This is a rush transcript from "Special Report," July 1, 2020. This copy may not be in its final form and may be updated.
BRET BAIER, FOX NEWS ANCHOR: So good to have you back Jesse, thanks. Good evening, welcome to Washington. I'm Bret Baier.
Breaking tonight, President Trump dismisses the stories about intelligence assessments that Russia offered bounties for killing American troops in Afghanistan as a hoax and made up to hurt him and the Republican Party. The President's National Security Adviser is saying today he had a list of retaliatory options if the intelligence had been corroborated.
I will ask Secretary of State Mike Pompeo about this story, many other topics around the world in just a few minutes.
But first to the lead story from the White House tonight, we begin tonight with Correspondent Kristin Fisher live on the North Lawn. Good evening, Kristin.
KRISTIN FISHER, FOX NEWS CHANNEL CORRESPONDENT: Good evening, Bret. Today for the first time since The New York Times broke the story on Friday, President Trump talked about it on camera and he said if Russia did offer bounties to kill U.S. troops in Afghanistan, he would take action.
(BEGIN VIDEOTAPE)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I agree with the intelligence people. I think frankly that many of the intelligence people didn't think it was something that even happened. And if it did happen, the Russians would hear about it, and anybody else would hear about it that was involved.
FISHER: Today the National Security Adviser confirmed that the intelligence behind to these Russian bounties was shared with U.S. allies. And he pinned the responsibility for the decision to not share that intelligence with President Trump on the President's daily briefer, a career CIA officer.
ROBERT O'BRIEN, NATIONAL SECURITY ADVISER: She made that decision because she didn't have confidence in the intelligence that came up. She made that call and you know what? I think she made the right call.
FISHER: But Democrats disagree. They believe intelligence of this magnitude should have made its way to the president. (INAUDIBLE) as The New York Times and associated press recording, then Democratic Senator Joe Manchin says, not only did the president, quote, fail our service members, but he broke his oath to protect and defend the constitution. It would be unconscionable to think he did not immediately inform Putin that America would retaliate in the most damning way possible.
The New York Times is now claiming to have found the money trail behind these bounties to kill U.S. troops in Afghanistan. The paper reports, American officials intercepted electronic data showing large financial transfers from a bank account controlled by Russia's military intelligence agency to a Taliban-linked account.
But Defense Secretary Mark Esper says, the Pentagon has no corroborating evidence at this time. Adding, I want to assure all of our service members that we take seriously any and all potential threats against U.S. military personnel.
Today, Democratic Senator Bob Menendez introduced an amendment to the Defense Authorization Act to sanction Russian President Vladimir Putin and other top government officials. But the Kremlin calls the claims total B.S. and so does President Trump.
TRUMP: I think it's a hoax by the newspapers and the Democrats.
(END VIDEOTAPE)
FISHER: Now lawmakers from both parties have been calling for a briefing about all of this from people within the intelligence community, not the White House. And tomorrow morning, the Gang of Eight is going to get one from the director of National Intelligence and the director of the CIA, Bret.
BAIER: Yes, and the Secretary of State with us in just a moment. Kristin, thank you.
The House of Representatives passed a bill to sanction China over their new national security law for Hong Kong. House Speaker Nancy Pelosi saying the purpose of that law is to frighten and suppress peaceful demonstrators demanding freedom. Thousands of protesters defied the law and tear gas on the anniversary of the former British colonies handover to Chinese rule. Hong Kong police responded with the first arrests under the new law.
Correspondent Benjamin Hall is following this story from London.
(BEGIN VIDEOTAPE)
BENJAMIN HALL, FOX NEWS CHANNEL CORRESPONDENT: Hong Kong police cracked down today both on protesters and free speech. Police fired rubber bullets as they enforce the new security law which gives sweeping powers to China to arrest people for criticizing the government. As crowds marks 23 years since the end of British rule, police held up signs warning of the new law then arrested people who called for Hong Kong independence, or even displayed the British flag. The law is applied to nonresidents and those abroad, meaning it could affect Americans.
Carrie Lam, the Chief Executive of Hong Kong tried to defend it.
CARRIE LAM, CHIEF EXECUTIVE OF HONG KONG: The purpose of this piece of legislation is not just to punish, but it's also to deter.
HALL: The U.S. is responding by moving to end special trade terms with Hong Kong and banning defense exports. With Congress moving to impose sanctions on Chinese officials who try to repress political freedoms. The U.K. is extending residency rights and citizenship to up to three million Hong Kongers.
And British Prime Minister Boris Johnson has condemned the law.
BORIS JOHNSON, PRIME MINISTER OF THE UNITED KINGDOM: It violates Hong Kong's high degree of autonomy and is in direct conflict with Hong Kong basic law. The laws also threatens the freedoms and rights protected by the joint declaration.
HALL: The new law is punishable by up to life in Chinese prison. And China will now be allowed to establish security officers in Hong Kong, which means Chinese security forces operating freely on the island.
(END VIDEOTAPE)
HALL: Observe this note, this new law is a violation of the agreement made with Britain. Effectively the end of the one country, two-systems framework. The end of Hong Kong's autonomy, Bret.
BAIER: Benjamin Hall in London. Benjamin, thank you.
Federal authorities seized tons of products suspected to be made out of human hair taken from people locked inside Chinese internment camp. U.S. Customs and Border Protection says the goods represent a serious human rights violation. State Department Correspondent Rich Edson has an exclusive television report.
(BEGIN VIDEOTAPE)
RICH EDSON, FOX NEWS CHANNEL STATE DEPARTMENT CORRESPONDENT: In this nearly 13-ton shipment seized in New York, hair weaves and extensions from China. The U.S. officials suspect they're made from human hair. Customs official say they're still analyzing the origins of this cargo, though intercepted it based on information indicating prison labor in Xinjiang, China produced it.
KEN CUCCINELLI, ACTING DEPUTY SECRETARY, DHS: It is our intention to keep interdicting shipments like the one you saw today in New York that CBP grabbed. We will keep doing that over and over and over. No American wants to buy a product that they find out later was made with slave labor.
EDSON: The spokesman for the National Security Council says, quote, if this highly suspicious, 13-ton shipment of human hair indeed turns out to be linked to the Uyghur concentration camps, then this is a new low, even for the Chinese Communist Party. And they will have to answer to the world community for their actions.
Officials say the administration is expanding pressure on businesses operating in the United States, urging them to rid their supply chains of products manufactured with forced labor.
The federal government has issued an advisory to companies, warning them to monitor their activities in China.
MIKE POMPEO, U.S. SECRETARY OF STATE: CEOs should read this notice closely and be aware of the reputational, economic and legal risks of supporting such assaults on human dignity.
EDSON: The notice specifically references Xinjiang, China where officials say the Chinese government has interned more than one million Muslims and minorities like Uyghurs. Subjecting them to surveillance, indoctrination, and forced labor.
Last month, President Trump told Axios he held off on sanctioning Chinese officials involved with the Xinjiang mass detention camps because it would have interfered with his trade deal with China.
(END VIDEOTAPE)
EDSON: But the president has also signed a law directing sanctions against Chinese government officials who were involved in the mass internment camps in Xinjiang. U.S. officials say that Chinese government has located hundreds of thousands of prisoners from those camps to factories across China, Bret.
BAIER: Rich Edson live from the state department. Rich, thank you.
For more on China, Hong Kong and America's role in the world, joining me now Secretary of State Mike Pompeo. Mr. Secretary, thanks for being here.
POMPEO: Bret, thanks for having me on this evening. Great to be with you again.
BAIER: We just heard you talked about the companies -- American companies warning them to keep forced labor, labor out of their supply chains pointing directly at China and these concentration camps as descried by the Defense Department. Will we see investigations and prosecutions of American businesses who don't heed this warning?
POMPEO: Bret, President Trump has been very clear, the way previous administrations have dealt with the Chinese Communist Party by turning the other cheek and letting them abuse America is not going to continue, so we responded across a number of fronts.
So you identify one, this forced labor, nobody wants to buy products -- cheap products that were made with slave labor in Western China. They want clarity about the tracing of the product that they have.
And so we've asked every business to evaluate their supply chain and make sure that nothing like that ever gets in, and we put them on notice for actions that we may take as we move forward.
BAIER: You know, last month, President Trump told Axios that he held off sanctions -- sanctioning Chinese officials involved with the mass detention camps because it would have interfered with his trade deal with China. Should those have been separated?
POMPEO: Bret, I've been Secretary of State for 2-1/2 years, no, there's always complex tradeoffs that one has to make. President Trump's been very clear when he signed this bill, the Uyghur bill last week that we were going to take this seriously, we were going to deal with it, we were going to put harsh restrictions in place, we're working on that. No country has responded in the same way that we have. We hope the whole world will join.
What's going on there Bret, is historic, there's forced sterilization, forcing women to have abortions, this is a place with some of the most fundamental violations of human rights that the world has seen in an awfully long time. President Trump's been serious about making sure the world sees.
And so we hope that countries all across the world, including Muslim countries in the world will see their way clear to putting their shoulder to the grindstone to help resolve this problem as well.
BAIER: I guess the question is should the president had done more in a lot of opportunities talking with President Xi?
POMPEO: There's no country that has done more, and I'm confident will do more, Bret.
BAIER: All right, in Hong Kong, you -- we did a story there about the new security law in place. You've certified that Hong Kong is no longer sufficiently autonomous. Again, should the administration have acted more forcefully to deter Chinese crackdown in Hong Kong?
POMPEO: I'll tell you, Bret, I wish previous administration had taken China seriously. It's true, well, this isn't partisan, 40 years of failed American policy with respect to China. This administration is trying to clean it up, trying to get it right. Now the Chinese have taken advantage of us -- advantage of us in multiple ways. We've done really good work, important work trying to protect the freedoms of the people of Hong Kong.
General Secretary Xi has chosen to go a different direction, and we're responding in a way that will put pressure on Beijing, and try to maintain whatever we can of the remaining freedoms in Hong Kong.
I will tell you the notion that the remains, one country and two systems is fundamentally at odds with the facts on the ground today. I regret that.
BAIER: You know that your critics including now John Bolton say that this is all about election politics and to get China to buy soybeans and places that affect reelection.
POMPEO: Nonsense.
BAIER: OK, that's what we get from that. What does success look like with China, the U.S. and China? What does it look like? Can China be a responsible partner with President Xi at the helm in the Chinese Communist Party?
POMPEO: Look, that's up to the Chinese Communist Party, that's their decision to make. What the United States can control is what we do. When there's unfair and nonreciprocal trade, we're going to demand by -- demand that it be right. When they don't do, we're going to do things like placing tariffs on their goods.
When they engage in behavior that's militarily threatening to the United States, we're going to put $700 billion into our Department of Defense to keep Americans safe and secure.
And when the Chinese engage in cyber espionage, we're going to impose penalties on them so that they will be deterred from doing that. Those are the things we can do.
We are hopeful, we want the Chinese people to be successful. The Chinese Communist Party today has made a decision, it wants to be an imperialist power, it wants to be authoritarian in nature and it wants to compete across the world in ways they are consistent with the good things happening for the American people. And frankly, people with democracies all across the world. Presidents Trump's policies are aimed squarely at reversing that.
BAIER: I want to spend some time on the Russia bounty story in Afghanistan. First, does the Russian government have American blood on its hands in Afghanistan?
POMPEO: Bret, I don't want to get into the intelligence. The intelligence community has put out two statements. I used to have that job; I'm going to -- I'm going to honor what they said.
Here's what I can say with absolute certainty, the United States has responded appropriately to the threats that have been presented to it in Afghanistan consistently during my entire 3-1/2 half years. First the CIA director and now as Secretary of State, there are many folks using the Taliban or who have used the Taliban over years and years and years as proxy forces. There's been money funneled in there from all across the world, unfortunately.
President Trump has taken this seriously, we are hopeful, we'll make progress on our peace and reconciliation plan. And we will respond to any threat, whether that's Iranians using the Taliban or the Russians, we'll make sure they know.
The Russians have been providing weapons to the Taliban for an awful lot of years, and so, this is an ongoing challenge we have. And our forces on the ground under General Miller and the resolute support mission are deeply aware of the threat from the Taliban whether that's supported by any third party or none.
BAIER: But you know, you just referenced you were CIA director, there's not often consensus across the intelligence community on Intel. And if it dealt with bounties killing American troops, shouldn't the president have been told about it?
We know that it was discussed in the National Security Council, the principles and deck this level. You said today the key members of Congress had that Intel as well, even though there wasn't a consensus. Why wasn't the president briefed on it?
POMPEO: Well, Bret, that's not actually quite right. Most intelligence that's red -- there is in fact a consensus. Almost all of the analytical product that I read every day has a consensus across the entire intelligence community. It is often the case that it is not that happens. When that happens, we need to make sure we get it right.
But Bret you know this, every morning I wake up, and I read the intelligence materials. And when I read them, there are people all across the world who are threatened, including my officers and embassies all across the world. We don't always make sure that gets to the president, we do the right thing. We make sure the ambassador on the ground knows, that the commander on the ground knows, that our allies who may be threatened as well know. It is the tactical and operational response to keep our soldiers safe and secure that is most important.
When the intelligence community feels like something rises to the level of needs to get to the president, I'm very confident they will consistently present it to them. I know that when I was the CIA director, I did that.
BAIER: Did you know about this particular Intel piece?
POMPEO: You know, I don't want to talk about the Intel in particular on this, Bret.
BAIER: All right.
POMPEO: I mean, there's just -- I just -- I'm not trying to be clever, there's just so much that has been reported that is not accurate and that is incomplete that by refuting any particular element of it. I'm putting at risk our capacity to actually resolve and figure out what's going on.
BAIER: And I want to ask you about that in the leak itself, but here is what the democratic nominee is saying about it.
(BEGIN VIDEO CLIP)
JOE BIDEN (D), PRESIDENTIAL CANDIDATE: He either reads and/or gets briefed on important issues and he forgets it, or he doesn't think it's necessary that he need to know it. He should have a minimum, have picked up the phone and said, Vladimir, old buddy, if any of this is true, and it doesn't cease amigo, you've got a big problem.
(END VIDEO CLIP)
BAIER: All right, so, it's not just the Democrats, obviously, you have Senator Chuck Grassley on the Senate floor, saying it demands a serious response. You have two key Republicans in the House. Mike McCaul and Adam Kinzinger, saying, "There are already those who are politicizing this issue.
However, we cannot use let politics overshadow the truth that Republicans and Democrats alike can agree on: The Putin regime cannot be trusted.
If the intelligence review process verifies the report, we strongly encourage the administration to take swift and serious action to hold the Putin regime accountable."
POMPEO: Yes. Bret, there's been no administration to hold the Russians accountable the way this one has. I only wish former Vice President Biden had held the Russians accountable.
We've been cleaning up a lot less of a mess. I wish we provided arms to the Ukrainians, I wish he had gotten out of the INF Treaty, I wish he hadn't allowed and invited the Syrians -- the Russians into Syria.
I could go on, but you got a short show. The failures of previous administration allowed the Russians a lot of space to move. We've pushed back, we sanctioned more Russians than any other administration in history.
I'll take a backseat to no one with respect to what our administration and President Trump has done to hold Vladimir Putin accountable when he is engaged in malign activity.
And should we find out that there's evidence that he's putting our soldiers, sailors, airmen, and Marines at risk, anywhere in the world, including in Afghanistan, I am very confident that President Trump will direct me, and he himself will respond appropriately.
BAIER: How damaging was this leak? You were CIA Director, the White House press secretary the other day, said that there were rogue officers in the intelligence community who want to undercut the president. You believe that?
POMPEO: Bret, I don't know where this leak came from. But when periodicals report this information, it breaks my heart because it puts our intelligence officers and our military men and women at risk.
It is -- it is dangerous, it is unlawful, and I hope that we can figure out who did it, and they'll be brought to justice.
BAIER: Mr. Secretary, you did speak out when it was alleged that Iran was paying the Taliban $1,000 for each American killed in Afghanistan, as a member of Congress, and you, spoke out about the Obama administration's response at the time, which obviously you criticize in the overall Iran deal.
POMPEO: Yes, it's absolutely true. I've spoken about the Iranians providing assistance to the Taliban in my current role as secretary of state as well. I've criticized other governments. We've worked to make sure Pakistan wasn't providing safe haven for the Taliban in Afghanistan too.
No, where equal opportunity when it comes to making sure we protect the Americans wherever they're serving.
BAIER: All right, let's talk about the couple of other substantive things. One, as you mentioned, the Taliban peace deal. You said that the Taliban would publicly renounce al-Qaeda. You talked about that, I asked you about it back in March. Take a listen.
(BEGIN VIDEO CLIP)
BAIER: It says it will not allow any of its members or other individuals or groups, including al-Qaeda to use the soil of Afghanistan to threaten the security of the United States and its allies. But that's not really a break. That's not a renouncing --
POMPEO: Oh, yes. Oh, yes.
BAIER: A renouncing of al-Qaeda?
POMPEO: Absolutely. Absolutely, when you say you're not going to let them operate there, you know it, Bret. They've done it for 20 years. They're not going to let them operate it anymore. That's -- that is a central provision.
(END VIDEO CLIP)
BAIER: You went further saying that they would eventually take up arms and fight al-Qaeda, working alongside us to destroy al-Qaeda. Have you seen any indication that the Taliban is doing any of that?
POMPEO: Yes.
BAIER: How?
POMPEO: But I can't talk about the things that I have seen, but know this, I spoke with the Taliban, again, just this week and effort to further the peace negotiations to try and get them to the table with the Afghan government.
I think we're closer than we were even just a couple of weeks back. The Taliban continued to have pressed upon them the importance of this break from al-Qaeda, and I think we will be able to see when we get to that point, when we have these negotiations commenced, I think the world will be able to see that the Taliban are no longer going to tolerate what they've permitted to happen and that the Pakistanis too will do the things that need to be done to reduce the footprint from al-Qaeda.
Remember, Bret, we're down to a couple of 100 active al-Qaeda fighters inside of Afghanistan. The reason we went there in 2001 was to crush al- Qaeda. That has largely been achieved.
BAIER: Can you confidently state that America will have U.S. troops in Afghanistan on Election Day?
POMPEO: President will ultimately make that decision, Bret.
BAIER: OK. One more thing, the E.U. blocking travelers from the U.S. due to the coronavirus pandemic. Your reaction to that, and is there any pushback from the U.S.?
POMPEO: Well, remember, we're not allowing Europeans to come here today, either, Bret. We're in close conversation with countries all around the world, including European countries, to make sure that when we reopen our country to travel from their nations.
That we do so in a way that keeps American people safer and reduces risk from COVID here in the United States. They have a responsibility to do that for their nations as well. And I'm very confident that we'll get this right with countries all across the world.
It's not just the Europeans, we need to get this right, we need to get the economy back up, when you get people traveling all across to the United States, and international travel as well.
BAIER: Mr. Secretary, we appreciate your time.
POMPEO: Thank you, Bret.
BAIER: Happy Independence Day, early.
POMPEO: Thank you. Happy Fourth of July to you too, Bret.
BAIER: All right, all the best.
Up next, California and New York become the latest states to halt the process of reopening.
(COMMERCIAL BREAK)
BAIER: Private payroll processor ADP, found U.S. companies added nearly 2.4 million jobs in June, with small businesses reporting the biggest increase. According to the data, the economy still has about 14 million fewer jobs than it did in February.
President Trump is back in more stimulus as part of the recovery from coronavirus, telling Fox Business, he is not -- he not only favors more payments to individuals, but he wants them to be even larger than the first time around.
Stocks started the third quarter of 2020 on a mixed note. The Dow dropped 78. The S&P 500 gained 16, and a record high closed for the NASDAQ which finished ahead 96.
Here in Washington, the Fourth of July fireworks show will go on with the Trump administration promising one of the largest displays ever. 300 000 masks will be given away on the National Mall. But attendees will not be required to wear them. Other states are pausing the reopening process and mandating masks.
Correspondent Jonathan Serrie, looks at the coronavirus trends across the country.
(BEGIN VIDEOTAPE)
JONATHAN SERRIE, FOX NEWS CORRESPONDENT: Alarmed by an increase in coronavirus cases, California's governor has announced a three-week closure of bars and restaurant dining rooms.
While the mayor of New York City has postponed plans to reopen in restaurant dining.
BILL DE BLASIO, MAYOR OF NEW YORK CITY, NEW YORK: The news we have gotten from around the country gets worse and worse all the time.
SERRIE: Public health officials say large Memorial Day gatherings and complacency over the use of face masks are driving the nation's new spike in COVID-19 cases.
Today, an emergency order in Savannah, Georgia, imposed a $500 fine on people who failed to wear face coverings in public.
Doctors at Emory University, say mandates are more effective than recommendations based on their own experience in hospitals.
JONATHAN LEWIN, CHIEF EXECUTIVE OFFICER, EMORY HEALTHCARE: When we simply strongly encouraged face masks, we still saw community spread. When we required masks, we saw our infection rates within our workforce plummet.
SERRIE: Following a lot of criticism today, President Trump, explained he usually doesn't wear a mask because people who visit the president are tested.
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: If I were in a tight situation with people, I would absolutely be --
(CROSSTALK)
UNIDENTIFIED MALE: Do you think the public will see that at some point?
TRUMP: I mean, I'd have no problem. Actually, I had a mask and I said I like the way I looked.
SERRIE: Although the U.S. leads the world and confirm COVID-19 cases, its deaths per 100,000 population remain among the lowest. However, health experts say that's not reason for complacency.
DR. CARLOS DEL RIO, PROFESSOR OF MEDICINE, EMORY UNIVERSITY SCHOOL OF MEDICINE: I worry less about the numbers right now, and I worry more about the trend. And the fact that we're seeing an exponential growth is really what bothers me right now, and what really makes me very concerned.
(END VIDEOTAPE)
SERRIE: Public health officials are especially concerned about the upcoming Fourth of July holiday when many people are planning get-togethers, they're urging people to limit the size of gatherings, and to wear face coverings when social distancing is not possible. Bret.
BAIER: Jonathan Serrie in Atlanta. Jonathan, thank you.
Up next, the end of the chop zone in Seattle and budget cuts for the NYPD. First, here is what some of our Fox affiliates around the country are covering tonight.
FOX 4 in Kansas City, where you, the American taxpayer have an almost 30 percent stake in a trucking company that ships military equipment. The Treasury Department will loan YRC worldwide $700 million in exchange for a stake in the company. Congress gave permission to the deal as a way to ensure taxpayer money is not misspent.
FOX 7 in Austin, Texas where the U.S. army says partial human remains have been found close to the Leon River in Bell County.
In the search for missing Fort Hood soldier Vanessa Guillen. 20-year-old Guillen was last seen on April 22nd, a family attorney says one suspect committed suicide as police closed in on them. Another suspect is in custody.
And this is a live look at San Francisco from our affiliate FOX 2 out there. One of the big stories there tonight. Police, say they will stop making mug shots publicly available unless the person poses a threat to the public.
The police chief, says the move is part of an effort to stop perpetuating racial stereotypes and protect the presumption of innocence.
That's tonight's live look "OUTSIDE THE BELTWAY" from SPECIAL REPORT. We'll be right back.
(COMMERCIAL BREAK)
BAIER: In downtown Seattle, the Capitol Hill Organized Protest zone, or CHOP, is no more. Police cleared the area after the mayor declared it an unlawful assembly following two deadly shootings in less than two weeks there. Correspondent Dan Springer reports.
(BEGIN VIDEOTAPE)
DAN SPRINGER, FOX NEWS CORRESPONDENT: Acting on the mayor's executive order signed overnight, police officers and FBI agents moved into the area known as CHOP just before 5:00 a.m.
UNIDENTIFIED MALE: We need to be clear now. If we don't clear out then we'll be forced to arrest.
SPRINGER: While most peacefully left, police, some in riot gear, did arrest at least 30 people for offenses including failure to disperse, assault, and unlawful weapon possession.
CARMEN BEST, SEATTLE POLICE CHIEF: What has happened here on these streets is lawless, and it's brutal, and bottom line, it is simply unacceptable.
SPRINGER: Established in early June in the wake of George Floyd's death, what was initially an overwhelmingly peaceful protest soon became linked to incidents of violence. Black Lives Matter and similar groups had already pulled out, and there was now concern from both protesters and the city that CHOP's original message, a call for police reform, has been drowned out.
UNIDENTIFIED MALE: We're going to have to work 10 times as hard to get our message back on track.
BEST: Black Lives Matter, and I too want to help propel this movement forward, but enough is enough.
(END VIDEOTAPE)
SPRINGER: Seattle police are back inside the east precinct which they abandoned in early June. The question now is how long they will hold and keep it from becoming of point again as protestors say the idea of CHOP isn't over yet. Bret?
BAIER: Dan Springer in Seattle. Dan, thanks.
Just after midnight early this morning, New York City's City Council passed the city's $88 billion budget that includes $1 billion in cuts to the NYPD. But that has not resulted in the end of Occupy City Hall protesters. Correspondent Aishah Hasnie looks at the situation in the big apple today.
(BEGIN VIDEOTAPE)
UNIDENTIFIED FEMALE: As hereby adopted as of 12:26 p.m. --
AISHAH HASNIE, FOX NEWS CORRESPONDENT: With ah historic vote, New York City leaders defunded the NYPD's $6 billion budget by close to $1 billion. The 2021 budget cuts include cutting the number of recruits in half, which would save $40 million, and a reduction on police overtime spending by $352 million. And it comes at a time when shootings are up across the city compared to this time last year. The city faces a $9 billion loss due to coronavirus, and police retirements are rising.
DERMOT SHEA, NEW YORK CITY POLICE COMMISSIONER: Let's mark the date on the calendar and how long it's going to be before we'll have that conversation about New Yorkers crying out for more police.
HASNIE: But some protesters outside city hall and council members feel the budget did not go far enough. They wanted to eliminate school safety officers and introduce a hiring freeze on police.
JONATHAN LYKES, BLACK YOUTH PROJECT 100: We're not happy with the budget, let me be clear. We know that they political tricks.
HASNIE: Mayor Bill de Blasio said he will continue to support peaceful protests, but the city needs to move forward now. Protesters, though, have a different message for their mayor.
LYKES: We're coming for you. We're going to escalate tactics. We're going to be disruptive.
(END VIDEOTAPE)
HASNIE: And that very same organizer tells me the people in charge of organizing Occupy City Hall will leave now that the budget has passed, but they will continue to support anyone who wants to stay. Bret?
BAIER: Aishah, thank you.
Up next, the battle over our nation's history ahead of the holiday weekend. First, Beyond our Borders tonight. Israeli Prime Minister Benjamin Netanyahu announcing a delay in the annexation of parts of the occupied West Bank. The process was supposed to begin today, and still may take place later this month. Several thousand Palestinians peacefully marched in Gaza City to protest those plans.
Russian voters approved a package of constitutional changes allowing President Vladimir Putin to serve two more terms, possibly staying in power until 2036. The weeklong vote was tarnished by reports of pressure on voters and other irregularities. Putin, who has been in power more than two decades, did not mentioning his political future during a speech Tuesday and has yet to commit to running to 2024 when his current term expires.
And way Beyond our Borders, NASA astronauts replaced batteries on the outside of the International Space Station today. For every two batteries removed, a new one and improved one is installed to power the station while on the night side of the earth. The battery replacement process began in 2017 and should be completed this month.
Just some of the other stories beyond our border tonight. We'll be right back.
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BAIER: In our Democracy 2020 report, Oklahoma voters narrowly approved a state constitutional amendment to expand Medicaid health coverage to tens of thousands of low-income residents. Oklahoma is the first state to amend its constitution to expand Medicaid. For other states accomplished it through ballot questions.
In Colorado, five-term Congressman Scott Tipton lost his Republican primary contest to pro-gun and pro-border wall candidate Lauren Boebert. She will run in November against Diane Mitsch Bush who won the Democratic primary in the district. The Colorado Senate race, meantime, set as well. Former governor John Hickenlooper won the Democratic primary against a progressive opponent and will face Republican incumbent Senator Cory Gardner.
The mayor of Richmond, Virginia, the former capital of the Confederacy, has ordered to removal of all Confederate statues standing on city land. This afternoon the of Stonewall Jackson on Richmond's Monument Avenue came down to the cheers of a surrounding crowd. The move comes at a time when the fight over Confederacy symbols takes center stage on Capitol Hill. Congressional correspondent Chad Pergram has the story.
(BEGIN VIDEOTAPE)
CHAD PERGRAM, FOX NEWS PRODUCER: Pageantry and imagery defined most Fourths of July. This holiday could ignite flashpoints around the nation's uncomfortable history. There's concern demonstrators could again try to topple controversial statues.
KAYLEIGH MCENANY, WHITE HOUSE PRESS SECRETARY: Law and order are the building blocks to the American dream. Anarchy in our streets is unacceptable.
PERGRAM: The Department of Homeland Security is deploying special teams to protect federal monuments in Portland, Oregon, and Washington, D.C. President Trump warned people his executive order to safeguard monuments is in full force. That prompted a veto threat of the Senate's annual defense bill if lawmakers stand by a plan to rename bases named after Confederates.
SEN. JAMES INHOFE (R-OK), SENATE ARMED SERVICES COMMITTEE CHAIRMAN: He's serious about it. You know the president. He makes up his mind, and he does things.
SEN. CHUCK SCHUMER, (D-NY) SENATE MINORITY LEADER: This is nothing but typical bluster from President Trump. At the NDAA will pass.
PERGRAM: Still, this bill may not go to the president to sign until fall.
SEN. MITCH MCCONNELL, (R-KY) SENATE MAJORITY LEADER: I hope the president would reconsider vetoing the entire defense bill, which includes pay raises for our troops, over a provision in there that could lead to changing the names of some of these military bases.
PERGRAM: But members of the Congressional Black Caucus aren't convinced some changes are truly for racial justice, such as Mississippi's decision to mothball its flag with the Confederate emblem.
SEN. BENNIE THOMPSON, (D-MS) CONGRESSIONAL BLACK CAUCUS: When SEC, NCAA, the bankers, the richest man in the state who was a Trump delegate said we need to change the flag, boom, it changed.
(END VIDEOTAPE)
PERGRAM: President Trump believes the culture war over monuments works politically in his favor, but Democrats think that Black Lives Matter tilts the field in their direction. That's why fights over statues and military bases represents a proxy war ahead of November. Bret?
BAIER: Chad Pergram live on the Hill. Chad, thanks.
Next up, the panel reacts to my interview with Secretary of State Mike Pompeo and the big stories around the world, next.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
BAIER: Does the Russian government have American blood on its hands in Afghanistan?
MIKE POMPEO, SECRETARY OF STATE: Bret, I don't want to get into the intelligence. The United States has responded appropriately to the threats that have been presented to it in Afghanistan consistently. There are many folks using the Taliban, or who have used the Taliban over years and years and years as proxy forces.
I don't know where this leak came from, but when periodicals report this information, it breaks my heart, because it puts our intelligent officers and our military men and women at risk. It is dangerous, it is unlawful, and I hope that we can figure out who did it, and they'll be brought to justice.
(END VIDEO CLIP)
BAIER: Secretary of State Mike Pompeo talking about that Russia bounty story in Afghanistan. We'll start there with our panel, Ben Domenech, publisher of "The Federalist," Mara Liasson, national political correspondent for National Public Radio, and Josh Holmes, former top advisor to Mitch McConnell, now president of Cavalry Consultants. Ben, thoughts on his answer, and the story overall.
BEN DOMENECH, "THE FEDERALIST": First off, I think his answer was as clarifying as he possibly could be in this moment, which is clearly, there's a big muddle here about where this intelligence came from, why it was leaked in the way that it was, and what we are supposed to take away from this situation overall.
He is correct that the Taliban has been used as a proxy force in all sorts of different ways. It does seem like this story came out in a way that would undermine the efforts of American forces to figure out what was actually going on in this scenario, and coming at the truth. But I think that that's probably going to lead to a discovery that leads to an indication that this was trying to do something that undermined the president and undermined his overall efforts in the region.
BAIER: Clearly the president think so, said it on FOX Business. Take a listen.
(BEGIN VIDEO CLIP)
DONALD TRUMP, (R) PRESIDENT OF THE UNITED STATES: When you bring something into a president, and I see many, many things. And I'm sure I don't see many things that they don't think rose to the occasion. This didn't rise to the occasion. And from what I hear, and I hear it pretty good, the intelligence people, many of them didn't believe it happened at all. I think it's a hoax. I think it's a hoax by the newspapers and the Democrats.
(END VIDEO CLIP)
BAIER: Mara?
MARA LIASSON, NATIONAL POLITICAL CORRESPONDENT, NATIONAL PUBLIC RADIO: Yes, well, Secretary Pompeo didn't say it was a hoax. He was angry that it leaked, I understand that, but I guess the question now is, is this real or not? Did the Russians but a bounty on U.S. troops? And what does the president want to do about it, if anything? So I think that's the next chapter of this. They're going to try to find out who leaked it, that's kind of one problem. But the other one is, if it's true, what is the administration going to do?
BAIER: Josh, the national security advisor spoke about the CIA briefer. Take a listen.
(BEGIN VIDEO CLIP)
ROBERT O'BRIEN, NATIONAL SECURITY ADVISER: The person who decided early on whether the president should be briefed on this in Oval intelligence briefing was his career -- senior career civil servant CIA officer. And she made that decision because she didn't have confidence in the intelligence that came up. She made that call. And you know what, I think she made the right call.
(END VIDEO CLIP)
BAIER: So there's all kinds of people speculating, did they not want to bring it to President Trump because of what he would think about it, would he tweet about it, would he talk to President Putin in some way, shape, or form about it? That's not what they're saying, Josh.
JOSH HOLMES, CAVALRY CONSULTANTS: No, they're not saying that at all. What they're saying is that the CIA and the intelligence services concluded that it wasn't ready for primetime, that in fact it wasn't ready to present the president or congressional leaders, for that matter.
I don't think it's difficult to see what's happening here. It was, however, determined fit to print in "The New York Times." And the reason it is fit to leak to "The New York Times" is because it goes to this ongoing narrative that Democrats, frankly, cannot let go of, that somehow this president is preferential to Russia. We've gone through three-and-a-half years, tens of millions of dollars in investigations, conclusions definitively that that is not the case, both in terms of policy and in terms of past actions. And yet here we are again debating the same thing.
I don't think there's any question in anybody's mind that if we have definitive proof that Russia had bounties on American soldiers that this president is going to act decisively to ensure that that doesn't happen, and they'll have a huge response if it does.
BAIER: We mentioned the Iranian bounties on American soldiers in Afghanistan, and reaction of the Obama administration after that, Ben.
DOMENECH: So I certainly think that the president would have a very robust response of this. The truth is that, as Josh indicated, we've had all of these allegations put out there, including by this current Speaker of the House, Nancy Pelosi, who continues to engage in this ridiculous campaign where she suggests that Vladimir Putin has some of kind of thing over on the president. It's ludicrous, it's laughable. But it is a situation where I think when issues like this arise, we want to have clarity. And I think in this case, we don't really have clarity about what went on here, and we may not be able to have clarity because of the way that this story played out.
BAIER: Meantime, the COVID situation, the news about the cases around the country and spikes in different states, Mara, the president speaking out that he's OK with masks. Take a listen.
(BEGIN VIDEO CLIP)
DONALD TRUMP, (R) PRESIDENT OF THE UNITED STATES: I'm all for masks, I think masks are good. I would wear -- if I were in a group of people and I was close --
UNIDENTIFIED MALE: You would wear one?
TRUMP: I would. I have. People have seen me wearing one. If I'm in a group of people where were not 10 feet away, but usually I'm not in that position. And everyone's tested. Because I'm the president, they get tested before they see me. But if I was in a tight situation with people, I would absolutely.
UNIDENTIFIED MALE: Do think the public will see that at some point?
TRUMP: I'd have no problem. Actually, I had a mask on. I sort of liked the way I looked.
(END VIDEO CLIP)
(LAUGHTER)
BAIER: Mara, listen, there are, on the serious side of this, Mara --
LIASSON: This is a new, this is --
BAIER: There's the economic guys that are looking at this saying, if you're pro-mask and you don't shut down, you could save the country a lot of GDP percentage that might go down if there's another shutdown.
LIASSON: There's been some pretty studying estimates that masks help the economy, because you can go back to work with them. This is a new message from the president than the past. He suggested to the "Wall Street Journal" that people who wear masks are doing it to show their disapproval of him. He said to a reporter at the White House, you're wearing a mask because it's politically correct. So it sounds like the White House is changing its tune on masks. The question is, will the president start wearing one, not because he needs it to protect himself or others in the White House, but to model this behavior as something that other people should do.
BAIER: And how much will he talk about COVID and be a part of the task force? There's all kinds of questions coming up with the politics. Panel, thank you so much with the secretary's interview. We'll stop there. Appreciate it.
When we come back, the brighter side of things, some good news.
(COMMERCIAL BREAK)
BAIER: Finally tonight, when life gives you lemons, you try to make lemonade, right? Well, that was the case for a five-year-old Cooper Wallweber when he heard that a volunteer firefighter was injured in a shooting at a local restaurant, he felt compelled to do something good for her. The Missouri boy got to work making and selling lemonade, raising more than $3,000 from his lemonade stand to help her out. Good job.
Princess Paige Lemonade is well known in some neighborhoods around Minneapolis. Its founder, six-year-old Paige, sells lemonade in stores around the Twin Cities. The young entrepreneur donates the profits to the Ronald McDonald House for Families living near a sick child getting treatment, and sometimes Paige visits those kids who are dealing with the medical issues, and of course she shares her lemonade. So there you go, making lemonade out of lemons.
Thanks for inviting us into your home tonight. That's it for the SPECIAL REPORT, fair, balanced, and still unafraid. "THE STORY" hosted by Martha MacCallum starts right now.
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