The following is a rush transcript of the December 19, 2010, 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 and this is "Fox News Sunday."

Crunch time on Capitol Hill -- with time running out on the lame duck Congress, what happens with the new START treaty, "don't ask, don't tell," and other key legislation? We'll get answers from two Senate leaders, Democrat Dick Durbin and Republican Jon Kyl.

Then, a Virginia judge rules a key part of health care reform is unconstitutional. Where does the legal battle go next? We'll ask Virginia governor Bob McDonnell.

Plus, as the books close on the 111th Congress, we'll ask our Sunday group who are the political winners and losers.

And our Power Player of the Week honors our nation's fallen heroes during the holiday season, all right now on "Fox News Sunday."

And hello again from Fox News in Washington. From extending tax cuts to repeal of "don't ask, don't tell," this lame duck session of Congress is doing a lot in a hurry. The Senate is working this weekend, and Fox News correspondent Jim Angle has the latest on where they stand in both the House and Senate, with lawmakers anxious to get home for the holidays.

Jim?

CORRESPONDENT JIM ANGLE: Good morning, Chris. The Senate made history this weekend by repealing "don't ask, don't tell," so that those who are openly gay can now serve in the military.

(BEGIN VIDEO CLIP)

SEN. JOE LIEBERMAN, I-CONN.: ... and repealing "don't ask, don't tell" is the right thing to do whether you're liberal, conservative, Democrat, or Republican. It's consistent with the best American values.

(END VIDEO CLIP)

ANGLE: But a former military man was not persuaded.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN, R-ARIZ.: I've heard from thousands -- thousands -- of active duty and retired military personnel. I've heard from them. And they're saying, "Senator McCain, it isn't broke and don't fix it."

(END VIDEO CLIP)

ANGLE: Meanwhile, Republicans stopped the DREAM Act which would have allowed children who illegally entered the country with their parents to qualify for citizenship. Opponents see it as a form of amnesty and want better border enforcement first.

Democrats vowed to keep trying, noting it helps Democrats win more Hispanic votes than Republicans.

(BEGIN VIDEO CLIP)

SEN. CHARLES SCHUMER, D-N.Y.: I don't think any political party can succeed writing off such a large percentage of America. That's why.

(END VIDEO CLIP)

ANGLE: The START treaty limiting the nuclear arsenals of the U.S. and Russia remains intact despite its efforts -- despite efforts to amend it. President Obama sent a letter to Senate leaders urging its approval, and it's moving toward a final vote probably early next week.

The Senate also passed a temporary measure to keep the government running until Tuesday when the House returns. The Senate's working on one to keep federal spending at current levels -- end of February when the new Congress could tackle federal spending and a fresh start.

Chris?

WALLACE: Jim Angle reporting from the capital.

Jim, thanks for that.

Joining us now, two Senate leaders, the number two Democrat, Dick Durbin of Illinois, and his Republican counterpart, Jon Kyl of Arizona.

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

SEN. JON KYL, R-ARIZ.: Thank you, Chris.

WALLACE: Senators, before we talk about issues that have gotten a lot of attention, I want to ask you about one that hasn't, and let me begin with you, Senator Kyl.

Will you vote this week for the 9/11 bill that would guarantee health care for the first responders who went to Ground Zero?

KYL: I don't know if that bill is going to come before us, but Dick tells me just a moment ago that he thinks that it will. First question is, is it amendable, or is it a take it or leave it proposition? The bill hasn't been through committee. There are problems with it.

And I think the first thing Republicans will ask is do we have a chance to fix any problems that may exist with it. And it's a lot of money, and so I -- my early response is that I am skeptical about that bill.

WALLACE: Senator Durbin, Republicans in addition to Senator Kyl say -- Republican critics say that you're creating a $7 billion entitlement, and that the way you pay for it is a corporate tax increase.

SEN. DICK DURBIN, D-ILL.: Chris, I can tell you that Senators Kirsten Gillibrand and Chuck Schumer have been working nonstop for the last several weeks with Republicans to try to find the best way to approach this. These first responders literally risked their lives when they went to Ground Zero. They came from all over the United States. And now many of them are struggling with health problems that are clearly directly related to that experience. To turn our backs on these brave people is the wrong thing to do.

Will it cost money? Yes. Is it the right thing to do? Yes. We've got to find a way to fund it that's acceptable to Republicans and Democrats.

WALLACE: Well, but let me ask you about that, Senator Durbin. If this 9/11 bill is so important, why is it that the Democratic- controlled Senate never held a vote on this bill until the lame duck session and that President Obama, the best we can tell, has never said a word about this bill in public?

DURBIN: I can't tell you where the White House stands. I hope they support it. I will just tell you this. This is like an airport that has a runway closed down. We have aircraft stacked up trying to land.We have bills stacked up over the Senate because of the nonstop filibusters that we faced this year.