Fox News "Sunday Morning Futures" - Transcript: Rep. Michael McCaul on Iran deal flaws, immigration policy

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Date: May 12, 2018

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MARIA BARTIROMO, FOX NEWS HOST: Welcome and good Sunday morning everybody. Happy Mother's Day to all my heroes, mothers everywhere. President Trump takes charge of foreign policy dumping one nuclear deal with Iran while looking to craft another with North Korea. Two powerful GOP Congressman with us this morning coming face to face with officials at the Justice Department. Then some red-state Democrats are feeling the heat to support the President ahead of the midterms. Good morning everyone, thanks for joining us. This is 'Sunday Morning Futures.' President Trump pulls out of the Iran Nuclear Deal ahead of a historic summit with Kim Jong Un. This as many tension flare up and terror strikes again in Paris. What are the biggest threats to U.S. national security right now? We will hear from former Vice President Dick Cheney in my exclusive interview this morning. Plus House Homeland Security Committee Chairman Michael McCaul and Israel's ambassador to the U.N. Danny Danon is with us this morning. House Intelligence Committee Chairman Devin Nunes meanwhile and Trey Gowdy headed to the Department of Justice for information about a top secret intelligence source involved in the Mueller probe. They didn't necessarily get what they wanted but still called the discussion productive. Congressman Darrell Issa will react. And Senator Joe Donnelly becomes the second Democrat to support Gina Haspel's nomination to be CIA director. But did he really have a choice in a state Trump won by a landslide? Our panel will discuss that as we look ahead this morning on 'Sunday Morning Futures.'

President Trump calling out Tehran over its military budget and pointing to it as proof it never meant to hold up its end of the bargain regarding the Iran nuclear deal. The president yesterday tweeted that Iran has boosted its military budget by more than 40 percent since signing the deal which he says is an indication the country never intended to curve its nuclear ambitions. The president withdrew from the 2015 agreement last week but says that he wants to make a new and improved deal that will benefit both sides. Meanwhile, the decision is sparking outrage in Iran with one official saying that the country will prepare for industrial-scale production of nuclear fuel now. Joining me right now is the House Homeland Security Chairman Michael McCaul. He's also member of the House Foreign Affairs Committee. And Mr. Chairman, it's good to have you on the program this morning.

REP. MICHAEL MCCAUL, R--TEXAS, CHAIRMAN, HOUSE HOMELAND SECURITY COMMITTEE: Thank you, Maria.

BARTIROMO: Thank you so much for joining us. You're reaction to the president pulling out and also what we could see as retaliation from Iran? Should we be worried?

MCCAUL: If I could first say Happy Mother's Day to my 90-year-old mother and wife, mother of five beautiful kids.

BARTIROMO: Beautiful.

MCCAUL: And so, now, this is a very intense time. I think the president made a very bold foreign policy move here. The deal with John Kerry was flawed from the beginning. It did not deal with inspections particularly military side. They had ballistic missile capability and sunset provisions so essentially guaranty the nuclear Iran. These are the three issues that the president tried to initiate with France, Germany, and Britain. I think France came along when Macron spoke at the state of the union and then I think the Brits were with us. This deal, by pulling out puts marginal pressure on Iran but also Europe within the 90 to 180 day timeframe window to cut that deal so we have a bitter deal to ensure that we never have nuclear Iran ever. The whole point of these sanctions by Congress was to get to the point where we would insure they would never have nuclear weapon capability.

BARTIROMO: And you know, Dick Cheney told me as well that the Iranians have increased their military budget by40 percent. This is what the president has tweeted out this morning basically saying, look, look what they've done with the money. We've already given them all of this money. Are you expecting any retaliation, anything that we should be worried about in the homeland given that they're not happy, they're chanting death to America?

MCCAUL: Death to America, death to Israel. $150 billion went to buy the sanctions, 40 percent ramping up their military. When I was in Israel with Prime Minister Netanyahu, he talked about the Shia crescent of Iran going Iraq, Syria, and Lebanon. We know they fired missiles into to Golden Heights, a very intense situation. I do anticipate there'll probably some sort of retaliation by Iran, also in cyberspace. We saw after the sanctions in 2011, major cyber-attacks on the financial sector. But again, I think the president is doing something very unconventional and bold. At the end of the day just like what's happening with North Korea, could produce very positive result.

BARTIROMO: Yes, connect the dots. Do North and -- North Korea and Iran work together on nuclear ambitions? This is pretty significant what has taken place in terms of North Korea and the president was able to put the pressure campaign even on China to get involved and help North Korea come to the table.

MCCAUL: It -- I think it was a great act of diplomacy by Mike Pompeo. He's a good friend of mine. We traveled overseas quite a bit. You know, AQ and Pakistan pull for aide to Iran and then North Korea in Iran exchange technology. So you know, that's a pure fact. And I think you know, the fact is these prisoners came home from North Korea after maximum pressure was applied as you mentioned by China as well. We didn't see that happen when the Obama administration was trying to negotiate with Iran. In fact, I introduced a bill last week to provide sanctions on Iran because they have still have five American hostages that have never been released.

BARTIROMO: Wow. And we know that the last time we saw any hostages coming home, there was an exchange of money to Iran.

MCCAUL: Yes, cash on --

BARTIROMO: Exactly.

BARTIROMO: So what should we think about the Europeans right now. Will they follow -- and during this 180 day period, people and companies and countries have to decide if I'll do business with the United States or with Iran.

MCCAUL: I think that is fundamental choice. Do I do business with the United States or Iran, they're going to pick the United States. That's why we have the ultimate leverage on Iran.

BARTIROMO: So you think the Europeans change course. You think for example Macron, Angela Merkel say we have to pull out of this deal as well. I mean, will we see new information coming out of this?

MCCAUL: I think Macron was willing to negotiate on those three points there can be inspections. Remember we can't inspect their military sites. Where else are they going to build their nuclear capability, right? The ICBM ballistic missile capability and then the sunset which means we're guaranteeing a nuclear Iran. So we have to get those three issues resolved. I think what the President has done as a good deal maker has put maximum pressure now on Europe and Iran to get this done so we get a better deal. This was not a good deal that was negotiated by John Kerry and President Obama.

BARTIROMO: Yes, meanwhile John Kerry is running around trying to salvage this deal somehow in the last month which was incredible. Let me move on to immigration Mr. Chairman because a lot of frustration obviously on the part of the president recently that were are not clamping down more. What can Congress do? Apparently, there was a meeting last week where the president was upset with his Homeland Security Secretary Kirstjen Nielsen. Where you at that meeting?

MCCAUL: No, I was not. That was a cabinet meeting. I've heard about the meeting. Quite honestly, I see the frustration on both the president and secretary's part. This is Congress' role to act. Congress has the authority under the Constitution. I have a border security bill that will secure the border. We have to close the legal loopholes so when that caravan comes in that we saw, we can't just detain them and let them go, catch and release.

BARTIROMO: That's catch and release. Exactly.

MCCAUL: We have to deport them.

BARTIROMO: So -- because what stops anybody from taking another caravan in just bringing hundreds of people right in knowing that we have to catch and release.

MCCAUL: Yes, if you have a criminal come in your house and break in and yet, you can't -- you can't arrest them or report them, absolutely insane. The American people don't understand this. Congress can change this.

BARTIROMO: Can Congress change this over the near term?

MCCAUL: If we have my border security bill, the slim version of interior that really focuses on closing legal loopholes. That being you know, asylum changing the 2008 laws that allows them to stay in the country. Change those two things and then deal with the DACA issue. But Maria, it's paramount we do this soon because the longer we wait, the longer -- if go into July, we have to get them by July because after that it's about campaign. I worry that the Democrats wouldn't prefer to make DACA a campaign issue and not a legitimate policy issue.

BARTIROMO: Yes, you are right. And it feels like that's where they're going with this, by the way, take it all the way to the midterms. Before you go, any thoughts on NAFTA and whether or not we're going to see a deal sooner rather than later. The president apparently is putting a soft deadline of May 18th and May 19th to try and get a deal done so that Congress can deal with it before the Mexican elections and then, of course, we've got the midterm elections.

MCCAUL: Well, I always have (INAUDIBLE) U.S.-Mexico congressional delegations, but we have to fix it and update it not scrap it. My home state of Texas, Mexico is our largest trading partner. So this is economic for us. I think the administration is getting there to modernize the agreement, bring energy under the umbrella and also the country of words and principles that are so important. But I -- I'm optimistic. I believe we have to do this. I think to scrap NAFTA altogether would be a serious mistake.

BARTIROMO: Yes, exactly. And that's why -- is it even realistic to think we could have something on the table this upcoming week? I mean, this is the soft deadline he put in place.

MCCAUL: No -- he's been you know, he's been dealing with this right now. He's -- I think they are getting close.

BARTIROMO: OK.

MCCAUL: And I know Congress will take a look at it. We've been urging them again not to kill it but make it better and modernize it.

BARTIROMO: Right. Sure. And of course, Texas is right there with the Mexico trade. Let me your thoughts on what took place this morning overnight in Paris, another terrorist attack. Obviously poorest borders there. What's your take on this and how do you stop something like that in America?

MCCAUL: They're in a far worse position than the United States. They have so many foreign fighters from the battlefield in Europe. They have neighborhoods in Paris before the Brussels attack. We warned them about these enclaves of radicalized Muslims but they can't do anything about it. I would argues United States is very different. I bet with the NYPD pretty much all weekend talking about this. Sheikh Adnani, the ISIS spokesman says kill wherever you are by any means necessary. And this is what their relegated too, this knife attacks and vehicle assaults. They've been a bit demoralized since the cause of the caliphate, the aviation sector is still a concern mine. But this particular attack, you get to see more and more of this. You'll probably see this in the United States, but it's not below the lines of a 9/11 style attack.

BARTIROMO: It's pretty incredible how vulnerable Paris has been, really. Mr. Chairman, it's always a pleasure to see you.

MCCAUL: Thanks, Maria.

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