This is a rush transcript from "Hannity," July 9, 2019. This copy may not be in its final form and may be updated.

SEAN HANNITY, HOST: All right. Welcome to “Hannity.”

And breaking tonight, the investigation into the deep state's abuse of power has now come full circle, finally. Fox News tonight can confirm, Christopher Steele, the former MI-6 agent, who created the dirty Clinton bought and paid for Russian dossier was, in fact, grilled by federal prosecutors in June.

Now, the interview with Steele reportedly lasted over 15 hours. It was conducted by lawyers that were working for the DOJ's inspector general, that's Michael Horowitz. This is one of two reasons that the I.G. report is delayed. The other being key witnesses now at the last minute have finally decided to cooperate.

This is going to get very interesting but make no mistake about it, a crucial development in the I.G.'s investigation into FISA abuse. That would be James Comey, Sally Yates, Andrew McCabe, and, yes, even Rod Rosenstein should be very worried tonight.

We know for a fact that Steele's dirty dossier, bought and paid for by Hillary Clinton, was unverified as a matter of fact, unverifiable. Full of salacious lies, even Christopher Steele himself previously admitted under oath he had no idea whether any of the contents were true or not. Now, we know "The New York Times" now suggesting that that dossier, Russian dossier, was full of Russian misinformation from the get-go to influence the 2016 elections and more.

Now, Robert Mueller, trying understand, maybe we'll find out next Wednesday, why did you end your team have time for FARA violations, loan applications from years gone by? Taxi medallions, taxes from years gone by? How did you possibly ignore Hillary Clinton's bought and paid for Russian lies used to get a warrant to spy on the Trump campaign, the Trump transition, and the Trump presidency?

Of course, we also know Christopher Steele hated Donald Trump and he was being paid a ton of money -- lets he come he is being paid by the Clinton campaign, the DNC, the FBI, and some oligarchs. Good gig if he can get it. You paid -- four people paying you for lies.

So, Steele spread his B.S., anti-Trump rumors to anyone and everyone who would listen, including high-level officials in the FBI, the DOJ, Obama's State Department, the intel community, and we now know multiple media outlets. Even after he was fired for lying and leaking by the FBI, he was still using Bruce Ohr to funnel more lies this time to Mueller and his team of witch hunters. By the way, did Mueller use any of this information? Great question for next Wednesday.

Now, because of Steele's rampant bias, conflicts of interest, and blatant inaccuracies in his so-called research, well, now, multiple serious red flags were raised by officials at the FBI, the State Department, and many, many others.

That did not seem to matter to James Comey, the super patriots. He used his phony Russian dossier, filled with these lies, as the basis for the FISA warrant application. That's right, to spy on the Trump campaign. The evidence was true and accurate, he swore that, I am told at the top of the FISA applications as "verified." But we know it was nothing but.

Anyway, joining us now tonight with so much more on Steele's time in the hot seat, our own Catherine Herridge.

Catherine, one thing that stands out is if he testified 15 hours, we know in an interrogatory under oath under the threat of perjury, he went on the record saying he didn't know if anybody was true.

CATHERINE HERRIDGE, CORRESPONDENT: Well, that's right, Sean, good evening.

Based on our reporting, the former British spy Christopher Steele was concerned he would get, quote, thrown under the bus in the inspector general's report and the appointment of U.S. attorney John Durham to investigate the origins of the Russia probe ramped up the pressure on Steele to a cooperate.

Fox News was first to report that a key witness outside the FBI and Justice Department had agreed to talk with the Inspector General Michael Horowitz at the 11th hour and that it now appears to be Steele. "Reuters" broke new details this morning that Steele was interviewed in the U.K. in June by three lawyers from the inspector general's office and as we reported on your show last night, these late-breaking developments required some witnesses to be re-interviewed to deconflict like their accounts.

Citing another potentially significant detail that Steele was apparently interviewed twice by investigators working for special counsel Robert Mueller in September 2017. But the nearly 500-page report makes no direct reference to the so-called Steele dossier used to secure the surveillance warrant for Trump campaign aide. The Mueller report called the dossier instead Steele reporting, or Steele reports, which has the effect of minimizing the fact that Democrats paid for the opposition research used by the FBI and DOJ to secure that surveillance warrant in October 2016 and then they used it again to secure multiple renewals, Sean.

HANNITY: Unbelievable. And now we know why the inspector general has been delayed, interviewing Steele, these other people coming forward, as per your report last night.

Great work as always, Catherine Herridge in Washington tonight.

HERRIDGE: You're welcome, Sean.

HANNITY: Now, it has been said, absolute power corrupts absolutely. Now, nowhere is this more obvious than the Russian witch hunt. Bob Mueller's merry band of Democratic donors, they were given a very broad mandate and platform and tremendous power to investigate all things Donald Trump and Russian interference.

And while they found no collusion, no conspiracy, no chargeable obstruction, they did manage to wreck the lives of multiple people that were associated with the president, of course, with strong arm tactics that should make every single American concerns -- if you care about constitutional and civil liberties.

By the way, not even war hero, Lieutenant General Michael Flynn, 33 years of service, he was not spared either. The combat vet fell victim to what was a perjury trap. McCabe, Comey bragging about it.

He and members of his family were threatened with significant prison time. His screws were turned in the hopes that he would sing or compose as Judge Ellis once said, and, of course, in the process, mounting legal bills, wrecked his family finances. He had to sell his house, he ultimately agreed to plea guilty to lie to the FBI and the FBI did not think he lied. He did it to save his family and his son in particular.

But, tonight, thanks to investigative reporter Sara Carter, we are learning some damning new information about Flynn's plea deal and according to a brand new legal counsel, the ever so powerful and smart Sidney Powell, persecutors actually wanted Flynn to lie under oath against his former business partner in a case surrounding again a FARA violation.

A recent defense filing states, quote: The prosecutors have been adamant that Mr. Flynn testified, that he authorized the filing of the FARA form knowing and intending that it contained false statements. Mr. Flynn cannot give that testimony because it's not true.

According to Sara Carter's reporting, because Flynn is refusing to give the testimony they are demanding that he says is not true, federal prosecutors are now planning to portray Flynn as a coconspirator in the case. What does that mean for Lieutenant General Flynn tonight?

Here now with the full report, Fox News investigative reporter Sara Carter.

You know, what is so unbelievable about FARA violations were never a big deal. You know, Mueller and his team, they ignored the Russian dossier, which we know was spread before the election to influence the American voters, "Washington Post", David Corn, Michael Isikoff. Not one bit of information on the paid for Russian lies. That became also the basis for the FISA applications.

SARA CARTER, CONTRIBUTOR: That's so true, Sean. And this is so important about what Sidney Powell put in her brief, which by the way was unsealed by the judge in the Eastern District of Virginia just today. What's important about it is that we learned so much more about how they were targeting Michael Flynn, from the very beginning.

We learned that David Laufman, who was the head of the National Security Division of the Department of Justice, himself, forced Flynn, forced Flynn to sign the FARA. Not only did Flynn hire attorneys who are experts in the FARA, which is the Foreign Agents Registration Act, they hired Robert Kelner, who was one of the top attorneys in Washington, D.C. But he was also with Flynn while they signed this FARA. They look at it in detail, according to the brief, that every part of that FARA application was looked at in detail before Flynn assigned it. Flynn signed off on the FARA, everything was fine.

And now, even though they have been calling him a cooperating witness, the entire time that they've been dealing with Bijan Rafiekian, which was his former business partner, they called Flynn a cooperating witness. Now, they want to call him a coconspirator.

Just because, as you said, he decided and said, I can't lie. When I signed this FARA, I believe everything was absolutely credible, everything was absolutely accurate. You can't ask me to do that.

And the fact that he did not do that, then the prosecutors turned the screws on him again, according to sources, and according to the brief and said, no, well, since you're not going to do what we want you to do, you are now a coconspirator in the case.

I think this is really significant because it plays into what's been happening from the very beginning with Robert Mueller's team.

HANNITY: You know, think of what Judge Ellis said at the beginning of the first trial of Paul Manafort. He said, we know this is -- you don't care about his taxes from years gone by. We know what this is about. You want to put the screws to Paul Manafort so he'll either sing or compose.

Compose being lie, say what you want him to say. So you can get Donald Trump.

And with that said, he started the case.

CARTER: Well, that's it. And one very important point about this, Sean, that a lot of people don't understand, normally FARAs aren't prosecuted, you're right. But more than that, is that when they receive -- example -- an issue from a FARA office to file a FARA, it's very simple, it's very easy to fill out.

According sources that I've spoken to, Flynn's FARA was so extraordinarily complicated. It was almost as if they had crafted the FARA to try to corner him into, say, making a statement that wouldn't be correct. So, that's something that they are looking into as well.

Now, the judge has not decided yet whether or not to allow the government to call him a coconspirator, so the still has not been decided. It's expected to be decided soon.

HANNITY: All right. Sara Carter, investigative reporter, great work tonight.

CARTER: Thanks.

HANNITY: And we are hoping that General Flynn gets justice. Something really wrong with a process where you are offering someone a thing of value -- their freedom -- if you just say what we want, even though what we want is not true. We're going to have more coming up later in the program.

Also exclusive new details from Fox News contributor, former Congressman Jason Chaffetz tonight on the status of the inspector general's report. His sources telling him that Chaffetz has learned that the reports filing has in fact been delayed as the DOJ is sorting out declassification concerns on top of what we have already told you about people now stepping up and deciding they want to testify and, of course, interviewing Christopher Steele.

My message to the DOJ is very simple: we deserve to see the full report. After all, Mueller's findings, they were released with extremely limited reductions. And we are expecting the same treatment for the Horowitz report, because the American people deserve the full truth, equal justice must be served. The sanctity of our republic is at stake.

This abuse of power, it can't happen again. For months, this program, we have been squarely focused on our investigation into the investigators and we have been right from the beginning. Of course, the destroy rage Trump media has been wronged, pushing conspiracy theories and lies.

We have high ranking government bureaucrats, accountability in this case is critically important. Constitutional liberties are in jeopardy. Civil liberties are in jeopardy, equal justice under the law.

Now, apparently, not to the fools who are, well, supposed to be conducting oversight on Capitol Hill. There he is, Democratic House Judiciary Committee Chair Jerry Nadler. He's now turned his committee into an anti- Trump circus, the main attraction, nothing more than constant, never ending conspiracies and anti-Trump propaganda.

As we speak, Nadler is re-litigating now for the fifth time before previous investigations that concluded no collusion. A new boat-load of subpoenas are being sent out. In fact, Democrats, they are set to issue 12 more subpoenas as part of their never-ending fishing expedition.

Michael Flynn, John Kelly, Corey Lewandowski, Rob Porter, so many more who have already testified, called once again to cooperate with yet a fifth investigation. Private Americans, they are legal fees, they are spiraling out of control, all because of an outright smear campaign from the Democrats. They never accepted the election loss in 2016. They are not accepting now five separate conclusions, no collusion.

That is government harassment. That is government abuse of power plain and simple. I would urge these people, you've already testified, you can't add to what you testified to before, you are only walking into a perjury trap. Maybe the Fifth Amendment should be considered.

Keep in mind, the House Judiciary Committee is supposed to perform oversight of the Department of Justice. So where is their investigation into the FISA abuse? What about their investigation into political bias in the Mueller probe?

Is their investigation into illicit government spying, using the powerful tools of intelligence against the American people, especially at the height of an election favoring one candidate over another? Did they even care if I ranking bureaucrats broke the law, trampled on the rights of Americans? And, of course, does the whole issue of surveillance, unmasking, leaking raw intelligence?

Seems the only thing they care about is taking down a duly elected president, and, by the way, all the while calling him a tyrant. How ironic. Which it brings us now to Jeffrey Epstein.

Now, the left is now shamefully trying to use this guy, a convicted pedophile, to smear President Trump with reckless, irresponsible innuendos, suggestions, why? Because the president once knew Epstein.

By the way, Epstein lived close to Mar-a-Lago. Went to Mar-a-Lago in Palm Beach. Let's be clear, the president's association with Epstein, it ended many, many years ago. Watch this.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT: Well, I knew him like everybody in Palm Beach knew him. I mean, people in Palm Beach knew him. He was a fixture in Palm Beach.

I had a falling out with him a long time ago. I don't think I've spoken to him for 15 years. I was not a fan. I was not -- yes, a long time ago. I'd say maybe 15 years.

I was not a fan of his. That I can tell you. I was not a fan of his.

(END VIDEO CLIP)

HANNITY: The president did not elaborate on why he cut all ties to Epstein, author James Patterson who recently wrote a book on the Palm Beach predator, providing more details during an interview with our own Dana Perino earlier today. Let's take a look.

(BEGIN VIDEO CLIP)

DANA PERINO, HOST: President Trump said earlier that he had a falling out with Epstein about 15 years ago. Do you know what that was about?

JAMES PATTERSON, AUTHOR: Well, I know that there were some complaints about Epstein at Mar-a-Lago, and also, I spoke to the head of the spa there and she said -- I said, did you ever meet Epstein? She said, oh, yes. He would come in, he was inappropriate with younger women. She said, I went to Mr. Trump and Trump threw him out of the club.

(END VIDEO CLIP)

HANNITY: Oh, by the way, did the media mention that Trump banned him years ago from Mar-a-Lago? I guess he would not have banned him if the guy had something against him.

Epstein must be held accountable for what a sick, perverse, very scary charges. Sadly, for usual, the left is not interested in justice. Instead, they're using the case as another effort to bludgeon the president, because on the left, politics comes before all else. The sad thing is, they never brought it up in 2016 because the guy that really was closed Epstein was Bill Clinton. And they wanted Hillary to win.

Joining us now, author of the upcoming book "Power Grab: The Liberal Scheme to Undermine Trump, the GOP, and Our Republic," FOX News contributor, former Congressman Jason Chaffetz, author of the number one bestseller, "The Russia Hoax", FOX News legal analyst Gregg Jarrett.

I want to start with Sara's report in particular and Catherine's reporter in particular, Gregg, and I want to get to this issue. If -- we both know Sidney Powell. Sidney Powell is extremely smart, well-respected, and with a defensive case on Mueller's pit bull Andrew Weissmann.

Here's the point. If she in this filing is claiming that they were asking General Flynn to lie, we're back at the same situation where prosecutors can offer something of great value -- freedom -- if you just say what we want and lie.

GREGG JARRETT, LEGAL ANALYST: Yes.

HANNITY: In the Paul Manafort case.

JARRETT: It's the equivalent of testi-lying. We want you to lie. We don't care about the truth.

And when a prosecutor does not, it's actually suborning perjury. If you and I did it, we'd be charged. Prosecutors think they can do it every day of the week.

And Sidney Powell is going to present to the judge what happened to Michael Flynn. In particular, he is charged with lying, and yet here is what the FBI report said. Strzok and Pientka who interviewed him both had the impression that Flynn was not lying. He did not give any indication of deception.

HANNITY: How ironic.

JARRETT: So, if the only two people who interviewed Flynn said he wasn't lying in their judgment, then why did Mueller charge Flynn and force him to plea under pressure to lie? It's an injustice, and I think the judge needs to know it.

HANNITY: Let me ask Congressman Chaffetz.

All right. You have your sources tonight -- this is interesting to me. The attorney general said we could expect the I.G. report in mid-May. OK. Here we are at this day.

Now, the question is, we are learning from Catherine Herridge a couple of things. That people that weren't willing to talk in the beginning, they are now coming over last minute. And we know Christopher Steele talked to the I.G.'s team for 15 hours, but Steele could not contradict his sworn testimony under the threat of perjury in Great Britain because if he did, he'd probably be charged in Great Britain for perjury and he said he had no idea if any of it was true.

But it was still the basis of the application for four FISA warrants. So, where are we with this?

JASON CHAFFETZ, CONTRIBUTOR: Well, what we are really learning is that this goes beyond the Department of Justice, where Horowitz has jurisdiction within the Department of Justice. What you saw the president do to release information, at that was a queue that allowed Horowitz then to go outside the Department of Justice.

He had to get cooperation and pressure from the attorney general to the intelligence agencies. And so, then there got to be some fresh air where people started to say, oh, my gosh, they've actually interviewed some people, I better go back and supplement my testimony, and that is causing this delay.

And then the next fight, Sean, is going to be other classification. That is when -- you go to foxnews.com, I got an article about this. But I got to tell you, that's going to be a big battle royale.

HANNITY: Well, that will also be up to the attorney general, I would imagine, and I thought he was very liberal in terms -- I think it was all but one full sentence and seven partial sentences that he could not release because of grand jury laws.

All right. So, I guess the thing we have to ask air, to me, it is a slam- dunk. I will ask both of you the same question. In other words, we know that there were numerous occasions the DOJ, the FBI, Comey, even Andrew Weissmann, were all warned that the dossier was dirty, it was unverified, Steele hated Trump, Hillary paid for it.

But in each one of the applications, they said it was verified. So to me, that is premeditated fraud on a FISA court, abusing and taking away the civil rights of not only Carter Page, but the entire Trump campaign. I think it is a slam-dunk from my perspective, Gregg.

JARRETT: I always said it was. One of the things they will try to get from Christopher Steele, or did get from Christopher Steele, is the information laundering scheme that took place to hide from the court and everybody else that this was paid political propaganda. And so, it worked like this. The FBI didn't want anybody to know what they were doing, so they had Chris Steele and Glenn Simpson fed information to Bruce Ohr at the DOJ, who would then be debriefed by Joe Pientka, the FBI agent, who would then feed the information to Peter Strzok, who feed it to Andrew McCabe.

So this elaborate scheme was to hide the fact that it was all being paid for, political propaganda, by the Clinton campaign and the DNC.

HANNITY: All right. Thank you, both.

When we come back, the president's lawyer, Rudy Giuliani, is here to respond to the breaking news about Christopher Steele's testimony.

Also later, Democratic Party civil war has broken out. Nancy Pelosi and the real speaker, Alexandria Ocasio-Cortez, heating up. Dan Bongino, a special “Hannity” mini monologue, straight ahead.

(COMMERCIAL BREAK)

(NEWSBREAK)

HANNITY: As we said in our opening monologue, corrupt deep state actors may have trouble sleeping tonight after the reports that anti-Trump dossier author Christopher Steele sat down for 15 hours’ worth of interviews with the DOJ's inspector general.

Here to react to all the breaking news tonight and more, President Trump's attorney, Rudy Giuliani.

Mr. Mayor, so, all this news, he gave 15 hours of testimony. Now, finally others decided last minute that they want to talk to Horowitz. Then we learn about General Flynn.

You are a prosecutor. I don't like his practice. You got to get out of jail free card if you just say what we tell you to say.

RUDY GIULIANI, PRESIDENT TRUMP'S ATTORNEY: That's a Weissmann special which Mueller tolerated. And, you know, Mueller should never have been tolerated, whatever he was, independent counsel, or serious counsel, or sleep counsel.

HANNITY: Right.

GIULIANI: He did the same thing in the "Whitey" Bulger case. I mean, a federal judge named Nancy Gertner, a classmate of the Clintons, said that his handling of that whole thing was a serious problem for the FBI. It was chilling in the way that he covered up for a couple of FBI rats who actually did the murders, and people spent 40 years in prison for murder as they didn't commit. Other people committed them and the FBI knew all along.

I'm kind of not making this up. The U.S. attorney of Connecticut knows this case better than me. He uncovered it.

I mean, Mueller is the guy who has tolerated this kind of incompetent, unethical, over-the-top behavior in defense of the institution. I don't know what his makeup is but, you know, I did not really focus on all this until I got involved in the case.

HANNITY: Mr. Mayor --

GIULIANI: I was shocked. I was shocked at the way they handle this case. It's totally out of control.

HANNITY: You can't offer a get out of jail free card and then feed people want you want them to say. No, no, you can't put a man like Paul Manafort in solitary confinement for seven months and bring him in 13 times like Weissmann did, tell them what to say, when he tells you it's not true, I sent him back to solitary confinement and bring him out of work or more days unless they are trying to suborned perjury or you don't give a dam if she's suborning perjury.

And you can't do what he did to Corsi. I've got the documents on that. They got caught red-handed in that.

HANNITY: I know.

GIULIANI: That when we had to go to the Justice Department and get them slapped across the face for being a bunch of unethical, disgraceful prosecutors, which is what they are. And all this while ionizing Mueller is disgraceful and that's what you're going to find out. These guys are the guys that need to be investigated.

HANNITY: Well, we've been investigating the investigators. We are learning an awful lot that I don't like. Look, I want truth and justice but you can say, sing or compose or we're going to put you in jail. Say what we want or we'll put you on jail.

GIULIANI: Only if you have the liberal media, which makes you into some kind of a king for doing that, and a prince. When in fact, this is like -- this is the scourge of people who are civil libertarians, prosecutors like this. That's why you've got a guy like Alan Dershowitz in shock that these people are being lionized like this.

HANNITY: How does Mueller justify FARA investigations -- you and I both know that is usually fill out the form, fine, see you later, or loan applications, are taxing medallions, all of which he and taxes from a decade gone by and ignore Steele's dirty dossier that the other candidate paid for with Russian lies--

GIULIANI: Because he didn't care about the truth.

HANNITY: That was used to spy by on a campaign.

GIULIANI: He was a hit man. He didn't care for the - he wasn't - he wouldn't have hired Weissman if he cared about the truth, would he? He wouldn't have hired Jeanie Ray, the counsel to the Clinton Foundation. HANNITY: Well, they're going to put you in jail.

GIULIANI: That phony charity.

HANNITY: And I'll be right next to you, because these people don't have ethics.

GIULIANI: I wouldn't hire people like that. They wouldn't see the inside of my U.S. Attorney's office. I'd kick them out. I mean when he did that, I said to myself, what the heck is wrong with him? Well, then I figured out what's wrong with him. He's basically asleep. And the reality is that this was a plot from the very beginning to frame Trump. That's what you're going to find out.

It's rather complex. It has a whole counterintelligence spin to it. And it's going to get worse and worse and worse. And why is this the first time somebody sat down with Steele for 15 hours. Comey never did it. It was unverified. Hey, you're the Director of the FBI. You're supposed to verify, jerk. You're supposed to verify.

Don't tell me you can't verify. Man, I'd throw him out of the office, if I were the Attorney General. You come to me as the President and you tell me the thing is unverified and you've had it for four months and you haven't bothered to verify it.

HANNITY: No, it's worse than that.

GIULIANI: And find out, it's a bunch of crap.

HANNITY: Wait. He signed off in October 2016, verify.

GIULIANI: He had four months to verify it, Sean.

HANNITY: And four months later, he said, it's unverified, but salacious.

GIULIANI: He should have been embarrassed walking into the President of the United States, to the President-elect of the United States and saying, it's unverified. Unverified, you had four months to verify it and you run the most competent effective law enforcement agency in the world or at least you claim you do and you ruined it, pal, because they're all ashamed of you and they should be ashamed of Mueller You look back on Mueller's record now with an eye at what he was doing, you look at that whole Whitey Bulger thing and you say, wow this was predictable.

HANNITY: What do you predict on Wednesday. Because I think when Jim Jordan and Doug Collins and Matt Gates and a few others asked these questions How did you investigate these things but not the dirty dossier from Russia that was used to really influence the election and use to spy on the opposition party?

GIULIANI: How to do the investigation in the first place when you lead agent Peter Strzok and done the original investigation and concluded there was no evidence of collusion and he texted to his girlfriend, there is no there, there. He didn't tell you, there is no there, there. He told his girlfriend, but not you. Why? Because you don't show up in the office because you're behind an Iron Curtain. I saw the guy one time in a year and a half. I heard him speak for an hour and a half, one time.

I called him The Wizard of Oz, because he was behind the curtain and we're going to take it to Bob. We're going to take it to Bob. Bob isn't in- charge, pal. When I was the U.S. Attorney, I was in-charge. I was in-charge of the Commission case. I was in-charge of the case against Boesky. I was in-charge, not a bunch of assistants. Sure, they helped a lot, but I was the guy on the line, and I wasn't behind some iron curtain or some curtain like - he's going to be out of the curtain and we're going to find out answers and let's see if Bob can answer them.

HANNITY: I think he is going to have a tough time, Wednesday. It's not going to go the way the media thinks. Mr. Mayor, good to see you.

GIULIANI: I doubt it. And you know it'll be very interesting to see if he does another stumbling and bumbling like he did for his nine minutes.

HANNITY: Attorney General Barr, it's my theory, bailed him out with a joint statement. We'll see. Mr. Mayor, thank you.

GIULIANI: Bill is a good guy and a great Attorney General. So, I'm not going to criticize, Bill. He's doing a great job.

HANNITY: I'm not criticizing, I'm just saying I sensed he did tried to throw a lifeline.

GIULIANI: Maybe he gave him a lifeline, you know. He didn't take it.

HANNITY: All right. I guess not. All right. Mayor Rudy Giuliani just tell us how you really think. We always want to know. When we come back, Speaker Pelosi, Speaker in Name Only making outrageous claims about the U.S. Census, playing the race card. Congressman King, Matt Schlapp, they have reaction. Also, later Dan Bongino will tell us about a real civil war brewing within the Democratic Party. It's getting ugly. Straight ahead.

(COMMERCIAL BREAK)

HANNITY: The fight over the citizenship question being on the 2020 census that rages on. Speaker of the House, Nancy Pelosi, well Speaker in Name Only stoking the flames with her outrageous incendiary comments saying the issue was a matter of "making America white again." Really Nancy, playing the race card. Watch this.

(BEGIN VIDEO CLIP)

REP. NANCY PELOSI, D-CALIF.: This is about keeping make America, you know this hat. Make America White Again. They want to make sure that people, certain people are counted. It's really disgraceful. And it's not what our founders had in mind.

(END VIDEO CLIP)

HANNITY: Yes. OK. Now, Senator Ted Cruz said the question is "common sense." Take a look.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: First of all, do you want to see this question on the census?

SEN. TED CRUZ, R-TX: Absolutely. I mean this is just common sense. The Constitution gives to the federal government the responsibility to do a census every 10 years. That census needs to be an accurate count, it needs to count the people who are in this country and for virtually every census for over a century it is included a question, are you a citizen or not?

(END VIDEO CLIP)

HANNITY: Meanwhile, the Attorney General Bill Barr, he told the AP that he sees a way to legally ask about citizenship on the census. Now complicating matters, a federal judge today ruled the DOJ cannot change its legal team in the census case, total mess.

Joining us now with reaction is Congressman Peter King of New York and American Conservative Union Chair, Matt Schlapp. Good to see you both. Congressman King, good to see you.

REP. PETER KING, R-NY: Thank you, Sean.

HANNITY: Look, I think it's right. You know everyone makes these estimates how many illegal immigrants are in the country. Why is that in anyway a controversial question?

KING: To me Sean, this should not even be an issue. This to me is a basic common-sense question. The idea of a census is to find out who is in the country. Immigration being the issue that it is no matter which side of the issue you're on is important. I believe to know who is here legally, who is not, at least get a number on it, because that's going to matter as far as health care, as far as funding to know exactly who in the country is not legal. That to me is an important fact of the matter which side of that issue you're on.

If you want to get a true census as to what's going on in the country and there is such a significant issue, are there 10 million, 11 million, 15 million. How serious is the issue? Maybe they'll find out, it's not as bad as we think it is. I think it will. But I'm just saying is one of his accusers we can. And to me this is a totally phony issue raised by the media, raised by the Left. And with all due respect to the Chief Justice, I don't see why the government has to show a motive for something which had been in this census tract for well over 150 years.

HANNITY: Matt, let's look at this through the political prism for just a second, because all right, the Democrats have - they're not even talking about abortion. Many - I'm shocked that they would talk about during birth abortion or deliver the baby, make the baby comfortable and then the mother will decide. Then you've got the issue of 70 percent individual tax rates, marginal tax rates, 90 percent corporate rates. They're pushing that the New Green Deal, everything is free whether you want to work or not, no combustion engine, no oil gas and eventually no cows or planes. Then you add immigration.

MATT SCHLAPP, AMERICAN CONSERVATIVE UNION CHAIR: Right.

HANNITY: You know it's immoral to build walls, let's tear down walls and free health care even if you're here illegally. How were those positions going to match up against Donald Trump in 2020?

SCHLAPP: Well, you know the sad thing is Sean, the numbers show that Democrats across the country are embracing this idea of socialism and the radical policies you just enumerated. Look, I think America - there is a fight for the heart and soul of America and it's going to take place in Election Day 2000 November 2020. And the real key is this, we have elected Democrat presidents before who ran basically as center left moderates.

What we have with these Democrats running for President is pure unadulterated socialism, some grab the title, some demure a bit from it, they all have the same policies and on this question of the census, I agree with Congressman King, most of the history of America had a question like this on the census.

HANNITY: Right.

SCHLAPP: Our founders said that a question like this made sense. It is all part of these socialist Democrats attempt to weaken the concept of citizenry, to weaken the concept of being a citizen and the rights that come to you with that privilege and changing the whole definition of what it means to be an American.

HANNITY: And by the way, Matt, you may not know this, but Congressman King used to be my congressman. Then he abandoned me and got redistricted away from me. I think he did that by design, but I can't say for sure.

SCHLAPP: He's also not well-educated and I'm very worried about that as well.

HANNITY: No, no. Listen, he has always been a response - he is a responsive to his constituents that I know. All right. So, Congressman, you had said this week and I was very intrigued by it. You see that a lot of people are going to be held accountable in the deep state what we consider high ranking FBI, DOJ, intelligence officials. What do you know?

KING: This has nothing to do with Bob Mueller at all. I was on the Intelligence Committee going back four, five, six years when all of this going on with McCabe and Comey, and Brennan and Clapper. There was never ever a basis for the start of the Trump investigation to begin with, of the Trump campaign. And to have this unprecedented action of launching an investigation of a presidential campaign based on the flimsiest evidence which turned out to be nothing, involving Carter Page, involving George Papadopoulos. That to me, this was a scheme from the start, and I don't know exactly who had ship it. You go through it.

You have the dossier, you have Comey, you have McCabe, you have Strzok. You have all of them. And Brennan, this was a collusion effort and it's going to turn out as you mentioned before the FISA document that never should be granted by the court. It was a totally phony application and it was done time-after-time. So, we get into a lot of the details. The fact is, it was never even a basis. The investigation stopped in the first place.

HANNITY: Good to see you both. When we come back, Congresswoman Ocasio- Cortez Speaker Pelosi publicly feuding a Hannity mini monologue. And Dan Bongino next.

(COMMERCIAL BREAK)

HANNITY: Just like we've been telling you an all-out war is erupting inside the Democratic Party as Speaker in Name Only Nancy Pelosi continues to lose control of her caucus and she is losing it to the freshman Congresswoman that it would be Alexandria Ocasio-Cortez and the new extreme Left. And the real speaker showing no signs of backing down, because Ocasio-Cortez is now using Pelosi's own words against her, rehashing Pelosi's previous attacks like, when she said, a glass of water could have won in her district and tweeting yesterday, "those aren't quotes from me there, from the Speaker. Having respect for ourselves doesn't mean, we lack respect for her."

And it doesn't stop there, because a Far-Left group aligned with the Congresswoman is now targeting, yes, targeting Democratic incumbents who have defied the party's new extreme freshman wing. See what's going on. Ocasio-Cortez literally keeping an enemies list, apparently of targets inside her own district and inside her own party rather. This is an all-out Democratic circular firing squad.

The new radical Left setting the agenda on everything from higher taxes, open borders and yes, the economy killing so-called climate change alarmism. You know, no more oil, gas, combustion engine and everything is free. That's where Ocasio-Cortez is teaming up with Comrade Bernie Sanders on a climate change mobilization plan.

You see this is an apparent effort now to save face, because the New Green Deal rollout was a disaster and Bernie is actually comparing the whole thing to World War II. Telling reporters in a conference call, "I'm reminded today in terms of the crisis that we face in climate change about where the United States was at 1941, when it was attacked Pearl Harbor."

Now the best part about all this, these wounds are going to get deeper and deeper and the fight louder and louder, because every time Pelosi tries to get her power back and gavel back, all the new extreme Democrats, they get louder and louder and move further and further to the Left. It'll be interesting to watch. Let it go.

Here with reaction, Former Secret Service Agent, Fox News Contributor and I heard you did a great job filling in. I better not take any more vacations, Dan Bongino.

DAN BONGINO, CONTRIBUTOR: No.

HANNITY: I heard you did great. They make you wear a tie.

BONGINO: You're not replaceable.

HANNITY: That's the only question. Did you have to wear a tie. You did?

BONGINO: You are not replaceable, but I do appreciate. I did wear a tie. You know I have - you wear a tie, so it's the right thing to do.

HANNITY: I make the rule. You have the exception.

BONGINO: Thank you. I appreciate that.

HANNITY: I want the exception for myself. I'm like, no, you have to wear it one. Anyway.

BONGINO: It's more comfortable.

HANNITY: You know, we've got the deep state circular firing squad, you've got Strzok, and Page, they're now calling out the Attorney General at the time Lynch and then you've got Comey, he's at war with Clapper and Brennan and he's at war with McCabe and everybody is at war with everybody within the Democratic Party.

BONGINO: Yes. Well, this Democrat party thing is really just almost hysterical to watch. Sean, I don't know who is worse. You know Nancy Pelosi with her fake charges of Trump racism, Make America White Again. I don't even know where she got that. You know not so clever line from. And then you have AOC who really showed when you think about it is turning out to be quite the paper tiger.

You know she won this congressional district, it's a D plus 26 meaning overwhelmingly Democratic. She only won ironically with 20,000 more votes than I got in a congressional district. That was a D plus 6. She couldn't even win a Senate seat in New York, no less than national support. She keeps taking on Pelosi and they keep eating each other alive. But this is a center right country. This AOC stuff isn't going to go anywhere. She got no votes on her Green New Deal and what they get four votes on the humanitarian package at the border. So, she is wasting her time.

HANNITY: So, walls are immoral. But they weren't when Obama was President in his second term, and they funded the walls then and then they want to knock down walls. They want to raise taxes at 70 percent top marginal rate, individual's 90 percent corporations. Then of course, we've got Medicare for all no private insurance. Then we've got.

BONGINO: Yes.

HANNITY: Yes, illegal immigrants should have free health care. And then the New Green Deal.

BONGINO: Yes.

HANNITY: All the 2020 candidates, they adopt all of these issues. How will that match up to Donald Trump who has a great track record in terms of the economy.

BONGINO: Well, it's all going to come down to the economy. You see that already showing up in approval polls where President Trump is very well on economic front. But Sean, you have to remember you know history repeats itself right over and over. You lived through a lot of this.

The Democrats have tried this before where they overreacted to a conservative President. We saw it with Dukakis going up against Bush '41. We saw it with Mondale going up against Reagan where their overreaction was, look, let's show this foil effect. Let's do the exact opposite of Reagan and look what happened. They got annihilated both times. So, I don't know what they think they're going to get at this. Shockingly enough, Obama of all people looks like a moderate in this new Democrat Party. I mean is that the joke of the day or what.

HANNITY: That's pretty terrific. All right, Dan Bongino, good to see you.

BONGINO: Yes.

HANNITY: All right. You're not going to believe it, when we come back. A brawl caught on tape at Disneyland. By the way, you know those turkey legs. I don't know if they were used or not. We'll see it next, our Villain of the Day. Straight ahead.

(COMMERCIAL BREAK)

HANNITY: All right, our Villain of the Day, an all-out brawl broke out at Disneyland. Fox News Chief Correspondent, Jonathan Hunt. He is in our West Coast Newsroom with the live report tonight. Wow. Disneyland, can't we just put it to rest somewhere. Disneyland?

JONATHAN HUNT, CORRESPONDENT: Seriously, Sean. If you want to hash out a few family issues, you might choose to get everyone around the dinner table to talk. Or you could have a mass brawl at the happiest place on earth on one of the busiest weekends of the year. That's the choice this family made. And yes, according to police, these are all members of one family spitting at each other, punching and kicking each other, men punching women and older lady in a motorized car, hopping off the car to intervene. And a lot of people standing around doing nothing but watching and recording.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We did see several people pull out cameras and start recording and that's kind of an interesting tidbit when people really the first move they do is start to video record rather than render aid or call for assistance.

(END VIDEO CLIP)

HUNT: Eventually some bystanders did step in as one of the men pummeled one of the women. Security also belatedly showed up. If you look very closely and I strongly suggest, you don't, one man in a uniform of some description appears to be still in the process of zipping up his pants as he gets to the scene. No charges yet filed and when police interviewed the family members they were apparently and perhaps unsurprisingly uncooperative. Sean.

HANNITY: Wow. Jonathan. thank you. And I don't blame the people for not getting involved. Why would you interrupt that family fun weekend? And it's dangerous that there is any - because people have those turkey legs. That's a weapon. All right. That's all the time we have left this evening. We'll never be the rage, destroy, hate-Trump media. Let not your heart be troubled. There she is, Laura Ingraham is next. We'll see you back here tomorrow night.

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