thanks for inviting us into your home. that's it for this "special report." the "story" with martha maccallum starts right now. >> martha: thanks. a lot of great quotes and fun. there will be more quotes this evening making our way through tonight. 5 hours and counting to get a deal tonight or the government will shut down at midnight. what that might look like if it happens this evening. i am martha maccallum live in washington, d.c. tonight power packed. we have mick mulvaney, sean spicer. tom cotton and jim jordan all ahead. first the shutdown showdown on the eve of the one year anniversary of the trump white house. president trump was expected to leave this afternoon to head to florida for the weekend. but not yet. he is still behind us tonight in the white house. quite a bit of art to this deal as they try to avert what the president called the schumer

showdown. the senate minority leader and the president and their chief of staff met in the oval office this afternoon. they said we made progress. there are a good number of disagreements that still remain. tonight the president tweeting in favor of 4 weeks to hammer out the rest. with 3 republican senators, graham, blake and paul in the no column, they have to get to 60. mike emanuel has been following the latest on the hill tonight. he joins us from capitol hill where the story is continuing to unfold. >> no doubt about it. good evening to you. speaking to republicans and democrat senators most are looking for a way out frft government shutdown in the hours ahead. on the senate floor we saw republican and democrat lawmakers speaking. perhaps starting the blame game a bit. blaming the other side for a

potential government shutdown. the senate majority leader said there is an easy way out of this mess. >> we already have the bill we know it can pass the house because it already did. we have a bill that we know the president will sign into law because he commited to do just that. >> there was great hope on the hill when president trump invited the democratic leader chuck schumer this afternoon. he brought a list of issues to talk about going beyond daca, the young people brought to this country illegally by their parents. he took the opportunity to talk to a range of matters about the president. >> the president is supposed to lead. the art of the deal. this is a good time to show it. situations like this, i was very much involved. very much hands on. reaching out to both sides. there is a deal to be had here. >> there has been significant movement in the last few

minutes. democrat senators will meet at 8:30. then we expect around 10 o'clock eastern time, there may be an attempt to see if they have 60 votes to pass the deal that passed the house last night. >> martha: mike, thank you very much. chris fox news politics editor and mark and a fox news contributor. welcome. a couple of minutes ago there was movement. mitch mcconnell is on the floor right now. this is an idea we talked about earlier. perhaps he just tried to push through what passed the house and what the president said he will fine. >> he has to make them pay for it. if the senate democrats are going to vote for the house bill, he has to make them vote no. give them a chance to vote no and get them on the record. then in the final hour, democrats want out of this thing.

they don't want to get stuck with this. it's too far from the daca deadline. at the last hour, chuck, how about a 5-day extension? we will take it. give us anything. >> martha: it's unbelievable, mark. this would be the 4th cr. they haven't passed a budget on time since 1996. folks at home watch in and say again? they throw their hands up. >> it's a manufactured crisis. the daca goes until march 5th. president trump said if we don't get a deal i will extend it further. people were upset and said you don't do that when you are negotiating. this bill has funding for 9 million poor kids. that dies tomorrow if they don't pass something. >> martha: there is nothing in the deal that democrats should be opposed to?

>> no. they are opposeed to what donald trump said a week ago. they need to grow up and stop being over-sensitive millennials and negotiate with the president of the united states. >> martha: graham believed they were close last tuesday and would get a bipartisan deal on daca. he said if we don't get it now, it won't happen. >> there is a deal to be had out there. no reason to think a month from now. in the republicans got everything they wanted and a one month continuance. the democrats have a strengthened position on daca. it's a zero advantage for republicans to be the party of deporting young adults in the united states through no fault of their own. they don't want to do it. the democrat leverage goes later. too soon to shutdown the government on this issue. >> martha: we will talk about the first year of the trump administration. mark, the last-minute, to do

that. we could be in shutdown mode when he does the state of the union. >> a huge year of accomplishments. passed tax reform and driven isis from their base and he finishes promises that barack obama made and didn't fulfill. the redline in syria and pulled the u.s. embassy and recognized jerusalem as the president of israel. things president obama promiseed to do and didn't do. >> martha: even his critics say when you ad up pluses and mineuses successful. >> they said donald trump was a lunatic who would bring a nuclear holocaust.

he beat his critic's expectations. >> martha: democrats are defiant as to who is to blame for the shutdown showdown. democratic congressman said this. >> the democrats have been ready and willing to set down at the negotiation table and reach an agreement with our republican colleagues. but we will not be black mailed. we will not be black mailed because republicans are unwilling to compromise. >> martha: joining me now senator tom cotton. good to see you tonight. the last word we received is that mitch mcconnell sothe floor again. will we see a vote tonight? >> i hope so. i don't think we should shutdown the government for what the democrats are demanding. there is a bill on the floor that would fund the government for another month and would fund health insurance for poor kids

for the next six years. democrats are saying they will reject that bill because they not only want amnesty for illegal immigrants but don't want to stop unskilled immigrants. i don't think that will fly with the american people. >> martha: give us a sense whether or not there is movement at this moment. democrats want an off-ramp. they don't want this around their necks. >> well, martha, as you have seen, we had a number of democrats in the last couple of hours saying they will vote for this bill. from west virginia and north dakota. there are a lot of other democrats who have to face the voters in 10 months. they don't want to shutdown the government and deprive american citizen citizens of government

deserveses to get health insurance for poor kids. >> martha: graham and durbin thought they were gross to a deal last week. the way dick durbin described it, he said when he saw you in the room he knew something changed. did you pull the president away from the deal that durbin and graham thought they had with them? >> the president realized that senates graham and durbin had sold him a bill of goods. >> martha: did you help him realize that? >> no, i didn't speak to donald trump until we walked into the oval office. the president campaigned on a number of issues. there is no issue that was more fundamental to his victory than immigration and getting an immigration policy that helps the americans who are working.

it's one thing to get a bill pitched on the telephone and another thing to look at the particulars. the president realized he was being sold a bill of good. he won't have amnesty for illegal immigrants without securing our borders and stop future illegal immigrants. >> martha: i understand that. but he made it clear he loves the dreamers and think they will are great kids and wants to find a solution for them to stay here. what are you willing to give on the other side? if you have given in on allowing them to stay which is a concession on the republican side, what do you think democrats will put in that pot to make this happen? >> well, that's right. that's the amazing thing about where we are tonight. the president and most republicans in congress said we are willing to give legal protection to hundreds of thousands of young illegal immigrants here through no fault

of their own. the democrats need to come to the table and offer concessions to secure the border and stop extended family reunification and move towards a merit-based immigration system. most republicans agree with the democrats that we should give legal protections to people who have a daca work permit. >> martha: one last question. there was a poll done. people who responded said if there was a shutdown they would blame republican. they said if it was over daca who would you blame and they said democrats. is that sinking in with democrats? >> i think so. if we have a shutdown it's because the democrats are

unwilling to vote for the spending bill or don't accept a reasonable compromise. >> martha: the ground is shifting a little bit. senator cotton, thank you very much. good to see you tonight. >> thanks. >> martha: as we watch and wait and see what is going down there about the spending bill. another big story brewing on capitol hill. the shocking and alarming memo detailing government surveillance is sending shockwaves through washington. republicans say it reveals proof of the political bias of the fbi and department of just under president obama. there are growing calls tonight for congress to declassify this. it's all over twitter. they want them to make these findings public so everybody at home can take a look at them. >> good evening. some republicans tonight are calling it worse than watergate. another congressman compared it

to kgb activity in the old soviet union. that's ironic because this investigation started out as a probe whether there was russian collusion with the trump campaign. it's morphed into allegations inside the obama administration instead. more than 115 house republicans saw a 4-page memo laying out evidence of the fisa abuse. congressman perry wondered if this happened in america or in the soviet union. these lawmakers say they can't spell out what is in the memo because it include classified info. pressure building for that memo to be made public. release the memo on social media.

here's what we know. nunes told colleagues he has season evidence of fisa abuse by fbi and justice department officials. nunes was referring to obama officials using unverified information put together by a former british spy. simpson testified that the obe justice department asked simpson to turn over information to the obama justice department. that led republicans to declare that he and other top officials may lose their jobs for letting that info to be used to get fisa warrants. >> any american who saw this do you mind would feel like rob rosenstein and bruce ohr need to be fired immediately. they are a threat to the

country. >> conformer trump advisor under surveillance. he lashed out at page. he said hopefully if congress releases the memo, america might learn real facts about the propaganda campaign intended to rig the election. shift says this memo is dismanaged. they -- misleading. nunes could hold a vote. with aicism -- simple majority he could get this made public. >> martha: congressman jim jordan. he read what is calling a shocking memo. i know you are not talking about

the classified information in this 4-page document put together by nunes. it collates all of their investigations. you have read it. do you believe there is a crime in there committed by the doj and the fbi? >> look, what i believe is what my colleagues said and i said. the american people need to see this. we want the journalists in this great country to see this. we want the american people to understand what the fbi did. how wrong it was. and again, we are not allowed to talk about it. the committee can meet today, can meet tomorrow. the majority votes to release this. it goes to the white house. the white house can say thumb's up or down. my guess is they will say thump's up and the american people can see what took place at the highest levels of our fbi and the justice department that should not happen in this great nation. >> martha: what is the plan? why didn't they meet today?

>> i give chairman nunes a lot of credit. he pushed hard and put this memo together. we called for it a week and a half ago. we said make this available to congress. we think once we see it, there will be such a demand and outcry for this to go public, that it will go public. >> martha: it was compared to watergate which was an election scandal in another campaign. if this is worse than that, it would draw a picture of an obama administration attempt to derail the trump campaign. is that what is in these pages? >> i can't talk about the specifics. that's why we are pushing hard to have it go public. think about when we knew a long time ago. the clinton campaign paid for the dossier and the text messages from peter strzok. they said walking through

wal-mart, i can smell the trump supporters. to make sure donald trump was not elected. >> martha: i hear you. that didn't mean you are involved in a conspiracy. >> peter strzok who ran the clinton investigation and interviewed cheryl mills and mi michael flynn. that same peter strzok said i can smell the trump supporters in wal-mart. that same peter strzok whose is deputy head of counter-intelligence. that's stuff we knew. >> martha: alan who was a member of the obama administration who went on msnbc and let's play what she said. >> i was urging my former colleagues and the people on the

hill. it was more aimed at telling the hill people. get as much information as you can before president obama leaves the administration. i game very worried. not enough was coming out into the open. i knew there was more. we have very good intelligence on russia. then i talked to some of my former colleagues. i knew they were trying to get information to the hill. >> martha: their argument was they uncovered this collusion that we have been talking about forever between the trump campaign and russia. they were so concerned with what they have found. they lowered the bar for classified information so more people could get their hands on it. they admitted that in the "new york times" article. they wanted to be sure those tea leaves were still out there so it would not get dropped. is that part of it? >> again, i can't get into specifics. the unmasking, we know that

happened. chuck schumer said if you go against the intelligence committee, they have 6 ways of getting back at you. what do we also know? to date not one bit of evidence that showed coordination between the trump campaign and russia to influence the election. the clinton campaign paid steele who paid russians for that information to influence the election. when this memo goes public it will provide a bigger and better peculiar for the american people to see why the fbi did what they did. >> martha: are all members of the republican committee in favor of the releasing the document? >> that was the vote yesterday to make it available to members of congress. it was a partisan vote. democrats voted against it.

chairman nunes is pushing hard to get it public. we are asking him to make it happen sooner rather than later. >> martha: thank you. setting up a 10 p.m. procedural vote to avoid the schumer shutdown. anything that can be done in the final hours to make a deal and keep the government open? mick mulvaney is up next. >> plus we look back at year 1 of the trump presidency. spicer will tell what he said to the president. >> where was your passion and concern when they all said there was no connection to russia? where was it then. i thought refinancing would be messy. yeah, i thought so, too, but rocket mortgage gave me control of the mortgage process. i lowered my term and found a payment that fit my budget

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>> ♪

>> ♪ >> ♪ >> ♪ >> tomorrow will mark one year since i took the oath of office. i will say our country is doing really well. our economy is perhaps the best it's ever been. >> martha: president trump noted today tomorrow marks the one year anniversary of his

presidency. it's not coming without drama. live at the senate floor where democrats and republicans are refusing to vote yes but there may be a little bit of movement on this. democrats wanted a daca deal to be part of this and would hold it hostage until they got. it i spoke to mick mulvaney director of the management of budget and asked what he hopes to see on that floor tonight. >> i would love to see the bill pass the senate with every single republican supporting it. without bipartisan support it will never pas. you need 60 votes to pass the spend bill in the senate. >> martha: in terms of the economy. there is discussion that this could go on and on. it feels like both side are using this to make the other side look bad. where is the incentive to get this put together? >> we want the government to be open. we don't want to shut the government down.

if anybody wants to shut it down it's the democrats. it's a smart move if they think republicans will get blamed. the president has done a good job in the last 48 hours to prove he is working hard to keep the government open. if it's shutdown, it's called the schumer shutdown. the only person who can shut it down is chuck schumer. how long can it go? i don't think it goes very long. there is no benefit to make the miltary good to work. most of the government stays hope but people just don't get paid. people fighting fires out west still work. you ask them to work with no pay. that's not fair. you hope the democrats will remember what they said in 2013. >> martha: you did something never season in washington. you said your department has enough money and you don't need anymore money in the budget. you had a lot of successes with the economy over the course of

the year. when people look to 2018, you can chime in on the successes. however, what are your concerns in 2018? >> too good. it will be hard to keep that going. with apple makes announcements and companies gives raises and bonuses. the long-term stuff we said would happen under the tax bill with money back into the country. those are tremendous success stories. the stock market is another success story. we had a great 2017. high concern for 2018 how do we keep it going? >> martha: it can't go on with that forever. now the tax cuts are here. >> what i don't think is baked

in the cake, not in the stock market numbers or the gdp, the impact of the business decisions now that the tax law kicked in. you saw businesses give raises, but it will take time for businesses to say i want to build a new factory or i will move to the united states. we have not talked about the change in the regureguleatory climate. he will reap benefits for a long time. >> martha: this is enthusiasm among business owners in this country. >> what is not to be enthuseiastic about, about? a lot to be excited about if you want to work in america.

>> martha: mick mulvaney. thanks for being here tonight. we are watching the senate floor and looking back on year one of the trump presidency. hard to forget what has been a revolving white house door of who works for the president. we sit down one of the most early members of the trump tale. -- team. sean spicer was battling the press corped and "saturday night live." >> this was the largest audience to witness an inauguration. >> report the facts. republicans, and democrats, i am sorry that disgusts. >> hold on. >> i am trying to answer your question if you can calm down. if the president puts russian salad dressing on his salad, that's a russian connection.

>> martha: sean spicer joins me tonight. >> look, he was an honor to do. it's more relaxing having the white house in the background than being in the briefing room. i am cherish the days have but it's great to watch the briefing and not give it. >> martha: you had a president who broke the mold. >> a lot of molds. >> martha: you know your message will be different by the time you get off the podium. >> you're absolutely right. donald trump ran as an agent of change that will come in and shake washington up. love him, hate him, there is no question he fulfilled that mandate and brought real change to how washington does business and fought for the forgotten men and women who he based his campaign on. >> martha: do you keep in touch? >> do i. >> martha: what did you talk to

him about last night? >> i told him i was writing a book. >> martha: was he concerned about you writing a book? >> no, i always told him it was an unbelievable honor to serve. there is a story to be told. one of the reasons i wanted to write a book there are so many instances that occurred. people just saw one end of the camera or a "new york times" reporter or some false cnn story. i want to walk back through the campaign and say this is what i was going through and shed light on things people did not see on media's slanted lens. >> martha: do you say if i was jumping in there today i would get it? >> that's a great question. i think we approached or i did the job from a traditional standpoint understanding we had a non-traditional president. a lot of the norms and practices

were not what he was about. he said to the american people i will bring change. i think we should have looked at the beginning and say this won't be business as usual. let's adapt. >> martha: in terms of the dynamic and the people at the white house. general kelly channeled things differently. you can't just walk in. you have to have an appointment. there are stories that say the president doesn't love that arrangement but goes along with it. it streamlined things. do you think that he issue have been better at organizing who gets in and out? >> we could have done things differently, but it was new. there was so much new. there were so many personalities and things we wanted to get done. never mind a negative media corp. it's tough to look back and say

that. there are a lot of things if i knew now, we could have done differently. i think each in sarah sanders's case she is doing a bang up job. she had the ability to look at a lot of the things i could have done better or differently. i think she hem -- embraced the role. >> martha: now that steve bannon is gone there is discussion that scaramucci might come back. do you think he should get a role again? >> that's up to the president to decide. i think the communications under sarah sanders and hope is doing a good job and communicating. with the tax bill they did a really, really good job. they branded this the schumer shutdown and making sure people understood what the president is fighting for, for the american people. i would sigh keep going. it's working really well.

at the end of the day, i will let the president make the decision about his counsel. >> martha: thank you. democratic leaders behind closed doors are trying to decide if they will keep the government funded after midnight. perhaps they don't want this to be part of their legacy. the blaming on both sides. tom perez the chairman of the democratic party sits down with us next. >> trump-care, i would call it i don't care! those republican leaders and president trump don't give a [bleep] about the people they were trying to hurt. do you need the most trusted battery for your son's favorite toy? maybe not. maybe, you could trust he wouldn't leave the upstairs water running. (woman screams) or, you could just trust duracell. ♪

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of 2015 to announce he would run for president and after the election, his biggest critics have insisted he would fail. watch this. >> i personally am convinced that he is going to fail. not because of people like me who would like him to fail, but because his ideas that guide him are inherrent ly won't get a victory. >> we won't suffer through 4 years of donald trump. when you have a narcissist he will break laws. >> martha: that's scary. david was trump's deputy campaign manager and richard fowler a talk show host. both are fox news contributors.

welcome. we remember all of that. some people think it's been a terrible year. some people think it's been a great year. >> of course. >> martha: paul told us the market would cease to exist. it would break and bottom out. that's not the case at all. >> no, i give the president credit for the stock market gain. he gave wall street what they wanted. they wanted less regulations. the question will wall street and corporations create jobs for americans? we are seeing signs some are doing it. others are laying people off. i give the president credit for the stock market gains. there other things we did very wrong. we will talk about that as this segment goes on. >> this president has been leading the way on the economy. he's done an amazing job. he is a businessman who ran a lean business in the trump organization and running the

government very much like that. i am so excited for all americans. their 401-ks are recognizing the brilliance, the genius that is president trump's economic plan. >> martha: the failures, richard? >> a couple. he promised the american people a couple of things. to bring the country together. i think every poll and most americans would say the opposite. the country is more divided than ever. you see it with the government shutdown looming. >> no, no, no. >> [overlapping talking]. >> you can't blame it on the democrats when republicans have control of the house, the senate and the white house. there one president, period. he promised he would bring this country together. we have seen the opposite. >> under barack obama we saw division. >> that's fair. but he is no longer president.

>> martha: the one thing that -- there are a lot of things that don't match up. we don't have a true sense of what the country thinks about the presidency. when you look at the polls. he is at 39 to 40%. when you look at the "new york times" editor and cnn did a roundtable of swing voters who were enthusiastic. i am wondering if the polls were like they were during the campaign and we don't have a sense of what people feel. >> i think there are a lot of people who don't admit they support president trump. i blame the leaders of the democrat party who have no ideas for the american people and have not had any for years. they attack and attack. that's all they have done for one year. not one time when president trump invites them to the white house, they stick it to him. they lie. they go in there and they don't

want to make deals at all. you look at what is going on today. >> david, first of all that's not true. chuck and nancy made a deal with the president to keep the government open last time. they raised the debt ceiling and kept us from faulting on the debt without republicans. before you can criticize democrats, we are not in control of either -- >> [overlapping talking]. >> wait a minute. we are the minority in the house. we are a minority in the senate. we don't have the white house. >> martha: you are going forward. the next years the mid-terms and the reflection on this president. estimates will are that democrats will pick up 30 to 40 seats. do you believe that? >> no. i think the economy will be booming in november. the jobs you are talking about, richard, will have an impact.

the unemployment rate will go down and the stock market will go up. people will understand it's the economy, stupid. >> i think that theory only works when you have a candidate who is likeable. any time a president's approval rating is below 40%, he loses 20 to 30 seats. >> martha: david gave the president a d and richard gave him an a. >> [laughing]. >> martha: coming up -- going to a break here guys? tonight on capitol hill. fox news catching senator graham going into chuck schumer's office. what are the democrats doing? tom perez will weigh in next. it! anyone ever have occasional constipation,

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the government shuts down at midnight tonight >> mr. president, sit down with all of the people who want to resolve these issues for the american people. mr. president, do your job! >> there is absolutely no reason on god's green earth for the democrats to insist on shutting down vital government services for all 320 million americans. >> republicans control the u.s. senate. they control the u.s. house. and a republican is in the white house. please do not shut the government down! >> martha: tom perez is chairman of the democratic national committee. welcome. you heard the set up. the suggestion is that from your side that they have all of this control, they ought to be able to keep it open. but they need 60 votes and only have 51 republicans so they

can't do it without democrats. >> this unprecedented. there is has never been a government shutdown when they control the house and the senate and the white house. the thing that frustrates me there was a bipartisan deal that senators graham and durbin negotiated. if you brought a clean daca bill up in front of the house and senate, it would pass comfortably. the overwhelming percentage of the american people support it. >> martha: that's not what we are hearing. we are hearing they had the sketches of a deal between graham and durbin. we talked to senator cotton about this. when they got back in the room both sides got heat from their

base they were not getting enough. that backed everybody back into the corners. does this deal tonight has only a couple of things want funds the government and allows for the children's health program to go forward for 6 months. what don't you like in the deal? >> as the defense department said today, we can't be governing by one week at a time. when you look at all of the other issues -- >> martha: but what don't you like in the deal that the house passed? >> it doesn't deal with the issues of relief for people who are victims for hurricanes. doesn't deal with the opioid epidem epidemic. >> martha: it's not about daca? >> it's about many things. >> martha: everyone was told they want daca or nor deal. >> daca is a big part of this.

the failure of the republican senate, house to not fund the government. >> martha: they said we will do it with the children's health program. >> in another week you have another empasse. >> martha: you are say figure you give us defense spending we want more spending -- >> we want to make sure we address the issues. >> martha: so there was no deal between graham and durbin? >> neither of us were in the room. [overlapping talking]. e here's the bottom line. >> martha: do you want a deal? >> absolutely. last may if you look at may 2nd on the president's twitter account he said the government shutdown would be a good thing.

he should not have said that last year. it was reckless. >> martha: why is it not reckless now? republicans don't want a shutdown and you say it would be reckless? >> i said the ball is in the republican's court to avoid a shutdown. >> martha: the house passed the bill, right? this continuing resolution including the chip program. the white house said they would sign that bill. >> it's within the republican leadership's ability right now -- >> martha: if they add opioids? >> to do their job is what i am asking them to do. to make sure the dreamers are protected. it's about daca and many other things. it's about the things that are basic to how we live and communicate. >> martha: a lot of federal workers and military folks hear that. you are saying we can't continue

paying us because you want to cover people who are here illegally? you hold their paychecks hostage to cover the daca kids. is that right or not? >> we want to make sure we pass the budget that addresses all of the functions and responsibilities of government including making sure that we are providing adequate funding for opioid addiction and for victims of hurricanes and funding for the dreamers. >> martha: thank you. i am out of time. a quick break and we'll be right back. ( ♪ ) only tena intimates has pro-skin technology designed to quickly wick away moisture to help maintain your skin's natural balance. for a free sample call 1-877-get-tena. for a free sample can make you feel like noyour day never started.st get going with carnation breakfast essentials® high protein drink.

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whitewater and the mack renna was sweeping dance floors. stay tuned for the breaking coverage of the shutdown. tucker is up next. >> ♪ >> ♪ >> tucker: welcome to tucker carlson tonight. a confidential top secret government memo could offer proof that the obama administration did spy on the trump campaign. donald trump jr. will join us here on that and more. plus, big news today. news that may shape american history going forward. the state of california has ordered its citizens to hinder federal law enforcement. to disobey federal law. the attorney general of california will prosecute american citizen who refuse to do and