please remember, the spin stops here. so thanks for looking out. >> breaking tonight in a landmark, first-of-its-kind decision, the obama a administration has placed school districts on notice tonight that transgender students must be treated equally in every way, including full access to locker rooms of the gender with which they identify. concluding any other result would be discriminatory. welcome to "the kelly file" everybody, i'm megyn kelly. it's an unprecedented decision. just one day ago, the department of education's office for civil rights foupd an illinois school district violated aent discrimination laws when it did not allow a transgendered

student unfettered access to the girl's locker room. this case has been going on for two years. but it is now making national headlines in papers like the new york times this week. the district argues it's made every effort to accommodate this high school student who is a young child began to identify as female but was born male, allowing her to play on female sports teams, use the girl's restroom. but it drew the line at allowing her to undress in the same locker room with other girls. instead, providing an adjacent changing room connected to that locker room. but that was not acceptable to the girl or to the aclu. and, now, in a case with precedent-setting implications, the administration says the school district must ditch any restrictions or it could face court and a loss of federal funding. in moments, we will speak to the district's superintendent, dr. daniel kates who is fighting this ruling.

we begin tonight with fras gallagher. >> megyn, the student who has not been named has gone through hormone therapy, but not gender rea reasinement therapy. as she went to high school, her request to be treated like a girl was honored by using her female name, giving her full access to girl's restrooms and girl's athletics, but the school would not allow her to dress and shower inside the girl's locker room. at first, she was given a private changing area, but the student said she felt singled out and sigmatized. she contacted the aclu who sued on her behalf. listen. >> they are setting aside a separate bathroom and telling only her that she has to use that restroom to dress. that is discriminatory. there's no other way to look at it. >> the department of education sided with the transgender student writing "township high school district 211 is not

following the law because the district continues to deny a female student the right to use the girl's locker room. but the transgender student had said that protect her own privacy, she would use privacy curtains inside the locker room if they are available. now they are available, but the department of education says it's not good enough. and if she is not allowed to shower with the rest of the girls within 30 days, the district could lose millions in federal funding. the unnamed student applauds the ruling saying the district's policy made her feel like she was a normal person -- or not a normal person. but the district is still fighting it saying the students in our schools are teenagers, not adults. and one's jegender is not the se anatmy. there are open changing areas and open shower facilities for a reason. several students sign a squool petition asking that she be allowed to use the girl's locker rooms. but many students say she should

not and many of their parents agree. trace, thank you. on the heels of the fed's decision, the school's superintendent released a statement saying this is a huge overreach. in a kelly file exclusive, we're joined by supersben dent of township high school district 211. dr., thank you for being with us here tonight. what is it specifically that you are concerned about if this young woman, young girl, has unfettered access. . >> as school leaders, we are charged with balancing the rights of all students. while we respect and honor transgender identity, it is our responsibility to create an everyone viernt that is protective of all of our students. >> i get all of that. i'm trying to cut through the academic speak and get to what specifically is it? what are you worried is will

happen? >> we believe that our accommodations provide a great deal of support to our transgender students. and, in our plan, what we believe that we're able to woork through is what transgender students would ask and benefit from, honestly. they would request privacy themselves and our accommodations would provide that. >> i get that. and we've made clear, the district tried. it tried many things. i gave her a private bathroom and then made it adjoining to the locker room and offered her to let her friends use it with her so she didn't feel isolated. you allowed her to play on the girl's sportings teams and all the other things. but i'm trying to get at what is the concern that you have if you have to go this extra level that the obama administration says you have to which is to let her use the actually girl's locker room as she wishes. >> so our position is that she would be using the girl's locker room. and our position is that transgender students could access those facilities. where we differ in our position

is that we are requesting an agreement, and a commitment on behalf of transgender students, that they would observe a measure of privacy. privacy in our locker rooms is a fundamental, critical right that we believe is protected for all of our students. and when the administration requests and requires that we remove that expectation or agreement, we believe that that compromises the rights of all of our students in the lorker room. >> how. >> by having students born of opposite sex in the locker room. we disagree with the office of civil rights that this is legally objectionable. we believe that the law stands -- >> but with respect, doctor, just explain it for us. what is it? have you had students object? have parents say i don't want to be exposed to amatny that is different? what is it? just tell us specifically. >> yes, we've had resounding comments from our parents.

although the comments come from both sides, there is resounding support from our parents to stand firm in our position to protect the privacy rights of the students in the locker rooms. it is both from being in the presence of students who have different anatomy and the young women that we have heard from believe firmly that that is a right that they would like to protect and safeguard and as school officials, it is our responsibility to do so. >> right now, we hear you fiekting the ruling. how? are you going to continue this? or are you going to have to come ply? >> we continue to work openly and diligently with the office of civil rights. we are hopeful and every day, school administrators work diligently with families about their most important gift in the world, and that is their children. >> respectfully, this is prime time capable. this isn't like a superintendent board meeting. we have to get to the heart of the matter. what are you going to do to fight the ruling?

>> we substantial doubt firm on our principles that protecting student's privacy is important. while we hope to reach a settlement, we would be willing to have that due process hearing, a full hearing on this matter to be sorted out. we believe that, again, our pofgs is one that stands on principles for privacy. >> thank you for being here, sir. all the best to you. >> thank you. >> well, my next guest sees things very differently. richard, thank you for being here. he's an academic so he speaks in academic. but you could hear the point that he's trying to make. he's trying to be respectful of other students who say they've bent over backwards to acome date this young girl. but at this point, there's a limit in 2015 america beyond which they feel uncomfortable. >> listen. i hear what the superintendent is saying. when you say this one student has to go behind a vail, you've

clearly separated her out. >> you have. >> that's an exclusionary. and that's part of the problem. >> i mean, that is absolutely true. you can't even dispute that it is. it's separate. but what he and his supporters say are not biassed. >> i can speak from experience. i always looked for the private changing area. i didn't have anything like this to deal with. so they feel uncomfortable. should their feelings count at all? >> i think their feelings should count. this is what you calm a teachable moment. you're never going to get rid of transgender folks or gay folks or muslims. so why not all would recollect together to really try to create safe and welcoming enviernts where we all can thrive. what are our differences? what are our similarities.

>> what they would say -- this is not my argument. this is their argument. what they would say is you can't -- why make everyone feel uncomfortable? all of these folks who are objecting just to make the one girl feel perfectly comfortable. in other words, they've done a lot to make her feel comfortable. but why is their comfort irrelevant? >> well, this is act inclusion, not exclusion. it's opening our our centers to more people and not less people. the only way to do that is by having conversations about how we can make it work. what are differences in anatomy? >> a lot of people aren't like that. they have figured out the differences. at least it was when i went to school. i. >> i think there's a big misconception about transgender folks. the only way to solve these problems is by educating themselves. >> yeah, richard, great to see you. thank you for being here.

>> thanks, megyn. so this is precede precedent-setting. that's why it's a big case. this is a ruling that can affect and likely will, school districts across this country. the administration settled with two skoolg districts. this is the first one that fought it and has lost. also tonight, we ha havebreaking news on the fire storm created when tarrantino referred to cops as murdererers. wait until you hear what he is saying, not sure it's going to put out this fire. next. plus, we also have new developments tonight on the fall out from an ugly republican debate and a push for new rules. governor chris christy is here along with senator ted cruz. and then, a new case in the woman who declared open season on crackers. we will show you who came forward after our interview last knighthood. >> i don't hate white people, if that's what you're asking me, megyn. i don't hate white people. i hate injustice.

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breaking tonight in the more than ten days since those comments were made at a police protest in new york, the backlash has spread to law enforcement groups representing more than a quarter million law enforcement officers across the country. today, for the first time, a response. playing the victim and refusing to apologize for remarks so incendiary that not even his bosses are backing him up. before we get to them, we go to trace gallagher and more on what tarrantino is saying tonight. >> you've got to keep in mind that now the five biggest police departments in the country along with the biggest police union in the country are vowing to

boycott tarrantino and now speaking out saying "we don't speak for quintton. he can and should be allowed to speak for himself." they are concerned the growing boycott to lead to an economic hit and our founder, harvey wine steen to clean up the mess. what he said was the truth. all cops are not murderers. i snefr said that. i never implied that, which is kind of a tough arkment to make when what you said is on tape. >> i am a human being with a conscious. and when i see murder, i cannot standby. and i have to call the murdered the murdered and i have to call the murderer the murderers. >> tarrantino believes police

are trying to single him out, shut him down and intimidate him. the largest police union isn't buying it. all of the sudden, he's not a cop hater, but at if same time, we're trying to intimidate him. now he's a victim of the cops he doesn't hate? police were also agitated by the fact that that rally you saw was just a few day after an n.y.p.d. officer was gunned down in the line of duty. >> sergeant, let me start with you. so he is technically correct. he did not say that all cops are murdererings. and, therefore, he believes he's been misrepresented in an effort to demonize him. it feels lousy and it is slanderous. your thoughts? >> i think that the perception of what occurred was pretty accurate. it is anti-police. he's talking about murder.

and whether it's reference to all cops, it is on the heels in which a new york city police officer was killed. if you look at all of his movies, in almost every movie he has written and directed, police officers are being shot in those movies. this boycott is growing across the country. in california, it's picking up. 11 major unions in california and a public alliance. it is a coordinator for law enforcement groups and labor unions across the country are now exploring investments of most of these financial institutions to support tarrantino and to look at the pension funds. what's occurring here is wrong. and the truth of the matter is both harvey weinstein and quintton is you're either part of the solution or you're part of the problem. if you want to be pa rt of the solution, you can contact me or my office and join in in some of

the things that we're doing to build bridges in the community. >> if they want to be part of the solution chlts. >> no doubt. no one else is doing it right now. >> harvey weinstein is not backing him up. they say he's a long time friend and we have a relationship with him, but he can speak for himself. the thing is, he's out there and he is saying this is vicious. i have been attacked. >> oh, poor me. >> and this is a guy who said -- implied, certainly, that certainly he thinks many cops are murders. and the implication was it's a wide swath. that's what the protesters were saying. that he was appearing at. and now he wants to come out and say -- >> this guy is worth how much money? >> a 00 dr$00 drid million. it's unbelievable. he's made that money glorifying violence and being antipolice. we heard him loud and clear when he showed up at that rally. further, it proved he was out of

touch when he talked about only his words being the i shall shoe here. the fact that he showed up four days after new york city police department officer was murdered on the street doing his job when tarrantino lives in a really nice neighborhood, which, by the way, is nice because the police officers in los angeles or where ever he decides to live keep criminals out of his neighborhood. he's never spents a day in the shoes of the police officers who walk the streets. the average cop makes $56,000. notice how these hollywood hypocrites haven't cede anything until the bolt tom line and the money department picked up the problem. it wasn't like they condemned it at the beginning. they weighed it until it became an economic impact on their bottom line. >> what is the harm in just

coming out and saying i apologize to the police officers who i -- it certainly sounded like awrongfully included them. i was speaking of the ones who actually have broken the law. and, of course, they can be condemned by anybody. but, certainly u the way he presented it left a lot of questions and a lot of anger. thung both for being here. we also have new clues tonight in a passenger plane crash killing hundreds of men, women and children. we'll show you what the pentagon is saying about a possible isis terror attack. plusz, new reaction as donald trump launches an attack that may have hit rubio where it hurts. >> his credit card debt and his problems, we've heard ablt it for years. [ female announcer] if you don't think "i've still got it" when you think aarp, then you don't know "aarp." life reimagined gives you tools and support to get the career you'll love.

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just hours ago, the campaign will release previously unseen records. after businessman donald trump accused the senator of being bad with the doug. >> oh, no, all you have to do is look at his credit card. he is a disaster with his credit cards. well, he has a very bad record of finances, if you look at what happened with his houses, with his, you know, he certainly lives above his means. there's no question about that. >> if that were not enough, check out what mr. trump had to say about senator rubio and sweating. >> did you ever see a guy sweat like rubio? i've never seen anything like this. >> he sweats more than any young person i've ever seen in my life. >> he's sweating like a pig. i never saw a guy sweat like this. the sweat is pouring down.

he's drinking water, water, water. i never saw anything like this. he drinks more water. he's like a machine. water, waeter, water. suite pours, gives a speech. >> mark, you know, in his defense, rubio does sweat and he does drink water. >> that is true. it's disqualifying for the presidency, obviously. look, they're unloading on rubio and it's very simple. they see him as a threat. this isn't going to work for trump attacking rubio as he attacked jeb bush. when he attacked jeb bush as a low energy guy, it was devastating because it rang true and two, because it touched a nerve. republicans are desperately afraid of having a low-energy nominee.

if marco rubio is sweating, by definition, it's not low energy. he's out there with lots of energy. you don't sweat by being low energy. >> well, listen. on that point,we'll get to the finances in a second. i heard this in casual conversation about how he sweats and the water and what their take away is he's nervous and he's not ready for prime time. that's what trump is trying to tap into there. >> look at that debate. did he seem he was sweating out of nerves? >> wlabt the money? this is what the debate moderators are trying to get to. there are a lot of questions that remain with some of these issues.

>> this all came up and later, the democrats used against rubio. he acknowledged that he spent some money on a state republican credit card that he shouldn't have. it was on personal matters and he claims they were mistakes. he paid back $16,000 to the state republican party. he was cleared by a state ethics commission. so unless there's some great big deal in this -- you know what, i think that's a little bit tough to be taking from donald trump. >> he's a guy who had a father who was a bartender and a mothe

something of himself. he had a hundred thousand dollars in student loans up until four years ago. he could easily say to donald trump, when i started out my career, i didn't get a small million dollar loan from my dad. i had to make it on my own. so i can relate to them in a way that you can't. >> that's an interesting thing. >> well, when natasha declared open season on cops, it got her national attention and landed her behind bars. tonight, a dramatic new twist. plus, the republican candidates who are trying to take back the debate are facing a new setback. at mfs investment management,

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who is refusing to sign the letter why? >> because it's stupid. >> what do you mean? >> put a podium on the stage, stand me mind it and let the people ask me questions and i will answer them. >> what about the unfair debate moderators? >> well, listen, if you can't handle that, then you shouldn't be running for president of the united states. it's not that i like it. nobody likes being treated unfairly. but the bigger probable i had was that they didn't control the debate. he's going to say their goal, the goal of what he perceives as liberal democratic debate moderators is just a ding up. >> ochk that's their goal. that's going to be the goal next fall when you're debating hillary clinton. i didn't allow myself to get distracted by that. you call people out bhin you

think they're wrong. i say even in new jersey that's rude. >> that's saying something. >> right? so you've got to call people out on it. talk to the people at home. >> his argument is they're trying to pick the most conservative person. this is what they're looking for. who is the most conservative person. you need conservative debate moderators. like hugh hewitt which he thinks will help the process more. >> i don't care who the moderators are. it doesn't matter to me. whoever is up there, is up there. my job is to listen to the questions. answer the questions. if i don't like them, call them out on it. we have $19 trillion in debt, isis plotting against us, the russians in the middle east and a 1.5% growth on the economy? are we going to spend any time on the moderators? i'm not doing it.

>> what do you make on what appears to be the fighting and jeb and rubio are fighting and so on. >> the fact is nobody cares. nobody cares about whether jeb speaks english or spanish. nobody cares about how much money trump made. no one cares about that. how are we going the pay off our student loans. why isn't the president of the united states standing up officer police officering across this country. why are we allowing there to be increased violence with liberal law enforcement policies. he has own f.b.i. director says there's a chill in the air. >> but the white house took a shot at you. >> when the president comes to new jersey and tries to take credit for criminal justice

reform, he doesn't have the right to do that. by the way, he didn't even mention my name. he's there with senator booker and mayor baracka. but that's okay. >> oh'm just kidding. >> oh, look at you. i come all the way across the hudson river to be face-to-face. >> this is not among the favorites. >> you noticed that apology? gretta apology jazzed to me on air. >> it was a figurative hug. you had the doughish look in your eyes. >> why don't we just take a step back. >> all right. if you think so.

always great to be here. >> get out of here. >> all right. is the show over? >> it's over for you. >> ginning us now with more from texas, ted cruz. great to see you, senator. so what of that message. in particular, by governor christy, which is essentially man up, stop complaining and just debate. >> i think that's exactly right. the three debates we've done so far i think have been terrific. my attitude is that i'm happy to debate any of the candidates any time and anywhere. and i think that is a good thing for the republican primary field. were we to explain the depths and the field of the terrific signing we have. >> are you signing onto this letter? >> no, i'm not interested in signing on a letter of demand. >> why is it that we have republican primary debates that

are moderated by democrats. yopg that makes any sense. and the one rule change that the rnc ought to think about is if you have never in your life voted a republican pry mafr, then you shouldn't be moderating. >> let me change that. i have no idea and i'm guessing you may tell me whether megyn kelly has. >> i can tell you, as a fact, those are two of the most fair,al ented journalists in the business. >> they could, potentially, my guess is that they have voted in a republican primary. i can tell you that they are not liberals and the reality is that most journalists of mainstream media stations are liberal democrats.

>> we have to submit our voting records to you or some committee? we have to prove what primaries we voted in? how would that really impact? >> megyn, it's not complicated. i've suggested -- >> obviously, when he was alive, he was one of the most respected. >> megyn, i'm hmm pill to debate in front of anybody. but a republican primary debate, to help voters decide who was conservative. >> this is basically a 16% business tax and the critics of this plan say it won't work because if you need a flat tax,

you have to have at least 20 pnts across the board or you're not doing to take enough money across the united states. >> any critic that's saying that is not putting out the numbers. as i put out the numbers, you can see the exact numbers on the tax plan. my tax plan says that for a family of four, the first $36,000, you pay 0. no income tax, no payroll tax. above that, everyone pays a flat tax of 10%. that means the billion nair hedge fund managers no longer pay a lower rate than their secretaries. and in if simple business flat tax of 16 pnt applies across the board. . and those two simple flat taxes allow us to eliminate the payroll tax, to eliminate the corporate income tax, to eliminate the death tax, to eliminate the obamacare taxes and to enable every american to fill out his or her taxes on a

postcard and to abolish the irs. >> senator ted cruz, it's always fun talking to you. thank you for being here. >> thank you, megyn, god bless. >> it goes on a bit about his tax plan. >> mark your calendars. the next republican debate is just a week away. they ool start the debate coverage at 6:00 p.m. at 9:00 p.m. prime time and then we'll all be on over here on fox news channel. coming up, became a national story with the video and the call to kill white people. last night, she came on this show and said she was takablabe of context. we reviewed the results and will have them next. >> again, megyn, once wed go further with this investigation,

the ending part those last 30 seconds of that video, will be very clear and explained. equals great rates. it's a fact. kind of like ordering wine equals pretending to know wine. pinot noir, which means peanut of the night.

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you have to understand the threats that were made before the video when she was having a google hangout chat and individuals infiltrated and hacked in and called her everything but a child of god. >> that was a clip of our interview last night. the woman accused of making terroristic threats. last night, her attorney defended her client's free-speech rights. today, however, we learned that the chat room's call-in number was being publicly posted to twitter and instagram where the ini have tigs remains to this day. the criminal defence attorney and arthur idol. good to see you both. let me start with you on this, arthur. do you believe that she has if free speech right to say with the gun and the machete open

season on police and crackers and everything that she said? >> if you took that in and of itself, the answer is no. even under the first amendment, you don't have a right to use fighting words. however, with my favorite lawyer, my father, taugt me when i was a young prosecutor, you have to focus on the doctrine of completeness. you have to look at the whole thing. so when you look at assault, you don't just look at the second part of the assault where the guy's beating someone in the face. you have to look t where the guy had a knife and attacked someone. here, she virsly and verbally attacked. >> that's what she says. there's apparently a six hour tape of this whole exchange. that this person who entered the chat room called her the "n" word and attacked her, a charge he denies. >> i used to think that arthur drank from the vat of gullible.

now he's addicted to it. >> i thought you were just going to say arthur drank. i was going to say that is true. >> red wooin. >> he's buying that her responses were because of a hacker? let me explain why she says we want blood for blood. the reason why she says things like we want blood for blood is because, as she explained on your show, she believes that police officers took the blood of young, black males and she wants blood as a result of that blood. taken in context, none of this is about hackers. it's about how she feels. those are fighting words. >> but, megyn, the judge doesn agree with mark. the judge, who heard the whole tape, or majority of it, granted her bail. >> they were never going to lock her up without bond. >> she was. the first judge did lock her up without bond. and then the second judge heard the tape and found out that this individual did use the harsh language and did trigger her.

obviously, what she said, we agree. it's horrible. but you need to look at the full picture. >> unbelievable that an experienced defense attorney like arthur would suggest that a bond being given to her somehow means that the judge is buying into her argument. that's not the case. her argument makes as much sense to me as putting a homeless person on house arrest. >> he must think of these things all day long, megyn. >> i prepare. >> i didn't know what preceded it.night. i didn't know what preceded it. >> and now we do. there is nasty stuff that preceded it. >> it's a pleasure. >> pleasure. >> don't go away. we'll be right back. ..

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developing tonight, the pentagon is weighing in on the passenger plane crash that killed hundreds of men and women and children. they are ruling out isis' claims that it brought down the jet with a missile but they have not ruled out terrorism. here is more from our middle east bureau. >> reporter: the remains of the 224 victims from the deadly crash returned to russia as family and friends gathered to st. petersburg to pay tribute to those lost. >> translator: we won't be able to replace those who died, unfortunately, but we can help every family, every relative. >> reporter: four days after the russian jet crashed in the sinai desert, there are more questions than answers. airline officials ruled out mechanical failure.

instead, blaming an external impact. officials tell fox news while there was a sudden an unexpected heat flash at the time of the crash, there's no evidence that the missile was fired towards the plane. and during an interview with the bbc, egyptian president downplayed terrorism as a cause saying, "when there is propaganda that it crashed because of isis, this is one way to damage the stability and security of egypt and the image of egypt. believe me, the situation in sinai, especially this limited area, is under our full control." as investigators sift through the debris, no one is ruling out terrorism as an exact cause. an on-board bomb is still a possibility but so, too, is a mechanical malfunction. russia's airline industry has long had a spotted safety record. russian and egyptian officials

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superintendent on ted cruz and on chris christie. go to facebook.com/thekellyfile. thanks for watching, everyone. i'm megyn kelly and this right here is "the kelly file." tonight, 2016 republican presidential candidate donald trump is here. he'll react to brand-new poll numb numbers. >> we're doing well. we're beating everybody by a lot. >> plus, he'll weigh in on his gop rivals. >>. then, president obama opens up about race relations in america. >> one of the things that i've consistently said in president is that i'm a president of all people. >> how many people have to die before we actually act? >> and hillary clinton makes a big push for gun control. the sheriff and geraldo rivera