The following is a rush transcript of the May 1, 2011 edition of "Fox News Sunday With Chris Wallace." This copy may not be in its final form and may be updated.

CHRIS WALLACE, HOST: I'm Chris Wallace.

Libyan Leader Muammar Qaddafi escapes a NATO missile attack, but his family doesn't. The latest next on "Fox News Sunday."

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WALLACE: A Tea Party favorite considers a run for the White House. But will Congresswoman Michele Bachmann take the next step? We'll ask her about the budget, Libya, and what she plans for 2012. Michele Bachmann -- a "Fox News Sunday" exclusive.

Then, will Congress raise the debt limit or will Uncle Sam default? We'll talk with two key players: Democrat Kent Conrad, chairman of the Senate Budget Committee, and Republican Lindsey Graham. Conrad and Graham -- only on "Fox News Sunday."

Plus, with the first Republican presidential debate just days away, we'll look at the GOP field and whether Donald Trump blew up a possible campaign with a series of F-bombs.

All right now on "Fox News Sunday."

And hello again from Fox News in Washington.

Before we talk with our guests, there was a deadly NATO airstrike in Tripoli last knight. The Libyan government says Muammar Qaddafi was not hurt. But one of his sons and three young grandchildren were reportedly killed. NATO calls that report unconfirmed and says it does not target individuals.

Fox News correspondent Dominic Di-Natale has the latest from Benghazi -- Dominic.

DOMINIC DI-NATALE, FOX NEWS CORRESPONDENT: Chris, the NATO strike was at the compound of Colonel Qaddafi in Tripoli, the so- called Bab al-Aziziyah. NATO says it wasn't targeting any specific individuals. It was just targeting the command centers there.

There is no independent evidence or proof yet that indeed Colonel Qaddafi's youngest son, Saif Al-Arab, is indeed dead or indeed his three children were killed, as was claimed by the government spokesman last night. Journalists were taken to the scene and some reporters, they did see blood actually the site and an unexploded missile which appears to have come from NATO forces. But again, no confirmation that actually it is indeed that.

And many people believe here now that, actually, it's just another effort by Qaddafi to gain sympathy internationally, alleging that civilians have been killed.

Some details about Saif. He knew he was a student in Munich. And, apparently, he was brought back just before the uprising gone very serious. No one has actually seen him. And so, people here are actually doubting whether in fact he really has been killed.

So, Chris, details yet to be confirmed. But people are very skeptical about the news. Back to you.

WALLACE: Dominic Di-Natale reporting from Libya -- Dominic, thanks for that.

With the first Republican presidential debate to be shown on here FOX News Channel only four days away, the field is far from settled. One potential candidate who enjoys strong support in the Tea Party joins us now.

Congressman Michele Bachmann, welcome back to "Fox News Sunday."

REP. MICHELE BACHMANN, R-MINN.: Thank you, Chris.

WALLACE: Let start with the budget, because you want to go even farther than House Budget Chairman Paul Ryan. You voted for the Republican Study Committee plan which would cut spending by $3 trillion more over the next 10 years and balance the budget by 2020, not 2040, as Paul Ryan does.

Let's take a look, though, at some of the big differences. You want to cut $700 billion more than Ryan from Medicaid. You want to raise the Social Security retirement age for people who are now 59. And you would change Medicare to a voucher system for those who are now 59.

Question -- Paul Ryan doesn't go far enough?

BACHMANN: Well, remember, both Paul Ryan's budget and the Republican Study Committee budget changed the trajectory that we're on. We are on a trajectory of failure right now. So, both Paul Ryan and the Republican Study Committee were making very good responsible choices, they're trying to get America's house to balance. That's what we have to do.

WALLACE: But, if I may, you're saying let's go even further, faster than Paul Ryan?

BACHMANN: Well, remember again, what both of those bills are. They aren't pieces of legislation. They're aspirational documents, which means these are goals that we're trying to come toward.

And one thing that I have heard all across the United States, people want us to get our financial house in order. They recognize we may not have 26 years to get our financial house in order. We may need to do it sooner.

And so, people want to us get serious. People who have been doing this in their own lives and with their own businesses don't understand why Washington is taking so long to get our house in order.

WALLACE: But I just wanted to make it clear -- you stand by your vote for the Republican Study Committee plan. There is nothing in there that you say would go too far?

BACHMANN: Well, remember, what -- again, this is an aspirational document. It's not legislation. It may --

WALLACE: But would you support all of those things we just talked about?

BACHMANN: What I'm saying with that vote is that we have to make decisions. We aren't saying that every single decision that's in that bill, or aspirational document, will be the final result. But what we are saying is we have a conviction, those of us in the Republican Study Committee, those of us who supported Paul Ryan that we thank them and applaud them, that they want to get in the game and they want to make sure that we don't go down in flames with our economy.

WALLACE: Let me ask you about one specific -- and it may be the most controversial in both plans. The nonpartisan Congressional Budget Office says that under Medicare premium support, which both plans would have, seniors would bear a much larger share of their health care costs, than they would under the current plan.

What do you tell people nearing retirement who say I can't afford to pay more of my own health care costs out of pocket? Which is what the Ryan and the Republican Study Committee plans would do.

BACHMANN: And I understand that. I put an asterisk on my support and I put a blog posting up that said just as much. That is my area of concern. I support these bills with that proviso, because there are a number of people across the United States who have exactly expressed the fear that you just mentioned.

I think that's what we need to do with Medicare. It isn't that we are saying that we don't want people to have the health care. It's -- will there be a better way to fund it?

I think there is a better way than the way that the federal government is currently funding the program. Various ideas were put out on the table. Even Paul Ryan said he was open to tweaking his position that he has staked out.

One position that I'm concerned about is shifting the cost burden to senior citizens. Seniors are saying, "Look, I'm not in a position to be able to handle that." I also share that real fear. That's why I put the asterisk out there.