The following is a rush transcript of the June 26, 2011 edition of "Fox News Sunday With Chris Wallace." This copy may not be in its final form and may be updated.

CHRIS WALLACE, ANCHOR: I'm Chris Wallace.

Suddenly, she's the Republican presidential candidate getting the most buzz -- and a new poll out today shows it.

A Tea Party favorite and a staunch social conservative, Congresswoman Michele Bachmann, is rising in the polls. Today, we sit down with her as we continue our series, "2012: One-on-One."

Then, with the debt deadline fast approaching, high-level talks collapsed. We'll find out what happens next when we talk with one of the Republicans who walked out, Senator Jon Kyl. It's a "Fox News Sunday" exclusive.

Also, the president lays out his plan to pull troops from Pakistan. As Congress challenges the commander-in-chief over Libya. We'll ask our Sunday group about both conflicts.

(BEGIN VIDEO CLIP)

JON STEWART, "DAILY SHOW": Not because I have an ideological --

(END VIDEO CLIP)

WALLACE: And our heated exchange last week with the "Daily Show's" Jon Stewart lit up the Internet. Today, we set the record straight.

All right now on "Fox News Sunday."

(MUSIC)

WALLACE: And hello again from Fox News in Washington.

Tomorrow, the rising star in Republican presidential politics Michele Bachmann officially opens her campaign in her hometown of Waterloo, Iowa. But, first, she sits down with us for a "2012: One-on-One" interview.

And, Congresswoman, welcome back to "Fox News Sunday."

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

WALLACE: You have taken off since the New Hampshire debate. And the new Iowa poll out today from The Des Moines Register, it shows exactly that. Let's put it up on the screen.

In the survey of likely Republican caucus-goers, Mitt Romney is first with 23 percent. But right there with 22 percent. And all the others, as you can see, are far behind.

How do account for it? Why are you suddenly a frontrunner?

BACHMANN: Well, part of it is because I was born Iowa. In Iowa, I have a distinct advantage there, I think. And also, I think, since the debate, people have paid attention and they've recognized that I am very serious about what I want to do, because the country is on the wrong track. My goal is to turn the economy around and have jobs created. People recognize I'm serious.

WALLACE: Well, I mean, everybody would say that, both Republican and Democrat.

Let's take an example. You and Romney, according to that poll, are out front. What's the choice for Republican voters between Mitt Romney and Michele Bachmann?

BACHMANN: I think what people know about me is that I do what I say and I say what mean. I am a fighter for the cause. As long as I've been in Washington, D.C., I have taken that voice of the people who sent me here from Minnesota, from Iowa, very common sense voice. And it has finally been heard now in the halls of Congress.

My goal, Chris, is to take that voice to the White House where it hasn't been heard for a long time. And I think people recognize that I'm very sincere in what I say. And I will fight, whether it means taking on Washington, even sometimes my own party. I'm happy to do that because we have to turn things around.

WALLACE: By implication, are you suggesting that Mitt Romney not sincere?

BACHMANN: What I'm talking about is what I'm going to do as president of the United States. And in the course this campaign, I look forward to getting to know more people and explaining more about our plan.

WALLACE: All right. We're going to talk about the other candidates a little bit later.

But let me ask you about yourself. With the spotlight comes new scrutiny. The Los Angeles Times has a story out today that says for all your talk of being a fiscal hawk, that, in fact, you have gone after federal and government -- excuse me, state government money over the years, both personally and professionally. And let's it up on the screen.

A counseling clinic -- excuse me -- run by your husband got almost $30,000 in state federal funds. A farm, in which you are a partner, got almost $260,000 in federal subsidies. And over the years, you sought more than $60 million in the state earmarks and more than $3.7 million in federal earmarks.

Question -- that's a fiscal hawk?

BACHMANN: Well, let's go through them. First of all, the money that went to the clinic was actually training money for employees. The clinic did not get the money. And my husband and I did not get the money either. That's mental health training money that went to employees.

Number two, regarding the farm, the farm is my father-in-law's farm. It's not my husband and my farm. It's my father-in-law's farm. And my husband and I have never gotten a penny of money from the farm.

Regarding the earmarks, I believe the right place to build projects is in the states and the states have to build roads and bridges. And I don't apologize for building roads and bridges.

WALLACE: So, you're pro-earmark?

BACHMANN: No. During my first year -- during my first term in Congress, I signed a pledge that I will take no more earmarks and I've been faithful to that pledge.

WALLACE: In terms of the money -- and, obviously, I don't know the details nearly as well as you do about the clinic that's run by your husband. If you say money is going to employees, that -- I mean, if he runs the clinic, that would seem to be benefiting you guys.

BACHMANN: This --

WALLACE: And to the degree that you are a partner in a farm, federal subsidiaries would seem to benefit the farm.

BACHMANN: Actually, it did not. It actually took away from the clinic, because these were training hours where employees were not able to bring more income in. This is one-time training money that came in from the federal government. And it certainly didn't help our clinic. It was something that was additional training to help employees.