weeks back. this is interesting to see going forward. >> we are back on tv on monday, "happening now" starts right no now. >> leland: fox news alert, busy friday. president trump backing the republican senate health care bill while at the same time acknowledging that there is a very tough fight ahead. >> julie: also, president trump turning up the heat on the russia investigation. we are covering all the news happening now. >> i promised you i would repeal it, i did not promise i was going to replace it with a federal program or bail out insurance companies. >> julie: resistance to the republican health care bill coming from within the gop's own ranks. it is the legislation really in jeopardy or is this just political posturing? plus -- >> he's very good friends with a

comey, which is very bothersome. >> julie: president trump not mincing words when it comes to the connection between the former fbi director and the special counsel leading the russian investigation. it's all happening now. we begin with fox news alert, president trump says he has faith republicans can compromise and pass their health care bill. welcome to the second hour of "happening now," i'm julie banderas. >> leland: the battle lines are being drawn in washington over health care. senate democrats all oppose the bill and so do at least four republicans. do the math and something has to change before the bill could pass the senate. meanwhile, president trump speaking out on the russia investigation, calling claims of collusion to give us. we have fox coverage on capitol hill, we begin with our

man on the white house north lawn. >> always nice to talk to you, we travel around the country a lot with the president, you see these banners that read "promises made, promises kept" and you can argue that what happened today falls under that category. president trump doing all he can to improve the care of the veterans in this country. today he certainly followed that, signing the va accountability act. white house officials tell me this is just the beginning of the president's commitment to taking care of our veterans. i want to break down a couple of nuggets as of the folks at home understand what this really does. at speeds of disciplinary process, making it easier to fire those who engage in misconduct at the va, streamlines hiring at the top levels and improves care with an eye on reducing the backlog in

the wait times. >> those entrusted with this sacred duty of serving our veterans will be held accountable for the care they provide. >> i watched my wife beg, plead, and make countless phone calls so i could receive basic medical care. this administration has failed its promise that the veteran is empowered and in charge of his or her own care. >> powerful words today, heartfelt exchange. obviously an important ceremony at the white house. i should also bring you back to what you talked about, the health care battle continues on capitol hill, four republicans currently not backing the health care bill. to the is weighing in on this

today, he acknowledges that there is a very narrow path to victory but is calling the holdouts good at people. >> it's a beautiful weekend in washington, we'll see if there is any golfing mixed in this weekend. kevin, thank you. >> julie: republicans planning to vote on their health care bill before the fourth of july holiday, right around the corner. as kevin just mentioned, for conservative senators say they sadly cannot support the bill in its current form because it fails to repeal obamacare. >> there is a little bit of a surprise a little while ago when the senate majority whip whose job it is to round up enough votes or leadership for a bill to pass seem to sympathize with the holdouts from his own party.

>> this is not a perfect bill and i understand senator paul's concerns, but we have to deal with the art of the possible here. it's not going to be something each of us are going to like standing alone, but i think this is the best we've been able to do with the hand we've been dealt. we can't afford to fail. >> one of the four who is a note right now, senator ted cruz is outlining four-point plan to change his vote to yes. he and the other senators are all signaling that they can be convinced to side with leadership and vote yes but they want to see more of obamacare repealed and more of a guarantee that health care costs will drop. we got some new comments from the person the bill at the center of this fight is named after. he went on facebook with a long defense of his signature legislation, saying --

>> trumpcare isn't just "mean" it is cruel and deadly. >> more and more democrats are presenting this legislation and the fight over it as a life-and-death fight. >> julie: thank you very much. >> leland: meanwhile, president trump is sounding off onto something they are also talking about on capitol hill, the russia investigation. the president's calling accusations of possible collusion between his campaign and the russians ridiculous. he also voiced concerns about special counsel at robert mueller and his ties to former fbi director james comey that go back years.

how close are these two men, catherine? >> the relationship between robert mueller and james comey has been under the microscope since may when mueller took over the russia investigation. this video from 2013 shows james comey as he was nominated for fbi director, taking over for robert mueller who had held the job for 12 years. the president has disputed comey's characterization of their private conversations, specifically over national security advisor mike flynn. he told fox this morning he is taking a wait and see attitude over whether mueller should recuse himself from the current investigation. >> he is very good friends with comey, which is very bothersome. robert mueller is an honorable man and hopefully he'll come up with an honorable solution. >> on the president's tweets

thursday that he doesn't have tapes of those private conversations with comey, the white house spokesman said today, it all had a purpose. >> the reality is that he wanted to make sure that the truth came out and by talking about them and like tapes, it made people, comey in particular, think to himself that he better be honest and tell the truth about the circumstances regarding the situation. >> in this statement, the ranking democrat of the health back house intelligence committee is questioning the president's motivation and whether it was designed to mislead the public to and intimidate the former fbi director. >> leland: thank you. >> julie: a former

state department security officer now charged with the buying for china, a look at the case against him. and the white house is optimistic the senate health care bill will pass, but with democratic opposition and even some g.o.p. holdouts. can senate republicans really make it happen? >> i think the senate has taken a remarkably positive step forward, senator mcconnell has continued to work with his members to make sure we approve the bill that the house passed over and i think we are going to move forward and get this done. without touching our savings. yeah, our insurance won't do that. no. you can leave worry behind when liberty stands with you™. liberty mutual insurance. could be preventedrrent with the right steps. and take it from me, every step counts. a bayer aspirin regimen is one of those steps in helping prevent another stroke.

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>> leland: live fixtures from over minnetonka minnesota, you are looking at a storage facility where there has been a shooting. you can see the large police presence, what looks like an ambulance there in the lower part of your screen. at least according to police, two people are down after this

shooting. we don't know if one was the shooter, one was a victim or if both were victims. you can see the ambulance moving, told the police are moving through the area around the storage facility with their weapons drawn. what to make of that is up to you, we will take an eye on things from minnetonka. will update you when we can. >> i promised you i was going to repeal it, i did not promise people i was going to replace it with a federal program, bailing out insurance companies. of the fundamental flaw of obamacare was that we said to people, you can buy insurance after you are sick and we also added regulations to insurance to increase the price of insurance those fundamental flaws that still remain. >> julie: that you have it, kentucky senator rand paul

1 of 4 republicans who say they do not want to back the current bill. meanwhile, democrats are all opposed and they are blasting republicans for drafting the bill in secret sessions, listen. >> for my dear friend of the majority leader say we are going to have an open amendment process is turning proof upside down. >> please don't call this an open and fair process. >> if you want to rush it through, admit the consequences. >> julie: during the first hour of "happening now," i spoke with republican senator john cornyn of texas.

>> it seems like it's very hard to believe any of it. >> as the bill's creator put it, the lack of transparency was an advantage for them. if they knew the premiums are going to go up and they would

lose coverage, nobody would support it. it's why obamacare was never popular. i think the senate republicans are trying to get to yes, it's not an ideal process, it's not the perfect bill, but don't let the perfect be the enemy of the good. they have to pass something, they are either going to pass a repeal and replace of obamacare or they are going to have to pass a bill to prop up obamacare, it's one of the othe other. >> julie: this is draft legislation, open for debate. obviously a lot will be coming after the score is released next week. i want to talk about the republicans are opposed to this, they said they will be opposed to it before it even came out and when it came out they were still opposed to it before they had read it. susan collins of maine is one of them. no surprise, she also happened to vote with democrats in 2015 against a bill to repeal obamacare and to defund planned parenthood. are these republicans going to bend at all?

>> i think this is a do-or-die moment for republicans. politically, they don't have a choice here. senator rand paul for instance can pretend all he wants that you can start over but there is not time to start over. when you have millions of people kicked off their health care or have no choice of insurers, they are going to have to pass something. i think a lot of this is political posturing, it's very interesting to see republican senator ted cruz try to position himself as a conciliator. i think he will probably try to get to yes. i think somebody like rand paul, a guy who was more interested in making a point than making policy and improving people's lives, i think he is a tough -- >> rand paul was the first run at the very beginning, he said "i want the house to come up with a copperheads of bill and do not" and he was the first want to come up with a comprehensive idea.

>> really being disingenuous on what those are all about, he said it would help. you can't take him seriously, this is not a constructive guy. you are not going to get the perfect here. this is a major step in the right direction. it would be the biggest reform of a welfare program since the 1996 welfare act. >> the house bill would also repeal the individual and employer mandates, that is something people really hated when obamacare past. you will take our health care and if you do not sign up, you will be penalized. number two is premiums, those continue to go up. what about this plan will actually save people money. those democrats who oppose it say it's going to end up costing more and millions of people are going to lose. >> when government runs at something, you get a more expensive product and a worse outcome, look at public schooling, look at the defense

budget, this is what happens when you don't have competition. with this bill is going to try to do is to give insurers some more flexibility to offer products so people actually want to buy at the price which they can buy them. and also to give governors more flexibility on a medicaid it to use that money to target the people who really need it. not able bodied, working age people who are currently on medicaid because of obamacare. >> let's talk about the critics who say this is going to slash medicaid and that in fact the reason being is because it needs a billions of dollars to provide tax cuts to the wealthy. >> first of all, let's talk about who medicaid was originally supposed to help, it was supposed to help the poor, it was supposed to help children, handicapped people, people who really needed the help. what obamacare did is it simply said let's expand this program to people who don't need it.

you had some states, indiana and rhode island being some examples, the government said just give us the money and let us construct the programs to help the people in our states. that's republican's are trying to do while also lifting the streets on insurers to get more competition in there and offer catastrophic policies. young people don't need that extensive coverage, they just need coverage for really big emergency, unexpected events. for those who say somebody is going to uncovered in america, that has never been true. >> the message of people are going to die, that is beyond the worst message. that is a scare tactic. >> that's just trying to shut

down the debate. we wouldn't of had this if democrats had passed health care reform actually worked. they kicked millions of people off of their health care coverage, which is never mentioned when you hear those scare stories. >> thank you very much. great insight. >> leland: speaking of the democrats, some democrats are ready to part ways with house minority leader nancy pelosi. but get this, she says it is "worth it" for her to stick around. our next guest says it will take more than new leadership to turn things around. you don't let anything

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>> nancy pelosi is used to playing defense against the republicans, but now she is facing incoming fire from some fellow democrats. blaming her for a string of election losses dating back to november and capped off with two republican special election wins this week. >> nancy pelosi was a great speaker, she is a great leader but her time has come and gone. yes, she has a great fundraiser but the money we are raising with her leadership is not helping us win elections, then we have to have this conversation now. i believe she is not the leader for the future of the democratic party, it's that simple. >> leland: other democrats echo the senate sentiment, sayw leader is needed.

nancy pelosi says she plans to stay put. >> we are paving the way for a new generation of leadership. i respect any opinion that members have my decision come about how long i stay is not up to them. >> leland: with all due respect to nancy pelosi, isn't it up to the democratic caucus if she stays or not? >> they did just vote for her so in a way she does have a case. i think the ground has shifted beneath her and she does not realize that the democrats continue to lose and maybe leadership is to blame. obviously there are a ton of other reasons but you've got to think there might be one of them. it's beginning to dawn on several members that they really need to change something if ever want to win again. >> leland: it should be noted, it takes a certain amount of political courage and could come at a certain amount of political cost to take somebody as

powerful as nancy pelosi on in that public kind of way. >> if you are coming for her and you miss you might be in troubl trouble. democrats are so blinded for their hatred of trams that they are unable to look at themselves, they think that trump is dam and evil but they don't realize that many voters see the democrats is even worse. they need to address those issues, it's not just a matter of getting new leadership, it's a matter of presenting new policy, policy ideas that are reflective and that voters want. they aren't able to do that in a convincing enough fashion. >> leland: since you brought up the president, why don't we get his view on this? >> i hope she doesn't step down. i think it would be a very sad day for republicans if she steps down. i'd be very disappointed if she did, i'd like to keep her right where she is because our record is extraordinary against her.

>> leland: the g.o.p. couldn't resist adding on this tweet, here is the tweet from the g.o.p. noteworthy that it was the democrats who came up with this tweet, #iamwithher didn't work so well. >> democrats need to stand by their leader to show they are a unified presence. i don't know what the consequence is our politically. i think you are seeing some sort of inner gains going forth. >> leland: you had a piece about this, about chelsea clinton possibly trying to step up and think about a run for office, positioning herself. it does nancy pelosi have to worry about a clinton insurrection if you will?

>> i do think she has to worry about a clinton insurrection, but the same thing keeping nancy pelosi afloat is what would keep chelsea clinton, which is basically '90s nostalgia, democrats are unable to look forward to new leaders and new people and instead are relying on the same people. the average age of the house democratic leadership is something like 77. obviously chelsea clinton is a lot younger but she has a representative the past. >> leland: appreciate your time, great reporting, we will talk to you soon. >> julie: of former military contractor facing judge. the latest from the courtroom. and a new report on vladimir putin meddling in the presidential election. what we are learning today and how it could impact the russian embassy.

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go! go! go! [ girl catching her breath } [ bees buzzing inside vehicle ] the all-new volkswagen atlas. with easy-access 3rd row. life's as big as you make it. >> leland: a fox news alert, some good news on this friday. steve scalise, the house majority whip who was shot and very severely wounded last wednesday at a congressional baseball game practice is now out of the icu. he is still in fair condition but as you might remember, the president among others asked all of us to pray for his recovery and there in washington, doctors have moved him out of the icu. still in fair condition but certainly it appears on the men

mend. >> julie: new information on a former state department security officer and military contractor accused of spying for china. the army veteran is charged with espionage for allegedly sending top-secret documents to chinese officials. >> for someone who is alleged to have sent military secrets to the chinese, he was extremely careless. he returned from shanghai carrying $60,500 in carry-on bags. a month later, the fbi came knocking and in the interview, he told agents that he met with two officials from a chinese think tank we thought were chinese spies. he told the fbi in may that his chinese contacts had given him a

secure communications device through which he sent them on classified documents. later analysis revealed that those who to go documents were classified as secret. another document he sent was classified as top secret. u.s. investigators also found written texts from valerie, one of which read "your object is to gain information, my object is to be paid for it." he told fbi agents that he wasn't simply stringing the chinese agents along and had nothing of significance to give them. but another text messages, the federal government said he supplied classified information for money.

he is fluent in mandarin and has worked for many u.s. agencies and defense contractors. he lost his top-secret security clearance in 2012 after leaving the government, but recently had been seeking new government employment. he faced up to life in prison should he be convicted. >> julie: thank you so much. ♪ >> leland: "happening now," "the washington post" with a bombshell report, calling into question how the obama administration handled russian hacking and their response to it during the election. it is titled "obama's secret struggle to punish russia for election assault." it reads in part -- it goes on.

a stunning admission. she was on the white house and sick security council under president bush and president obama. pretty stunning, "we choke" from someone in the obama administration, they were not apt to admit fault back then and even less so now. >> it is a bombshell like you said, but at the same time what administration official does not stand for the hole. what i caution people against when it comes to any of these russia stories is that the most important take away and the most important take away from this particular "washington post" piece is that the russian threat to the united states and all its forms is it serious israel, and is not a partisan or a political issue. i think until americans really

start to understand and accept that, the reality is that we are really doomed to fail. undercut ourselves by not acknowledging the important national security element here. >> leland: if anything, the president made your argument the cornerstone of his presidency. he united the country around the idea of the cold war and going about winning that war. it does seem like the obama administration for whatever reason did not address the russian hacking or meddling, whatever you want to call it, in a way that got the russians to stop. >> that's true. i don't think there is anyone in this scenario, i'm not trying to beat around the bush here. i'm just trying to make the point that it is still hard to pin this down on partisan politics. nobody gets off scot-free, everybody has blood on their hands. >> leland: the president was the president, if you believe

"the washington post" and they have a lot of sourcing on this, this report went to president obama and he said "find me options" and sort of argued and debated and took too much time and by that time the election had happened. isn't that always the knock on the obama administration, that they had options but spend too much time thinking and not enough time doing and that is why our enemies are not scared of us? >> president obama liked to government and lead by consensus, he certainly took his time with any decisions, whether it was military operations, intelligence, covert operations. i can see the way this may have been strung out. one thing in the article that the obama administration official says is that part of the reason that efforts were stunted is because the president was worried about being perceived as having a political hand in the general election. he wanted to stay out of this. i'm not defending, but saying you can see the quandary that this puts the obama

administration in. the trunk campaign for its part was also in the same exact position. no easy options here. >> leland: that's why they say it's the hardest job in the world to be president and make those decisions. the current president may not agree with you in terms of it not being a partisan issue. he tweeted out yesterday, the timing could have been coincidental, may not be. this is the president's tweet -- touche. >> but at the same time, president trump now knows that being the president, it is the hardest job in the world and there is no easy way to control what our adversaries around the world are doing. i think it took the obama administration a decent amount

of time to realize the full effect of the russian operation, the russian campaign. once they figure that out, it was basically time for the general election. the timeline here was not favorable to a certain outcome. at the trump administration is still struggling with they should do in terms of repercussions. >> leland: we have to go. before you leave, i want to think you would also put up in terms of russia still testing the united states even under the trump administration, pictures from the pentagon of just how close that jet was flying to an american air force jet, that russian jet was armed as well. the provocations from the russians don't stop. thank you, more to come. >> julie: is still happening on "happening now," president trump denies making any recordings of his conversations with the former fbi director james comey. now he is calling out special

counsel robert mueller's long friendship with james comey. is the relationship a conflict of interest? our political panel will break it down next. >> my story was always the truth, you will have to determine for yourself whether or not his story change. i should take a closer look at geico... geico can help with way more than car insurance. boats, homes, motorcycles... even umbrella coverage. this guy's gonna wish he brought his umbrella. fire at will! how'd you know the guy's name is will? yeah? it's an expression, ya know? fire at will? you never heard of that? oh, there goes will! bye, will! that's not his name! take a closer look at geico. great savings. and a whole lot more.

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>> you never know what's happening when you see that the obama administration perhaps longer than that was doing all this unmasking and surveillance, you read all about it. i've been reading about in the last couple of months, the seriousness and horrible situation with surveillance all over the place. you've been hearing the word unmasking, a word you probably never heard before. you don't know what's out there. i don't have any tapes, but when he found out that there may be tapes, whether it's governmental tapes or anything else, who

knows. >> julie: president trump on fox and friends this morning saying he did not control his conversations with former fbi director james comey. let's bring in our panel. thank you very much for talking to us. even for trump actually announce other recordings didn't exist, newt gingrich came out and basically said that he realized all along he was bluffing, that is the presidents ammo. he actually said "i think in his way, he was trying to rattle comey." >> i love it. we have an fbi director who is in a leaker. he started this and to the president wanted to make sure he was consistent in his statement. lisa reports coming from cnn before the tape allegation that

comey denied the three times he told president trump that he wasn't under investigation. >> julie: was this rattling? >> i think it was. it's very obvious, he does this fairly often, go out and stir up controversy. we've been talking about this now for six weeks as a result of this and it takes a lot of attention away on the many things the president would rather be not talking about that are not going so well in the administration. >> julie: president trump also said you don't know what is out there, he doesn't have any tapes, who knows. it's almost like he is still sort of leaving it out there. >> comey should feel like every american feels, we've been spied on by the fbi for years now. the fbi director is feeling what it feels to be an american private citizen. i don't care about the fbi director being startled or

squirmy, that is how we feel as an average american. >> julie: it's perfectly legal. are the wisest choice? somewhat argue maybe not, but any time you walk into the oval office you better assume that somebody is surveilling yo you. >> i don't think -- if the president doesn't know about it, i will be very suspicious to suggest that someone is taping the president and the president doesn't know about it. >> julie: the president knows about it. defending president trump, newt gingrich went on to say that he is not a professional politician, he doesn't come back to think about nixon and watergate, his out instinct iso out bluff. as a businessman, that is what businessmen do. it's like a game of poker. you've got to out bluff your competitor. >> from what i said from the very beginning, this fbi

director held to the american people that donald trump was not under investigation. >> let's be very clear, he did not hold from people that he was under investigation. just because donald trump was not personally under investigation, everyone around him was under investigation. i think that is a distinction. >> the narrative has been that trump was colluding with russia -- >> julie: regarding the relationship between robert mueller and james comey, because this from the very beginning i have said just seems like it has conflict of interest written all over it. james comey, huge fan of robert mueller, and robert mueller hired andrew wiseman. if you don't know about him at home, he oversaw the enron task force and led the prosecution of the arthur andersen accounting firm. he also was a donator to hillary

clinton's political campaign, he was highly criticized from the new york observer newspaper. guess who owned the observer at the time? kushner. and now this guy has been hired by mueller. >> there is a lot of shady business. >> julie: i like how you say that with an accent. i agree. >> the president said that he did believe that mueller was an honorable man. he is not completely throwing mueller under the bus, i do think it is a little shady that with comey saying he wanted to leak this information so he could get the special prosecutor and then he knew all along it was going to be his best pal. >> julie: do you see any issue with mueller and his involvement with james comey and his investigation? >> i have never seen such effusive praise for people on both sides of the aisle about anyone in washington.

to suddenly suggest that robert mueller is compromised is a talking point that people are trying to use. >> julie: thank you very much, appreciate you both coming in. >> leland: wildfires and record heat causing some serious problems out west. by the odds are now stacked against the crews battling the dangerous fires. tech: giving you a few more minutes for what matters most. take care. kids singing: safelite® repair, safelite® replace. manait's a series of is nsmart choices. and when you replace one meal or snack a day with glucerna made with carbsteady to help minimize blood sugar spikes you can really feel it. glucerna. everyday progress.

>> hi everyone, i am sandra smith. to the camera is lined up and ready, the briefing room is full. why is the white house not allowing media to air the briefing live? some democrats believe the health care bill is going to

hurt people. president obama back on the campaign trail, who he is stumping for and why the democrats cannot quit nancy pelosi in spite of all the recent losses. on "america's news headquarters headquarters." >> julie: we are back with a fox news alert, wildfires scorching thousands of acres across arizona and utah, forcing hundreds of people to leave their homes. live in los angeles with the latest. >> those triple digit temperatures are turning deadly as nearly a dozen people have died so far from heat all across the southwest. in utah, the fire in the southwestern part of the state has charred 27,000 acres so far, destroying 13 homes and forcing many more to evacuate including members of the romney family. they have been staying in their grandmother's cabin when they got the call to leave. the temperatures are causing dangerous fire conditions.

>> a fire of this magnitude with the energy out there does what it wants and it's very susceptible to the wind, it continues to push it in multiple directions. >> firefighters from all over the state are attacking it including from the air. four air tankers and nine helicopters are in that fight. unfortunately, these high temperatures are going to be with us through next week. officials are telling people, if you can, just say inside. >> leland: you're going to love this. what's behind the new toilet to band? you heard of that right, rolling through new york. that's where i felt relief.

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rolling out a mobile bathroom, company doing a promotion in new york city. allowing people to hail it's a van gogh for a little release. >> you got it all here in new york. when you got to go, you got to go. have a great weekend. ♪ >> sandra: the white house briefing now under way and this one is closed to cameras. one of the issue sure to come up as a major turn in the investigation into russian meddling in the u.s. election. the senate now calling for a probe into obama's attorney general. hello, everyone. i am sandra smith. senate leaders more information from loretta lynch and others about allegations of interference in the fbi's investigation into hillary clinton's emails. chief intelligence correspondent catherine herridge joins us now. >> them breaking memory of the senate judiciary committee