Updated

This is a rush transcript from "The Kelly File," January 8, 2016. This copy may not be in its final form and may be updated.

MEGYN KELLY, HOST, "THE KELLY FILE":  Breaking tonight, terror strikes America yet again.  And moments ago we got our first look at chilling new video of the attack that took place in Philadelphia late last night.  The south proclaimed jihadist, 30-year-old Edward Archer, emerges from the shadows in what appears to be Muslim dress.  He manages to fire off at least 11 shots by some reports, 13 at point blank range.  Even getting his arm inside the officer's car.  But in what appears to be nothing short after miracle, the officer survives.  And that's not all.

Welcome to "The Kelly File," everyone.  I'm Megyn Kelly.  Not only did 33- year-old Officer Jesse Hartnett survive, but even though he was badly hurt with among other injuries, a severed artery, we're told, he managed to give chase.  Firing off shots of his own, that hit his attempted assassin. Fellow officers would apprehend the terrorist just around the corner.  Both men in the hospital tonight.

Today, the officer's boss marveled at this young cop's remarkable display of bravery as he described exactly how this all unfolded.  Watch.

(BEGIN VIDEO CLIP)

RICHARD ROSS, PHILADELPHIA POLICE COMMISSIONER:  You can see the male in question going towards Police Officer Hartnett, already firing.  He is literally inside that car.  He's got his arm extended firing at Officer Hartnett.  I'm absolutely amazed that Officer Hartnett is here with us today.  This male fired at least 11 shots from a nine-millimeter at close range.  You can see he begins to run away.  Continues to fire even as he flees away.  This shot right here is absolutely one that demonstrates his valiant and his courage and bravery.  He exits his police vehicle.  Starts chase despite being seriously injured.  Returns fire.  He is able to strike the male at some point in time.  The weapon that this male used was a stolen police firearm.  It was stolen back in October of 2013.  It was reported.  And that is one of the things that you absolutely regret the most when an officer's gun is stolen, that it is used against one of your own.

(END VIDEO CLIP)

KELLY:  Tonight, authorities are searching the suspect's home as well as another property.  And reviewing his on-line activity.  Looking for any possible links to overseas terrorists.  We have an incredibly powerful lineup for you this evening, including the president of the Philadelphia Fraternal Order of Police who just met with the injured officer.  Charles Krauthammer on the White House response so far.  New York Congressman Peter King, a member of the House Homeland Security Committee.  And Dr. Sebastian Gorka on the threat to the homeland.  We also have Morten Storm, a former CIA double agent who infiltrated al Qaeda.  But we begin with the very latest on the investigation.

And Trace Gallagher reporting from our West Coast Newsroom.  Trace?

TRACE GALLAGHER, FOX NEWS CORRESPONDENT:  And Megyn, it is very important to know that today police in Philadelphia only showed the still shots of that shooting so this is the first time most of us are about to see the video in real-time.  And it is astonishing.  Not only does the gunman unload the semiautomatic handgun on the police cruiser but as he fires he continues moving.  You can see it there, toward the cruiser, toward the officer until his arm is in the driver's side window.  Officer Jesse Hartnett clearly trying to protect himself and was struck three times in the left arm.  Yes, he was able to get out of the patrol car, as you said returned fire, hitting the man one time.  The police said 11 shots now we know it was actually 13 shots at the police officer.  And listen now to the officer's desperate call to radio dispatch.

(BEGIN VIDEO CLIP)

JESSE HARTNETT, PHILADELPHIA POLICE OFFICER:  Shots fired!  Shots fired!  Six-0 and Spruce.  I'm shot.  I'm bleeding heavily!

UNIDENTIFIED FEMALE:  All cars stand by, we have an officer shot.  Six-zero and Spruce.  Repeating in the 18th district assisting the officer.  Six- zero and Spruce.  We have an officer down.

(END VIDEO CLIP)

GALLAGHER:  Back up patrol cars quickly capture the suspect now identified as 30-year-old Edward Archer who police say has confessed that he pledged his allegiance to ISIS and acted in the name of Islam.  Telling police, quote, "I follow Allah.  I pledge my allegiance to the Islamic State.  That is why I did what I did."  It is unclear if Archer has ties to ISIS members or other radical Islamic groups but police have searched two homes near Philly where Archer was known to live and are now scrubbing his social media footprint to see if he was influenced by any foreign or outside source.

Archer's mother says her son is a devout Muslim but that he is mentally ill from too many hits to the head playing football.  We have also found that Edward Archer has a long criminal record for theft, assault and firearms violations.  And in 2012 was charged with making terroristic threats but was never prosecuted.  He traveled to Egypt in 2012 and ABC News is reporting he also went to Saudi Arabia in 2011.  Police want to know why he went overseas and exactly how he obtained the gun that he allegedly used to try to assassinate Officer Hartnett.  Listen.

(BEGIN VIDEO CLIP)

ROSS:  It was stolen, back in October of 2013.  It was reported.  And that is one of the things that you absolutely regret the most when an officer's gun is stolen.  That it is used against one of your own.

(END VIDEO CLIP)

GALLAGHER:  Officer Hartnett served eight years in the coast guard before becoming a cop.  Today he was able to speak to his father from his hospital bed -- Megyn.

KELLY:  Trace, thank you.

Joining me now, John McNesby, president of the Philadelphia Fraternal Order of Police.  He just met with the injured officer.  Thank you so much for being here tonight.  We appreciate it.  So you met with him.  How is he?

JOHN MCNESBY, PHILADELPHIA FRATERNAL ORDER OF POLICE:  He's up.  He's alert.  He's with family.  He is with his girlfriend.  Surrounded by a lot of fellow officers and he is in good spirits considering he was almost assassinated last night.

KELLY:  What did he say?

MCNESBY:  He was lucky.  Very lucky.  You know.  He was targeted not because he was black, not because he was white.  He was targeted because he was wearing a badge.  He was in uniform.  And he was driving a Philadelphia police car.  And he feels very lucky.  He feels relieved.  His training kicked in.  And we're lucky to have him.  We could just as well be planning a funeral this evening.

KELLY:  He's a young guy.  Thirty three years old.  Did he speak at all?  He's been hit three times.  Artery severed.  Someone just tried to execute him in his patrol car.  Did he speak at all about the moment he got out and what that was like for him with one arm totally incapacitated?  But still having the courage to go after the bad guy.

MCNESBY:  You know, he didn't really elaborate on that.  Again, he was around family.  But he was just happy to be here.  You know, he's still a little groggy.  He had surgery today.  There's another surgery Monday.  And many more to follow.  Just to save his arm.

KELLY:  What kind of condition is he in?

MCNESBY:  He's in intensive care as we speak.  The next couple of days, he will be going through a lot of care through the doctors here who did a great job on him.  They think they are able to save his arm.  He is a true hero.  He is a true hero.  And he was targeted just because he was an officer wearing a uniform.

KELLY:  What did you make today of the mayor coming out and saying, this is about gun violence and had nothing to do with Islam even though the suspect says openly, yes, it did.

MCNESBY:  Listen, the guy said, you know, he is Islamic.  Whether he took too many hits to the head, it doesn't matter.  He opened fire.  And it starts at the top.  You know, we have to be out there supporting law enforcement.  Not only here in Philadelphia but around the country.  Whether it was Islam, whether he is Muslim, whether he followed ISIS, whatever it was, he is a terrorist.  He attacked one of our officers.  Everybody out there has to keep a vigilant eye open.  Not only here in Philadelphia but around the country.  I don't know whether it starts with the federal laws to make sure that this are enhanced sentencing.  Whether it's the parole board who, when they give somebody five years, make sure they stay in jail for five years.  Not three years, not two years, not say, hey, sorry, pat you on the back and let you out.  Whether it starts in Harrisburg, Washington, Philadelphia, we want to make sure that our officers are safe out there.

KELLY:  Absolutely.  John, all our best to you and to him tonight.  Officer Jesse Hartnett in the hospital, 33 years old.  Take care.

MCNESBY:  Thank you.

KELLY:  Well, my next guest says, killing law enforcement is straight out of the jihad handbook.  Dr. Sebastian Gorka provides counterterrorism training to the FBI and Special Forces.  He served as the major general Matthew C. Horner distinguished chair of military theory at Marine Corps University.  His website is TheGorkaBriefing.com.

Doctor, good to see you again tonight.  Straight out of jihadi hand book, what do you mean?

DR. SEBASTIAN GORKA, MARINE CORPS UNIVERSITY:  Well, if you just read that publication, which is essential if you are National Security practitioner, whether it is al Qaeda's in magazine or spy or even much more impressive Dabiq, "D-a-b-i-q" Dabiq magazine of ISIS, this is what they tell their adherence to do.  They have to destroy the west.  America is the pinnacle of the west.  And they are looking for symbolic targets.  That means servicemen.  It means peace officers that represent our system.  And also it means large crowds of unarmed civilians like the Boston bombing.  This is straight out of the jihadi playbook.

KELLY:  This guy's mother says he was very devout Muslim.  He, himself, according to law enforcement is saying he did it in the name of Islam.  And he travelled to Egypt in 2012 then came back.  How are we going to trace the trail of his radicalization?

GORKA:  Well, the FBI is going to be doing this right now.  We are going to find, if we already know this travel path, we are going to be finding links to some kind of ton spotter, some kind of Imam that provides the sanction for this.  We are going to find connections to a broader conspiracy.  There is no such thing as lone wolf terrorism.  The connective tissue between all of these attacks, whether it's Fort Hood, whether it's the Boston bombing or this, is of course the ideology of jihad.  And I don't understand how the mayor, I didn't know he had theological qualifications, can say this has nothing to do with Islam or jihad.  When somebody kills you and says, I'm killing you because you're black or because you're white, you don't get to say that is not a racial crime.  This is what they are trying to do right now -- Megyn.

KELLY:  We will going to play this -- the full mayor's soundbite with -- for the audience in our next segment.  And you will see what we were talking about.  But this guy was very quick to say, just nobody believes this has anything to do with Islam.  Well, guess what, Mr. Mayor?  You're not right.  You're wrong.  The question here is, whether anybody is going to acknowledge what we have seen Doctor over the past weeks and months, which is the threat of Jihadi violence here in America is clearly on the rise.

GORKA:  Look, the facts are out there.  We publish this in our report.  The threat knowledge group.  In the last 20 months, we have arrest that will kill more than 90 ISIS suspects in America.  My contact inside the FBI have said in the last 14 years, they have never seen a calendar year with so much jihadist activity on U.S. soil.  That is just a fact of the matter.  And the most scary thing of all, Megyn, 30 percent of the people we've interdicted have no intention of traveling to Syria or Iraq.  They've decided they want to kill Americans in America, like this policeman in Philly.

KELLY:  Dr. Sebastian Gorka, thank you, sir.

GORKA:  You're welcome.  Thanks, Megyn.

KELLY:  Well, as you just heard, there is growing frustration tonight.  After Philadelphia's mayor come to the microphone saying, this attack has nothing to do with the Islam.  Despite the fact that the attacker said it did.

(BEGIN VIDEO CLIP)

RICHARD ROSS, PHILADELPHIA COMMISSIONER: -- 30-year-old from Yeadon.  He has a Philadelphia address.  He's confessed to committing this cowardly act in the name of Islam.

JIM KENNEY, D-PHILADELPHIA MAYOR:  In no way shape or form does anyone in this room believe that Islam or the teaching of Islam has anything to do with what you have seen on that screen?

ROSS:  According to him he believes that the police defend laws that are contrary to the teachings of the Koran.

KENNEY:  This is a criminal with a stolen gun, who tried to kill one of our officers.  Has nothing to do with being a Muslim or following the Islamic faith.

(END VIDEO CLIP)

KELLY:  (sigh) Charles Krauthammer is next on that, the mayor, and what the White House just told "The Kelly File" about this attack.

Plus, Congressman Peter King, former chair of the House Homeland Security Committee is here on the new controversy over the surveillance of mosques, wait until you hear what New York City just did.

And then, after a week of Donald Trump raising questions about whether Ted Cruz is an American citizen, the senator has now taken a dramatic step, not really whether he is an American citizen, but whether he is a natural born one.  And we have got the details on that step he just took.

(BEGIN VIDEO CLIP)

SEN. TED CRUZ, R-TEXAS, PRESIDENTIAL CANDIDATE:  If you think about it, three weeks ago, just about all of the Republican candidates were attacking Donald Trump.  Today just about all of them are attacking me.  That kind of suggests maybe something changed.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

ROSS: -- 30-year-old from Yeadon.  He has a Philadelphia address.  He's confessed to committing this cowardly act in the name of Islam.

KENNEY:  In no way shape or form does anyone in this room believe that Islam or the teaching of Islam has anything to do with what you have seen on that screen?

ROSS:  According to him he believes that the police defend laws that are contrary to the teachings of the Koran.

KENNEY:  This is a criminal with a stolen gun, who tried to kill one of our officers.  Has nothing to do with being a Muslim or following the Islamic faith.

(END VIDEO CLIP)

KELLY:  (sigh) Breaking tonight, disagreement between the Philly Police Commissioner and the mayor and new questions about the Obama administration's response to the latest terror attack on the American soil. "The Kelly File" reached out to the White House tonight and was told they have, quote, "no comment on the attack.  Nothing so far."

Horrifying video shows the perpetrator trying to assassinate a Philly police officer.  The man claims it was done in the name of Islam.  Yet shortly after the attack, about 90 minutes after the police officials in Philly said it was in the name of Islam, the President's chief spokesman said, he knew nothing about it.  Watch.

(BEGIN VIDEO CLIP)

JOSH EARNEST, WHITE HOUSE PRESS SECRETARY:  I had not seen this before I walked out here.  So as usually is the case, there are other people at the White House who are aware of this, just given the quite, the tight turn around here, it did not make it waits to me.

(END VIDEO CLIP)

KELLY:  Charles Krauthammer is a syndicated columnist, FOX News contributor and author of the book "Things that Matter." Charles, good to see you.

CHARLES KRAUTHAMMER, FOX NEWS CONTRIBUTOR:  Good to see you.

KELLY:  So, OK, word didn't get to Josh Earnest within the 90 minutes between the time that they talked about it and the time that he came to the podium.  But now it's late in the evening and the White House has yet to issue any statement on the attempted murder of a police officer by a man who pledges allegiance to ISIS, follows Allah and says that is the reason he was called upon to do this.

KRAUTHAMMER:  With any other administration we would be astonished.  But with this administration we're not.  Because they simply refuse -- and it is not just becoming ridiculous, it is becoming tiresome.  Look, this was a jihadi attack, a terror attack within the United States, and you get no statement from the White House about this?

KELLY:  Uh-hm.

KRAUTHAMMER:  It's because they don't want to say what everybody understands, what the nature of this was.  I mean, it infects everybody.  I just heard a little earlier, I think there was the police chief in Philly, who said this has nothing to do with Islam.  Of course --

KELLY:  No, wait, stand by.  It wasn't the police chief.

KRAUTHAMMER:  OK.  Who was it?

KELLY:  It was the mayor.  The Democrat mayor there --

KRAUTHAMMER:  Then it was?

KELLY:  Jim Kenney.  And let's play it for the audience so they know what you are talking about.

KRAUTHAMMER:  That makes it worse.

KELLY:  Stand by.

(BEGIN VIDEO CLIP)

KENNEY:  In no way shape or form does anyone in this room believe that Islam or the teaching of Islam has anything to do with what you have seen on that screen?  That is abhorrent.  It's just -- it's terrible and it does not represent the religion in any way shape or form or any of its teachings.  And this is a criminal with a stolen gun, who tried to kill one of our officers.  Has nothing to do with being a Muslim or following the Islamic faith.

(END VIDEO CLIP)

KELLY:  Except according to him.  Except according to the actual attempted murderer.

KRAUTHAMMER:  Well, it's good to know that the mayor of that city is a Koran scholar.  Look, it is so absurd, I mean, you don't know where to turn.  Yes, of course you want to say this is not an act -- if you want, what you can say is, this is an act resulting from a strain of Islam.

KELLY:  Right.

KRAUTHAMMER:  Say that.

KELLY:  Is that so hard?

KRAUTHAMMER:  But the fact is -- but the fact is this is not a trivial strain.  It's on all five continents.  Dozens of countries.  There is a killing happening around the world somewhere in the name of the strain of Islam.  Everywhere.  I can name you a dozen countries in Africa alone.  And the fact is that the central tenant of this strain of Islam, is that there is a perpetual war against the infidel.  And that a good Muslim has to be involved in it.  Again, say it's a strain.  Nobody's implying it applies to all of Islam.  But the idea that it has nothing in any way to do with Islam, is absurd and it makes -- what it does is it drains any authority figure of any authority because it is so ridiculous.

KELLY:  Right.  They are so focused on protecting Islam.  And its reputation.  And any reasonable thinking person understands there is a difference between these radicals who do do this in the name of their version of Islam and the peace-loving Muslims who populate the earth.  But in this particular case, Charles, it is so egregious because the perpetrator came out and right after the police commissioner said, he committed -- he had confessed to committing this cowardly act in the name of Islam.  Because he believe it was required under the teachings of the Koran.  Within a breath, the Mayor says, it had nothing to do with Islam.  The Islamic faith.  Or being a Muslim.  Because one guy's a straight shooter and the other guy is worried about being politically correct.

KRAUTHAMMER:  And it isn't only here.  You see what happened with the events in Germany where there were these remarkable sort of completely out of control sexual assaults on New Year's Eve.  Perpetuated by, according to perpetrators, according to witnesses and the police report by men of Middle Eastern origin.  And yet, not only did the government stay away from that, it was suppressed in the media lest it stir up anti-Muslim feeling.  So, if that's your problem and that is what you are worried about, well then you ought to speak about that.  But you first of all, admit the truth.  You don't suppress it.  And then you say, let's not confuse the strain of Islam with Islam in general.

KELLY:  Yes.  And last time around in San Bernardino.  We got a lecture from the President about how we should not engage in a backlash against Muslims, which he puts right on the same footing as we just had the worst terror attack domestically since 9/11.  And here we are another domestic terror attack and there is nothing, nothing has been said by the White House.  I got leave it at that, Charles.  We're out of time.  Good to see you.

KRAUTHAMMER:  Thank you.

KELLY:  We are also learning new details tonight about how the FBI arrested two Iraqi refugees who had turned to terror here in the U.S.  One of whom had been fighting for an al Qaeda group just two years ago.  How did he get let back in?

Morten Storm, the former CIA double agent who infiltrated al Qaeda is just ahead.

Plus, Congressman Peter King is here with a warning about what the New York mayor wants to do when it comes to counterterrorism and Muslims.  Next.

(COMMERCIAL BREAK)

KELLY:  Breaking tonight, just hours before a suspected terrorist attempted to execute a Philadelphia police officer, the city of New York announced it would appoint a civilian observer to monitor police counterterrorism activities here as part of a settlement into high profile civil rights lawsuits.  But is this really necessary?

Joining me now, New York Republican Congressman Peter King, chairman of the House Subcommittee on Counterterrorism and Intelligence.  Congressman, good to see you tonight.  Thank you for being here.

REP. PETER KING (R-NY), HOUSE SUBCOMMITTEE ON COUNTERTERRORISM AND INTELLIGENCE:  Thank you, Megyn.  Thank you.

KELLY:  So, is it necessary?  They had to do it to settle the lawsuit but is it necessary that the cops really need a baby sitter?

KING:  No.  Listen.  The NYPD -- this is a gold standard for counterterrorism in our country.  They did a phenomenal job.  They should be getting medals.  And the Civil Liberties Union, the New York Times, the AP, all these critics, they should be dumped, thrown in the dump somewhere.  The fact is, the NYPD is not violating anyone's constitutional rights.  But they had to end the lawsuit.  They agreed to something which basically just going to be a civilian appointed by the mayor who is going to be sitting with other officials.  And apparently, if he sees something, he supposed to be --

KELLY:  So, he's supposed to makes sure that the NYPD does not infringe the constitutional rights in particular of Muslims in the city as the police try to combat terrorism.  So what is the status of surveillance of the mosque now in this city?  Are we still surveying mosques?

KING:  My understanding is, and I hope that the police are surveying anywhere they have to.  Wherever they think there's a possible threat, wherever they think they can be terrorism emanating from, that's where they should be surveilling.

KELLY:  So, that's one way of doing to try to find, you know.

KING:  Not just mosques.  You know, the community.  Organizations, clubs.

KELLY:  OK.  That's the other thing.  What they are saying in the Philadelphia case, is that this guy, according to the local mosques, they're all saying, he is not ours, he did not come to our mosques.  Now, I don't know whether that is true or not.  His mother said he was observant.  I mean, what are the cops supposed to do?  What are the counterterrorism officials supposed to do to catch a guy like this?

KING:  Again, to have as much surveillance as possible.  Infiltrate into the community.  Get informants.  The same thing I did going into the mafia, going after the westies, going after gangs in China town.  You go where the threat is emanating from.  And the Islamist threat comes from the Muslim community --

KELLY:  That's the pro.  And then you have the ACLU jumping up and down saying you are violating their civil liberties, you're targeting and you're profiling.

KING:  And they're not.  What you do is where the crime is coming from.  If you are looking for a member of the Ku Klux Klan, you're not going to be questioning blacks.  The fact is, you use common sense.  And you're not targeting a religion.  You are targeting the community where the threat is going to be coming from.  And as far as I'm concerned, the NYPD never violated constitutional rights.  We are not talking about search and seizure, we're not talking about wiretapping; we are talking about surveillance in public, in open, in going to clubs and communities.

KELLY:  What do you make of that Philadelphia mayor coming out there and saying, this has nothing to do with Islam?  I mean, moments after the police commissioner is quoting the defendant, the terrorist as saying, oh, it is all about Islam.  It's completely about the Koran.

KING:  Megyn, I'm sick and tired of people denying the reality.  The reality is that as Muslims are carrying out these atrocities -- listen, 99 percent of Muslims can be good Americans.  But the fact is all Muslim terrorists are coming from the Muslim community.  And they did it in the name of Allah.  And it is a strain of Islam but it's for real.  As millions and millions of Muslims around the world are willing to take part in jihad.  Now, there are many, many more millions who are not.  But the fact is, he did it as an Islamist.  And to say he didn't is ridiculous.

KELLY:  And not only that, the way this is place into what we seen happening against cops.

KING:  Right.

KELLY:  Cops put their lives on the line.  Every day they granted -- there are a couple bad ones out there, we've seen that.  But both in Paris and in Philadelphia last night, there was an attempted murderer of a police officer by a terrorist -- by Muslim terrorist.

KING: -- open season on cops.  We saw it last year in Queens, when they -- the cops were attacked for the Muslim with the hatchet, they were attacked.  We saw the Canadian parliament when they're going after officials.  Cops everywhere are under siege.  And this is what ISIS is putting out, the message is, attack cops, attack anyone in uniform.  Attack the military.  That's why our military families are under threat.  That's why cops anywhere are under threat.  And that's why right here in New York City tonight, the cops there is extra precaution to protect themselves from being attack.  And there will be Islamist terrorists who would attack them.

KELLY:  And then they walked to these rallies where people are saying, "pigs in a blanket, fry them like bacon," and "what do we want, dead cops, when do we want them, now."  It's a problem.  You can see it.  Great to see you.

KING:  Absolute disgrace.  Thank you, Megyn.

KELLY:  All the best.

Well, breaking tonight, new details on the FBI arrest of two Iraqi refugees living in the United States.  One of whom went over to Syria to fight for the terrorists and then we let him back in.  How exactly did that happen?  Morten Storm is the former CIA double agent who infiltrated Al Qaeda.  He is next with an answer.

Plus, with Donald Trump trying to take out Ted Cruz with questions about whether Cruz is a natural born citizen who could be President, we have brand polls out tonight on whether it's working.

TED CRUZ, PRESIDENTIAL CANDIDATE:  I feel confident that I am never going to have a plane with my name painted on it.  How do you run grass roots campaign?  It's very time-intensive.  You don't do it from a TV studio in Manhattan.

(COMMERCIAL BREAK)

KELLY:  Breaking tonight, new details on the FBI's arrest of two Iraqi refugees on terror charges, raising new concerns over the President's plan to accept 10,000 refugees into the United States.  This is new video of one of the suspects leaving a Houston courthouse today.  Both men were welcomed into our country and have been living here for years, but only recently did the FBI discover who they really are and what they've been up to.  Trace Gallagher is tracking that, Trace?

TRACE GALLAGHER:  And Megyn, let's begin with Al Jaed who fought along ISIS but actually bragged to a contact about executing three Syrian government soldiers.  The criminal complaint says in 2013 he flew from Chicago to Turkey, crossed into Syria, fought alongside several terror groups, and then came back to the U.S. and settled in Sacramento.  He apparently considered going back to Syria, writing that he was eager to see blood.  And that god has facilitated his travels.

Immigration authorities say when he came to this country, he lied about his travel and his ties to terror groups, which of course underscores the premise that it is nearly impossible to fully vet refugees, though today the White House tried to reverse that.  Listen.

(BEGIN VIDEO CLIP)

JOSH EARNEST, WHITE HOUSE PRESS SECRETARY:  As we see in these two cases, we've got law enforcement officials working closely with national security officials to take steps to keep us safe.

(END VIDEO CLIP)

GALLAGHER:  (Inaudible) is being held with no bond but authorities say there is no evidence he was planning to attack this country, but the same cannot be said of 24-year-old refugee Al Hardan who is now being held without bond in Houston, facing charges of providing support to ISIS and lying on his citizenship application.  Authorities have not released the entire case against Al Hardan, but Lieutenant Governor said "Based on the facts as we know them, today's action may have prevented a catastrophic terror-related event in the making and saved countless lives."

Texas Governor Greg Abbot said this is why he called for a halt to refugees entering the U.S. from countries substantially controlled by terrorists, Megyn?

KELLY:  Trace, thank you.

KELLY:  Also tonight, Republicans are doubling down on calls to block the President's plan to accept Syrian and Iraqi refugees.  As a growing number of European cities are stunned by an ugly wave of sexual assault allegedly committed by Mideast refugees.  Young German women reported the attacks on New Year's Eve.  Tonight, traumatized victims are popping up in a dozen European cities and now media are expressing their embarrassment at covering up the stories.  The details are eerily similar.  Look how many there, gangs of Arab and African men mobbing women on New Year's Eve.

Morten Storm is a former CIA double agent who infiltrated Al Qaeda.  He is co-author of the book Agent Storm, my life inside Al Qaeda and the CIA, Morten, thank you for being here.  Is this coordinated?

MORTEN STORM, FMR CIA DOUBLE AGENT INSIDE AL QAEDA:  You know sometimes you can believe that and if it is, it is just -- it is just proof that ISIS is able or whoever is behind this is able to really create some kind of chaos within Europe.

KELLY:  So if it is not coordinated, then how does it come about that thousands of Muslim refugees across Europe, at least five different countries, wind up sexually assaulting western women on New Year's Eve?

STORM:  Well, I am totally speechless because, as you know, we only hear about it a few days later.  And it came -- you know I was just told today that it happened in Finland, and it happened Austria, it happened Switzerland, you know different European countries.  And you know we have huge problem in Scandinavia, particularly in Scandinavia, in gang rapes, rapes from particularly from Muslim men who commit the rape.  Rape percentage is very, very high.

KELLY:  Why?

STORM:  I think it is the way that they look down upon the women in west.  It is a cultural thing in Islam, even women is servant to her husband, basically just servants.  And then think about the non-Muslim women have to be killed according to Islam.  So if non-Muslim women are kept as slaves, the Christians are held in Iraq and Syria, so these places -- so the whole attitude towards our women and you know I got two daughters and I am scared for their future here in Europe.  We cannot even defend ourselves.  We have no weapons.  We have no arms like you guys in America.

There is no way to defend our women against these kinds of attacks.

KELLY:  It is like in places like Norway, offering integration courses where they try to educate immigrants that we don't allow rapes of women here and women can dress however they want and they don't get sexually assaulted because of it.

STORM:  Can you believe that we need people in our countries, don't we have rights, European citizens, and don't we have rights to choose who we want into your countries.  It is proven by so long time, second generations failed to integrate into our society.  It is -- in Islam, it says that in the chapter called the clear proof, it says, murder those of disbelief from the people of the people of the scriptures and the pagans are the worst of creatures.

So the attitude towards us, how would they ever be able to integrate and respect us as they think they are better than us.

KELLY:  This is not all -- there are millions of refugees who go into some of the countries.  And it is not all of them who commit these crimes.  But it is obviously a big enough faction that it is causing real concern.  And apart from the sexual assault, people are worried about attempted Jihad, attempted murder.  The one in Sacramento here in the United States, this guy was online, talking about wanting to join the Jihad and joining terrorist.  Then what does he do?  He flies to Syria and spends time over there fighting with terrorists.  And then we let him back into the United States where we had given him refugee status.

We let him go to Syria, come back, online trail, he wants to meet terrorists.  How would you like to be his neighbor in Sacramento?  Oh, joy.

STORM:  I warned about this about before, warned against the people going into Syria and Iraq to come back again.  Once you've been out there, don't come back.  You lose citizenship.  Lose residence permit in America or in the west.  We have to protect ourselves.  We are at war.

KELLY:  Morten, thank you.

STORM:  Thank you.

KELLY:  Breaking tonight, we have a series of brand new fox polls.  As Donald Trump and Ted Cruz go head to head over what Mr. Trump calls questions about whether Senator Cruz can legally be President.  Rich Lowry and Howie Kurtz are next.

(COMMERCIAL BREAK)

KELLY:  Breaking tonight, after a week of Donald Trump raising what he calls questions about whether Senator Cruz can legally be President, we have brand new Fox News polls out on Republican nominee choice.  That's missing some words.  With the Presidential nominee, out of Iowa and New Hampshire, just 23 days away from the Hawkeye state's caucuses and Senator Ted Cruz is maintaining his lead now on competitor Donald Trump with just three weeks to go into the votes pouring in.  Cruz at 27, Trump at 23.

In New Hampshire however, the New York businessman has a comfortable lead at 33 percent.  Next closest is Rubio at 15, Cruz distant third at 12 percent there, Bush and Kasich round out the top five.  Joining me now Rich Lowry who is Editor at National Review and a Fox News contributor.  Howie Kurtz is the Host of "MediaBuzz" here on FNC.  It is getting -- but close to ugly -- mildly unattractive between Trump and Cruz.  Howie, you tell me, because of the poll numbers.

HOWARD KURTZ, "MEDIABUZZ" HOST:  Well, the fact that the race is really tight in Iowa with Cruz a few points ahead, Megyn.  Ted Cruz born in Canada, not that there is anything wrong in Canada, but shows the ability to drive the media agenda yet again, even though he says he is just answering reporter questions and Cruz brushing it off with a funny Fonzie video, asked about it by journalists day after day and actually having to take a step to release his mom's Delaware birth certificate even though, which I know you will talk about, even though nobody is questioning that Cruz's mother was an American citizen.

KELLY:  Just so the people know, you have to be a natural born citizen to be President of the United States and that means -- that's the argument.  Cruz was not born in the United States but he was born to an American mother.  So I am an American woman.  If I travel to Canada and have a baby, my baby is an American citizen.  But Trump is questioning that.  Rich, he released the birth certificate and has been trying to address this out on the campaign trail by explaining to people it is a non-issue.  Is Trump's attack effective by pushing Cruz off message?

RICH LOWRY, NATIONAL REVIEW:  Yeah.  It does get Cruz off his message and it does create a certain haze of doubt about Cruz's eligibility.  Although, every serious constitutional scholar looking at this says there is nothing to it.  And Trump is doing it in a completely underhanded way on the basis of this faux concern over Ted Cruz's interest.

KELLY:  None has any concern over the other.  They are competitors.  Why should they?

LOWRY:  This is one of the big friendships in politics.  Trump says Cruz is such a nice guy.  And Cruz says oh, it is only the establishment attacking me not my bosom buddy.

KELLY:  Oh, he wants Trump supporters.  He thinks Trump will collapse and supporters will come running it him.  So this is the beginning of the end between the two of them.

(BEGIN VIDEO CLIP)

CRUZ:  I feel confident that I am never going to have a plane with my name painted on it.  How do you run a grass roots campaign?  It is very time intensive.  It's labor intensive.  You don't do it sitting back in the easy chair.  You don't do it from a TV studio in Manhattan.

(END VIDEO CLIP)

KELLY:  Oh, that means I will never be President, Howie?

KURTZ:  I think Ted Cruz went into the strategy of not attacking Donald Trump because he looked at polls and 60 percent or 55 percent of Trump supporters would come to Cruz as a second choice.  So he is just not going to engage until he absolutely has to.  And meanwhile, in the building behind me, most of Cruz's colleagues, do not like the guy.  He wears that as a badge of honor talking about running against the Washington -- John McCain who went through this when he was the nominee...

KELLY:  He was born in Panama.

KURTZ:  Panama Canal Zone -- well that's different, once calling Cruz a wacko bird.  So it is getting a little heated as we approach Iowa.

KELLY:  I was born in a military base on U.S. soil and he was born on plain old ground in Canada.

LOWRY:  For anyone watching the prison shows that run on another cable network, that is what a shiv is.  What Cruz said about not running a campaign from a TV studio, everyone agrees the rules are different, besides being hated by other Senators, Ted Cruz is running a completely traditional campaign, based on message discipline, organization, and money.

KELLY:  I want it ask you, Rich about these polls in Iowa that show Cruz ahead.  But Trump's way ahead in New Hampshire.  Does it really matter to Trump if he loses Iowa and wins in New Hampshire?

LOWRY:  I think it does potentially.  Depends on how much he loses.  How it plays out.  But I think that Iowa is so important for Trump.  It could be the difference between going two for two in Iowa and New Hampshire, and immediately within eight days of the real voting, establishing a commanding position for the nomination.  Or losing Iowa and then depending on how it bounces, things can change a lot in that week between Iowa and New Hampshire, then potentially losing in New Hampshire as well.

(CROSSTALK)

KURTZ:  That is true but the media expectation now is that Cruz will probably win Iowa, therefore it may not hurt Trump that much if he comes back with a New Hampshire win just eight days later.

KELLY:  All right, I'm saying good bye to you.  But you should stick around and watch our next segment, great to see you both.  Because Power Ball mania sweeping the nation as the jackpot reaches a record setting $800 million, and up next, we will tell you how to win it.

(COMMERCIAL BREAK)

UNIDENTIFIED MALE:  From the world headquarters of Fox News, it's "The Kelly File" with Megyn Kelly.

KELLY:  So would you like to have $800 million?  It could be yours if you win tomorrow night's big Power Ball drawing.  The odds of winning are pegged at 1 and 292 million but, hey you never know.  Keagan Harsha from our Fox Denver affiliate has what you need to know to screw others over those other 291,999,000.

KEAGAN HARSHA, DENVER:  There is no secret to success or perfect recipe to picking winning Power Ball numbers.

UNIDENTIFIED MALE:  It is random.

HARSHA:  But there are a few dos and don'ts to keep in mind.

UNIDENTIFIED MALE:  For starters, don't use your kids' birthdays.  This is the one time you can forget about your anniversary date.  And you can toss that favorite jersey to the curb.

HARSHA:  Instead, don't pick the numbers at all.  The majority of Power Ball number winners are actually quick picks.  But if you must choose, there are numbers that historically are luckier others, 26, 41, 22, 16 and 42 have been drawn the most in Powerball history.  And 55 and up, well, they are your best bets if you want to lose.  That said everyone's got their superstitions.

UNIDENTIFIED MALE:  Somebody's birthday that is close to me, my mom, my wife.

UNIDENTIFIED FEMALE:  I am stuck on number four occasionally so I know I bought four tickets over the course of the last few days.

HARSHA:  This store has seen a steady stream of folks all day long.  Each of them absolutely convinced they've got that secret formula.

UNIDENTIFIED FEMALE:  I've heard it all.  And even had people tell me that they wait until the jackpot sign speaks to them.

HARSHA:  Crazy superstitions taking Denverites delusional.

KELLY:  Up next, I will tell you what I would do if I won.  Don't go away.

(COMMERCIAL BREAK)

KELLY:  So if I won, I would spend the money helping kids, military veterans and animals in need, among others.  What would you guys do?

UNIDENTIFIED MALE:  Italy.

KELLY:  Italy.  There we go.  Nice, James, nice.  He's just kidding.  He's a good man.  I am kidding.  I don't know him that well.  Have a great weekend.  See you on Monday.

END

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