This is a rush transcript from "Hannity," January 27, 2010. This copy may not be in its final form and may be updated.
SEAN HANNITY, HOST: We continue now with our live post-game coverage of the president's first State of the Union address. Joining me now with reaction is the former governor of Alaska, Fox News contributor Governor Palin. Governor how are you?
SARAH PALIN, FOX NEWS CONTRIBUTOR: I'm doing great, Sean thanks for letting me be here.
HANNITY: We appreciate you being here. We are glad to have you on board. First of all your initial reaction.
PALIN: I think that there was a lot of lecturing going on tonight versus inspiring the American people and independent politicians who were sitting there in the audience waiting to hear some acknowledgement that there has been a disconnect between the White House and the people who are expecting more from our government. More in terms of empowerment of the people not relying on government to meet all of our challenges but empowering our families, our small businesses to fix the problems that we are facing today.
HANNITY: Governor my take it was not as presidential as I would expect it to be. Let me explain by that. I thought it was extremely partisan. I thought he regurgitated all the old lines of old speeches. Double down on cap-and-tax, and on tax increases, more stimulus spending, a freeze but the freeze doesn't start for another year. What was your reaction to the tone specifically of the speech?
PALIN: Well again, not as inspiring as perhaps we're used to President Obama coming across as. But I think that's an indication still of that disconnect between the people and the White House. He not understanding that no we don't want to just chill a little bit and cool a little bit on his health care plan we want the thing killed because it is government take over of about 1/6 of our economy. We don't want to see that go forward so with an issue like that still with that disconnect.
I think that there was no way for him to come across as inspiring when he's still proposing those top down big government solutions to the challenges that we're facing. When the people want empowerment for our businesses, our families.
HANNITY: You know Governor I took some notes as the president was speaking. He talked about for example the influence, the outside influence of lobbyists. But he hired a bunch of them. He talked about quote to do our work openly. He promised C-SPAN for example, it was all behind closed doors. He said for example, we are going to eliminate earmarks. He signed all the earmarks. He talked about balancing budgets but he raised the debt, nearly quadrupled it. Is he out of touch in some way with his own policies?
PALIN: I believe so. And I think a lot of the fact checkers tonight are going to be quite busy as they run down the content of that speech and they are going to call him on some of these claims that he made tonight. For instance you bring up the lobbyist issue he's got at least 11 high powered lobbyist who are part of now his administration, help him make some calls and yet he claimed that lobbyists essentially aren't having a whole lot to do with policy. That's not entirely true. So fact-checkers are going to be busy tonight and tomorrow I think we are going to see a lot of the details come out.
HANNITY: All right. I want to show Iranian something, there was a moment in the speech tonight Governor where he spoke about campaign finance and the Supreme Court decision. Now we have an isolated view of Justice Alito. And you can watch his lips it is clear to me what he's saying. He's using the words "not true." Let's roll this tape and I want to get your take on this.
(BEGIN VIDEO CLIP)
OBAMA: Including foreign corporations to spend without limit in our election.
SUPREME COURT JUSTICE SAMUEL ALITO: Not true.
(END VIDEO CLIP)
HANNITY: Did you see that governor?
PALIN: I saw it, Sean. I tell you this is why people are disenchanted and are becoming more and more disengaged really from what their government is doing. Because when we see an issue like this, words spoken that may not be true, coming from our president and embarrassing our Supreme Court and not respecting the separation of powers, we have a problem. And that is illustrated there by that justice mouthing those words, not true.
Now one or the other, is being disingenuous here either our president in what he just claimed or the Supreme Court justice. I think that this is going to be a huge take away moment from the speech tonight.
HANNITY: I think it is going to be a huge take away moment. What did you think specifically when he brought up the issue of health care Governor? I would love to get your take on that. And more specifically, he almost sounded as if, we the American people, we're sort of out touch, we are not understanding him. He used the phrase it is a complex issue the longer it was debated the more skeptical people became. I take my share of blame for not explaining it to the American people. I'm thinking you explained it again and again and people rejected it. What was your take away?
PALIN: Bingo, exactly that. Ever since about August more and more Americans have paid more attention to what is in this health care bill and more Americans are becoming more concerned about what we see in there. So it hasn't been a matter of he not being able to explain his policy with government take over and mandation of health care, but Americans understanding what is in there not liking it and sending him that message via the three recent Republican sweeps in Virginia, New Jersey, Scott Brown's election too and the tea party movements, the town halls events, people sending that message to the president mainly health care being the focus on this, he not understanding that we don't want to see government takeover of 1/6 of our economy.
HANNITY: Let me ask you, I have to get in one national security question. He did not spend a lot of time on the speech when I printed out my version it was only 14 pages and only about 1, 1/2 pages max was used on the issue of national security. But he said at one time for America must always stand on the side of freedom and human dignity, Governor. I'm thinking except maybe in Iran when people are risking their lives and they are on the streets and Iran thumbs their nose at America. Did you have the same reaction or a different reaction?
PALIN: Only 10 percent of the speech being dedicated to the War on Terror and where we are with national security issues is quite concerning. Yes, Iran was a perfect place for him to start to press that reset button, if you will and say OK we are going to stand up for those who are craving democracy and freedom and we are going to speak out, the United States of America is going to speak out in support of those who desire this freedom. If he doesn't fulfill this as he just claimed tonight, then more and more people are going to say look Mr. President we cannot trust you, you have already broken so many promises don't go back on your word on this one.
HANNITY: All right. Governor we always appreciate having you. Thanks for being with us.
PALIN: Thank you.
— Watch "Hannity" weeknights at 9 p.m. ET!
Content and Programming Copyright 2010 Fox News Network, Inc. Copyright 2010 Roll Call, Inc. All materials herein are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of Roll Call. You may not alter or remove any trademark, copyright or other notice from copies of the content.