This is a rush transcript from "Special Report," July 9, 2020. This copy may not be in its final form and may be updated.

JOHN ROBERTS, FOX NEWS HOST: Jesse, thanks so much. A former colleague of mine once said any wine is better than no wine at all. So, thank goodness for the fairies. Thanks, Jesse.

Good evening and welcome to Washington. I'm John Roberts in for Bret Baier.

Breaking tonight, a mixed verdict from the Supreme Court on whether President Trump's financial records including his tax returns can be made public. The bottom line, for now, is that they cannot.

The justices rejected the argument that the president is immune from state grand jury subpoenas while in office. They punted though on whether congressional committees can have access to the records, throwing both issues back to the lower courts. President Trump calls it an unfair political prosecution.

Both the president's lawyer and the Manhattan prosecutor going after him are claiming a win. House Speaker Nancy Pelosi says she will continue to press the case in the courts.

We will talk live with the Trump campaign communications director a little bit later in this program. We have Fox team coverage for you tonight.

Kristin Fisher is at the White House with more on the president's reaction. Up first though, Fox News chief legal correspondent and anchor of "FOX NEWS @ NIGHT", Shannon Bream leads us off. Good evening, Shannon.

SHANNON BREAM, FOX NEWS ANCHOR: Hello, John. Well, you are right. This is something that came in today with the Supreme Court holding that as a principle. The president can face subpoenas from both, state criminal prosecutors and congressional committees, but they did not fully resolve the case as the president's been fighting, meaning, it's almost impossible that anyone will get those records before Election Day.

(BEGIN VIDEOTAPE)

BREAM: The Supreme Court wrapping its term with two, seven to two blockbuster decisions. Both making headlines and yet not fully resolving the president's fight to block access to his financial records.

The first involves a criminal investigation in New York and a subpoena tied to a grand jury there. In his concurrence, Justice Kavanaugh best summed up where the court leaves that disputes. The court today unanimously concludes that a president does not possess absolute immunity from a state criminal subpoena, but also unanimously agrees that this case should be remanded to the district court, where the president may raise constitutional and legal objections to the subpoena as appropriate.

The second case arose after three House committees subpoenaed the president's financial records going back several years, including well before his White House run.

Writing for the majority, the chief justice outlined a number of criteria courts must consider before backing the enforcement of a congressional subpoena against the sitting president.

Noting quote, burdens imposed by congressional subpoena should be carefully scrutinized, for they stem from a rival political branch that has an ongoing relationship with the president and incentives to use subpoenas for institutional advantage.

Finding that the lower courts had not properly made a full analysis of the congressional subpoenas, that case was also sent back for further consideration.

In his dissent, Justice Thomas argued Congress has only one way to get to the documents. Quote, the power to subpoena private nonofficial documents is not a necessary implication of Congress as legislative powers. If Congress wishes to obtain these documents, it should proceed through the impeachment power.

All the subpoenas in question went not directly to the president, but to two companies in possession of his financial records. And tonight, both of them are weighing in.

Mazars USA saying it fully intends to comply with its legal obligations. Deutsche Bank saying it will abide by a final decision by the courts.

(END VIDEOTAPE)

BREAM: Well, tonight, it is anyone's guess when that will actually be. Based on the Supreme Court's guidance and the way the federal court system works, it could take months, maybe years to settle these cases once and for all, John.

ROBERTS: And the key point being, Shannon, potentially after the November election. More on that I guess on Fox News tonight, yes?

BREAM: See you then at 11:00.

ROBERTS: All right, thanks, Shannon.

As we mentioned a moment ago, both sides are calling today's rulings a win, sort of. Correspondent Kristin Fisher has more on that tonight from the White House. Good evening, Kristin.

KRISTIN FISHER, FOX NEWS CORRESPONDENT: John, President Trump fired off seven tweets in the two hours immediately after the Supreme Court's ruling came down calling it not fair and political prosecution. But by the time he spoke in front of the cameras this afternoon during a Roundtable with Hispanic leaders, he seemed to have cooled down.

(BEGIN VIDEOTAPE)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Well, the rulings were basically starting all over again, sending everything back down to the lower courts and you start it all over again, so, from a certain point I'm satisfied. From another point, I'm not satisfied.

FISHER: President Trump is satisfied that his financial records will remain private, at least for now. But he's not satisfied the justices ruled that no president has absolute immunity from criminal subpoenas, including his two nominees to the high court.

How is President Trump feeling about the two justice is that he had pointed to the Supreme Court, Neil Gorsuch and Brett Kavanaugh ruled against him today?

KAYLEIGH MCENANY, WHITE HOUSE PRESS SECRETARY: The justices are entitled to their opinion, this is an independent branch of government.

FISHER: Maintaining that independence and the system of checks and balances, is what House Speaker Nancy Pelosi says today's rulings were all about.

REP. NANCY PELOSI (D-CA): What was at stake is the president above the law. If, in fact, they would have ruled that he is above -- not above the law. I mean, that he -- that he can do whatever he wants without any oversight from Congress, that would have been just devastating to tell you honest truth.

FISHER: But the president's attorney, Jay Sekulow, says the fight is not over yet, quote, we will now proceed to raise additional constitution and legal issues in the lower courts. It means that any chance for the public or Congress to see the president's tax returns or financial records has likely been postponed until after the November election which is a win in it of itself.

But it also means that Manhattan District Attorney Cyrus Vance's investigation which he says, quote, was delayed for almost a year by this lawsuit will resume, guided as always by the grand jury's solemn obligation to follow the law and the facts, wherever they may lead.

TRUMP: This is a political witch hunt to the likes of which nobody has ever seen before. It's a pure witch hunt, it's a hoax, just like the Mueller investigation was a hoax that I won and this is another hoax.

(END VIDEOTAPE)

FISHER: Attorney General Bill Barr is now weighing in, saying he's disappointed by the Supreme Court's decisions and so is White House Chief of Staff Mark Meadows who's calling it a fishing expedition. Essentially giving the green light to every local district attorney across the country to go ahead and harass the president, those are his words, John.

ROBERTS: Kristin Fisher at the White House for us tonight. Kristin, thanks so much.

Let's bring in our panel now, Bill Bennett is the former education secretary and host of The Bill Bennett Show podcast. Susan Page, Washington Bureau Chief at USA Today and Matthew Continetti, founding editor of The Washington Free Beacon.

Susan, let's start with you. What do you see the effects of the rulings on the tax returns being both in the short term and the long-term?

SUSAN PAGE, WASHINGTON BUREAU CHIEF, USA TODAY: Well, very different. I think in the short term, this was a victory for President Trump. This puts the idea that his tax returns are going to be out there before voters go to the polls in November, very unlikely.

But over the long term, it's an assertion of the fact that the president does not have absolute immunity that he is subject to criminal investigations.

And if -- that will be the case if he wins reelection in November, it will also be the case if he loses. So, over the long term, I think the president is going to see this investigation not go away and have to deal with it, but not have to deal with it in the middle of a presidential campaign.

ROBERTS: Likes of other people, the Attorney General Bill Barr saw some positives, but also negatives. Bill Bennett, I want to ask you about this in just a second. But first of all, let's listen to the attorney general.

(BEGIN VIDEO CLIP)

WILLIAM BARR, U.S. ATTORNEY GENERAL: We are disappointed in the decision to the extent that did not accept our argument, the government's argument about the extent of the president's immunity, but as a practical matter, that decision made very clear that the president just is not at the mercy of (INAUDIBLE) and investigators and that there are protections and defenses that can be raised.

(END VIDEO CLIP)

ROBERTS: Bill Bennett, sir, you served in the Reagan administration, what do you think is the effect here -- the net effect of the Supreme Court decisions on future presidencies? Because it's not just all about President Trump, it's about precedent here.

BILL BENNETT, FORMER SECRETARY OF EDUCATION: Well, that's a good question and that's the worry of some of the smartest legal minds in the country like Bill Barr, Andy McCarthy, John Huber, professor at Berkeley, concern here about federalism. It's not that the president can't be subpoenaed, we've had that before. But you've got 2,300 these district attorneys who could in the future, in the present or in the future go after presidents and tie them up and tie them up in knots. And I think that's a very strong argument that the administration has that this was wrongly decided.

It won't affect much politically. Politically this will -- this will be a cipher. This election will be decided by the things we know about the economy, the effects of COVID on things like the economy and school, the state of our cities, civil unrest.

And of course, the bottomless irrational contempt of Democrats for Donald Trump, which is the main reason that they're going to the polls. So this matters not much in November, but later on, maybe so for reasons -- complicated reasons of federalism.

ROBERTS: One of the most interesting aspects of this is that Matthew, in the seven to two decision, Justices Gorsuch and Kavanaugh voted in essence against the president. Do you think he is a little surprised at what his nominees did?

MATTHEW CONTINETTI, FOUNDING EDITOR, THE WASHINGTON FREE BEACON: No, he may have been surprised a few weeks ago when Judge Gorsuch ruled against him in the bus stop decision. So, maybe that surprise is a worn off by now.

Look, these -- you never know with judges, and many Republican presidents have found themselves surprised after they nominate a justice to the Supreme Court only to find that the justice has in mind of his own or her own in the case of Sandra Day O'Connor.

I agree with my other -- this team panelist, this is a political win for Trump, but I think it's an institutional victory for the courts which is in both cases, they remanded the cases lower to the lower courts and they place the judiciary at the center of all of these future legal battles that the President Trump is going to be wagering.

ROBERTS: And Susan, let me ask you about the effect on Congress as well. Nancy Pelosi sort of moved past this very quickly in her weekly press conference today. Listen here.

(BEGIN VIDEO CLIP)

PELOSI: The president is not above the law. The Congress will continue to conduct oversight for the people upholding the separation of powers that is the genius of our constitution. We will continue to press our case in the lower courts.

(END VIDEO CLIP)

ROBERTS: Reading between the lines that seem to be the speaker of the House saying we didn't get what we wanted, so let's move on to other things. But then there was also some questions, Susan, as to whether or not Congress really wanted a favorable decision from the courts, because that would've launched a whole other series of investigations leading into the election.

PAGE: I would -- I suspect the congressional Democrats would have been very happy with the decision. I said yes, you can have the president's tax returns, here they are, that didn't happen. But the court did not say that Congress has no oversight powers. They suggested that in this case, Congress was on a kind of fishing expedition.

And so, Pelosi said today in her news conference that they will go back to the lower courts, presumably pursue a narrow or case of subpoenas, tie it more closely to the actual passage of legislation and try again. But again, all of that process is almost certainly take us at least into next year.

ROBERTS: Bill Bennett, what do you make of this idea that the Supreme Court said in a criminal investigation, the president does have to comply with the subpoena, that they do want to hear more legal arguments in the lower courts on that. But Congress doesn't necessarily have the same access to the same documents.

BENNETT: Well, that's a separation issue. That's a division of powers issue and we've had these debates before in the country.

The question here though, another political question, the political motivation here even for a criminal charge, was it -- was it politically motivated? And I suspect it probably was.

But the point of your question, right, there's some authority legal issues here, but politically I think of very little effect.

But besides, if people had found out Donald Trump had taken every deduction possible, would this have been a shock to them? I don't think so. I'm not sure there was anything in there that would have changed anybody's mind at this point and where we are four years later.

ROBERTS: And Matthew Continetti, you said you believe that this is a win for the president, does this take the issue off the table for the election, or could Joe Biden raise it in the debates?

CONTINETTI: Biden might raise it in the debates, but I agree with Dr. Bennett, I don't think anyone will be voting this November on the issue of Trump's tax returns. That they're going to be running -- they're going to be voting on how they judge President Trump's handling of the coronavirus crisis and where the economy is in November.

ROBERTS: Matthew Continetti, Bill Bennett, Susan Page, thanks very much. Stay standby because we'll come back to you to talk about the most talked- about subject of the week, one that parents continue to wrestle over whether or not kid should go back to school with the coronavirus raging, thanks. We'll see you just a little bit later in the show.

First-time jobless claims in the midst of the coronavirus pandemic are down tonight for the 14th consecutive week, but the total over 16 weeks is now just shy of 50 million in total.

Within the past few minutes, we have learned that New York Mayor Bill de Blasio is canceling all large events requiring a city permit through the end of September.

Meanwhile, new records continue to beset throughout the country for single day infections. Correspondent Jonathan Serrie has the latest for us tonight from Atlanta.

(BEGIN VIDEOTAPE)

JONATHAN SERRIE, FOX NEWS CORRESPONDENT: With nearly 9,000 new cases in 24 hours, Florida confirmed 120 new deaths, its highest total yet. COVID-19 surged across the Sun Belt cast doubt on earlier speculation it would act as a seasonal illness like the flu.

DR. ANTHONY FAUCI, DIRECTOR, NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES: To the people who expected to see a sharp decline in the number of cases as the weather became warm and moist, I think we're seeing that that's absolutely not the case.

SERRIE: Today, Texas Governor Greg Abbott ordered hospitals in more than 100 counties to postpone elective surgeries.

The medical director of a Houston hospital predicts his city will soon resemble New York during its peak because people got careless during the Fourth of July.

DR. JOSEPH VARON, CHIEF MEDICAL DIRECTOR, UNITED MEMORIAL MEDICAL CENTER: There are a lot of people did not listen, a lot of people went out, and more likely or not, we're going to see those patients come into the hospital over the next two weeks.

SERRIE: As federal health officials grapple to mitigate the outbreak, the Trump administration is pushing states to reopen school in the fall. The CDC is expected to issue more information for teachers and parents.

ADM. BRETT GIROIR, ASSISTANT SECRETARY, HEALTH AND HUMAN SERVICES: Children really need to be -- to the degree that we can, in a classroom physical president to learn. If we follow the CDC guidelines, if we follow our personal responsibility, we can get them back in the classroom and be safe at the same time.

SERRIE: In hard-hit areas, lines at testing centers are getting longer, and the results more concerning.

DR. UMAIR SHAH, PUBLIC HEALTH DIRECTOR, HARRIS COUNTY, TEXAS: We were previously seeing about one in 10 or even one in eight of our tests that we were doing in the community, they were coming in back positive, now we're seeing one in four.

SERRIE: Many infected people are waiting longer to find out their results. Atlanta Mayor Keisha Lance Bottoms tweeted, it took her family eight days. "If we had known sooner, we would have immediately quarantined."

Although she is infected, the mayor remains asymptomatic. Last night, she issued an executive order requiring people to wear masks in public. And today, Starbucks announced that starting July 15th, it will require customers who come inside to wear facial coverings. John?

ROBERTS: And the state continues to surprise a lot of people. Jonathan Serrie for us tonight in Atlanta. Jonathan, thanks so much.

Stocks were a mix today. The Dow Jones lost 361 points, the S&P 500 dropped 18, but the NASDAQ still on its rocket ride gaining another 55 for another new record close.

Coming up next, our first look at the Joe Biden economic plan. First, here is what some of our Fox affiliates around the country are covering tonight.

Fox 5 in Los Angeles, as the Ventura County Sheriff's Department, says the search for actress, singer, and author Naya Rivera is now a recovery mission, and that she is presumed dead. She was out on a lake in a boat with her 4-year-old son.

Rivera was one of the stars of the T.V. show "Glee". She is believed to have drowned. That 4-year-old son was found alone on a rented boat in Lake Piru, yesterday afternoon.

Fox 5 at New York, as Mayor Bill de Blasio and civil rights activist Al Sharpton, participated the painting of a Black Lives Matter mural in front of Trump Tower in Manhattan.

President Trump has called it a symbol of hate and urge the city to instead spend the money on the police department.

And this is a live look at Chicago from Fox 32, one of the big stories there tonight. A company is developing graphics for the Cubs T.V. broadcasts that will show the effect of weather on the flight of baseballs. The firm is also advising one unidentified major league team.

That's tonight's live look "OUTSIDE THE BELTWAY" from SPECIAL REPORT. We will be right back.

(COMMERCIAL BREAK)

ROBERTS: In tonight's "DEMOCRACY 2020" report, Joe Biden wants to give the federal government sweeping new powers for spending and regulating if he is elected president. We will get reaction from the communication's director for the Trump campaign in a moment.

First, the specifics on the Biden proposal. Correspondent Peter Doocy, reports tonight from Scranton, Pennsylvania.

(BEGIN VIDEOTAPE)

PETER DOOCY, FOX NEWS CORRESPONDENT: Just minutes away from his childhood home in Scranton.

JOE BIDEN (D), PRESIDENTIAL CANDIDATE: I couldn't come to Scranton without coming by the old house.

DOOCY: Joe Biden rolled out an economic plan for the future.

BIDEN: When the federal government spends tax payer's money, we should use it to buy American products.

DOOCY: And that sounds kind of familiar.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: In my administration, we live by two simple rules: buy American, and hire American.

DOOCY: Biden's plan calls for federal agencies to spend $700 billion taxpayer dollars on American made goods and services. But, $700 billion in new spending sent off an alarm at the conservative Club for Growth. "Tax cuts and deregulation are what caused the economic boom prior to the pandemic, and pro-growth policies are what are helping America get the economy working again, not veiled socialism."

A Democratic socialist Bernie Sanders, teamed up with Biden to write 110 pages worth of proposals to better merge their platforms.

SEN. BERNIE SANDERS (D-VT): The compromise that they came up with if implemented, will make Biden the most aggressive president since FDR.

DOOCY: Sanders didn't get Medicare for All or the Green New Deal into this unity document, but Republicans remain skeptical.

REP. KEVIN MCCARTHY (R-CA): We can learn the first thing; this is not a unity group. This is a surrendering to the socialists.

DOOCY: Biden's weekly in-person events are carefully staged to ensure social distancing. But capacity at today's event, when even overhang, suddenly surge, when the 77-year-old called an audible.

BIDEN: Was that not rain? I thought -- OK, I thought that was rain. It is? You guys, come on in. Don't stay out there.

(END VIDEOTAPE)

DOOCY: It did rain, but when things cleared up, Biden came here to his childhood home. And he returns to Scranton just a few months ahead of his chance to become the 46th U.S. president.

He said he has nothing but good memories here. But when I asked him if he had time to take a few questions, he said, no. John.

ROBERTS: Peter Doocy, for us tonight in Scranton. Peter, thanks so much.

Let's get reaction to the Biden plan. Today, Supreme Court decisions in the latest battle state polls from Trump campaign communications director Tim Murtaugh.

Tim, good evening to you. When you look at this $700 billion plan that the former vice president touted today, it almost looks like he is trying to out-Trump, Trump.

TIM MURTAUGH, DIRECTOR OF COMMUNICATION FOR TRUMP'S REELECTION CAMPAIGN: Well, I mean, I thought it was interesting listening to Peter's report just there. If you compromise with a socialist like Bernie Sanders, it's still socialism. And I think, Americans don't have to guess what an economy would be like under Joe Biden because we've lived through it once already.

He over slow -- oversaw the slowest economic recovery since the great depression, there were low wages and stagnant job growth. And he says the first thing that he'll do as president is to raise taxes. And despite what he's claiming here, we know that he has embraced the Green New Deal. He's got AOC helping him write his policies.

This is a disastrous approach to the economy, and he dresses it up with a fancy slogan that, by the way, he plagiarized from the United Nations as appropriate as that might seem to be.

And so, Joe Biden is an economic disaster we've already been through at one time. President Trump, on the other hand, already built the world's best economy one time before it was interrupted by the global pandemic. And he's already doing it again. The May and June jobs numbers proved that.

ROBERTS: On that point, the president says that the economy is poised for a rapid snap back from coronavirus. It looks like it's heading in that direction, however, with the new uptick in coronavirus cases, there are a lot of governors including in the State of Texas we are looking at slowing things down.

If the economic recovery stalls, even though the president, Tim, has got numbers that are outpacing Joe Biden in terms of his approval on the economy, could the whole thing come unraveled for him in the weeks to come?

MURTAUGH: I think, you know, since the coronavirus crisis hit, the president's economic message makes -- has been even stronger. Americans know that the American economy was the world's best, and the best economy that any American alive had ever seen until the coronavirus, which again, I remind you, was a global pandemic affecting every country on earth.

And we're already seeing the incredible growth. People talked about a V- shaped curve, Joe Biden laughed at that. Joe Biden needs to cling to the bad news. And everyone should remember this, good news for Americans is bad news for Joe Biden. What a pathetic and sad place to be, actually rooting against Americans and their prosperity. Because he needs -- he needs for the economy to not recover.

And for a man who wants to be president of the United States, what a pathetic place to be.

ROBERTS: Let me ask you about the Supreme Court rulings today. In the House, the Speaker Nancy Pelosi seemed eager to move past the issue. Let's listen here.

(BEGIN VIDEO CLIP)

PELOSI: We have a path that the Supreme Court has laid out that we certainly will not ignore. And we will never stop our oversight. That is our responsibility under the constitution of the United States.

(END VIDEO CLIP)

ROBERTS: Tim, she certainly didn't say, we're going to continue to pursue this. Is this issue effectively off the table as an election-year issue?

MURTAUGH: Well, I mean, they got beat, that's why she's asking -- talking that way. And it's essentially starting over down in the lower courts. But what this always was, was it just another extension of the partisan witch hunt? They tried it with Russia, they tried it with the Ukraine in the sham impeachment, and none of it worked.

And it's because they can't beat Donald Trump on the merits. This was litigated once already in 2016, and Americans elected President Trump, president. And, you know, I think at the bottom line here is, Donald Trump is a wealthy man. I don't think that's a secret to anybody. He is proud of his success.

And I think a better question would be, what are the financial dealings of Joe Biden's family? You know, this brings up the question, by the way, where is Hunter in all of this? He seems to have done pretty darn well for himself, while his father has been a public office. I think more people should take a closer look at that.

ROBERTS: I expect that we're probably hear more about that too as the days and weeks ahead progress. Let me ask you about what looks like bad news. Battleground states, according to the RealClearPolitics average in Pennsylvania, Biden is up 6-1/2, Florida is up five, Michigan up 7-1/2. North Carolina, Biden is up three. Wisconsin, he's up 6-1/2. Arizona, up 3- 1/2. And in New Hampshire, he's up for 4.3 percent.

Now, the president's numbers are better than they were in 2016, but he wasn't an incumbent then. And I take it that you don't want to be running as an underdog here. So, what do those numbers say to you even though we're four months out?

MURTAUGH: The president is in strong position. Look, if we believe the public polls, then, Hillary Clinton would be in the White House right now running for reelection. We know the numbers that we see internally and we know that the president remains in strong position in all of our key states against Joe Biden.

These public polls, they always under-sample Republicans. The ones that made big news a little while ago, The New York Times, 26 percent of the people in that poll were identified as Republican. Barely a quarter of the people in that poll. That is not an accurate look at where the country is, politically.

And so, when you start with a quarter of the people in a poll being Republicans, of course, they're going to show Biden with a lead. And that's why they do polls this way, John. They're trying to depress the enthusiasm of President Trump supporters, make him think that -- make them think that the race is in a certain position when it's not.

And I tell you what, the enthusiasm of Trump voters cannot be depressed. People we know, that people will run through a brick wall to vote for Donald Trump. And nobody running through a brick wall for Joe Biden.

ROBERTS: Well, Tim, as always, you are welcome to share your internal polls any time you like. Thanks for joining us, appreciate it.

MURTAUGH: Surely, John. Thank you, John.

ROBERTS: Up next, President Trump's top military advisors on the troops who are dealing with anti-law enforcement protests in the nation's capital.

First "BEYOND OUR BORDERS tonight. The U.S. is sanctioning three senior officials of the Chinese Communist Party for alleged human rights abuses targeting ethnic and religious minorities.

Secretary of State Mike Pompeo, saying additional visa restrictions are being placed on other Chinese officials believed involved in the unjust detention of -- or abuse of the Uyghurs, ethnic Kazakhs, and members of other minority groups.

Brazilian President Jair Bolsonaro, says he is already feeling better after testing positive for the coronavirus. Thanks to the controversial anti- malaria drug, hydroxychloroquine.

The president has been a supporter of using the drug for months and was very public about taking it himself.

Conservationists say nearly all of Madagascar's much loved lemurs are under threat, and almost one-third are just one step away from extinction. The International Union for Conservation of Nature blames deforestation and hunting on the giant island off of the coast of eastern Africa.

Just some of the other stories beyond our borders tonight. We'll be right back.

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ROBERTS: The president's top military advisors are talking about what they know and don't know about Russia's so-called bounty on U.S. forces in Afghanistan. The secretary of defense and the Joint Chiefs of Staff chairman also talking about the use of the military to deal with civilian disturbances. Chief Congressional Correspondent Mike Emanuel shows us today's testimony before the House Armed Service Committee.

(BEGIN VIDEOTAPE)

MIKE EMANUEL, FOX NEWS CHIEF CONGRESSIONAL CORRESPONDENT: The secretary of defense and chairman of the Joint Chiefs was pressed on the military's role in recent protests in Washington, D.C. including clearing Lafayette Park near the White House June 1st.

MARK ESPER, DEFENSE SECRETARY: It's still unclear to me who gave the direction to clear the park at that moment in time.

REP. ADAM SMITH (D-WA): You see, I find that hard to believe. I'm sorry, but it's like a pretty big decision. A lot of people there. Everyone is there, and it just sort of happened?

EMANUEL: Esper noted in what has been described as peaceful protests, 50 park police, 60 Secret Service, and six National Guard soldiers were injured, including one who was hit in the head with a brick. But Esper cautioned against bringing in active duty soldiers.

ESPER: Using active duty forces in a direct law enforcement role should remain a last resort.

EMANUEL: General Milley weighing in on the broader societal issues.

GEN. MARK MILLEY, JOINT CHIEFS CHAIRMAN: We as a nation and as a military are still struggling with racism, and we have work to do.

EMANUEL: Milley also took aim at the Civil War Confederate names on military bases issue.

MILLEY: It was an act of treason at the time against the union, against the stars and stripes, against the U.S. Constitution. And those officers turned their back on their oath.

EMANUEL: Some lawmakers are also focused on recent reporting from "The New York Times" and others on leaked intelligence the Russians offered Afghan fighters a bounty to kill U.S. troops.

UNIDENTIFIED MALE: Have you received an intel briefing that included the word "bounty" with respect to Russians and the killing of American men and women in uniform?

ESPER: Congressman, to the best of my recollection I have not received a briefing that included the word "bounty."

(END VIDEOTAPE)

EMANUEL: Milley told lawmaker the Russians have been meddling in Afghanistan since probably 2013. He promised if it's true Russia has a bounty program. The U.S. will take action. John?

ROBERTS: Mike Emanuel for us tonight in Washington. Mike, thanks so much.

The mayor of Seoul, South Korea, has been found dead. Sixth-four-year-old Park Won-soon was the city's first ever three-term mayor, widely considered the second most powerful person in South Korea. Police are not saying what caused Park's disappearance and death. They are not conforming local media reports that one of Park's secretaries had lodging a complaint over alleged sexual harassment. The mayor's daughter reported him missing earlier on Thursday, saying he had given her a will-like verbal message and then left home.

There are new concerns tonight about the North Korean nuclear weapons program. Analysts have identified what they believe to be a new warhead factory. Your senior foreign affairs correspondent Greg Palkot with that.

(BEGIN VIDEOTAPE)

GREG PALKOT, FOX NEWS SENIOR FOREIGN AFFAIRS CORRESPONDENT: A new reminder on what a dangerous nuclear threat North Korea remains. Experts say satellite images show a previously undeclared site in North Korea called Wollo-ri near Pyongyang, where nuclear warheads are believed to be assembled and stored. Analysts point to high-security, probable underground facilities, and a lot of activity. Atomic warheads ready to be mounted on intercontinental ballistic missiles capable of targeting U.S.

JEFFREY LEWIS, MIDDLEBURY INSTITUTE: If there were some kind of agreement to disarm North Korea, that would have to be on the list.

PALKOT: Despite high level diplomacy involving President Trump and North Korean leader Kim Jong-un, the fear is the north has continued to build up an arsenal of nuclear weapons and missiles. Chairman Kim recently declaring he would expand his nuclear war deterrent, and his government has rejected the idea of another summit with the U.S. The president this week said he was still willing to talk, so did Secretary of State Pompeo in an audio press conference today.

MIKE POMPEO, SECRETARY OF STATE: We are very hopeful that we can continue to have this conversation, whether that's at levels beneath the summit or if it's appropriate, and there is a useful activity to take place to have senior leaders get back to gather as well.

PALKOT: Deputy Secretary of State and North Korea Envoy Stephen Biegun was in South Korea and Japan this week looking for any diplomatic daylight, the North apparently preparing for stormier times ahead.

(END VIDEOTAPE)

PALKOT: Late today South Korea media quoting a North Korean source alleged that the site named was a military academy, not a nuclear warhead plant. Experts dismiss the claim, except to say that the place is indeed war-like. John?

ROBERTS: Greg Palkot for us tonight. Greg, thanks.

What could be the most talked about story of the week, getting your kids back to school this fall. We'll have the latest today when we come back.

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ROBERTS: The ousted federal prosecutor who was leading investigations into the president's allies when he was fired says Attorney General William Barr pressured him to resign. Geoffrey Berman spoke to the House Judiciary Committee today for its investigation into alleged politicization at the Justice Department. Attorney General William Barr is disputing that characterization. Barr tells ABC News he would like to hear some examples of what he called "unrighteous cases."

The federal judge hearing the criminal prosecution against former National Security Adviser Michael Flynn is appealing an appeals court decision to dismiss the case. Judge Emmet Sullivan wants the entire court of appeals for the District of Columbia circuit to review last month's ruling directing him to drop the Flynn case, the so-called en banc hearing. Sullivan has refused to sign off on a Justice Department request to dismiss the charges of lying to the FBI. Flynn, who pleaded guilty, says the FBI entrapped him.

Former presidential attorney and fixer Michael Cohen is back in federal custody tonight after objecting to a ban on media content or writing a book as part of terms for a home confinement agreement. Cohen was meeting with parole officials when U.S. Marshals shackled him and took him away, even though Cohen said he would drop his objection and sign the agreement. This comes following news reports of Cohen's recent trips to Manhattan restaurants. Cohen was let out of prison where he was serving time for campaign finance fraud and lying to Congress because of the coronavirus pandemic.

It could be the most talked about subject in the country tonight, whether your children will be back in the classroom and school resumes in the coming weeks. New York City's plan is not much of a plan, according too many critics. Correspondent Laura Ingle takes a look tonight from Long Island.

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MAYOR BILL DE BLASIO (D-NY), NEW YORK CITY: We are only going to do things that we are convinced are safe.

LAURA INGLE, FOX NEWS CORRESPONDENT: A blended learning plan unveiled by New York City Mayor Bill de Blasio Wednesday will have students going back to school two to three days a week wearing a mask, with students learning from homes the other days.

BECK YEWCHUK, PARENT: In my opinion it doesn't matter if you are there for five days or for two days, you are still in that environment with the other kids, with the germs.

INGLE: While not all parents are on board, de Blasio says blended learning is the city's best and safest solution, one of the many proposed strategies put out by the Centers for Disease Control.

DR. ROBERT REDFIELD, DIRECTOR, CENTERS FOR DISEASE CONTROL AND PREVENTION: We have to continue to work with the schools to look between the six feet apart, wearing face covering, social distancing in the seating.

INGLE: Despite rising cases in some areas, 40 states have plans to reopen, ranging from blended to staying at home, and staggering students between morning and afternoon classes. Still, Secretary of Education Betsy DeVos says she feels that school administrators can make the right choices to get kids back into the classroom.

BETSY DEVOS, EDUCATION SECRETARY: They no excuses for sowing fear and for making excuses when there are clearly safe ways to do things.

INGLE: The president of the United Teachers Federation in New York is sounding the alarm on how working parents and teachers will be able to pull this off with childcare.

MICHAEL MULGREW, UNITED FEDERATION OF TEACHERS: There is definitely going to be a childcare crisis. And that's something the city needs to tackle and get on top of.

INGLE: Some education professionals are criticizing the Trump administration, saying they care more about the economy then health safety. National Education Association President Lily Eskelsen Garcia called Trump a, quote, "idiot" on a conference call this week, daring the president to sit in a classroom with 39 sixth-graders.

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INGLE: But there is common ground. The president of the American Federation of Teachers says remote learning is not best. And the consensus is clear, parents and educators alike say that in-class learning is the most ideal scenario. John?

ROBERTS: Laura Ingle for us tonight on Long Island. Laura, thanks.

Next up, the panel is back to discuss your kids return to the classroom this fall. Is it a politics issue or a health issue?

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TRUMP: Germany, Norway, so many countries right now, they are open, the schools are open. And they are doing just fine.

We have to get our schools open and stop this political nonsense. And it's only political nonsense. It's politics. They don't want to open because they think that it will help them on November 3rd. I think that it's going to hurt them on November 3rd. Open your schools.

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ROBERTS: And we are back with our panel, Bill Bennett, who is the former Education Secretary and Reagan Administration and host of "The Bill Bennett Show" podcast, Susan Page, Washington bureau chief at "USA Today," and Matthew Continetti, founding editor of the "Washington Free Beacon." Let's go to the former education secretary. Bill Bennett, is this a political issue as the president suggests, or is it a health issue?

BILL BENNETT, FORMER EDUCATION SECRETARY: It may be a political issue, but this, unlike the Supreme Court decisions today, is not a hard one. Some of those administrators that were on before the break and teacher unions officials saying this is so hard to do. Think about what parents had to deal with this spring and what they may have to deal with again this fall. You can figure this out.

We were told in the spring to listen to the doctors, listen to the medical experts. The American Academy of Pediatrics has said you must get these kids back to school. Why? For their physical health, their mental health, their social health, and their academic health. The president cited a couple of countries, 24 countries have reopen schools, most of them in Europe, without any increase of any significance in the caseload.

A lot of these schools have a lot of people in the administration who can figure out where there are some questions, where there are some logistical issues. Parents, we don't have as many people in the home to administer this. Two, usually, at most.

ROBERTS: Yes. Let me ask one of those parents. Matthew Continetti, you have got a couple school-age kids. What kind of decision to you make? What do you want to see happen as we get back to school here in the next month or so?

MATTHEW CONTINETTI, EDITOR IN CHIEF, "WASHINGTON FREE BEACON": Well, John, after several months in lockdown, I'm afraid I've been radicalized on this issue. I want the schools to open. I want them to open next week if possible. I understand that there are over 10,000 different school districts in this country. Each has its own concerns. And if that means more money should be spent by the federal government, by all means, this limited government conservative is ready to spend big. Just open up those schools so I can have some quiet in my house.

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ROBERTS: Susan Page, I know that your kids are out of school, so it's not an immediate concern for you, but when you look at the pros and the cons here, you have got some parents who are wigged about the idea of a child going to school and coming home with coronavirus, even though we heard yesterday from the vice president that children don't suffer infection to the same degree as adults. But then you've got other parents who are saying, like Matthew, I would pay good money to get the kids out of the house. So how do you reconcile those two competing interests?

SUSAN PAGE, WASHINGTON BUREAU CHIEF, "USA TODAY": Everybody agrees it's important to open the schools back up for a lot of reasons having to do with socialization and education and keeping parents like Matthew Continetti sane. That said, you have to -- obviously you have to do it in a safe way. And the countries that have successfully opened their schools back up have gotten control of the coronavirus first.

So here's a question. If Republican senators are afraid to go to a political convention because of COVID-19, why should parents feel confident about sending their kids back to school? That's a question that needs to be answered before schools open back up.

ROBERTS: Bill Bennett, what about answering the question because, as we said, the kids don't suffer infection at the same degree as adults, but there are a lot of teachers, some of whom have may have preexisting conditions, who are worried about the petri dish of schools.

BENNETT: The kids don't suffer. The kids also don't transmit it. Another study of daycare centers has just been completed. Daycare centers, usually germ factories, germ green houses, very little increase in COVID, very little showing up of COVID. It just doesn't work with the kids. So let's remember that this is a problem that we can solve and address, and there are so many costs to keeping kids out of school, not just poor Matthew there, but tons of other parents who are trying to do a lot of different things. Let the schools meet their burden.

ROBERTS: Matthew, quick answer, if I could, do you see this as a political issue or a health issue?

CONTINETTI: I think it's both. And if I could sum it up and a couple of sentences, it would be shut down the bars and open up the school.

ROBERTS: Matthew Continetti, Bill Bennett, Susan Page, always good to see you, thanks so much.

When we come back, we've got some good news for you.

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ROBERTS: And finally tonight --

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UNIDENTIFIED MALE: Take that, get you some food later today, get some gas.

UNIDENTIFIED MALE: Yes, I'm going to put this towards my --

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ROBERTS: Sergeant Dustin Schultz is a police officer in Moore, Oklahoma. He's also a U.S. Army veteran. So when he saw a fellow veteran sleeping in his car, Schultz bought the man breakfast, and then reached into his own pocket to give the man some money for gas and future meals. The man shook hands with the officers before they parted ways.

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