This is a rush transcript from "Special Report with Bret Baier," July 27, 2021. This copy may not be in its final form and may be updated.

(BEGIN VIDEO CLIP)

JOE BIDEN, (D) PRESIDENT OF THE UNITED STATES: If you are fully vaccinated, you no longer need to wear a mask.

DR. ROCHELLE WALENSKY, CDC DIRECTOR: In areas with substantial and high transmission, CDC recommends fully vaccinated people wear masks in public, indoor settings, to help prevent the spread of the Delta variant and protect others.

UNIDENTIFIED FEMALE: Will you require all federal employees get vaccinated?

BIDEN: It's under consideration right now. But if you are not vaccinated, you are not nearly as smart as I thought you were.

(END VIDEO CLIP)

BAIER: The president then and the president now. The CDC director saying the guidelines have changed -- masks indoors in certain settings for vaccinated people as well. Meantime, what about kids going back to school? Take a listen.

(BEGIN VIDEO CLIP)

DR. ROCHELLE WALENSKY, CDC DIRECTOR: CDC recommends that everyone in K to 12 schools wear a mask indoors, including teachers, staff, students, and visitors, regardless of vaccination status. Children should return to full- time in person learning in the fall with proper prevention strategies in place.

(END VIDEO CLIP)

BAIER: So here we go. Let's bring this our panel, Mollie Hemingway, senior editor at "The Federalist," Charles Lane, opinion writer for "The Washington Post," and Jonah Goldberg, editor in chief of "The Dispatch." Jonah, it's just kind of like an exhale. We have been through all of this. A lot of people got vaccinated, and now here we are again because of this variant.

JONAH GOLDBERG, "THE DISPATCH": Yes. I have to say I'm infuriated by all of it. I think that this is a terrible idea. It is -- it is an example of how badly handled this has been, not just by government officials and local officials, but also big swaths of the American people. I know the media likes to focus on how there are Republican vaccine hesitant people out there, and statistically that's definitely true. But in pure number terms, the biggest problems with the unvaccinated or the vaccine hesitant are in major urban areas that didn't overwhelmingly vote by Trump by any measure, and also places like public schools, or New York City public schools. Something like 40 percent of the public teachers haven't been vaccinated. It is scandalous that people haven't taken this more seriously, and I am furious what this is going to do to kids as we backslide into this mask stuff.

BAIER: Not only that, but some people looking at it say if I got the vaccine I didn't have to wear the mask. They listened to President Biden, Mollie, and now it's a shift.

MOLLIE HEMINGWAY, SENIOR EDITOR, "THE FEDERALIST": This has been a disastrous handling, and I can't imagine anything that would less incentivize people onto get vaccinated who are thus far reluctant than being told that they would have to wear a mask in any case and that the lockdowns must continue.

It's really weird, too, because actually there's a way of looking at this that things have gone well. I understand that there is a variant that is increasing the cases, but you are looking at hospitalizations and deaths that are a much better situation than we had last year. You have 89 percent of the elderly population vaccinated. You have had a great success story. And it seems that this idea of coercion and mandates and lockdowns are clearly not about science. They are about something else. And they are not reading the room correctly about how to accomplish their goals. And they are stepping on their own success, too.

BAIER: The president has said that they are considering, Chuck, mandating vaccines for federal employees. The V.A. is already doing that. The Department of Justice Office of Legal Counsel has said legally they are making the determination that they can do that. Here is the president back in December of last year about mandatory vaccines.

(BEGIN VIDEO CLIP)

JOE BIDEN, (D) PRESIDENT OF THE UNITED STATES: No, I don't think it should be mandatory. I wouldn't demand it be mandatory, but I would do everything in my power -- just like I don't think masks have been made mandatory nationwide. I will do everything in my power as president of the United States to encourage people to do the right thing, and when they do it, demonstrate that it matters.

(END VIDEO CLIP)

BAIER: Now they are considering it, Chuck.

CHARLES LANE, OPINION WRITER, "WASHINGTON POST": Yes, I think, though, that the big picture here is how hesitant the Biden administration has been to go for mandating vaccinations. You have to understand, I think within the Democratic Party and Democratic Party interest groups and supporters, there is strong support for mandating vaccines. A lot of people think that's a logical way to go. And Biden has been very cautious about doings it. To recommend it, require it for the Veterans Administration given that they are hospital organization primarily is a pretty logical application of the rule.

But I'm struck, actually, by how nonaggressive he is being on mandates in terms of vaccinations. As I have said before, I would like to see more thought given to incentivizing. Governor Jared Polis of Colorado has a really interesting program they just started last week, give people $100 gift cards when they get vaccinated. That, too, there is controversy about that. But we do have a big problem here. We have got to overcome this hesitancy one way or another, and at the same time limit whatever backlash there would be against something that's perceived as too coercive.

BAIER: Other states are doing lotteries and all kinds of stuff. Jonah, the question about legality, like let's say an employer to mandate that every employee is fully vaccinated, legally, how does that stand up?

GOLDBERG: I think as long as you have exemptions for religion and certain medical vulnerabilities, I think the law is pretty clear that it would stand up in courts. It would also be challenged, and it's regrettable that we have to have that to be the eventuality anyway.

BAIER: Mollie?

HEMINGWAY: This is still only authorized under emergency reduce. So the idea that you would mandate something that is something we are still learning about seems just a wrong reaction. Coercion is occasionally necessary for public health situations. We are not in that situation here. And it just seems we have gone from two weeks to slow the spread to now mandatory vaccinations. It's very extreme.

BAIER: And last word, Chuck, you think mandates are coming down?

LANE: I think it's going to be crucial for the FDA to finalize its approval --

BAIER: Right.

LANE: -- and get this out of emergency status before we could wrap up on that issue.

BAIER: That is great point. And what's taking so long?

All right, panel, stand by. When we come back, tomorrow's headlines with you.

(COMMERCIAL BREAK)

BAIER: Finally tonight, a quick look at tomorrow's headlines with the panel. Chuck?

LANE: Tomorrow's headline will be, Republicans gain confidence, Democrats gain anxiety over California gubernatorial recall election. That's a change of view for me. I had seen Gavin Newsom as pretty much a lock. But there is a new poll out showing among likely voters he is within the margin of error, and that's not a good situation for him.

BAIER: All right, Mollie?

HEMINGWAY: Democrats in the media who cheered on the violent riots at the White House, federal courthouses, and police precincts last year will continue their show trial of the Capitol riot in an attempt to label all 75 million Trump voters as enemies of the state.

BAIER: All right, Jonah, quickly.

GOLDBERG: In response to the new mask mandate, California Governor Gavin Newsom books lavish dinner at French Laundry.

(LAUGHTER)

BAIER: That's it for us, fair, balanced, and unafraid. Tammy Bruce is up next. Hey, Tammy.

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