fixed rate of 3.1%. a stronger housing market and fed rate hike will likely push mortgage rates higher. "early start" continues right now. happening now, a new strategy to fight isis after a series of defeats, the u.s. is shifting its game plan on how to take down the terrorists. we will take you live to baghdad. the former speaker of the house now accused of paying to hide misconduct. new severe storms pounding texas as rescuers sift through the rubble to find flood victims. good morning. welcome to "early start." i'm john berman. it is friday may 29th. christine romans is off today.

happening now, the obama administration says it is fine tuning the strategy in iraq. pentagon officials are looking for a way to bring sunni tribes into the fight against the islamic state militants. one possibility, the u.s. could begin arming sunni fighters directly. that would replace or supplement the current system where it goes through the shi'ite government in baghdad. this as forensic teams are trying to identify 500 bodies exhumed in tikrit. the bodies are believed to belong to military cadets that isis claims to have killed last year at a nearby military base. overnight in baghdad, at least nine people killed and 14 injured in twin car bomb blasts at hotels popular with officials and foreigners. standing by live in baghdad is senior international correspondent arwa damon. good morning, arwa.

>> reporter: good morning. we just sent a team out to both of those locations that were targeted overnight. extensive damage done to the front of the babylon hotel. security on the ground not allowing media close by. same situation at the other location the sheridan hotel although it changed its name. this is a clear message that isis may not have taken over this particular city violence still exists on a fairly regular basis. and a message that the targets that the two strikes were hotels that are very frequently stayed in by foreigners and vips. throwing into the question the iraqi security forces to keep these installations safe. when it comes to the u.s. arming the sunni tribes potentially without going through baghdad, that could cause some tensions.

at the end of the day, these tribes do need weapons. they have been asking for them for over a year. the government has promised to make good on that. bearing in mind the u.s. has gone through this with the sunni tribes before back in the days when it was fighting al qaeda. the isis predecessor. the sunni tribes turned on al qaeda and allied with the u.s. and they were fighting side by side in some instances. until that promise, that idea becomes a reality, it will be very difficult to convince the sunnis and shi'a government have their best interests at heart and are taking that into consideration. the longer this draws on the more alienated the sunnis grow and more difficult to bring them into the fold. >> not much connection with the disputing factions.

arwa thank you. new questions about the federal jury in chicago has indicted dennis hastert. the indictment stays he restructured bank withdrawals. says he paid $3.5 million in hush money to keep secret un unspecified misconduct. there was no answer on thursday when cnn knocked on the hastert door in illinois. former colleagues are reacting. >> i'm shocked and disheartened that dennis hastert found himself in the position to do something this drastic. he must have known it was illegal to do it in the way they structured it. on a personal level, shocked and dismayed. my heart goes out to his family. from the fbi perspective. >> you used to be an fbi agent.

>> i used to be an fbi agent. was he extorted likely the way it was written? individual aid is likely to have cooperated with the fbi at some point. there will be more story to told here. >> the 73-year-old hastert resigned his job as a lobbyist. less than three days remain until the intelligence program shuts down unless the lawmakers find a compromise. the white house says there is no plan b if the nsa is forced to shutdown the data collection and other programs. that puts pressure on the leaders before sunday night's deadline. cnn's michelle kosinski has the latest from the white house. >> reporter: the white house is continuing the push to try to get the senate to act before deadline to keep the parts of the patriot act up and running.

saying failing to do so is playing national security russian roulette. saying the fbi's work will be severely impacted. here is the press secretary. >> what our national security professionals told us is the programs provided valuable information in the past. these are critical tools to keep the american people safe. they use these tools to collect information that has not been otherwise available to them. that was then used to prevent individuals from carrying out acts of violence and to round up people who wished harm on the united states. >> reporter: that's what they have been saying. the thing is u.s. officials cannot point to a single case where the programs saved the day and thwarted terror. you look at the other programs besides the bulk phone data collection that will expire collecting bank and business and hotel records on individuals that is used about 200 times a year. officials say there are other ways to try to get that

information, but those ways are more limited and less secret. roving wire taps on people who switch cell phones. that is used less than 100 teams a year. officials do say the patriot act is the only way to do that. to effectively and quickly track those people. especially when you consider potential isis types. and lastly, wire taps on lone wolves. people not connected to any known terror group. we found out that has never even been used before and it only applies to people outside the u.s. not american lone wolves. the big question is our national security really going to be at risk? depends on whom you ask. the white house's take is why allow any risk? especially when the privacy concerns can be addressed with the bipartisan bill that the house already passed and the white house wants the senate to do the same. >> michelle kosinski at the white house. a lot of rhetoric on both sides

of the debate. the death toll is rising on the monster storms in flooding in texas and oklahoma. as of this morning, 23 people have been killed by tornadoes and flooding. 23 in texas and 6 in oklahoma. crews are scouring the wreckage of cars and homes in hays county. and searching for nine people still to be missing. with rain pouring down this morning and more in the forecast oday the danger has not passed. >> is the worst over? >> i don't think so. i would like to say it is but i'm not sure the worst is over because of the way the weather is running and we are so saturated in almost all parts of texas. >> this weather pattern hitting oklahoma hard. look at the town of lawton. more than 4 inches of rain fell there quickly. you see the water reaching up to the tops of car tires there. more severe weather in the forecast all the way through the weekend. meteorologist derek van dam has more from the weather center.

>> we have received so much rain across the plains that it issis even visible from space. this is the arkansas river. it flows toward the mississippi river. notice how its flooded its banks and small streams leading toward the arkansas river continue to expand past capacity and as this water continues to flow downstream to the mississippi, there is the potential of going forward. we have 157 location as long rivers and streams reporting flood stage conditions. we have flood watches and flood warnings ongoing from oklahoma to eastern portions of texas with more in rain in stores. there is improvement for next week. showers and thunderstorms forecast into the weekend. that includes saturday and sunday. oklahoma city to austin and even the possibility of severe

weather through the northern great lakes. back to you. derek, thank you. time now for an early start on money. stock futures are down. markets in asia and europe are mixed. wall street is waiting the gdp for the second quarter of the year. that number is expected to be negative. the rebound anticipated in second quarter. automakers are adding more cars to expand the takata recall last week. fiat and chrysler as well as ford and bmw added to the list. with automakers identifying which cars need to be fixed, the process will take a long time. years to complete. there is controversy surrounding a new contest to draw pictures of the prophet muhammad or are organizers trying to instigate violence?

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police in phoenix are bracing for potential violence stemming from an anti-islam rally today outside of a mosque to feature the contest to draw pictures of the prophet muhammad. organizers are telling people to bring guns. two in texas were shot dead after they opened fire with assault rifles. sara sidner has more. >> reporter: it is the freedom of speech rally two. this is the second time they held a rally like. this before the rally outside the islamic center here in phoenix, they are planning on doing what is a prophet muhammad cartoon drawing contest similar to the one we saw three weeks ago in garland, texas. you remember what happened. there this is in response to what happened in garland, texas, when two men from here in phoenix who did attend one of the mosques here went and tried

to gun police down. they ended up dying themselves at the hands of the officer who stopped them from being able to get into the rally. police believing they were trying to get into the prophet muhammad drawing contest in garland. this one will be peaceful. they are holding it to send a message. they put something on their facebook page. quote, people are encouraged to come to the rally to display their second amendment rights as if the first is under attack. the second is the right to bear arms and the first is freedom of speech. there is concern at the mosque when they are holding it on friday when evening prayers is happening. some people will not show up. we were able to interview someone who spoke on behalf of the community here about the concerns that those who come to

this mosque and frequent this mosque have. >> recently the mosques in phoenix received threatening letters. specific threats. this is all happened within the last week. this adds to the intersection of islamaphobia and gun culture. when we see these, this is more of a concern. now people are saying maybe we shouldn't go over there. we are advising people from our organization it is better to stay clear from the event and don't engage. >> reporter: the folks on the islamic american relations said there was a threat this week. a written threat to the imam and the congregation. there is a bit of concern for those who come to the mosques, especially on friday a day of prayer. we can tell you there will be security. we know from the phoenix police itself and they have surveyed the area and they will be here during the rally. >> sara sidner in phoenix.

former new york governor george pataki has joined the field for the 2016 nomination. he announced his white house bid in exeter, new hampshire. he highlighted his time as governor of new york. he said he was a champion of small government. he said washington is too big, too powerful and too expensive. jeb bush is running for president, but he hasn't legally announced. the former florida governor was stumping in michigan talking education and security and taking shots at the presumptive democratic -- the actual democratic front runner hillary clinton. >> i know for a fact that the next president if we want to restore greatness and security in america, i know for a fact it cannot be hillary clinton. here's the deal. she's been running shotgun for four years. she will try to do the heisman on the president's policies.

i can see it. i wasn't there when all this happened. it started in the first term when we pulled back and disengaged in the world. >> shotgun is a passing offense that the heisman goes to a running back. the clinton campaign will bring out the big guns on june 13th. that is when bill and chelsea will make their first appearance at the campaign trail. clinton aides expect to release details on the rally next week. for the second straight year the national spelling bee has co- champions. 13-year-old vanya shivashankar spelled the word scherenschnitte. the art of cutting paper in decorative designs. her co- champ, 14-year-old gokul venkatachalam had nunatak. that is a word known as a hill or mountain surrounded by a

glacier. ra vanya's sister won in 2009. we'll be right back. no sudden movements. google search: bodega beach house. well, a mortgage shouldn't be a problem your credit is in pretty good shape. >>pretty good? i know i have a 798 fico score thanks to the tools and help on experian.com. kaboom... well, i just have a few other questions. >>chuck, the only other question you need to ask is, "what else can you do for me?" i'll just take a water... get your credit swagger on. become a member of experian credit tracker and find out

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him testified that holmes was sane and he knew what he was doing and the consequences for it. ana cabrera has the latest. >> reporter: now we are getting to the crux of the trial. was james holmes insane when he opened fire in the movie theater on july 20th 2012. the judge in the case ordered two men al evaluations of holmes before the trial. the second evaluation performed by dr. reid at the colorado health institute. he told jurors he concluded holmes was sane at the time of the shooting. he spent nine session was holmes. 22 hours. it was taped. the prosecution is showing that video to the jurors. we hear dr. reid ask about his childhood and upbringing and relationship with his parents and how he was as a student. i want to play you a clip where

you hear dr. reid ask holmes about his time in jail and visit by his parents. >> emotional for them? >> yeah. >> how did they show the emotion? sometimes moms break down a bit. >> well she broke down when she was leaving. she held up pretty well while the visit was going on. >> how about you? did you get a tear in your eye? >> nope. >> you ever get tears in your eye? >> yeah. sometimes. >> what brings tears to your >> just regrets. >> regrets. can you tell me a little more? >> usually it is before i go to sleep.

>> regrets about? >> about the shooting. >> reporter: that video was from july 30th 2014. more than two years after the shooting. also important to know that dr. reid told jurors holmes was on medication on anti-depressants and anti-psychotics medications. we expect to hear more this morning. ana, thanks. the united states fine tuning strategy to fight isis as the iraqi military tries to take back territory seized by the terrorists. we are live in baghdad next. how do you get to the top of your game? give it everything you've got and leave those sticky sunscreens behind. new neutrogena cooldry sport. powerful protection designed to feel good. micromesh technology lets sweat pass through and evaporate so skin stays comfortable, while clinically proven protection keeps going strong. don't get stuck with a sticky sunscreen. stay protected and comfortable

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the united states is it shifting its strategy in the fight against isis? the new fine tuned plan as iraqis try to take back territory seized. once the most powerful man in the united states. former house speaker dennis hastert indicted. accused of lying to the fbi about hush money withdrawals. the strange details ahead. new storms targeting texas. the state devastated by historic flooding and the rain is not over yet. welcome back to "early start." i'm john berman. christine romans is off today. 30 minutes past the hour. happening now, the obama administration says it is fine tuning the isis stranktegy in iraq. the way to bring sunni tribes

into the fight against islamic state militants. one consideration, arming sunni fighters directly to replace or supplement the current system where weapons go through the shi'ite dominated government in baghdad. this news coming as iraqi forensic teams try to identify nearly 500 bodies exhumed in tikrit. officials believe the bodies belong to iraqi military cadets that isis claims killed last year. also overnight in baghdad, at least nine people killed and 14 injured in twin car bomb blasts at two luxury hotels popular with officials and foreigners. a lot of developments overnight. standing by in baghdad is senior correspondent arwa damon. >> reporter: we sent crews out to the two sites of the attacks overnight. security forces not allowing

anyone nearby but the damage done by the two massive explosions. quite extensive. an example of just how difficult it is and how incapable the iraq iraqi security forces are at protecting the installations. both hotels have a checkpoint before you enter where vehicles are supposed to be searched. we saw two vehicles manage to breach the defenses put into place. we are talking about the effort by the u.s. to possibly arm the sunni tribes. the tribes some of them are already involved in the fight, but the problem they have is of course weapons. they have light weapons. they can hardly make a significant stance against isis. the sunni tribes have been pleading with anyone to provide them with weapons for well over a year because isis entered these areas before it took down and stormed into mosul.

the iraqi government has been promising the sunnis it will arm them but has yet to make good on the pledge. if the u.s. directly arms these tribes it could cause harm. back in the days when they were fighting al qaeda and the sunnis in anbar province decided to turn against al qaeda not wanting to live under al qaeda rule and arming themselves with a degree of the u.s. but at this stage, the sunnis feel as the americans and the u.s.-led coalition and the government have abandoned them to a certain degree by allowing large swaths of anbar and ramadi to fall. time is of the essence in all of this to say the least, john. if those tribes are not armed, they will grow more disenchanted with the united states and shi'a government and they feel as if there was a deliberate attempt to have anbar fall and punish

them for having isis enter their territories. we were speaking with some of those who were able to flee the isis onslaught in ramadi. they are living in makeshift camps in baghdad. being cared for largely by the community. a lot of these communities, john have been through this before. they know what it is like to be displaced. they empathize with those who had to flee from anbar and flee isis and ramadi. a great number of refugees telling us the security and safety of the relatives that were left behind. it is unclear how many civilians remain in ramadi but there are neighborhoods that isis took over well over a year ago when it first entered ramadi and civilians have not been allowed to leave those areas. if they try, they threatened with death. the concern, according to one individual who we spoke to his relatives are stuck in one of

the neighborhoods. isis deliberately using them as human shields. >> tough situation. very little trust there which would make things better. arwa damon, thanks. new questions about why a federal grand jury in chicago indicted dennis hastert on charges of financial misconduct and lying to the fbi. hastert once one of the most powerful men in america. he restructured bank withdraws. it says he paid $3.5 million in hush money to keep secret unspecified misconduct that dates as far as his high school wrestling coach days. there was no response when cnn knocked on his door in illinois. former colleagues speak out. >> i'm shocked that dennis hastert found himself in a position to do something this

drastic. he must have known it was illegal to do it in the way they structured it because that is the way they structured it. on a personal level, shocked and dismayed. my heart goes out to his family. from the fbi agent perspective. >> you used to be an fbi agent. >> i did. lots of questions. was he extorted likely the way they written the indictment where individual a is likely to cooperate with the fbi at some point in the investigation. i think there is more story to be told here. >> one of the most popular speakers and members in washington. considered very low key. took on a job as a lobbyist after he left the house. he has now resigned that position. interesting to see what happens over the next few days. this morning, less than three days remain before major u.s. intelligence programs shutdown unless lawmakers find a compromise. the white house says there is no plan b if the nsa is forced to

shutdown the bulk data collection and other programs. this puts stress on the congressional leaders with the deadline sunday night. you know congress doesn't like working on the weekend. cnn's michelle kosinski with the latest. >> reporter: the white house is continuing the push to try to get the senate to act before deadline to keep the parts of the patriot act up and running. saying that failing to do so is like playing national security russian roulette. unnecessary risk. saying the fbi work will be impacted. here is the press secretary. >> what the professionals have told us these are programs that provided valuable information in the past. these are critical tools used to keep the american people safe. they use these tools to collect information that has not been otherwise available to them and used to prevent individuals from carrying out acts of violence and to round up people who wished harm on the united states. >> reporter: that's what they have been saying.

the thing is u.s. officials cannot point to a single case where the programs saved the day and thwarted terror. when you look at the other programs besides the bulk phone data collection that will expire things like collecting bank and business and hotel records on individuals. it is used about 200 times a year. officials say there are other ways to try to get that information, but those ways are more limited and less secret. roving wire taps are people who switch cell phones. that is used less than 100 times a year. officials say the patriot act is the only way to do that. effectively and quickly track those people. especially when you consider potential isis types. lastly, wire taps on lone wolves. people not connected to any terror group. we found out that has never been used before and it only applies to people outside the u.s. not

american lone wolves. this big question of is our national security really going to be at risk? depends on whom you ask. the white house's take is why allow any risk? especially when privacy concerns can be addressed with the bipartisan bill that the house already passed and the white house wants the senate to do the same. >> michelle kosinski for us at the white house. time for an early start on your money. stock futures are slipping ahead of the open. the gdp will be out later this morning. that number expected to show a decline in economic growth in the first quarter. google wants your money. the company launching android pay. the answer to apple pay. tech insiders say it is a big improvement from google wallet. google has been working on android pay. it will work at more than 700,000 stores across the united states. 38 minutes after the hour.

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significant and life threatening flash flooding near duck creek in garland. over 5 inches of rain has fallen in the region. they will get another 1 to 3 inches before sunrise. dangerous flooding northeast of dallas. we will keep you updated on that information. that news coming as of this morning where 23 people have been killed by tornadoes and flooding in the region. 17 in texas and 6 in oklahoma. this morning, crews are scouring the wreckage of homes and cars in hays county and houston and elsewhere. searching for nine people still known to be missing. the rain is pouring down this morning. more coming over the course of the day. officials say this danger has not passed. >> is the worst over? >> i don't think so. i would like to say it is, but i'm not sure the worst is over because of the way the weather is running and we are so saturated in almost all parts of

texas. >> the weather pattern hitting oklahoma hard. this is the town of lawton. 4 inches of rain fell fast and reached tops of car tires. more severe weather in the forecast all the way through the weekend. we are talking inches of rainfall. let's get the latest from meteorologist derek van dam. >> new to cnn overnight, dallas/ft. worth breaks the wettest month of may on record with just under 14 inches of rain. that's fallen so far. we still have some time to go. here is the forecast rainfall. over the next 24 hours, possibility of .25 to .50 of rainfall in dallas. some could experience more in central and eastern texas and parts of oklahoma. that is why we still have our flood watches and flood warnings ongoing through the rest of today and into the early parts of the weekend. we have the possibility of severe weather over the texas panhandle and we can't rule out the possibility of damaging

winds and hail as far as chicago and grand rapids michigan. let's talk about the change of seasons heading into next week. we will dry out first and foremost across the area experiencing the excessive rain. look at the temperature drop for the nation's capital. 20 degrees from sunday to monday. the breaking news we learned. the national weather service says there is a flash flood emergency northeast of dallas. that is in the area around garland. significant and life threatening flash floods right now in that area. they got 5 inches of rain overnight. expecting 1 to 3 in the coming hour. be careful there. let's look at what is coming up on "new day." alisyn. >> we will have the latest on the shocking news of dennis hastert making illegal cash

withdrawals as hush money and lying to the fbi about it. we will look at what he is accused of and why this matters. the gop field getting more crowded. we will speak with one hopeful, former pennsylvania senator rick santorum. he will join us live on what he thinks will be different this time around. plus the pentagon considering arming sunni tribal fighters in iraq. is that the right strategy or risky? our military experts will weigh in. see you at the top of the hour. >> alisyn thank you. fifa the world governing body that oversees soccer or football faces its biggest corruption scandal ever. yet that man, expected to cruise to re-election today. how can that be? coy wire has the answers in the bleacher report next. st ca move as quietly as le. no sudden movements.

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fifa says pay no attention to the man behind the curtain. they are forging ahead with the presidential election in zurich despite the scandal. coy wire has the bleacher report. >> good morning, john. 200 delegates casting votes for president of soccer's governing body. the current president sepp blatter is expected to easily win a fifth term despite the

drama. he spokes hours ago vowing to protect fifa's reputation and distancing himself from the scandal. listen listen. >> i know many people hold me responsible for the actions and reputation of the global football community. we or i cannot monitor everyone all of the time. >> now the u.s. announced yesterday they will vote for blatter's opponent jordan's prince ali. to the hardwood chicago bulls fired coach tom thibbedeau. bulls fans and chicago sports enthusiast president obama was asked about the dismissal.

he said love thibs. i expect he will be snatched up soon by another team. it looks like he has a good reference on his resume. and adrian peterson went on a rant yesterday complaining about the leverage teams have on players. he says i love people who think they know it all. research how many in the nfl who hasn't honored a player's contract. i know hundreds of players wished their team honored the contract but got through to the side like trash. he was not talking about his own situation, but his on the has made it well known he wants out of minnesota and the current contract has no guaranteed money

left on it. peterson is said to make $12 million this season if he suits up for the vikings. this is going to be a big conversation as we head into the training camp. will he show up? when will he show up? that sort of things. >> the absence of guaranteed money in football is stunning. coy wire thanks so much. it is time to stop procrastinating and go refinance your mortgage. if you wait it will cost you. an early start on your money next.

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one of the most powerful men in all of the united states the former speaker of the house has been indicted, accused of paying millions of dollars to hide something. what we don't know. "new day" has that. >> as well as trying to hide large financial transactions. >> hush money is being paid to somebody. [ gunfire ] >> the obama administration says it is fine tuning its isis strategy in iraq sglt sunnis have been asking for weapons for well over a year now. >> they are calling it the freedom of speech rally round two. >> aren't you playing into the narrative of isis of al qaeda? >> true islamist terrorism. >> why are you resisting? >> she knows she's pregnant and she's escalating the situation. >> the police in this case

escalated the situation. >> i'm not that way. you made me feel a way that i'm not. this is "new day" with chris cuomo, alisyn camerota and michaela pereira. good morning to you. welcome to your "new day." it is friday may 29th. 6:00 in the east. and we have not one but two major scandals on two continents that you'll be hearing about today. in zurich switzerland, soccer's governing body is going with an election for its next president despite a growing corruption crisis. we're going to get to that in a second. but first, a scandal rocking the political world here in the u.s. involving a man who was once second in line to the presidency. former house speaker dennis hastert accused of agreeing to pay $3.5 million in hush money to a long-time acquaintance and lying to the fbi about it. cnn has both stories covered for you. we begin with senior washington correspondent joe johns live in washington. joe, tell us what we know about this. >> good morning, alisyn. when fbi agents started

investigating mysterious transactions made by former speaker dennis hastert they wanted to know if he was paying someone off, if he perhaps been the victim of a crime or even if there was some innocent excuse for big cash withdrawals from his bank account. the federal indictment however tells only part of the story. >> the president of the united states. >> the former speaker of the house once second in line to the presidency now facing federal charges. accused of making false statements to the fbi and trying to hide large financial transactions that the government alleges was hush money. according to the indictment dennis hastert agreed to pay $3.5 million to someone only identified as individual a after meetings between the two five years ago. payments meant to compensate for and conceal hastert's "prior misconduct." the indictment does not describe what that misconduct