• With: Sen. Rand Paul, R-Ky.

    This is a rush transcript from "Your World," July 31, 2013. This copy may not be in its final form and may be updated.

    (BEGIN VIDEO CLIP)

    GOV. CHRIS CHRISTIE, R-N.J.: I have got nothing personal against Senator Paul. If we disagree on certain issues, we disagree. You know, it's seeming his response seems that he has something personal against me. But that's OK. He can just get in line on that front.

    (END VIDEO CLIP)

    CAVUTO: And here we go.

    Welcome, everybody. I'm Neil Cavuto and this is "Your World." A very controversial world. My chat with conservative firebrand Mark Levin raising the stakes, as a rift between these top two Republicans raises a stink.

    Now, we have requests out to New Jersey Governor Christie and hope to get him on soon. We have had him on a number of times in the past, so hope springs eternal.

    To Kentucky Senator Rand Paul, who joins us right now.

    Senator, good to have you, no stranger to this dust-up. Do you think it's gone too far?

    SEN. RAND PAUL, R-KY.: Yes, I think it's time to dial it down.

    I think we have got enough Democrats to attack that maybe Republicans can quit attacking Republicans. I have said my peace on this. I don't like Republicans attacking Republicans, because it doesn't help to grow the party bigger. In the Northeast, the Republican Party is shrinking. It's basically on life support. So really dividing up the party, which is already shrinking in the Northeast, isn't good.

    I have tried to spend a lot of time talking about some libertarian ideas. And I don't like that, that being criticized, that that can't be part of the party because I think that's actually part of the way we grow the party. And I will continue to talk about privacy, about foreign aid, sending money to countries that are burning our flag.

    And that may not be popular with all Republicans in Washington, but it's very popular with Republicans out across the country.

    CAVUTO: But are you worried that it could be backfiring, Senator?

    And by that I mean there's a move afoot to sort of disinvite you from a funding gathering I believe in New York next month. It doesn't appear to be going anywhere, but a number of New York-related Republicans, including those who were pushing for Sandy aid, the same aid that you had referred to as part of a gimme-gimme mentality, are angry at you.

    PAUL: Wait, you know, some of this, Neil, comes from people who aren't really fully discussing the issue.

    I actually did support Sandy funding. I supported doing it one year at a time and paying for it by taking money from money that we're sending overseas in foreign aid. I was objecting to spending four years' worth all at once without sufficient oversight, without offsetting the cost by cutting elsewhere.

    So I was never against the funding. I was just against doing the funding without offsetting it with spending cuts.

    CAVUTO: You know, Senator, rifts come in both parties, but this one seems to be particularly pronounced and one may be preceded by John McCain and your run-ins with him in the past.

    And he told The New Republic when asked whether he would support you if you were the party's nominee in 2016 over Hillary Clinton, he said, it's going to be a tough choice.

    What did you make of that?

    (LAUGHTER)

    PAUL: I think there was a chuckle that supposedly went along with that interview.

    And, you know, John McCain and I are friends. We don't always agree on everything. We had a dust-up today on the floor over foreign aid because I think it doesn't help our country to send money to Egypt, particularly when we have cities like Detroit and Chicago decaying in our country, that I don't think we have money to be sending overseas.

    And so I offered to try to obey the law that says when a military coup happens, you have to stop funding, that then that money could be used for some bridge projects in our country and to help infrastructure when we desperately need it.

    And so we have a disagreement on that. That doesn't mean I don't respect John McCain as a war hero. And I try to keep things on a less personal way, less personal kind of a battle. And I think with Governor Christie, it's gotten a little too personal, so we're ready to kiss and make up.

    CAVUTO: All right, it doesn't look at this point, sir, like he is. And the gimme-gimme thing I guess is what stuck in his craw.

    This was yesterday. And you have responded in a way to this since, but I do want to you hear the full comment from Governor Christie from yesterday and your response to it.

    Governor Christie.

    (BEGIN VIDEO CLIP)

    CHRISTIE: If Senator Paul wants to start looking at where he's going to cut spending to afford defense, maybe he should start looking at cutting the pork barrel spending that he brings home to Kentucky at $1.51 for every $1, and not look at New Jersey, where we get 61 cents for every dollar.

    So, maybe Senator Paul could, you know, deal with that when he's trying to deal with the reduction of spending on the federal side. But I doubt he would, because most Washington politicians only care about bringing home the bacon so that they can get re-elected.

    (END VIDEO CLIP)

    CAVUTO: What did you think of that?

    PAUL: Well, it's just not true. I don't vote to bring home any bacon, because I told the people of Kentucky when I ran for office there wasn't any money up here and I would try to vote to keep more of their money in Kentucky by lowering their taxes, but I wasn't bringing anything home, because we were $1 trillion short.

    Governor Christie can't point to any votes that I have ever voted to bring -- quote -- "pork barrel projects" to any state. I do work to try to bring money home from overseas and use it here at home, but really it's just not accurate. I would probably say I'm the most fiscally conservative or not one of the most fiscally conservative members of Congress. So it really just kind of doesn't stick or make any sense.

    CAVUTO: Well, I think what he was referring in the general sense are the states, sir, that New Jersey spends roughly $38.3 billion in taxes that go to Washington, and gets not nearly any of that back. In the case of Kentucky, he said $26.5 billion, and you get more than that back.

    (CROSSTALK)

    CAVUTO: What do you say?