667 --> 00:42:41,267
they want to drill on
the southeast coast

1025
00:42:41,266 --> 00:42:42,966
of the United States for oil.

1026
00:42:42,967 --> 00:42:45,467
What about states that
are opting out

1027
00:42:45,467 --> 00:42:47,767
of some of the all-of-the-above positions?

1028
00:42:47,767 --> 00:42:50,237
Mr. Schultz:
Well, as you know, Jared,

1029
00:42:50,233 --> 00:42:52,203
I think as part of the DOI
five-year plan that was released

1030
00:42:52,200 --> 00:42:56,670
earlier this week, some areas
were taken off the table,

1031
00:42:56,667 --> 00:42:58,437
specifically in Alaska.

1032
00:42:58,433 --> 00:43:01,103
So we are open to working
with stakeholders.

1033
00:43:01,100 --> 00:43:03,370
Again, the plan that
was put forward

1034
00:43:03,367 --> 00:43:08,537
by the Department of Interior is
going to be subject to comment.

1035
00:43:08,533 --> 00:43:10,833
It's subject to the
public giving comments,

1036
00:43:10,834 --> 00:43:13,834
but also specific stakeholders
who have an area of expertise.

1037
00:43:13,834 --> 00:43:16,304
So we're open to that feedback,
and we're going to be

1038
00:43:16,300 --> 00:43:17,930
working through that
moving forward.

1039
00:43:17,934 --> 00:43:19,134
The Press:
All right, but what does

1040
00:43:19,133 --> 00:43:20,663
the White House think of --

1041
00:43:20,667 --> 00:43:23,467
that's the Interior's position,
but what does the White House

1042
00:43:23,467 --> 00:43:26,037
think when states take
themselves out of the equation?

1043
00:43:26,033 --> 00:43:30,163
Mr. Schultz:
We feel good about the list

1044
00:43:30,166 --> 00:43:32,666
that Department of Interior
has put forward.

1045
00:43:32,667 --> 00:43:35,337
I'm not here to speculate on a
list that wasn't put forward

1046
00:43:35,333 --> 00:43:38,733
or other states that may or may
not be speaking up on this.

1047
00:43:38,734 --> 00:43:42,104
Chris.

1048
00:43:42,100 --> 00:43:44,100
The Press:
Thanks, Eric.

1049
00:43:44,100 --> 00:43:45,800
I also have a question
about the YouTube interview.

1050
00:43:45,800 --> 00:43:47,430
The President said he hopes
the Supreme Court comes

1051
00:43:47,433 --> 00:43:50,333
to the right decision on pending
litigations on marriage rights

1052
00:43:50,333 --> 00:43:51,933
for same-sex couples.

1053
00:43:51,934 --> 00:43:53,334
What will the right
decision look like?

1054
00:43:53,333 --> 00:43:56,663
Mr. Schultz:
I think that the President

1055
00:43:56,667 --> 00:43:57,967
-- I think we can all guess.

1056
00:43:57,967 --> 00:44:00,567
The President believes in
the pillar of equality.

1057
00:44:00,567 --> 00:44:05,237
The President believes that --
and he's spoken out to this

1058
00:44:05,233 --> 00:44:08,163
many times, but you know,
that marriage should be

1059
00:44:08,166 --> 00:44:11,566
something that's enjoyed by
every man and every woman.

1060
00:44:11,567 --> 00:44:13,137
The Press:
And every man and every woman,

1061
00:44:13,133 --> 00:44:14,733
does that mean a 50-state ruling
striking down on

1062
00:44:14,734 --> 00:44:16,604
all remaining state bans
prohibiting same-sex marriage?

1063
00:44:16,600 --> 00:44:19,230
Mr. Schultz:
I am just not an expert

1064
00:44:19,233 --> 00:44:21,333
on sort of what the actual details are pending

1065
00:44:21,333 --> 00:44:23,663
before the court, so I'm going to leave it to the President

1066
00:44:23,667 --> 00:44:25,797
to voice our view.

1067
00:44:25,800 --> 00:44:26,970
The Press:
Also in the interview,

1068
00:44:26,967 --> 00:44:28,767
the President said a lot of nice
things about same-sex couples,

1069
00:44:28,767 --> 00:44:30,667
such as they're good parents and
they're brothers and sisters.

1070
00:44:30,667 --> 00:44:33,497
He also referred to their
lives as a "lifestyle choice."

1071
00:44:33,500 --> 00:44:35,370
Does the President
regret using that phrase?

1072
00:44:35,367 --> 00:44:36,537
Mr. Schultz:
I haven't talked

1073
00:44:36,533 --> 00:44:37,933
to the President about
using that phrase.

1074
00:44:37,934 --> 00:44:39,764
But again, I think
the President's views on this

1075
00:44:39,767 --> 00:44:40,737
are well known.

1076
00:44:40,734 --> 00:44:41,834
The Press:
But should we take away

1077
00:44:41,834 --> 00:44:42,864
from that statement that the President thinks that being gay

1078
00:44:42,867 --> 00:44:44,037
is a choice?

1079
00:44:44,033 --> 00:44:45,133
Mr. Schultz:
I don't think so.

1080
00:44:45,133 --> 00:44:48,033
Fred.

1081
00:44:48,033 --> 00:44:52,203
The Press:
Yes, thank you very much.

1082
00:44:52,200 --> 00:44:56,230
Yes, today Loretta Lynch was up
on the Hill and she said today

1083
00:44:56,233 --> 00:44:59,803
she believes illegal immigrants
have an obligation to work,

1084
00:44:59,800 --> 00:45:02,300
and that she said, regardless
of how they came here,

1085
00:45:02,300 --> 00:45:05,330
the obligation to work
is one that's shared

1086
00:45:05,333 --> 00:45:06,803
by everyone in the country.

1087
00:45:06,800 --> 00:45:09,530
Does the President believe that
people who are here unlawfully

1088
00:45:09,533 --> 00:45:11,863
have an obligation
and a right to work?

1089
00:45:11,867 --> 00:45:13,797
Mr. Schultz:
The President believes that

1090
00:45:13,800 --> 00:45:17,130
as part of the immigration -- both the executive action

1091
00:45:17,133 --> 00:45:21,563
that he announced, but also a pillar of the bipartisan bill

1092
00:45:21,567 --> 00:45:23,767
that passed the Senate with both Democrats and Republicans

1093
00:45:23,767 --> 00:45:26,097
and that was blocked by
the House leadership

1094
00:45:26,100 --> 00:45:27,330
from even coming up to a vote --

1095
00:45:27,333 --> 00:45:29,003
that that restores accountability,

1096
00:45:29,000 --> 00:45:30,700
that those immigrants can
come out of the shadows,

1097
00:45:30,700 --> 00:45:33,200
join the workforce, and pay
taxes and be held accountable.

1098
00:45:33,200 --> 00:45:34,130
The Press:
That law was never passed,

1099
00:45:34,133 --> 00:45:36,203
you remember.

1100
00:45:36,200 --> 00:45:37,630
So does the President believe
that people who are here

1101
00:45:37,633 --> 00:45:41,003
unlawfully now have an
obligation to work and compete

1102
00:45:41,000 --> 00:45:42,770
for jobs against Americans
-- unemployed Americans,

1103
00:45:42,767 --> 00:45:44,597
young Americans, et cetera?

1104
00:45:44,600 --> 00:45:47,630
His Attorney General -- his
prospective Attorney General

1105
00:45:47,633 --> 00:45:48,663
believes this.

1106
00:45:48,667 --> 00:45:50,567
Does the President agree
with Lynch on this,

1107
00:45:50,567 --> 00:45:52,337
that people who are
here unlawfully

1108
00:45:52,333 --> 00:45:53,903
have an obligation to work?

1109
00:45:53,900 --> 00:45:55,130
Mr. Schultz:
I think the people who

1110
00:45:55,133 --> 00:45:57,833
under the President's executive action plan can now come out

1111
00:45:57,834 --> 00:46:00,734
of the shadows, get a job
and pay taxes --

1112
00:46:00,734 --> 00:46:02,564
The Press:
-- all people who are here unlawfully.

1113
00:46:02,567 --> 00:46:07,137
Does that mean they include the
non -- do all 12 million

1114
00:46:07,133 --> 00:46:09,233
have an obligation to work, or
does the President have

1115
00:46:09,233 --> 00:46:12,033
a disagreement with his nominee
for the Attorney General?

1116
00:46:12,033 --> 00:46:14,233
Mr. Schultz:
I'm going to admit, I know

1117
00:46:14,233 --> 00:46:16,103
that hearing is ongoing, so I haven't had a chance

1118
00:46:16,100 --> 00:46:19,000
to review that transcript
before coming out here.

1119
00:46:19,000 --> 00:46:20,600
But we'll see if we
can get you something.

1120
00:46:20,600 --> 00:46:21,900
The Press:
-- answer back on that?

1121
00:46:21,900 --> 00:46:22,870
Mr. Schultz:
I will try my best.

1122
00:46:22,867 --> 00:46:24,597
Thank you, guys.