Kudlow: No stock buybacks, extra executive compensation for large businesses who receive funds

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Kudlow: No stock buybacks, extra executive compensation for large businesses who receive funds

National Economic Council Director Larry Kudlow joins ‘Sunday Morning Futures’ to talk about the $2.2 trillion economic rescue amid the coronavirus crisis.

This is a rush transcript from "Sunday Morning Futures," March 29, 2020. This copy may not be in its final form and may be updated.

MARIA BARTIROMO, FOX NEWS ANCHOR: Hello, and good Sunday morning, everyone. Thanks so much for joining us. I'm Maria Bartiromo.

Welcome to "Sunday Morning Futures."

Nearly half of America is now under lockdown this morning, as the number of coronavirus cases spikes to more than 124,000 across the country. The U.S. death toll now doubled in the last 48 hours, now to over 2,000.

A domestic travel advisory in effect for the hard-hit New York tri-state area, after President Trump signed an emergency $2 trillion stimulus package, a relief package, into law, the largest in U.S. history.

Coming up, House Minority Leader Kevin McCarthy is here on how this bill will help workers, businesses and the hospitals who need it most.

Plus, breaking news from National Economic Director Larry Kudlow on what it will take for the U.S. economy to reopen for business and when.

South Carolina Senator Lindsey Graham is here on the immediate impact of the stimulus bill and the unemployment loophole that he is warning could hurt the economy long-term.

Plus, the first U.S. senator to raise concerns over coronavirus in January, Tom Cotton, is here, sharing why the world most hold China accountable for this pandemic, he says.

Plus, Louisiana Senator John Kennedy is here on what steps the government must take now to protect the economy, as the number of cases in his home state soars.

All that and a lot more right here, right now, as we look ahead on "Sunday Morning Futures."

And at the urging of President Trump yesterday, the CDC issued a travel advisory for New York, New Jersey, and Connecticut.

People living in those states are now advised to refrain from all nonessential domestic travel for the next two weeks, this after the president said that he was considering a full quarantine of the states, which he now says is not necessary.

Joining me right now is House Minority Leader Kevin McCarthy.

And, Congressman, it's always a pleasure to see you. Thanks for being here.

REP. KEVIN MCCARTHY (R-CA): Thank you for having me back on.

BARTIROMO: So, is it necessary to have these lockdowns on obviously the tri-state area and throughout the country at this point?

MCCARTHY: I think it is necessary, because, when you look at the number of deaths, but also the number of individuals have it, a large portion of that is from this tri-state.

And this president is trying to get ahead of it, just as he made that very smart decision for stopping flights from China coming in as well. These are protections for the rest of the nation.

BARTIROMO: Let's talk about that relief bill that you and your colleagues worked on, the president signing into law.

Can you go through, walk us through what's most important and what you believe will actually move the needle on economic growth? Because we know that we may very well be in a recession right now

MCCARTHY: Yes, this was very critical. And it's more than a rescue. It's actually a commitment from your government.

I wish we would have had this a week ago. Unfortunately, Democrats have held us up. But let's walk through the importance of this. First, it provides $140 billion to the hospitals. This is directly so they get liquidity, but also for that personal protection equipment that is so critical, because our medical community is really the modern-day soldier in this virus that we're battling.

But for the small business owner, we want to make sure we're keeping people employed. If you are a small business, 500 employees to just a gig worker yourself, you get a guaranteed loan from government for 2.5 times your payroll.

If you use that money to pay your employees, if you already laid them off, bring them back and pay them, pay your rent, pay your utilities, and that is forgiven, no longer a loan, but a grant.

BARTIROMO: Right.

MCCARTHY: If you are a larger business, you get a guaranteed loan, but you also get a retention program in there through a tax advantage that government will pay for half of your employee salary.

That's an ability to keep people working. Then the individual checks that will go and start in three weeks, $1,200 per person, $2,400 per couple, $500 per child.

BARTIROMO: Right.

MCCARTHY: It will start phasing down after earning $75,000.

This is critical to get us through the next two months and get this economy coming back, just like a hockey stick looks at. We will have a couple of tough months, as we talk about.

BARTIROMO: So, this is the next two months.

MCCARTHY: But we could have the strongest economy.

BARTIROMO: You said the...

MCCARTHY: Yes.

BARTIROMO: You said the next two months. And Secretary Mnuchin said the same thing, 10 to 12 weeks, to address the dislocation, just in the next 10 to 12 weeks.

So, does that mean we're getting another stimulus, a fourth package after the next 10 to 12 weeks?

MCCARTHY: I'm not sure we need a fourth package.

And before we go to start drafting a forth package, I'd like these three packages we just put out -- remember, it's more than $2 trillion, the largest we have ever seen -- to take care and get this economy moving.

Remember, for unemployment insurance, we're adding another $600 above what your state pays.

BARTIROMO: Yes.

MCCARTHY: We start paying in the first week, and we give you additional 13 weeks.

What concerns me is, when I listen to Nancy Pelosi talk about a fourth package now, it's because she didn't get in the things that she really wanted...

BARTIROMO: Yes.

MCCARTHY: ... to change the election law, a Green New Deal, expand -- make us pay for Planned Parenthood, and expand what you're seeing for sanctuary cities.

Those are the things why this bill was held up for a week, but those are the things that we stopped.

BARTIROMO: That is so outrageous that you were actually being asked to consider funding Planned Parenthood, at a time that we are in this crisis situation, where you're trying to come up with a relief package.

I just want to share with you what Nancy Pelosi said this morning, though, Congressman because she is just saying this right now: "President Trump denial at the beginning of this was deadly," and that, right now, "As he fiddles" -- her words -- "as he fiddles, people are dying."

This is what Nancy Pelosi said this morning. Your reaction?

MCCARTHY: Well, what I see is that Nancy is trying to cover herself and the Democratic Party, because the amount of damage that they had just done in the last week, requesting about changing election law, that her number three in her own party said they wanted to restructure government, take the opportunity of a crisis.

And, Maria, what happened last week, 3.2 million Americans lost their job, six times higher than in the financial crisis, higher than the Great Depression, all because Democrats wanted to put their liberal parts in.

But this president fought for it. This president stopped that. And what's most importantly is, history will not be kind to the Democrats. Holding up that week was so critical. When you look at the action that President Trump took, one of the first to stop that the Chinese would be coming into America, or Europe as well.

And their own party criticized the president for doing those actions, but it saved thousands of lives, just as he wanted to move this bill. I was sitting in that meeting last Sunday. This bill is 99 percent...

BARTIROMO: Right.

MCCARTHY: ... where it was last Sunday.

But Nancy Pelosi held it up, bragged to her members in the idea of changing Green New Deal, Planned Parenthood, changing election law, and expanding sanctuary cities, nothing to do with coronavirus.

They did get 24 million more dollars for the Kennedy Center.

BARTIROMO: Well, it's incredible, because she tells -- she -- yes, exactly, $25 million for the Kennedy Center.

And yet she tells a completely different story. You know this. You know that said she did jujitsu on the plan. She said, we had to do jujitsu to change it to get it where it is.

And then, of course, you have got Alexandria Ocasio-Cortez and what she said on Friday. Watch this. Got to get your reaction, Congressman.

(BEGIN VIDEO CLIP)

REP. ALEXANDRIA OCASIO-CORTEZ (D-NY): What did the Senate majority fight for? One of the largest corporate bailouts, with as few strings as possible in American history. Shameful. The greed of that fight is wrong.

(END VIDEO CLIP)

BARTIROMO: You saw that. Your reaction?

MCCARTHY: Yes.

Well, it's not a time for theatrics. This is time to actually get the bill done. But if you listen to these Democrats, that is exactly what they want to do. They are more concerned about a foreign country or foreign individual than they are about America themselves.

And not only do we have to fight this. Remember, the virus is here. We didn't invite it. We didn't ask for it. But we will defeat it together. And that's exactly what this bill does.

Unfortunately, we were held up a week by the Democrats; 99 percent of this bill was done last week. It's exactly the same, from the 13 extra weeks, from the small business, from the large business, from the hospitals.

But Pelosi is in trouble, based upon hurting Americans, because they want to restructure this to look more like the social views they believe in.

BARTIROMO: Yes.

So, let's end on some optimism, Congressman, because I know that you had a phone call this morning with managers of businesses, CEOs in the pharma sector.

Tell us what you're expecting. And this feels like a newfound partnership between business and government right now. I know that the president has been calling lots of different groups, CEOs, to the White House to try to figure out how business can help here.

What have you learned?

MCCARTHY: This is the great thing about America, the ingenuity.

I was talking to a consortium, from the very best medical individuals to the very highest CEOs, working together with government to get that personal protection equipment coming into America

And, as we know, China has gotten a large portion of that supply chain. Unfortunately, we just found out -- one of the highest CEOs told me she came in and took one of our factories where we were purchasing millions of the equipment to come over here to give it to France, because they are trying to take more of the market share for Huawei, that France will agree to allow Huawei into their industry, once again, from the equipment, to using this tragic situation to get more of the supply chain in another industry.

But what we're seeing in America, look at what Abbott just came out this week, that they have a new ability to get test results for coronavirus in as fast as five minutes.

BARTIROMO: Yes, wow.

MCCARTHY: We're already into a trial one test for a virus.

The ingenuity of America will overcome this. We will be stronger. But we have to look at the supply chain, something that President Trump has told us about from the very beginning.

BARTIROMO: Yes.

MCCARTHY: China has too much control of our medical equipment, too much control when it comes to pharmaceuticals, too much control of critical minerals.

We have got to take this back and keep it inside America, so we can combat not only this, but other things in the future.

BARTIROMO: Definitely one of the most important lessons from all of this.

House Minority Leader Kevin McCarthy, good to see you, sir. Thanks so much.

MCCARTHY: We will talk to you soon.

As the coronavirus pandemic continues to push the U.S. closer to a recession, when can we expect the economy to get moving again?

Director of the National Economic Council Larry Kudlow will join me live next right here.

Stay with us.

(COMMERCIAL BREAK)

BARTIROMO: Welcome back.

The Trump administration facing a critical question amid the coronavirus pandemic: when to reopen the economy.

The president last week suggested that he would like it to happen on Easter, or before, two weeks from today. But with nearly 20,000 new cases confirmed since yesterday, and a record number of Americans filing for unemployment, will it be months, not weeks?

Joining me now to talk about that is Larry Kudlow. He's the director of the National Economic Council.

And, Larry, it's always a pleasure to see you. Thank you for being here.

Are you wrangling with this question every day, when to open the economy?

LARRY KUDLOW, DIRECTOR, NATIONAL ECONOMIC COUNCIL: Well, look, it's an important question.

I mean, everybody is leaning towards keeping America's great economy as -- first of all, as stable as we can in the next few weeks. Maybe it's going to take longer. I don't know. But, obviously, all the economic assistance packages, $6.2 trillion -- as you know, we're giving -- we're going to give direct assistance to 175 million people to the tune of $600 billion.

But we have to do what we do. And we're going to be looking at all kinds of data and testing and hospital capacity and the delivery of all the medical devices and ventilators.

That will all go into the calculation. But I got to say, the president has always said and continues to say that the health and safety of the American people comes first. And I don't think we will be able to mount a truly strong economy again -- I mean, I think we will come back strong, but a lot of this depends on the virus and whether we can flatten it out and get it to hook down.

BARTIROMO: Right.

KUDLOW: So, it is what it is.

We are preparing the greatest Main Street, middle-class financial assistance package in the history of this country to get folks through this period.

BARTIROMO: Yes.

KUDLOW: That's the idea, get them through this period.

BARTIROMO: Larry, one of those data points -- one of those data points that you mentioned obviously are jobless claims. And we have the graphic of the unemployment benefits from last week which, of course, are more than three million, 3.28 million.

And we see that spike just in the last week as people are filing for unemployment benefits. What specifically are -- is this plan doing for those people who have filed for unemployment claims, as we see this number all the way up to 3.28 million, Larry?

KUDLOW: Well, two things.

First of all, the direct tax rebates will go out. That's about $250 billion, $300 billion. That goes to the 175 million Americans. So that's point number one. Now, I say that because that will come first, all right?

And that will come in a couple of weeks. That is a bridge to the unemployment compensation, which, as you know, we plussed up substantially. That is going to come in at least $300 billion.

So the direct payments bridge to the unemployment. And in the meantime, we will be providing the assistance to the small businesses. Secretary Mnuchin told me this morning, by next Friday, we will be in shape to implement the small business assistance plan.

That's another $350-$400 billion, provided, Maria, provided that they keep folks on their payroll. And then, of course, we fixed up the sick leave with respect to people who might have the virus and their families and the kids who are staying home.

So, there's a very significant assistance plan, a very significant assistance plan, while we get through this.

BARTIROMO: Larry, do you worry -- do you worry that some of this assistance, some of this assistance, Larry, has people making more money to stay home than they would be making on the job?

Do you worry that, long term, there's a negative here in terms of giving people money to stay home? This is something that Lindsey Graham is worried about for longer term in the economy. How do you see it?

KUDLOW: Well, look, some of my friends in the Senate and House have said that to me.

First of all, right now, with this pandemic, we have to do whatever it takes to keep people going. That's point number one, I mean, just daily living expenses and so forth.

Point number two, we did plus up the unemployment insurance. Now, remember, there's federal but it's state.

BARTIROMO: Yes.

KUDLOW: So the complaint that it's paying more, some states get more, some states get less.

The package is designed for four months, Maria. It's not going to go on forever. Now, we are dependent on the state of the virus and whether it's flattening out and going to hook down. But it is not something that's going to go on for years.

I have always said this. This is a matter of weeks and months, not years.

BARTIROMO: But once you take...

KUDLOW: And, prayerfully, I say that.

Hopefully and -- hopefully and prayerfully, Maria, this will be a matter of weeks. That's what our great hope is.

BARTIROMO: Yes. It's a matter of weeks for some things.

But, Larry, what about the government taking equity stakes in businesses? You are going to be taking equity stakes in the airlines?

Secretary Mnuchin on Friday on "Mornings With Maria" told me that now the airlines are being looked at as national security? Is Boeing national security as well? Are you taking equity stakes in more than just the airlines? And that's long-term, right?

The government is going to be a shareholder? Is the government going to be an activist shareholder, wanting to tell these companies how to run their businesses, Larry?

KUDLOW: I don't think we will be activist, but we are laying down some conditions, as I think you know, no stock buybacks, no executive compensation increases, things of that sort.

But, look, I think Secretary Mnuchin is right. I think the president is right. He's made the same point. You're either for economic security or national security. You cannot run a country with a vibrant economy like ours without the airline channels.

You have got to have air channel. You have got to have trucking channels, and so, yes. Now, remember...

BARTIROMO: I know, but does that mean you have to have government as a shareholder, Larry? Do you have to have government as a shareholder?

KUDLOW: Well, I think -- I think, in return for direct cash grants, which is what the airlines have asked for, I see no reason why the American taxpayer shouldn't get a piece of the rock.

You're talking about warrants here. And I think we have tried this before, 10 or 12 years ago, and, actually, the taxpayers made a good deal of money off these deals.

But I do feel, in return for the direct cash grants, which is somewhat unusual, we should have a piece of the equity there. And I think that will help to anchor this whole story. We will wind up, hopefully, really, God bless, hopefully...

BARTIROMO: OK.

KUDLOW: ... in our strong economy -- don't forget free enterprise incentives.

BARTIROMO: Yes.

KUDLOW: It seems like a million years ago, but low taxes and low regulations and energy independence and better trade deals, we were set for a tremendous growth rate this year.

BARTIROMO: Yes. And...

KUDLOW: And so now the -- now the virus comes down, OK, and so everything stops.

BARTIROMO: Yes.

KUDLOW: But we will continue. And I think we will come out the other side in a very strong, job-gaining, profitable economy.

BARTIROMO: Larry, you're doing a great job.

And I know you're working hard for the American people. Thanks so much. And thanks for joining me this morning, Larry. Good to see you, sir.

KUDLOW: Thanks, Maria. Appreciate it very much.

BARTIROMO: Larry Kudlow there.

As a record number of Americans file for unemployment, the government is preparing to send those emergency relief checks to millions of Americans.

My next guest was an early advocate of the direct cash payment, Arkansas Senator Tom Cotton is next.

(COMMERCIAL BREAK)

BARTIROMO: Welcome back.

Just three months after the first known case of coronavirus was identified in Wuhan, China, the pandemic has wrapped its way across the globe, infecting more than 678,000 people in more than 173 countries.

My next guest was the first Senate member to raise concerns about this crisis, telling his colleagues back on January 30 that it was -- quote -- "the biggest and most important story in the world" and that China was lying about it.

Joining me right now is Republican Senator Tom Cotton of Arkansas.

And, Senator, it's good to have you this morning. Thanks very much for being here.

I saw a tweet that you put out this morning about China opening its -- opening its movie theaters and then closing them again. And you raised questions about whether or not, in fact, the pandemic is gone in China.

Are they still lying?

SEN. TOM COTTON (R-AR): Yes, Maria, the Chinese Communist Party is still lying.

Back in January, I knew that this virus had the potential to become a worldwide pandemic for two reasons, not because I'm a scientist or an epidemiologist, but because I could see, one, how the Chinese Communist Party was lying, and, two, the dramatic extreme measures they were taking, like locking in 75 million people into their homes and apartment buildings.

Those two things simply didn't line up. You see it again today. So, for instance, China says they have no more new cases, no more new deaths, yet they just closed all movie theaters nationwide only a few days after having opened them up.

Or look at some of the mortuaries in Wuhan themselves -- itself. They say they have only had 2,500 cases that have resulted in deaths or so, yet a single mortuary has ordered more than 5,000 urns.

You can look at the basic facts to know that the Chinese Communist Party is still lying today ,as they were in December and January. And that's why what could have been a local health problem in Wuhan turned into a global pandemic, from which more than 2,000 Americans have now died.

BARTIROMO: Wow.

And, in fact, you had questioned how it originated from the beginning. You joined me one month ago, and I asked you how this started. And here is what you said.

Listen to this. I have got to get your reaction to this. Watch.

(BEGIN VIDEO CLIP)

COTTON: We don't know where it originated, but we do know that we have to get to the bottom of that.

We also know that just a few miles away from that food market is China's only biosafety level four super laboratory that researches human infectious diseases.

Now, we don't have evidence that this disease originated there, but because of China's duplicity and dishonesty from the beginning, we need to at least ask the question to see what the evidence says, and China right now is not giving any evidence on that question at all.

(END VIDEO CLIP)

BARTIROMO: In fact, Senator, they didn't allow the CDC in to get to the bottom of it to investigate how this originated, the severity of it.

Can you tell us more about this super lab, this level four biochemical lab that you mentioned in Wuhan? What do they do there?

COTTON: Yes, Maria, it's not just that they won't allow the CDC into the country.

They also have kicked out reporters from The Wall Street Journal, The New York Times and The Washington Post. That's the hallmark of a communist government that is trying to cover up the biggest story in the world.

What we know now is about the same as what we knew a month ago, very little. We do know that the virus didn't originate in that food market or the wet market or whatever you want to call it in Wuhan. Even the Chinese Communist Party has now acknowledged some -- that.

All the way back in December, though, we knew that origin story was a myth. The Lancet published a study of the first 40 cases of coronavirus, and 14 of them had no contact with that market. So the virus went into that market, which acted as an accelerant, before it came out of that market.

As for what's happened in that biosafety level four laboratory, the super lab in Wuhan, we still don't know, because the Chinese Communist Party refuses to come clean. We do know that they have researched coronaviruses. And there are legitimate reasons to research coronaviruses, trying to identify perhaps therapeutic drugs or vaccines.

But we don't know the origin of this virus still to this day.

BARTIROMO: Well, one thing we do know is an incredible reliance on China for some of the most important things that our country needs.

I'm talking about pharmaceuticals, and the active ingredients in our prescription drugs are made in China. How incredible is this? And how long has this been going on in terms of this incredible reliance on China, so much so that, in the middle of this virus, Beijing-run media, state-run media, came out with a story saying, well, maybe the communist government will withhold those prescription drugs right now from America, just when they need it?

COTTON: Yes, it's a true scandal, Maria, going back 30 years.

This is part of the thing that President Trump means when he says our leaders were so foolish for so long to outsource so much of our basic productive capacity to China.

I think most Americans have been shocked to learn that we depend upon China for things like penicillin, antibiotics, ibuprofen, acetaminophen, to say nothing of dozens of basic pharmaceutical ingredients.

That's why I have legislation that would insist that we stop our reliance on China, that we bring back that manufacturing capability to the United States and give tax incentives for people who do that, that we use the federal government's purchasing power through agencies and programs like Medicare, Medicaid, the Department of Defense and the VA, to create a domestic market for pharmaceuticals made in America, and that we ultimately cut off the imports of all Chinese drugs.

BARTIROMO: And, in fact, the Chinese are attacking the U.S., for calling it the Wuhan virus, even though it, in fact, did originate in Wuhan. It is the Chinese virus, correct?

COTTON: It did originate in Wuhan.

The Chinese Communist Party has had a deliberate misinformation campaign. In capitals all around the world, their ambassadors have been alleging that the U.S. Army created this and spread it in Wuhan last year. That's one of the reasons why it's so important that we be clear and that we not succumb to politically correct demands that we call it anything other than the China virus or the Wuhan virus...

BARTIROMO: Yes.

COTTON: ... while China is actively spreading disinformation around the world.

BARTIROMO: Real quick, do you think China will be held accountable for this disease, given the downplaying of it from the start?

COTTON: Yes, Maria, they will, when they lose things like the manufacturing capacity that we have outsourced to them, or when other democratic governments around the world respond to their people, who know that China is responsible for this virus.

BARTIROMO: OK. Senator, thank you.

COTTON: Thank you.

BARTIROMO: It's great to see you this morning, Tom Cotton. Thank you.

(COMMERCIAL BREAK)

BARTIROMO: Welcome back.

President Trump signing the largest economic stimulus bill, a relief bill, in U.S. history, as states across the country ramp up efforts to battle the fast spread of coronavirus.

Scientists are scrambling to develop the vaccine and therapeutics as we speak.

Joining me right now is South Carolina Republican Senator Lindsey Graham. He's chairman of the Senate Judiciary Committee.

Mr. Chairman, it's always a pleasure to see you. Thanks very much for being here.

SEN. LINDSEY GRAHAM (R-SC): Thank you.

BARTIROMO: And you as well have been wrangling with the idea of whether or not to open the economy during this pandemic.

But you say you have spoken with Dr. Fauci this weekend, and you want to err on the side of caution.

GRAHAM: Right.

Yes, so, I talked to Dr. Fauci. And there's a -- we're at war with the virus. There's a spring campaign plan, a summer campaign plan, and a fall campaign plan. This will come back in the fall. But I think the heat in the summer will lower transmissions.

The virus generally doesn't do well in heat. So here is what Dr. Fauci said. To reopen the economy, you have to have a breakthrough in testing. We have got to get testing back in real time, not four or five days.

So if you have got a county out there with no infections, the only way we can safely open that county up for business is to have a testing regime we don't have today. So I'd wait until it got warmer before I tried to open up any parts of the economy.

We need a risk assessment next week. And before we actually start turning the economy on, I think we need a breakthrough in testing, and we need the support from the summer. That, to me, would be the cautious approach.

BARTIROMO: But what about the president saying, look, the cure cannot be worse than the virus?

We are talking about a recession at hand.

GRAHAM: Yes.

BARTIROMO: We're already in a contraction, and we're expecting the economy to worsen, no business, no profits, no economic activity whatsoever.

GRAHAM: Yes, that's the balance we're trying to make.

To try to create a bump in the economy, you don't want to create a spike in the disease. The president said safety first, economic rebounding second. This package is going to be a lifeline to people out of work.

It's going to be a lifeline to businesses who have no revenue. So this bill we pass is going to help people for a couple of months. The summer will be here before you know it.

In the spring, what I would do is ramp up my medical supplies. I'd try to focus on testing, antibiotics and therapies to destroy the disease in the fall. So this risk assessment that's coming out next week about what parts of the economy you may reopen, I don't think you can safely open up any part of the economy until we have more testing.

BARTIROMO: Let me ask you about this stimulus bill, this relief package, if you will. It's more of a relief package than anything else.

GRAHAM: Right.

BARTIROMO: You had issue with the loophole around unemployment, basically giving money to people to stay at home. Explain that for us, Senator.

GRAHAM: OK, so if you make $15 an hour, for a 40-hour week, that's $600 a week.

My goal was to make sure that, in the unemployment part of the package, we made you whole, that you were laid off, no fault to your own, you would get $600 a week.

What we did in the package is that we plussed up unemployment benefits so you will get $926 a week if you live in South Carolina. We increased your pay by 50 percent. That's going to make it harder to get people back into the work force. It's going to incentivize people not to go back into the work force, and it's going to make it harder for people to hire new employees.

If you're Amazon and Walmart, the hourly wage not to work in South Carolina is $23.14. I'm all for helping people. How did this happen?

They tell us, at the state level, it would take six to eight months to create a computer program to pay the difference between the state unemployment benefit and your actual age. So what do we do? We just put $600 on top of it. So we took we took a $1,500 -- a $15-an-hour employee who was making $600 working, we're going to pay them $926 in South Carolina not to work.

We need to fix that.

BARTIROMO: How are you going to fix it?

GRAHAM: Get some state to figure software that can pay you the difference between the maximum benefit per week of $326 and $600.

They tell me that can't be done. We sent two men to the moon. Now, Steven Mnuchin, this is not his fault.

BARTIROMO: Huh.

GRAHAM: We have a $600 federal benefit on top of the state benefit.

We have a situation where people are getting 100 percent pay raise not to work. We have got to fix that. Some smart person needs to develop software that can pay your actual wages, not increase your wages and unemployment.

BARTIROMO: Well take us behind the curtain to tell us how this all shook out, Senator, because Nancy Pelosi said she did jujitsu on this relief bill...

GRAHAM: Right.

BARTIROMO: ... to get it where it needs to be.

(LAUGHTER)

GRAHAM: Yes.

BARTIROMO: And this morning, this weekend, she is saying that the president is fiddling around while people are dying, Senator.

GRAHAM: No, what she said, she's blaming the president of the United States for people dying because of the way he's led the country. That's the most shameful, disgusting statement by any politician in modern history.

Let me tell you, we have seen the best of America from our citizens helping each other, delivering groceries, having special shopping hours for senior citizens. She's the first politician to blame another politician for people dying.

This is the same speaker of the House who held up the bill in the Senate for days because she wanted same-day voting, she wanted carbon neutrality for the airlines, she wanted $75 million for the endowment for the humanities, and $25 million for the Kennedy Center.

She is the one that held up the package in the Senate for days to get the Green New Deal put in a recovery package. So it's the most shameful, disgusting thing I have heard yet. And it needs to stop.

BARTIROMO: Well, you agreed to send $25 million to the Kennedy Center. You put that in a so-called relief bill, right?

GRAHAM: Yes, because she wouldn't let the -- yes, so, she put a gun to our head and said, we will not get this through the House until you put $25 million for the Kennedy Center.

She wanted the entire New Green Deal in the package. She wanted to have every airline has to be carbon-neutral by 2025. What the hell has that got to do with saving lives who are affected by the coronavirus?

She had the entire Green New Deal in the package. We took most of the garbage out. But for her to blame this president for causing loss of life, after she held up the relief package for days to get a liberal special interest shopping list in the bill, is pretty disgusting.

BARTIROMO: It's absolutely extraordinary.

Senator, it's good to see you this morning. Thanks very much for joining me.

The conversation continues.

GRAHAM: Thank you.

BARTIROMO: Senator Lindsey Graham, thank you, sir.

Health experts are warning, New Orleans to be the next big coronavirus hot spot. I will talk with Louisiana Senator John Kennedy next, as we look ahead on "Sunday Morning Futures."

We will be right back.

(COMMERCIAL BREAK)

BARTIROMO: Welcome back.

The CDC issuing a domestic travel advisory for New York, New Jersey, and Connecticut, with New York now outranking most countries -- countries -- in coronavirus cases.

Meanwhile, several other urban areas across the country are preparing for what could be their worst weeks yet amid the pandemic, including New Orleans, which health experts say could be the next big hot spot.

Joining me right now from the great state of Louisiana, Republican Senator John Kennedy.

Senator, it's great to have you this morning. Thanks very much for joining us.

SEN. JOHN KENNEDY (R-LA): Thank you, Maria.

BARTIROMO: What do we know about New Orleans, about Louisiana, in terms of the number of cases, and how the state is preparing for what seems to be coming at you?

KENNEDY: We are coping, Maria.

We have about 3,300 cases. We have had around 130 deaths. We're clearly a hot spot. It began in New Orleans and is kind of moving out through the -- throughout the state. We are -- the -- we're trying to save lives, and we're also trying to save livelihoods, because our economy is shut down.

The legislation we just passed will help. It'll get money directly to people, to hospitals, to businesses.

I will say that a lot of my people are very upset at the spending porn on pet projects that was slipped into the bill. But my people are also grateful for help from the American taxpayer.

BARTIROMO: Well, let's talk about that.

What do you see as porn that you were forced to put in here? Lindsey Graham just came on and said that his colleagues on the left -- or he said Nancy Pelosi specifically put a gun to his head in terms of getting that $25 million in there for the Kennedy Center.

What else falls under the word porn, as you put it?

KENNEDY: Well, you know, life is hard, but it's harder when you're stupid.

And there's an enormous amount of spending porn on pet projects that was put into this bill by some powerful members of Congress. They think the American people, I guess, are morons and won't notice, but they did.

It's why so many Americans think there's no intelligent life in Washington, D.C. It's why Congress polls right up there with robo-calls and sinkholes.

This is what many Americans heard members of Congress say: Oh, my God, we could run out of ventilators. Oh, my God, people could die. Quick, let's give money to the Kennedy Center and the post office.

Now, that tells the American people that common sense is dead in Washington, D.C. It wasn't a Lincoln moment. Nonetheless, those of us who are fiscal conservatives, we swallowed it. We had to. We passed the bill. I think it's going to help the American people.

But a pox on the House and houses of all of those members of Congress who took advantage of this disaster, this tragedy, to take care of their pet projects.

BARTIROMO: Yes.

And you said to me when we spoke over the phone that there will be other things that will come to light that people will recognize that are in this bill and continue to anger people.

KENNEDY: Yes.

BARTIROMO: I want you to walk through some of that, because something you mentioned to me when we were talking on the phone about suntan location?

We will take a quick break, and then we want to come back with that, Senator.

Senator John Kennedy is with me this morning. We are looking ahead on "Sunday Morning Futures," and he is walking us through the bill.

Back in a moment.

(COMMERCIAL BREAK)

BARTIROMO: Welcome back.

And we are back with Louisiana Senator John Kennedy.

And, Senator, we're talking about what is in this relief package. And over the weekend, you mentioned to me something about suntan location that people were not aware of that's in this bill.

Can you tell us what's in the bill that we are unaware of?

KENNEDY: Yes, there's all kind of porn in this bill.

There's a provision to speed up FDA review of sunscreen products. There's money in this bill for the National Endowment for the Arts, for the National Endowment for Humanities. There's money in this bill for housing. There's money in this bill for NASA. There's money in this bill for a $500,000 water project in Utah.

There's -- I mean, I made a list, Maria. There's money in here for the Smithsonian.

BARTIROMO: So, you had to agree to all of this -- yes.

KENNEDY: I love the Smithsonian, but it's not a priority right now.

And let me say one more thing. The U.S. -- the Department of Treasury in Washington is holding $26 billion of uncashed savings bonds that belong to the American people. I tried to put a provision in to tell Treasury to give the names and addresses to the state treasurer, so they can start getting this money back to people when they really need it.

I was told oh, it's not relevant to the bill. And then I pick up the bill and see stuff in here like sunscreen review at the FDA, money for housing...

BARTIROMO: Unbelievable.

KENNEDY: ... money for NASA. I mean, it's perverse.

BARTIROMO: So, you had to agree -- you had to agree to all of this? You had to agree to all of this to get your colleagues on the left to vote for unemployment benefits and to get cash into America's pockets during this recession, critical moment in time?

That's the only way you could get their vote?

KENNEDY: Yes.

And it was started by Speaker Pelosi with her left-of-Lenin bridge-to- nowhere projects. But I think, once we drill down, we're going to find out that she's not the only one. I think some other people in powerful positions piled on.And I don't like it. And it's not fair to the American people.

Now look, I'm tight as a tick. I squeak when I walk, I'm so cheap with taxpayer money. But I said, look, this is necessary. I swallowed it and said, we're going to spend $2 trillion-plus because the American people need it.

But when I pick up this bill, and see this kind of spending porn for people who are taking advantage of a catastrophe for the American people, it pisses me off.

BARTIROMO: Well, I will tell you what is upsetting Americans, and it's this reliance on China for so many important products, like the active ingredients in our prescription drugs.

And speaking of spending, who is buying all this debt, Senator? China?

KENNEDY: Well, let me speak to that -- your observation about China, because it's a very good one.

In capitalism, in free markets, our people produce products and product components at the cheapest venue. But, sometimes, the cheapest is not in your national interest.

BARTIROMO: Right.

KENNEDY: And we may be able to buy components for pharmaceutical drugs cheaper in China, but we have learned through this experience that that may not be in the national interest.

And after this is over...

BARTIROMO: Yes.

KENNEDY: ... and we beat the virus -- and we will -- you're going to see some changes made...

BARTIROMO: So, what are you going to do about it?

KENNEDY: ... long overdue.

BARTIROMO: Yes, you're right.

We are looking for legislation to ensure that America is not so reliant on China. We know that they threatened to hold back those prescription drugs in the middle of all of this.

Senator, it's good to see you this morning. And we so appreciate all that you're doing.

KENNEDY: Thank you, Maria.

BARTIROMO: Thank you, sir, Senator John Kennedy.

That'll do it for us on "Sunday Morning Futures." Have a great day, everybody.

I will see you tomorrow morning on FOX Business, "Mornings With Maria."

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