though, who want his job. plus, the tea party movement dealing with new divisions while stirring up red hot anger among liberals in congress. why some democrats see the tea party as their worst enemies. and a state of alert as the nation prepares to mark the tenth anniversary of 9/11. we're digging for information on the fbi's latest concerns and whether americans should be worried. i'm wolf blitzer. you're in "the situation room." we now know that president obama wants to deliver his big speech on jobs next wednesday night before a joint session of the house and senate. with millions of americans out of work, this address will be a make-or-break moment for the president and for his campaign to keep his job for another four years. let's bring in our chief white house correspondent, jessica yellin. jessica, this speech, though, may not happen wednesday night as the white house wants. what's going on? >> reporter: that's right, wolf. even before the speech, there's already a standoff between house republicans and the white house. first, a little background. whenever a president wants to speak to a joint session, he needs both the house and the senate to approve it. a senior senate aide told me they're ready to give approval for the speech. but i got word immediately after the white house's announcement that republicans weren't yet on board. and now, speaker boehner has release add letter saying, quote, it is my recommendation that your address, to the president, be held on the following evening when we can ensure that there will be no parliamentary or logistical impediments that might detract from your remarks. now, technically, republicans are saying that they don't have enough time when the members are back from break to approve the president's request to speak. but the white house says there are actually ways to work around that. so what's really going on here? in part, there's some irritation among republican that is they were not given advance notice by the white house about the president's request to speak. and in truth, they probably wouldn't mind pushing off the speech to another night when it won't compete at all with the republican candidates' debate. and keep in mind, it could get lost the following night against an even bigger tv draw when it's the opening night of the nfl. >> green bay packers and new orleans saints, doesn't get much bigger than that. why does the president even need a joint session of congress to present his plan? he could just go to the oval office and deliver a speech to the american people from the white house. >> reporter: sure. the president has made clear and even in his interview with you, wolf, that he is going to square off against congress now, demanding actions from congress on jobs. and there's clearly no better setting to do that than speaking directly to congress. so a primetime speech also guarantees him a big national audience. he gets the picture of members listening to him present them with specific legislative proposals. and frankly it's his one shot as trying to drive this process. after he delivers the speech, it's all in the hands of congress. they can take his plan whole. they can take individual piece that is he suggests or they cannot pass any element of it at all. >> is there any white house reaction to speaker boehner's letter yet? >> reporter: so far, no official reaction. a lot of my democratic sources asking why they can't just do this given that the house hasn't technically left. that house is technically in session and they point out that there are ways to get this passed and approved. but no official white house reaction. a lot of frustration. >> as far as we know, did the president give speaker boehner the courtesy of consulting with him before asking formally, publicly for an address before the joint session wednesday night? >> reporter: my sources tell me that there was not an official heads-up in advance. the answer is no. >> no phone call from the president to speaker boehner? >> reporter: that's right. >> that could be irritating to the speaker that the president could have at least given him a phone call. >> reporter: right, that's part of the irritation here. >> much more on this story coming up on the back and forth between the president and the republicans in congress, especially in the house. let's move on to a shocking new tally of your federal tax dollars wasted completely by the pentagon. t tens of billions of dollars squandered on defense contracts in iraq and afghanistan. chris lawrence is looking into this for us. what are you finding out, chris? >> reporter: here's one example of what the report found, a modest agriculture program in afghanistan that was supposed to give vouchers to farmers for things like wheat and fertilizer. what began as a modest $16 million project ballooned into a $360 million. at one point, the u.s. government was spending $1 million a day to pay these villagers for what they used to do on their own. the u.s. government is wasting billions of dollars on contractors in iraq and afghanistan. at least $30 billion was found in waste and fraud and possibly as much as $60 billion. >> we're wasting up to $12 million a day. maybe that will make a little bit in the attention people pay to this. >> reporter: $30 billion is the annual budget of the national institutes of health. $60 billion would pay for universal preschool for every 3 and 4-year-old kid in america with pretty small class sizes. the commission condemns the pentagon and state department for funding project that is iraqis and afghans have no way to pay for themselves. >> what is the point of spending hundreds of millions of dollars on projects that will then fall into disuse and then we'll have a choice, either to let it fall into disuse and write it off as a waste or to keep spending our taxpayer money for god knows how long in order to keep the projects going. >> reporter: the commission recommends phasing out some security contractors, establishing a permanent inspector general and getting better upfront estimates. >> at the front end, determining what your requirements are sounds easy for me to say. but it's really hard to do when you're in a wartime operating environment. what do you need? how much do you need? when do you need it? where do you need it? the military has to make the best guess they can. >> reporter: david has three decades in defense contracting. he says, say you plan to feed 5,000 troops in a war zone. but for several weeks, only 1,000 are actually on that base and eating. did the government waste the other 4,000? david argues, no, because they had to prepare to feed all of them. >> you're still going to have some gap between what you thought you were going to need and what you end up having. is that waste? it's easy to call that waste looking backwards. >> reporter: now, to be fair, some experts say the numbers that the commission cited are a little inflated. we were on the pentagon all day to try to get some response to this report. they put out a written statement just about a half hour ago basically saying that they support what the commission found and that they've already taken some steps, such as cracking down on some of the people involved in fraud, making the punishments more strict. also trying to bulk up their acquisition force and get them better trained so they can make better estimates up front on what they will need from some of these contracts, wolf? >> it isn't really, chris, planning for 5,000 troops, only 1,000 troops showing up. it's basically, there are billions of dollars simply wasted on projects that no one wanted, no one needed, that the afghans and the iraqis didn't even like. just going forward and building stuff that simply is useless for all practical purposes, all of that is documented as well as simply money going illegally to various middlemen or whatever -- it's that kind of abuse and fraud that is so outrageous and adds up to nearly $60 billion. that's what we're talking about, right? >> reporter: yeah, exactly. look, the american people basically signed off on this. said, we don't want our military doing transportation and outside security and preparing food. we outsource that to these contractors. the thing was, everybody was thinking you can turn the contractors on when you need them, you can turn them off when you don't. the problem is, nobody expected these wars to go on for maybe ten years or more now. and that presents a problem and it opens up a wide range of areas where there's just been a tremendous waste of money. >> total waste of money and a lot of people unfortunately got very rich as a result of this fraud and waste. chris, thanks very much. in new jersey right now, residents say the flooded passaic savor looks more like niagara falls. rescuers are trying to get to some people trapped in the area where the river crested yesterday. in vermont, we're told vehicles now are able to reach most vermont towns where roads have been swamped by floodwaters. but flood warnings remain in effect for many northeastern states hit by hurricane irene. more than 1.5 million households along the storm-battered east coast have not yet received power. it hasn't been turned on yet and the death toll from irene has climbed to 43. the white house announced just a little while ago that president obama will travel to paterson, new jersey, on sunday to see the flooding and the hurricane damage up close. our national correspondent susan candiotti is in little falls, new jersey, not far away from paterson. what can the president expect to see when he gets to new jersey? >> reporter: wolf, more likely than not, he's going to see flooding but hopefully by then, he will see a bit less of it. i'm coming to you from literally the passaic river. i'm standing next to a vacuum cleaner that's part of a car wash. if you pulled your car up here, you could get your car wash just by setting in the passaic river. this is one of many areas of the city that remains cut off from the rest of it because a lot of areas remain flooded. the flood stage earlier today here was at twice what it should be, seven feet is the flood stage. it was 14 feet earlier today. we had a chance to visit some areas that remain under water. and i talked with a man who is one of those who has refused to leave. his name is ken wilkerson. this is one of many streets in little falls that has been flooded. it's the third time in the last 16 months that they've had flooding from the passaic river. got the waders on. i would say this is about 3 1/2 feet or so. people have their pumps going. some people have kayaks, some have rowboats. many have stayed put. on the other hand, many have also left. but this gentleman up on his porch, obviously is one of those who has decided to stay. ken, why do you still live here and why are you staying? >> i was born on this street. >> reporter: and this is home? >> this is home. we want to get out of here. but nobody's going to buy these houses. >> reporter: is there anything that you lost this time that you weren't able to salvage? >> my heart. this one really got to me. >> reporter: and in fact, there's a sign of the times, a lot of the streets here still cut off from the rest of town. here's something else that you can point to. that's that little bridge. it's got a seven-foot height limit there. when we first arrived, it was up to about five feet. you can see the water is receding. so it is slowly going down. but as for poor ken, he no longer has flood insurance. used to. but got tired of paying for all that insurance and so he told me, you know what, i just don't keep as many valuables as i used to. he sure can't sell the house, he says. wolf, back to you. >> and where you're standing in new jersey, as you point out, there are a lot of other areas similar to the disaster that you're experiencing. >> reporter: that's right. a number of different areas where they continue -- the national guard is helping the local police out here, taking out rescue boats. trying to get people to leave. but a lot of those who refuse to get out are creating some problems because when they do call for emergency services, that means they have to get the rescue boats out and go back in there because authorities have been unable to convince them to leave. some of them say, i have enough food and water. we're staying put. we want to protect our property. no telling how long it will take for all the waters to recede. but there's a lot of clean-up that's already begun. >> it's not just new jersey. it's vermont, connecticut and some other states as well. we'll check in with them later in "the situation room." some democrats are reviving allegations that the tea party movement is racist. we're taking a closer look at what they're saying and how the tea party is responding while it also deals with problems from within. and new defiance by moammar gadhafi's son who vows he will never surrender. we'll have the latest on the hunt for members of libya's ousted ruling family. every time a local business opens its doors or creates another laptop bag or hires another employee, it's not just good for business -- it's good for the entire community. at bank of america, we know the impact that local businesses have on communities, so we're helping them with advice from local business experts and extending $18 billion in credit last year. that's how we're helping set opportunity in motion. [ grunts ] we are! got it. [ male announcer ] don't be the last to know. get it faster with 4g. it's the network of possibilities. at&t. the authentic, the rare, the hard to define. to those always searching for what's pure and what's real from we who believe we know just how you feel. haagen-dazs. until i tried this. nothing helped me beat arthritis pain. from we who believe we know just how you feel. it's salonpas. pain relief that works at the site of pain... up to 12 hours. salonpas. jack cafferty is here with "the cafferty file." >> the conservative christian texas governor rick perry has come out of nowhere and already lapped the field. the republican race for the nomination. in the two short weeks since he entered the race, perry has shot to the top of the polls and now leads his nearest competitor by double digits. the latest cnn ocr polls show 27% of republicans supporting perry, followed by mitt romney at 14%, sarah palin who's not a candidate at 10%. michele bachmann and rudy guiliani, also not a candidate, at 9%. newt gingrich and ron paul come in at 6%. perry's supporters tend to be old, white and rich. and his strongest backing comes from tea party supporters. he holds a 23-point lead over michele bachmann among tea partiers in one poll. perry has managed to jump to the top of the pack without laying out a single plan or idea for solving this country's many problems. instead, perry's spent the last two weeks making several dumb comments while in the proud tradition of george w. bush, pretending he's a cowboy. romney's supporters are urging him to kick up his campaign a notch before it's too late, which is likely now why romney has changed his schedule to attend two separate tea party events in south carolina and new hampshire. and perry panic has fired up the left. liberals are terrified at the thought of president perry when it comes to his stance on issues like women's rights, gun control, the death penalty and the separation of church and state. why is rick perry suddenly the darling of the republican field? go the cnn.com/caffertyfile and post your comment. >> thanks, jack. jack cafferty will be back. big new bumps in the road for the tea party movement as it revs up for the republican presidential primaries and caucuses. in the midst of new fighting and confusion within the movement, some democrats are leveling fresh allegations that the tea party is racist. let's bring in cnn's jim acosta. jim? >> reporter: wolf, it is one of the key questions in the race for 2012. will the tea party make or break the republicans in their quest to take back the white house? ♪ ♪ we're have a tea party across this land ♪ >> reporter: if president obama is searching for a way to energize parts of the democratic base, look no further than the tea party, the conservative anti-big government movement which just scored a big victory in the debt deal on capitol hill has liberals in congress hopping mad. >> the tea party can go straight to hell. >> reporter: at a series of town halls and job fairs in democratic districts, members of the congressional black caucus have accused tea party-backed republicans of kicking the poor and even outright racism in their zeal for cuts in government spending. >> some of them in wrong right now of this tea party movement would love to see you and me hanging on a tree. >> reporter: congressman andre carson defended his remarks to cnn. >> i stand on the truth of what i spoke. my intentions weren't to hurt anyone. or any group. >> reporter: as the tea party express was launching its latest bus tour across the country, the group's chairwoman seemed to wear some of the criticism as a badge of honor. >> it's a testament to the power that this movement is having. we have them running scared right now. we are a threat to their leftist liberal agenda and they don't know what to do. >> reporter: another tea party leader, republican presidential candidate, herman cain, arguing the movement is inclusive. >> i would know racism if i saw it. i do not see it, nor have i experienced it in the tea party movement. ♪ >> reporter: but there are other tea party questions brewing, such as some of the small crowds at its events and there's infighting when the tea party express recently allowed mitt romney to speak at a gathering this weekend, another tea party group bailed from the bus tours. some conservatives call romney the father of obamney care. you think he needs the tea party movement now? >> i do. i think he wants the tea party vote. >> reporter: then there's sarah palin, first she's in. then she's out. then she's in at a tea party event scheduled for this weekend in iowa. coincidentally, christine o'donnell was disinvited twice. one of the organizers blamed it on logistical concerns. >> a little confusing, i must say. thanks very much, jim. by the way, i'll be the moderator when cnn hosts a presidential debate 12 days from now in tampa, florida, along with the tea party express and several tea party groups. that's monday night, september 12th, 8:00 p.m. eastern. the cnn tea party republican presidential debate. moammar gadhafi's son is in hiding but not silent. both speaking out today. we'll tell you what they're saying about rumors of a surrender and the condition of their fugitive father. and president obama is getting some pushback after telling congress he wants to deliver a major jobs speech. the story and our strategy session and a lot more coming up in "the situation room." hey ! chocolate, vanilla or strawberry ? chocolate ! chocolate it is ! yeah, but i'm new, too. umm... he's new... er... than you. even kids know it's wrong to treat new friends better than old friends. at ally bank, we treat all our customers fairly, with no teaser rates and no minimum deposit to open. it's just the right thing to do. two of the most important are energy security and economic growth. north america actually has one of the largest oil reserves in the world. a large part of that is oil sands. this resource has the ability to create hundreds of thousands of jobs. at our kearl project in canada, we'll be able to produce these oil sands with the same emissions as many other oils and that's a huge breakthrough. that's good for our country's energy security and our economy. my son and i never missed opening day. but with copd making it hard to breathe, i thought those days might be over. so my doctor prescribed symbicort. it helps sign