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This is a RUSH transcript from "The O'Reilly Factor," October 27, 2014. This copy may not be in its final form and may be updated.
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O'REILLY: "Hume Zone" segment tonight the annual Waste Book Project has been released by Senator Tom Coburn a Republican from Oklahoma. Each year government raises spotlight on that report. Leading the outrage this year $19 million in vacation funding for government workers, about a third of whom will put on administrative leave for disciplinary reasons. Some of them got arrested. But they still got their vacation money. $1 billion to the Pentagon to destroy; $16 billion worth of unused ammunition; $856,000 to train mountain lions to use a treadmill; $387,000 to study the effects of massage on white rabbits and $50,000 for swimming lessons for sea monkeys.

Joining us from Washington, Fox News senior political analyst Brit Hume. You know what? I don't think it matters anymore, Brit. With all waste, $17 trillion debt the federal government -- the people are numb. I don't think they care anymore.

BRIT HUME, FOX NEWS SENIOR POLITICAL ANALYST: They don't want those sea monkeys to drown, Bill.

O'REILLY: That's true. And "White Rabbit" was a song by Grace (inaudible) -- I think there is a bunch of pills being taken to allocate that much money for massage but maybe I'm wrong.

HUM: You know the headline item the first one on that list about those employees on paid E: leave that is a system that I think is completely out of control. It's averaging about 20,000 a year; 20,000 employees a year over the past three years. They put them on paid leave while they adjudicate their cases and then it takes them forever to deal with their cases.

O'REILLY: Sure.

HUME: In the meantime they receive pay. They can't work. Many of them may be innocent but they can't do any work anyway. So it's just a total loss to the government. It's one of these systems that has been going on like this for years. Nobody seems able to fix it. It's out of control and it's one of the reasons why people are so discouraged with government.

O'REILLY: You know but it is to the point now, and this goes to the "Talking Points" in the Juan and Mary Katharine segment where the American people have absolutely no confidence in their leadership at all. None -- zero. So they are voting ideology, they're voting pie in the sky theory or they're not voting at all and staying home and not caring. That's exactly where we are.

HUME: You know, Bill, President George W. Bush may still be in low repute with the public although his ratings have recovered to some considerable extent. But the one thing that happened after 9/11 was there was a genuine sense of alarm and urgency and priority in the federal government, you know, a new department was created. The FBI was repurposed the CIA mounted a big operation in Afghanistan.

A lot of things happened in response to that and one had the sense that it really was all hands on deck in that administration. And the President never stopped being preoccupied to the exclusion of many other issues with that one issue the nation's security against a terrorist threat.

President Obama I think in some ways feels that President Bush made a lot of mistakes and did it all wrong and he in his very cool approach in staying outside the fray in a lot of Middle East conflicts and so forth was going to do better. It does not seem to have worked out that way although there has been nothing on the scale of 9/11.

But this latest business, Bill, with ISIS not only, you know, killing some Americans over there, but seemingly able to inspire nut cases here to act is a little frightening. Because if they can do that we've got a problem such as we've never seen before.

O'REILLY: Well -- and then the question comes back to President Obama being alerted to the situation. And not doing anything for eight months as this group formed, trained, recruited, nothing was done.

HUME: Right but --

O'REILLY: The same thing with Ebola. All right? West African thing broke out, World Health Organization, Doctors without Borders -- here, no preparations, none. No preparation, no thinking ahead, nothing.

HUME: Well I think -- I think there were some preparations in place but it turned out that they were not good enough. Things have happened that were not supposed to happen.

O'REILLY: No, no I mean about entry to the country -- entry to the country, screening at the airports. Who gets in, who gets out -- nothing. No thinking ahead at all -- zero.

HUME: Yes all of those things, all of those things have been done in reaction to things that weren't supposed to happen.

O'REILLY: Right, way behind the curve.

HUME: Which is -- which is why I think the reaction in this country and to some extent the news media may seem disproportionate to the number of cases we've had. But we have had -- what we have had is a couple of cases here and a number of other -- and then a number of cases of government assurances turning out not to be correct which I think furthers the sense of alarm that people have.

O'REILLY: Well I think you can separate the two issues anybody who panics and thinks they are going to get Ebola they are a nut. All right? You are not going to get Ebola. And I have said that more than a few times on this program.

However, the fact that your government -- all right -- whom you elect and pay taxes for protection, for competency, just fails on almost every single thing. Criminal illegal aliens they are not putting them in jail even though it's a felony. They are not prosecuting them. They're kicking them up, they are sending them back and they know they can come any time they want. And how many dead cops do we have to have? That's what it is.

HUME: That's right.

O'REILLY: All right. Brit, thanks.

HUME: You bet.

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