>> trace: a race against the clock in thailand where the joy has turned to dread. families thrilled to learn the soccer time survived nine days in a flooded cave. now realizing the rescue is just getting started. ahead, what comes next and why it could be very difficult to get them out alive. president trump prepping for a big week overseas meeting with some of our country's closest allies. they're already on notice. we'll tell you what the president is demanding and how european leaders are responding. happy birthday, u.s.a.! this fourth of july we'll show you how a wounded american hero and his family finally got some

independence of their own. that's ahead on this hour of "shepard smith reporting." i'm trace gallagher in for shepard smith. rescuers racing against time in rising water to save a boy's soccer team trapped in a flooded cave in thailand. the 12 boys smiling for the camera and re-assuring the world they're healthy. there's major concern their safe spot could be under water because of heavy monsoon rains. the boys and their coach have been stranded in the dark wet cave for nearly two weeks after a field trip turned into a nightmare. thai navy seals are in the team teaching them how to scuba dive in case the cave starts filling up and they need to escape. some of these kids are just learning how to swim and the way out is dangerous even for the expert divers. greg palkot is live with more.

greg? >> hey, trace. i think the best news that we can present to our viewers is that in fact these kids are in very good shape. considering what they've been through. new video shot by those thai navy seal differs or really spear-heading this operation shows them smiling and introducing themselves to the camera. remember, it's 12 young boys, 11-16 as well as their 25-year-old soccer coach. they've been underground for 11 days. they got food today, real food. they didn't have food for nine days and medical treatment. there's a doctor along with the other navy seals treating the minor injuries they have. they were playing soccer near a cave 11 days ago and went down in the cave. heavy rains and flooded the cave. trapped them 2 1/2 miles down. the new videos wednesday seen by

the families that are rough on top. they're relieved but they know there's a big challenge ahead, trace. >> trace: yeah, big challenge what are the difference rescue operations they're considering right now? >> yeah, there are several possibilities. none of them are good. the one that they're really focusing on is getting these kids to dive their way out of the cave. that is very tricky. yes, they practiced with the divers to wear the mask to use oxygen equipment. they don't know how to swim and don't know how to dive and will have to swim out through a half a mile of water inside the cave. the water is being pulled out to some degree by the rescue team and the soldiers are working on top to practice their own moves. it could be risky. the other two options, to drill a hole down through them, very time consuming and also waiting

until the rains stop, the water goes down and they can come out. that could take months, trace. that's why they're looking hard at the risky option number 1 as more rains are predicted by the end of the week. >> greg palkot live. president trump wishing america happy birthday on twitter. he posted a video message and tweeted "our country is doing great." the president getting ready for a big trip next week. he flies to brussels to meet with nato's allies and then he heads to finland with vladimir putin. rich edson at the white house. rich? >> trace, the president wants more allies to spend more on defense. it's a point that he's been making since before he was elected. the previous administrations have complained about allies spending on defense. though none so publicly as this

one. the president has written several countries a letter complaining about that. in 2014, countries agreed to spend 2% on defense and only a handful do so. >> he wants other countries to step up. they have a commitment to meet the 2% threshold. some could do that by tomorrow and he's asking they step up and be a part of the solution. so more burden sharing instead of putting the pressure on the president to carry the way. >> angela merkel says her country will spend more. compared to what others do, it's not sufficient what we spent. that's why we have committed ourselves to increasing our defense budget to up to 1.5% of our gross domestic product by 2025. the president says he looks forward to the upcoming nato summit and will emphasize the importance of that contribution that nato makes to american and

european security. as nato faces continued threats from russia, president trump is scheduled to meet with russian president putin in finland after the nato summit. plenty of differences between the united states and russia. russia violating a cease fire in southwest syria, continued support of the assad regime and continued possession of crimea that was once a part of ukraine. trace? >> rich what do we know about this report that the president asked about innovating venezuela last summer? >> yeah, this is a report from the associated press claiming the president was likening the situation in venezuela and asking if there were similar military options available like in panama in grenada in the 1980s. that's according to one official familiar with the conversation. the report says there was no indication the president was prepared to order an invasion plan. venezuela is in a economic

crisis and nicholas maduro has consolidated power and the united states continues to sanction that regime. >> rich, thank you. more on president trump putting nato allies on notice ahead of their meeting next week. let's bring in john bussey, the associate editor from the "wall street journal" and a fox news contributor and happens to be working for the journal in a nato country right now. he joins us live from madrid. hope you're having fun. the question is anybody at all surprised that president trump is 16edding out these letters, telling the nato allies that they need to get more skin in the game? he doesn't like nato, he doesn't like nafta. none of this is surprising anybody, correct? >> yeah, that's probably right. it's not surprising, but that doesn't mean the europeans are not bristling at it.

the letters are frank, to the point. they're not really bullying. they're not unreasonable. if you read michael gordon's piece. he goes through the language being used. it's the president getting more intemperate about how much the nato nations are contributing to the common defense. this is important to americans. nato has been a bulwark of american interest abroad. they've been in afghanistan, in the war on terror. remember article 5 that says that any attack on a nato member is an attack on the group as a whole and the others will come to the defense of those that are attacked. that article 5 was invoked by the united states after 9-11. so it's a group that is very important to us. all that the u.s. is saying is that you guys are not prepared to be part of an effective fight if you do not spend more on your

military. >> trace: so is your assessment this is out of bounds for the president? even some of those nato allies are saying they need to step up. is the president out of bounds or is it just bad policy and bad optics? >> well, may not be bad policy. isn't from the white house's standpoint. the optics of it have to be taken in context. because this is happening at the same time that the united states is in a trade spat with its european allies over aluminum and steel tariffs. it comes at a time when the united states is pulling out of the iran deal. the rest of the nations that were part of that deal want the stay with it. the u.s. is pressuring those nations to essentially withhold business from iran and even discussed the possibility of sanctioning allied companies that do business with iran. there's a lot of pressure on our allies at the moment. the allies are not feeling like

allies. that's reflected in the press here and on media and the magazines. there's articles throughout the press in europe that is questioning the intent of donald trump and worried also about this upcoming summit with putin. they're worried that trump might give something away that they don't want given away. >> trace: i want your take on this pattern. he went to the g-7, criticized the allies and met with kim jong-un and now he's going to this nato and criticize the ally as then going to meet with putin. there's a pattern emerging in this. >> exactly. >> trace: john bussey, good to see you. enjoy the fun part of the trip in europe. thanks, john. meantime, we have a fox urgent. house minority whip steny hoyer is in the hospital with pneumonia. the 79-year-old congressman is a

democrat from maryland. he was admitted yesterday to a hospital in washington and is now on antibiotics and resting. hoyer is expected to make a full recovery and looks forward to getting back to work. again, house minority whip steny hoyer, 79 years old, in the hospital with pneumonia. updates as they come in to "shepard smith reporting." less than a week to go until the judge's deadline for the feds to reunite all separated families. so how is that going? we're live at the border with more next. is back! with lobster and shrimp together in so many new ways. like new cedar plank seafood bake, roasted to perfection. or new caribbean lobster and shrimp. but hurry in. this event ends july 8th. come hok., babe. nasty nighttime heartburn?

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>> trace: federal workers have less than a week to reunite immigrant parents and kids under five years old separated at the border. a judge set the july 10th deadline. the health and human services secretary said the agency that locates the kids could find them within seconds. every person is assigned an i.d. number. but reuniting families is much more complicated. let's go to casey stegall from tornillo, texas. casey? >> trace, we're hearing the same

thing. federal workers speaking to multiple news outlets on the condition of anonymity saying that they have received no formal instructions or marching orders on how to proceed with these reunions. mass confusion is how many are calling it. once the federal injunction came down, all kids separated from their parents had to be reunited in 30 days, 14 days if the children were under the age of 5. so refugee office case workers say they're under extreme pressure and working around the clock to try to track down the family members in order to comply with the court. then you had a republican congressman in colorado yesterday visiting a detention center in aurora. he too said that he got the same feeling and the same messages from worker there's and he

wasn't so confident that they would meet the approaching deadlines, trace. >> a lot of work ahead clearly, casey. we're hearing about some of the parents being reunited with their kids, right? >> right. it's hard to track the numbers down, frankly. hhs estimating 2,300 children were separated at the border. they tell us 500 or so have been reunited with their families, like this woman from guatemala that met up with her children in new york. she was separated from the kids at the texas-mexico border in may. the 29-year-old was sent to a detention facility in arizona, her kids to new york. following the release, the mother was drove to the big apple for the reunion. listen. >> since they took them away, i

said i will fight for you and find you. >> when i saw them, i hugged them and said i would get you. i'm here. >> the mother's lawyer says her client superior from guatemala, fleeing violence there and seeking asylum with her three kids here in the u.s. trace? >> casey stegall live in tornillo, texas. it's been confirmed that russia did interfere in the election to hurt hillary clinton and help president trump. the president repeated the denial of russian meddling but he says he will bring it up with his summit with putin. we'll talk to strategists next. you shouldn't be rushed into booking a hotel. with expedia's add-on advantage, booking a flight unlocks discounts on select hotels until the day you leave for your trip. add-on advantage. only when you book with expedia.

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>> trace: just in to fox news, a couple is ill after getting sick from an unknown substance. not far from where a russian spy and his daughter were poisoned in march, a friend of the couple said they were foaming at the mouth before they were taken to the hospital. it's unclear in the two cases are linked. scientists are testing the mystery substance to see what it is. it happened southwest of london eight miles from where the former spy and his daughter got sick. british officials blame moscow for that situation and british officials deny any involvement. members of the senate intelligence committee say they agree with the intelligence community's findings that russia did meddle in the 2016 election to help president trump win the

white house. special counsel robert mueller is also looking into moscow's interference in the 2016 presidential election and possible collusion with members of the president's campaign. the white house and russian president putin have denied this repeatedly. let's bring in our political panel, democratic strategist alex carren and republican strategist, peter van borist from magnum strategies. alex, you first. we want to make sure that we talk about robert mueller. the two are not connected. you think president trump would say there's meddling. doesn't incriminate him what they're saying. >> no. a great point. i think it's a great opportunity for the president and some republican leadership to build some consensus here.

you hit the nail on the head. special committee says the intelligence community got it right. they need to latch on to that. there's consensus to be build that russia meddled in our election. whether there's collusion is a different issue. >> and whether it worked. we don't know if it worked. yes, there was collusion says the agencies -- not collusion. yes, there was interference. we don't know if it worked. >> whether it worked or not is important that we need to look at this and say that russia or any other countries should not meddle. let's remember, who was in power in 2016? which administration had the onus to go stop that? it was the obama administration. like you both said, it's important to compartmentalize meddling in the election and collusion. those are two separate things. the media confused them on purpose. >> so alex saying, if it wasn't collusion, somebody has to be

blamed for this and it was the obama administration is. that a fair assessment. >> there's enough blame to go around here, including obama administration for not taking russia serious enough. now trump has to take a stand. let's take stock of what happened. you have senate democrats, senate republicans, house democrats and the entirety of the intelligence apparatus saying there was meddling. we have the president of the united states still casting doubt on that. >> trace: he makes a good point. it's like these things cannot be interfered with and there's all of this evidence and all of this agreement that there was interference. why doesn't the president say you know what i'm going to do? he said he's going to bring it up with vladimir putin. the first thing i'm going to do, tell him this is not acceptable. if he's not involved in this, it's got to be not acceptable. why all the denials? >> a lot of the denials is first of all, he may not have known

when that came out. it's important like you shade to compartmentalize this. it's very important when he meets with putin to do that. i think what he's been concerned about is people view this russia thing as one thing. they view collusion and interference as the same thing. when he's speaking on that, he's speaking to the collusion thing. any time we bring up russia, the democrats try to make it about collusion when there's no ed of that. >> trace: it's a fair point. he's fighting this thing since the day before he was inaugurated. so it comes down to president trump saying, if i give them an inch on this russia investigation, if i said yeah, there was meddling, the next thing it was meddling and collusion. people don't understand that these are separate things we're talking about. >> the american people are smart. i think it's a loss opportunity for trump and republicans if they don't team up and see that

there was interference in our election. foreign entity that has a history of being hostile to the united states is a nonpartisan issue. we should join together and decide this is an issue that we can tackle together. if trump doesn't do that, republican leadership does don't that, it's a missed opportunity. >> trace: and vladimir putin is not going to fess up to this. we talked about the poisoning in london. all of this evidence saying this is russia. the poisoning we don't know. putin says it wasn't united states. he will always say that. maybe it's time for the president to say we need to be on the same page here when it comes to russia. >> absolutely. everybody needs to be on the same page. this meeting with putin is a huge opportunity. i would encourage like he encouraged republicans, i'd encourage democrats, inless there's evidence of collusion to drop this narrative and say let's make sure if interference didn't happen. we haven't seen it.

they're the ones confusing the narrative. i don't think republicans have. >> trace: not nearly enough acrimony between you two. we need more spice here. final world, alex. anything? >> it's very dangerous for the hold out republicans, trey gowdy and others to keep beating this drum there was no interference. they would be better off strategically to get on board if there's collusion. let's let the investigation play out. >> alex, peter, thank you. great to see you. >> trace: back to the top story. we have live pictures from thailand that at 2:30, rescuers are trying to figure out how to save this soccer team trapped in a cave. we'll go back to thailand and explain why getting them out alive is so difficult and so dangerous. that's next. minor accident - no big deal, right?

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>> trace: updating fox's top story, a boy's soccer team alive but still trapped deep in a flooded cave in thailand. lisa holland has been outside the cave covering the rescue for sky news, our sister network. >> yes, we've seen the relative dry here in the last hour. many have been saying prayers for the safe return of their children. to put it strongly, after the elation of the boys being found and located and all alive and seemingly doing well, the reality has sunk in that it's not so easy to bring them out and not going to happen any time soon. people are optimistic that they might come out in the next couple days. but nobody can guarantee that. the truth is that there's a

number of plans on the table. scientists think this idea of getting the boys through the flooded cave by divers, that is potentially not a viable option. hugely risky. it's a terrifying experience. it's like -- this diving, cave diving is very complex. people can't see further than their hand in front of them. they have to feel their way around. the passages are narrow in places. they can't be 100% sure something won't go wrong. the option remains on the table. they will continue to be given lessons in how to put on the mask. trying to think of a way to put some kind of communication there

so the children with talk, which is more re-assuring than being dragged along a rope. if they can reduce the flood levels, the boys can walk out. they're looking to get in the cave any other way. lots of options on the table. one thing they talk about, the chaos, the mayhem here and everything is being done to bring the boys out. the rescue effort is in a frenetic pace. oxygen is being replenished. many are building gravel traps to get in and out more easily. and the thailand prime minister

says everything is being done humanly possible to get them out. >> trace: we'll have more updates from the scene. remember, as you look hat this whole thing, at some point in time if they swam the kids out, they would be on their own. even though they have divers with them, there's only room for one at a time. as we get more details about the coach and the boys, we'll bring them to you on "shepard smith reporting." meantime, new york city set to have the largest fourth of july fireworks show in the country. the nypd stepping up security on the ground and the sky and the water. millions expected to show up for the fireworks display where pyrotechnicians will shoot off tens of thousands of shells from ten barges.

bryan llenas has more. >> happy independence day, trace and to our viewers, this is the largest fireworks display in the nation. we're talking about 3,000 shells that will be fired from those seven barges along the east river a minute. 75,000 total. 25 colors will light up the sky. the fireworks will reach higher than the statue of liberty and more than 2 million people will line the streets, this is a symbolic event and the nypd is here to protect it. there's no specific credible threat to new york city according to the nypd. there's 6,000 police officers in uniform that will be here to protect the event. there's vapor wake dogs to sniff out bombs along the crowd. they're trained specifically to look out for suicide bombers. more than 100 sand trucks have been placed to protect against

vehicular attacks. >> our team from the intelligence bureau has made almost 100 visits to locations along the river. helicopter rental locations, truck rental locations reminding ever to be attuned to suspicious activities, suspicious persons and how to report that early on. >> and speaking of vehicular attacks, trace, remember it was last october here, a few months ago, that ryder truck was rented and used to kill eight in downtown new york. trace? >> what about security around the country? what do we know? >> we know we have the two other big shows in las vegas and washington d.c. similar precautions are being taken just as in new york city. in cleveland though, in other local communities around cleveland, there's heightened security after the fbi arrested this man, demetrius pitts for

plotting to attack july 4th celebrations in cleveland. an undercover fbi agent caught him taking photos of a potential target in downtown cleveland. on top of that, in chicago, there's an increased security presence at major transportation hubs as well as up to 50 new high definition cameras that have been put in place in those transit hubs. trace? >> bryan llenas live for us in lower manhattan. thank you. nearly 60 major wild fires are burning across the west destroying homes, forces thousands to evacuate and cancelling fourth of july celebratio celebrations. maryann rafferty has more. >> the hot temperatures are not helping firefighters at all. south of denver a raging fire has destroyed more than 100 homes in the colorado mountains. families were planning to

celebrate the fourth of july and now being forced to evacuate. the spring fire in colorado covering 123 square miles, five times the sizes of manhattan. in utah, residents forced to leigh and in shock at the possibility of losing homes. in california, nervous home o owners are keeping an eye on the flames. >> very scary. one minute it seems like it's going away and the next minute it's flaring up. we're on watch. >> so far 2,500 residents have been told to evacuate as the so-called county fire threatens more than 900 building there's. >> and health warnings in northern california. >> yeah. there's smoke and ash being sent to some areas in northern california. that will be really hard with so

many people planning outside activities for the forth. the wildfires have burned 3,200 square miles in the u.s. fire crews are facing an uphill battle with the hot temperatures and the dry windy conditions. a break in the weather would help things but doesn't look like that will happen any time soon. >> and the real fire season has not even started. so the fall and stuff. it could be a long, hot summer. thanks, maryann. >> thank you. >> trace: we have a fox news weather alert. folks in houston can't catch a break. heavy raining causing flooding and making it difficult to get around. forecasters say 2-4 inches of rain fell earlier today. the city is still recovering from hurricane harvey which cost more than $150 billion in damage last summer. houston is under a flash flood watch for at least another hour. could go longer. keep your eyes open if you're

down there. one of our founding fathers predicted we would be celebrating independence day on a different date. we'll take you inside the halls of congress for a little american history trivia. and a marine celebrating independence in more ways than one. for this wounded warrior, the road to recovery leads to a new and improved home. the story you will want to see this independence day and it's next. ♪motorcycle revving ♪ motorcycle revving ♪motorcycle revving ♪ motorcycle revving ♪ no matter who rides point, ♪ there are over 10,000 allstate agents riding sweep. ♪♪ and just like tyrone taylor, they know what it takes to help keep you protected. are you in good hands?

>> trace: one marine celebrating a new kind of independence this july fourth. major eric burkett was serving his sixth deployment when his helicopter crashed. his legs were amputated. now he chases after six kids in a wheelchair and routine that

most of us don't think about like flipping on a flip switch is a little bit easier. jennifer griffin has more. >> april 11th, 2012, major eric burkett's osprey tilt rotor aircraft crashed. he was one of two to survive the crash. >> that is off of one of the prop rotors from the v-22 that crashed is. on the back of that, i don't know how many marines signed it. >> on flag day last month, the gary sinise foundation handed him the keys to a wheelchair accessible adaptive smart phone. by august, the foundation will have built and delivered 50 smart homes and plans to build another 10 to 12 each year if they receive enough donations. >> the idea of getting up and move around the house freely. >> how beautiful. >> without thinking about the

logistics of should i use a chair or crushes or sit down and choose to stay there the rest of the evening until i make my final move towards the stairs to go to bed. all of that is gone. >> i want to say a thank you to everybody that came out, to everybody that participated in the project, prayed for us, with us along the way. friends, family, friends we made through the adventure. thank you. >> on this independence day, we celebrate major eric burkett and his family as they raise the flag. the story of resilience and the story of those that have given back to those that serve this nation. >> trace: jennifer, i know you reported on major burkett at walter reed in 2014. what has his journey been like since then? >> when i first met major burkett and his family, they had

four children that they were raising in a tiny room at walter reed. he just hat his first leg amputated. he was preparing to compete in the invictus game for wounded warriors. he won a gold medal for archery and the para olympics as well. he was a master archer before his crash. he and his wives have had twins and major burkett had a second leg amputated earlier this year. now they're settling into their home near pittsburgh. i spoke to melissa. she says her son takes friends crawfishing behind the house and in the new dream home, her husband, eric, cooked a meal for the first time since being injured. a major step on his road back to independence, trace. >> trace: when a fantastic story. jennifer griffin, good of you. happy fourth of july. thank you. >> thank you. >> trace: we could have

celebrated america's independence a couple of days ago. a painting in the halls of congress help tell the story of what happened and why we celebrate today. our senior capitol hill producer chad pergram has the details. >> the most prominent painting in the u.s. capitol is of the declaration of independence by artist john trumbell. the paintings hung in the rotunda since 1826. the painting depicts a meeting on june 28, 1776 when they presented the first draft of the declaration of independence to the second continental congress. the continental congress voted for independence on july 2. john adams thought every one would remember that day as a national holiday. but they hadn't crafted a document explaining the move. sound familiar? >> we have to pass the bill so that you can find out what is in

it. >> so they wrote it up, gave it an edit and printed it july 4, 1776. most signed the document on august 2, 1776. there were, however, some stragglers signing in september and october. the public didn't see the document until january 1777. chad pergram, fox news. >> now you know the rest of the story. coming up, we'll take you on board one of the navy's newest boats. we'll have a live report as we think of those in the military that defend our freedom on this independence day. my day starts well before i'm in the kitchen. i need my blood sugar to stay in control. i need to shave my a1c. weekends are my time. i need an insulin that fits my schedule. ♪ tresiba® ready ♪ (announcer) tresiba® is used to control high blood sugar in adults with diabetes. don't use tresiba® to treat diabetic ketoacidosis, during episodes of low blood sugar, or if you are allergic to any of its ingredients.

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>> trace: every fourth of july we celebrate our independence and those in our military. anna kooiman visited a navy base and got a look at the newest fleet of boats. she joins us in front of the u.s.s. monterey. >> hi, trace. anna kooiman here so happy to be your proud american correspondent. we spent the greatest part of this holiday on the u.s.s. monterey. we've hung out with the 350 sailors and it's not the only majestic vessel in the flood. we'll show you one of the latest and greatest here. ♪ this mark 6 patrol boat is one of 12 in the u.s. navy. it's not as big as a destroyer but don't let its size fool you.

packs a lot of power. >> so commander, you say hot and heavy, short and sharp. what do you mean? >> we eliminate the threat and follow behind and get out of there. the primary mission for us is to ensure the safety of the vessels. >> so when these boats are deployed, what do they bring? >> we have the mthb, the 50-pound machine gun. one of many weapons on board. another benefit of serving on this particular vessel, leadership opportunities. >> very early in their career. can apply to be captain of one of these boats. >> with one of crew, the sailors get sense of comradery to the

time they deploy. they debt trained as a crew, deploy as a crew. once they fire on all cylinders, nothing can stop them. >> i'm in charge of keeping the eyes on the water and keeping my eyes on the charts. >> i'm basically controlled the short range and long rainge. >> what do you think of transferring the reins over? >> let's go. ! . >> all right. thank you so much. this has been a blast. can i join the crew? >> it's debatable. i appreciate you coming out. >> thank you. >> at least i got the hat and some sunglasses, too.

we hope we helped you get in the spirit for independence day. send us your pictures on social media. use can #proudamerican and we'll be back and sharing images and also on social media. back to you. >> trace: anna kooiman live in norfolk. happy independence day. thank you. hot dogs are serious business on the fourth of july. so serious, there was a rebound at the annual hot dog eating contest. that is next! and back pain made it hard to sleep and get up on time. then i found aleve pm. the only one to combine a safe sleep aid, plus the 12 hour pain relieving strength of aleve. i'm back. aleve pm for a better am.

(smoke alarm sounds continuously) (smoke alarm sounds continuously) casey? mom? (little girl coughing) wake up honey. (coughing) what's going on? we gotta go. stay low. (coughing) (coughing) >> trace: the winners at nathan's annual hot dog eating contest both defending champs. here's the highlights. joey chest nut broken his own records, 74 dogs and buns in ten minutes. the judges counted 64 but they

forgot and entire plate and then there's super eater mickey suto. she fell short of her record from last year. have a very happy fourth. i'm trace gallagher in for shepard smith. see you back here tomorrow. charles payne next on "your world." >> as we celebrate the red, white and blue, we're keeping an eye on your green and how washington is battling over it right now. hello. i'm charles payne in for neil cavuto. happy fourth of july, this is a special edition of "your world." fox on top of what could be an over-the-top trade fight and every day americans could be paying for it. president trump isn't backing down from tariffs against canada and china. those countries are taking aim at some u.s. products and that's not good news. but here's what is. the tax cuts. who will win out? let's ask lindsey