Updated

This is a RUSH transcript from "The O'Reilly Factor," January 12, 2017. This copy may not be in its final form and may be updated.
Watch "The O'Reilly Factor" weeknights at 8 p.m. and 11 p.m. ET!

O'REILLY: "Unresolved Problem" segment tonight, a brand-new segment called the "Outrage of The Week." As you may know, Judge Jeanine Pirro has a very successful weekend show here on FNC. She is outspoken and passionate in her beliefs. So, we decided to give Judge Pirro this segment. We hope she doesn't blow it. And what is your first outrage of the week?

JUDGE JEANINE PIRRO, HOST OF "JUSTICE WITH JUDGE JEANINE": Well, it is an outrage that I think most Americans would be outraged about. And that is, there is a Democratic mayor in D.C. who is running what she calls a sanctuary city. Now, we know there are a lot of them in this country.

O'REILLY: Right.

PIRRO: But she is doubling down as a lot of the Democratic mayors are. And that means, she is putting money into these cities to make sure that illegal immigrants are not deported. She is putting a half a million dollars into funds so that lawyers can be hired to represent illegals in the event Donald Trump makes the decision to deport them and we know that that is what he's going to do.

O'REILLY: All right. So, tax money in Washington is federal tax dollars because the federal government runs out. It is not a state situation.

PIRRO: Right.

O'REILLY: So, all of us are paying that $500,000 initial payment to the fund. Now, I understand that D.C. has got a huge homeless problem, a big drug problem, a lot of social things that need attention, right?

PIRRO: And that is the very issue that is at the core here. If we are going to use taxpayer dollars to prioritize or represent those people who made the decision to come here illegally, then, we've got to say to the Americans who are here legally, many of them, if you are homeless, for example, in D.C., they have had a 14 percent increase in homelessness since in the last year, although, homelessness in the country, overall, is down. They've got a drug problem.

And by the way, when you think about homelessness, who is the biggest segment of homelessness in this country? Vets. All right? So, we have got American vets who are fighting for us who are not being taken care of while the illegals are being taken care of with our money.

O'REILLY: All right.

PIRRO: It's an outrage.

O'REILLY: All right, just to clarify the fund, so, this may Mayor Bowser takes a half-million dollars of money that she can use, discretionary money, for anything in Washington. And she establishes a fund to pay lawyers, who are going, then, to challenge any deportations the federal government may make in Washington of illegal aliens. Is that correct?

PIRRO: Right. Right. And Donald Trump has made it clear that this is what he's going to do.

O'REILLY: For criminals though, that is the priority that President-elect Trump has said, if you're a criminal, we will going to come right after you. So, I don't think there's going to be sweeping up in D.C. chambermaids.

PIRRO: No, I don't think that it's going to happen.

O'REILLY: Right.

PIRRO: And even General Kelly today reaffirmed that, that it is going to be the criminals who are going to be prioritized here. But the whole idea of saying, look, we are going to take taxpayer money. And by the way, California is talking about the what, $10 million.

O'REILLY: Sure, they hired --

PIRRO: Eric Holder.

O'REILLY: Eric Holder and he is getting $25,000 a month as his law firm. And that is on the taxpayers of California. This is everybody, every American. So, what I think is going to happen, is the Trump administration is going to cut that money, going to punish Washington quickly and Mayor Bowser is going to be in real trouble fast.

PIRRO: And the way they're going to do that is with Eric Sessions, the Attorney General, is going to bring federal lawsuit --

O'REILLY: Jeff Sessions.

PIRRO: I'm sorry, Jeff Sessions. Attorney General --

O'REILLY: Right.

PIRRO: He is going to bring lawsuits. Also, he is going to pull back on the grants. Justice Department grants, Homeland Security grants --

O'REILLY: Right.

PIRRO: And in addition to that, he's got the House, he's got the Senate, he can pull back up to 25 percent of their --

O'REILLY: That is Jeanine Pirro's first outrage of the week. We're going to keep a record.

PIRRO: How did I do?

O'REILLY: What?

PIRRO: How did I do?

O'REILLY: You did okay.

PIRRO: Okay.

Content and Programming Copyright 2017 Fox News Network, LLC. ALL RIGHTS RESERVED. Copyright 2017 CQ-Roll Call, Inc. All materials herein are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of CQ-Roll Call. You may not alter or remove any trademark, copyright or other notice from copies of the content.