Kellyanne Conway on farm bill, border wall, China policy

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This is a rush transcript from "Sunday Morning Futures," May 20, 2018. This copy may not be in its final form and may be updated.

MARIA BARTIROMO, FOX NEWS CHANNEL HOST: Good Sunday morning. Thanks so much for joining us. A Republican revolt stuns the House as conservatives clash with party leaders over immigration. China bends to some White House demands after intense trade talks and the President targets the FBI and the Justice Department. Good morning, I'm Maria Bartiromo. Welcome to 'Sunday Morning Futures.' The House Freedom Caucus torpedoes the farm bill to force immigration back into the spotlight. Is this a winning strategy for Republicans approaching the midterm elections? Counsel to the President Kellyanne Conway and the House Majority Whip Steve Scalise will weigh in. Shocking new details this morning coming to light after President Trump accuses the FBI of spying on his presidential campaign. The President now demanding that the Justice Department turn over documents to Congress. So after months of stonewalling, will the DOJ finally cooperate? The Chairman of the House Intel Committee Devin Nunes will join us live. President Trump's tough stance on China is getting results after the Chinese agree to import more American goods all as China sends a message by landing nuclear bombers in the South China Sea. House Armed Services Committee Chairman Mac Thornberry with us reacting this morning as we look ahead right now on 'Sunday Morning Futures.'

The showdown on immigration within the ranks of the House Republicans sinking this farm bill on Friday night. GOP leadership trying to kick the can down the road on the issue promising to bring it up next month. But party conservatives want to see movement on immigration now. President Trump also making it clear he wants Congress to act saying he will seek full funding for his long-promised border wall as soon as possible. House Majority Whip Steve Scalise will join us later on in the program on this. Right now, there is more reaction though from the White House. Joining us right now is Kellyanne Conway, Counselor to the President. Kellyanne, always a pleasure. Thanks so much for joining us.


BARTIROMO: Is the White House at odds with the House leadership on immigration going into the midterms?

CONWAY: This president could not be more clear that he wants that border wall, he wants funding for it, he was very disappointed in that omnibus package that was insufficient. Secretary Nielsen says something similar in the diplomatic room when the president came forward and said I'm going to sign this but then never send something like this to me again because I won't sign it. And the reason he signed it, you'll remember, is because it included there were $700 billion for our military their first pay raise in many years, $4 million for school safety -- excuse me, $4 billion for school safety, $6 billion for opioids, a lot of good things in there, but that border wall needs to be funded. At the same time, this president has been a friend to farmers from day one and he will continue to be so. I think much of this, Maria, is a function of Washington that they just -- they still have not accommodated and assimilated themselves into a -- into a system run by a president who thinks you can do many different things at once. You can take care of the farm bill, you can take care of immigration, get that border wall built. This president talks about keeping out illegal immigrants and folks who -- and separately folks who come here to do harm. He's against catch and release. He obviously is very much against the savages in the MS-13 gangs. However, he's also talked very crisply and definitively about the poison that's coming over our border. And this wall would serve many different functions including keeping out that poison.

BARTIROMO: Right. So is it the Freedom Caucus that is pushing to get this on the table before the midterms and is it the leadership in the House that's basically saying, well, let's kick it after until after the midterms?

CONWAY: If they want the president's help and direction on this, they'll recognize that he thinks that we need to have started constructing that wall. He obviously commissioned or somebody commissioned the prototypes and people have already started in different sections of the border making changes there. And so this president, again, happy that the -- that the Congress says they'll take this up again next month but none of it can be a substitute for what he sees as a number one issue. He promised it on the campaign trail, he was elected on it when others were all you know gooey and chewy about amnesty and no border wall --

BARTIROMO: No, I understand -- I understand. My point is, you're going into an election in November and obviously a lot of people are worried that the Republicans will lose seats. It's not a very good plan to be fighting over one of the president's priorities going into the midterm elections, but this is where we find ourselves isn't it?

CONWAY: Then they only meet that priority. It's a priority that is supported by many people across this country. We need to be a sovereign nation that has physical borders. It's very simple and it's very simple. You've seen the numbers increasing because we have these crazy programs like catch and release. You heard the president himself on Tuesday, Maria, in a speech to the peace officers say that we -- he believes in catch and release. You catch them and then you release them into the country they came from.

BARTIROMO: Right. We're going to be talking with Congressman Steve Scalise on this issue so we'll get more into this and whether or not this is the appropriate plan of action going into the midterms I got to get into trade in China, Kellyanne, because it looks like the Chinese are bending to the president's wishes here and agreeing to buy more stuff whether it's agricultural products or natural gas or oil from the U.S. My issue is the national security issue. The president was very firm that he was going to use the 301 part of the Trade Act and that is to protect this country's technology, to protect the crown jewels of this country. We know that China steals intellectual property, transfers technology to Chinese companies and obviously will not really open up markets to American companies. What does this agreement have to do with that because these are the real issues that are important to business and the economy?

CONWAY: Right. And all that is on the table Maria. And in two short weeks, we had the American delegation go to Beijing, we've had the Chinese delegation come here to the White House just this past week. They met obviously with the major players in the trade in China a space but also they met with the president of the United States himself. And this would not have happened but for Donald Trump as president because it never did happened. The president has said very firmly the $500 billion deficit is crazy. You see -- you see, I think you see some early productive commitments or conversations to reduce that deficit and increase significantly the purchases. But this is more than a buying mission. This is also -- this also has to do with the 301's. Ambassador Lighthizer has been very, very upfront about how the tech transfers, the stealing of our innovation, our intellectual property, really the stealing of our future innovation as well, that has to stop. But without this president's leadership none of this would be happening.

BARTIROMO: You're absolutely right and I totally agree that the president put the pressure campaign on China and he's winning on this. They are going to buy more stuff from us. However, the Chinese want this 301 issue, the national security issue off the table. Is the President going to give in to that? That would be a huge deal.

CONWAY: Well, the president has made very clear in all of these negotiations in all of his public statements practically, Maria, that he takes the national security piece very seriously. Obviously, he's doing many things around the globe and here at home to bolster the world security, our national security. Look what he's doing in North Korea, the alliances that he's been able to firm up with Japan, with China, ironically on that on that issue. And so this is a president who's been talking about national security. The tech transfers, I don't want to get ahead of any announcement that will be made but I can guarantee to you and you know this for speaking to others who are in those talks that everything is on the table and all of that is being discussed in Beijing and here in the United States.

BARTIROMO: Is the meeting with Kim Jong Un still on the table? Where does that stand, Kellyanne?

CONWAY: We're preparing for a June 12th summit in Singapore where this president will continue to do what he's been doing for months now since he got here really, which is to try to end 70 years of war between North Korea and South Korea and to try to denuclearize the Korean Peninsula which help -- which helps everyone. Obviously, North Korea had a problem this week with South Korea. We're monitoring that. But we've received no specific information that would make us think that we should stand down at this moment on forging ahead with that June 12th summit. But this president has made clear from the beginning Maria, and not repeat on his behalf this morning. If it happens, that's fantastic and if it doesn't happen because certain conditions aren't in place or the time is not right, that's OK too. Look at what -- look at what Secretary of State Pompeo has been able to do in two trips over to North Korea in what, seven or eight weeks, not even and three Americans are back on American soil with their families because of this President and Secretary of State Pompey's leadership and action.

BARTIROMO: Have the trade issues bled into the issues around North Korea? The president made a remark last week basically saying, I don't know, maybe China spoke with the head of North Korea. Maybe that's why they're backing out. In other words, at this pushback of the Chinese trying to get the 301 and the national security issues off the table with regards to any agreement, is that getting in the way of its dealings with North Korea?

CONWAY: Well, I wouldn't conflate the two. And I happen to know that's not what the President meant in that comment with respect to China.

BARTIROMO: OK. We move -- now we move on to the Department of Justice and the FBI investigation, Kellyanne. We're going to talk with Devin Nunes coming up, the Chairman of the Intel Committee. He's also investigating China so I'll get into that with him. But we want to talk with him about his investigation into the FBI and the DOJ and their handling of the investigation into Trump collusion, narrative as well as Hillary Clinton's investigation. The president tweeted this yesterday. "If the FBI or the DOJ was infiltrating a campaign for the benefit of another campaign, that is a really big deal. Adding, "he support to pushes by the House Intelligence Committee to release the documents and the President is saying that he was spied on. Can you tell us what went on?

CONWAY: All I know is what I see. And the president is absolutely within his rights to tweet about this. He tweeted more about it just this morning Maria. And essentially the president is saying what we're all saying which is we're happy to never talk about the 2016 election again. Winning solves a lot of problems. Winning completes many sentences. But you can have it both ways. Those who want to investigate Russia collusion which the president said it's a witch-hunt, there's no evidence of it, we're into year two of this, you can't then say, oh, we can never talk about the Hillary campaign again and what happened there. The president is saying, well how did they handle an investigation where 33,000 emails just disappeared, where the Clinton Foundation was getting got over a $100 million in contributions including from countries frankly, that don't respect women and girls very much. Did Haiti ever get its money by the way? Good question. So the president is saying if you're going to investigate all this investigate all of it. We have a right to know transparently what happened with respect to both campaigns and how that -- how that issue -- how those issues were handled. We also know, Maria, at this point, it's something that we did not know before, this investigation which is Jim Comey and Andrew McCabe's FBI at the highest levels, not the tens of thousands of rank-and-file men and women who are there to do their jobs diligently and respect -- respectively, they were running at the top echelon a very porous and poorly run organization when it comes to handling the Hillary Clinton investigation. Read Rod Rosenstein's memo from May 9th or so of last year. It is scathing in terms of Jim Comey and I suppose some others in his -- in his senior management day -- it was textbook what you don't do when things like this occur, preening for the cameras, overtaking the DOJ, Attorney General Lynch's judgment and supplanting it with his own. So we have a right to know all this. I'm very happy at least that these documents are coming forward now because there seem to have been a logjam for quite a while and we seem to be learning more as a public. So let's learn more as the public.

BARTIROMO: All right, we're going to talk with Devin Nunes right after this about that and about what he says was an investigation launched into the Trump campaign, the Trump administration based on zero intelligence, zero intelligence.

CONWAY: And Maria, allow me --

BARTIROMO: Yes, real quick.

CONWAY: If I may, I'm sorry. Allow me just to say since I was the campaign manager for the winning part of the campaign you and I've never to this moment that I can recall met Carter Page or George Papadopoulos, I've seen them on T.V., have seen pictures of them on T.V., Carter page is set on a different network. He's never met me. I think that's important because when you're talking about how we won and what happened when some significant changes were made in leadership, in the campaign, and let's remember, it's Donald Trump and Mike Pence. They were our two greatest assets on this campaign. They won this election fairly and squarely. I think it's important just to note that because people again are saying duck campaign as if every phase of that was the same. I will tell you, I'll look you in that -- I look you and America in the eye, there's no reason to have been talking to anybody frankly from Russia and from these other countries trying to do anything other than beat Hillary Clinton fairly and squarely. I look no further than Hillary Clinton to figure out how to beat Hillary Clinton.

BARTIROMO: Exactly, Kellyanne, it's good have you on the program this morning. Thanks very much.

CONWAY: Thank you, Maria.

BARTIROMO: Kellyanne Conway joining us. A long-awaited report on the Justice Department's investigation into Hillary Clinton has Washington on edge this weekend. The president has put new pressure on the Department amid spying accusations. House Intelligence Committee Chairman Devin Nunes will join me live next as we look ahead on 'Sunday Morning Futures' right now.


BARTIROMO: Well, the Justice Department Inspector General Michael Horowitz is preparing to release his highly anticipated report on the FBI and the DOJ's handling of the investigation into Hillary Clinton's e-mails. That report expected soon. It comes as President Trump is calling for the Department to allow Congress access to documents linked to an FBI informant who spoke to some of his advisers during the 2016 presidential campaign. Joining me right now is House Intelligence Committee Chairman Devin Nunes. Mr. Chairman, it's good to see you. Thanks so much for joining us.


BARTIROMO: A lot of conversation about this informant on a lot of other channels and in all sorts of newspapers. What can you tell us in terms of what went on?

NUNES: Well, I can tell you that nobody was ever interested in an informant. We asked for specific documents that we still have not received from the Department of Justice. So they continue to leak out things about this informant and we don't know if there's one informant or more informants because there's so much out there now, it's really getting tough to follow and all we're asking for is give us the documentation that you used to start this investigation.

BARTIROMO: And what you've been investigating is what exactly launched an investigation into so-called collusion between Donald Trump and the Russians, is that right?

NUNES: Yes, so don't -- so remember, we discovered that the dossier was used, so this is the dirt that they dug up the Hillary Clinton campaign of the Democrats used and then it got to the FBI and the FBI used it in a FISA. So we're trying to get to the bottom of you know, what else was used in that FISA because you have many people within the Department of Justice who are claiming that were wrong. So if we're wrong, show us the information.

BARTIROMO: Well, Jim Comey was interviewed by our own Bret Baier recently, you know that, and during that interview, Jim Comey said that there was more than just the dossier. Let's roll that clip. Listen to this Mr. Chairman.


BRET BAIER, FOX NEWS CHANNEL CHIEF POLITICAL ANCHOR: But I called the dossier unverified, salacious, why did you use that to the FISA Court to ask for surveillance for Carter Page, not only use it but you led with it a bulk of that FISA application, deals with that dossier, why?

JAMES COMEY, FORMER DIRECTOR, FBI: Yes, that's not my recollection, Brett. And I don't know that the FISA application has been released. My recollection was it was part of a broader mosaic of facts that were laid before the FISA Judge to obtain a FISA warrant.


BARTIROMO: Broader mosaic of facts Mr. Chairman.

NUNES: Yes. We're looking for the pieces to Mr. Comey and the FBI's mosaic. So you know, they've continued to say that this didn't happen even though we've had career prosecutors go and evaluate this, we released a memo that we made public for all of Americans to see that they had used this dirt that was bought and paid for, not verified before a FISA Court. And then they continued to claim, no, no, no, don't look here. There's no FISA abuse at all and they're in total denial. So we have a right to get the information if James Comey and many others in current and people that are currently at the Department of Justice today continue to say there's nothing to see here. Well, if there's nothing to see here, show us the documents that we're asking for and they refused to do it.

BARTIROMO: And how many documents have you gotten so far from the 1.2 million documents that you've requested?

NUNES: Well, that's actually a different request related to the Clinton email investigation.


NUNES: We have been very specific. We think there's only a handful of documents left that we'd like to see but we never get the full story.

BARTIROMO: The Department of Justice told Fox News they've invited you to the DOJ and you haven't responded or you -- are you aware of this invitation to go to the DOJ?

NUNES: Yes, so they continue to leak so they -- we had a productive, what I thought was a productive meeting and then after that meeting they've done nothing but leak and leak and leak. Now we don't know exactly who it is over the Department of Justice or FBI, I'm not pinning any blame on people but we're not going to go to another meeting where we don't get documents and then the meeting leaks out. And you know, they were trying -- and this -- and this should make people very suspicious. They were trying to get Mr. Gowdy and I to go on Friday to the Department of Justice for supposedly another briefing. We said look unless we're going to get documents, we found out Thursday night they were not going to provide documents so therefore we're not going to go. Now if you look what happened on Friday night, probably the mother of all leaks of all time to two major newspapers that came out late Friday night.

BARTIROMO: Yes, that's --

NUNES: Now, if -- had Mr. Gowdy and I went to that meeting, you can bet they would have tried to pin that on us.

BARTIROMO: That's what I want to ask you about. Stay with us, Devin Nunes, we'll be right back with more on that.


BARTIROMO: Welcome back. We are back with this exclusive interview with House Intelligence Committee Chairman Devin Nunes. And Mr. Chairman, a moment ago before we went to break, you said it was the mother of all leaks conducted by the Department of Justice. What were you referring to?

NUNES: Well, there were two mainstream media outlets on a Friday night that had lots and lots and lots of details. If any of those details are correct, so remember we don't have any documents, we can't confirm whether there's an informant or not informant because we've never been told or nor given documents and in fact we've never even asked for the name of any informants or any sources whatsoever. So if any of that is true, if they ran a spy ring or an informant ring and they were paying people within the Trump campaign, if any of that is true, that is an absolute redline there is not an honest person in this country who can believe that taxpayer dollars going to fund this ring and operate like this like what settings in the New York Times I think it would have quite a bit -- you know, quite a bit of detail on it, if any of that is true, that's a red line in this country. You can't do this to political campaigns.


NUNES: I mean this was done -- I mean, according to them this was done in the spring. I mean, before the counterintelligence investigation was even open. If that's true, we need to know about it.

BARTIROMO: So well, the New York Times reports and the Washington Post that somebody was paid, somebody was paid and they were interacting with the Trump campaign. You want to call it spying, fine but somebody was paid. Isn't that right? That's what the New York Times said.

NUNES: If they paid someone, it's an absolute red line and this is over with. I mean, I don't know how to say this. I mean, there's no possible way that we should be allowing, even if it was legal, we should never allow this in this country. Congress should not allow for anything like this to ever occur again to any political campaign if it, in fact, happened which is why I'll say again all they got to do is provide us the documentation. If they didn't do anything like that, provide us a document so we can verify it.

BARTIROMO: Well, when you say this is over, what do you mean this is over? I mean, we have -- we have criminal referrals from the Inspector General to Andrew McCabe--

NUNES: When I say that it's over -- when I say it's over meaning that this whole thing is a scam. I mean, that there's real FISA abuse here. If there is real -- I mean, if there's real FISA abuse, I just can't imagine if what's it -- if it what's in that these stories is true, how can any Americans stand for this? And look, we're a separate branch of government. We set up these capabilities. We have a responsibility to oversee these capabilities and I'll tell you, there is not an honest person in this country that thinks it's OK if sources, informants, whatever you want to call them go around and start passing out money all over the globe to do what, to secretly put yourself into a presidential campaign? That's not acceptable in this country.

BARTIROMO: How far off the line does this go? We know that Loretta Lynch and Sally Yates were briefed on the Trump campaign in 2016, in the spring of 2016. We know from Peter Strzok texts that he said and I quote, President Obama wants to know everything we're doing about -- on this and we know that Peter Strzok told Liza Page we need an insurance policy should Donald Trump win the presidency. So who was calling the shots here?

NUNES: Well, look, there's a lot of abuse here and so they were briefed in the spring. So we know that the FBI briefed the highest levels of the Obama administration in the spring of 2016. Shortly after that, you have Mr. Steel that gets going he's being paid by the Clinton campaign secretly. He's also meeting with the FBI. He's digging up what ends up being totally phony dirt by the way who he claims got it from Russians. And so I don't know how clearly I can possibly say this. If anybody's looking for collusion all they have to do between the Russians and a political party, all they have to do is figure out if in fact, Christopher Steele talked to Russians because there you have your collusion. They took information from Russians and they used it against the president, President Trump --

BARTIROMO: And the Democrats paid it.

NUNES: And then they start it -- and the Democrats paid for it all. And this is -- so I don't even know what they're investigating it this time.

BARTIROMO: So wouldn't Robert Mueller be looking at them then? I mean Robert Mueller's investigation has turned one. It is one year old this last week. Would he have looked at collusion between Hillary Clinton and the Russians then or is that not his mandate? I doubt it because I mean they've never even looked into. There's all this talk about leak -- about leaks, what about the leak of General Flynn's phone call with the Russian Ambassador? What about that leak? Why don't we why don't we start there with leaks?

BARTIROMO: Yes. Well that we know is a felony. Real quick, the I.G. report is forthcoming, what are you expecting from that I.G. report? Will justice be served?

NUNES: You know, I don't have any idea. This is the Clinton email investigation. I have not met with Mr. Horowitz. I don't even know exactly what he's looking at other than what I've read in the press. But I can tell you, the cast of characters that are involved in that investigation are the same cast of characters that we are investigating at the House Intelligence Committee as we look into FISA abuse and counterintelligence operation.

BARTIROMO: And you're also investigating the State Department. Anything new there?

NUNES: Yes. So well, that's -- the interesting thing about the State Department is we're trying to figure out how did this information make it over from London to the FBI? We've never been able to put that together because we were told many times and this was all over -- you know it was leaked. Oh these were trusted five eyed sources and you know intelligence products. Well, as you know, we never found any intelligence products as it relates to our five eyes partners sending us information. So how did it get through? Well we think the State Department because we have people talking about this, former State Department officials talking about this. So if that indeed happened, now we have something that's totally irregular. So now you're taking information from the State Department, you're opening up a counterintelligence investigation into a political campaign. That is to say the least, it's irregular.

BARTIROMO: And we should point out that on this program you've said in the past that Sidney Blumenthal and Mr. Shearer, Cody Shearer were actually funneling information to the State Department.

NUNES: Right you kind of have a -- you kind of have all kinds of people, right? You've got Christopher Steele, working for the Democrats in the Hillary Clinton campaign. You've got Blumenthal and others who are tied and affiliated with the Clinton operation, and then on the other side you have the FBI. They're all about at the same time running investigations into Carter Page? I mean, it's very -- it's very odd. You make a lot of good points Mr. Chairman. Real quick before you go. You are also investigating China. This is an important storyline for us this morning as the President has come to some kind of an agreement where the Chinese will buy more goods. What my concern is is, is he going to take the national security part of this off the table? The Chinese do not want to deal with this 301 part of the Trade Act where the US can stop China from certain practices because of national security issues. What are you investigating China over?

NUNES: So we have a really large investigation going into and study I guess, I should say into what is -- what are China strategic goals globally. So this week we had our first hearing. We had great witnesses. If people want to go to, they can -- they can review our testimony that was given between -- before the House. It was all made public talking about military strategy that the Chinese have all over the globe. It's very, very interesting and it's an important topic. So like always, the President is got to take China on. They have to be dealt with. I commend them for that. But we have to be careful that we at the same time don't do anything to hurt the global economy.

BARTIROMO: And Mr. Chairman, good to see you this morning. Thanks very much.

NUNES: Thank you.

BARTIROMO: Chairman Devin Nunes. We'll be right back.


BARTIROMO: Welcome back. The farm bill taking a hit in the House this weekend as conservatives tank the measure to send a message to GOP leadership regarding immigration. The White House is also eager to address the issue but should it wait until after the midterm elections? At the start of the program, we spoke with Counsel to the president Kellyanne Conway, joining me right now to add more to the story his House Majority Whip Steve Scalise. He is also a member of the House Energy and Commerce Committee. Thank you so much for joining us Congressman. Thanks for being here.

REP. STEVE SCALISE, R—LA., HOUSE MAJORITY WHIP: Good morning, Maria. It's great to be back with you.

BARTIROMO: Can you tell us what happened this weekend? I mean, it feels like the leadership in the House is at odds with the president. Is that what's happening? No. In fact the farm bill we brought to the floor, that actually had the strong support of the president. He tweeted out in support of it the night before. And we want to get it done. We're going to come back to it and get it done. And as real work requirements, and I think this is something most Americans can strongly agree with, is that if you want to be on welfare, it should be a safety net. If you're able to work, you shouldn't be on welfare and we should put work requirements in place. The farm bill does it. We're going to come back to that. This was about immigration. And ultimately, the timing of when we bring in immigration bill to the floor because look we're in to bring the Goodlatte-McCaul bill to the floor. I think that's the right answer. It deals with wall funding, it secures the border, it also solves the DACA problem in a way that we are in sync with the president. Unfortunately, the votes aren't there yet to pass it and we're working on some other alternatives with President Trump so that we can be in sync.

BARTIROMO: So what's the holdup in terms of getting those votes? Why aren't the votes there? You say you are going to have a vote on immigration in the next couple of weeks right?

SCALICE: Right. We're going to have a vote on the Goodlatte-McCaul bill. Again, the votes aren't there to pass it but a lot of members want to vote anyway and I understand that. Then, we're also working with the president to see if there's some third alternative. I don't want to see the DREAM Act come to the floor which is pure amnesty with no border protection, no wall. That is not the answer. Amnesty is not the answer. But we need to find an alternative pass because right now the votes aren't there to do what I think is the right approach because there are no Democrats that support building the wall with a fair approach to DACA that that allows people to become citizens just by getting inline like everybody else no path to amnesty. And so that's the divide right now. But we're working with the president to get this done.

BARTIROMO: So is it the Freedom Caucus that pushed back on the farm bill because they want immigration done sooner?

SCALISE: Yes, I think they wanted to see the Goodlatte-McCaul bill brought up before the farm bill.


SCALISE: This is a tactic issue. We all want the same thing. We all want to get to the same end result, so we're working with the Freedom Caucus and we're not that far apart. They just didn't want to vote on the farm bill on Friday, they want to vote on it soon with us to get it passed but we're working on the timing and we're working with President Trump because I think it's important that we're all on the same page on how to address DACA and fund the wall and secure the border. What else can be done before the midterm elections, congressman? We know that you've had real success in terms of the tax reform legislation as well as the rollback in regulations. It's moved the needle on economic growth. Now we're talking about potentially four percent economic growth next year. What else can -- will you do a phase two of the tax plan?

SCALISE: Yes, we will. You know, Chairman Kevin Brady of the Ways and Means Committee wants to do a phase two of the tax cut bill. I think you still see the great economic news. People are seeing more money in their pockets and they're seeing companies hiring. I mean, these are all great signs. We need to get work requirements in welfare because now companies are looking to hire people. Why should people that are able-bodied be sitting at home getting taxpayer money when they can be out in the workforce and become part of the American dream? That's going to be the next phase. And again, I think we need to get back to the farm bill. We'll get that done. We need to bring an immigration bill to the floor. At least President Trump wants to solve this problem. Barack Obama created the DACA problem without ever trying to solve it. Nancy Pelosi, when she was in charge, she never tried to solve this problem until she lost the speakership. So you know, this is about politics. We want to solve problems.

BARTIROMO: I mean, the president tweeted out last week, look if you don't get the wall funding done and an immigration proposal done before the August recess, don't go on vacation. Is this the kind of thing that would push the president to pressure Paul Ryan to step down sooner rather than later in terms of becoming Speaker, holding on to the Speaker position?

SCALISE: No, I don't think that is anything to do -- I don't think -- no I don't think that has anything to do with Paul Ryan. It's just President Trump's real frustration that he's put offers on the table to get the wall funded fully, we were able to get at least a down payment on the wall to get over a hundred new miles the border funded. But we all want to get the rest on too. We want to work with President Trump to get that. Obviously, Democrats are blocking it and I think Democrats are making a big mistake to double down on being against tax cuts and being against border security. However you feel about DACA and how to solve that problem which we want to solve, they're standing in the way of actually securing our border which most Americans agree should be a top priority. We want to work with President Trump to get that done.

BARTIROMO: Congressman stay with us. I want to ask you what you think is the solution to holding on to the leadership in the House and Senate come November with these midterm elections. I'd like to know what the plan is. So we'll take a short break and come back with that. Steve Scalise joining us this morning. Stay with us as we look ahead on 'Sunday Morning Futures.'


BARTIROMO: We are back with House Majority Whip Steve Scalise this morning. And Congressman, what is the plan to hold onto the leadership come the midterm elections in November?

SCALISE: Well the battle for keeping the House, number one focuses on staying on track on getting the economy moving again which we've started to do with the tax cut bill. Most Americans, their main focus is still the economy and we've been laser-focused on getting the economy moving again, working with the president who gets it, who understands that getting rid of regulations and cutting taxes is really a recipe for getting the economy moving again and it's work. Nancy Pelosi, if she was speaker has already said she wants to raise taxes on all of those hardworking families who are finally seeing some more money in their pocket. She also wants to bring that regulatory state back. You know, when you had regulations that were out of control, we're not going to let that happen and we know the districts where she's got to flip to be speaker again and we're fighting in those districts and we're going to continue to focus on the things that matter for families, getting the economy moving again, securing our border and making sure that we've got a military that's properly funded and we're taking care of our men and women in uniform. That's going to be our main focus, working with the president who wants to get that done as well.

BARTIROMO: And of course, this enormous story about the abuse of power at the top of the FBI and the DOJ is taking a lot of the oxygen in the room. I don't know where we'll be in that regard come November but we'll be watching that storyline as well. Absolutely. You know, and I'm real concerned again when you see all the leaks. You just saw Chairman Nunes talked about the problems that he's experiencing. They can't get the right documents from the FBI yet every conversation they have is leaked out like a sieve. The FBI needs to get their house back in order. They need to stop going -- running around on witch hunts and focus on their main objectives and that's helping keep this country safe.

BARTIROMO: Congressman, what can be done about school shootings? You have been such an inspiration to all of us. Obviously, you were shot at the baseball practice, and now yesterday another tragic shooting in Texas. What should be done on Friday?

SCALISE: It's another horrible tragedy, Maria, yes. And it's so sad to see what happened. But unfortunately, there's something going on with our young kids that we've got to focus on and find out what the real problem is. You know, here was a case where it wasn't the kid that everybody thought like at Parkland. Every -- half the kids seemed like thought that this -- that kid would have been a school shooter. Here that wasn't as much the case yet something went horribly wrong. Look, there were guns around for decades and you didn't have these kinds of school shootings. This is something that we've got to figure out what's going on in the culture with our young kids that would cause somebody to flip like this and go do something so horrible.

BARTIROMO: Congressman, it's good to see you this morning. Thanks very much for joining us.

SCALISE: Always great to be back with you, Maria.

BARTIROMO: We appreciate your time very much. Steve Scalise, we'll see you soon, sir. Thank You. North Korea meanwhile is threatening to cancel the meeting between President Trump and Kim Jong Un. China lands nuclear bombers on militarized islands in the South China Sea and the European Union is signaling it will stick to the Iran Nuclear Deal. I'll be speaking with Congressman Mac Thornberry, Chairman of Armed Services Committee next about all of that as we look ahead on 'Sunday Morning Futures.' Stay with us.


BARTIROMO: Welcome back. President Trump calling South Korea's President Moon Jae-in to discuss the June 12th summit with Kim Jong Un in North Korea after North Korea threatened to pull out of that scheduled meeting. It scheduled for June 12th in Singapore. The two leaders agreed to work closely to secure this historic summit ahead of Moon's visit to the White House this week. Joining me right now is Texas Congressman Mac Thornberry. He serves on the House Armed Services Committee and it is good to see you, Sir. Thanks very much for joining us Mr. Chairman.


BARTIROMO: What are your thoughts on this Kim Jong-un meeting coming up on June 12th? First off, let's start there.

THORNBERRY: Well, number one it's very important for the president to be talking with President Moon because what the North Koreans are trying to do is to divide us from our allies. That's what all of this running hot and cold is designed to do. What it's also designed to do is to make us relaxed our efforts. Several times over the past week I've been asked by reporters, well, do you -- do we still need to pursue this missile defense stuff if there's going to be peace on the Korean Peninsula. And that's exactly the sort of question that the North Koreans are trying to provoke, to get us to relax. So it's important to be vigilant, it's important to stay with our allies knowing that they're going to try to manipulate us.

BARTIROMO: Meanwhile, you have China sending messages by sending these nuclear potential bombers into the South China Sea. What message was China trying to deliver with that move?

THORNBERRY: That the South China Sea is their lake and everybody else had better ask their permission if they want to go through there. One of the concerns I have is that the world has been so riveted on the North Korean drama that meanwhile China has progressed steadily step by step in militarizing the South China Sea and trying to intimidate the Philippines, Vietnam, Indonesia, the other countries in the region as well as the United States. So this is another place where military strength and in this case more ships is absolutely essential just to protect freedom of navigation.

BARTIROMO: Yes, and we just spoke with the Chairman of the Intel Committee Devin Nunes about this. He is investigating China in that regard exactly. You've got the Defense Authorization Bill that you're bringing to the floor this upcoming week. Tell us about that.

THORNBERRY: Well, this is step two in trying to rebuild our military and also reform the Pentagon. You and I've talked a lot in the past about accidents and trying to fix our planes and ships and training and so forth. This is the essential next step to do that. But also in this bill are a number of items that help make us better prepared against North Korean missile threats, against Iran against all the things that China's do, and Russia, the terrorists, et cetera. So historically it's had bipartisan support. I hope that the increasing partisanship we see on other issues does not diminish the bipartisan support for the men and women of the military.

BARTIROMO: Yes. I mean, this these are all really important points. The idea that China is getting stronger militarily, I mean, their economy is obviously doing better. They're expected to grow seven percent, six and a half percent this year in terms of the economics. So they are also looked at as stealing intellectual property from the United States and transferring technology. Are they transferring technology and then applying that technology American technology to their industrialized as well as military complex?

THORNBERRY: Oh absolutely. If there is one theme that has come through in our committee's hearings and briefings, classified and unclassified over the course of this year, it is that China doesn't just take an all of government approach, they take an all of nation approach. Any company, any individual will be a tool of the Chinese government to steal, to buy, to borrow whatever it takes intellectual property that can be used in their military to to against us. And so we've got to toughen our laws as well as strengthen our own military.

BARTIROMO: Yes, so are you worried that the president is going to give in on that issue? I mean, China watch the 301 issue, national security issue off the table? Should it be buying more goods from the United States? But just getting the trade deficit down, does it address these issues that are more important for the U.S. economy, that's I.P. theft and technology transfer.

THORNBERRY: Yes. I agree with that. There is a lot of support in Congress to tighten up the laws that prevent I.P. theft or even if they come in as investors and get it that way. We've got -- we can't fuel our adversaries the way we have been. And China is the leading one that's taking our stops.

BARTIROMO: Real quick, we only have a few seconds here. The E.U. says it's going to stick to the Iran deal after the U.S. pulled out. Your thoughts.

THORNBERRY: Tomorrow, I think Secretary of State Pompeo is going to outline a broader approach to Iran that would go beyond the E.U. and involve other nations and I think that's what it takes. We see Iran being more aggressive at in all sorts of fronts including against Israel. And so, we need a broad coalition to push back against Iran, a key component of that is military strength, but diplomacy and economic sanctions have to be part of it too.

BARTIROMO: And you could do that with a group of countries away from the E.U.?

THORNBERRY: You can make some progress. It'd be better if the E.U. was -- and the rest of us are on the same team but you can broaden the aperture a little bit and you can make progress.

BARTIROMO: Congressman, good to see you this morning. Thanks so much.

THORNBERRY: Thank you, Ma'am.

BARTIROMO: We appreciate it, Mac Thornberry. That'll do it for our 'Sunday Morning Futures.' I'll see you tomorrow morning on the Fox Business Network on "Mornings with Maria" at 6:00 a.m. Eastern. Have a great Sunday. Here's "Media Buzz" with Howie Kurtz after a break

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