Bigger fights loom after tax deadline deal

(Note language, paragraph 12)

WASHINGTON (Reuters) - President Barack Obama and congressional Republicans face even bigger budget battles in the next two months after a hard-fought "fiscal cliff" deal narrowly averted devastating tax hikes and spending cuts.

The agreement, approved late on Tuesday by the Republican-led House of Representatives, was a victory for Obama, who had won re-election on a promise to address budget woes in part by raising taxes on the wealthiest Americans.

But it set up potentially bruising showdowns over the next two months on spending cuts and an increase in the nation's limit on borrowing. Republicans, angry that the "fiscal cliff" deal did little to curb the federal deficit, promised to use the debt-ceiling debate to win deep spending cuts next time.

Republicans believe they will have greater leverage over Democrat Obama when they must consider raising the borrowing limit, likely in February.

The stakes are perhaps even higher in the debt issue than in the fiscal cliff because failure to close a deal could mean a default on U.S. debt or another downgrade in the U.S. credit rating. A similar showdown in 2011 ultimately led to a credit downgrade.

In fact, bond rating agency Moody's Investors Service warned Washington on Wednesday it must do more to cut the deficit than it did in the "fiscal cliff" measure if the country is to turn around its negative sovereign debt rating.

Republican Senator Pat Toomey of Pennsylvania said his party had to be ready to do whatever it takes to get spending cuts.

"Our opportunity here is on the debt ceiling," Toomey said on MSNBC. "We Republicans need to be willing to tolerate a temporary, partial government shutdown, which is what that could mean."

Yet Obama may be emboldened by winning the first round of fiscal fights when dozens of House Republicans buckled and voted for major tax hikes for the first time in two decades.

Deteriorating relations between leaders in the two parties during the fiscal cliff episode do not bode well for the more difficult fights ahead.

Vice President Joe Biden and Republican Senate leader Mitch McConnell had to step in to work out the final deal amid frayed relations between House Speaker John Boehner and Obama.

Obama Praises Deal, Says There's More to Be DonePresident Obama is praising the bill that staves off the fiscal cliff tax hikes and spending cuts. The House of Representatives followed the Senate's lead, and passed the bill late Tuesday. (Jan. 2)

Senate Democratic leader Harry Reid also drew the ire of Boehner, who told Reid in the White House to "Go fuck yourself" after a tense meeting last week, aides said. His retort came after the Democrat accused Boehner of running "dictatorship" in the House.

Bemoaning the intensity of the fiscal cliff fight, Obama urged "a little less drama" when the Congress and White House next address budget issues like the government's rapidly mounting $16 trillion debt load. He vowed to avoid another divisive debt-ceiling fight ahead of the late-February deadline for raising the limit.

"While I will negotiate over many things, I will not have another debate with this Congress about whether or not they should pay the bills they have already racked up," Obama said before he headed to Hawaii to resume an interrupted vacation.

NOT TIME TO CELEBRATE

Analysts warned that might not be so easy. "While the markets and most taxpayers may breathe a sigh of relief for a few days, excuse us for not celebrating," said Greg Valliere, chief political strategist at Potomac Research Group.

"We have consistently warned that the next brawl represents a far greater threat to the markets - talk of default will grow by February, accompanied by concerns over a credit rating downgrade," he said.

Financial markets that had been worried about the fiscal cliff showdown welcomed the deal, with U.S. stocks rising on the first day of trading in 2013.

All 10 S&P 500 industry sector indexes rose at least 1 percent, led by the information technology index, up 2.2 percent. Among the strongest names in the sector was Hewlett-Packard, which rose 5.3 percent to $15 after a miserable 2012 when the stock fell nearly 45 percent.

Debate over entitlement programs is also bound to be fraught. Republicans will be pushing for significant cuts in healthcare programs like Medicare and Medicaid for retirees and the poor, which are the biggest drivers of federal debt. Democrats have opposed cuts in those popular programs.

"This is going to be much uglier to me than the tax issue ... this is going to be about entitlement reform," Republican Senator Bob Corker of Tennessee said on CNBC.

"This is the debate that's going to be far more serious. Now that we have this other piece behind us - hopefully - we'll deal in a real way with the kinds of things our nation needs to face," he said.

The fiscal cliff crisis ended when dozens of Republicans in the House of Representatives relented and backed a bill passed by the Democratic-controlled Senate that hiked taxes on households earning more than $450,000 annually. Spending cuts of $109 billion in military and domestic programs were delayed only for two months.

Economists had warned that the fiscal cliff of across-the-board tax hikes and spending cuts would have punched a $600 billion hole in the economy this year and threatened to send the country back into recession.

Dozens of House Republicans reluctantly approved the Senate bill which passed by a bipartisan vote of 257 to 167 and sent it on to Obama to sign into law.

Peter Huntsman, chief executive of chemical producer Huntsman Corp, said the vote does little to reduce the U.S. budget deficit and will hinder growth.

"We haven't even begun to address the basic issues behind this," Huntsman told Reuters. "We haven't fixed anything. All we've done is addressed the short-term pain.

The vote underlined the precarious position of Boehner, who will ask his Republicans to re-elect him as speaker on Thursday when a new Congress is sworn in. Boehner backed the bill but most House Republicans, including his top lieutenants, voted against it.

The Ohio congressman also drew criticism on Wednesday from his fellow Republicans for failing to schedule a House vote on a bill passed by the Senate that would provide federal aid to Northeastern states hit by the storm Sandy.

(Additional reporting by Susan Heavey, Richard Cowan in Washington and Gabriel Debenedetti and Ernest Scheyder in New York, Editing by Alistair Bell)

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House faces test on fiscal cliff deal

Vice President Joe Biden gives two thumbs up following a Senate Democratic caucus meeting about the fiscal cliff …

Updated 4:25 pm ET

A hard-fought bipartisan compromise passed in the Senate early Tuesday to spare all but the richest Americans from painful income-tax hikes teetered on the edge of collapse as angry House Republicans denounced its lack of spending cuts.

While House Speaker John Boehner considered whether to bring the Senate-passed measure to the floor for a vote Tuesday, Majority Leader Eric Cantor told fellow Republicans in a closed-door meeting that he opposed the legislation negotiated by Vice President Joe Biden and Republican Senate Minority Leader Mitch McConnell and passed by the Senate 89-8 shortly after 2 a.m.

Cantor told the group he could not back the bill in its current form, according to two officials in the room, which could leave open the possibility of an attempt to modify the package and send it back to the upper chamber. But Democrats there have signaled that changing the compromise risks killing it.

A report released by the Congressional Budget Office Tuesday complicated matters further still. The nonpartisan group "scored" the Biden-McConnell compromise as likely adding nearly $4 trillion to the federal deficit over 10 years, hardening opposition among many Republicans seeking further spending cuts.

The country technically went over the “fiscal cliff” at midnight, triggering across-the-board income-tax increases and deep, automatic cuts to domestic and defense programs. Taken together, those factors could plunge the still-fragile economy into a fresh recession. Financial markets were closed for New Year’s Day, potentially limiting the damage from the partisan impasse in dysfunctional Washington at least until Wednesday.

Time was running short for another reason, however: A new Congress will take office at noon on Thursday, forcing efforts to craft a compromise by the current Congress back to the drawing board.

“The Speaker and Leader laid out options to the members and listened to feedback,” Boehner spokesman Brendan Buck said in a statement emailed to reporters. “The lack of spending cuts in the Senate bill was a universal concern amongst members in today’s meeting.”

“Conversations with members will continue throughout the afternoon on the path forward,” Buck said.

As House Republicans raged at the bill, key House Democrats emerging from a closed-door meeting with Biden expressed support for the compromise and pressed Boehner for a vote on the legislation as currently written.

“Our Speaker has said when the Senate acts, we will have a vote in the House. That is what he said, that is what we expect, that is what the American people deserve…a straight up-or-down vote,” Democratic House Minority Leader Nancy Pelosi told reporters.

Conservative activist organizations like the anti-tax Club for Growth warned lawmakers to oppose the compromise. The Club charged in a message to Congress that “this bill raises taxes immediately with the promise of cutting spending later.”

Under the compromise arrangement, taxes would rise on income above $400,000 for individuals and $450,000 for households, while exemptions and deductions the wealthiest Americans use to reduce their tax bill would face new limits. The accord would also raise the taxes paid on large inheritances from 35% to 40% for estates over $5 million. And it would extend by one year unemployment benefits for some two million Americans. It would also prevent cuts in payments to doctors who treat Medicare patients and spare tens of millions of Americans who otherwise would have been hit with the Alternative Minimum Tax. And it would extend some stimulus-era tax breaks championed by progressives.

The middle class will still see its taxes go up: The final deal did not include an extension of the payroll tax holiday.

Efforts to modify the first installment of $1.2 trillion in cuts to domestic and defense programs over 10 years -- the other portion of the “fiscal cliff,” known as sequestration -- had proved a sticking point late in the game. Democrats had sought a year-long freeze but ultimately caved to Republican pressure and signed on to just a two-month delay while broader deficit-reduction talks continue.

That would put the next major battle over spending cuts right around the time that the White House and its Republican foes are battling it out over whether to raise the country's debt limit. Republicans have vowed to push for more spending cuts, equivalent to the amount of new borrowing. Obama has vowed not to negotiate as he did in 2011, when a bruising fight threatened the first-ever default on America's obligations and resulted in the first-ever downgrade of the country's credit rating. Biden sent that message to Democrats in Congress, two senators said.

“This agreement is the right thing to do for our country and the House should pass it without delay,” President Barack Obama said in a written statement shortly after the Senate vote.

There were signs that the 2016 presidential race shaped the outcome in the Senate. Republican Senator Marco Rubio, widely thought to have his eye on his party’s nomination, voted no. Republican Senator Rand Paul, who could take up the libertarian mantle of his father Ron Paul, did as well.

Biden's visit -- his second to Congressional Democrats in two days -- aimed to soothe concerns about the bill and about the coming battles on deficit reduction.

“This is a simple case of trying to Make sure that the perfect does not become the enemy of the good,” said Democratic Representative Elijah Cummings, one of the chamber’s most steadfast liberals. “Nobody’s going to like everything about it.”

Asked whether House progressives, who had hoped for a lower income threshold, would back the bill, Cummings said he could not predict but stressed: “I am one of the most progressive members, and I will vote for it.”

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Congress to miss midnight cliff deadline

America is going over the “fiscal cliff” – for a few minutes, or hours, at the very least. Don't panic. There's no need to move the family into the Doomsday bunker in the backyard. Yet.

While President Barack Obama and Republican Senate Minority Leader Mitch McConnell have said they are close to a broad agreement that would prevent across-the-board income-tax hikes, lawmakers are unlikely to approve actual legislation before a midnight deadline.

That’s not expected to pose any major logistical problem in the next few days, provided that Democrats and Republicans actually have a deal. Unlike a college student who writes an end-of-semester paper overnight before a morning deadline, then drops the assignment off hours after it was due, Congress can write its own rules to minimize the damage – and Americans whose taxes are staying the same won’t see a change in their bottom line.

“It’s basically a matter of saying it’s effective January 1,” one senior Republican aide shrugged.

The deal – if a final deal is reached – will originate in the Democratic-led Senate (but on a House bill, since legislation affecting revenues technically has to start in the lower chamber). Republican House Speaker John Boehner has said that the House will only act after the Senate does. Obama and McConnell have both said that they expected work to continue on avoiding the first installment in $1.2 trillion in cuts to domestic and defense programs, the other part of the "fiscal cliff." McConnell called earlier in the day for lawmakers to vote on the tax component now, but Democrats demurred.

As of 5 p.m. on Monday, it was not clear whether the Senate would vote before midnight.

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GOP Senate leader urges Biden to break ‘fiscal cliff’ impasse

Senate Minority Leader Mitch McConnell (R-KY) is shown in this C-Span video footage as he addresses the Senate …Republican Senate Minority Leader Mitch McConnell urged Vice President Joe Biden on Sunday to jump into “fiscal cliff” talks in hopes of breaking an impasse that threatens Americans with sharply higher income taxes come January 1.

In a brief speech on the Senate floor, McConnell complained that Democrats had not yet placed a counter-offer to a new Republican proposal, delivered at 7 pm on Saturday, “despite the obvious time crunch.”

“I’m concerned about the lack of urgency here,” the Kentucky lawmaker said. “I think we all know we’re running out of time.”

Besides conferring with his Democratic counterpart, Senate Majority Leader Harry Reid, McConnell said he had reached out to Biden "to see if he could help jump-start the negotiations on his side.”

McConnell added, “The vice president and I have worked together on solutions before, and I believe we can again."

Absent a breakthrough by tomorrow, income tax rates will rise across the board while government spending on domestic and defense programs will be slashed – a combination that some experts warn could plunge the economy into a new recession.

President Barack Obama has pressed for extending Bush-era tax rates on income up to $250,000 but letting them expire above that threshold. Republicans have resisted raising taxes on income at all levels. The two sides have also been at odds on issues like the estate tax and whether to extend unemployment benefits that stand to expire for some two million Americans.

Republican aides said that McConnell and Biden had spoken several times. A Biden aide said the vice president went to the White House after spending Christmas with his family in Delaware.

“We’re willing to work with whoever, whoever can help,” McConnell said. “There’s no single issue that remains an impossible sticking point. The sticking point appears to be a willingness, an interest, or frankly the courage to close the deal.”

“I’m willing to get this done, but I need a dance partner,” he said.

Reid said he had spoken several times on Sunday with Obama but acknowledged that his side had been “unable” to present a counter-offer to the latest Republican proposal.

“He and the vice president, I wish them well. In the meantime I will continue to try to come up something but at this stage I don’t have a counter-offer to make,” Reid said. “We are apart on some pretty big issues.”

Reid said he remained "hopeful but realistic" about the prospects for a breakthrough.

But he also seemed to confirm that one key sticking point was a Republican demand for reducing Social Security payments but adopting a less generous cost-of-living calculation known as “chained CPI” (the CPI being “consumer price index,” a measure of inflation).

“We’re not going to have any Social Security cuts,” Reid declared, saying it would not be “appropriate” in a short-term deal. Democratic leaders have cautiously signaled support for that approach – but only as part of a larger-scale deal that would see the U.S. debt limit raised for a significant stretch of time. Republicans want to use the debt ceiling fight to wrangle deeper government spending cuts.

“We're willing to make difficult concessions as part of a balanced, comprehensive agreement,” Reid said, “but we'll not agree to cut Social Security benefits as part of a small or short-term agreement, especially if that agreement gives more handouts to the rich.”

Republican aides bristled at Reid's characterization, noting that Democrats had not yet returned with a counter-offer. "If they don't like the CPI thing, they can strike it out," one told Yahoo News.

Republican senators, meanwhile, emerged from a closed door party meeting saying that chained CPI was off the table for now. The proposal was "not a winning hand" in the current standoff, John McCain told reporters drily.

Republican House Speaker John Boehner has said that it's up to the Senate to craft a compromise that can clear both chambers of Congress. Boehner suffered an embarrassing setback 10 days ago when conservative opposition forced him to withdraw legislation that would have let taxes rise on income of above $1 million. But a senior Republican aide noted that the exercise allowed the speaker to gauge how many of his rank-and-file would accept any increase in tax rates.

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'Clock is ticking': Debt talks underway

WASHINGTON (AP) — The end game at hand, President Barack Obama and congressional leaders made a final stab at compromise Friday to prevent a toxic blend of middle-class tax increases and spending cuts from taking effect at the turn of the new year.

Success was far from guaranteed in an atmosphere of political mistrust — even on a slimmed-down deal that postponed hard decisions about spending cuts into 2013, and pessimism vied with optimism in a Capitol where lawmakers grumbled about the likelihood of spending the new year holiday in the Capitol.

"The clock is ticking," Sen. Max Baucus, chairman of the Senate Finance Committee, said in remarks on the Senate floor as Obama and congressional leaders were meeting several blocks away at the White House. "My message to them is simple. We can do this. We can get this done, and we must," added the Montana Democrat.

Congressional Democrats said Obama was ready with a revised offer to present.

But that drew a denial from a person familiar with the talks, who said the president would review his proposal from a week ago, when he urged lawmakers to preserve tax cuts for most while letting rates rise above incomes of $250,000 a year. At the same time, Obama said lawmakers should extend unemployment benefits for the long-term jobless. The person was unauthorized to discuss the private meeting publicly and spoke on condition of anonymity.

The meeting lasted a little over an hour and neither the president nor the four lawmakers spoke with reporters before or immediately after the session.

The guest list included two Republicans, House Speaker John Boehner, and Senate Republican leader Mitch McConnell; as well as Democrats Harry Reid, the Senate Majority Leader, and Rep. Nancy Pelosi of California, her party's leader in the House.

The same group last met more than a month ago and emerged expressing optimism they could strike a deal that avoided the fiscal cliff. At that point, Boehner had already said he was willing to let tax revenues rise as part of an agreement, and the president and his Democratic allies said they were ready to accept spending cuts.

Since then, though, talks between Obama and Boehner faltered, the speaker struggled to control his rebellious rank and file, and Reid and McConnell sparred almost daily in speeches on the Senate floor. Through it all, Wall Street has paid close attention, and in the moments before the meeting, stocks were trading lower for the fifth day in a row.

The core issue is the same as it has been for more than a year, Obama's demand for tax rates to rise on upper incomes while remaining at current levels for most Americans. He made the proposal central to his successful campaign for re-election, when he said incomes above $200,000 for individuals and $250,000 for couples should rise to 39.6 percent from the current 35 percent.

Boehner refused for weeks to accept any rate increases, and simultaneously accused Obama of skimping on the spending cuts he would support as part of a balanced deal to reduce deficits, remove the threat of spending cuts and prevent the across-the-board tax cuts.

Last week, the Ohio Republican pivoted and presented a Plan B measure that would have let rates rise on million-dollar earners. That was well above Obama's latest offer, which called for a $400,000 threshold, but more than the speaker's rank and file were willing to accept.

Facing defeat, Boehner scrapped plans for a vote, leaving the economy on track for the cliff that political leaders in both parties had said they could avoid. In the aftermath, Democrats said they doubted any compromise was possible until Boehner has been elected to a second term as speaker when the new Congress convenes on Jan. 3.

Apart from income tax rates, congressional officials in both parties said a handful of other issues were the subject of private talks in the Capitol. These included the Alternative Minimum Tax, which would effectively raise taxes on millions of upper-middle-class families unless Congress acts; as well as taxes on capital gains, dividends and estates.

In addition, benefits for the long-term unemployed are due to expire in the next few days, and doctors face the prospect of a deep cut in the fees they receive for treating Medicare patients unless legislation is passed to prevent it.

Further compounding the year-end maneuvering, there are warnings that the price of milk could virtually double beginning next year.

Congressional officials said that under current law, the federal government is obligated to maintain prices so that fluid milk sells for about $20 per hundredweight. If the law lapses, the Department of Agriculture would be required to maintain a price closer to $36 of $38 per hundredweight, they said. It is unclear when price increases might be felt by consumers.

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Associated Press writers Alan Fram and Andrew Taylor contributed to this report.

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House back Sunday night, will have 29.5 hours to strike deal on fiscal cliff

President Barack Obama salutes as he returns via Marine One from a Christmas visit with his family in Hawaii, to …Will parachutes be provided? Republican House leaders informed their rank-and-file on a conference call Thursday that they have to be back at work at 6:30 p.m. Sunday – giving them, oh, 29.5 hours to forestall the “fiscal cliff.”

Absent a last-minute compromise, Americans will see across-the-board income-tax hikes and painful federal spending cuts come into force January 1. Some economists fear that, taken together, the measures could plunge the economy into a new recession.

Technically, however, the Congress could vote the cliff into oblivion at any time – either before OR after the income-tax increases and spending cuts are slated to take effect. Republican House Majority Leader Eric Cantor noted on Twitter that lawmakers “may be in session through Wednesday, January 2.”

House Speaker John Boehner told his troops on the conference call that the Senate would have to act first, either by passing, or by amending, legislation the House has already passed to avert the cliff.

“If the Senate will not approve these bills and send them to the president to be signed into law in their current form, they must be amended and returned to the House,” he said, according to a source on the call.

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Powerful winter storm throttles Midwest travelers

CINCINNATI (AP) — A powerful winter storm system pounded the nation's midsection Wednesday and headed toward the Northeast, where people braced for the high winds and heavy snow that disrupted holiday travel, knocked out power to thousands of homes and were blamed in at least six deaths.

Hundreds of flights were canceled or delayed, scores of motorists got stuck on icy roads or slid off into drifts, and blizzard warnings were issued across Indiana and Ohio amid snowy gusts of 30 mph that blanketed roads and windshields, at times causing whiteout conditions.

"The way I've been describing it is as a low-end blizzard, but that's sort of like saying a small Tyrannosaurus rex," said John Kwiatkowski, a meteorologist with the National Weather Service in Indianapolis. He said the storm's winds were just high enough to classify the storm as a blizzard, making it one of the strongest snowstorms in years to strike central and southern Indiana.

"It's ugly out," said Elizabeth Brinker, 26, in downtown Indianapolis as she hurried to her car after the law firm where she works sent employees home Wednesday morning.

Some 40 vehicles got bogged down trying to make it up a slick hill in central Indiana, and four state snowplows slid off slick roads near Vincennes as snow fell at the rate of 3 inches within an hour in some spots.

Two passengers in a car on a sleet-slickened Arkansas highway were killed Wednesday in a head-on collision, and two people, including a 76-year-old Milwaukee woman, were killed Tuesday on Oklahoma highways. Deaths from wind-toppled trees were reported in Texas and Louisiana. The system that spawned nearly three dozen tornadoes across Gulf Coast states on Tuesday was headed to New England and the Eastern Seaboard.

National Guardsmen were called out to help cope with the storm in Indiana and Arkansas.

In Arkansas, Humvees transported medical workers and patients in areas with 10 inches of snow. Gov. Mike Beebe sent out National Guard teams after the storm left 192,000 customers without power Wednesday morning. The largest utility, Entergy Arkansas, said some people could be without power for as long as a week because of snapped poles and wires after ice coated power lines ahead of 10 inches of snowfall.

Other states to the east also had widely scattered outages and treacherous roads.

Traffic crawled at 25 mph on Interstate 81 in Maryland, where authorities reported scores of accidents.

"We're going to go down south and get below it (the storm)," said a determined Richard Power, traveling from home in Levittown, N.Y., to Louisville, Ky., in a minivan with his wife, two children and their beagle, Lucky. He said they were well on their way until they hit snow near Harrisburg, Pa., then 15 mph traffic on Interstate 81 at Hagerstown, Md. "We're going to go as far as we can go. .... If it doesn't get better, we're going to just get a hotel."

About two dozen counties in Indiana and Ohio issued snow emergency travel alerts, urging people to go out on the roads only if necessary.

"People need not to travel," said Rachel Trevino, a meteorologist at the National Weather Service bureau in Paducah, Ky. "They need to just go where they're going to be there and stay there."

Jennifer Miller, 58, was taking a bus Wednesday from Cincinnati to visit family in Columbus.

"I wish this had come yesterday and was gone today," she said, struggling with a rolling suitcase and three smaller bags on a slushy sidewalk near the station. "I'm glad I don't have to drive in this."

More than 900 flights were canceled by midday, according to FlightAware.com.

Snow was blamed for scores of vehicle accidents as far east as Maryland. As the storm moved east, New England state highway departments were treating roads and getting ready to mobilize with snowfall forecasts of a foot or more.

"People are picking up salt and a lot of shovels today," said Andy Greenwood, an assistant manager at Aubuchon Hardware in Keene, N.H.

In Manchester, N.H., public works officials said plow trucks were ready, as were a variety of emergency notification systems including blinking strobe lights at major intersections, and email, text and social media alerts.

Early indications were that day-after-Christmas mall traffic was down, too, with people holding off in the storm-affected areas on returning that ugly sweater or other unwanted gifts.

"I can't feel my feet, and the ice is hurting when it hits my face," said Tracy Flint, a Columbus, Ohio, hairstylist who was trudging to work across a shopping center lot where only a handful of cars were parked. "But it could be worse."

Behind the storm, Mississippi's governor declared states of emergency in eight counties with more than 25 people reported injured and 70 homes left damaged.

Cindy Williams, 56, stood near a home in McNeill, Miss., where the front was collapsed into a pile of wood and brick, with a balcony and porch ripped apart. Large Oak trees were uprooted and winds sheared off nearby treetops in a nearby grove. But she was focused on that all the family members from her husband to their grandchildren had escaped harm.

"We are so thankful," she said. "God took care of us."

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Associated Press writers Rick Callahan and Charles Wilson in Indianapolis, Kelly P. Kissel in Little Rock, Ark.; Jim Van Anglen in Mobile, Ala.; Holbrook Mohr in Jackson, Miss.; Julie Carr Smyth and Mitch Stacy in Columbus, Ohio; Amanda Lee Myers in Cincinnati, David Dishneau in Hagerstown, Md., and Holly Ramer in Concord, N.H., contributed to this report.

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Contact Dan Sewell at http://www.twitter.com/dansewell

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Newtown celebrates Christmas amid signs of mourning

NEWTOWN, Conn. - Newtown celebrated Christmas amid piles of snow-covered teddy bears and heaps of flowers as volunteers manned a 24-hour candlelight vigil in memory of the 20 children and six adults shot to death in the second-largest school shooting in U.S. history.

Well-wishers from around the country showed up Tuesday morning to hang ornaments on memorial Christmas trees, while police officers from around Connecticut took extra shifts to give local police a day off.

"It's a nice thing that they can use us this way," Ted Latiak, a police detective from Greenwich, Connecticut, said as he and a fellow detective came out of a store with bagels and coffee for other officers.

A steady stream of residents, some in pyjamas, relit candles that had been extinguished in an overnight snowstorm. Others dropped off toys and fought back tears at a huge sidewalk memorial filled with stuffed animals, poems, flowers, posters and cards.

In the morning, resident Joanne Brunetti watched over 26 candles that had been lit at midnight in honour of those slain at Sandy Hook Elementary School. She and her husband, Bill, signed up for a three-hour shift and erected a tent to ensure that the flames never went out throughout the day.

"You have to do something and you don't know what to do, you know? You really feel very helpless in this situation," she said. "My thought is if we were all this nice to each other all the time maybe things like this wouldn't happen."

Julian Revie played "Silent Night" on a piano on the sidewalk at the downtown memorial. Revie, from Ottawa, Canada, was visiting the area at the time of the shootings. He found a piano online and chose to spend Christmas Eve and Christmas Day playing for the people of Newtown.

"It was such a mood of respectful silence," said Revie. "But yesterday being Christmas Eve and today being Christmas Day, I thought now it's time for some Christmas carols for the children."

At a town hall memorial, Faith Leonard waved to people driving by and handed out Christmas cookies and children's gifts. She had driven from Arizona, at almost the other end of the country, to volunteer on Christmas morning alone.

"I guess my thought was if I could be here helping out, maybe one person would be able to spend more time with their family or grieve in the way they needed to," Leonard said.

Many residents attended Christmas Eve services and spent Tuesday morning at home with their families. Others attended church services in search of a new beginning.

At St. Rose of Lima Roman Catholic Church, which eight of the child victims of the massacre attended, the pastor told parishioners that "today is the day we begin everything all over again."

Recalling the events of Dec. 14, the Rev. Robert Weiss said: "The moment the first responder broke through the doors, we knew good always overcomes evil."

"We know Christmas in a way we never ever thought we would know it," Weiss said. "We need a little Christmas and we've been given it."

Police have yet to offer a theory about a possible motive for gunman Adam Lanza's rampage. The 20-year-old resident killed his mother in her bed before carrying out the massacre and killing himself.

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Firefighters ambushed by gunman while responding to house fire

A man with a criminal history shot and killed two West Webster, N.Y. firefighters and seriously injured two others as they responded to a fire at his home, police say.

William H. Spengler, Jr., 62, apparently started a 5:35 a.m. fire at his home on Lake Road  and then waited with an armament of weapons for first responders to arrive, Webster N.Y. Police Chief Gerald Pickering said at an afternoon news conference.

“He was shooting from high ground or a berm," Pickering said. "He was barricaded with weapons to shoot first responders."

After a brief exchange of gunfire with police, Spengler then shot and killed himself at the scene, Pickering said.

Spengler was convicted in 1981 in the death of his 92-year-old grandmother a year earlier. He served time in prison and was released in 1998, Pickering said.

Spengler beat Rose Spengler to death with a hammer 1980, the Rochester Democrat and Chronicle reported. Rose Spengler had lived in the home next to William Spengler on Lake Road at the time of her death.

Local police had not noted any criminal activity in his recent past, Pickering said.

Pickering said they are looking into the apparent disappearance of Spengler's sister who is unaccounted for at this time.

Police and fire officials are continuing to gather evidence and will inspect the seven homes that were destroyed in the fire that spread to nearby houses in the small lakeside town located 10 miles east of Rochester.

The victims in the shooting are Mike Chiapperini, also a lieutenant and public information officer with the local police department, and Tomasz Kaczowka, Pickering said.

"These people get up in the middle of the night to fight fires. They don't expect to be shot and killed," a tearful Pickering said at the press conference.

Chiapperini was described by Pickering as a lifelong firefighter who started with the department's explorer program and had about 20 years of experience. Kaczowka was a younger firefighter who was on the force for about two years and was also a 911 dispatcher, he said.

West Webster firefighters Joseph Hofsetter and Theodore Scardino were seriously injured and are at Strong Memorial Hospital with gunshot wounds, a hospital spokeswoman said.  Scardino  has  injuries to his chest and lungs. Hofsetter was injured in the pelvis, the spokeswoman said at a media briefing. Both are in guarded condition, she said.

An off-duty police officer from nearby Greece, N.Y., John Ritter was also injured by shrapnel during the shooting, Pickering said.

Pickering said that one of the firefighters who survived made his way across a bridge to safety. The other three did not make it across, Pickering said. Police arrived and rescued the other three firefighters, but two were fatally shot, Pickering said.

The morning scene was described as chaotic as police and firefighters dealt with an immense blaze as well as gunshots,  local news station WHAM-TV  reports.

“I’m not aware of anything like this happening in Webster, obviously not a firefighter being fired upon,” Webster Fire Marshal Rob Boutillier told the Democrat and Chronicle.  Pickering described Webster as resort lakeside community that is quiet and usually peaceful.

WHAM reported that an outpouring of support has come through the Webster community. Black flags reportedly have been draped at some homes and offices to honor those killed and injured.

N.Y. Gov. Andrew Cuomo tweeted of the incident: We as the community of #NY mourn their loss as now 2 more families must spend the holidays without their loved ones #Webster

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NRA’s LaPierre: New gun laws won't work

LaPierre speaks at Friday's press conference. (Getty)

Two days after suggesting a "good guy with a gun" be stationed at every school in the country in response to the deadly shootings in Newtown, Conn., National Rifle Association executive vice president Wayne LaPierre blasted critics of his plan.

In an interview broadcast on Sunday's "Meet The Press," LaPierre reiterated the statements he made Friday at a press conference in Washington, when he said the answer to preventing shootings like the one at Sandy Hook Elementary Sch00l is armed security in every school--in effect, protecting children with guns.

“If it’s crazy to call for putting police in and securing our schools to protect our children, then call me crazy," LaPierre said. “I think the American people think it’s crazy not to do it."

At one point during the often contentious exchange, host David Gregory held up a high-capacity magazine clip that carries 30 bullets, asking if the NRA would support a federal limit on the capacity of such clips.

"Isn't it just possible that we could reduce the carnage in a situation like Newtown?" Gregory asked.

"I don't believe that's going to make one difference," LaPierre responded.

"You're telling me that it's not a matter of common sense that if you don't have an ability to shoot off 30 rounds without reloading, that, just possibly, you could reduce the loss of life?" Gregory asked.

"I don't buy your argument for a minute," LaPierre said. "There are so many different ways to evade that, even if you had that."

“Is there no new gun regulation you would support?” an exasperated Gregory asked. LaPierre refused to answer.

At Friday's press conference, LaPierre--who did not take questions from reporters--argued that had someone at the school been armed, "innocent lives might have been spared."

"The only thing that stops a bad guy with a gun is a good guy with a gun," he said.

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Final day of funerals for Newtown shooting victims

The final three victims of the massacre at Sandy Hook Elementary School will be laid to rest today, ending a somber week of funerals.

A mass will take place today at St. Rose of Lima Catholic Church for Josephine Gay, who had celebrated her 7th birthday on Dec. 11.

Friends and family have been asked to wear Josephine's favorite color, purple, in her honor.

PHOTOS: Victims of Sandy Hook Massacre

A homegoing celebration will take place at The First Cathedral in Bloomfield, Conn., for Ana Marquez-Greene. The 6-year-old with a beaming voice sang in a home video with her brother, who was also at Sandy Hook Elementary School during the massacre, and seemed destined to take after her father, a jazz musician.

Emilie Parker, the budding artist who carried her markers and pencils everywhere, will be laid to rest in Ogden, Utah today.

The 6-year-old would have been would one of the first to comfort her classmates at Sandy Hook Elementary School, had a gunman's bullets not claimed her life, her father said.

"My daughter Emilie would be one of the first ones to be standing and giving support to all the victims because that's the kind of kid she is," her father, Robbie Parker, said last Saturday.

"She always had something kind to say about anybody," Parker said. "We find comfort reflecting on the incredible person Emilie was and how many lives she was able to touch."

WATCH: Emilie's father speaks about his daughter

Also Read

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NRA: 'Good guy with a gun' could have saved lives at Sandy Hook

The NRA's Wayne LaPierre speaks at Friday's press conference (Chip Somodevilla/Getty Images)

The National Rifle Association on Friday, a full week after the shooting at Sandy Hook Elementary School, gave its first response to the massacre that killed 20 schoolchildren in Newtown, Conn. Wayne LaPierre, the NRA's executive vice president, argued at a press conference in Washington, D.C., that gun control legislation would not prevent similar shootings and offered the organization's own proposal: a nationwide program that would place armed security in every school desiring protection.

"I call on Congress today to appropriate whatever is necessary to put armed police officers in every single school in this nation," LaPierre said. The proposed program, called the National School Shield, would help train and install security at schools nationwide under the leadership of former Arkansas Republican Rep. Asa Hutchinson.

"Innocent lives might have been spared," LaPierre said, if armed security was present at Sandy Hook. "The only thing that stops a bad guy with a gun is a good guy with a gun."

LaPierre, Hutchinson and David Keene, president of the NRA, all declined to take questions from the press and said NRA press officers won't be responding to the media until Monday.

LaPierre in part blamed mass shootings on "vicious, violent video games" such as "Bulletstorm," "Grand Theft Auto," Mortal Kombat" and  "Splatterhouse." He also reached back in time to place blame on movies like "American Psycho" and "Natural Born Killers" for portraying "life as a joke and murder as a way of life."

He added, "In a race to the bottom, media conglomerates compete with one another to shock, violate and offend every standard of civilized society by bringing an ever-more-toxic mix of reckless behavior and criminal cruelty into our homes—every minute of every day of every month of every year.”

He also criticized the media for vilifying guns and gun owners, and for publicizing inaccuracies about guns.

"Why is the idea of a gun good when it’s used to protect the president of our country or our police, but bad when it’s used to protect children in our schools?" he asked.

"It’s our duty to protect them," LaPierre said of the nation's schoolchildren. "It’s our right to protect them."

Part of the problem in protecting schools, he also said, is the designation of gun-free school zones. The zones "tell every insane killer in America that schools are the safest place to inflict maximum mayhem with minimum risk," he said.

Gun control advocates immediately decried the NRA's views as extreme and dangerous.

"Their press conference was a shameful evasion of the crisis facing our country," New York City Mayor Michael Bloomberg, an independent, said in a statement. "Instead of offering solutions to a problem they have helped create, they offered a paranoid, dystopian vision of a more dangerous and violent America where everyone is armed and no place is safe."

Bloomberg said NRA members support background checks for gun ownership because of gun violence. "As a country, we must rise above special interest politics," he added.

On Capitol Hill, Democratic Sen. Richard Blumenthal of Connecticut, who conceded that armed security could be "helpful in some instances, noted in a statement that "the NRA’s statement is sadly and shamefully inadequate—calling for more guns and rejecting real action against gun violence. At a defining, historic moment demanding courageous leadership, the NRA has declined to step forward as a credible and constructive partner."

The press conference, despite the tight security at the Willard InterContinental Hotel where it was held, was interrupted twice by gun control protesters later identified as members of anti-war group Code Pink. A man rose from the press area in front of LaPierre during his speech and held up a pink cloth displaying the words "NRA Killing Our Kids." Later, a woman identified as Code Pink founder Medea Benjamin, unfurled a sign reading "NRA blood on your hands,” and shouted, "Reckless behavior coming from the NRA" and other comments as she was dragged out of the room.

A large security staff dressed in suits and wearing earpieces lined the perimeter of the makeshift stage as well as the room. Security staffers moved to sit directly in front and behind of LaPierre following the Code Pink protests as other security members stepped forward into the seating area.

Prior to the conference, gun control protesters as well as PETA protesters and others lined the street in front of the hotel entrance waving signs and shouting.

Pressure on lawmakers from gun-control advocates has increased in the wake of the shooting. President Barack Obama on Friday released a web video in response to an outpouring of White House petitions calling on the president to respond to gun violence.

“We hear you," Obama said in the video. "I will do everything in my power as president to advance these efforts, because if there’s even one thing we can do as a country to protect our children, we have a responsibility to try. But as I said earlier this week, I can’t do it alone. I need your help.”

Obama tasked Vice President Joe Biden to review potential gun legislation and other measures on which to act next session. Biden spoke Thursday to law enforcement leaders about banning assault weapons, though no further details were released on the private discussion.

California Sen. Dianne Feinstein has pledged to introduce a new federal assault weapons ban in January and has received support from several gun-rights advocates and from the White House.

Olivier Knox contributed to this report.

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Snowstorm triggers deadly Iowa pileup

DES MOINES, Iowa (AP) — The first widespread snowstorm of the season crawled across the Midwest on Thursday, with whiteout conditions stranding holiday travelers and sending drivers sliding over slick roads — including into a fatal 25-vehicle pileup in Iowa.

The storm, which dumped a foot of snow in parts of Iowa and Wisconsin, was part of a system that began in the Rockies earlier in the week before trekking into the Midwest. It was expected to move across the Great Lakes overnight before moving into Canada.

The storm led airlines to cancel about 1,000 flights ahead of the Christmas holiday — relatively few compared to past big storms, though the number was climbing.

On the southern edge of the system, tornadoes destroyed several homes in Arkansas and peeled the roofs from buildings, toppled trucks and blew down oak trees and limbs Alabama.

In Iowa, drivers were blinded by blowing snow and didn't see vehicles that had slowed or stopped on Interstate 35 about 60 miles north of Des Moines, state police said. A chain reaction of crashes involving semitrailers and passenger cars closed down a section of the highway. At least one person was killed.

"It's time to listen to warnings and get off the road," said Iowa State Patrol Col. David Garrison.

Thomas Shubert, a clerk at a store in Gretna near Omaha, Neb., said his brother drove him to work in his truck, but some of his neighbors weren't so fortunate.

"I saw some people in my neighborhood trying to get out. They made it a few feet, and that was about it," Shubert said.

Along with Thursday's fatal accident in Iowa, the storm was blamed for road deaths in Nebraska, Kansas and Wisconsin. In southeastern Utah, a woman who tried to walk for help after her car became stuck in snow died Tuesday night.

The heavy, wet snow made some unplowed streets in Des Moines nearly impossible to navigate in anything other than a four-wheel drive vehicle. Even streets that had been plowed were snow-packed and slippery. Eight jackknifed semitrailers were reported on a section of Interstate 80 east of the city.

The storm made travel difficult from Kansas to Wisconsin, forcing road closures, including part of Interstate 29 in northern Missouri and a 120-mile stretch of Interstate 35 from Ames, Iowa through Albert Lea, Minn. A section of Interstate 80 in Nebraska that was closed from Wednesday evening to Thursday afternoon. Iowa and Wisconsin activated National Guard troops to help rescue stranded drivers.

Those who planned to fly before the Christmas holiday didn't fare much better.

Shanna Tinsley, 17, and Nicole Latimer, 20, were both headed to the Kansas City area to see their families for the holiday when their flight Thursday morning out of Milwaukee's General Mitchell International Airport was canceled. Neither cared about a white Christmas, and were hoping to get on another flight later in the day.

"It would be cool I guess, but I'd rather be there than stuck without family with a white Christmas," Latimer said.

Added Tinsley, "Wisconsin is full of snow, you see it all the time."

In Chicago, commuters began Thursday with heavy fog and cold, driving rain, and forecasters said snow would hit by mid-afternoon.

Airlines delayed and canceled hundreds of flights out of Chicago's O'Hare and Midway international airports. Southwest Airlines canceled all of its flights at its Midway hub that were scheduled for after 4:30 p.m., and American Airlines canceled its flights out of O'Hare after 8 p.m.

Airlines were waiving fees for customers impacted by the storm who wanted to change their flights.

The cancellations were getting a lot of attention because the storm came just a few days before Christmas. But Daniel Baker, CEO of flight tracking service FlightAware.com called it "a relatively minor event in the overall scheme of things."

By comparison, airlines canceled more than 13,000 flights over a two-day period during a February 2011 snowstorm that hit the Midwest. And more than 20,000 flights were canceled during Superstorm Sandy.

Before the storm, several cities in the Midwest had broken records for the number of consecutive days without measurable snow.

In the Des Moines suburb of Urbandale, Kristin Isenhart, 38, said her three kids, ages 9, 5 and 3, were asking about going outside to play after school was canceled for the day.

"They are thrilled that it snowed," she said. "They've asked several times to go outside, and I might bundle them up and let them go."

As far as the region's drought, meteorologists said the storm wouldn't make much of a dent. It takes a foot or more of snow to equal an inch of water, said Brian Fuchs, a climatologist at the National Drought Mitigation Center.

Meanwhile, tens of thousands of people lost power in Arkansas, Iowa and Nebraska as heavy snow and strong winds pulled down lines. Smaller outages were reported in Alabama, Kansas, Missouri, Illinois and Louisiana.

"The roads have been so bad our crews have not been able to respond to them," said Justin Foss, a spokesman for Alliant Energy, which had 13,000 customers without power in central Iowa. "We have giant four-wheel-drive trucks with chains on them, so when we can't get there it's pretty rough."

Tom Tretter and his wife, Pat, had been without power since Wednesday night, and temperatures Thursday were dropping. The retired seniors were shoveling their steep driveway Thursday afternoon and scraping ice off the walkway to their Des Moines home.

"It's getting cold in the house," Tom Tretter said, leaning on his shovel in the driveway. "And I'm getting too old for this."

Blake Landau, a cook serving eggs, roast beef sandwiches and chili to hungry snowplow drivers at Newton's Paradise Cafe in downtown Waterloo, Iowa, said he has always liked it when it snows on his birthday. He turned 27 on Thursday.

"It's kind of one of those things where it's leading up to Christmas time," Landau said. "We don't know when we get our first snowfall, and I hope we get it by my birthday. It's nice to have a nice snowy Christmas."

___

Beck reported from Omaha, Neb. Associated Press writers Scott Mayerowitz in New York; Carrie Antlfinger in Milwaukee; Heather Hollingsworth in Kansas City, Mo.; Jason Keyser in Chicago; Barbara Rodriguez in Des Moines; and Ryan J. Foley in Iowa City, Iowa contributed to this report.

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Outrage as scam artists creep in amid tragedy

NEWTOWN, Conn. (AP) — The family of Noah Pozner was mourning their 6-year-old who was killed in the Newtown school massacre when their sorrow was compounded by outrage.

Someone they didn't know was soliciting donations in Noah's memory, claiming that they'd send any cards, packages and money collected to his parents and siblings. An official-looking website had been set up, with Noah's name as the address, even including petitions on gun control.

Noah's uncle, Alexis Haller, called on law enforcement authorities to seek out "these despicable people."

"These scammers," he said, "are taking away from families and the spirits of dead kids."

It's a problem as familiar as it is disturbing. Tragedy strikes — be it a natural disaster, a gunman's rampage or a terrorist attack — and scam artists move in.

It happened after 9/11. It happened after Columbine. It happened after Hurricane Katrina. And after this summer's movie theater shooting in Aurora, Colo.

Sometimes fraud takes the form of bogus charities asking for donations that never get sent to victims. Natural disasters bring another dimension: Scammers try to get government relief money they're not eligible for.

"It's abominable," said Ken Berger, president and CEO of Charity Navigator, which evaluates the performance of charities. "It's just the lowest kind of thievery."

Noah Pozner's relatives found out about one bogus solicitation when a friend received an email asking for money for the family. Poorly punctuated, it gave details about Noah, his funeral and his family. It directed people to send donations to an address in the Bronx, one that the Pozners had never heard of.

It listed a New York City phone number to text with questions about how to donate. When a reporter texted that number Wednesday, a reply came advising the donation go to the United Way.

The Pozner family had the noahpozner.com website transferred to its ownership. Victoria Haller, Noah's aunt, emailed the person who had originally registered the name. The person, who went by the name Jason Martin, wrote back that he'd meant "to somehow honor Noah and help promote a safer gun culture. I had no ill intentions I assure you."

Alexis Haller said the experience "should serve as a warning signal to other victims' families. We urge people to watch out for these frauds on social media sites."

Consumer groups, state attorneys general and law enforcement authorities call for caution about unsolicited requests for donations, by phone or email. They tell people to be wary of callers who don't want to answer questions about their organization, who won't take "no" for an answer, or who convey what seems to be an unreasonable sense of urgency.

"This is a time of mourning for the people of Newtown and for our entire state," Connecticut Attorney General George Jepsen said in a statement this week. "Unfortunately, it's also a time when bad actors may seek to exploit those coping with this tragedy."

But scam artists know that calamity is fertile ground for profit, watered by the goodwill of strangers who want to help and may not be familiar with the cause or the people they're sending money to.

After the shootings at Columbine High School in Littleton, Colo., scammers asked for credit card donations for victims' families. After the 9/11 attacks, the North American Securities Administrators Association warned investors to be wary of Internet postings encouraging them to invest in supposed anti-terrorist technologies.

In 2006, the FBI warned about an email widely circulated after the Sago, W.Va., mine explosion, which claimed to be from a doctor treating one of the survivors and asking for donations to cover medical bills.

"As was learned after the tragic events of 9/11/01, the tsunami disaster, and more recently with Hurricane Katrina, unscrupulous cyber criminals have shown the desire and means to exploit human emotion by attempting to defraud the public when they are perceived to be most vulnerable," the FBI said at the time.

This fall, the police in Aurora, Colo., accused a local woman of trying to profit off the deadly movie theater rampage by a gunman who killed 12 people. The woman told people that she was the caretaker for a little girl named Kadence, whose mother had died in the shooting. The police said the child was made up. The scam unraveled when a donor got a phone call from what seemed to be a woman imitating a child's voice.

When the government doled out disaster aid after Hurricane Katrina, scammers asked for money to rebuild houses they never lived in or to pay benefits for relatives who never existed.

The government later set up the National Center for Disaster Fraud to try to root out such scams in the federal relief programs administered after Hurricanes Katrina, Rita and Wilma. It has since expanded its mandate to other disasters.

The cases brought since then by the Justice Department sketch a colorful picture of fraud:

— A woman who filed for small-business disaster benefits after the 2010 Gulf Coast oil spill, even though she'd sold the business before the accident.

— A judge and a commissioner in Texas who, after Hurricane Ike, were accused of awarding debris removal contracts to a company in return for kickbacks. The judge also commandeered a 155-kilowatt generator meant for the county to power his convenience store, according to the government.

— A pastor who submitted inflated claims to a government-funded program that reimbursed groups sheltering Hurricane Katrina evacuees.

Bob Webster, spokesman for the NASAA, knows the sad pattern.

"We know cons try to cash in on headlines, and any who would even think about stooping to capitalize on the tragedy in Newtown are the lowest of the low," he said.

___

Rexrode reported from New York. Associated Press researcher Rhonda Shafner and writer Allen Breed contributed

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NRA breaks silence on 'horrific' massacre

Tasha Devoe, left, of Lawrence, Mass., joins a march to NRA headquarters in Washington on Dec. 17, 2012. (Manuel …The National Rifle Association on Tuesday broke its silence on last Friday's mass shooting at Sandy Hook Elementary School in Newtown, Conn., denouncing the "horrific and senseless murders" and vowing to "help make sure this never happens again."

Facing a fierce push for new restrictions on gun ownership in the tragedy’s aftermath, the group said it would hold "a major news conference" in Washington on Friday. It did not elaborate.

"The National Rifle Association of America is made up of four million moms and dads, sons and daughters—and we were shocked, saddened and heartbroken by the news of the horrific and senseless murders in Newtown," the organization said in a statement emailed to reporters.

"The NRA is prepared to offer meaningful contributions to help make sure this never happens again," it said.

In keeping with its past practice after other mass shootings, the NRA kept quiet after the killings of 20 children and six adults at the school, plus the gunman's mother. Gun control advocates, however, have ramped up calls for new restrictions to prevent such tragedies from occurring in the future. And President Barack Obama himself has called for a strong response to the massacre.

"Out of respect for the families, and as a matter of common decency, we have given time for mourning, prayer and a full investigation of the facts before commenting," the NRA said in its statement.

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Neighbor took six survivors into his home

NEWTOWN, Conn. (AP) — Gene Rosen had just finished feeding his cats and was heading from his home near Sandy Hook Elementary school to a diner Friday morning when he saw six small children sitting in a neat semicircle at the end of his driveway.

A school bus driver was standing over them, telling them things would be all right. It was about 9:30 a.m., and the children, he discovered, had just run from the school to escape a gunman.

"We can't go back to school," one little boy told Rosen. "Our teacher is dead. Mrs. Soto; we don't have a teacher."

Rosen, a 69-year-old retired psychologist, took the four girls and two boys into his home, and over the next few hours gave them toys, listened to their stories and called their frantic parents.

Rosen said he had heard the staccato sound of gunfire about 15 minutes earlier but dismissed it as an obnoxious hunter in the nearby woods.

"I had no idea what had happened," Rosen said. "I couldn't take that in."

He walked the children past his small goldfish pond with its running waterfall, and the garden he made with his two grandchildren, into the small yellow house he shares with his wife.

He ran upstairs and grabbed an armful of stuffed animals. He gave those to the children, along with some fruit juice, and sat with them as the two boys described seeing their teacher being shot.

Victoria Soto, 27, was a first-grade teacher killed when 20-year-old Adam Lanza burst into her classroom. It wasn't clear how the children escaped harm, but there have been reports that Soto hid some of her students from the approaching gunman. The six who turned up at Rosen's home did apparently have to run past her body to safety.

"They said he had a big gun and a little gun," said Rosen, who didn't want to discuss other details the children shared.

Rosen called the children's parents, using cellphone numbers obtained from the school bus company, and they came and retrieved their children.

One little girl, he said, spent the entire ordeal clutching a small stuffed Dalmatian to her chest and staring out the window looking for her mommy.

And one little boy brought them all a moment of levity.

"This little boy turns around, and composes himself, and he looks at me like he had just removed himself from the carnage and he says, 'Just saying, your house is very small,'" Rosen said. "I wanted to tell him, 'I love you. I love you.'"

Rosen said Sandy Hook had always been a place of joy for him. He taught his 8-year-old grandson to ride his bike in the school parking lot and took his 4-year-old granddaughter to use the swings.

"I thought today how life has changed, how that ground has been marred, how that school has been desecrated," he said.

He said it wasn't his training as a psychologist that helped him that day — it was being a grandparent.

A couple of hours after the last child left, a knock came on his door. It was a frantic mother who had heard that some children had taken refuge there. She was looking for her little boy.

"Her face looked frozen in terror," Rosen said, breaking down in tears.

"She thought maybe a miracle from God would have the child at my house," he said. Later, "I looked at the casualty list ... and his name was on it."

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Newtown residents seek solace in church and prepare to bury their dead

A couple leaves a morning service at Trinity Church not far from the Sandy Hook School on Sunday. (Getty)

NEWTOWN, Conn. -- Residents of this shell shocked community attended church services and prepared to bury their dead two days after a gunman mowed down more than two dozen people in one of the worst mass shootings in U.S. history.

President Barack Obama left the White House mid-afternoon Sunday to head to Newtown, where he was to meet with first responders and families of the 20 children and 6 adults who perished Friday at Sandy Hook School. Funeral directors across the state were lending their help in preparing the dead, including 20 children, for burial.

But the ritual of Sunday worship even turned chaotic for some residents. St. Rose of Lima Roman Catholic Church was evacuated during its noon mass after an unidentified man called in threats to the congregation.

At Newtown United Methodist Church, senior pastor Mel Kawakami said he's not sure he's ready to forgive the suspected shooter, identified by police as 20-year old Adam Lanza. Lanza allegedly shot and killed his mother in the home they shared before blasting into the school he once attended.

"I'm not sure I'm there yet. My heart is still broken," Kawakami told the packed congregation at  the 10 a.m. service. Pews were lined with Kleenex boxes in the church, which is located less than a half-mile from the school.

Before Rev. Kawakami's sermon, many parents dropped their children off on a lower floor to shield them from a discussion of the tragedy.

Prayers were offered for the victims and for an end to gun violence. One father asked that the congregation pray for his son's best friend, who died at the school.

The altar was lit with 28 candles, one for each of the dead. "Yes, even the shooter," Kawakami said.

Kawakami said the community might one day find forgiveness. Meanwhile, he said, "We have more to mourn, and children and adults to bury."

Funeral directors across the state were already at work helping the lone Newtown funeral home prepare the victims for burial.

Six Connecticut funeral directors have traveled to Newtown's Honan Funeral Home, a family-owned facility located two miles from the site of the shooting, to help coordinate with families of the deceased.

The Connecticut Funeral Director's Association, which has 220 members, is matching the funeral directors receiving bodies of the deceased with others who have offered support in the form of transportation, caskets and cosmetics, spokeswoman Laura Soll said.

Soll said offers for help have come from all corners—everything from Canadian funeral homes to a tent company offering to donate a tent for guests at the Honan location.

At St. Rose of Lima's early morning mass, signs saying "No Press" greeted churchgoers.

Some hugged each other in the parking lot before making their way into the church, pausing briefly at a table filled with at a table dotted with candles. Others paused, pointing to the crush of media camped along the side of the road.

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Police hope motive emerges from evidence in shooter's home

Conn. State police spokesman Lt. Paul Vance at Saturday morning's news conference. (Jason Sickles/Yahoo News)

NEWTOWN, CT - The Sandy Hook school principal and another staffer were killed after lunging at a gunman who forced his way inside to begin a deadly shooting spree, the regional school superintendent said Saturday.

The principal, Dawn Hochsprung, 47, and school psychologist Mary Sherlach, 56, died along with 4 other adults and 20 children in the second deadliest mass shooting in U.S. history. The alleged shooter, 20-year old Adam Lanza, was found dead at the scene, and his mother, Nancy Lanza, was discovered dead at their home.

Newtown school superintendent Janet Robinson told reporters that the two educators and other staff members had put themselves in harms way to protect children once it became clear the school was under siege.

"The teachers were really, really focused on saving their students," Robinson said.

Police on Saturday said evidence recovered at gunman Lanza's home may provide a motive for the massacre.

State police spokesman Lt. Paul Vance declined to provide specifics about the evidence but said, "we're hopeful it will paint a complete picture."

Authorities say Lanza  killed his mother at their home Friday morning before driving to Sandy Hook.

[Related: Follow the latest updates from our reporters in Newtown]

Armed with two semi-automatic pistols, Lanza rapidly sprayed bullets in hallways and classrooms. Lanza killed himself before police officers could reach him.

Lt. Vance said all the bodies were removed from the school overnight. A medical examiner is expected to release the names of the victims later today.

Police have assigned a trooper to support each victim's family in the days ahead. Vance asked reporters to respect the families' grief and privacy.

"This is an extremely heartbreaking thing for them to endure," Lt. Vance said.

Police were expected to release the names of the victims Saturday afternoon. Some names were already being disclosed by family members, including teachers Lauren Rousseau, 30, and Vicki Soto, 27.

It will likely take investigators two more days to process the school crime scene where it is believed Lanza fired as many as 100 rounds from his guns.

"It's going to be a slow, painstaking process," Lt. Vance said.

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20 children, 6 adults killed at Conn. school shooting

Twenty children died today when a heavily armed man invaded a Newtown,
Conn., elementary school and sprayed staff and students with bullets.

The gunman, identified as Adam Lanza, 20, was found dead in the school.

Lt. Paul Vance said 18 children died in the school and two more died
later in a hospital. Six adults were also slain, bringing the total to
26.

In addition to the casualties at the school, a body was also found in the shooter's home, officials said.

Among the dead was Lanza's mother, although it's not clear where she was killed.

In the early confusion surrounding the investigation, federal sources
initially identified the suspect as Adam's older brother Ryan Lanza, 24.
He is being questioned by police.

LIVE UPDATES: Newtown, Conn., School Shooting

Sources said the shooter was armed with a Glock semi automatic handgun
and a Sig Sauer semi automatic handgun, law enforcement sources told ABC
News. Additionally, .223 caliber shell casings--a rifle caliber--were
also found at the scene. He was wearing a bullet-proof vest when he
opened fire in the elementary school.

First grade teacher Kaitlin Roig, 29, locked her 14 students in a class
bathroom and listened to "tons of shooting" until police came to help.

"It was horrific," Roig said. "I thought we were going to die."

She said that the terrified kids were saying, "I just want Christmas…I don't want to die. I just want to have Christmas."

A tearful President Obama said there's "not a parent in America who doesn't feel the overwhelming grief that I do."

The president had to pause to compose himself after saying these were
"beautiful little kids between the ages of 5 and 10." As he continued
with his statement, Obama wiped away tears from each eye.

He has ordered flags flown as half staff.

The alert at the school ended when Vance announced, "The shooter is deceased inside the building. The public is not in danger."

The massacre prompted the town of Newtown to lock down all its schools
and draw SWAT teams to the school, authorities said today. Authorities
initially believed that there were two gunmen and were searching cars
around the school, but authorities do not appear to be looking for
another gunman.

It's unclear how many people have been shot, but 27 people, mostly
children, are dead, multiple federal and state sources tell ABC News.
That number could rise, officials said.

CLICK HERE for more photos from the scene.

It is the second worst mass shooting in U.S. history, exceeded only by
the Virginia Tech shooting in 2007 when 32 were killed before the
shooter turned the gun on himself. Today's carnage exceeds the 1999
Columbine High School shooting in which 13 died and 24 were injured.

The Newtown shooting comes three days after masked gunman Jacob Roberts
opened fire in a busy Oregon mall, killing two before turning the gun
on himself.

Today's shooting occurred at the Sandy Hook Elementary School, which
includes 450 students in grades K-4. The town is located about 12 miles
east of Danbury.

State Police received the first 911 call at 9:41 a.m. and immediately
began sending emergency units from the western part of the state.
Initial 911 calls stated that multiple students were trapped in a
classroom, possibly with a gunman, according to a Connecticut State
Police source.

Lt. Paul Vance said that on-duty and off-duty officers swarmed to the
school and quickly checked "every door, every crack, every crevice" in
the building looking for the gunman and evacuating children.

A photo from the scene shows a line of distressed children being led out of the school.

Three patients have been taken to Danbury Hospital, which is also on lockdown, according to the hospital's Facebook page.

"Out of abundance of caution and not because of any direct threat
Danbury Hospital is under lockdown," the statement said. "This allows us
simply to focus on the important work at hand."

Newtown Public School District secretary of superintendent Kathy June
said in a statement that the district's schools were locked down because
of the report of a shooting. "The district is taking preventive
measures by putting all schools in lockdown until we ensure the safety
of all students and staff," she said.

State police sent SWAT team units to Newtown.

All public and private schools in the town were on lockdown.

"We have increased our police presence at all Danbury Public Schools due
to the events in Newtown. Pray for the victims," Newtown Mayor Boughton
tweeted.

State emergency management officials said ambulances and other units were also en route and staging near the school.

A message on the school district website says that all afternoon
kindergarten is cancelled today and there will be no midday bus runs.

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Rice drops out of race for top State post

Susan Rice (Stephen Lam/Reuters)Susan Rice, the embattled U.S. ambassador for the U.N., withdrew her name on Thursday from consideration to be secretary of state.

"If nominated, I am now convinced that the confirmation process would be lengthy, disruptive and costly—to you and to our most pressing national and international priorities," Rice wrote in a letter to President Barack Obama, NBC News first reported.

Obama confirmed her withdrawal in a statement Thursday afternoon, saying, "While I deeply regret the unfair and misleading attacks on Susan Rice in recent weeks, her decision demonstrates the strength of her character, and an admirable commitment to rise above the politics of the moment to put our national interests first."

Talk of Rice being nominated to succeed Hillary Clinton stirred significant controversy due to Rice's role in the handling of the Sept. 11, 2012, attack on the U.S. Consulate in Benghazi, Libya.

Republicans accuse Rice of misleading the public about intelligence that indicated the attack was premeditated. (The White House has also been accused of ignoring requests for increased security at the embassy.)

Rice's withdrawal is a loss for the administration, which had staunchly defended Rice amid the criticism. It will be viewed as a win for Arizona Republican Sen. John McCain and other Republican senators who had vowed to block Rice's confirmation.

McCain spokesman Brian Rogers emailed Yahoo News to express that the senator "thanks Ambassador Rice for her service to the country and wishes her well. ... He will continue to seek all the facts about what happened before, during and after the attack on our consulate in Benghazi that killed four brave Americans."

Republican Sen. Lindsey Graham of South Carolina, another leading Rice detractor, declared in a statement on Thursday, "I respect Ambassador Rice's decision." Graham said Obama "has many talented people to choose from" to succeed Clinton.

Graham has accused the administration of stonewalling efforts to look into the Benghazi attack and vowed to keep "working diligently to get to the bottom of what happened."

Speculation regarding who will be chosen as the next secretary of state now shifts to Democratic Sen. John Kerry of Massachusetts.

Obama is expected to overhaul much of his foreign policy and national security teams for the coming term. Defense Secretary Leon Panetta is departing, the position of director of the CIA is open after the David Petraeus scandal, and Homeland Security Secretary Janet Napolitano is rumored to be looking to replace Attorney General Eric Holder.

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