obamacare. it was the central promise of the campaign. in my time in the senate, nobody has fought harder against obamacare than i have. this matters. we have to do it but get it right. it's not enough to have obamacare repeal in the title. we have to have legislation to fix the underlying problem. under obamacare, the average premiums have risen over $5,000 of the year. it's the fault of the federal government, the fault of the failed policy that is obamacare. we need to fix that. so throughout the conversations with the working group, with the majority leader, with the president, the vice president, i've made very clear, i want to get to yes and the way to get to yes is fix the underlying problems. lower premiums and i will happily be part of it. we can get there. there's a lot of other senators that feel the same way as i do. >> why not resolving that in a conference committee and you're

the person that prevents it? >> i think we can get there. this current draft doesn't do enough. my concern is, my biggest concern, under this draft, premiums would continue to rise. if premiums continue to rise after we hold a press conference claiming to have repealed obamacare, that's a disaster. it's a disaster politically, substantively. it would be a failure of the mandate we've been given by the voters. >> would you be willing to make changes on medicaid like legislation is currently stands? even if you turn to yes, there's some moderates that could be nos. >> every one expects this current draft for their to be significant changes to it. indeed the majority leader and the staff rolling it out said this is a first draft. there's going to be significant changes. we'll continue to have to have a negotiation. everybody has to give. that's the only way to get at least 50 out of 52 republicans.

we have a narrow majority. the only way to get to yes is if everybody is willing to give some. the keys are focusing on issues, on principles that bring us together. two principles that bring us together that are the keys to getting agreement and getting the job accomplished are number 1, lowering premiums. premiums go down, that's a win for everybody. a win for conservatives, win for moderates and a win for the men and women we represent. number 2, another principle that unifies everyone is state flexibility. letting states have far more flexibility. with medicate. letting each individual state design new plans to care for the most vulnerable. letting a more moderate governor like a john kasich in ohio do what the state of ohio wants and letting a more conservative governor like a greg abbott in texas do what the state of texas does. the beauty of more state

flexibility, it unifies our conference, gives a win for everyone. if we come out of this with premiums going down, with consumers having more choices, lower prices and states having more flexibility for creative, innovative solutions to caring for the most vulnerable, that is a big win. >> on medicaid, would you make changes? >> ted cruz. one of those that stands against this. so where are we? i'm shepard smith in new york, this is "shepard smith reporting." the senate gop healthcare bill includes key compromises to try to bridge the gap between conservative and moderate republicans. after weeks of closed-door negotiations and a decade of republicans railing against obamacare, the bill as it stands right now could be dead on arrival. you see, four republican senators say they are not yesterday ready to vote for this measure. who are they? well, rand paul of kentucky.

ten cruz from whom you just heard of texas. mike lee of you they and ron johnson of wisconsin. republicans can afford to lose two votes and pass this bill. this comes hours after gop senators released a draft version. it keeps the fundamental principles of obamacare intact. but dismantled some of the healthcare law. gone are the so-called employer mandates and the tax penalty on americans that don't carry insurance. this senate draft lifts obamacare's taxes on wealthy americans and medical company. it also creates a new system of tack credits for low income americans. similar to the health bill that the house passed last month. the one that president trump called mean. in fact, the senate bill is a lot like the house bill that senator rand paul called obamacare light. under obamacare, the government issues tax credits based on income. the senate would have the government give tax credits

based on income and age. while the house bill has tax credits based on age alone. the senate legislation would keep obamacare's protections for people with pre-existing conditions, unlike the house bill, which would allow states to opt out. this senate bill proposal includes a longer phase-out of expansions to medicaid, which provides medical coverage to millions and millions of americans. the senate bill phases out expansions from 2020 to 2024 while the house bill cuts all additional federal funding for the program in 2020. but this senate proposal still proposes deeper overall cuts to medicaid than the house bill did. as part of the compromise on which i reported earlier. the white house today would not comment on whether president trump agrees with the medicaid cuts. the white house banned live coverage of the daily briefing when sarah huckabee sanders came in the room, cameras were turned off and the audio was gageled

after the meeting was complete. here's what sarah huckabee sanders said about the cuts. >> i don't think the president weighed in that it's right to cut medicaid. one of the biggest parts of discussion is giving states flexibility and again, the president hasn't weighed in on specifically on any specific measure in this bill. as he said earlier today, this is a negotiation between the house and the senate and we're going to play a part on that. >> on the campaign trail, he said no cuts to medicaid. he said it repeatedly. president trump spoke about the bill without getting into specifics. here's what he said earlier. >> obamacare is a disaster. it's dead. totally dead. we're putting in a plan today that is going to be negotiated. we would love to have democrat support. they're obstructionists. they'll never support. but hopefully we get something done and with heart. >> shepard: capitol hill police

arrested disability rights advocates that gathered outside mitch mcconnell's office. he said the healthcare bill is a chance to fix america's broken healthcare system and end the status quo. >> when legislation comes to the floor, it will present senate democrats with another opportunity to do what is right for the american people. they can choose to keep standing by at their failing law continues to collapse and hurt more americans. but i hope they will join us instead to bring relief to the families that have struggled under obamacare for far too long. >> shepard: democrats say they won't do that. they've blasted the senate healthcare plan. the senate minority leader, chuck schumer called the measure a wolf in sheep's clothing with sharper teeth. >> the president said the senate bill needed heart. the way this bill cuts healthcare is heartless. the president said the house

bill was mean. the senate bill maybe be meaner. >> the head democrat. but the truth is, this has nothing to do with democrats. they're out. that's it, this is republican division in play. you see, under this bill, the roots of obamacare are intact. for more conservative republicans including four for whom there's a no vote, that is the rub. they want government out of healthcare. if too many protections for the sick and the elderly, children and the poor are removed, they'll lose more moderate republicans. today's proposal is a discussion draft. it cuts capitol gain taxes mostly on the rich investors by $1 trillion. it will most likely never become law as written. we have team fox coverage on the senate gop healthcare plan starting with mike emanuel who is live on capitol hill. hello, mike. >> hi, shep. sounds like there may be some serious last-minute negotiations to get the four republican senators to yes to get to 50 votes to pass it. the names, ted cruz, mike lee,

ron johnson and dr. rand paul all came out about an hour ago said they're against the bill as written but are open to negotiation. they say they want to do more to repeal obamacare and to lowter costs of healthcare. here's a sample of some of the republican differences. >> we're open to negotiation. we want the bill to look more like a repeal. we're afraid when we read the bill, it will looks like a reiteration or a keeping of obamacare. as we estimate the cost of the cities to buy insurance, we believe that they may exceed or at least equal subsidies of obamacare. >> this shifts power back to the states, allows them to design plans, options that gives people in their states, gives them more choices, create more competition to help drive down premiums. >> mitch mcconnell would like to hold a vote next week. we'll see if the four senators

coming out against it force a delay and perhaps bump it back to later in july. shep? >> shepard: what else are we hearing from democrats who are not in play at all? >> you're correct. they're protesting and triering to fire up their base. they're complaining about the process saying it's being rushed through. some are complaining about the cuts and the growth of medicaid spending. bottom line, democrats are saying this would be disastrous for the healthcare system. >> what is being talked about here is like having a whole in the roof of your house. instead of patching it, they want to burn down the house. what we're not willing to participate in is burning down the house. >> expect this to be the hot topic on the senate side of the capitol and across washington the next week and perhaps longer, shep. >> shepard: thanks, mike emanuel. so what would the proposed changes in the senate healthcare bill mean for you and your family? gerri willis is here to break it

down. does anybody lose coverage? >> yeah. >> shepard: millions of people. >> no, not millions of people. maybe half a million people. let me tell you who they are. under aca, obamacare would allow people who make 400% of the poverty level to get those important subsidies to pay for covera coverage, right? not this bill. it's 350%. so from 0 to 350% can get the subsidies. there's about 450,000 people out there that won't have coverage. over time, you said this at the beginning of the show breaking out what's in the bill, the medicaid expansion will get fewer and fewer federal dollars, right? by 2024, they will bring it down substantially. currently they pay nine out of $10 comes from the federal government. that will go back to the levels of old fashioned medicaid, which is based on the low income

people in those states. >> shepard: so people getting their insurance or getting health care through medicaid expansion, maybe not today or tomorrow, but they will lose that coverage? >> what is expected to happen, when the federal government backs off that nine out of $10, the states won't make that up and they will shut the systems down. >> shepard: all right. good to see you. >> good to see you. >> shepard: more ahead on this later from capitol hill. lots of reaction from lawmakers including senate republicans slamming the gop plan. we'll keep an eye on capitol hill. president trump is trying to put an end to the controversy that he himself started. today he admitted he never recorded conversations with james comey before he fired him as fbi director. the president did leave the door open on whether somebody else may have recorded his conversations with james comey. what did we learn today? we're live at the white house coming up on fox news. will you be ready when the moment turns romantic?

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>> shepard: after more than a month of refusing to say whether he secretly recorded conversations with with james comey,trump treats he did not. but he's not sure if somebody else did. president trump tweeted a couple hours ago with all of the recently recorded electronic surveillance, intercepts and masking and illegal leaking of information, i have no idea whether there are tapes or recordings of my conversations with james comey, but i did not

make and do not have any such recordings. of course, the president opened the door to questions when he tweeted this just days after firing james comey. james comey better hope there's no tapes of our conversations that he leaked to the press. james comey said lordy, i hope there's tapes because he said they would back his side of the story. leland vittert with matthew stafford. what led the white house to say this about the tweets? >> they were steadfast that the president was answering the question that he promised to answer this week. when pressed multiple times by reporters, why would it take 41 days to seemingly answer an easy question? >> he gave a timeline and a frame work and he did that. >> you will note this is only an audio recording.

a trend that tv journalists are finding disturbing. the white house says we're not able to bring in cameras to the briefings, not able to broadcast them live. as you reported, we could only record the audio after the briefing ends. >> shepard: the president said he is doubting whether russia meddled in our election. >> a lot of questions about that. the president's tweets speak for themselves. this tweet raised a lot of questions. by the way, if russia was working so hard on the 2016 election, it all took place during the obama admin. why didn't they stop them? we did the dnc turn down the dhs office to protect against hacks long prior to election? it's all a big dem hoax. while that sounded like the president did not believe russia was behind the hacking, the white house then clarified.

>> the hoax is about the fact that they're trying to delegitimize his win in the election process and less about the hack itself. i think he said several times now that he believes that russia was part of it. he also -- some of the same members have said that they don't think it influenced the election. that's what a lot of this process is about, it's about trying to make excuses for why democrats lost. >> as we heard last night, the president is more than happy to tell anyone and everyone why he thinks the democrats lost. >> shepard: thanks, leland. more ahead on the republican's healthcare bill in the senate or the draft proposal and opposition within the gop. we'll talk to a congressional reporter that spent the day speaking with lawmakers. she said there's serious questions about whether this proposal will ever become law. this will not become law if these four republicans don't vote yes.

it won't. they're requiring changes. the thing is, if they change to make rand paul and ted cruz happy with it, where are moderates left then? who might be lost? how do make this big become a law? that's coming up on "shepard smith reporting." you hear these stories all the time. am i going to pass away like my mom did? and so you know this is something that's important. losing my mom to heart disease and then being diagnosed myself. it's like a war we're trying to fight against these diseases. resilience is in my dna. i won't die like my mom. it's a big challenge, but the challenge in itself is what keeps me going. i could really make a difference in these people's lives. that would be my dream. buttrust angie's list to help.,

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>> shepard: 22 minutes past the hour. more on the healthcare plan put forward by senate republicans. in this morning of "usa today," nine questions we have about the senate healthcare bill. eliza, good to see you. >> good to be here? >> shepard: is it going to be as mean as the president wants? >> senator kennedy walked out of a meeting.

he hadn't seen the actual draft bill. he was asked if it is as mean. he didn't say anything. that's a big question. some people are getting criticism. it's close to the house bill. there's some money in certain areas that are more generous. but it's pretty close to the house bill and definitely less moderate than some people thought it would be. >> shepard: on the matter of medicaid, 40% of all kids, 39% of all children covered by medicaid. it's one of the fundamental social safety nets in our nation. it does take a hit. to what degree? >> it does take a hit. this is one where it takes less of a hit than the house. it's going away. republicans want this medicaid program to end. it expanded under obamacare. they don't want that anymore. the house bill cuts off 2020. there would be some money for opioid addiction. senators thought that that would be lost if medicaid funding is cut.

again, it's going to go away. >> shepard: we talk about the four senators that are republicans that already said that they're no votes as the bill is written. they're open to compromise. there's two more. susan collins and lisa murkowski that are up said about planned parent hood and medicaid. they're not for sure yesterday, are they? >> right. they're on the other end. >> shepard: the more moderates. >> yeah. they're conservative. they think this is obamacare light. they want it to be a full repeal. you have susan collins that is very moderate. senator murkowski that is moderate. planned parenthood is in the bill. it's not clear if it will pass with senate rules. it's in limbo. but susan collins said she's concerned about that it's absolutely not a necessary part of the bill in her words. >> shepard: in reading through here, there's what amounts to a trillion-dollar cut in capital

gains taxes. mainly on rich investors. it appears that that is being made up for how? >> not totally clear yet. there's different funding being moved around. there's a lot in there still being picked through. >> shepard: yeah, there is. there's a lot more to be heard on this, especially from susan collins and lisa murkowski. we'll wait for that. the rub is, if you appease the more conservatives, the tea party wing, the freedom caucus, you lose more moderates. what is the compromise that might get them to 51 votes? >> i'm so glad you mentioned the freedom caucus. that's the 30-something house members that are conservative. they did the same thing when the bill was in the house. they said no, we're not going to vote for it. they pulled it to the right. moderates got on board. that's what people like rand paul and ted cruz and mike lee and ron johnson are hoping will

happen, that there's more of them that they can say and moderates will get on board. >> shepard: eliza collins from u.s.a. today. we're waiting to hear much more from the rest of the republicans on this matter. when we do, we'll bring it to you. we're minutes away from a scheduled news conference in tread where fbi officials will give an update on a stabbing that they're saying they're investigating as an act of terrorism and a police officer. officials say a man yelled in arabic saying "god is great." more at the bottom of the hour and the top of the news. ahh. where are mom and dad? 'saved money on motorcycle insurance with geico! goin' up the country. love mom and dad' i'm takin' a nap. dude, you just woke up! ♪ ♪ i'm goin' up the country, baby don't you wanna go? ♪

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>> i'm lea gabrielle with the fox report. more with today's headlines. iraqi officials say islamic state terrorists blew up a historic mosque in mosul. the landmark dates back hundreds of years.

u.s. iraqi forces said they're closing in on mosul's historic district. the terrorist's last strong hold in the city. two window washers fell from a scaffolding after it malfunctioned and collapsed in philadelphia. that's when investigators told our local fox state the workers were strapped in so they're okay. crew lowered them to a nearby roof and took them to the hospital. someone called england's version of 911 to report the queen to the police. she was not wearing her seat belt. she traveled to westminster with prince charles to start a new session of parliament. in response, the royal family says the queen always make sure she's not breaking the law. we'll be right back. so let me ask you this... how does diabetes affect your heart? it doesn't, does it? actually, it does. type 2 diabetes can make you twice as likely to die from a cardiovascular event, like a heart attack or stroke.

and with heart disease, your risk is even higher. you didn't know that. no. yeah. but, wait, there's good news for adults who have type 2 diabetes and heart disease. jardiance is the only type 2 diabetes pill with a lifesaving cardiovascular benefit. jardiance is proven to both significantly reduce the chance of dying from a cardiovascular event in adults who have type 2 diabetes and heart disease and lower your a1c. jardiance can cause serious side effects including dehydration. this may cause you to feel dizzy, faint, or lightheaded, or weak upon standing. ketoacidosis is a serious side effect that may be fatal. symptoms include nausea, vomiting, stomach pain, tiredness, and trouble breathing. stop taking jardiance and call your doctor right away if you have symptoms of ketoacidosis or an allergic reaction. symptoms of an allergic reaction include rash, swelling, and difficulty breathing or swallowing. do not take jardiance if you are on dialysis or have severe kidney problems. other side effects are sudden kidney problems, genital yeast infections, increased bad cholesterol, and urinary tract infections, which may be serious. taking jardiance with a sulfonylurea or insulin may cause low blood sugar. tell your doctor about all the medicines you take

and if you have any medical conditions. so now that you know all that, what do you think? that it's time to think about jardiance. ask your doctor about jardiance. and get to the heart of what matters. >> shepard: breaking news on fox news channel. we're awaiting a news conference in michigan after a man stabbed a police officer in the neck at an airport in flint. the fbi is investigating and is

calling it an act of terrorism. the news conference taking place at the u.s. attorney's office in detroit about 60 miles south of flint. the feds amor ftouhi. police say the officer, lieutenant jeff neville is in satisfactory condition. he was initially critical. garrett tenney has more. what are you hearing about the officer's condition? >> everybody we talked to here at the airport told us that lieutenant neville is the guy that everybody likes and always the first to help out. we talked to a friend of his that said hours after surgery last night, lieutenant neville was already making jokes and talking with friends and how lucky he is to be alive. he is lucky, this is where the attack happened yesterday. fbi tells us that ftouhi came

out of this bathroom carrying a hunting knife. he stabbed lieutenant neville in the neck. three officers and a maintenance worker separated the two and ftouhi was arrested. that quick response is being credited for the reason that neville is still alive, shep. >> shepard: what more do we know about the suspect? >> well, we learned from the fbi that he's not believed to be part of a larger terrorist cell. he's believed to be alone wolf. his motivation that we're told, they believe he's carrying out this attack due to his hatred for the united states. we learned that amor ftouhi has lived in canada for the last three years. he's married, has children. he worked as a truck driver. mike mccall said that

investigators are working to find out what ftouhi's plans were when he entered the country last friday. >> we know he's probably self-radicalized, probably doing this in retaliation for the killings in the middle east in his words. he traveled from canada to new york and then to michigan. attempted to purchase a firearm and was denied because he's a foreign national. >> investigators are getting help from the canadian authorities who raided ftouhi's home in montreal last evening. we're told that prosecutors plan to notify the tunisian government and get help with the investigation there. >> shepard: garrett tenney on scene. we're waiting for the news conference to begin in detroit at the u.s. attorney's office. we'll take you there as suit as that news conference begins. more on the top story. senate republicans releasing a

plan to replace obamacare. but at least four gop senators said they're not ready to vote for the bill. that alone would be enough to sink the proposal. on top of that, there's more republicans that said they need time to decide. one example is susan collins, a moderate. her communications director said in a statement, "senator collins will review the text of the senate healthcare bill this woke and into the weekend. she has a number of concerns and will be interested in examining the cbo analysis on the impacted on insurance coverage, the effect on insurance premiums and the changes in the medicaid program. peter doocy is on capitol hill. what are you hearing from the rest of the republicans? >> shepard, we're hearing more details about what happened behind closed doors when gop leaders made a presentation to the conference about this draft discussion plan for healthcare. we're learning that the leaders

didn't have a whole lot of details, but still they did not lose all republican lawmaker whose have said that they might be skeptical about the plan, including louisiana senator bill cassidy. >> the presentation lowers premiums. that's a major issue. i think it begins to address the jimmy kimmel test. a child that is terribly ill or any loved one would both have coverage, but also a way to keep the coverage affordable. >> if there's one thing that we have heard over and over again, about every republican we ask, even though it's been a couple hours, they haven't had enough time to read the plan from their party's leader. >> i look forward to reading the bill. i haven't gotten back to the office to read it yet. it deserves considerations and debate. there's a lot in the bill. >> is a week time enough to have the debate? >> we didn't get an answer about

the week part. the reason they're asking, is a week enough time? that's how much longer the gop leadership wants to wait before they bring this thing to the senate floor. >> shepard: the word is they don't want to go home to the districts before they vote on it. which other senators should we be watching here? >> there's four others that we're watching closely. senator shelly moore and senator rob portman from ohio. both have been pushing for more money to combat the opioid epidemic. and dean heller and shelley capito. >> an update on president trump. he said he did not make or have private recordings of james comey, the fired fbi director. instead of putting the

controversy that he created to rest, he says he has no idea if other tapes or recordings exist. when news of comey's accounts broke, the president tweeted comey better hope there's no tapes of our conversations, tapes in quotes, before he starts leaking to the press. last month the president fired james comey who is leading the agency's russia investigation and the look into potential trump team ties to russia after that controversial firing, the deputy attorney general reported robert mueller as special counsel to lead the investigation into all things russia and trump. the times new cover story focuses on robert mueller and his special investigation. we recommend that leading. it's a lie detector test. first, breaking news. we want to get to detroit where the u.s. attorney's office is holding that news conference on

what they're now calling a terrorism investigation and the stabbing of a police officer in flint, michigan. let's listen in. >> as special agent in charge of the detroit division, first we'll hear from mr. lemmish and after that we will have president a ten-minute question and answer session. we'll take questions from folks in the room with us first and then go to the ones that have dialed in on the conference. just need to be patient with us. mr. lemmish? >> thank you. good afternoon, ladies and gentlemen. i'm here to talk to you about the incident that happened at the bishop international airport yesterday and jeffery neville was stabbed in the neck by a man by the name of amor ftouhi. there ftouhi is a 47-year-old citizen of canada who is

originally from tunisia. after the stabbing that happened yesterday morning, lieutenant neville was assisted by several citizens, by other police officers and workers in the airport that came to his aid and lieutenant neville himself fought back against his attacker. we're told that lieutenant neville is in stable condition and improving. our thoughts are with him and his family. yesterday at. 5:00 p.m., this office charged mr. ftouhi with violating 18 united states code section 37 a-1 which is called committing violence at an international airport that crime makes it illegal for any person to unlawfully and intentionally use a weapon to perform acts of violence against a person at an airport serving international civil aviation. the acts of violence must cause

or be likely to cause serious bodily injury or death. this crime is punishable by up to 20 years in prison. however, if death results, the offense is punishable by up to life in prison or potentially the death penalty. on june 21, yesterday evening, the defendant made his initial appearance before magistrate judge stephanie davis at the united states district courthouse in flint. the defendant was ordered temporarily detained without bond and his next hearing will be on june 28, 2017, at 2:30 p.m. at which time the court will decide whether to give him bond or not. the federal defender's office is currentsly representing mr. ftouhi. the investigation continues to determine the full extent of his planning and actions and whether he committed other crimes including a federal terrorism offense. the canadian authorities have been assisting the united states

in this investigation and want to extend our thanks to them for their cooperation. yesterday our attorney general, jeffery sessions, issued a statement about this case and about the priority that his administration and the president have for any crimes committed against a uniformed office or any federal agent in this country. i'd like to read that to you, if i may. i've just spoken with officials at the fbi about the attack on a police officer in flint michigan that is being investigated as an act of terrorism. president trump has prioritized the safety of all law enforcement officers, and this department of justice is committed to that goal. i want to assure all of our law enforcement across the nation any attack on someone that serves and protects our citizens will be investigated and prosecuted to the fullest extent of the law. i'm proud of the swift response from the fbi and our federal prosecutors and their partnership with local police

and the canadian authorities. our prayers are with the officer and his family for a full recovery." thank you. >> good afternoon. i'm the official agent in charge of the fbi in the state of michigan. i appreciate you being here again today. i want to qualify my brief update with the fact that this is still a pending investigation. i won't get into a great deal of the investigation since a tack yesterday morning at 9:45 a.m. at the bishop international airport in flint. as you know, i wouldn't recount exactly, but as you know, we know that subject ftouhi traveled into the united states legally at lake champlain new york on june 16th. preliminari

preliminarily, we show him in michigan as early as june 18. i can't say definitely he wasn't here sooner but we show activity in michigan on june 18th. as a result of the attack yesterday, we've conducted over 20 interviews of witnesses and we expect to do additional interviews as we continue to go through the information that we have obtained through a variety of investigative means. we've executed several search warrants and those search warrants could lead to other search warrants. i won't get into the detains. one specific search we conducted is with respect to the subject's void that he drove from canada. i won't go into specifics of what we found in the vehicle, but certainly that helped us with some of the indications of how long he had been in michigan or when he first entered into

michigan and other information, which we hope to further exploit. you may have heard that and we certainly are working with our canadian partners. investigative efforts are going on in canada where he was a resident of the nation canada. we're waiting for those inve investigative results from our canadian partners. we don't have much from the canadians yet. following our investigative efforts through today, i'll repeat what i said yesterday that we continue to have no information to suggest ftouhi's attack on lieutenant neville was part of a wider plot or that he was aided in this or had associates to this incidents. nothing has changed since yesterday. at the end of this press conference, we do want to provide a photo of ftouhi.

the reason being, if he had been here as early as the 18th and we don't know where else he had been once he crossed over to the united states, but if there are any individuals that encountered ftouhi while he was in michigan or anywhere on his route from new york to the state of michigan, we would like to get that photo out there. we would ask that individuals that have information relevant to mr. ftouhi called our office at 313-965 -- >> shepard: there you go. he said nothing new there. should be there any news out of the q&a section, we'll let you know. i was about to introduce michael scherer and his investigation "the lie detector" is the cover of "time" magazine today. what is your sense for where this is? we believe he's been successful in limiting leaks from his operation. he said through a spokesperson,

that anyone from his operation that leaks will be dealt with rather severely. he's been hiring up lawyers with a lot of very interesting specialties including white collar prosecutors, people with expertese in money laundering. there's someone on his team that is an expert in turning witnesses. and then there's more on constitutional law that could come into play if mueller tries to indict a sitting president, which opens up a tangle of legal issues. we know from what he's been given, he gets to choose his own adventure here. he can go in whatever direction he wants. he can look at the counter intelligence, look at the obstruction of justice questions about the president and he can look at the question of collusion and what involvement americans may have had in the russian attacks.

>> shepard: you talk about this effort to delegitimize mueller. >> that's happening but happening in a cautious way. if you go back to the late 90s, the clinton white house was full bore in attack at kenneth star and his investigation, calling it a witch hunt and attacking him from the podium. you don't see that happening here. the white house has been relatively quiet about this with the exception of the president's own tweets. you've had some indication from white house aides that it's worth noting that some people on mueller's team have given money to democrats, including hillary clinton calling their loyalties to doubt. but it's been calm. even people in the white house, republicans still speak highly of mueller and his historic independence. you have outside groups, newt -- >> he's selling a book. >> but also ordering up his own

oppo. >> shepard: what do you mean by that? >> he asked a number of his aides to do research to create data which forwarded to the white house of how much money people who are employed by the department of justice gave to clinton versus trump in the last election, how many mueller's law firm gave. he's got derogatory information about cases that people on mueller's team have lost. the traditional stuff that you do in politics. i think what is interesting about it though, it's being kept a distance from the white house now. there's this narrative being built and the president's tweets point to it, that this is a political witch hunt and an effort by the deep states. so it's a question 0 whether that will increase the coming months. this is a long investigation. we don't expect it to be finished any time soon. >> one part that i thought was funny, the law of holes. >> yeah. stop digging. the president has not been all that successful. you saw him saying there's no

tapes of his conversations with comey. this is something that he created. comey has testified that this is the reason why he leaked information which lead to the appointment of mueller which made things worse for the president. the president's own actions haven't served him well in the last few months. >> michael scherer. the cover of time, robert mueller, "the lie detector" a good read. thank you. and a tropical storm made landfall against louisiana, texas. drenching millions of people. the governor of louisiana warning that we're not out of theed woo. this is headed past shreveport and memphis and the carolinas here i come. a live report is next. and we came up with a plan

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>> shepard: breaking news new. two u.s. officials tell fox news that north korea has carried out another rocket engine test. it's the kind of rocket engine that could potentially launch an intercontinental ballistic missile. more as we get it. weather alert now. what is left of tropical storm cindy is moving north and east where millions of people are in its past. it roared ashore, hours after a storm surge killed a 10-year-old. tropical storm cindy dumbed more than a foot of rain in some places. pictures to show you in the slide though this afternoon. the first one here, as usual. here, man walks with his wife and carries his 8-year-old

daughter through a flooded street in new orleans. volunteers lay sandbags down south of new orleans. the mayors are urging people to evacuate. what is left of a baseball dug you'd, this is fort walton beach, florida. the panhandle. problem tornadoes touched down there. a big mess. big waves near galveston bait. a huge wave for what they called a nothing storm. and dirt and debris covered the main road on the peninsula, which is highway 87. you can see a lot of debris has washed shore. forecasters are still warning it could bring life threatening water. going to move up past along shreveport. here's memphis. going over memphis. it's already -- it's already affecting people in the carolinas. forecasters are warning it could

bring life threatening floods and flash flooding and tornadoes. steve harrigan is waist deep. where are you, steve? >> i'm on the corner of river road drive in gulfport. it's about four feet deep here. a few small snakes going by. we've seen pour out of this neighborhood. some carrying their own suitcases to walk through chest deep water. other people deciding to stick it out. some of those that do still have to walk their dogs. here's a young boy we talked to earlier. >> this is a tough way to walk a dog, isn't it? >> oh, yeah. for sure. very inconvenient for anybody. >> has to be done, right? >> yeah, it does. i don't want her peeing all over the house. i have to clean it up. >> there you go. >> all around here, people have tried to pull their cars up to

higher ground. that ground is getting more and more wet as each hour goes by. >> steve harrigan with the universal truth. nothing wants the dog peeing in the house. commercial break now and then neil cavuto on fox news. destroy. but when it comes to mortgages, she's less confident. fortunately for sarah, there's rocket mortgage by quicken loans. it's simple, so she can understand the details and be sure she's getting the right mortgage. apply simply. understand fully. mortgage confidently.

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>> the senate republican healthcare bill is a wolf in sheep's clothing. >> the law they have defended for seven years teeters on the edge of total collapse. >> so sad, mr. president. heartless. >> this system is in a tail spin. the system is collapsing. >> it's going to be very good. >> have enough heart? >> little negotiation but it's going to be great. >> neil: a lot of negotiation maybe. this is neil cavuto. you're