Updated

This is a RUSH transcript from "The O'Reilly Factor," July 23, 2015. This copy may not be in its final form and may be updated.
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O'REILLY: "Impact Segment" tonight. Donald Trump down on the southern border.

The Republican presidential contender traveled to Laredo, Texas at the invitation of some border patrol union folks. Of course, controversy follows Mr. Trump everywhere. The local chapter of the National Border Patrol Council which represents 18,000 agents was supposed to meet with Trump today but cancelled. However, the Donald got his point across.

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: I employ thousands and thousands of Hispanics. I love the people, the Latinos, I love the people. They are great. They are workers, they are fantastic people but they want -- and they want -- these are people who work -- they want legal immigration. They want to be legal. They don't want the illegal immigration with all of the tremendous amount of crime that already even today I'm hearing about. And people are saying oh, it's so dangerous what you are doing, Mr. Trump. It's so dangerous what you are doing. I have to do it. I have to do it.

(END VIDEO CLIP)

O'REILLY: Joining us now from Washington to react, Senator John McCain from Arizona.

First up, did you see my interview with Mr. Trump on Monday? Any thoughts on it?

SEN. JOHN MCCAIN (R), ARIZONA: No. Not really. Except that I would point out that very veteran service organization, especially people like the Veterans of Foreign Wars and the Concerned Veterans of America, and others, steadfastly reject his allegations about me and they are praising, of course, because the work that I have done on a range of veterans issues.

The latest being the Clay Hunt Suicide Prevention Act. There are 28 veterans who commit suicide every day, Bill. And we have got to address that along with the other.

O'REILLY: Yes, you sponsor that and I pointed that out. I wanted to know if I covered you fairly.

MCCAIN: You covered me fairly and I'm most proud of the way that my fellow POWs have come to my defense. I love them so much and I am so grateful.

O'REILLY: All right. We're putting this to bed now?

MCCAIN: Sure.

O'REILLY: I challenged him. You said what you said. And it's to bed. All right, now --

MCCAIN: Thank you.

O'REILLY: -- as you know, because you are a senator from Arizona, the border remains not secured. After all these years -- since Ronald Reagan's amnesty, I think it was 1986 -- all these years, and the Kate Steinle murder, you know, the guy came back six times. Six times -- drug addict, drug dealer - he's in, he is out.

All right, now, the American people want to know from you, Senator McCain, why the border? Why it remains unsecure. Why?

MCCAIN: Well, to start with Barack Obama, who promised border security and immigration reform would be top of his agenda the first two years in office. He had 60 votes in the Senate, overwhelming majority in the House, did not act. We did act in the United States Senate and that calls for $6.5 billion dollars to be spent on border security, hiring of 20,000 additional border patrol agents, 90 percent effective control of the border, and 100 percent situational awareness. And we can do it with technology. Unfortunately, the House of Representatives did not act.

Second of all, when Barack Obama issued these executive orders, clearly unconstitutionally, it inflamed everybody. It inflamed everybody.

And finally, could I say it's not just securing the border, it's also a thing called e-verify where anyone who comes for a job in the United States of America that does not have the proper documentation, and that employer hires them, that employer will pay a heavy penalty.

O'REILLY: Ok.

MCCAIN: That's got to be part of it.

O'REILLY: But you understand the frustration of the American voter.

MCCAIN: Sure.

O'REILLY: And why Mr. Trump's message is resonating in some quarters is that you guys can't get it done. You can't get it done. All right.

MCCAIN: I agree.

O'REILLY: After all of these decades it's still chaotic, it still isn't fair. People are being killed by criminal illegal aliens who are deported five times. And Americans are saying enough.

So a guy rises up in Trump and he said to me, look, I'm going to make the Mexicans pay for the wall, we are going to put this big wall up. And I said Mexico is not going to pay for it I said that to him. Ok.

But you can see why he is he resonating because people say look, we are tired of you pinheads in Washington. We are tired of this stuff. We want action. Now, is there anything wrong with that point of view? Those people who think that way?

MCCAIN: No. There is nothing wrong with that point of view. There are ranchers in the southern part of my state that every night people are crossing their property. There are guides on mountain tops in Arizona guiding drug dealers and human trafficking across our border as well. There is no doubt they are incredibly frustrated and that frustration is justified.

I am saying the solution is there. We passed it through the United States senate, and we need to act and act as rapidly as possible. So, the people in my state are more angry than anybody because we seem to get most of this trafficking.

O'REILLY: Ok.

MCCAIN: Or certainly a good percentage of it.

O'REILLY: Now, one of the reasons that there was a controversy involving you and Trump was your remark about "crazies" who are supporting Trump. Do you regret making that remark and, if not, who are the crazies? Who are they?

MCCAIN: It was meant in jest as I mentioned. I have town hall meetings all over Arizona and a guy stands up and says you are crazy. I view it as a term of endearment. Look, everybody in my state is entitled to their views. A lot of them are from other places and I enjoy the give and take with them.

If anybody was offended, then certainly I'm sorry, but the way -- we have a pretty rough and tumble game that we play in politics in Arizona and I love every minute of it.

O'REILLY: All right. And there are crazy people. There is no doubt about it but I wanted to get that clarified.

MCCAIN: Right, they call me crazy and they are entitled to that view.

O'REILLY: Me too.

MCCAIN: Maybe they're right.

O'REILLY: You and me, we are the poster boys for it. You know you once said that going on this program was worse than being in captivity in North Vietnam. Do you remember saying that to me?

MCCAIN: That was a joke.

O'REILLY: No, I know it was a joke.

MCCAIN: What I said was I hadn't had so much fun since my last interrogation.

O'REILLY: All right, Senator. We always appreciate you coming on -- thank you.

MCCAIN: Thank you, Bill.

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