This is a rush transcript from "Sunday Morning Futures," January 6, 2019. This copy may not be in its final form and may be updated.

PRESIDENT DONALD TRUMP: (IN PROGRESS) -- fantastic, the best numbers we've had in many years. It shocked Wall Street analysts. It didn't shock me; I know what's going on. But the job numbers were beyond anybody's expectations, really hundreds of thousands more than your top picks (ph). So that was a great thing.

One of the elements of job numbers is, if you remember the past administration said you'd need a wand to bring back manufacturing jobs, well, manufacturing jobs are coming back at a very high level. We had a tremendous manufacturing jobs report and we're very happy to see that. We've worked very hard. We have many companies coming back into the United States, many car companies going to Michigan, going to Pennsylvania, going to Ohio, and other places but they're coming back into the United States. In most cases, they'd left and now they're coming back in. So we're very happy about that.

I'm going to Camp David. We'll be discussing many topics: North Korea, the China trade deal which is coming along very well, both of those subjects coming along very, very well. We'll obviously be discussing the wall which is desperately needed, even if you read some of the papers that don't report accurately -- of which there are many. But a couple in particular, they say that the surge (ph) to come into our country has never been stronger. And it's very unfair to people that want to come in legally, but the surge has never been stronger.

And we have to build a wall or we have to build a barrier. The barrier or the wall could be of steel instead of concrete if that helps people, it may be better. But I'm willing to do that so our great steel companies, which are now back in business -- they were very, very -- they were doing very poorly when I took office and now they're doing very well.

A lot of steel workers working had never had a chance of getting a job in the steel industry again, our steel industry was dying and now it's very vibrant. I intend to call the head of United States Steel and a couple of other of our great steel companies to have them come up with a plate (ph) or a design of a beautiful steel product which we now make here, and we'll use that as our barrier. So we're trying to do everything possible to get money to our incredible people, but many of those incredible people agree with me and they say make sure you win this battle. This is a very important battle to win from the standpoint of safety, number one; defining our country and who we are; also (ph) from the standpoint of dollars.

This wall will pay for itself many times during the course of a year. They money we're talking about is very small compared to the return. You'll receive a return many times during the course of the year. That's the kind of numbers we're talking about.

But most importantly it's about safety, it's about security for our country, it's about stopping human traffickers, it's about stopping drugs, so we have to have it. Got to have it, we have no choice. It's not a question. Now (ph), you think I like doing this? I don't like doing this but we have no choice, we have to have it.

UNIDENTIFIED FEMALE: Mr. President, can you relate to the (inaudible) you can't make your wall (ph)?

TRUMP: I can relate. And I'm sure that the people that are on the receiving end will make adjustment, they always do. And they'll make adjustment. People understand exactly what's going on. But many of those people that won't be receiving a paycheck, many of those people agree 100 percent with what I'm doing. And I will tell you, I just saw a poll, 75 percent -- it was on Fox. But I just saw the poll, 75 percent that immigration is so important. And it is; it's a very big issue.

UNIDENTIFIED FEMALE: Are you confident (ph) .


UNIDENTIFIED FEMALE: Mr. President, (inaudible).


TRUMP: I can't hear you.

UNIDENTIFIED FEMALE: . If you declare a national emergency, what is the point of having a shutdown?

TRUMP: I may declare a national emergency dependent on what's going to happen over the next few days. We have a meeting, Vice President Pence and a group will be going to a certain location that -- you know where that is -- and they'll be having another meeting. I don't expect they'll have anything happen at that meeting, but I think we'll have -- nor does the vice president -- but I think we're going to have some very serious talks come Monday, Tuesday, Wednesday.

We have to have border security. If we don't have border security, we're going to be crime ridden and it's going to get worse and worse. It was so sad watching the funeral of the slain police officer yesterday, Officer Singh. That was a very sad thing.

But this is going on in many places over the course of -- if you go back to the year 2000, we have thousands of people that have been killed by illegal immigration, by people coming into the country illegally, and killing our citizens.

We can't have it. We can't have it.


QUESTION: Mr. President, will the workers get a paycheck on January 11?

TRUMP: We will see what happens. We will see whether or not it's settled.



TRUMP: I will say this. I have tremendous support within the Republican Party.

If you look at Congress, you saw -- with all of the numbers, you saw just a very small group of people voting. And it wasn't really against. It was a vote to open. It wasn't against, because I think everybody agrees -- frankly, the Democrats agree that you need border security. They agree that you need a barrier.

I put out a quote this morning of Barack Obama. I put out a quote this morning of Hillary Clinton in 2015 -- that was a few years ago -- strongly saying that you need a border to keep illegals out.

And that's what you have to have. But it's not just illegals. It's criminals. It's drugs. It's the new phenomenon that's been age-old, been going on for thousands of years, but it's never been worse than now because of the Internet, human trafficking, where they brand women with tape over their mouth, come through our border, and sell them.

And they go both ways, in both directions. But they don't go through a port of entry. That, they would be caught. But they go up. Where there's no wall, they make a right. They go to Mexico.

Look, we better get smart. Human trafficking is a big business. It's a big deal. Dealing in children is a big deal. Children are probably the most harmed by not having the wall or its equivalent.

But if you look at the human trafficking, they come in, they nab women, they grab them, they put tape over their mouth, they tie their hands, and they take them to another country and they go right over that border.

If we had a powerful wall or its equivalent, they wouldn't be able to do it, because they would have to go through ports of entry.


TRUMP: Look, I can say this. Everybody is playing games, but I can say this. I think that the Democrats want to make a deal. I really do. I feel that.

QUESTION: What is the deal? (OFF-MIKE)

TRUMP: We will call it something different. I don't think they have to. That's for this year.


TRUMP: We will call it -- excuse me.

We will call it something different. A lot of work has been done on the wall. There's been tremendous renovations.

And if you look in San Diego, there's been a new wall built, which doesn't get reported. I don't know why. You don't want to report it. But take a look at San Diego and other areas. We have had new wall built.

But we can do much more if they give us the money to do it, but a lot of work has already been done. You know, when they say build a wall, I don't say that anymore. I say finish the wall, because we have done a lot of work. If you know, the $1.6 billion and $1.6 billion for two years, it had language in that really allows you to build a certain amount of wall, but mostly renovate existing walls.

We have renovated a lot of walls, and they have done a very good job.


TRUMP: So we will see what happens with DACA. DACA is right now before the United States Supreme Court. If the court does what most legal great scholars think they do, they won't give President Obama or President Trump the power to do what President Obama did.

And if that happens, it will be a great thing for our country. Do you know why? Because we will work out a deal very fast with the Democrats on DACA. We will work out a deal very quickly with Democrats on DACA.

QUESTION: Are you waiting for that to happen?

TRUMP: We're waiting for the Supreme Court decision.

QUESTION: Will you keep the shutdown going on until the Supreme Court decides?

TRUMP: We will see how long the shutdown goes on. Look, this shutdown could end tomorrow, and it could also go on for a long time. It's dependent -- it's really dependent on the Democrats.

QUESTION: What are the chances it ends tomorrow?

TRUMP: It's really depending on the Democrats.


TRUMP: Well, we're going to see how we do here.

And everybody knows. All you have to do is read today's Washington Post. And you see where big surges of people are coming in and trying to get through the border. Some of that, a lot of that is my fault. You know why? Because I have created such a great economy that people are pouring up to try and get jobs.

So you can say it's my fault. And I want people to come in, but they have to come in legally. They have to come in legally. They can't come in the way they're coming in, because criminals are coming in, human traffickers are coming in, drug dealers are coming in. We can't have it.


QUESTION: The longer the shutdown goes, this will be an economic drag.

TRUMP: Our economy is doing so well. Nobody understands how well our economy is doing. Our economy is doing so well.

And don't forget, I'm paying interest. I didn't have funny money to play with. President Obama had zero interest. I have interest to pay. And now a lot of people that weren't getting interest on their money for many years, you understand, they are now actually getting interest on their money.

But he was playing with funny money because there was no interest. We're playing with paying -- paying interest like, in all fairness, you're supposed to be doing.

QUESTION: (OFF-MIKE) the China talks on trade this week in Beijing.

TRUMP: The China talks are going very well. I spoke to President Xi recently.

I really believe they want to make a deal. The tariffs have absolutely hurt China very badly. But our country is taking in a lot of money through tariffs, a lot of money, a lot of tariffs, steel-dumping tariffs and others.

But I think China wants to get it resolved. Their economy is not doing well. They're down close to 38 percent. That's a lot. And I think that gives them a great incentive to negotiate. But we're doing very well with China. My relationship with President Xi is as good as any relationship that a president here has had with a president or leader in China.

And I think good things are going to happen. Now, I say this. North Korea, we're doing very well. And, again, no rockets. There's no rockets. There's no anything. We're doing very well. I have indirectly spoken to Chairman Kim.

And when I came here, this country was headed to war with North Korea, and now we have a very good dialogue, dialogue going, very good. We have -- with North Korea, we have a very good dialogue. I'm not going to go any further than that. I'm just going to say it's very special.

And anybody else but me, you would be in war right now. And I can tell you, the previous administration would have been in war right now if that was extended. You would right now be in a nice big fat war in Asia with North Korea if I wasn't elected president.

QUESTION: Do you have a date in mind for you next summit? In Europe?

TRUMP: We're negotiating a location. It will be announced probably not -- in the not-too-distant future. They have made it very clear. In fact, they have actually said to the media that they would like to meet.

And they do want to meet and we want to meet. And we will see what happens. But the sanctions remain in full force and effect. And they will until we have some very positive proof.

But I will tell you, we are doing very well with North Korea. And we're also doing very well with China on trade. The other one is Iran. Iran is doing very poorly, once I took the horrible Iran nuclear deal off. It has had a massive effect on Iran. They're pulling back troops all over the place. They're not doing well.

They want to talk.


TRUMP: In Syria, we have had a tremendous impact.

When I went there -- don't forget, when they went to Syria five years ago, they were supposed to be there for three to four months. And they never came out.

We are pulling back in Syria. We're going to be removing our troops. I never said we're doing it that quickly, but we're decimating ISIS. When I was elected president two years ago, ISIS was all over Syria and all over Iraq. We have wiped out ISIS in Iraq.

We have wiped out ISIS. And we're doing it for two reasons. We're really doing it because we don't want them coming here, just so we understand. But we're doing it for a number of reasons.

Now, we're helping other countries when we do that too. You have to remember Iran hates ISIS more than we do, if that's possible. Russia hates ISIS more than we do. Turkey hates ISIS maybe not as much as we do.

But these are countries that hate ISIS. And they can do a little of the fighting in their neighborhood also, because we're fighting them in their neighborhood.

But with that being said, we're pulling out of Syria, but we're doing it, and we won't be finally pulled out until ISIS is gone.

QUESTION: How long is the pullout period?

TRUMP: It's going quickly.

QUESTION: How many months?

QUESTION: (OFF-MIKE) done in agreement with Turkey to protect the Kurds, as John Bolton said today (OFF-MIKE)

TRUMP: John Bolton is right now over there, as you know.

And I have two great stars in -- John Bolton is doing a great job and Mike Pompeo is doing a great job. They're very strong. And they work hard.

And, as you know, they're doing things that are very, very good. We're coming up with some very good results.


TRUMP: Well, I'm in no hurry. I have acting.

And my actings are doing really great. David is doing great at Interior. Mick Mulvaney is doing great as chief of staff. But I said I like acting. It gives me more flexibility. Do you understand that? I like acting.

So we have a few that are acting. We have a great, great Cabinet. If you look at my Cabinet, we have a fantastic Cabinet, really good.


TRUMP: I think we're doing a great job with the shutdown negotiation. We have no choice.

Look, there will be...


TRUMP: There will be -- excuse me. I'm totally involved, but I'm involved with principals, because, ultimately, it's going to be solved by the principals.

Schumer and Nancy Pelosi and myself can solve this in 20 minutes if they want to. If they don't want to, it's going to go on for a long time. I will tell you this. If we don't find a solution, it's going to go on for a long time. There's not going to be any bend right here.

And the people that voted for Donald Trump, which are a lot of people, one of the great elections ever, those people are for it so much. And let me tell you, people that didn't vote for Donald Trump are for it also.

They want border security. They want to stop human trafficking. They want to stop drugs. They want to stop crime.


QUESTION: Thank you, Mr. President.

Have you accepted Speaker Pelosi's invitation (OFF-MIKE)

TRUMP: I will be making the State of the Union on January 29. And I look forward to it. I look forward to it. And I look forward to speaking really before the world. We have a lot of great things to say.

Our country is doing better than any country in the world right now. Our military is almost completely rebuilt. When I took it over, it was a mess. It was depleted. Our trade deals are going great. We have a deal with Mexico, with Canada, with South Korea. We're negotiating with Europe, the European Union.

We're negotiating with China, which is by far the biggest of them all, we're doing very, very well.

QUESTION: The American detained in Russia, Paul Whelan. (OFF-MIKE)

TRUMP: We're looking into that. We're looking into that.


TRUMP: Look, they have to do what they have to do. But many of those workers agree with me.

And I think, frankly, there's been very little of that so far, as you know, very, very little.


TRUMP: OK, anymore?

Thank you, everybody.


TRUMP: I don't like doing this. I have no fun doing this. I was elected to protect our country. That's what I'm doing.

And presidents before me have all voted for this -- or many of them. And many of the senators that I'm negotiating with right now have voted for this. But let me tell you something. They didn't have the guts to do it, just like they didn't have the guts to move the embassy to Jerusalem and Israel.

They didn't have the guts to do things that they should have done, just like they didn't take out ISIS, just like so many other things. I was voted 306 to 223 or something like that, by a lot. I was voted to be your president partially because of security. It's a big part of what I talked about, not only the wall, the military and lots of other things.

I think -- I think I have done a great job. I think I have done a great job. I'm getting credit from the real news for doing a great job.

But border security is a big part of that. We will also have to stop drugs. Listen, we will also have to stop drugs. If we don't stop drugs soon -- there's never been a time over the last 10 years -- and it's gotten worse and worse over the last five -- there has never been a time when our country was so infested with so many different drugs coming from so many different locations.

And I believe that President Xi in China, when he made the pledge to me to criminalize fentanyl, I believe that's going a long way to helping us.

I'm going to Camp David. Thank you.

QUESTION: Thank you, Mr. President.

MARIA BARTIROMO, HOST: President Trump making comments moments ago on the White House lawn.

Good morning, everyone. Thanks for joining us. Welcome to "Sunday Morning Futures."

I'm Maria Bartiromo.

And the president just spoke with reporters moments ago, before heading off to Camp David for a retreat with senior Cabinet members.

The government shutdown is now entering a 16th day.

Joining me right now in an exclusive interview is Republican Senator from Alabama Richard Shelby. He's the chairman of the Senate Appropriations Committee and serves on the Senate Banking Committee.

Senator, it's good to see you this morning. Thanks so much for joining us.

SEN. RICHARD SHELBY, R-ALA.: Good morning to you, Maria.

BARTIROMO: Your reaction to the president?

You have had meetings this weekend. Your mandate is to fund this government. Tell us where we are in terms of being at an impasse on this border wall funding.

SHELBY: Well, we're at loggerheads still. We're at an impasse.

And I was hoping it wouldn't be this way, but it is. We could settle it. We should. But this has become a political circus. A lot of people on both sides are calling names and so forth.

But what we need to do, Maria, is get together. We need to secure our border. I think the president is absolutely right in this. We're close, sometimes, but we're far away. And I think we have got to quit the political posturing and get down to rational thinking, rational discussions.

I know, this afternoon, some -- some of my staff will be at the White House trying to negotiate to where we are and what can be done. This could be settled in 24 hours or less, if we could get together.


SHELBY: And I think we have got to get together, because, ultimately, Maria, this will all end in some negotiated settlement.

The American people want us to do -- work together. They want us to do right. They want us to secure the border. They want us to fund the government. We can do all of this. We should have already done it.

BARTIROMO: Well, you had an idea of $2.5 billion vs. the $5.6 billion that the president wants. What are you hearing on the other side? I know that you're having discrepancies over what to call it, a wall, or concrete vs. steel.

These really all seem like politics.

SHELBY: Oh, it is all politics. It's posturing. The political equation has changed a little bit. We have a Republican president, a Republican Senate and a Democratic House.

But we all should put security of this nation first, the borders. We all know, Democrats and Republicans should know that we should secure our borders. And it's a question. You mention the name wall -- wall, barrier, border security. We should get away from that. Fence and whatever it's called, we should work together.

We should put -- say, what is it going to take to secure our borders? And let's go there and quit polarizing and screaming at each other.

BARTIROMO: So, what is it going to take? The Democrats say that they are for border security. We have got new data from the Department of Homeland Security.

Most recent estimates say that the DHS estimated that there are 12.1 million unauthorized immigrants in the United States in January 2014, compared to 11.6 million in '10.

What do they say is needed, then, to get control of our borders, if not a wall?

SHELBY: Well, I -- well, the wall or fence or barrier, whatever it is, border security, is long in coming. It's not there yet. We have made progress.

But I believe the president is right. I believe the president has an obligation to secure the borders, secure the country. And I think he's got a lot of power there. I want to help him do that. But I also want to get the government back in order. And we need to do this.

We have funded 75 percent of our appropriations. We could do this quickly, or it could last a while. I think, if we don't get together, it's going to be protracted.

BARTIROMO: So, what exactly do they want on the other side in order to get the government open again?

SHELBY: Excellent question. When you negotiate with somebody, Maria -- and you have done it -- you have got to figure out what they want, what we want, and how do we settle and compromise and get something for both sides, because, ultimately, that's what's going to have to happen.

You're going to have to give the Democrats something. But they -- they're against everything at the moment. But they want something. We have got to figure out what it really is. And are they willing to negotiate politically in a fair way for both sides?

BARTIROMO: Are you saying you don't know what they want? You have got to figure out what they want?

SHELBY: Well, I don't think any of us know -- know exactly what they want, because, right now, they are just saying they're against the wall and they're against the numbers that we put out to -- the president needs and claim they want.

So, I haven't seen the specific things that they want.

BARTIROMO: Well, what is the highest number that they're willing to allocate toward the wall or toward border security?

SHELBY: Well, that's a good question. We don't know that until we get into serious, serious negotiation.

Of course, they say they're going to stay on 1.3. If they stay on 1.3 and the president stays where he is, there's not going to be any compromise. There's not going to be any opening the government. People are estranged right now. We have got to get together.

BARTIROMO: Yes, I find it really odd that we're entering a 16th day of a government shutdown, and you don't know what they want, nor do you know the number that they're willing to go to.

Senator, we have got a lot to get in to. Please stay with us. We're going to take a short break.

You sit on the Banking Committee. I want to get your thoughts on the volatility from markets as well, affecting 401(k)s, as well as the economy today, after those really boom numbers on jobs.

Follow me on Twitter @MariaBartiromo, @SundayFutures.

We will be right back with Senator Shelby, as we look ahead on "Sunday Morning Futures."


BARTIROMO: Welcome back.

We're back with Alabama Senator Richard Shelby.

And, Senator, you have been really in the thick of all of these talks to potentially get this government back open. Is there another way the president sees to fund the wall just to get the government open in the process?

SHELBY: I believe the president has got a lot more power to defend this country as the commander in chief than people realize.

And he mentioned earlier today, I heard some -- that he could declare a national emergency. Well, he could. And that gives him more power.

But what I would like to see, us do it through the Congress, through the appropriation process, do it right, because most of the Democrats have voted to secure the wall, a lot of money. Their leadership has.

I think, right now, there's a lot of political posturing going on, a lot of political rhetoric. And we have got to get together and put America first, put the wall, the fence or the barriers or border security ahead of a lot of things of political opportunism.

BARTIROMO: What would calling this a national emergency look like? Do you expect that to take place this upcoming week, where the president calls a national emergency?

SHELBY: I don't know.

But the president has alluded to it already. And I think he's got some inherent powers to do some things. I would hope we could do it ourselves through the regular process. But we haven't yet. And that's the legislative process through the Congress, but we will see what happens.

BARTIROMO: Those furloughs...

SHELBY: This can't go on forever. It could go on a long time, but it won't be forever.

BARTIROMO: Right. And we're coming up to...

SHELBY: And I think the sooner we get together and quit blaming each other and put the American people -- every -- it's going to be 800,000 people out of this shutdown unemployed.

That's going to have a profound effect on this country.

BARTIROMO: And those -- Senator -- Senator, those 800,000 people are now facing a second pay period where they're not going to get their checks.

This upcoming week, January 11, January 13, is the second pay period. Is that going to be pressure for the president to try to give the Democrats something that they want, including getting some money for his border wall, I mean, the pressure of those 800,000 people without a check for the second pay period?

SHELBY: Maria, I hope it's pressure on both sides. It's pressure on the Democrats and the pressure on us to come together, to do our job, do it rationally to secure our borders and to fund the government.

BARTIROMO: Let me ask you about the impact to the economy on this.

Obviously, you have been a great student of the economy with the regulatory environment that you have put in place for the financial services sector.

Yes, we had a good day on Friday after very good jobs numbers, but you have seen the markets. You have seen the upset and the volatility these last two months. How worried are you that this government shutdown impacts the economy? And what can you tell us about the slowdown that so many people are predicting right now?

SHELBY: I think it will have some economic -- an economic impact. How much, we don't know yet.

You know, the economy is the best I have ever seen, Maria, in my lifetime. Look at the jobs report even last week. I think the economy could regenerate itself on another level now. Although the stock market has dropped and gone down, a lot of people, a lot of these high-tech stocks, we could get a second wind and take off again.

We have got a lot going for us in this country, if we put all these things together, quit bickering, quit fighting over little things, and do what's right for the American people.

BARTIROMO: Well, you also have the competition of China.

I'm on my way after the program to San Francisco to interview the chairman and CEO of J.P. Morgan. Jamie Dimon is going to weigh in on FOX Business this week, when I do my interview tomorrow. And he's going to talk to us about what things look like right now, but a lot of people worrying about the numbers in China, how the economy there is slowing down, and their efforts to become number one in so many of the industries that the U.S. is planning on.

SHELBY: Well, we realize trade is a double-edged sword. We need to trade. We need to trade with China.

Right now, we have some estrangement there, as you well know. I'm hoping it'll work out. It should be fair trade. It should be fair to all of us.

And I think that's the message the president has put out. And I think he will bring the Chinese to the negotiating table. It can't be a one-way street just for China. But what happens with our relationship with China does affect the world trade. It will affect their economy. It already has. It will affect ours in the long run.

But we have got to be -- realize that everything should be on a level playing field, as much as we can get there.


So, Senator, let me switch gears and ask you about some of the other pieces of business on your desk in the upcoming Congress. And that is, of course, the confirmation of the president's nominated attorney general, William Barr.

What's the timeline on that? And what are the chances of confirmation of William Barr in the first quarter?

SHELBY: Well, I would think he would -- he has been the attorney general. He served with distinction under President Bush 41.

He's well-respected, I think, on both sides of the political spectrum. He's solid. I don't know any negatives about him. I think he would be confirmed. But I have to go through the Judiciary Committee, the process.

And we need a good attorney general. We need to get him in place as soon as we can.

BARTIROMO: All right, Senator, before you go, wrap us up here on what catalysts we need to focus on in terms of understanding whether or not this border battle gets a compromise.

SHELBY: I hope it works out. I hope that we can secure the border and get the government back working. The 25 percent is -- is --

BARTIROMO: When is your next meeting with your colleagues? When is your next meeting with your colleagues? What is the catalyst that's going to get things moving?

SHELBY: Well I'll be back tomorrow in Washington and this afternoon they're meeting at the White House. I know my top aid, Shannon Heinz of the Appropriations Committee will be at the White House this afternoon. I think they're looking -- they're probably sparring, if you want to say that, to see what they can talk about, how they can get there. They're not there yet but they could get there fast if people would come together.

BARTIROMO: All about who blinks first in the face of this very important and serious issue of border security for the United States. Pretty incredible. Senator, it's good to see you. We'll be watching the developments. Thanks so much.

SHELBY: Thank you, Maria.

BARTIROMO: Senator Richard Shelby there. President Trump making another pitch for a border wall with Mexico as shutdown talks continue. Plus how much power House Speaker Nancy Pelosi will have in her new role (ph) after 15 fellow Democrats voted against her speakership. California Democratic Congressman Ro Khanna is with me next live in an exclusive interview as we look ahead on “Sunday Morning Futures.” Stay with us. Back in a moment.


BARTIROMO: Welcome back. President Trump doubling down on his calls for a border wall with Mexico before heading off to Camp David to meet with senior advisors. Let me bring in California Democratic Congressman Ro Khanna right now. He's the vice chairman of the Congressional Progressive Caucus, he sits on both the House Budget and Armed Services Committees. And congressman, it's good to have you on the program this morning.

REP. RO KHANNA, D-CALIF.: Thanks, Maria, for having me on.

BARTIROMO: We just heard from Senator Shelby and he could not identify what the Democrats want. Why will you not vote for a wall?

KHANNA: Well, two things. First of all, we should have the functioning of government taking place and not hold it hostage to any president's personal cause. Look, I represent Silicon Valley. We can't have companies IPO-ing, which is hurting the markets or making things more volatile. So let's fund government. And then separately, let's have the debate on immigration. But Senator Shelby said, what do the Democrats want?

I say we want very simply three things. First, the president should level with the American people that he was wrong, Mexico isn't going to pay for border security. He wants Congress to pay for border security. Secondly, he should have a path for the Dreamers to have some legal way of staying in the United States. And third, he should recognize that this is the 21st century. Most people who are here in an undocumented way have overstayed their visas. Where we need the investment is on better technology, better sensors, better enforcement, not on a wall which is a 15th century idea.

BARTIROMO: Now, what's wrong with the wall? I mean, you're not going to leave your doors unlocked and let anybody come in. You have a wall and concrete stopping from strangers coming in. Can you really say a wall doesn't work?

KHANNA: Well, I think we have more technology, right, I mean in my house I don't have a wall around it but I have an alarm system. So I think that if you're going to look at what the marginal benefit of investments are, you would get more from funding some of these technology solutions. And secondly, a lot of the people who are here in an undocumented way, they came here legally but they've overstayed their visas and a wall does nothing to fix that.

So the Democrats are for securing our borders. No one believes that we shouldn't secure our borders. We want to do so in a thoughtful way. And by the way, the immigration deal in 2013 that was reached had funding for border security. But first, let's get government back up and running. Let's pay the people at TSA, let's pay border agents. Let's allow Silicon Valley companies to IPO to help the markets.

BARTIROMO: Well, Congressman, honestly, I mean a lot of people believe this is all about politics. The fact that the Democrats do not want this president to have one more thing to be able to say "I had a promise during the campaign, I kept that promise." Because you mentioned DACA. There was a deal from the president on DACA a year and a half ago and the Dems said no.

KHANNA: He - he actually didn't take the deal. The Senate had a bipartisan bill that the president rejected and the president wanted a far more conservative version. But the reality is the president's campaign promise was that Mexico was going to pay for it. And he still hasn't explained why Mexico isn't paying for it. And so I think that that is important for him to level. But put the politics aside.

Let's talk about funding for border security and the best way to do it. And a lot of the experts will tell you that the president's idea of a wall isn't actually what's going to secure our borders. It's not what's going to help against drug trafficking and sex trafficking and all the problems that he's identified.

BARTIROMO: And I want to be clear because you have not been afraid to stand up to leadership in your party when you feel it doesn't make sense and when you disagree. You've said that you are opposing the Democrat rules leadership package. I want to know why you're doing that, explain the rules package and what you don't like about it. And also, this broader divide within the Democratic party. I mean, you are the vice chairman of the Congressional Progressive Caucus.

We know that you've got lots of members who are pulling the overall party all the way to the left and that goes against what many moderate Democrats want to do in terms of leadership. So how are you going to correct that?

KHANNA: Well, let me answer both questions. First on PAYGO which I opposed, what that requires is that the government has to have an offset - Congress has to have an offset for any single piece of legislation. I opposed it because it's bad economics. I mean, in a recession, you need the government to spend and in an economy that's doing well, you don't need the government to spend as much. That's just basic economics, anyone who has studied economics 101 knows that .

BARTIROMO: That's exactly right.

KHANNA: You know, so I opposed that on that principle. Your broader question is a good one. And look, I have not been partisan. For example, even though I disagreed with the way the president has pulled out of Syria, I actually support his decision to start pulling out of Syria and Afghanistan. And there were many congressional progressives who worked with people on the right, on a policy of more foreign policy restraint.

So I don't think that the lines in Congress are always just left/right. I think the question is, who's going to have more restraint in foreign policy and how are we going to have an economic policy that helps working class and middle class Americans? And you may actually see some strange or interesting coalitions to get those policies through.

BARTIROMO: Well, one of your colleagues, Alexandra Ocasio-Cortez wants to raise taxes on the top earners and we know that the top 10 percent of all earners already pay 70 percent of the tax on this country, sir.

KHANNA: Well, the way I would .

BARTIROMO: Are you for - are you for what AOC is saying?

KHANNA: . I -- I -- I'm not for her exact plan. I -- my view is we can get the revenue by getting us out of bad wars by repealing a large part of the Bush and Trump tax cuts, and by taxing companies who are making a lot of their money overseas. I mean, right now we are taxing companies overseas.

So there are disagreements within the Democratic caucus on the exact way to get something done but I think, at the end of the day, the basic party will be unified on a few goals. We want an infrastructure bill. We want to lower the cost of prescription drugs. We should try to get out of these bad wars. We need to bring jobs to places left behind. And frankly, I -- some of these ideas aren't even partisan. Look, I was at the White House two weeks ago. The president signed a bill working with the White House Innovation Office to modernize our federal websites.

We have to find common ground in this country. We can disagree but what are we doing to make sure the country's moving forward, so we lead the 21st century and not China?

BARTIROMO: Well, so -- so many of your colleagues, and you included, signed this farm bill, $867 billion. And it really is questionable that you can't find $5 billion to secure the borders. This is an ongoing conversation and we'll continue to have it.

Congressman, I hope you'll join us again soon. Thanks very much for joining us.

KHANNA: I appreciate it, appreciate you having me on.

BARTIROMO: You mentioned Syria. We're going to get into it next because National Security Advisor John Bolton is an Israel this morning holding talks with a key American ally in the wake of President Trump's plan to pull U.S. troops out of Syria.

What comes next in the Middle East? Ranking member of the House Armed Services Committee Texas Republican Congressman Mac Thornberry my guest next, in an exclusive as we look ahead on Sunday Morning Futures back in a moment.


BARTIROMO: Welcome back.

Secretary Pompeo is headed to the Middle East this Tuesday. Right now, National Security Advisor John Bolton is in Israel. The secretary of State is headed to the region later this week. Tuesday he kicks off his Mid East trip. Bolton says a U.S. withdrawal from Syria is pending and assurances from Turkey. All this after President Trump said that he plans to pull U.S. troops out of Syria.

Bringing in right now Texas Republican Congressman Mac Thornberry, he is the Ranking Member of the House Armed Services Committee. Sir, it's good to have you on the program this morning. Thanks very much for being here.

REP. MAC THORNBERRY, R-TX: Thank you, Maria.

BARTIROMO: What is the message to the Middle East after the president said he's pulling troops out of Syria?

THORNBERRY: Well, there was a lot of concern in the Middle East. Partly because we have not completely finished eliminating ISIS, partly because the Kurds, who have been doing a lot of the fighting with us and for us have been our allies and if we pull the rug on them, everybody else is wondering if we're going to pull the rug on others as well. And thirdly, it -- it pretty much turns Syria over to Iran. And that's more dangerous for Israel, it's more dangerous for all the gulf states. So -- so the initial announcement by the president caused a lot of concern.

Now, Ambassador Bolton this morning has walked back some of that initial concern but there's still a lot of worry that if you let up the pressure on terrorist groups, whether they're in Syria, Afghanistan or Yemen, they can spring back to life very quickly and threaten us here at home.

BARTIROMO: So is -- is the administration, do you think, pushing back on this idea of total withdrawal, given the fact that you do have all of these concerns that it will take a very short amount of time for ISIS to regroup once the Americans walk away?

THORNBERRY: Yes. No, you're exactly right. Ambassador Bolton this morning said that it's going to be more conditions-based, that we're just going to withdraw from part of the country, we'll leave some folks in a key location that's a supply line from Iran into Syria . So I think they're still working through the details, trying to reassure folks. But I would be concerned about putting too much stock into promises from Turkey that they're not going to attack the Kurds.

We know what Erdogan's attitude towards them really is.

BARTIROMO: Well that's exactly right. So, you know, you've got John Bolton out there saying well, we're going to withdraw once this it's -- you know, this is conditional once we know for sure that Turkey is going to be there and we're trusting Turkey now about this? I mean, what is it going to take for you to have trust that in fact it is OK to walk away?

THORNBERRY: I don't know that I have that trust. And -- and partly it's because of Turkey and the Kurds, but in part, it's because we saw what happened in 2011. Al Qaeda in Iraq was defeated, Obama pulled out of Iraq and they sprung back to life and occupied an enormous territory, became the most serious terrorist threat that the world has faced. So the number one lesson to me of the last 17 years is you've got to keep the pressure on. And if you relax that pressure, terrorists will spring back and threaten us here at home. We can't -- we can't do that.

BARTIROMO: So was it a mistake to say we're pulling out of Syria then?

THORNBERY: Yes. Yes. I think it was a mistake. It worried our allies, it encouraged our enemies and I think the administration now is trying to backtrack from a blanket withdrawal and trying to mitigate some of the adverse consequences.

BARTIROMO: Who are our allies in terms of making sure that the -- the -- the situation is safe, even as there is a real troop withdrawal plan in place? The mission may be the same, but the approach is clearly different.

THORNBERRY: Yes, it is. And different allies in the region have their own interests. I think the key lesson from what's happened in Syria is that Americans don't have to do the fighting, but we have to be there advising, sometimes having air support. That's what has been so successful. And -- and make no mistake, the last two years we have been very successful in beating back ISIS and I think the president deserves a lot of credit for that success because he took the shackles off of our military and they've done a lot of good work.

But that job will not be finished forever. We have to at least have some presence to keep the pressure on.

BARTIROMO: Let me ask you -- and switch gears on this border wall fight, because the Democrats say that they want border security but they will not vote for a wall and they will not provide the money that the president is asking. Where does this head next , sir? What is your take on all of this?

THORNBERRY: Well, if it were a normal controversy and one side wanted zero and one side wanted five, you would meet somewhere in the middle. For years, way before President Obama was elected, the border patrol experts said you need a combination of things. You need physical barriers, you need people and you need technology. All three of them. So I was struck this week when Speaker Pelosi said this is a moral issue. We already have some sort of barrier across 30 percent of the border. To go to 40 percent is a moral issue? It just tells me this is politics. And the disappointing thing is the country - the best interests of the country do not seem to be the first consideration. It's all about political position.

BARTIROMO: Well, how does she answer that? I mean, we already have a portion of the wall in place, as you say. So 30 percent was immoral, the rest of it - 30 percent of it was moral, the rest of it is immoral?

THORNBERRY: Yeah, there is no answer, or the other alternative is we ought to get rid of all border - all physical security on the border?


THORNBERRY: Well, that doesn't make sense either. This is political gamesmanship and it needs to stop because the - the country is less safe when you have open borders.

BARTIROMO: Congressman, thank you very much. It is good to see you this morning, Congressman Mac Thornberry. The White House is bracing for a flurry of document requests. House Democrats oversight control is on tap. We're going to talk with Alan Dershowitz next up.


BARTIROMO: Welcome back. President Trump just confirming a terrorist wanted for the deadly 2000 attack on the USS Cole has been killed in a drone strike. The president tweeted this just a moment ago. "Our great military has delivered justice for the heroes lost and wounded in the cowardly attack on the USS Cole. We have just killed the leader of that attack, Jamal al-Badawi. Our work against al Qaeda continues. We will never stop in our fight against Radical Islamic Terrorism."

We will continue to follow this developing story and we will bring you the very latest updates as we get them. That tweet just from the president a moment ago. Meanwhile, House Democrats embracing their newfound ability to serve as a check on the Trump administration. Lawmakers saying that they will not wait for Robert Mueller's final report to investigate the president, while some of them are already reintroducing articles of impeachment.

Joining me right now is Alan Dershowitz, he is Harvard Law Professor Emeritus, the author of the new book "The Case Against the Democratic House Impeaching Trump." Good to see you, Alan, thanks very much for joining us.


BARTIROMO: Well, what is the case for not impeaching Donald Trump when you know that many of them have already come up with articles of impeachment and they are ready to go? We just heard from one progressive, dramatic comments this weekend. Your thoughts?

DERSHOWITZ: Well, first, I don't consider her a progressive. I consider her a radical socialist. That's not progressive in my book. And I remain a Democrat in order to try to marginalize those elements of the party that want to destroy it. The Democrats should be a centrist party, that's the only way they win elections. Impeachment would be the kiss of death for the Democrats. It would be a terrible political move, particularly because it would be unconstitutional.

Seventy percent of Democratic voters now want to see the president impeached. Several people who won in Congress won on the platform of impeaching the president. But you have to start with the constitution.


DERSHOWITZ: The constitution says you have to charge the president with specific crimes. And there's no evidence that any of those crimes have been committed.

BARTIROMO: I'm wondering if much of this changes once he has this new attorney general in place who may seek the truth in terms of what went down during the 2016 election, at the top of the FBI and DOJ, frankly, Alan.

DERSHOWITZ: Well, the new attorney general - the new attorney general is a great man. I've worked with him over the past. I'm a Liberal Democrat. But when he was the attorney general of the United States for a Republican administration, he did a great job. He's an honorable person. He's not somebody who will simply do the bidding of the incumbent president. He will seek the truth no matter where it leads.


DERSHOWITZ: I'm hoping that he's confirmed before the Mueller Report becomes public because I want to see the Mueller report become public along with a rebuttal by the Trump legal team so that the American public .

BARTIROMO: Maybe that's - maybe that's what he will - maybe that - maybe that's .

DERSHOWITZ: . can see both sides of the issue at the same time.

BARTIROMO: Alan, it's good to see you, thank --


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