This is a rush transcript from "Special Report with Bret Baier," August 3, 2021. This copy may not be in its final form and may be updated.

SHANNON BREAM, FOX NEWS ANCHOR: All right, Howard Kurtz, thank you very much. Let's bring in our panel now, Washington Post columnist, Marc Thiessen. Morgan Ortagus, former State Department spokesperson and Harold Ford Jr., former Tennessee congressman and CEO of Empowerment & Inclusion Capital.

All right, panel, I want to start with what we heard from President Biden just a short time ago when asked point blank about this report today, here's what he said.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Are you now calling on him to resign?

JOE BIDEN, PRESIDENT OF THE UNITED STATES: Yes.

UNIDENTIFIED FEMALE: And if he doesn't resign, do you believe he should be impeached and removed from office?

BIDEN: Let's take one thing at a time here. I think he should resign. I understand that the state legislature may decide to impeach. I don't know that for fact. I have not read all that data.

(END VIDEO CLIP)

BREAM: Marc, the president stood by his March statement. He said if this report comes back that these allegations appear to be factual, I will call for his resignation or think that he should resign. He stuck by that today, Marc.

MARC THIESSEN, FOX NEWS CHANNEL CONTRIBUTOR: Absolutely. And good for him for doing it. But what's he going to do if he doesn't? You know, what if -- what if -- is he going to ostracize him?

I mean, Cuomo has learned the lesson from Bill Clinton that if you are shameless and unrepentant and refuse to resign, you can survive anything. And just if you want proof. You know, despite what Bill Clinton did in office, he was invited to speak at the Democratic National Convention last year.

So, Cuomo looks at that and says, you know, well, Bill Clinton can survive what he's survived and still be welcome at the DNC, why can't I?

And then the other page is taken from the Clinton playbook is to -- is to victim shaming. He's a -- he's accused of harassing and retaliating against victims. He said that they're doing this for us to score political points.

I mean, this is the Democratic state attorney general, almost all -- I would assume all the victims who worked for him are Democrats who agree with him ideologically. So, there's no -- there's no politics here. He's just not going to resign. So, it's up to the state legislature to kick him out.

BREAM: Yes, we've seen an example of how this works. Morgan, in Virginia, the governor there. The yearbook photo that was of allegedly of him, one of two characters both very offensive on the basis of race. He dug in his heels.

I mean, I head to one of my show that night from the Virginia NAACP saying he's got to go. Democrat after Democrat, he decided to ride out the storm and it worked for him. Why should Governor Cuomo feel any differently about that?

MORGAN ORTAGUS, FORMER STATE DEPARTMENT SPOKESPERSON: Well, you're right, from a political perspective, Shannon. And hopefully, the New York State Assembly does move towards impeachment. I don't know how the chief executive of a state could continue with these criminal allegations.

And Shannon, what I think the travesty in all of this is the women that are -- that are affected by this, right? The women that when we go back to the Clinton scandal for decades now, see that men with power can get away with it, if they just stick it out, right?

Everything Marc just said was spot on and it was right. And my heart breaks for the young women who want to go on politics who are watching this show and hear that well, if he just sticks it out and Marc was totally right about this, then he can get away with it.

What does it say to these young women who may be put in compromising situation with powerful men? It's gross.

And frankly, I think the Democratic party should do more than just calling for him to resign.

As I checked going into this program, he's still on ActBlue's platform. ActBlue is the major fundraising apparatus of the -- of the -- most Democratic candidates in the United States.

Take him off the platform, stop doing fundraisers. Shame anyone who supports them. You can do more actually as a party than just calling for him to resign. If you really want to hold him accountable, stop the money trail.

BREAM: Here's something the governor himself tweeted back in 2013. He says there should be a zero-tolerance policy when it comes to sexual harassment and must send a clear message that this behavior is not tolerated.

But Harold, what he wanted to do today, it seems is to distinguish harassment from what his behavior was saying, you know, just goofy habits over time, maybe a generational divide.

But clearly, these outside attorneys he -- listen, he authorized this thing to take place for the A.G.'s office, but these outside attorneys clearly found something that on multiple occasions has crossed the line.

HAROLD FORD JR., FOX NEWS CHANNEL CONTRIBUTOR: So first, thanks for having me.

There's no doubt, this was a rigorous and thorough investigation and the governor invited the investigation. As the investigations findings were released today, you had the President of the United States, the leader of the Democratic Party likely the second in control of the Democratic Party in terms of a titular standpoint, the Speaker of the House, Nancy Pelosi asking for him to resign.

You had the two senators from the state Schumer and Gillibrand reiterate or underscore their call. And I think the one person and Karl hasty was mentioned earlier, the speaker who is close to him, it seems that there's some signals that there might be a shift in his position, we'll have to wait and see.

The one politician in New York we still await to hear from as Eric Adams who is likely to be the next mayor of the city. The question that I think the politicians are going to have to answer is the public opinion question. Governor Cuomo answer a lot of it today. He seems he's immovable. It seems like he's immovable.

But will those legislators in the State House and the State Senate in New York, will they be able to withstand public opinion if it shifts against them? Because it appears that the governor has made a decision, at least from his statements today, that what we know today, and it's likely that civil and criminal charges will come and if they do, we'll be having a different conversation.

But the onus now sits with the legislature, because the governor has spoken, he's not going to move. It will take someone to move him if he's going to be moved at all.

BREAM: I want to again put up the accusers. Some of them have -- we know their names and faces, others we don't. Again, the governor is attempting to rebut everything that they have said and that an outside investigation has said was at least 11 women where he crossed the line into something that was unlawful by federal and state law. We'll see if prosecutors want to get involved but at this point, what we have is the A.G.'s report, and now those conversations about impeachment.

Panel, we will see you just a little bit later. Thank you very much.

Up next, a deadly attack on a police officer outside the Pentagon today. We've got details.

(COMMERCIAL BREAK)

BREAM: Breaking tonight, America's crime crisis hits the Pentagon. A police officer is dead along with his attacker following a fatal stabbing at the transit station outside the facility. Correspondent David Spunt is there tonight:

(BEGIN VIDEO TAPE)

DAVID SPUNT, FOX NEWS CORRESPONDENT: Just outside the nation's capital, the Pentagon on lockdown Tuesday morning after a Pentagon police officer was stabbed to death. Officers on scene within minutes, shooting then killing the suspect.

WOODROW KUSSE, PENTAGON POLICE CHIEF: The incident is over. The scene is secure, and, most importantly, there is no continuing threat to our community.

SPUNT: Officers saluted their fallen colleague outside a local hospital Tuesday afternoon. Tuesday's incident outside one of the most secure places in the country is the latest on a growing list across the United States. In Washington, D.C., violent crime is bringing tensions between the police department and city council to a head.

ROBERT CONTEE, D.C. METROPOLITAN POLICE CHIEF: I'm sounding the alarm. I want to make sure the community is aware of just exactly what we're dealing with here.

SPUNT: D.C. Mayor Muriel Bowser proposed spending an emergency $11 million to hire an additional 170 police officers just months after the city council voted to strip $15 million from the department. Democratic City Council Chairman Phil Mendelson telling FOX News in a statement, "The solution can't solely be more police. If you think about it, relying only on police is a reactive strategy."

Homicide deaths are now outpacing COVID deaths in several major cities. In Washington, D.C., in July, 21 people were murdered, eight died from COVID- 19. In Chicago, from June 30th to July 27th, 95 people were killed, 31 died from COVID-19. And in Philadelphia, 40 people died from the end of June to the end of July. Officials counted 13 COVID deaths from the 27th of June until the 18th of July.

BILL BRATTON, FORMER NEW YORK POLICE COMMISSIONER: Our criminal justice system literally collapsed during the coronavirus epidemic.

(END VIDEO TAPE)

SPUNT (on camera): Shannon, just a few miles from where I'm standing yesterday, Capitol police arrested two people for possession of two guns. Meanwhile here at the Pentagon, the FBI is leading this investigation. Secretary of Defense Lloyd Austin has also ordered the flags to be lowered in honor of that fallen officer. Shannon?

BREAM: David Spunt at the Pentagon, thank you very much, David.

Also breaking tonight, Missouri Republican Governor Mike Parson is pardoning the St. Louis couple who waved funs at social justice demonstrators who marched past their home last year. Mark McCloskey and his wife Patricia both pleaded guilty to misdemeanors. They said they felt threatened by these protesters and that the marchers were trespassing on private streets.

Now to the border crisis. FOX News is told the Border Patrol is overwhelmed with many agents pulled from the field so they can help with paperwork. And the crowds just keep coming. Correspondent Bill Melugin reports tonight from La Joya, Texas.

(BEGIN VIDEO TAPE)

BILL MELUGIN, FOX NEWS CORRESPONDENT: The summer surge is ramping up here in the Rio Grande Valley. In La Joya Monday evening a gleeful group of migrants celebrates reaching the United States as thousands continue spilling across the border every day. And once again, FOX's drone right over Anzalduas bridge in Mission today, showing hundreds of migrants still waiting to be processed by Border Patrol. This as the federal government says preliminary numbers show there will be a staggering 210,000 migrant encounters in our southern border just in the month of July. That would be a new 20-year record high.

CBP data shows the migrant encounter numbers have skyrocketed under President Biden. They have gone up every single month since he first took office, this despite the administration's repeated attempts to downplay the border crisis in recent months.

JOE BIDEN, (D) PRESIDENT OF THE UNITED STATES: It happens every single solitary year.

JEN PSAKI, WHITE HOUSE PRESS SECRETARY: We have dealt with this before. It is often seasonal. It is often cyclical.

UNIDENTIFIED MALE: The border remains closed.

KAMALA HARRIS, (D) VICE PRESIDENT OF THE UNITED STATES: We have extreme progress over these last few months.

ART DEL CUETO, NATIONAL BORDER PATROL COUNCIL V.P.: If what they mean by progress is allowing people to enter and break our laws, then I guess, in their eyes, that's progress. But realistically there has been no progress.

MELUGIN: DHS sources tell FOX News that Border Patrol is so overwhelmed in the Rio Grande Valley that many agents are being pulled off the frontline to instead help with processing of family units. That's leaving few if any agents patrolling the border in some zones. The Rio Grande Valley Border Patrol sector chief writing himself on twitter, quote, "RGV agents primary mission is protecting the frontline, but shifts these days are consumed with processing, hospital watch, transportation, and checkpoints. The days of line watch operation are few and far between."

(END VIDEO TAPE)

MELUGIN (on camera): And Shannon, last week there were more than 21,000 apprehensions of migrants right here in this Rio Grande Valley sector alone. One sector, one week, one spot on the border. So you can imagine why it would be such a problem to have certain zones of the border out here essentially going unmanned and unpatrolled, that could potentially leave holes for criminals and runners to exploit. To that point, Border Patrol out here reporting yesterday they apprehended an active MS-13 gang member and a convicted sex offender. We'll send it back to you.

BREAM: Excellent reporting from you and your crew down there. Thanks, Bill.

Up next, a massive COVID outbreak in China forces the government test millions of citizens even as it refuses to cooperate with a new probe.

First, here's what some of our FOX affiliates around the country are covering tonight. FOX 13 in Tampa as more than a dozen Spirit Airlines flights are canceled at Tampa International Airport. This comes just one day after every Spirit flight at that airport was grounded. Several other airports are also canceling or delaying Spirit flights the airline blames bad weather and operational challenges.

KHON in Honolulu as firefighters work to contain what is being called the largest wildfire ever on the Big Island. Strong winds are complicating the fights, though conditions are expected to ease slightly tomorrow.

And this is a live look at Santa Monica from FOX 11. One of the big stories there tonight, actress Reese Witherspoon selling her media company Hello Sunshine to one owned by private equity firm Blackstone Group. The deal is reportedly worth about $900 million.

That is tonight's live look outside the beltway from SPECIAL REPORT. We'll be right back.

(COMMERCIAL BREAK)

BREAM: A pair of special congressional primaries today in Ohio could serve as litmus tests for the moods of Republican and Democratic parties heading into next year's midterm elections. Former President Trump is endorsing coal lobbyist Mike Carey from among a formidable field of 11 GOP primary contenders for the seat vacated by Republican Steve Stivers in May.

Voters in the Cleveland area are deciding on a replacement for former Congresswoman Marsha Fudge who left her seat to become President Biden's housing chief.

China once again refusing to cooperate with a new investigation into the origins of the coronavirus. Meanwhile, the Beijing government is planning to test millions of people in Wuhan as the virus resurges there. State Department correspondent Rich Edson has details tonight.

(BEGIN VIDEO TAPE)

RICH EDSON, FOX NEWS STATE DEPARTMENT CORRESPONDENT: Wuhan, a city of 12 million, is testing all residents for the coronavirus after officials detected seven cases there, the first, they say, in more than a year.

LI TAO, WUHAN DEPUTY SECRETARY GENERAL: We have decided to quickly conduct nucleic acid testing for all the residents in our city to comprehensively screen out confirmed cases.

EDSON: There are reports of panic buying, and a city reverting this week to the lockdowns, travel restrictions, and empty streets not seen since the pandemic began there in late 2019. Across the world, there is intense debate over this pandemic's beginnings in Wuhan, whether it developed naturally, or escaped from a government lab there.

JAMIE METZL, WHO ADVISORY COMMITTEE: We need to keep this kind of digging. We need to keep the pressure up.

EDSON: This week Republicans on the House Foreign Affairs Committee issued a report arguing circumstantial evidence shows this pandemic started at the Wuhan Institute of Virology, a conclusion China's foreign ministry calls concocted lies and distorted facts, and "smears and slanders China in pursuit of political gains." Republicans say their report is only part of an ongoing investigation, and that Congress should compel testimony from those in the U.S. who worked with or approved grants for researchers in Wuhan.

MICHAEL MCCAUL, (R-TX) HOUSE FOREIGN AFFAIRS COMMITTEE: I think we need to have a serious investigation, call these people before the Congress, and it should be bipartisan. But unfortunately, the Democrats don't seem to be very interested in this.

EDSON: Congressional Democratic leaders have pointed to the Biden administration's 90-day intelligence community review. That report is expected later this month.

NED PRICE, STATE DEPARTMENT SPOKESMAN: There is an absolute imperative for us to do all we can to get to the about the of this, not only for the question of accountability, but also for the important question of how we can save lives going forward.

(END VIDEO TAPE)

EDSON (on camera): The U.S. and other countries are calling on an investigation in China into the origins of the pandemic, one China's governor is refusing. The State Department says it is too early to say if the administration would consider sanctions against China if it continued denying access. Shannon?

BREAM: Rich Edson at the State Department. Thank you, Rich.

The Biden administration is issuing a new 60-day eviction moratorium that would protect areas where 90 percent of the U.S. population lives. The Centers for Disease Control and Prevention has identified, it says, a new legal authority for a new and different moratorium that would be for areas with high and substantial increases in COVID-19 infections.

Stocks were up today. The Dow gained 278, the S&P 500 rose 36, Nasdaq finished ahead 80.

Up next, the panel on President Biden's attempt to deal with COVID confusion.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

JOE BIDEN, (D) PRESIDENT OF THE UNITED STATES: If you are vaccinated, you are highly unlikely to get COVID-19. And even if you do, the chances are you won't show any symptoms, and if you do, they will most likely be very mild.

Last month, a study showed that over 99 percent of COVID-19 deaths have been among the unvaccinated people, 99 percent. That means if you are unvaccinated, you are much more likely to, one, get COVID-19, two, get hospitalized, and three, die if you get it.

(END VIDEO CLIP)

BREAM: The president continues his push to get more Americans vaccinated. We are back with our panel. Morgan, I'm going to start with you, because you heard Rich Edson's reporting from the State Department about this conversation about the push on China to give more access for another more thorough investigation and the discussion of whether the U.S. may consider sanctions if China doesn't. How do you see this playing out?

MORGAN ORTAGUS, FORMER STATE DEPARTMENT SPOKESPERSON: Well, they have been able to stall the entire world for a year and a half, Shannon. Mike Pompeo started calling for this in early 2020, trying to raise the alarm. And some countries, like Australia, have stood up and called for independent investigations. But what consequences has the Chinese Communist Party really suffered from hiding the origins of this virus?

You see Tedros, the head of the WHO, finally came out and said, yes, they are not complying with us. We are really not getting what we need. But you see the Europeans and many other nations, including ours, continue to trade with China. They are not suffering economically, no one is holding them accountable, really, at any of these multilateral institutions. So if the west, if democracies, if anybody wants to actually get to the truth of the origins of COVID-19, it's going to take a heck of a lot more pressure applied to the Chinese Communist Party than what they're facing now.

BREAM: In the meantime, the ripple effects continue here in the states and across the world. Today New York City Mayor Bill de Blasio announcing that he is going to roll out a new program. It kicks in in September, that you did not go into indoor dining, gyms, entertainment, other things in New York, unless have you proof of at least one of the COVID shots. Here's a bit of his announcement today.

(BEGIN VIDEO CLIP)

MAYOR BILL DE BLASIO, (D) NEW YORK CITY: Someone is vaccinated they can do all the amazing things that are available in this city. This is a miraculous place, literally full of wonders. And if you are vaccinated, all that is going to open up to you. You will have the key. You can open the door. But if you are unvaccinated, unfortunately you will not be able to participate in many things. That's the point we are trying to get across.

(END VIDEO CLIP)

BREAM: Harold, I saw a ton of reaction to this, positive and negative. The first one I saw was from parents, saying hey, my kid is under 12. We were going to take a trip to New York. This isn't good for tourism because kids now can't go to restaurants in New York, and others who say there's a high percentage of minority groups in New York who are not vaccinated for whatever reason, and this is going to shut the door to them on the city's businesses. What's your reaction?

HAROLD FORD JR., FORMER TENNESSEE REPRESENTATIVE: So, a couple things. I understand some of the frustration on the parts of both sides, people who are not vaccinated and people who are vaccinated. But I think it's important for people who are in positions of responsibility and positions of power like Mayor de Blasio to make it clear for here's how we keep our city safe. And if they're going to take -- I live in New York. If they're going to take extra steps to ensure that, I think that voters will ultimately make that decision.

The facts are clear. The science isn't changing. The virus is changing. One out of three new cases in our country are coming from two states, Florida and Texas. The data is clear, if you are vaccinated, and I am, the likelihood of getting sick is far less than if you are. If you do get sick and you do contract the virus, you are not going to find yourself in a hospital or, God forbid, suffering serious illness or even death.

Corporate America is following this lead as well. You see many companies requiring vaccination. And if that continues, I think you are going to find more cities, even universities -- I think one of the Indiana University today had their decision to require some sort of decision to be upheld. I think you're going to see more and more schools, more and more companies, and more and more municipalities do just this.

BREAM: Marc, do you think that we are going to lead -- we keep hearing about this, there are two Americas. There's a divided America over a number of issues. Are we going to have two Americans when it comes to vaccinations, and where you can access and live life?

MARC THIESSEN, COLUMNIST, "WASHINGTON POST": It looks like we are heading that way, and it's a problem. The reality is what Harold proposes and what the mayor of New York are doing is going to lead to more vaccine resistance because it's going to turn this into a political issue, saying I'm not going to let the government force me to put something in my body, especially something if you ask a lot of vaccine hesitant people why they are not getting it, it's because it's still considered an experimental drug on an emergency authorization. The Biden administration doesn't plan to have this thing fully authorized by the FDA until 2022. There is no excuse for that.

And then the other thing that's so unfair about it is that there are a lot of people who don't need to get vaccinated because they have natural immunity from prior infection. Marty Makary, our friend at FOX News, Johns Hopkins professor, expert on this stuff, says that about half the population has vaccinated immunity. And there is a new Israeli study that just came out which shows that natural immunity is almost seven times more powerful than vaccinated immunity. So why should we discriminate?

The easiest way to get immunity is to get the vaccine, that's the safest and easiest way. But some people choose the hard way. They shouldn't be discriminated against because they got their immunity through surviving a COVID infection. So this is unfair mandate, and it's going to create more backlash and more vaccine resistance from the American people.

BREAM: And Morgan, I want to get a quick comment from you. You heard Harold reference Florida Governor DeSantis had kind of a rip-roaring presser down there, saying we are not going to have masks in schools. We trust people to make their own decisions. But he's taking a lot of heat over rising case numbers down there. Your thoughts?

ORTAGUS: I think the bottom line is the governor is showing and reflecting the people of Florida that want to make the best decisions for their children and for their own lives. Listen, I have always encouraged being a part of the administration. I have always encouraged vaccines and responsible behavior. But this is a country which prides individuals' ability to make the best decision for their family, and there are some states that believe in that and others who don't.

And while people are pointing at Florida right now, just wait. COVID is cyclical. It will hit other parts of the country. It's hitting Florida right now, but it will hit other states. It comes in waves. We all know this. We have all seen this story play out last year.

BREAM: Seasonality is certainly part of that broader equation with the virus as well. OK, panel, thank you very much.

When we come back, we'll get your headlines for tomorrow.

(COMMERCIAL BREAK)

BREAM: Finally tonight, a look at tomorrow's headlines, let's kick it off with Harold.

FORD: It's been reported that the Indianapolis Colts have lost their quarterback Carson Wentz for 12 weeks. My headline tomorrow is the Colts resign Peyton Manning for a 12-week contract.

BREAM: Oh, that would be a lot of fun. All right, Morgan, can you top that?

ORTAGUS: Mine is probably boring compared it to that, but there is a lot of terrorist attacks going on in the Gulf perpetrated by Iran. So my headline is, the Iranian military takes oil tanker hostage in inauguration gift to new Iranian president.

BREAM: Let us hope that one does not come true. Marc?

THIESSEN: Not to be outdone by Cuomo's montage of himself kissing strangers, Biden releases montage of himself sniffing strangers' hair.

BREAM: Oh, boy. Someone is going to release it. I don't think it is going to come from White House, though. Harold, Morgan, Marc, thank you all very much.

FORD: Thanks, Shannon.

BREAM: Tomorrow on SPECIAL REPORT, officials declare a water shortage in the nation's largest reservoir as the western drought intensifies.

Thanks for watching SPECIAL REPORT. I'm Shannon Bream. Please join me midnight eastern, 9:00 pacific, for FOX NEWS AT NIGHT. FOX NEWS PRIMETIME hosted by Ben Domenech starts right now. Hey, Ben.

Content and Programming Copyright 2021 Fox News Network, LLC. ALL RIGHTS RESERVED. Copyright 2021 VIQ Media Transcription, Inc. All materials herein are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of VIQ Media Transcription, Inc. You may not alter or remove any trademark, copyright or other notice from copies of the content.