This is a rush transcript from "On the Record," March 3, 2010. This copy may not be in its final form and may be updated.

GRETA VAN SUSTEREN, FOX NEWS HOST: The stimulus is supposed to create jobs. But in China? Earlier, Democratic senator Bob Casey went "On the Record."


VAN SUSTEREN: Senator, nice to see you, sir.

SEN. BOB CASEY, D - PENN.: Thanks, Greta. Good to be with you.

VAN SUSTEREN: Senator, I understand you're trying to at least put a temporary halt on a clean energy grant. Why?

CASEY: Well, there's a section of the recovery bill where dollars go to companies that are creating clean energy jobs. The problem we have now is that we've got lots and lots of companies that are benefiting, but unfortunately, too many of them are overseas in China and other places around the world.

We want to make a correction to the recovery bill so that we're creating American jobs with American tax dollars. And unfortunately, a lot of the money that's gone out already has gone to subsidize foreign firms. It's hard to believe we even have to talk about this. It's hard to even say it. But we've got to make changes to ensure that we're creating jobs here.

VAN SUSTEREN: How much of the stimulus money has gone out to a foreign government? Which country, as far as you can tell?

CASEY: Well, under this section of the recovery bill, according to a report that was released last year, almost 80 percent of $1.9 billion went to foreign companies (INAUDIBLE)

VAN SUSTEREN: Which is what, about $1.7 billion has gone to a foreign country?

CASEY: Lots of money, and far too much. I would be very concerned about this if it were a lot less than that, if it were 10 percent or 20 percent. We can't allow this to happen because you know, from covering this, I've been a strong supporter of the recovery bill. I think it's having a very positive impact on our economy.

But when there are problems with it, we have to be honest, point it out and correct it. We are asking the Treasury Department to stop funding under this section 1603 until we make this correction either by legislation or have the administration correct it.

VAN SUSTEREN: This $1.7 billion that has again to a foreign country in the stimulus, more than one country, or do you know what countries it's gone to?

CASEY: It has gone to a number of countries, but in particular we are seeing one project, a wind energy project in Texas, which benefits, a $450 million dollar investment, benefiting China, not the United States.

VAN SUSTEREN: I saw the press release that you issued along with some other Democratic senators attempting to stop this grant. I take it -- did you take it up privately first with the Treasury Department and the White House and this is step two because they didn't act?

CASEY: This report was a matter of public record as far back as November. I would have hoped they would have made that correction. We've had to prepare this legislation. But we of course want the Treasury Department to act on its own or act with some prompting.

VAN SUSTEREN: Why didn't it, though? This is a tremendous amount of money, and if the stimulus bill is to stimulate jobs here in this country and we find out this is going to China, which holds so much of our debt, now these Democratic senators have to go public with this, it sounds like someone is giving resistance to fixing it? You think this would be something fixed fast.

CASEY: You are right. And based upon what we heard today, there is still resistance. But we hope the Treasury Department and the administration would take a closer look to make these changes. We shouldn't have to legislate on this. They should correct this on their own. If they don't, we're going to have legislation to correct it.

VAN SUSTEREN: Why aren't they? This is a tremendous amount of money, and I'm suspicious if this is one grant, where so far all this money goes to foreign countries that supposed to stimulate jobs here, I'm suspicious there are others as well.

What is their resistance to fixing it immediately upon learning it last November or even earlier?

CASEY: I think you would have to ask them if get their answer. Part of it is institutional. When a government agency or a government program is up and running sometimes people within the federal government don't like to admit when there's a mistake made. Clearly a mistake was made here. Clearly there's a way to correct it.

VAN SUSTEREN: A lot of people on fire when they hear this, especially when the unemployment rate is as high as it is. It's terrific that some states are getting more jobs, but the fact is we have a huge debt to China, they are now getting our stimulus money. U.S. senators have to go public again the administration of the same party. It is rather extraordinary when it should have been done forthwith.

CASEY: It doesn't make any sense. As you know from covering things that happen in Washington, sometimes they don't make sense.

What I would hope after today the administration takes action on its own unilaterally or sits down with us to work this out. But if they don't, we're going to do everything we can to make the change. Short of or failing that, we're going to make sure our legislation passes.

I think it will have broad bipartisan support, especially at a time when unemployment is 10 percent across the country, 15 million people out of work. We can create these jobs. We've already created them in Pennsylvania and across the country. We can build anything.


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