Rep. Pat Fallon proposes cyberattack legislation amid recent breaches
Texas Republican calls for stiff penalties for hackers on 'Your World'
This is a rush transcript of "Your World with Neil Cavuto," June 2, 2021. This copy may not be in its final form and may be updated.
NEIL CAVUTO, FOX NEWS ANCHOR: All right, coming to a grocery store near you, higher beef prices. We're already getting the latest from Greeley, Colorado, as JBS, one of the world's biggest meat producers, is indicating it's trying to get everything back online, but about a fifth of its meat capacity has essentially been wiped out.
The big question is whether you're going to see that show up in your grocery, well, meat section. What if I told you they already are seeing it?
Welcome, everybody. I'm Neil Cavuto, and this is "Your World."
The hack attack that has a lot of folks wondering, what the heck is going on? Now a big meat producer not too long after a big pipeline maker, and at the same day we're learning that a big boat concern is also affected. So people who wanted to go to and from places like Nantucket and Martha's Vineyard for a while today were having trouble, and all because the system was hacked.
What to make of a situation that is going from bad to worse and already coming up as a possible subject, maybe the main subject, when President Biden meets with Vladimir Putin later this month.
All right, let's get right to it with Alicia Acuna on JBS, the company that experienced this hack attack, and how it's trying to come back right now.
She's in Greeley, Colorado -- to you.
ALICIA ACUNA, FOX NEWS CORRESPONDENT: Hi, Neil. Hi, Neil.
Yes, we saw workers today show up for their shifts here at JBS' largest beef facility in the country. They are up and running again after the White House says it was likely a criminal Russian entity to blame here. JBS'
facilities in eight states, plus Canada and those in Australia, all impacted.
The company's CEO said, in part: "Our systems are coming back online and we are not sparing any resources to fight this threat. We have cybersecurity plans in place to address these types of issues, and we are successfully executing those plans."
The U.S. Cybersecurity and Infrastructure Security Agency says it became aware of the intrusion on Monday and is working with the FBI, in a statement -- quote -- "As this and other recent incidents demonstrate, the threat of ransomware continues to be severe. Ransomware can affect any organization in any sector of the economy."
White House Press Secretary Jen Psaki was asked about this today.
(BEGIN VIDEO CLIP)
QUESTION: And it was a criminal organization likely based in Russia. And was the ransom paid?
JEN PSAKI, WHITE HOUSE PRESS SECRETARY: I'm not in a place to confirm the specifics of the ransom request or the origin. Obviously, our team is continuing to evaluate, and I would send you to the company for any specific questions about the ransom request.
(END VIDEO CLIP)
ACUNA: Now, Neil, we have been asking, but we have not heard back from JBS, on the question of whether or not they paid the ransom.
The USDA says there is no indication of a meat shortage. But food distributors, already concerned about a tight supply due to COVID, labor shortages and the weather, have noted, Neil, as you mentioned, prices are going up -- Neil.
CAVUTO: Alicia, thank you very, very much, Alicia Acuna on all of them.
Here's what we know ahead of my next guest, that Russia might have been behind it through an entity called REvil.
If that rings a bell, it's been involved. This is a Russian entity -- entity, I should say. We just don't know the details to which it might have had Russian support. The indications are at this point that it's anyone's guess.
But the Russians are getting very, very good at this, as the number of hack attacks on the United States have been steadily increasing and compromising our grid.
And that's a big worry with my next guest, Texas Congressman Pat Fallon, who joins us right now.
Congressman, so much we don't know. Can you share what at least you know, how widespread this was, how much Vladimir Putin knew, how much Russia could have been involved? What do you know?
REP. PAT FALLON (R-TX): Well, Neil, thanks for having me on.
And this is just so critically important. And, unfortunately, when we pay off these cyber-terrorists, we're going to get more of them. And we -- according to the FBI, with the Colonial Pipeline attack, it was based in Russia.
And I think -- personally, I think Putin is looking the other way and he's acting like -- much like Queen Elizabeth did 500 years ago with the privateers raiding Spanish armada. They were raiding the Spanish gold ships. This is something -- he's harboring them.
And we need to have consequences, not only for the hackers, but for the Russian government as well, if indeed they are in cahoots with them.
CAVUTO: In fact, that is part of your strategy now to beef up penalties or proposed legislation for cyberattacks and those who inflict them on us.
Can you explain what that is about?
FALLON: Yes, Neil, I was shocked.
When the Colonial Pipeline attack hit, I asked my staff, what are the penalties if -- it's very hard to catch these people, because it is a cyberattack, and they're largely international and Russia. If we got our hands on them, what penalties are they going to be facing?
And, believe it or not, first of all, critical infrastructure wasn't even really defined well in statute. So, we needed to do that. But, also, penalties of a year in prison for a Russian criminal, in federal U.S.
prison, is no deterrent whatsoever. So we wanted to beef up -- we want to define exactly what the critical infrastructure meant, so we could actually try these folks and get a conviction, and then up the penalties, 30 years to life, instead of just a year in prison, and then also have sanctions for governments that allow this to happen and facilitate it.
CAVUTO: I'm just wondering too. The president, when asked about this after his COVID update, about Russia's involvement, what we know, what we don't know, when he was asked about whether Putin is testing him, he said outright no.
If Vladimir Putin is behind this or aware of this, do you think he is testing President Biden?
FALLON: Neil, I absolutely think, yes, he is.
And that's what we -- this leadership, something this critical, when we're talking about national security, our economic security, our health security, this is leadership that should come from the White House.
We're a single member of Congress. And I filed H.R.3388 specifically because we saw the threat that this presented two weeks ago, and nothing has been done. This should be a bipartisan effort to pass this legislation forthwith.
CAVUTO: All right, Congressman, keep us posted on the legislation's progress, Pat Fallon, the Republican Texas congressman.
Thank you, sir.
All right. Now I want to go to Scott Shellady, follows commodities action, market action economy. They call him The Cow Guy at AG Optimus. He always is in conservative attire, so as not to draw attention to himself.
(LAUGHTER)
CAVUTO: But, Scott, it's always good seeing you, my friend.
What do you make it is? Because whatever we get to learn about JBS and how widespread this was, and we have heard them talk about one-fifth of the meat production that was compromised, by that, I would just say just disappearing, the meat capacity disappearing.
And, of course, it reappears online afterwards, but it does raise questions and prices, right?
SCOTT SHELLADY, AG OPTIMUS: Well, yes.
I mean, as I stare at the screens in front of me today, Neil, we have got the cattle prices up around 2.5 percent today on the futures exchange. So, yes, there's going to be that natural knee-jerk reaction. We will get through this. But we're going to see a little bit of hoarding.
We're going to see a lot of the same things we saw with the Colonial Pipeline issue. But that's the issue, right? I said back then, and I will say it again today, this will happen again. And I can't imagine what that meeting is going to be like with Biden and Putin.
He will say, hey, I'm going to have to ask you to stop -- stop doing this.
And if you don't, I'm going to have to ask you again. I mean, I don't know where we're going to get our teeth all of a sudden.
But we have got an issue where this could be a lot bigger. Think about this, Neil. I'm worried about cattle and lean hogs today, yes. And we're going to see -- and you have had a great report all day over on the other channel with Jeff Flock doing inflation and what's happening to restaurants.
Things are going through the roof. And this absolutely does not help it.
But wait until this bleeds over until -- into our financial industry. Maybe they shut down the settlement system, or maybe they shut down air traffic control. I mean, why are we debating what is infrastructure?
Babysitting and day care? No, it's this. These are the things that we need to make sure. Now, he's two or three weeks later going to get a task force together to study this thing. We need to have all hands on deck, because this is -- they're attacking us. We're the largest, most successful economy in the world.
And this is happening out of Russia. So whether or not he's going to get his team in line or make them stop, he absolutely -- Putin can make them stop. So, my worry is this.
CAVUTO: It's affecting -- to your point, Scott, and, to your point, it's affecting a lot more than just us. China, of course, depends on beef, largely from us, and largely in this particular case from JBS, which also ships a lot of that beef to Australia, from which it gets even more meat.
And I'm just wondering. The fact that these issues are coming up again and again, whether they're all linked to Russia or not, they're getting to be more commonplace. News today, we learned that, not too long ago, the MTA, Mass Transit Authority, was hacked.
We're getting word today, of course, the steam line authority -- the Steamship Authority of Massachusetts, responsible for a lot of those boats that go back and forth between Martha's Vineyard, Nantucket, Hyannis, a host of them, also hit by that. It affected sailings that were going out today, people had to only pay in cash, so the credit system wasn't compromised there.
But, again, this little more than a couple of weeks after the Colonial Pipeline Nightmare. What the heck is going on?
SHELLADY: And to your point, Neil, you're exactly right. This is the issue, is that we're restarting a $28 trillion, $29 trillion economy. No one's ever seen that happen before.
So, we're kind of like in this stage of like a Saint Bernard, puppy dog, right? And we don't know what's around the corner. And there's going to be some unintended consequences of shutting this economy down. But, right now, it's very vulnerable, very vulnerable.
You have seen what's happened to prices and so-called inflation or supply chain issues. But, right now that Saint Bernard puppy dog does not need to get hit by a car. And this is what that threat could be like, because, right now, this economy is just finding its feet. And to have these attacks, first of all, on energy, now on food -- I mean, fuel and food, and maybe -- what's next? Finance?
I mean, think about the apps here, because that's what I'm worried about.
They go for ATM system, you can't take cash out. Now, I'm not trying to get everybody scared here. But you have to realize how immense this issue could possibly be if we don't put a stop to it now.
CAVUTO: All right, no, you're right to raise a sense of urgency.
Scott Shellady, thank you very, very much.
So, this is becoming an economic issue, certainly in terms of higher prices and all the rest. Shows the vulnerability of our grid and what have you, but, more importantly, it does show that it could become a military issue.
And doesn't Lieutenant General Jerry Boykin know it, the former undersecretary of defense, former Delta Force commander, bestselling author?
General, always good to have you.
If this did, in fact, emanate from Russia, and you are Joe Biden, and you're meeting with Vladimir Putin in a couple of weeks, what you do?
(LAUGHTER)
LT. GEN. JERRY BOYKIN (RET.), U.S. ARMY: I think I'd canceled the meeting, unless I was ready to go in and state to him that we know that the SVR was responsible for this attack and several others, and we're not going to tolerate it anymore.
Look, Neil, we have sent mixed messages to Putin. First of all, these criminal elements work for the intel services of Russia. I agree with your previous two guests. This was sanctioned by the Kremlin. And make no mistake about that. Be honest with the people.
But I tell you, unless Joe Biden is ready to go in there and really get tough with Putin, all we're going to see out of this is an encouragement to Putin, because I think, as your previous guest said, this is another test of his leadership.
And, right now, it does not appear that he's passing this test.
CAVUTO: You know, General, the Russian hierarchy was talking about tests to come and surprises to come ahead of the summit. Do you think they were talking about this?
BOYKIN: Well, I think it's entirely possible.
Look, I think the Russians, as well as the Chinese, are looking at us now, saying, we have got you right where we want you. And that is because of the internal turmoil that we have had. It's because of the economic situation that we're in. They're wise enough to know that we can't keep printing money without a collapse at some point.
So I think they see us in a vulnerable position. And I think that, as a result of that, the Russians certainly are going through a series of these things, each one be -- getting maybe progressively worse, because stop and think about it. You're now into our food chain.
And we saw what a devastating thing the gas was. In fact, I spent most of my time in Washington, and I couldn't find gasoline in Washington without sending in an over-an-hour line to get fuel. So, this is a bad situation.
But Putin -- make no mistake. Putin is behind this.
CAVUTO: General, if that were indeed the case, and you talk about nefarious means, he ended up hurting China, with whom he has been cozying up of late, because China depends on a lot of beef and a lot of beef from this very, very source, including the United States in general.
So, he might have stung himself. What do you think?
BOYKIN: Well, I think that's -- I think that's possible.
But, look, this whole relationship between Russia and China, I think, is a very fragile relationship. And I think that it's all directed towards the common enemy, and that's the United States. But I don't think that they are particularly good friends.
I agree. This could have impacted China. It may impact their economy, as a matter of fact, because of the rising beef prices. But I don't think it's a strong relationship by any means.
CAVUTO: General, we will see what unfolds here, General Jerry Boykin, the former undersecretary of defense, former Delta Force commander, has served and constantly served his country very notably, but he never brags about it.
If it were me, I'd be always saying, look what I did, look what I did. All right.
(LAUGHTER)
CAVUTO: But he's not me, and I'm not him. We're miles apart.
But what an incredible guy.
We have a lot more coming up, including this crackdown on oil leases that had been handed out in just the waning days of the Trump administration, put a stop to them in this administration.
The fallout from the Alaska governor, who doesn't like what he sees, but he's responding first here, and only here.
(COMMERCIAL BREAK)
CAVUTO: All right now, this was expected, but it fell like an anvil on a lot of folks' heads, including the governor of Alaska, who will be joining us shortly, the president suspending Arctic drilling leases that had been granted in Alaska and extended by President Donald Trump in his final days in office.
First to Peter Doocy at the White House with where this is going.
Hey, Peter.
PETER DOOCY, FOX NEWS WHITE HOUSE CORRESPONDENT: Neil, good afternoon.
And officials within the Biden administration are acting like a government that believes climate change is one of the four biggest crises facing the country right now, along with COVID and the economy and racial justice issues, because the Interior Department has suspended leases drilling oil -
- drilling for oil in the Arctic Refuge.
Listen to this from them. The department is notifying lessees that it is suspending oil and gas leases in the Arctic Refuge, pending the review to determine whether the leases should be reaffirmed, voided or subject to additional mitigation members -- measures.
Well, that's got Lisa Murkowski, who was just here a few days ago praising the president for letting cruise ships resume for the short tourist season in Alaska, very upset.
She tells us: "The Biden administration's actions are not unexpected, but are outrageous nonetheless. This action serves no purpose, other than to obstruct Alaska's economy and put our energy security at great risk."
And, now, this has exposed a big GOP-on-GOP fight within the Republican Party of Alaska, as Murkowski's Senate Republican primary challenger says she's partly to blame here.
(BEGIN VIDEO CLIP)
KELLY TSHIBAKA (R), ALASKA SENATORIAL CANDIDATE: She was the deciding vote that let Deb Haaland through the Energy Committee.
And it's under Secretary Haaland and the Department of Interior that's leading this suspension of our leases that have been lawfully executed.
That vote costs us billions here in Alaska.
(END VIDEO CLIP)
DOOCY: There's a lot of oil in Alaska. But this is an administration that wants to slowly wean the country off fossil fuels. And this is one big step towards that -- Neil.
CAVUTO: Peter, thank you very much.
Peter Doocy at the White House.
Now to Mike Dunleavy, the governor of the beautiful state of Alaska. He was enraged by this, wanted to come on the show to talk about it now. He has taken the time to do so.
Governor, very good to have you, obviously not in this case under happy circumstances.
What do you make of the president's move?
GOV. MIKE DUNLEAVY (R-AK): No surprise. No surprise.
But it doesn't -- it's illogical. It's irrational. It doesn't make any sense.
The whole idea that you're going to stop climate change by shutting down leases in the Arctic in Alaska, it's just going to push this opportunity overseas. And that's what this -- I'm being serious, Neil. That's what this administration seems to be all about, is canceling opportunity, canceling oil leases in the Arctic, canceling offshore oil leases
It's going to drive the cost up. I mean, oil is, what, $70 a barrel now.
And it's going to push these opportunities overseas, and it's going to push them into places that don't have the environmental protections that the United States has and Alaska has.
So, no matter how we look at it, when we actually sit down and we have these discussions, no matter how we look at it. It's a lose-lose-lose across the board, not just for Alaska, not just for this country, for some of these environmentally sensitive areas across the globe that don't have the protections. It makes zero sense.
CAVUTO: This could hardly have come as a surprise to you, though, right, Governor?
I mean, the president seemed to make clear as a candidate that he wanted to undo what the president was doing, President Trump at the time, especially since, I believe, in Donald Trump's case, he was doing this in the waning days, officially the last day, of his administration.
What do you make of that?
DUNLEAVY: Well, it's not a surprise, but, nonetheless, it still doesn't make any sense. It doesn't -- it doesn't strengthen America, it doesn't help Alaska, and it doesn't stop climate change, because, again, these -- the Russians, the Chinese, the Saudis, the Iranians, they are laughing all the way to the bank.
They're taking advantage of these opportunities that we're handing them.
We're actually handing them opportunities. And so, in the short long run -- in the long run, Neil, this is going to be detrimental to this country.
It's certainly could be detrimental to Alaska, and it's probably going to cost -- it's going to cost more at the pump here in the near future.
So, across the board, it doesn't make any sense. Not unexpected, but it makes no sense.
CAVUTO: You know, all of this comes at a time where you're trying to woo people back to your beautiful state. And, of course, travel and the comeback from the pandemic has been slow and hard to come by, including a staggered return to the cruise industry there.
What are things looking like now, Governor?
DUNLEAVY: It's tough, right, because Alaska has constantly battle the federal government since the beginning of our statehood. And it's now really picking up steam under this administration.
So, we're getting a cruise ship -- a cruise ship season back, but it's going to be very short. It's going to happen in July and August. Our cruise ship season usually ends in September because of weather and climate, obviously.
CAVUTO: Yes.
DUNLEAVY: So, we're going to get hurt there. We're getting hurt on the resource development front.
And we have done everything we're supposed to do. We have had some of the best response to the virus and the vaccinations than just about any other place on the planet. And we protect our environment better than just about any other place on the planet.
So, all we're asking for, Neil, across the board, whether it's cruise ships, whether it's oil and gas, whether it's timber, whether it's mining, give Alaska an opportunity. We will show the world that we can do it better than anyone else, and we can protect the environment and create opportunities for our people.
But, right now, it feels like it's a full-court press by this administration against our state.
CAVUTO: Governor, you're among the latest governors to star in ads touting his state.
We have seen others do so in South Dakota, Texas, Florida, New York, and that it carries cache when it's the big cheese, the governor, making the pitch.
How did you feel about making the ads and getting people who might be thinking twice about travel at all, especially to Alaska, not knowing how the cruise industry is going to go, to lead that effort?
DUNLEAVY: Well, we think Alaska -- and this is the interesting -- the interesting thing about Alaska.
We believe it is a beautiful place. We believe it is a place like no other.
It's -- and we get folks coming from all over the world, the Lower 48. We love to have people coming to Alaska. We haven't run into anyone that's ever said they had a bad trip to Alaska, because it's spectacular.
But we're in a competitive world right now. We're in a competitive world with other states, with people wanting to get out. And so we certainly have to come out and highlight what Alaska has to offer.
And, again, we're going to try and take advantage of every opportunity we can to assist our economy, but, at the same time, share it with the rest of the country and possibly the rest of the world, if we can get other countries to get vaccinated and get folks over here.
So, we're going to keep working at improving our economy. But, again, all we're asking for, Neil, is that the federal government not intervene to hurt us. If they could just kind of stay out of the way, we will develop this economy, including our resources, to the highest standards.
CAVUTO: Governor Dunleavy, thank you very, very much.
Mike Dunleavy, the Alaska governor.
DUNLEAVY: Thank you.
CAVUTO: That state is bigger than most countries, right? It's just a stunning state.
All right, when we come back: the pitch right now to make sure everyone gets vaccinated. But what if you make it a demand, an order? Then what?
(COMMERCIAL BREAK)
CAVUTO: Can your boss force you to get vaccinated to battle COVID?
A Houston hospital is putting that into effect right now. And some are protesting. Now they're suing -- after this.
(COMMERCIAL BREAK)
CAVUTO: All right, a Texas hospital that is demanding all of its workers, you must be vaccinated for the good of our patients, for the good of each other.
Some are protesting that move and now they're suing over it. Do they have a case here?
Mark Eiglarsh joins us, attorney extraordinaire.
What do you think, Mark? Do they have a case? Can their bosses tell them, you must be vaccinated?
MARK EIGLARSH, CRIMINAL DEFENSE ATTORNEY: Well, they have a great case in court. Unfortunately, for them, where their argument might resonate is a court of public opinion and, unfortunately, not in a court of law.
Businesses, like this hospital, local bars, even some public entities, have every right to require their employees to either wear masks or get vaccinated for the benefit of public health, their patrons, where, in this case, we're talking about patients.
CAVUTO: Yes, that was kind of their point. We tried to get them to come on.
But we did get a statement from the Houston Methodist Hospital involved in this, Mark, saying: "It's unfortunate that the few remaining employees who refuse to get vaccinated and put our patients first are responding in this way. It is legal for health care institutions to mandate vaccines, as we have done with the flu since 2009. We proudly stand by our employees and our mission to protect our patients."
So where's all this going?
EIGLARSH: Yes.
So, here's the problem. You can't say they're forcing these people to get vaccinated. You can say that in the court of public opinion, but, in a court of law, wait, what you're saying is, they're physically holding down employees and stabbing them with a needle? That would be unlawful.
What they're saying is, you have got two options. You can work for us. And if you work for us, you know, we require things like gloves, masks. Now we require vaccinations. If you want to do that, then come join us. If not, you have another option. See you later. There's other jobs out there.
CAVUTO: Is there a difference, Mark, between a hospital making that request, because, as you said, it's a little bit different, given that environment with patients, et cetera. vs. an average company, not in the health field, not having anything to do with that?
EIGLARSH: There's a difference in the court of public opinion, but not under the law.
I did some research for you, Neil. And there's a 1905 Supreme Court case, Jacobson vs. Massachusetts, which gives public entities -- forget about private for a second, who have greater rights -- but even public entities can require vaccinations for the benefit of public health.
So, certainly, a private organization, whether it be a hospital, a bar, any type of private company can require this under the law. It's their right.
They're not violating any statute. They're not violating any law related to disabilities, because there's no protected class involved.
CAVUTO: Is there any difference between a restaurant or bar,an eating establishment requiring proof of vaccination before you enter the premises?
EIGLARSH: Nope. That's their right.
If they want -- listen, no shirt, no shoes, no service. They can set what standards they have before they serve you. And if you don't like it, listen, if they said only those people of certain color, or only men or only women, now you're talking about some type of discrimination of a protected class.
But if they want to set up bizarre rules, or ones that we think might be less bizarre, like requiring vaccinations, then that is their absolute right.
CAVUTO: I challenged the no shirt thing with a bar one time, Mark, but it wasn't the rule, as much as people screaming inside, with the reaction, that pushed me out the door.
(LAUGHTER)
EIGLARSH: That's true.
CAVUTO: Mark, thank you very much.
EIGLARSH: I didn't need that image, Neil. Thank you. Yes, thank you.
CAVUTO: No, you did not.
(LAUGHTER)
CAVUTO: No, I thought I'd go there, though.
So, for any of you having an early dinner, enjoy.
(LAUGHTER)
CAVUTO: All right, we have a couple of developments as Mark and I were speaking here.
This is from Israel, that Prime Minister Netanyahu's opponent say they have now reached a coalition deal that they say will pave the ouster of Netanyahu as the longest-serving prime minister in Israeli history. No comment from Mr. Netanyahu.
Separately, on what his options might be after this, NASA is announcing plans two launch two missions to Venus -- it's the first in decades -- to study the planet's atmosphere and geologic history.
Whether there's any link between these two stories and options afterwards, it's a free-for-all, but Venus now the target of NASA, after Mars and so much more, the mystery planet, the clouded planet front and center right now.
We will have more after this.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
GLORIA CHAVEZ, EL PASO BORDER PATROL SECTOR CHIEF: Human beings are a commodity to these ruthless smugglers.
We know their tactics. I mean, I have been doing this over 25 years now.
And we know exactly the tactics of these people. And, for them, it's just a profit.
I worry when I see images like this and the tactics that smugglers are using really hurting these children. This is a very vulnerable population.
Everyone is in agreement that these children, we need to protect them.
(END VIDEO CLIP)
CAVUTO: All right, and now images coming from the border that show something even more haunting and scary, a little boy crying in the middle of nowhere, wondering where anyone was.
Aishah Hasnie happening at the border right now with the fallout from that
-- Aishah.
AISHAH HASNIE, FOX NEWS CORRESPONDENT: Hi, Neil.
Yes, this was just a heartbreaking video to watch all day. A bipartisan congressional delegation just wrapped up their tour of the Southern border here. And before I get into what they were talking about, they did address this heart-wrenching video, so let's watch the video first. That is a 5- year-old boy reportedly abandoned by two smugglers near El Paso, Texas, just screaming in the middle of the night.
Neil, we don't know which country he came from, but the woman who reportedly left him there told a reporter that his parents were already in the U.S.
Now, Texas Representative Tony Gonzales, he was here today. And he says, unfortunately, this is not unique. Thousands of children are in the same situation every single month at the border. White House Press Secretary Jen Psaki also reacted to this video today. Listen.
(BEGIN VIDEO CLIP)
PSAKI: Well, I have seen the video. It is heartbreaking and the reason we continue to be very clear irregularly migrating to the United States puts ourselves and others at risk.
That's why we have relaunched certain efforts to build a more fair and orderly immigration system, including programs like the Central American minors program that allows kids who are eligible to apply from within country.
(END VIDEO CLIP)
HASNIE: Now Representatives Gonzales and Cuellar and Senator Cornyn and Sinema are here on the ground, pushing their Border Solutions Act and warning the Biden administration not to lift Title 42, that pandemic- related restriction on adult migrants.
In the meantime, Texas Governor Greg Abbott has also issued a disaster declaration here, while President Biden is undoing the migrant protection protocols. Those are the Trump era policies which forced asylum seekers to remain in Mexico while their cases were being heard.
And, Neil, we're just now getting horrific details about Border Patrol agents and Mexican authorities near Yuma, Arizona. They were able to rescue a woman, a Mexican woman who was in the process of being raped, Neil. She'd been shot, and she was bleeding from her -- from a head injury, apparently.
They were able to stop it while it was happening and arrest the suspect.
But that is the kind of thing that people are warning about on the ground, these Border Patrol agents. That is what's happening as people try to make their way to U.S. soil.
CAVUTO: Just incredible.
Aishah, thank you very much for all of that.
We will continue following that, where it's a state of emergency certainly at the border. The governor has already declared that.
But, of course, if it needs confirmation from Washington and immediate funds to help deal with that, that is not forthcoming.
Stay with us.
(COMMERCIAL BREAK)
CAVUTO: Benjamin Netanyahu's days as the longest-serving prime minister of Israel might be numbered right now, reports that his opposition has really gathered around a coalition deal to get him out of there and have a power- sharing arrangement among rival parties afterwards.
Let's go to Mike Tobin in Jerusalem with more.
Mike, what can you tell us?
MIKE TOBIN, FOX NEWS CORRESPONDENT: Well, Neil, one of those opposition leaders, Yair Lapid of Yesh Atid Party, reported to Israel's president that he has the majority he needs, the desire to form a new government, therefore removing from office Benjamin Netanyahu.
The final pieces to put their majority together fell apart -- fell together, I should say, in the last hour or so. And that final piece was an Israeli Arab party, Ra'am, or the United Arab List.
The leader of that party, Mansour Abbas, signed the agreement with Yair Lapid to form that unity government. And this will be the first time in history that an Arab party has served in the government with an Israeli prime minister.
And that speaks to the strange bedfellows that make up this anti-Netanyahu coalition. The presumptive prime minister, Naftali Bennett, is an ultra- nationalist from the Yamina Party. That name translates literally to the right. He's got a history of being very unsympathetic to all things Arab and Palestinian issues.
The coalition is made up of right-wing centrists, leftists and now Arabs.
About the only thing that they have in common is they want Netanyahu out.
The way the deals were struck, Bennett will start as prime minister, then swap with Yair Lapid.
Now that the agreement has been presented to the outgoing Israeli president, Reuven Rivlin, the new government gets presented to the Knesset on Monday for a Wednesday vote. So there still could be some vulnerability to the coalition, particularly with reports that one member of the Yamina Party has some gripes and might vote against, therefore jeopardizing the majority that have right now.
But, for the moment, the opposition to Benjamin Netanyahu has the majority they need to form a new government, therefore ousting, if they can pull it all together, Israel's longest-serving prime minister -- Neil.
CAVUTO: Mike Tobin in Jerusalem, thank you very, very much.
Back here in the United States, getting used to higher food prices, higher meat prices and now after this hack attack on one of the world's largest meat distributors, concerns they go still higher.
Imagine being a restaurant dealing with all this.
Our Jeff Flock on that.
JEFF FLOCK, FOX BUSINESS NETWORK CORRESPONDENT: Just what they didn't need, sir.
Back in the kitchen at a restaurant in suburban Chicago -- the full story when we come back.
Stand by.
(COMMERCIAL BREAK)
CAVUTO: All right, so you think you have a beef with these higher food prices, particularly meat prices that are now ripping through the nation.
Imagine being a restaurant just trying to deal with everything post- pandemic.
Back to Jeff Flock in Long Grove, Illinois with more.
Jeff, what's going on there?
FLOCK: I'll tell you, Neil, just what these folks didn't need coming back from a pandemic, fought through the pandemic, survived the pandemic, and now food prices.
Michael, it's just crazy.
MIKE OKUN, OWNER, CHATTER BOX: Yes. No, it is. It is. Everything's going up.
FLOCK: And Neil is pointing out it's mainly meat prices.
OKUN: Yes.
FLOCK: What do you got here?
OKUN: We got ribs right here.
FLOCK: How much have these prices increased in the last, say, month?
OKUN: A couple months, $2 a pound.
FLOCK: Two dollars a pound?
OKUN: Two dollars a pound.
FLOCK: Have we got chicken in here, by the way? Oh, no?
OKUN: Yes.
FLOCK: Is it? Yes. What do you got?
OKUN: Yes, here's some chicken for enchiladas. That's gone up $40 a case.
FLOCK: In how long?
OKUN: In one month?
FLOCK: Incredible.
You went, fought through this pandemic, Chatter Box restaurant, Long Grove, Illinois,very popular. You brought in R.V.s, correct?
OKUN: Yes, sir. Yes, sir.
FLOCK: And so that people could continue to dine.
OKUN: Continue to dine, continue to be safe, continue to keep my employees employed.
And, yes, we made it through. And now we're fighting with this.
FLOCK: And, Neil, it's not just the cost of beef, but crazy things that you wouldn't even think about.
Maraschino cherries. This is -- we're in the bar now.
How much have these risen?
OKUN: This has gone up for four of these, $15.
FLOCK: And the to-go plastic containers, a case of those, how much?
OKUN: In a case, it's gone up $30.
FLOCK: Any accounting for this?
OKUN: No, we haven't raised the prices yet. But, I mean, it's just a matter of time.
We have to do something to survive here. It's almost like the pandemic is hitting us all over again.
FLOCK: Yes.
Much less staff, staff in the kitchen, costs you more too.
OKUN: Yes. It's -- oh, absolutely. Absolutely.
FLOCK: Well, there we go, Neil. Maybe it's so just as well you didn't go into the food service industry as a career.
Tough times these days, sir.
CAVUTO: Just incredible, Jeff. As if they don't have enough headaches, and now this.
I don't know how they adjust, but they do. They're a worthy lot.
Jeff Flock, thank you very, very much, my friend, for putting that in perspective.
For a lot of people, it's just a big adjustment. A lot of them look at this and look at beef prices, poultry, what's been happening on the FISHER: and even a lot of vegetable prices, so you have nowhere healthy and cheap to hide, to put it mildly here. So what do you do?
Well, let's go to Kat Timpf, FOX NATION's "Sincerely Kat," what her views are, Susan Li, FOX Business Network star.
So, ladies, let me get first maybe to you on this, Susan.
I don't think this is just a passing phenomena, the hacking case not withstanding, meat prices and a lot of food-related prices had been moving up, and rather sharply.
SUSAN LI, FOX NEWS CORRESPONDENT: Yes.
CAVUTO: This just accentuated that, right?
LI: That's right.
So, Americans are looking at the fastest jump in prices in 12 years. And you had Jeff Flock talking about meat prices. You had bacon -- chicken up 8, 7 percent in April, and bacon, he didn't even mention that, up 16 percent in the month.
But I think it's kind of like the pandemic weight. You already gained 15 anyways. What's another five pounds? I guess, in this case, what's another
25 cents?
CAVUTO: Yes, I guess, right?
(LAUGHTER)
CAVUTO: So, Kat, looking at that, does it change your behavior? Now, you just got married.
KATHERINE TIMPF, FOX NEWS CONTRIBUTOR: Yes.
CAVUTO: So, maybe what you want to do isn't the same as what your husband wants to do or eat or pick or prioritize?
So how do you handle that?
TIMPF: Well, I don't know if it's going to change my behavior very much.
The main reason why I can't just travel around the country eating meats right now is working. I have too much work to do.
(LAUGHTER)
TIMPF: But, honestly, I feel the worst for restaurants because...
CAVUTO: Well, you better get over that, kiddo, because I never let work get in the way of a good meal. But that's another issue.
(CROSSTALK)
(LAUGHTER)
CAVUTO: But go ahead. Finish that thought.
TIMPF: Yes.
Yes, it's because it's not just these high prices. It's -- that is a huge thing for restaurants. I don't want to discount that. It's having to have this pandemic go on, with closures and then reopen and then close again, for the past 15 months, and then, of course, labor shortages as well.
So I think that as long as -- people are going to keep spending.
Especially, a lot of people have extra money in their pockets with stimulus and things like that. But the chain is completely broken. And it's completely messed up. So anyone who does have the free time to go out to a restaurant and eat some meat, I think they should do so. And you can invite me.
CAVUTO: Yes.
You know, it's interesting, too, Susan. And you have reported on this on FOX Business, which, if you don't have, you should demand. But I digress.
(LAUGHTER)
CAVUTO: One of the things that I notice in this is that people are more than willing to pay these higher prices, because they're coming out of the pandemic. It's the one reason why they're paying more for airline tickets, cruise bookings, even concerts, because they haven't done it so long.
They're eager to go out and spend to do it. I just wonder, Susan, how long that lasts.
LI: Well, it depends on how long the savings last.
Americans are all cashed up because they haven't been traveling, they haven't been going out.
CAVUTO: Right.
LI: So, $2 trillion in the bank accounts, right?
But you have the stimulus to start off with this year. But you wonder how long that lasts, and some say -- you know, the transitory word in economics? These price increases are only transitory. So it could only be temporary.
Let's see how that -- I guess it depends on how long the stimulus and the taps are turned on.
CAVUTO: Is there a point, Kat, for you -- I don't mean this to be a personal question -- in which you say, as much as I love this food item or this non-food item, that is my quit line, I will not pay X for this?
What would it be?
TIMPF: Well, before, I would have said no, but my husband has started getting on me about DoorDash orders for $30 soup that I -- just because I really want that soup.
(LAUGHTER)
LI: Yes.
TIMPF: So, I think that he might try to -- which is smart. He's a finance guy. So he knows that I shouldn't be spending $30 to get soup delivered to me.
(LAUGHTER)
CAVUTO: There you go.
TIMPF: But perhaps.
I think that, for some people, especially when maybe they have less money in their pocket, when -- if this stimulus train kind of stops, I think that that could be a factor.
And then just for the restaurants being able to stay open, really, really tough, up against post-pandemic, up against these high prices, and up against labor shortages all across the chain. It's not a good situation.
CAVUTO: Just to update you, Kat, they do have this thing, Campbell's Soup and other soups. They come in cans.
TIMPF: I know, but it's not the one I want.
CAVUTO: They're not $30.
TIMPF: It's not like the soup.
LI: It's not the same.
CAVUTO: Understood. Understood.
TIMPF: He's right. He's right.
I'm not defending myself. I'm wrong.
(LAUGHTER)
CAVUTO: Susan, do you defend that action, paying $30 for soup?
LI: Well, I mean, if we're paying $300 for shoes, why not just pay three bucks for some soup as well -- 30 bucks? I agree with that. It helps the economy.
TIMPF: Yes. I do it for the economy, Cam.
CAVUTO: Oh, OK.
(CROSSTALK)
CAVUTO: Oh, OK. Do it for the economy.
It's all for the economy.
(LAUGHTER)
CAVUTO: That was a very political answer from both of you, savvy, savvy shoppers both.
All right, so, the inflation watch is still on. We will see just how far it goes.
Here's "The Five" right now.
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