PBS NewsHour; December 22, 2010 3:00pm-4:00pm PST

Captioning sponsored by MacNEIL/LEHRER PRODUCTIONS

>> Brown: GOOD EVENING. I'M JEFFREY BROWN. PRESIDENT OBAMA ASSESSED THE LEGISLATIVE OUTPUT OF THE LAST WEEK AND SAID TODAY THE NATION IS NOT DOOMED TO ENDLESS GRIDLOCK.

>> Ifill: AND I'M GWEN IFILL. ON THE "NEWSHOUR" TONIGHT: WE TAKE A LOOK AT THE PRESIDENT'S LAME DUCK ACCOMPLISHMENTS AND ASK ANDY KOHUT AND SUSAN PAGE WHAT THE SEVEN WEEKS SINCE HIS MIDTERM SHELLACKING TELL US ABOUT WHAT COMES NEXT.

>> Brown: THEN, WE TAKE A CLOSER LOOK AT TWO OTHER MAJOR PIECES OF LEGISLATION PASSED THIS WEEK. FIRST, TODAY'S BILL TO PROVIDE HEALTH CARE BENEFITS TO THE SURVIVORS AND FIRST RESPONDERS OF 9/11.

>> Ifill: AND ERIC OLSON OF THE PEW TRUST WALKS US THROUGH THE NEW FOOD SAFETY LAW.

>> Brown: RAY SUAREZ WRAPS UP HIS SERIES OF REPORTS FROM HAVANA. TONIGHT, A LOOK AT MEDICAL DIPLOMACY, CUBA-STYLE.

>> TENS OF THOUSANDS OF DOCTORS HAVE TREATED MILLIONS OF PATIENTS IN THE POOREST COUNTRIES ON EARTH. FINDING GOOD WILL FOR A COUNTRY SHUNNED BY THE UNITED STATES.

>> Brown: THAT'S ALL AHEAD ON TONIGHT'S "NEWSHOUR." MAJOR FUNDING FOR THE PBS NEWSHOUR HAS BEEN PROVIDED BY:

>> WELL, THE BEST COMPANIES ARE DRIVEN BY NEW IDEAS.

>> OUR HISTORY DEPENDS ON NEW IDEAS. WE SPEND BILLIONS ON ADVANCED TECHNOLOGIES.

>> IT'S ALL ABOUT INVESTING IN THE FUTURE.

>> WE CAN FIND NEW ENERGY-- MORE CLEANER, SAFER AND SMARTER.

>> COLLABORATING WITH THE BEST IN THE FIELD.

>> CHEVRON WORKS WITH THE SMARTEST PEOPLE AT LEADING UNIVERSITIES AND TECH COMPANIES.

>> AND YET, IT'S REALLY BASIC.

>> IT'S PAYING OFF EVERYDAY.

>> FOR THREE HOURS A WEEK, I'M A COACH, BUT WHEN I WAS DIAGNOSED WITH PROSTATE CANCER, I NEEDED A COACH. OUR DOCTOR WAS GREAT, BUT WITH SO MANY TOUGH DECISIONS, I FELT LOST. UNITED HEALTHCARE OFFERED A SPECIALLY TRAINED R.N., WHO HELPED US WEIGH AND UNDERSTAND ALL OUR OPTIONS. FOR ME, CANCER WAS AS SCARY AS A FASTBALL IS TO SOME OF THESE KIDS, BUT MY COACH HAD HIT THAT PITCH BEFORE.

>> TURNING DATA INTO USEFUL ANSWERS. WE'RE 78,000 PEOPLE LOOKING OUT FOR 70 MILLION AMERICANS. THAT'S HEALTH IN NUMBERS. UNITED HEALTHCARE.

>> AND BY THE BILL AND MELINDA GATES FOUNDATION. DEDICATED TO THE IDEA THAT ALL PEOPLE DESERVE THE CHANCE TO LIVE A HEALTHY PRODUCTIVE LIFE. AND WITH THE ONGOING SUPPORT OF THESE INSTITUTIONS AND FOUNDATIONS. AND... THIS PROGRAM WAS MADE POSSIBLE BY THE CORPORATION FOR PUBLIC BROADCASTING. AND BY CONTRIBUTIONS TO YOUR PBS STATION FROM VIEWERS LIKE YOU. THANK YOU.

>> Ifill: PRESIDENT OBAMA MARKED TWO MAJOR VICTORIES TODAY AS CONGRESS WOUND DOWN FOR THE YEAR. IT WAS PART OF AN END-OF-YEAR COMEBACK FOR MR. OBAMA AND HIS AGENDA. THE PRESIDENT'S VICTORY LAP CAME DURING A LATE AFTERNOON NEWS CONFERENCE, SHORTLY AFTER THE SENATE RATIFIED THE NEW START NUCLEAR TREATY.

>> A LOT OF FOLKS IN THIS TOWN PREDICTED THAT, AFTER THE MIDTERM ELECTIONS, WASHINGTON WOULD BE HEADED FOR MORE PARTISANSHIP AND MORE GRIDLOCK. AND INSTEAD, THIS HAS BEEN A SEASON OF PROGRESS FOR THE AMERICAN PEOPLE.

>> THE VOTE ON THIS RESOLUTION ARE 71 YAYS, 26 NAYS, RESOLUTION OF RATIFICATION IS AGREED TO.

>> THIS WAS A VERY, VERY IMPORTANT, MEASURE FOR THE PRESIDENT IN TERMS OF HIS ABILITY TO MOVE AMERICA'S AGENDA ON A GLOBAL BASIS.

>> Ifill: THE WHITE HOUSE PINNED ITS HOPES FOR THE LAME DUCK SESSION ON EXTENDING BUSH-ERA TAX CUTS; REPEALING "DON'T ASK, DON'T TELL" AND RATIFYING "START."

>> SO I THINK IT'S FAIR TO SAY THAT THIS HAS BEEN THE MOST PRODUCTIVE POST-ELECTION PERIOD WE'VE HAD IN DECADES. AND IT COMES ON THE HEELS OF THE MOST PRODUCTIVE TWO YEARS THAT WE'VE HAD IN GENERATIONS.

>> Ifill: CONGRESS ALSO PASSED A LAW OVERHAULING THE NATION'S FOOD SAFETY LAWS AND, TODAY, A HEALTH CARE BILL FOR 9/11 FIRST RESPONDERS. HOURS EARLIER, HE USED 15 PENS TO SIGN THE BILL ALLONG GAYS AND LESBIANS TO SERVE OPENLY IN THE MILITARY.

>> NO LONGER WILL TENS OF THOUSANDS OF AMERICANS IN UNIFORM BE ASKED TO LIVE A LIE, OR LOOK OVER THEIR SHOULDER IN ORDER TO SERVE THE COUNTRY THAT THEY LOVE. ( APPLAUSE )

>> Ifill: THE PRESIDENT ALSO SAID HIS OPPOSITION TO GAY MARRIAGE IS EVOLVING. WITH I'VE SPOKE BEN THIS RECENTLY. MY FEELINGS ABOUT OF ARE CONSTANTLY EVOLVING, I STRUGGLE WITH THIS. I HAVE FRIENDS, I HAVE PEOPLE WHO WORK FOR ME WHO ARE IN POWERFUL, STRONG LONG-LASTING GAY OR LESBIAN UNIONS. AND THEY ARE EXTRAORDINARY PEOPLE. AND THIS IS SOMETHING THAT MEANS A LOT TO THEM, AND THEY CARE DEEPLY ABOUT. AT THIS POINT WHAT I'VE SAID IS THAT MY BASELINE IS A STRONG CIVIL UNION THAT PROVIDES THEM THE PROTECTIONS AND THE LEGAL RIGHTS THAT MARRIED COUPLES HAVE AND I THINK THAT'S THE RIGHT THING TO DO. BUT I RECOGNIZE THAT FROM THEIR PERSPECTIVE IT IS NOT ENOUGH. AND I THINK THIS IS SOMETHING THAT WE'LL CONTINUE TO DEBATE AND I PERSONALLY AM GOING TO CONTINUE TO WRESTLE WITH GOING FORWARD.

>> Ifill: ALL TOLD, THE DAY'S EVENTS COMPLETED AN UNLIKELY JOURNEY FOR A PRESIDENT WHO SEEMED TO BE REELING JUST SEVEN WEEKS AGO, WHEN DEMOCRATS SUFFERED HEAVY LOSSES IN THE MID-TERM ELECTIONS.

>> NOW, I'M NOT RECOMMENDING FOR EVERY FUTURE PRESIDENT THAT THEY TAKE A SHELLACKING LIKE THEY... LIKE I DID LAST NIGHT. ( LAUGHTER ) I'M SURE THERE ARE EASIER WAYS TO LEARN THESE LESSONS. BUT I DO THINK THAT THIS IS A GROWTH PROCESS AND AN EVOLUTION.

>> Ifill: THERE WAS ONE KEY SETBACK-- WHEN THE SENATE REFUSED TO TAKE UP THE "DREAM ACT," WHICH WOULD HAVE PROVIDED A PATH TO CITIZENSHIP FOR THE CHILDREN OF ILLEGAL IMMIGRANTS.

>> MAYBE MY BIGGEST DISAPPOINTMENT WAS THIS DREAM ACT VOTE. YOU KNOW, I GET LETTERS FROM KIDS ALL ACROSS THE COUNTRY. CAME HERE WHEN THEY WERE FIVE, CAME HERE WHEN THEY WERE EIGHT. THEIR PARENTS WERE UNDOCUMENTED, THE KIDS DIDN'T KNOW IT. THE KIDS ARE GOING TO SCHOOL LIKE ANY OTHER AMERICAN KID, THEY'RE GROWING UP, PLAYING FOOTBALL, THEY'RE GOING TO CLASS. THEY'RE DREAMING ABOUT COLLEGE. AND SUDDENLY THEY COME TO 18, 19 YEARS OLD, AND THEY REALIZE EVEN THOUGH I FEEL AMERICAN, I AM AN AMERICAN, THE LAW DOESN'T RECOGNIZE ME AS AN AMERICAN. I'M WILLING TO SERVE MY COUNTRY, I'M WILLING TO FIGHT FOR THIS COUNTRY. I WANT TO GO TO COLLEGE AND BETTER MYSELF. AND I'M AT RISK OF DEPORTATION. AND IT IS HEARTBREAKING. THAT CAN'T BE WHO WE ARE. ONE THING I HOPE PEOPLE HAVE SEEN DURING THIS LAME DUCK, I AM PERSISTENT. I AM PERSISTENT. IF I BELIEVE IN SOMETHING STRONGLY, I STAY ON IT.

>> Ifill: BUT FOR THE PRESIDENT, THERE WERE MOSTLY VICTORIES. IN EARLY DECEMBER, HE ANNOUNCED A LANDMARK FREE-TRADE DEAL BETWEEN THE U.S. AND SOUTH KOREA. THEN HE MET SENATE REPUBLICANS HALFWAY ON THE TAX CUT DEAL, SPARKING FIERCE OPPOSITION WITHIN HIS OWN PARTY.

>> WE WERE TOLD YESTERDAY BY THE VICE PRESIDENT THIS WAS A TAKE IT OR LEAVE DEAL. WE'RE SAYING, "LEAVE IT."

>> Ifill: ALL BUT DISMISSING HIS CRITICS, THE PRESIDENT SAID IDEOLOGY COULD NOT ALWAYS WIN THE DAY.

>> PEOPLE WILL HAVE THE SATISFACTION OF HAVING A PURIST POSITION AND NO VICTORIES FOR THE AMERICAN PEOPLE. AND WE WILL BE ABLE TO FEEL GOOD ABOUT OURSELVES AND SANCTIMONIOUS ABOUT HOW PURE OUR INTENTIONS ARE AND HOW TOUGH WE ARE.

>> Ifill: MR. OBAMA SIGNED THE TAX CUT INTO LAW LAST FRIDAY. REPUBLICANS WHO COMPROMISED ON TAXES WERE MORE RESISTANT WHEN IT CAME TO THE "START" TREATY.

>> I CANNOT IMAGINE THIS PRESIDENT TAKING IT TO THE LIMIT WITH THE RUSSIANS. NOTHING HE HAS DONE HAS CONVINCED ME THAT HE IS COMMITTED TO DEFENSE.

>> Ifill: BUT IN THE END, 13 REPUBLICANS JOINED THE VOTE FOR RATIFICATION. IF ANYTHING, THOUGH, BEING CRITICIZED FROM BOTH SIDES MAY BE HELPING THE PRESIDENT. A GALLUP POLL LAST WEEK SHOWED 46% OF AMERICANS APPROVE OF HIS JOB PERFORMANCE. BY CONTRAST, CONGRESS SAW ITS LOWEST APPROVAL RATING EVER AT JUST 13%. STILL, SENATE REPUBLICAN LEADER MITCH McCONNELL ISSUED A REMINDER TODAY THAT THE PRESIDENT SHOULD NOT READ TOO MUCH INTO HIS VICTORIES. "REPUBLICANS," HE SAID, "WILL HAVE STRENGTH IN NUMBERS IN THE NEXT CONGRESS." WRITING FOR THE "NATIONAL REVIEW," HE SAID "... AMERICANS ARE CORRECT IN THINKING CHANGE HAS COME TO WASHINGTON." THE PRESIDENT CONCEDED TODAY THERE ARE BATTLES TO COME.

>> IF THERE'S ANY LESSON TO DRAW FROM THESE PAST FEW WEEKS, IT'S THAT WE ARE NOT DOOMED TO ENDLESS GRIDLOCK. WE'VE SHOWN IN THE WAKE OF THE NOVEMBER ELECTIONS THAT WE HAVE THE CAPACITY NOT ONLY TO MAKE PROGRESS, BUT TO MAKE PROGRESS TOGETHER. AND I'M NOT NAIVE. I KNOW THERE WILL BE TOUGH FIGHTS IN THE MONTHS AHEAD. BUT MY HOPE HEADING INTO THE NEW YEAR IS THAT WE CAN CONTINUE TO HEED THE MESSAGE OF THE AMERICAN PEOPLE AND HOLD TO A SPIRIT OF COMMON PURPOSE IN 2011 AND BEYOND. AND IF WE DO THAT, I'M CONVINCED THAT WE WILL LIFT UP OUR MIDDLE CLASS, WE WILL REBUILD OUR ECONOMY, AND WE WILL MAKE OUR CONTRIBUTION TO AMERICA'S GREATNESS.

>> Ifill: AFTER SPEAKING WITH REPORTERS, THE PRESIDENT LEFT FOR A DELAYED HOLIDAY VACATION WITH HIS FAMILY IN HAWAII. FOR A BROADER LOOK AT THE PRESIDENT'S REVERSAL OF FORTUNE, WE TURN TO SUSAN PAGE, WASHINGTON BUREAU CHIEF FOR "USA TODAY" AND ANDREW KOHUT, PRESIDENT OF THE PEW RESEARCH CENTER. WE JUST HEARD THE PRESIDENT DECLARE THE END OF GRIDLOCK, SUSAN, IS THAT WHAT WE SAW?

>> I THINK WE SAW A REMARKABLE PROGRESS IN DECEMBER. THE PRESIDENT HAD A BAD NOVEMBER HAD A PRETTY GOOD DECEMBER, BETTER THAN MOST OF US EXPECTED. BUT THAT DOES NOT NECESSARILY MEAN JANUARY IS GOING TO BE BETTER. IT WILL BE A DIFFERENT POLITICAL LANDSCAPE WHEN THE NEW CONGRESS COMES IN IN JANUARY. SO HE SHOULD SAVOR THESE MOMENTS OF VICTORY TODAY.

>> Ifill: OF THE THREE BIG VICTORIES, "DON'T ASK DON'T TELL", THE TAX CUTS, AND START TREATY, WHICH WOULD YOU SAY THAT THE WHITE HOUSE PARTICULARLY SAYS NEEDED THE MOST, WANTED THE MOST?

>> I THINK THIS VINDICATES THE DECISION THAT THEY MADE TO TAKE THE TAX CUT DEAL THEY COULD GET QUICKLY AND NOT STAGE THE KIND OF PUBLIC BATTLE THAT A LOT OF LIBERAL DEMOCRATS WANTED TO HAVE, AND THAT WAS TO PROTECT I THINK THE START TREATY. START TREATY A BIG AGENDA ITEM ON THE NATIONAL SECURITY FRONT, ONE THAT IF IT GOT LAID OVER TO THE NEXT CONGRESS ITS PROSPECTS LESS CERTAIN IN THE NEW SENATE. "DON'T ASK DON'T TELL" ALSO THOUGH AN IMPORTANT VICTORY, A BIG SIGNAL TO THE PRESIDENT'S FACE THAT HE HAD DELIVERED ON AN IMPORTANT PROMISE HE MADE TO GAY AMERICANS.

>> Ifill: I REMEMBER WHEN HE USED TO GET HECKLED SAYING HE WASN'T DOING ENOUGH PASSING ON THAT ISSUE. WHEN YOU TAKE A LOOK AT WHAT AMERICAN PEOPLE HAVE BEEN DEMANDING, WHAT MESSAGES THEY WERE SUPPOSED TO HAVE SENT DURING THIS ELECTION, HOW DOES WHAT HAS HAPPENED SINCE THE MIDTERM SQUARE WITH THAT?

>> I THINK THE AMERICAN PUBLIC WILL BE SURPRISED BY WHAT THEY'VE SEEN IN DECEMBER. WHEN WE ASKED THEM AFTER THE ELECTION WHAT DID THEY WITHIN THE PRESIDENT AND REPUBLICANS DO, THEY SAID GET SOME THING DOWN. AND THEY SAID DO YOU THINK THEY WILL HAPPEN, THEY SAID NO. I THINK THEY WILL LOOK FAVORABLY BOND THIS. BUT YOU KNOW WHAT'S INTERESTING ABOUT THESE THREE PIECES OF LEGISLATION, THAT IS THEY'RE STRONG INDEPENDENT SUPPORT FOR EVERY ONE OF THESE THREE. AND THE REPUBLICAN OPPOSITION ON GAYS IN THE MILITARY AND EVEN THE START TREATY ISN'T ALL THAT SUBSTANTIAL. THE REPUBLICANS ARE DIVIDED ON IT. WE DON'T HAVE ISSUES HERE WHERE THE REPUBLICANS ARE WAY ON ONE SIDE AND THE DEMOCRATS ARE WAY ON THE OTHER SIDE. REPUBLICANS ARE LESS POSITIVE. NOW, ON THE TAX DEAL, WE HAD A LIBERAL DEMOCRATS AND CONSERVATIVE REPUBLICANS EKE ACTUALLY APPROVING, REMARKABLE.

>> Ifill: WAS THAT APPEALING TO INDEPENDENTS TO HAVE A PRESIDENT ALIENATE THE MOST CONSERVATIVE MEMBERS OF THE REPUBLICAN PARTY ON ONE SIDE OF THE MOST LIBERAL MEMBERS OF HIS OWN PARTY ON THE OTHER?

>> WELL, I DON'T KNOW ABOUT WHETHER INDEPENDENTS THINK THAT'S THAT STREJICLY. BUT WHAT IS IMPORTANT TO THEM IS THAT HE GOT THINGS DONE. WHAT WE SEE IN OBAMA'S IMAGE IS A SLIP IN, HE CAN, HE'S THE KIND OF PRESIDENT WHO ACHIEVES THINGS, AND THIS WILL BE VERY HELPFUL TO HIM, WITH INDEPENDENTS WHO HAVE BEEN, WERE THE DEMOCRATS' BIGGEST PROBLEM IN THE LAST ELECTION.

>> Ifill: YET WE DON'T WANT TO OVERREACH. IT SEEMS THAT THE REPUBLICANS ARE AS WEAK AS THEY SEEM AT THIS MOMENT, OR DEMOCRATSS ARE AS STRONG AS THEY SEEM, OR GOING BACK SEVEN WEEKS WHETHER THE REPUBLICANS WERE AS STRONG AS THEY SEEMED AND THE DEMOCRATSS WERE AS WEEK WEEK AS THEY SEEMED.

>> THE RESULTS OF THE ELECTION, WE DIDN'T SEE WITH THESE FOLKS. WE'RE GOING TO HAVE MORE THAN 100 NEW MEMBERS OF CONGRESS COME IN IN JANUARY. CLOSE TO HALF OF THEM WERE ELECTED BY AFFILIATIONS WITH THE TEA PARTY MOVEMENT. AND THAT WILL BE A GROUP THAT IS VERY SUSPICIOUS OF COMPROMISE. ELECTED ON REALLY HARD LINE POSITIONS ON ISSUES. ONE OF THE THINGS THEY DID THIS LAST COUPLE DAYS THAT WAS A DISAPPOINTMENT TO THE WHITE HOUSE WAS THE FUNDING BILL FOR THE GOVERNMENT THAT WENT ONLY UNTIL MARCH. THEY HAD HOPED TO GET ONE FOR A LONGER PERIOD OF TIME. THAT MEANS IN EARLY MARCH THIS ISSUE OF SPENDING CUTS IS GOING TO COME TO A HEAD IN THE CONGRESS AND THAT WILL BE A HUGE BATTLE, AND THAT'S WHEN YOU'LL SEE THE TALK ABOUT A GOVERNMENT SHUTDOWN THAT BECAME SUCH A BIG ISSUE AFTER THE 1994 MIDTERMS.

>> Ifill: THE PRESIDENT'S ALLIES ON THESE KEY ISSUES, ESPECIALLY IN THE OTHER PARTY, WILL THEY EXIST, WILL THEY HAVE ANY MOITY VISION IN THE NEW CONGRESS?

>> OF THE 13 REPUBLICANS WHO VOTED FOR RATIFICATION OF THE NEW START TREATY, THREE OF LEAVING CONGRESS, TEN WILL STILL BE THERE.

>> Ifill: JOHN McCAIN WAS NOT ONE OF THEM.

>> NO, IN FACT WITH THE EXCEPTION OF AFGHANISTAN HE HAS NOT SUPPORTED THE PRESIDENT ON ANY MAJOR ISSUE SINCE THE PRESIDENT BEAT HIM IN THE 2008 ELECTION.

>> Ifill: HE WAS ACTUALLY TALKING TO HIM ABOUT START THERE AT THE END, AND IT JUST DIDN'T PAN OUT.

>> BECAUSE HE'S BEEN A LEADER ON SO MANY OF THESE ISSUES IN THE PAST, NOW HAES ANOTHER ODDS WITH THE ADMINISTRATION. SO I THINK IT DANGEROUS TO SAY BECAUSE THEY WERE ABLE TO COMPROMISE HERE YOU'RE GOING TO SEE MORE COMPROMISE IN NEXT YEAR'S CONGRESS. I THINK THAT'S A HARD THING TO PREDICT AS YOU LOOK AT THE NUMBERS NOW. IFDZ WE HEARD THE PRESIDENT TALK ABOUT GAY MARRIAGE. I WONDER WHETHER HIS EVOLUTION AS HE DESCRIBES IT OF THINKING GO GAY MARRIAGE AS OPPOSED TO GAY UNIONS, IN THE WAKE OF "DON'T ASK DON'T TELL", WHETHER THAT'S SUPPORTED BY WHAT THE AMERICAN PEOPLE SAY THEY FEEL ABOUT THE IDEA OF GAY UNIONS.

>> THERE IS CERTAINLY SUPPORT FOR CIVIL UNIONS ON GAYS, AND SOMEWHAT MORE SUPPORT FOR GAY MARRIAGE. IT'S GROWN SOMEWHAT. BUT WE STILL DON'T HAVE A CONSENSUS OR MAJORITY SUPPORT FOR THE IDEA OF GAY MARRIAGE. "DON'T ASK DON'T TELL" IS, WAS BROADLY POPULAR. GAY MARRIAGE IS NOT THERE. THE DYNAMICS OF PUBLIC OPINION ABOUT THESE ISSUES ARE VERY MUCH THE SAME, BASED UPON GENERATION. BUT YOU DON'T HAVE THE SAME, YOU DON'T HAVE THE SAME KIND OF SUPPORT FOR GAY MARRIAGE THAT YOU HAD IN THIS PARTICULAR CASE.

>> Ifill: WHAT ABOUT DYNAMICS FOR THINGS LIKE TAX CUTS, WHERE IT'S A MATTER OF WHO -- IN THE EN WAS HE TAKING THAT MUCH OF A RISK IN PUSHING FORWARD WITH THIS COMPROMISE?

>> WELL, WAS HE TAKING THAT RISK.

>> Ifill: YES.

>> I DON'T KNOW. IT DOESN'T APPEAR THAT WAY, BECAUSE THE DEMOCRATS, MOST OF THE DEMOCRATS SAID IN RESPONSE TO THIS, THIS IS GOOD FOR ME PERSONALLY AND IT'S GOOD FOR THE ECONOMY. THEY WENT ONTO SAY WE DON'T THINK IT'S GOOD FOR THE DEFICIT. BUT THE DEFICIT CONCERNS OFTEN GET A LOWER PRIORITY, PARTICULARLY AMONG DEMOCRATS, THAN PERSONAL ECONOMIC SITUATION.

>> Ifill: WE HEARD THE PRESIDENT TALK ABOUT, AT SOME LENGTH, WAS THE DREAM ACT AND HIS DISAPPOINTMENT THAT THAT DID NOT PASS. IN THE END CONSIDERING THE OTHER THINGS HE WAS ABLE TO PULL OFF, WHY DID THAT ONE FALL SHORT?

>> I THINK THERE WAS NEVER A REAL PROSPECT WHAT THE DREAM ACT WOULD PASS. I THINK IT WAS IMPORTANT TO SOME DEMOCRATS THAT THEY MAKE AN EFFORT, HISPANICS ARE SUCH A KEY VOTING GROUP IN THE UNITED STATES, THE FASTEST GROWING ETHNIC GROUP WE HAVE. BUT I THINK THAT WAS A BRIDGE TOO FAR. A LOT OF PEOPLE DIDN'T THINK HE'D GET START. THE 9/11 BILL, "DON'T ASK DON'T TELL", I MEAN, THIS IS, WITH HAVING JUST SEEN THESE VICTORIES YOU SHOULDN'T UNDERESTIMATE WHAT A BIG ACHIEVEMENT THIS IS. AND JUST IN WEEKS AFTER TAKING WHAT THE PRESIDENT KEEPS CALLING A SHELL ACTING IN THE ELECTION, YOU REMEMBER 1994 IN 1994 WHEN PRESIDENT CLINTON TOOK A SHELLACKING IN THAT MIDTERM, IT TOOK HIM A LONG TIME TO FIND HIS SEA LEGS AGAIN. WE'VE SEEN THIS PRESIDENT RESPOND VERY QUICKLY TO THIS NEW DYNAMIC.

>> Ifill: DOES THIS MEAN THAT, IS THERE A LESSON TO BE LEARNED FROM REPUBLICANS TO THAT I THEY HAVE TO RETHINK THEIR RELATIONSHIP WITH THE OBAMA WHITE HOUSE, OR IS THERE A LESSON FOR THE OBAMA WHITE HOUSE THEY HAVE TO RETHINK THEIR RELATIONSHIP WITH CONGRESSIONAL REPUBLICANS?

>> WELL, THEY BOTH HAVE TO BE, ESPECIALLY THE REPUBLICANS, VERY WARY OF THEIR BASE. IN THE POLL WE DID RIGHT AFTER THE ELECTION WE ASKED THE REPUBLICANS WHAT DO THEY WANT, DO THEY WANT THEIR PARTY TO COMPROMISE AND GET THINGS DONE, OR STAND UP TO THE PRESIDENT. 86-6S WITH THE MARGIN AMONG REPUBLICANS. AMONG DEMOCRATS TOZ TO STAND UP TO THE PRESIDENT. AMONG DEMOCRATSS THEY WERE EVENLY DIVIDED ON THIS. THE REASON IS REPUBLICANS ARE MORE CONSERVATIVE THAN DEMOCRATS ARE LIBERAL. THE REPUBLICAN PARTY IS A MORE POLITICIZED PARTY THAN THE DEMOCRATIC PARTY. AND REPUBLICANS WILL HAVE SOME REAL ISSUES IF ON MANY ISSUES GIVEN THIS TENDENCY.

>> Ifill: WE'LL START ALL OVER AGAIN IN JANUARY, FOLKS. ANDY KOHUT, SUSAN PAGE, THANK YOU VERY MUCH.

>> THANK YOU.

>> Brown: STILL TO COME ON THE "NEWSHOUR": HEALTH CARE FOR 9/11 FIRST RESPONDERS; NEW FOOD SAFETY RULES AND CUBA'S MEDICAL DIPLOMACY. BUT FIRST, THE OTHER NEWS OF THE DAY. HERE'S HARI SREENIVASAN IN OUR NEWSROOM.

>> Sreenivasan: THE FEDERAL GOVERNMENT'S OPERATIONS ARE NOW FUNDED AT LEAST THROUGH MARCH 4. PRESIDENT OBAMA SIGNED A TEMPORARY SPENDING BILL TODAY THAT FREEZES MOST AGENCY BUDGETS AT CURRENT LEVELS. AND CONGRESS AUTHORIZED SPENDING ANOTHER $160 BILLION ON MILITARY OPERATIONS IN IRAQ AND AFGHANISTAN. THE BILL INCLUDES A MILITARY PAY RAISE OF 1.4%. WHITE HOUSE OFFICIALS DID DAMAGE CONTROL TODAY AFTER A LAPSE BY THE NATION'S TOP INTELLIGENCE OFFICIAL. ON TUESDAY, ABC NEWS ASKED JAMES CLAPPER-- THE DIRECTOR OF NATIONAL INTELLIGENCE-- ABOUT MONDAY'S NEWS OF A TERROR PLOT IN BRITAIN. CLAPPER HAD NOT HEARD ABOUT IT. TODAY, HOMELAND SECURITY ADVISOR JOHN BRENNAN SAID CLAPPER HAD BEEN FOCUSED ON TENSIONS IN KOREA AND THE SENATE DEBATE ON A NUCLEAR TREATY WITH RUSSIA.

>> SHOULD HE HAVE BEEN BRIEFED BY A STAFF ON THOSE ARRESTS? YES. AND I KNOW THERE WAS BREATHLESS ATTENTION BY THE MEDIA ABOUT THESE ARRESTS AND IT WAS CONSTANTLY ON THE NEWS NETWORKS. I'M GLAD THAT JIM CLAPPER IS NOT SITTING IN FRONT OF THE TV 24 HOURS A DAY, AND MONITORING WHAT'S COMING OUT OF THE MEDIA. WHAT HE'S DOING IS FOCUSING ON THOSE INTELLIGENCE ISSUES THE PRESIDENT EXPECTS TOM FOCUS ON.

>> Sreenivasan: BRENNAN SAID U.S. AUTHORITIES ARE WORKING ROUND THE CLOCK TO PREVENT ANY HOLIDAY-SEASON ATTACK. SO FAR, OFFICIALS HAVE SAID THERE IS NO SPECIFIC, CREDIBLE THREAT. ONE OF THE WORLD'S BUSIEST INTERNATIONAL AIRPORTS MADE SLOW PROGRESS TODAY, GETTING BACK UP TO SPEED. SNOW AND A DEEP FREEZE HAD ALL BUT PARALYZED HEATHROW OUTSIDE LONDON SINCE SATURDAY. THAT IN TURN, ROILED AIRLINE SCHEDULES AROUND THE GLOBE. WE HAVE A REPORT FROM CHRIS CHOI OF "INDEPENDENT TELEVISION NEWS."

>> Reporter: NEVER HAVE PASSENGERS BEEN SO RELIEVED TO ESCAPE THE CLUTCHES OF AN AIRPORT, BUT THE BACKLOG THAT'S TURNED TERMINALS INTO SQUATS CONTINUES. AND TONIGHT, WE'VE LEARNED POLICE WERE CALLED TO THE THAI AIRWAYS DESK AFTER ANGRY SCENES.

>> I THINK JUST THE FRUSTRATION, I DON'T THINK ANYONE WANTS TO TAKE IT OUT ON THE STAFF. I THINK IT'S THE SHEER FRUSTRATION OF NOTHING BEING DONE.

>> IT'S JUST UNBELIEVABLE THAT PEOPLE ARE STUCK UP HERE AND ONLY THE COURTESY TO JUST TALK TO SOMEBODY IN A POLITE MANNER.

>> Reporter: THE HIBERNATION OF HEATHROW IS ENDING, AFTER FIVE GRUELING SNOW-BOUND DAYS. BUT DON'T GET THE IMPRESSION THINGS ARE BACK TO NORMAL. PLANES AND PEOPLE HAVE BEEN LEFT IN THE WRONG PLACES. AGAIN TODAY PASSENGERS ARE BEING TURNED AWAY FROM TERMINALS INTO THE COLD. SOME OF THESE TRAVELERS HAVE BEEN HERE SINCE SATURDAY TONIGHT THE FIRST FIGURES OF THE OVERALL IMPACT ARE EMERGING. SINCE SATURDAY, 3,200 FLIGHTS HAVE BEEN CANCELLED. AROUND 500,000 PEOPLE STRANDED. TODAY 900 JETS USED HEATHROW, AROUND 70% OF USUAL TRAFFIC AMID THE CHAOS. UNIONS ATTACKED HEATHROW'S BOSS, CLAIMING HIS 944,000 POUND SALARY AND BONUS WAS A REWARD FOR FAILURE.

>> WE'VE HAD A CRITS IS IN THE LAST FEW DAYS, SO I'VE DECIDED NOT TO TAKE MY BONUS FOR 2010, BUT FRANKLY I HAVEN'T ABOUT THINKING ABOUT BONUS IS OVER THE WEEKEND. THE ONLY THINK WE'RE THINKING ABOUT IS TO GET PASSENGERS BACK

>> Reporter: THE AIRPORTS BOSSES PROMISE TO LEARN LESSONS, BUT TONIGHT, NOBODY CAN BE CERTAIN THEY WILL GET ANSWERS BEFORE WE GET THE NEXT SNOW.

>> Sreenivasan: A HUGE RAIN STORM OVER SOUTHERN CALIFORNIA TRIGGERED MORE DOWNPOURS TODAY. HEAVY RAIN IN THE LOS ANGELES AREA RAISED NEW FEARS OF MUDSLIDES. AND RESCUERS SAVED SEVERAL DOZEN PEOPLE TRAPPED BY MUD AND HIGH WATER. AND IN NORTHWESTERN ARIZONA, FLASH FLOODS IN BEAVER DAM TORE AWAY SEVERAL VACANT HOMES. IN IRAQ, THE SMALL CHRISTIAN COMMUNITY CALLED OFF CHRISTMAS EVENTS IN LEADING CITIES IN THE FACE OF NEW THREATS BY AL-QAEDA. CHURCH OFFICIALS IN BAGHDAD AND ELSEWHERE CONFIRMED THEY WILL NOT PUT UP DECORATIONS OR HOLD EVENING MASS. THEY ALSO URGED WORSHIPPERS NOT TO DECORATE THEIR HOMES. LAST OCTOBER, AN ATTACK ON A BAGHDAD CHURCH KILLED 68 PEOPLE. WALL STREET MADE SLIGHT GAINS IN LIGHT TRADING BEFORE THE CHRISTMAS HOLIDAY. THE DOW JONES INDUSTRIAL AVERAGE GAINED 26 POINTS TO CLOSE AT 11,559. THE NASDAQ ROSE JUST UNDER FOUR POINTS TO CLOSE AT 2,671. AND OIL CLIMBED BACK ABOVE $90 A BARREL, ON NEWS THAT U.S. CRUDE SUPPLIES FELL MORE THAN EXPECTED. AT THE SAME TIME, THE AVERAGE PRICE OF GASOLINE HIT $3 TODAY FOR THE FIRST TIME SINCE LATE 2008. THE WOMEN'S BASKETBALL TEAM AT THE UNIVERSITY OF CONNECTICUT NOW OWNS ONE OF THE GREATEST RECORDS IN COLLEGE SPORTS. THEY WON THEIR 89th GAME IN A ROW LAST NIGHT BREAKING A RECORD THAT HAD STOOD FOR NEARLY 40 YEARS.

>> AND UCONN HAS WON UP UCLA...

>> Sreenivasan: THE TOP-RANKED HUSKIES MADE THEIR BIT OF HISTORY IN HARTFORD BEATING NUMBER 22 FLORIDA STATE 93 TO 62. AND SENIOR ALL-AMERICAN MAYA MOORE AND HER TEAMMATES CELEBRATED BEFORE A SELLOUT CROWD.

>> WE'RE JUST EXCITED. WE'RE JUST CELEBRATING WITH THE FANS. THIS PLACE IS SOLD OUT. IT'S AMAZING.

>> Sreenivasan: WITH THE WIN, UCONN COACH GENO AURIEMMA'S TEAM SURPASSED THE 88-GAME STREAK SET BY JOHN WOODEN AND HIS U.C.L.A. MEN IN THE EARLY 1970s.

>> IT'S HARD TO DESCRIBE IT. YOU KNOW THE LAST COUPLE OF MINUTES OF THE GAME WHEN EVERYBODY'S GOT THEIR SIGNS AND EVERYTHING. IT'S PRETTY AMAZING. IT REALLY IS.

>> Sreenivasan: ALL THE MORE AMAZING, THE HUSKIES HAVE BEATEN OPPONENTS BY AN AVERAGE OF MORE THAN 30 POINTS DURING THEIR STREAK. MOORE HAS LED THE WAY FOR MUCH OF THAT TIME, AND HAD A CAREER- HIGH 41 POINTS LAST NIGHT.

>> EVERY NIGHT WHEN YOU NEED HER TO BE AT HER BEST, SHE'S AT HER BEST. I REMEMBER JOHN WOODEN SAID THAT'S WHAT COMPETITIVE GREATNESS IS TO BRING YOUR BEST WHEN YOUR BEST IS NEEDED AND EVERY TIME WE'VE NEEDED MAYA SHE'S THERE AND I'M GOING TO REMEMBER THAT FOREVER.

>> Sreenivasan: THE UCONN WOMEN HAVE NOT LOST SINCE APRIL OF 2008, AND ALONG THE WAY THEY'VE GAINED NATIONWIDE NOTICE. PRESIDENT OBAMA WAS WATCHING LAST NIGHT, AND INTERRUPTED AURIEMMA'S POST-GAME NEWS CONFERENCE WITH A CALL OF CONGRATULATIONS.

>> WE HAVE NOT LOST SINCE YOU'VE BEEN INAUGURATED. ( LAUGHTER ) HOW ABOUT WE KEEP THAT STREAK GOING FOR A COUPLE MORE YEARS, HUH?

>> Sreenivasan: UCONN NOW HAS ITS SIGHTS SET ON A THIRD STRAIGHT NATIONAL CHAMPIONSHIP. THOSE ARE SOME OF THE DAY'S MAJOR STORIES. NOW, BACK TO JEFF.

>> Brown: NOW, A CLOSER LOOK AT TWO MAJOR BILLS THAT WERE JUST APPROVED. FIRST, THE HEALTH AND COMPENSATION PACKAGE FOR 9/11 RESPONDERS, WORKERS, AND SURVIVORS. AS WE HEARD EARLIER, A LAST- MINUTE COMPROMISE LED TO SENATE PASSAGE OF A BILL TO PROVIDE UP TO $4.2 BILLION FOR MONITORING AND TREATING ILLNESSES RELATED TO GROUND ZERO AND TO RE-OPEN A VICTIMS' COMPENSATION FUND FOR ANOTHER FIVE YEARS. THE HOUSE HAD EARLIER PASSED ITS THIS AFTERNOON, LEGISLATORS FROM THE NEW YORK AREA AND SUPPORTERS HELD A PRESS CONFERENCE TO HAIL THEIR VICTORY.

>> ON 9/11, OUR COUNTRY WAS ATTACKED BY TERRORISTS. CERTAIN MEN AND WOMEN, THE STRONGEST, THE BRAVEST AMONG US, RAISED UP THOSE TOWERS WHEN EVERYBODY WAS COMING DOWN. THEY WERE THE ONES WHO WENT TO THE PILE FIRST TO LOOK FOR SURVIVORS, THEN THE FIND REMAINS. AND THEN TO DO THE CLEANUP. AND THEY NEVER FAILED. THEY NEVER STOPPED. THEY NEVER WAIVERED, THEY NEVER HAD ANY CONCERNS FOR THEMSELVES. OUR GOVERNMENT SAID THE AIR WAS SAFE, BUT THEY DIDN'T CARE, THEY WERE THERE BECAUSE THEY WERE ANSWERING THE CALL TO DUTY. I WANT TO THANK THEM.

>> WE HAVE GONE EIGHT CHRISTMASES WITHOUT FEDERAL ASSISTANCE. WE HAVE GONE EIGHT YEARS NOT KNOWING WHAT IT WILL BRING TO US ON NEW YEAR'S. THIS CHRISTMAS, WHILE YOU MIGHT NOT GET A CHECK BY FRIDAY MORNING, WILL OPEN A BOX WITH THE HELP THAT SAYS THE GOVERNMENT HELPS YOU, YOU CAN HAVE PEACE OF MIND KNOWING THAT HELP IS ON ITS WAY IN 2011, AND TO ME THAT'S BETTER THAN OPENING ANY CHRISTMAS PRESENT THIS YEAR.

>> A SHORT TIME AGO.

>> Brown: A SHORT TIME AGO, I SPOKE TO GLEN KLEIN WHO HAD JUST COME FROM THAT PRESS CONFERENCE. HE'S A NEW YORK CITY POLICE OFFICER WHO WAS AMONG THE FIRST RESPONDERS TO THE ATTACKS ON THE WORLD TRADE CENTER AND ONE OF THOSE WHO PERFORMED RESCUE AND RECOVERY WORK ON THE SITE FOR MANY MONTHS. HE RETIRED IN 2003, AFTER EXPERIENCING HEALTH PROBLEMS AS A RESULT OF HIS WORK. MR. KLEIN IS A MEMBER OF THE FEEL-GOOD FOUNDATION, WHICH ADVOCATED ON BEHALF OF 9/11 RESPONDERS. GLEN KLEIN, WELCOME TO YOU. THIS WAS A LONG TIME COMING. GIVE US YOUR REACTION TO TODAY'S ACTION.

>> THANK YOU, JEFF. RIGHT NOW I'M STILL SETING IN A LITTLE BIT. BUT I CAN TELL YOU RIGHT NOW THAT THE MEMBERS OF THE FEEL-GOOD FOUNDATION AND MYSELF WERE ECSTATIC THAT WE'LL BE ABLE TO BRING HOME THIS BILL TO 9/11 RESPONDERS. WE'VE BEEN WAITING SO MANY YEARS FOR VIN DAY INDICATION.

>> Brown: WHAT KIND OF ILLNESSES AND PROBLEMS IS THIS PACKAGE DESIGNED TO ADDRESS? REMIND US WHAT THIS IS ABOUT.

>> IT'S GOING TO ADDRESS ALL TYPES OF BREATHING PROBLEMS, ASTHMA, LUNG DAMAGE, POST-TRAUMATIC STRESS DISORDER. GASTROINTESTINAL PROBLEMS, THE WHOLE GAMUT. AS FAR AS I KNOW, I BELIEVE THAT THINGS COULD BE ADDED ON AS TIME GOES ON, DIFFERENT TYPES CANCERS THAT POP UP AND THINGS OF THAT NATURE.

>> Brown: AND YOU YOURSELF EXPERIENCED A LOT OF THIS, RIGHT?

>> I HAVE SOME LUNG DAMAGE, I HAVE SCARRING AND FOOD YOU'LLS ON MY LUNGS, I HAVE EXERCISE INDUCED ASTHMA, GASTROINTESTINAL PROBLEMS, AND POST-TRAUMATIC STRESS DISORDER ALSO.

>> Brown: THE COMPROMISE HAMMERED OUT IN THE SENATE TODAY IS FOR LESS MONEY THAN ORIGINALLY ASKED FOR. HOW WILL THE MONEY BE USED?

>> WELL, THE COMPENSATION PART OF THE MONEY WILL BE GIVEN TO THE 9/11 RESPONDERS WHO HAVEN'T HAD A JOB FOR SEVERAL YEARS AND HAD TO PAY FOR THEIR OWN MEDICAL EXPENSES, IT WILL HELP GET THEM OUT OF THE HOLE THEY'RE IN RIGHT NOW. THE MEDICAL PORTION WILL KEEP THE CENTERS OF EXCELLENCE OPEN, THOSE ARE THE HOSPITALS AND CLINICS THAT ARE TREATING ALL THE 9/11 RESPONDERS AND WHICH HAVE DOCTORS THAT ARE TRAINED TO HANDLE THE DIFFERENT TYPES OF ILLNESSES THAT WE'RE SEEING NOW FROM 9/11 RESPONDERS.

>> Brown: THERE WAS, AS YOU SAID THIS WAS A LONG DRAWN OUT AFFAIR AND THERE WAS OPPOSITION OVER THE AMOUNT OF MONEY, THERE WAS OPPOSITION AS TO HOW IT WOULD BE ADMINISTERED. WHAT DO YOU THINK IN THE END OVERCAME THAT?

>> IT WAS PERSISTENCE BY US, THE FEEL GOOD FOUNDATION, THE UNIONS THAT CAME OUT WITH US. THE FACT THAT THE BILL WAS CUT DOWN, THERE WAS A LOT OF DEALING GOING ON DEAT THE LAST MINUTE AND WE WERE ABLE TO WORK OUT A DEAL. AND WE FEEL THAT GETTING 4.2 BILLION OUT TO THE RESPONDENTS WHO NEED IT IS BETTER THAN NOT GETTING ANYTHING.

>> Brown: A LOT OF PEOPLE POINTED TO THE CHAMPIONING OF THIS BY JON STEWART ON HIS SHOW, BY FOX ANCHOR SHEPHERD SMITH. GOT A LOT AFTER TENSION IN THE LAST WEEK OR SO. DO YOU THINK THAT PLAYED A ROLE?

>> I'M SURE IT HAD SOMETHING TO DO WITH IT. BUT I SAY IT WAS THE PERSISTENCE OF THE UNIONS, THE FEEL GOOD FOUNDATION, THE DEAL MAKING, SO ON, SO FORTH. JON STEWART WAS GREAT, I'M SURE HE PUT A LITTLE BIT OF PRESSURE ON THEM. AND IT WAS A COMBINATION OF EVERYTHING ALTOGETHER.

>> Brown: ARE YOU CONFIDENT NOW GOING FORWARD THAT IT WILL BE ADMINISTERED AND HOW THE MONEY WILL BE USED AND ADMINISTERED?

>> I'M VERY CONFIDENT. I'M SURE THERE'S GOING TO BE OVERSIGHT. YOU KNOW, WE TAKE IT VERY SERIOUSLY THAT IF ANYBODY CLAIMS THEY WERE AT GROUND ZERO AND THEY WEREN'T, OR ANYBODY WHO CLAIMS THEY'RE SICK AND THEY'RE NOT, WE WANT TO MAKE SURE THEY DON'T GET WHAT THEY DON'T DESERVE AND IT GOES TO THE PEOPLE WHO DO DESERVE IT.

>> Brown: ALL RIGHT, THANKS VERY MUCH.

>> THANKS FOR HAVING ME ON. HAVE A HAPPY HOLIDAY.

>> Brown: THANKS, YOU TOO. TO ANOTHER OF THE LAST-MINUTE ACTIONS IN CONGRESS: THE OVERHAUL OF FOOD SAFETY REGULATIONS. FOODBORNE ILLNESS REMAINS A MAJOR PROBLEM IN THE U.S. ONE IN SIX AMERICANS BECOMES ILL FROM TAINTED FOOD EACH YEAR. 3,000 PEOPLE DIE. THE NEW LAW COMES AFTER A SERIES OF OUTBREAKS LINKED TO SPINACH, PEANUTS, EGGS AND OTHER FOODS. AMONG OTHER THINGS, IT GIVES THE FDA THE POWER TO ISSUE RECALLS; DO MORE INSPECTIONS AND FOR THE FIRST TIME WOULD REQUIRE FOOD IMPORTERS TO VERIFY THEIR PRODUCTS MEET U.S. SAFETY STANDARDS. ERIK OLSON OF THE PEW CHARITABLE TRUSTS WAS ONE OF THOSE WHO WORKED WITH CONGRESS TO SHAPE THE LEGISLATION AND HE JOINS US NOW. AS A GENERAL PROPOSITION, THIS IS AIMED AT MOVING TOWARDS MORE PREVENTION RATHER THAN REACTING, RIGHT?

>> THAT'S RIGHT. IN THE PAST REALLY FOR THE PAST 70 PLUS YEARS WE'VE BEEN DETECTIVES CHASING DOWN ILLNESSES AFTER THEY OCCUR AND TRYING TO FIGURE OUT WHAT THE CONTAMINATION WAS CAUSED BY. THIS WHOLE PROCESS IS GOING TO CHANGE, SO THAT WE'LL BE PREVENTING ILLNESSES, WE'LL BE PREVENTING CONTAMINATION BEFORE THE CONTAMINATED FOOD GETS ONTO THE GROCERY SHELVES.

>> Brown: LET'S BE CLEAR SO PEOPLE UNDERSTAND, WHAT IS COVERED AND WHAT IS NOT? BECAUSE THIS IS A COMPLICATED REGULAR LAER TO SYSTEM.

>> IT IS SOMEWHAT COMPLICATED. BUT BASICALLY ABOUT 08% OF THE U.S. FOOD SUPPLY WILL BE COVERED BY THIS LEGISLATION. MEAT AND POUL TRIAL ARE NOT PROTECTED THROUGH THE LEGISLATION, THAT'S REGULATED BY THE U.S. DEPARTMENT OF AGRICULTURE. THIS LEGISLATION AFFECTS THE FOOD AND DRUG ADMINISTRATION.

>> Brown: AND THAT'S DUE TO HISTORICAL REASONS, BUT THAT DOESN'T CHANGE.

>> THAT'S RIGHT, IT DOESN'T CHANGE THE HISTORICAL DIVISION OF LABOR THAT'S BEEN TRUE SINCE 19 OH 06.

>> Brown: THE F.D.A. WILL HAVE THE AUTHORITY TO RECALL FOOD, RATHER THAN IN THE PAST THEY HAD TO WAIT FOR VOLUNTARY ACTION BY COMPANIES.

>> THAT'S RIGHT. MOST PEOPLE DON'T REALIZE THIS, BUT F.D.A. HAS NEVER HAD THE AUTHORITY TO REQUIRE FOOD COMPANIES TO RECALL CONTAMINATED FOOD. SO THEY'VE HAD TO ASK FOR VOLUNTARY RECALLS AND USUALLY THE COMPANIES WOULD COMPLY WITH THAT. BUT THIS GIVES THEM IN THEIR BACK POCKET THE AUTHORITY TO FORCE A RECALL IF IT'S NECESSARY.

>> Brown: ANOTHER THING THAT COMPANIES WILL NOW HAVE TO DEVELOP WRITTEN SAFE PLANS THAT THE F.D.A. CAN OVERSEE? WHAT DOES THAT MEAN?

>> THAT'S RIGHT. RIGHT NOW WE DON'T HAVE A REQUIREMENT THAT THERE BE A PREVENTION BASED SYSTEM FOR FOOD PROCESSORS OR FOR THE PEOPLE THAT ARE GROWING OUR FOOD. THIS WILL CHANGE. THERE WILL BE A NEW REQUIREMENT THAT F.D.A. WILL OVERSEE TO MAKE SURE THAT A FOOD MANUFACTURER HAS A PLAN IN PLACE TO MAKE SURE THAT THE CONTAMINATION NEVER GETS INTO THE FOOD, SO THAT WE'RE NOT HAVING THE RECALLS THAT WE SEEM TO BE HAVING ALMOST WEEKLY IN THE PAST YEARS.

>> Brown: WHAT ABOUT INSPECTIONS WHAT HAS BEEN THE RULE UP TO NOW AND WHAT CHANGES?

>> IN THE PAST, IN FACT TO THIS DAY ON AVERAGE F.D.A. IS ONLY ABLE TO DO INSPECTIONS ABOUT ONCE EVERY TEN AND A HALF YEARS. SO OBVIOUSLY A LOT OF PROBLEMS HAVE CROPPED UP IN BETWEEN THOSE INSPECTIONS. THIS NEW LEGISLATION WILL RAMP UP A NEW REQUIREMENT SO THAT THERE WILL BE MUCH MORE FREQUENT INSPECTIONS, BASED OH ON THE RISK PRESENTED BY THE FACILITY. THE RISKIER THE FACILITY, THE MORE FREQUENT THE INSPECTIONS WILL BE.

>> Brown: AND THAT REQUIRES MORE INSPECTORS?

>> WE PRESUME THE F.D.A. WILL HAVE TO HIRE A LOT WHO ARE INSPECTORS. OBVIOUSLY HOW EFFECTIVE THIS ENDS UP BEING WILL DEPEND UPON THE RESOURCES THAT F.D.A. GETS IN THE NEXT APPROPRIATION CYCLE.

>> Brown: WHAT HAS BEEN THE HISTORY OF F.D.A.'S RESOURCES?

>> WELL, F.D.A. HAS ALWAYS BEEN UNDERFUNED IN THIS AREA. IN THE RECENT FEW YEARS THERE'S BEEN SOME INCREASE IN F.D.A.'S FOOD BUDGET. BUT IT'S CLEAR THAT WITH ALL THESE NEW AUTHORITIES THE FIRST OVERHAUL IN OVER 07 YEARS IS GOING TO REQUIRE THAT F.D.A. HAVE THE RESOURCES TO BACK UP ITS MUSCLE.

>> Brown: BEFORE I GET TO TIM PORT SIDE OF THIS, THERE ARE SOME EXCEPTIONS, RIGHT, FOR SMALLER PRODUCERS, SMALLER FARMS?

>> THAT'S RIGHT. THERE IS WHAT'S CALLED THE TESTER AMENDMENT THAT WAS ADDED IN THE SENATE, AND MADE IT INTO THE FINAL LAW THAT WILL EXEMPT VERY SMALL PRODUCERS FROM CERTAIN OF THE REQUIREMENTS. IT WAS SOMETHING THAT WAS SOMEWHAT CONTROVERSIAL IN THE HOUSE AND SENATE. WE THINK IT WILL ONLY EXEMPT A VERY SMALL PERCENTAGE OF THE FOOD SUPPLY. AND MOST HAVING IN MOST GROCERY STORES WILL BE COVERED BY THIS LEGISLATION, EXCEPT FOR THE MEAT AND POULTRY.

>> Brown: WHAT WAS THE THINKING ON EXEMPTING THE SMALLER ONES, THIS INCLUDES THE FARMERS MARKET RIGHT?

>> RIGHT. IT WILL EXEMPT A LOT OF FOOD IN THE FARMERS MARKET. THE ARGUMENT WAS THAT SMALL FARMERS ARE NOT ABLE TO COMPLY WITH THE SAME KINDS OF STANDARDS THAT ARE APPLIED TO VERY LARGE FARMERS. IT WASN'T SOMETHING THAT WE SOUGHT OUT. BUT THROUGH THE PROCESS IN THE SENATE IT WAS NECESSARY TO GET THE LEGISLATION PASSED.

>> Brown: NOW THE IMPORT SIDE. FIRST TIME THEY'D HAVE TO VERIFY IT MEETS U.S. SAFETY STANDARDS. HOW IMPORTANT IS THAT?

>> THAT'S RIGHT, THAT WILL BE ONE OF THE BIGGEST CHANGES IN THE LEGISLATION BECAUSE IT WILL HAVE GROBL IMPACT. WHAT IT DOES IS EVERY SUPPLIER THAT IS IMPORTING FOOD INTO THE UNITED STATES IS GOING TO HAVE TO CERTIFY THAT THAT FOOD WAS PRICED CONSISTENT WITH U.S. LAW. THAT WILL BACK UP THE CHAIN ALL THE WAY INTO CHINA AND INDIA AND ALL OVER THE WORLD. WE IMPORT FOOD FROM OVER 170 COUNTRIES, IT WILL MEAN THAT THOUSANDS OF FACILITIES ACROSS THE WORD WILL HAVE TO COME FLY WITH THESE NEW U.S. REQUIREMENTS.

>> Brown: HOW HARD IS IT TO IMPLEMENT THIS, ESPECIALLY WHEN YOU'RE TALKING ABOUT A GLOBAL IMPACT?

>> WELL, WE'VE WAITED OVER 70 YEARS FOR THIS KIND OF UPDATE. SO IT WILL TAKE A LITTLE BIT OF TIME BEFORE WE FULLY IMPLEMENT IT. SOME OF THESE AUTHORITIES, LIKE THE RECALL AUTHORITY AND F.D.A.'S ABILITY TO GET IN AND PULL RECORDS FROM THESE FACILITIES, THOSE ARE IMMEDIATE. SO F.D.A. CAN IMMEDIATELY DO THOSE. SOME OF THESE WILL REQUIRE REGULATIONS AND NEW POLICIES TO BE PUT INTO PLACE. SO THE NEXT FEW YEARS.

>> Brown: JUST IN OUR LAST MINUTE, THIS CAME TOGETHER WITH A FAIRLY BROAD COALITION, I GATHER, BUT THERE WAS SOME OPPOSITION COMING IN JANUARY THERE WILL BE A REPUBLICAN LED HOUSE. AND THESE QUESTIONS OF WHERE THE MONEY COMES FROM WILL COME BACK. SO IS THERE MORE TO COME HERE?

>> THERE IS MORE TO COME. BUT THIS IS A VERY UNUSUAL PIECE OF LEGISLATION. HAD VERY BROAD SUPPORT FROM DEMOCRATS, CONSERVATIVE REPUBLICANS, IT HAD A LOT OF INDUSTRY SUPPORT FROM THE FOOD INDUSTRY, GROCERY MANUFACTURERS ASSOCIATION, AND MANY CONSUMER AND OTHER GROUPS. SO IT HAD A BROAD COALITION OF IMPORTANT AND WE EXPECT THAT SAME BROAD COALITION WILL BE SUPPORTING RESOURCES FOR F.D.A. IN THE COMING CONGRESS.

>> Brown: ERIK OLSON, THANK YOU VERY MUCH.

>> THANK YOU FOR HAVING ME.

>> Ifill: NEXT, CUBA'S MEDICAL DIPLOMACY. RAY SUAREZ AND OUR GLOBAL HEALTH UNIT WRAP UP THEIR THREE-PART SERIES WITH THIS STORY.

>> Reporter: A 28-YEAR-OLD AMERICAN, PASHA JACKSON IS IN HIS SECOND YEAR OF MEDICAL SCHOOL. BUT HIS MEDICAL CAREER ACTUALLY STARTED A YEAR EARLIER, WHEN HE HAD TO BEGIN A CRASH COURSE IN SPANISH. BECAUSE JACKSON IS LEARNING TO BE A DOCTOR IN CUBA AND HIS ENTIRE SIX YEARS OF MEDICAL EDUCATION IS BEING PAID FOR BY THE CUBAN GOVERNMENT. HE IS ONE OF ABOUT 10,000 STUDENTS FROM 29 COUNTRIES NOW ENROLLED IN HAVANA'S LATIN AMERICAN MEDICAL SCHOOL, INCLUDING MORE THAN 100 AMERICANS.

>> I'VE ALWAYS HAD THE INTEREST IN MEDICINE. MEDICINE, BIOLOGY ANYTHING THAT HAS TO DEAL WITH HOW THINGS WORK. ESPECIALLY IF YOU ARE TALKING ABOUT ORGANISMS, THAT WAS MY DEAL.

>> Reporter: THE SCHOOL OFFERS FULL SCHOLARSHIPS TO FOREIGN STUDENTS, MOSTLY FROM LOW INCOME FAMILIES WITH GOOD ACADEMIC RECORDS. SIX YEARS OF MEDICAL EDUCATION AND ROOM AND BOARD AND IT IS ALL FREE. HOW CAN ONE OF THE POOREST COUNTRIES IN THE WESTERN HEMISPHERE GIVE AWAY SOMETHING SO PRECIOUS TO SO MANY AND EXPECT NOTHING IN RETURN. THE LATIN AMERICAN MEDICAL SCHOOL IS THE BRAINCHILD OF CUBA'S FIDEL CASTRO. THE SCHOOL'S AIM IS TO CREATE A POOL OF PHYSICIANS FOR PUBLIC SERVICE IN DISADVANTAGED RURAL AND URBAN AREAS AROUND THE WORLD. DR. MARITZA GONZALEZ BRAVO IS ONE OF THE SCHOOL'S DIRECTORS.

>> ( translated ): OUR RATIONALE, THE TRAINING, THE VALUES THAT WE HAVE HERE ARE A WAY OF CONTINUING THE REVOLUTIONARY PROCESS, THE ETERNAL IDEOLOGY OF OUR LEADER FIDEL CASTRO, WHICH IS TO ALWAYS HELP OUT POOR COUNTRIES, NOT WITH WHAT WE HAVE LEFT OVER, BUT WHAT WE HAVE.

>> Reporter: THE SCHOOL IS AN OUTGROWTH OF WHAT HAS BECOME KNOWN AS CUBA'S MEDICAL DIPLOMACY. WHEN THESE STUDENTS GRADUATE...

>> ( translated ): THEY BECOME HEALTH AMBASSADORS. THEY ARE AMBASSADORS CAPABLE OF TAKING HOME THE PRINCIPALS OF CUBAN VALUES AND SOLIDARITY.

>> Reporter: THIS PLACE HAS UNUSUAL PREREQUISITES FOR MED SCHOOL. THE STUDENTS MUST HAVE HIGH SCHOOL DIPLOMAS, BE UNDER 25 AND COME FROM THE POOREST PARTS OF THEIR HOME COUNTRIES, READY TO

>> ( translated ): THIS ASSURES THAT THEY ARE COMMITTED TO RETURN TO THEIR COMMUNITIES, SO THEY CAN MAKE CHANGE IN THEIR OWN VILLAGES AND NEIGHBORHOODS.

>> Reporter: PASHA JACKSON IS FROM OAKLAND CALIFORNIA. A STANDOUT STUDENT AND ATHLETE, JACKSON WENT TO THE UNIVERSITY OF OKLAHOMA ON A FOOTBALL SCHOLARSHIP. EVEN MAKING IT TO THE NFL, WHEN AN INJURY PUT HIS FOOTBALL CAREER IN DOUBT, HE TURNED TO MEDICINE, AND TO CUBA.

>> RECEIVING THIS GIFT FROM A COUNTRY WHO ALREADY DOES NOT HAVE A LOT THERE IS NO WAY THAT I'M GOING TO RETURN TO BACK TO THE UNITED STATES AND JUST TAKE ANY JOB. YOU KNOW, I WANT TO BE ABLE TO GIVE MYSELF TO THE VERY COMMUNITIES WHO NORMALLY WOULD NOT HAVE SUCH ACCESS TO THOSE TYPES OF SERVICES.

>> Reporter: SINCE IT OPENED IN 1999, MEDICAL SCHOOL HAS GRADUATED MORE THAN SEVEN THOUSAND PHYSICIANS FROM 45 COUNTRIES. CUBA DOESN'T ASK THESE STUDENTS TO PRACTICE HERE, BECAUSE THE ISLAND ALREADY HAS MORE DOCTORS PER CAPITA THAN ANY COUNTRY IN THE WORLD. CUBA'S OWN MEDICAL PROFESSIONALS HAVE BECOME A BIG PART OF THE HAVANA GOVERNMENT'S OUTREACH TO THE WORLD. CUBAN DOCTORS ARE RUSHED TO NATURAL DISASTERS ACROSS THE GLOBE, LIKE LAST YEAR'S DEVASTATING EARTHQUAKE IN HAITI WHERE CUBA DISPATCHED MORE THAN 600 MEDICAL WORKERS. OVER THE LAST 20 YEARS, EXPORTING CUBAN DOCTORS HAS BECOME PART OF THE COUNTRY'S FOREIGN POLICY STRATEGY. MANY CUBAN DOCTORS WILL AT SOME POINT IN THEIR CAREER GO ON OVERSEAS MISSIONS. MOST TO DEVELOPING COUNTRIES WITH SEVERE DOCTOR SHORTAGES. DOCTOR JORGE DELGADO OF THE CUBAN HEALTH MINISTRY, SPENT ALMOST A DECADE PRACTICING IN AFRICA, AND NOW DIRECTS OVERSEAS MISSIONS.

>> ( translated ): AS OF NOW, WE HAVE MORE THAN 350,000 HEALTHCARE PERSONNEL-- DOCTORS, TECHNICIANS, NURSES, AND OTHER SPECIALISTS SENT OUT TO SUPPORT 105 COUNTRIES AROUND THE WORLD.

>> Reporter: GAIL REED IS AN AMERICAN WHO LIVES IN CUBA AND EDITS THE MEDICAL JOURNAL, "MEDICC."

>> I THINK IT'S FOREIGN POLICY TO THE EXTENT THAT WHAT CAN A SMALL COUNTRY DO, YOU DON'T HAVE FOREIGN AID AND BIG DOLLARS SIGNS TO GIVE, SO WHAT CAN YOU GIVE?

>> Reporter: THE MEDICAL MISSIONS HAVE ALSO BEEN DESCRIBED AS A WAY FOR CUBA TO GET AROUND A NEGATIVE WORLD VIEW OF IT'S HUMAN RIGHTS RECORD. CUBA'S MINISTRY OF HEALTH DESCRIBES THE INTERNATIONAL MEDICAL AID AS A NATURAL OUTGROWTH OF CUBA'S EDUCATED POPULATION AND REVOLUTIONARY VISION.

>> ( translated ): OUR MAIN SOURCE OF WEALTH IS HUMAN RESOURCES, EVERYONE KNOWS WE ARE A POOR COUNTRY, BUT PROVIDING CUBAN DOCTORS TO OTHER COUNTRIES GREW OUT OF THE IDEAS OF OUR COMMANDER AND CHIEF FIDEL CASTRO, WHO SAID, WE ARE PAYING OUR DEBT OF HUMANITY TO OUR BROTHER COUNTRIES WHO SUPPORT OUR REVOLUTIONARY CAUSES. AND WHO NEED OUR VAST HUMAN RESOURCES.

>> Reporter: ONE YOUNG CUBAN DOCTOR, ORISLARIAM MORALES, SAYS SHE VOLUNTEERED BECAUSE SHE WANTED TO HELP FAMILIES LEARN TO PREVENT ILLNESS, SOMETHING THE CUBAN DOCTORS ARE KNOWN FOR. SHE WAS SENT TO RURAL BOLIVA.

>> ( translated ): WE TRANSMITTED OUR EXPERIENCES, OUR PREVENTIVE HEALTH CARE MODEL; WE TOOK TO PLACES, WHERE CONDITIONS WERE PRETTY BAD. BUT IN TURN, WE LEARNED A LOT FROM THEM.

>> IT'S A WONDERFUL WAY OF KEEPING VERY, VERY GOOD DIPLOMATIC RELATIONS WITH VERY MANY COUNTRIES.

>> Reporter: KATRIN HANSING IS CUBA SCHOLAR AT CITY UNIVERSITY OF NEW YORK AND IS WRITING A BOOK ABOUT CUBA'S MEDICAL DIPLOMACY.

>> IF YOU HAVE EVER BEEN TO ANY DEVELOPING COUNTRIES WHERE THERE, WHERE THERE ARE A LOT OF CUBAN DOCTORS OR OTHER PROFESSIONALS, YOU'LL SEE THAT THEY'RE EXTREMELY POPULAR, THE DOCTORS ARE LOVED AND BY EXTENSION CUBA IS LOVED IN THOSE COUNTRIES.

>> Reporter: CUBA'S DOCTOR PROGRAMS HAVE ALSO BECOME A BOON TO THE COUNTRY'S FALTERING ECONOMY. MONEY IS FLOWING IN FROM COUNTRIES WITH GROWING ECONOMIES BUT LESS EDUCATED WORKFORCE, GIVING CUBA, AND THE DOCTORS, PRECIOUS HARD CURRENCY. VENEZUELA PAYS FOR EXPORTED CUBAN DOCTORS, WITH VITAL SUPPLIES OF OIL.

>> THIS IS ONE WAY CUBA IS ACTUALLY MAKING FAIRLY LARGE AMOUNTS OF HARD CURRENCY, SO

>> Reporter: BUT A SMALL NUMBER OF DOCTORS HAVE USED THE MISSIONS AS A WAY TO ESCAPE THE POVERTY AND POLITICS OF CUBA. RUBEN RODRIGUEZ WAS SENT TO AFRICA, AND GUATEMALA ON MEDICAL MISSIONS, AND DECIDED TO DEFECT TO THE UNITED STATES DURING A STINT IN BOLIVIA. WE MET IN MIAMI.

>> ( translated ): DURING THIS TIME THAT I HAD OUTSIDE OF THE COUNTRY, I WAS ABLE TO REALIZE THAT, FOR EXAMPLE IN AFRICA, DESPITE THE EXTREME POVERTY-THEY HAD FREEDOM. SAME IN GUATEMALA, SAME IN BOLIVIA, THE FREEDOM THEY HAD IN EXPRESSING THEMSELVES, FREEDOM IN A GENERAL SENSE. AND THIS REALLY OPENED MY EYES TO THE IMMENSE SUFFERING CAUSED BY THE LACK OF FREEDOM THERE IN CUBA, THE LACK OF FREEDOM WE LIVED AND HAD. THIS WAS REALLY THE MAIN THING THAT PREVENTED MY RETURN TO CUBA, AND MADE ME GO FROM

>> ( translated ): WE SEND OUT DOCTORS AND PUT OUR TRUST IN THEM. IF ALONG THE WAY, THEY ABANDON OUR SHIP MADE UP OF SOLIDARITY AND HUMANITY, LET THEM FOLLOW THEIR PATH AS THEY SEE FIT. WE DO NOT FEAR THAT.

>> Reporter: MEANWHILE, PASHA JACKSON SAYS A FREE MEDICAL EDUCATION IS GREAT, BUT JUST AS IMPORTANT IS THE CUBAN APPROACH TO MEDICINE-- A HANDS-ON, HIGH- TOUCH ETHIC. HE'LL CARRY THAT WITH HIM, BACK HOME TO OAKLAND, IN ANOTHER FOUR YEARS. HERE'S TOM BEARDEN REPORTS.

>> Reporter: EVERY DAY OUTREACH WORKERS LIKE CHRIS AND BRENDAN POKE AROUND IN PLACES WHERE MOST NEVER GO. LIKE THIS CULVERT BENEATH INTERSTATE 25. THEY ARE LOOKING FOR HOMELESS PEOPLE WHO MIGHT NEED HELP.

>> HOW LONG HAVE YOU BEEN STAYING HERE?

>> LIKE A MONTH.

>> Reporter: ON THIS DAY MAY MET UP WITH A YOUNG MAN NAMED JUST JUSTIN. THE OUTREACH IS ONE SMALL PART OF AN ELABORATE PROGRAM CALLED DENVER'S ROAD HOME. IT WAS LAUNCHED IN 2005 WITH THE LOT OFY GOAL OF ENDING HOMELESSNESS IN 10 YEARS. EXECUTIVE DIRECTOR SAYS IT'S ON TRACK TO MEET THAT GOAL AT THE HALFWAY POINT.

>> WITHIN THE FIRST FIVE YEARS WE'VE ACTUALLY ACCOMPLISHED SO MUCH MORE THAN THIS COMMUNITY EVEN DREAMED POSSIBLE. WE'VE CREATED NEARLY 2,000 UNITS OF PERMANENT HOUSING FOR FORMERLY HOMELESS INDIVIDUALS TO LIVE IN. WE'VE PREVENTED OVER 5,000 PEOPLE FROM BECOMING HOMELESS IN THE FIRST PLACE. AND MENTORED FAMILIES TO THE TUNE OF 780 OUT OF HOMELESSNESS THROUGH OUR FAITH COMMUNITY.

>> Reporter: THE CALENDAR SAYS THE KEY TO SUCCESS WAS BRINGING BUSINESS LEADERS TO THE TABLE, EN KUNLING THEM TO GIVE HOMELESS PEOPLE JOBS AS A FIRST STEP OUT OF POVERTY. ED BLAIR, THE GENERAL MANAGER OF THE DOWNTOWN OXFORD HOTEL ADMITS HE WAS INITIALLY SKEPTICAL.

>> IN ALL HONESTY I OPERATE AN UPSCALE HOTEL IN THE HISTORIC PART OF DENVER, LOWER DOWNTOWN, AND I WAS VERY CONCERNED, I DIDN'T KNOW WHAT TO EXPECT. WOULD THERE BE WRONG DOING THAT WOULD OCCUR IN MY BEST ROOM, WOULD MY SORKS OR GUESTS BE AT -- MY ASSOCIATES OR GUESTS BE AT RISK. AND THAT WAS SOMETHING I HAD TO GET OVER.

>> Reporter: HE'S ONE OF THE PROGRAM'S BIGGEST PROPONENT NOW.

>> I THINK THERE'S A GREAT PASSION TO RETURN TO A STABLE LIFE. AND PART OF THAT RECOVERY AND PRACTICE SAYS IS EMPLOYMENT. SO WE FIND AN EXTREMELY HIGH LEVEL OF MOTIVATION AND TO BE SUCCESSFUL.

>> Reporter: HE'S HIRED SELF PEOPLE WHO WERE HOMELESS AND SAYS THEY BECAME SOME OF HIS BEST EMPLOYEES. ORLANDO BLACK HAD BEEN HOMELESS FOR TWO AND A HALF YEARS WHEN HE CAME TO THE PROGRAM. HE SAYS IF IT WASN'T FOR HIS HOUSEKEEPING JOB AT THE HOTEL HE'S NOT SURE HE WOULD HAVE SURVIVED.

>> I WOULD FEEL LIKE I WOULD BE SIX FEET UNDER OR IN JAIL OR IN SOME KIND OF PSYCHOTIC NUT HOUSE SOMEWHERE.

>> Reporter: SO YOU'RE LUCKY TO BE HERE?

>> WELL, I FEEL LIKE IMMORE THAN LUCKY, I'M BLESSED TO BE HERE.

>> Reporter: ANOTHER KEY IS PERMANENT HOUSING. THE COALITION FOR THE HOMELESS OPERATES MANY OF THE HOUSING UNITS NOW AND IS ABOUT TO OPEN ITS NEWEST PROJECT, 98 LOFT STYLE APARTMENTS, MANY WITH CITIZENING VIEWS OF THE CITY. HALF THE UNIT WILL GO TO HOMELESS, HALF TO LOW INCOME WORKERS. A PIZZA RESTAURANT ON THE GROUND FLOOR WILL ULTIMATELY PROVIDE MANY RESIDENTS WITH JOBS. SO THIS IS THE NEW PLACE?

>> THIS IS THE NEW PLACE. IT'S EVEN EQUIPPED WITH A DISHWASHER.

>> Reporter: NANCY SHEA HAS BEEN HOMELESS FOR THE PAST EIGHT YEARS, BUT IN A FEW WEEKS SHE'LL BE MOVING INTO THIS BUILDING. WHAT DO YOU THINK WHEN YOU WALK INTO A BRAND NEW PLACE LIKE THIS AND THINK YOU'RE GOING TO BE HERE?

>> IT'S UNBELIEVABLE, UNBELIEVABLE. IT'S BREATH TAKING. THIS IS A BEAUTIFUL, BEAUTIFUL PLACE, CLEAN, WARM, SAFE.

>> Reporter: YOU THINK YOU'LL BE HAPPY HERE?

>> OH, I KNOW I'LL BE HAPPY HERE I KNOW I'LL BE HAPPY.

>> Reporter: RESIDENTS HAVE BEEN ON A WAITING LIST FOR TWO YEARS, THEY PAY RENT ON A SLIDING SCALE ADJUSTED FOR INCOME, MOST ARE PROVIDED JOB TRAINING UNLESS PHYSICAL OR MENTAL ISSUES PREVENT THEM WORKING AND ALL ARE GIVEN ACCESS TO MEDICAL CARE. HE'S THE PRESIDENT OF THE COALITION, WHICH HAS BEEN SERVING THE NEEDS OF THE HOMELESS FOR 25 YEARS.

>> OUR SUCCESS RATE IS ABOUT 90 TO 95% OF FOLKS THAT WE ARE ABLE TO MOVE OFF THE STREET INTO HOUSING. STABLE IN HOUSING AFTER TWO YEARS. THEN BEYOND THAT WE WANT TO SEE THEIR HEALTH IMPROVE, THEIR MENTAL HEALTH STATUS IMPROVE, THEIR SUBSTANCE USE ELIMINATED, AND THEIR ENTRY BACK INTO THE JOB FORCE IMPROVED. SO WE SEE VARIOUS LEVELS OF SUCCESS THERE, BUT OVERALL IF WE CAN KEEP THEM IN HOUSING WE'RE DOING WELL. IF WE MEET THESE OTHER BENCHMARKS, THEN THAT'S ICING ON THE CAKE.

>> Reporter: HE APPLAUDS WHAT THE CITY'S ROAD HOME PLAN HAS DONE, BUT IS WORRIED THAT IT MIGHT NOT BE ABLE TO NEAT GROWING NEED. HE SAYS THERE ARE STILL 10,000 PEOPLE WHO ARE HOMELESS IN DENVER.

>> IN THIS ECONOMY WE'RE SEEING A 20% INCREASE OF FAMILIES AND INDIVIDUALS WHO HAVE BECOME HOMELESS. FAMILIES WHO NEVER THOUGHT THAT THEY WOULD NEED OUR SERVICES OR THAT WOULD BECOME HOMELESS. BUT THIS ECONOMY HAS JUST BEEN A KILLER FOR A LOT OF THOSE PEOPLE. UNLESS WE BUILD MORE SUPPORTIVE HOUSING UNITS LIKE THIS, WE'RE GOING TO SEE MORE AND MORE PEOPLE FALLING BEHIND. WE'RE SEEING PEOPLE WHO ARE BEING LOCKED OUT OF THE ECONOMY, THEY'RE TOO OLD TO GET A JOB BACK, THEY'VE GONE THROUGH THEIR SAVINGS, THEY REALLY DON'T HAVE THE RESOURCES TO PROVIDE HOUSING ON THEIR OWN.

>> I DON'T THINK ANYONE EXPECTED THE NUMBER OF UNIT THAT WE WOULD HAVE CREATED IN THIS SHORT OF TIME, THE AMOUNT OF MONEY WE'VE RAISED, THE AMOUNT OF ENERGY WE'VE RAISED. BUT THERE IS A COMMUNITY WHO REALLY NEEDS OUR SUPPORT AND OUR WORK IS NOT FINISHED YET.

>> Reporter: THE DIRECTOR UNDERSTANDS THAT INCREASING THE FUNDING LEFT IS CRITICAL TO MEET THE DEMAND. IT'S ONE OF THE REASONS SHE TOOK POTENTIAL DONORS ON A BUS TOUR TO SOME OF THE FACILITIES THAT PARTNER WITH THE CITY. WOMEN'S SHELTERS, SOUP KITCHENS AND MEDICAL CLINICS ARE NOW COORDINATED UNDER ROAD HOME TO PROVIDE A VARIETY OF SERVICES.

>> I CAN TELL YOU WE SERVE 550 DIFFERENT WOMEN LAST YEAR.

>> Reporter: NEARLY A THIRD OF THE $12 MILLION BUDGET COMES FROM PRIVATE DONATIONS, THE REST COMES FROM FEDERAL, STATE AND LOCAL GOVERNMENTS. ALL THE OF THE MONEY IS ADMINISTERED BY THE MILE HIGH UNITED WAY. SO THE FIRST ONE I HAVE FOR YOU WOULD BE THE SALVATION ARMY FOOD BANK.

>> Reporter: THEY ALSO HOST A CALL CENTER WHICH MATCHES INDIVIDUALS WITH VARIOUS SERVICES THROUGHOUT THE CITY. THE C.E.O. SAYS THE PARTNERSHIPS THAT MAKE THE ROAD HOME PROGRAM POSSIBLE DIDN'T COME EASILY.

>> I THINK WE DIDN'T REALIZE WHEN WE BEGAN THAT WE HAD TO REALLY DO A LOT OF EDUCATION AROUND WHO REALLY IS HOMELESS. BECAUSE WE ALL HAVE AN IMAGE OF WHO WE THINK A HOMELESS PERSON IS. YOU DRIVE DOWN THE STREET, YOU SEE A PERSON STANDING WITH A SIGN, AND THAT'S OUR IMAGE. THE REALITY IS IT'S FAMILIES, IT'S CHILDREN, AND I DON'T THINK WE REALIZED AT THE BEGINNING HOW MUCH AN EDUCATION OF WHAT'S HAPPENING IN THIS COMMUNITY THAT WE NEEDED TO DO.

>> WHAT ARE YOUR QUESTIONS ABOUT IT? WE PROBABLY HAVE ALL LEVELS OF KNOWLEDGE AROUND HOMELESSNESS AND POVERTY.

>> Reporter: THEY HAVE HOSTED LEADERS FROM SEVERAL OTHER CITIES WHO WANT TO DUPLICATE THE PROGRAM. WHICH HAS BEEN CALLED A MODEL BY THE FEDERAL DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT. BUT WITH TIGHTENING GOVERNMENT BUDGETS, PAYING FOR SUCH COMPREHENSIVE PLANS MAY BECOME INCREASINGLY DIFFICULT.

>> Ifill: AGAIN, THE MAJOR DEVELOPMENTS OF THE DAY: AT A YEAR-END NEWS CONFERENCE, PRESIDENT OBAMA SAID THE LAME- DUCK CONGRESS TURNED OUT TO BE A SEASON OF PROGRESS. THE PRESIDENT SPOKE AFTER THE SENATE RATIFIED A NUCLEAR ARMS TREATY WITH RUSSIA. EARLIER, HE ALSO SIGNED REPEAL OF THE BAN ON GAYS IN THE MILITARY. CONGRESS MOVED TO PROVIDE MORE THAN $4 BILLION IN HELP FOR 9/11 RESPONDERS WHO FELL ILL AFTER WORKING AT GROUND ZERO IN NEW YORK. AND ONE OF THE WORLD'S BUSIEST INTERNATIONAL AIRPORTS HEATHROW, OUTSIDE LONDON SLOWLY RECOVERED FROM WEEKEND SNOW THAT ROILED AIRLINE SCHEDULES WORLDWIDE. AND TO HARI SREENIVASAN, IN OUR NEWSROOM, FOR WHAT'S ON THE "NEWSHOUR" ONLINE. HARI?

>> Sreenivasan: THERE'S MORE FROM THE CUBA SERIES ON OUR GLOBAL HEALTH PAGE INCLUDING MORE INTERVIEWS WITH CUBAN MEDICAL STUDENTS. WATCH ALL OF THE PRESIDENT'S YEAR END PRESS CONFERENCE. AND ON ART BEAT, JEFFREY BROWN TALKS TO CRITICS ABOUT THEIR FAVORITE BOOKS AND FILMS OF THE YEAR THAT YOU MAY HAVE MISSED ALL THAT AND MORE IS ON OUR WEB SITE, newshour.pbs.org. JEFF?

>> Brown: AND THAT'S THE "NEWSHOUR" FOR TONIGHT. ON THURSDAY, WE'LL LOOK AT THE NEW "START" ARMS REDUCTION TREATY. I'M JEFFREY BROWN.

>> Ifill: AND I'M GWEN IFILL. WE'LL SEE YOU ON-LINE AND AGAIN HERE TOMORROW EVENING. THANK YOU AND GOOD NIGHT. MAJOR FUNDING FOR THE PBS NEWSHOUR HAS BEEN PROVIDED BY:

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>> OPPORTUNITY CAN START ANYWHERE AND GO EVERYWHERE. TO HELP REVITALIZE A NEIGHBORHOOD IN MASSACHUSETTS, RESTORE A HISTORIC LANDMARK IN HARLEM; FUND A LOCAL BUSINESS IN CHICAGO; EXPAND GREEN ENERGY INITIATIVES IN SEATTLE. BECAUSE WHEN YOU ARE GIVING, LENDING AND INVESTING IN MORE COMMUNITIES ACROSS THE COUNTRY, MORE OPPORTUNITIES HAPPEN. AND THE WILLIAM AND FLORA HEWLETT FOUNDATION, WORKING TO SOLVE SOCIAL AND ENVIRONMENTAL PROBLEMS AT HOME AND AROUND THE WORLD. AND WITH THE ONGOING SUPPORT OF THESE INSTITUTIONS AND FOUNDATIONS. AND... THIS PROGRAM WAS MADE POSSIBLE BY THE CORPORATION FOR PUBLIC BROADCASTING. AND BY CONTRIBUTIONS TO YOUR PBS STATION FROM VIEWERS LIKE YOU. THANK YOU. Captioning sponsored by MacNEIL/LEHRER PRODUCTIONS Captioned by Media Access Group at WGBH access.wgbh.org - BEACHES RESORTS IS A PROUD SPONSOR OF "THE ELECTRIC COMPANY," CONNECTING BRIGHT IDEAS AND COUNTLESS OUTLETS FOR HIGH-ENERGY EXCITEMENT. Announcer: FIND YOUR VOICE AND SHARE IT. AMERICAN GREETINGS-- PROUD SPONSOR OF "THE ELECTRIC COMPANY." FROM THE U.S. DEPARTMENT OF EDUCATION'S READY TO LEARN GRANT, AND... - SO, HERE ARE YOUR 5 WORDS. A CHARACTER IS A PERSON IN A STORY. DETAILS ARE FACTS OR WORDS YOU USE