Fox News "Sunday Morning Futures" - Transcript: McCarthy talks FISA investigation, House school safety bill

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MARIA BARTIROMO, FOX NEWS CHANNEL HOST: Good Sunday morning. President Trump on the brink of history with potential talks with Kim Jong-un. Some allies pushing back after the White House imposes new tariffs on steel and aluminum imports, and voters in Pennsylvania getting ready to go to the polls Tuesday for a race that could preview the battles ahead in the midterms. Good morning everyone. Thanks for joining us. I'm Maria Bartiromo, welcome to 'Sunday Morning Futures'.

President Trump says potential talks with Kim Jong Un could bring the world's greatest deal, but what are the risks of sitting down with the North Korean leader? I'll speak live with House Majority Leader Kevin McCarthy coming up. We'll also talk with former U.N. Ambassador John Bolton about North Korea. And then the E.U. and others responding to new U.S. tariffs on imported steel and aluminum, what is the fallout? What is the impact on American jobs? White House Trade Advisor Peter Navarro will join me live. And just two days until the special election in Pennsylvania's 18th Congressional District is that tight race a glimpse of what's to come in the November midterms. All that coming up right now as you look ahead on 'Sunday Morning Futures'.

And historic meeting in the making, President Trump last night saying that it could be significant or nothing at all when he sits down with North Korean Leader Kim Jong Un. A time and place is not officially been set yet but the meeting is expected to happen by the end of May this year. Meanwhile, the White House says it wants to seek concrete actions from the North on its nuclear program ahead of any direct talks. Joining me right now is House Majority Leader Kevin McCarthy of California. Congressman, it's great to see you.

REP. KEVIN MCCARTHY, R-CALIF., HOUSE MAJORITY LEADER: Thanks for having me back on.

BARTIROMO: Thank you so much for joining us. We have a lot to get to with you this morning. But let me start off with these talks. A huge gamble with a communist state that is hard to read, what are your thoughts on this meeting between the President and Kim Jong Un?

MCCARTHY: My first thought is the way the president's handled this is correct. A lot of people didn't think that. He played rougher with China and rougher with North Korea and there are risks but there are greater risks not to have them. They're closer than ever before to be able to have that nuclear weapon and that ICBM to be able to hit the United States, so time is of the essence. But I think what has happened, the number of sanctions that we've passed in the House, the pressure that the President has put on, he moved two aircraft carriers off over there, that is having an effect and I think it's right from this perspective of where this president is going. And remember, no sanctions are coming off, no change and the president is saying you have to denuclearize if you want anything to happen.

BARTIROMO: Yes, one year ago he said fire and fury. This country will be met with fire and fury if they make a wrong move and it does feel like that tough talk was effective.

MCCARTHY: And the President is very clear. He's kept all options on the table. He cannot allow from the perspective of Kim Jong Un to have a nuclear weapon that can hit the United States are too profligate and sell that everywhere across the world.

BARTIROMO: So do you want -- you want action before the meeting? I mean they're not going to denuclearize before the meeting.

MCCARTHY: No but they're not going to have any more tests but I think we've got to continue to keep the pressure on and just put the pressure on China as well to make sure this needs to have a change.

BARTIROMO: Let me move on to another subject here at home. We got a big election coming up this Tuesday, the special election in Pennsylvania. Do you view that as a proxy to the midterm elections?

MCCARTHY: I don't view it as a proxy because if you -- if you take that perspective there's already been five special elections and Republicans have won all five of those. Now, this is a little unique situation because in Pennsylvania, what the Democrats did and this is really Barack Obama and others, they've gone and they politically redrew the lines. So whoever turns out and wins in tomorrow's election, they'll no longer have a seat right there. They'll have to run someplace else. And I hope the Supreme Court takes a look at that and puts a stay on this position of redrawing these lines politically. But in this race, the intensity level is a little higher with Democrats. But if you look at everybody in there, the low propensity, especially on a special election, if everybody turned out, we would win by 10 or 12 points, but this is a very tight race going in.

And the number one question should be, do you want another person added to Congress that's going to be another vote for Nancy Pelosi to become Speaker? Because that is what she's doing around the country. That's her desire to be able to be there, to go back. And what did the Democrats propose just last week? To removal the tax cuts that have spurred our economy's growth and raise the taxes on you. So that's -- the real question come tomorrow. So everybody needs to turn out and Rick Saccone, not only is a veteran, he's an expert when it comes to North Korea. He would be a great addition in Congress and he'd help us in a time that we actually need the help the most.

BARTIROMO: The president has been saying, look, we need more Republicans in the House, in the Senate because we need to get these policies passed. Now Nancy Pelosi is walking back the whole crumbs statement saying, oh, we all like when people get bonuses but do you think that hangs over the Dems come November, comments like that?

MCCARTHY: Well, it does because when I go across the country, I was just - - Andy Barr was telling me a story where he went across doing a listening session. There was a guy in Kentucky who says I'm getting $50 more a month, that's more than $500 a year. And on his own he says, you tell Nancy that's not a crumb from where I come from. It's the respect and honor, but the way she treats people and thinks. It's not only does she think they're crumbs, she's going to repeal the tax bill, she's going to raise your taxes and tomorrow people have the ability to say no to that.

BARTIROMO: Going into the November elections, you have the wind at your back. Certainly, the Republicans with the tax legislation passed, the rollback in regulations, but now we have this issue of tariffs. A hundred of your colleagues sent a note to the White House, to the president asking him to rescind this, these tariffs on aluminum and steel. Where do you stand on this? Have you spoken with the president about it? I mean, this is an issue that has divided the party that everybody from corporate CEO's to the Wall Street Journal editorial board talking about this being a bad idea.

MCCARTHY: Well, we talked to the president about a lot of this and what's -- it's not unusual to hear the president say this because he's been saying it for 30 years. He campaigned on this. And from one perspective the president will say I campaigned and I'm trying to keep a promise. But it also shows the president listens. Because look at what the final version came out. He gave exemptions. So Canada, the person that we import the most from, exempted. Mexico, he just said Australia, it could be our allies because the real problem here the president is correct. China produces the most steel and aluminum, 49 percent of steel, 53 percent aluminum.

BARTIROMO: But not direct, right?

MCCARTHY: Not direct but they subsidize it and they're flooding the world market. That is a problem. Now we only take one percent in. So it's really is a message to China by giving the exemption to others. Nobody wins in a trade war. I believe in free and fair trade and I get concerned about this, but I think a lot of this discussion in what's happening right now has a little more to do with NAFTA, but also think the pressure that it's putting on China when it comes to steel and aluminum when you're trying to have a negotiation about North Korea. I think it may wake them up a little bit.

BARTIROMO: Going into the Pennsylvania special election, the president is going to rile up all of these people who are right in steel country, so it was the timing obviously, not a coincidence I guess. But let me ask you about the China story. We're going to speak to Peter Navarro coming up. What do we do about China? Because you've said it, Paul Ryan has said it, you'd like to see something more surgical. Is that what you mean when you say surgical that you want to see something direct against China?

MCCARTHY: Well, if we're going after China, let's not punish our friends. The other point you have to remember too. There's thousands of more jobs that manufacture utilizing the steel and aluminum than those that actually make the steel and aluminum --

BARTIROMO: Exactly, 6.5 million jobs of those --

MCCARTHY: It's five percent of the GDP when you're doing less than one percent. So that's a fear. That's why you do not want to get into trade war either with this, and that's why they also allowed the commerce secretary Wilbur Ross to exempt products as well. So there's a lot of exemptions here and I take that as the president's willingness to listen to us in Congress and listen to business because we've got an economy moving like we have not seen since the 80s and we're beginning the America comeback. And I think this will actually from the point of having the exemptions, help us in some part and make sure we do not get into trade war.

BARTIROMO: So what can you get done before the election? I mean, in the next block we're going to talk about the school safety bill that's moving in Congress as well as these great economic numbers. Is there anything you see getting done before the November elections aside from that? I mean what about -- like for example, Nafta, would you expect a new deal within 20 days before the Mexico elections?

MCCARTHY: I would like to see a NAFTA deal done now. And remember, it's just not America that has to do it, Canada and Mexico as well. But this is what the President is trying to get done and make it happen now opioid reform. We did -- we did the care act in the last Congress but you're going to find the mortality age has dropped twice in the last two years in America on the verge of dropping the third time. This has not happened in quite some time, all regards opioid. Infrastructure, rebuilding our infrastructure --

BARTIROMO: Without Gary Cohn, you can get infrastructure done?

MCCARTHY: Very much so. And then think about the punishment as you know so well of Dodd-Frank. The ability for capital, for small businesses especially those minority-owned businesses, this is our ability to reform that. We passed the bill inside the choice act in Congress. The Senate is proposing as well. This is only going to build on the economy to go further.

BARTIROMO: Now, let's talk more about what you're going to get done in these next six months. Then there's this, the FISA story. Will there be a special Second Counsel appointed to investigate the alleged FISA Court abuse? Congressman McCarthy is back for more on that after the short break. Follow me on Twitter @MariaBartiromo, @SundayFutures. Let us know what you'd like to hear from the Majority Leader and the rest of our guests. Peter Navarro and John Boulton coming up. Stay with us. We're looking ahead this morning on 'Sunday Morning Futures.'

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BARTIROMO: Welcome back. Attorney General Jeff Sessions stressing confidence in the ability of his Inspector General to investigate potential FISA abuses. This despite growing pressure from several top Republicans to appoint a second special counsel to carry out this investigation. We're back now with House Majority Leader Kevin McCarthy and. And I want to be clear here. This is the FBI going to the FISA Court and omitting important information like the Democrats having paid for the dossier. What do you want to see happen here?

MCCARTHY: I want to see a second special counsel.

BARTIROMO: You do?

MCCARTHY: And I want it to be narrow but I want it to be outside the Department of Justice. Now, I have the greatest respect for the Inspector General. They do an amazing job. The problem is they will not have the authority, the subpoena authority to really do the investigation. So when I look at this, the letter from -- and I give a lot of credit to Chairman Goodlatte and Chairman Trey Gowdy. They sent a letter to Sessions and his comments back were very positive. He said out of respect of those two, he's taking serious look at this. But take for one moment. What just came out in the New Yorker just a couple days ago. Christopher Steele says he knew that the DNC and Hillary Clinton were paying for it. In the FISA application, the FBI said they did not -- they did not know who.

BARTIROMO: So they lied?

MCCARTHY: Yes. And how can you have a trust? Now FISA court is different than any other court because you don't have another attorney in there to argue back and forth. This is going before and this is surveilling American citizens. We can never make a mistake at this and I think -- and I think there are enough questions, enough actions and you have to take it out of the Department of Justice because there's current people sitting in there who actually signed these FISA applications. Let's make sure we have accountability, let's have trust, let's narrow it and let's get a special counsel.

BARTIROMO: I tell you, congressman, this really looks like an abuse of power. Are we going to see any accountability? I mean, is anybody actually going to get prosecuted for any of this?

MCCARTHY: I tell you what we're walking through and we want to go through the rules of law, people are innocent until proven guilty but there are so many questions here and the more that we dwell into it, the more we get -- we have to pool the information out. I mean, what's so embarrassing to me and offensive to me in all respects, how many times have we asked the FBI before for this information and they stop it and held it instead of giving it to really we are separate but co-equal. We have a right to know because we are the voice, the power is lent to us from the people to make sure the protection --

BARTIROMO: But what do you do? You've been stonewalled since last August?

MCCARTHY: Well, if you -- if you notice we never stop. We continue to move forward. That's why the special counsel is the idea is coming out of the House to Sessions and I hope for Sessions makes the right decision here.

BARTIROMO: Take us through the school safety bill? A lot of people talking about the fact that it doesn't include an age change. You know, there's not really any more pressure on gun owners, what is the school safety bill? What are you trying to achieve?

MCCARTHY: Well, remember what we have and we have to take a step back here. So back in December the congress actually passed the Fix NICS Bill. Remember what NIC is? The national --

BARTIROMO: It's a background check.

MCCARTHY: Yes, the National Instant Criminal background checks. Because when you go back to the Texas shooting, Mr. Kelly down there, he never should have been able to have a weapon because he was dishonorably discharged for actually beating his wife. There were two offenses there that he should never have been able to go through. But our own military did not update it. So what we're looking at is updating, making sure these bad people cannot have guns. That is sitting over in the Senate. Now we're adding to it this week, we have a former Sheriff of Jacksonville, Congressman Rutherford, he has stopped school violence. This is more for training within the schools to identify these individuals. Because look what the FBI did with this last shooter Nikolas Cruz? Five months prior, Nikolas Cruz goes on YouTube and puts that he wants to be a professional school shooter.

BARTIROMO: Right, and that was missed.

MCCARTHY: That was sent to the tip line of the FBI. They did research and said they couldn't find him. They never called YouTube. Then, later, a family member called in concern because his cruelty to animals, his recent death in the family, the way he was acting towards guns. They went back in and looked knowing that they had just been given a couple months prior and then closed it out again. Both of these incidents should have never happened. We need to start enforcing what we have but more importantly, we need to make sure the background checks are updated and that's the bill we passed in December and now we're adding to it with stop school violence and the bill we're passing this week, the Sandy Hook promise, they endorsed this bill as well.

BARTIROMO: Do you want to see teachers armed?

MCCARTHY: I think from a perspective not force teachers to be armed, but if somebody has a concealed carry permit and others and trained, I want to see it. But more importantly, what I want to see, I want to see if someone's given the tip that they're able to see it. I want to see that we prevent people that aren't supposed to have guns from getting them and secondly when I look at if there's a resource officer sitting on that campus, I don't want them hiding. I want them protecting these children like they're supposed to do and what they're hired to do.

BARTIROMO: And I know you're going to have the Judiciary Committee have the FBI come in and explain why these failures happened.

MCCARTHY: We just had the FBI and they're calling them in again. They're looking at all these incidents because they should not have happened. Where is the failure? We got to make sure we correct it and find a solution.

BARTIROMO: A word on the economy, good numbers Friday --

MCCARTHY: Not just good but great.

BARTIROMO: They were off the charts. I mean, it feels like a goldilocks situation here, not too hot or not too cold because wages were up but not as much as people thought.

MCCARTHY: You know what, when the president named it the tax cut and jobs bill and when he cut the regulation, what a difference it makes from one new administration. The administration working with the Congress, all those regulations we cut, but what's really exciting in these tax cut bills, look at the numbers on these jobs. The number of participation, for the first time we had 800,000 moving in. Look at the skilled labor. If you look at the skilled labor of the manufacturing, we have not seen these numbers since 1984, the best three months before. This is really making the difference. This is the beginning of America's comeback, and we want to continue that going forward.

BARTIROMO: Let me push back and tell you this is not a mandate to spend more money right?

MCCARTHY: Not at all.

BARTIROMO: I mean, you just voted $300 billion in new spending. A lot of people wondering where did the fiscal restraint of the Republicans go? I mean, is that going to cut into growth, what's your solution for a trillion dollar deficits?

MCCARTHY: Well, I'm going to tell you exactly what it is because we've been passing these budgets and balancing them. Where we made the investment, we made the investment in the military and rightfully so because what had been cut for the last eight years looking at North Korea, looking at Russia, looking at China in the South China Seas and other where we had to make a difference. But what's really grabbing all this money, and if you want to go back to 1984. In 1984 the mandatory spending only took 25 percent. That's Medicare, Medicaid, Social Security.

BARTIROMO: That's right.

MCCARTHY: And do you know what it takes today? 69 percent.

BARTIROMO: Yes I know that.

MCCARTHY: Congress acted. They made a reform. In ObamaCare, that's a whole new mandate that Obama laid on us. We tried to reform that. Unfortunately, we lost by one vote. That's why next -- tomorrow's vote is so important. Do you want Nancy Pelosi back where she's going to raise your taxes expand more when it comes to spending and that will actually break Medicare, and actually break Medicaid? We're protecting it for the future but more importantly making our economy stronger.

BARTIROMO: Real quick on technology. You mentioned YouTube, these companies have never been this powerful. Are we going to see new legislation, a bigger bite of regulation on the tech companies?

MCCARTHY: Look, I believe in the First Amendment, but think about this. When you're looking at what -- how much Facebook controls, how much Facebook has on what you actually see and when I'm looking what's happening and knocking down conservative voices, I think this is a place that Congress should actually look at and make sure we have really a fair process and a free process going forth.

BARTIROMO: We're going to be watching that. It's great to see you Majority Leader, thank you.

MCCARTHY: Great to see you.

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