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This is a rush transcript from "Fox News Sunday," July 2, 2017. This copy may not be in its final form and may be updated.

JOHN ROBERTS, FOX NEWS HOST: Im John Roberts, in for Chris Wallace.

While President Trump fights to fulfill a major campaign promise, repealing and replacing ObamaCare, the administration scored victories this week on immigration and upholding the travel ban.

(BEGIN VIDEOTAPE)

JEFF SESSIONS, U.S. SECRETARY OF STATE: They've been reviewed (ph). So, I think it was a great victory for the president.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Health care is working along very well. We can have a big surprise with a great health care package.

ROBERTS (voice-over): Well break down the president's agenda going forward with Marc Short, President Trumps director of legislative affairs. It's a "Fox News Sunday" exclusive.

(on camera): Then, with a growing number of Republican senators opposing the partys ObamaCare replacement plan, the president is now considering an immediate repeal and replacement later.

SEN. BEN SASSE, R-NEBRASKA: Every Republican in the U.S. Senate except for one has already voted for repeal in the past, let's do that first.

SEN. RAND PAUL, R-KENTUCKY: And now you have two bills, boom, you get it done in five minutes. The president seems open and interested in the idea.

ROBERTS (voice-over): Well discuss what Congress can do to repeal ObamaCare and get a replacement passed with Republican Senator Rand Paul and Democratic Senator Joe Manchin.

Senators Paul and Manchin only on "Fox News Sunday."

Plus, the president shifts focus off of the agenda, creating a media firestorm with several tweets attacking cable news hosts. Well ask our Sunday panel if the president's tweets are hurting his agenda.

All right now on "Fox News Sunday."

(END VIDEOTAPE)

ROBERTS: And hello again from Fox News in Washington.

Senate Republicans have yet to bring their ObamaCare replacement to the floor for vote. Some suggesting separating repeal and replacement as two different bills.

Well, now, a group of senators is calling on Leader McConnell to shorten or altogether cancel the upcoming August recess in order to make meaningful progress on several legislative issues including health care.

Joining us now to discuss the administration's agenda, President Trumps director of legislative affairs, Marc Short. And we should point out that this is Marc Shorts very first appearance on any Sunday show.

So, we are glad to have you here.

MARC SHORT, WHITE HOUSE LEGISLATIVE AFFAIRS DIRECTOR: Thanks for having me.

ROBERTS: You are the man who is tasked with being the foot soldier between the White House and Congress in terms of getting the presidents agenda through, where are we really with health care?

SHORT: Look, John, were getting close. The American people know that ObamaCare is failing. They know that insurance rates have continued to skyrocket. They know that insurers are fleeing markets. And last year alone, 83 insurers have left the market. People know that this is a dramatic situation.

ROBERTS: So, how --

SHORT: It's a crisis. Where we are is the president this weekend is continuing to make calls to members to try to get the Senate package across the finish line. We believe that our package will help to lower premium cost, help provide better quality care for patients and returns the relationship between the patient and his or her doctor without the government being in the middle.

ROBERTS: So, when you say were getting, how close are you?

SHORT: Well, look, weve gone through a long process in the House and got it completed and passed in the House. We now are in the Senate where theres been obviously a lot of procedural delays in this process. We are at the point of scoring two separate bills throughout the course of this recess this week. So, we hope that we come back the week after recess, well have a vote.

ROBERTS: Lets talk about these two bills, because you mentioned this to me earlier in the week. Youve got two different bills, variations on the same theme, that are going to go to Congressional Budget Office for scoring. Whats in those bills?

SHORT: Well, so, whats in the bill is that it will help to get rid of the individual mandate. It will get rid of taxes to make this easier on the American people. One thing that raises rates so much, John, thats really less understood in America is when you're on individual exchanges. The mandates the federal government puts on are so ridiculous that men are forced to carry coverage for mammograms, women are forced to carry coverage for prostate issues, it's absurd. And the American people know this. Were going to get rid of many of those regulations and mandates to lower cost.

ROBERTS: What's the difference between the two bills that are going to go (INAUDIBLE)?

SHORT: One has an amendment, thats called the Consumer Freedom Act that Senator Cruz and Senator Lee have offered that will help continue to reduce those regulations. And one is being scored without.

But let's talk about the CBO scoring for a second, because CBO scoring has indicated when they initially scored ObamaCare that 25 million people will be on the ObamaCare exchanges. In fact, there are only 10 million. So, when the press reports that 22 million people are going to lose coverage, it's a ridiculous number. Of that 22 million, seven million --

ROBERTS: But the press has only reported what the CBO says.

SHORT: They reported what CBO says but the CBO credibility should be certainly -- should be questioned at this point. Seven million of those people are people that don't exist. Theyre people that is based upon a baseline that CBO put out in 2014, even though the actual number is way down here.

There's another 7 million people they say will choose to leave the market that they say are losing insurance. That's not losing, that's choosing.

ROBERTS: And yet --

SHORT: And take another 4 million people in Medicaid and they say that's 4 million people who get Medicaid today will choose, if they don't have a mandate, to leave. That's 18 million people right there, John.

ROBERTS: And yet, you keep on submitting these bills to CBO for scoring because I know thats the process.

But let me ask you about this, this idea to repeal ObamaCare and then replace it at a later date. This is something the president even suggested. Ben Sasse of Nebraska and Rand Paul of Kentucky are both suggesting it. Will that even fly because Leader McConnell is saying, thanks but no thanks?

SHORT: Well, look, John, just in December of 2015, 49 current senators, as Ben Sasse has told you, 49 of the senators supported repeal. And if provided --

ROBERTS: Because they knew it would never become law.

SHORT: Well, I think that's a pretty tough messaging to go back to your constituents and say, I actually voted for it because I knew it wouldnt become law. I think they are pretty committed to knowing how much ObamaCare is failing. The last 15 or 18 months, it's only gotten worse. Premiums have only gotten higher.

In Nevada alone, two more insurers pulled out this week. So, now, in 18 counties in Nevada, 14 have no insurer next year. It's a true crisis and we need to do something about it.

ROBERTS: Yet, Dean Heller is saying, no way Im signing on this bill.

SHORT: Well, you know, look, I think Dean Heller voted for that repeal effort and the way that we look at is to say if the replacement part is too difficult for pulpits to come together, then let's go back and take care of the first step in repeal.

And even those 49, there's another member, Todd Young from Indiana, who when he was in the House voted for the bill, too. So, you have 50 members on record having voted for that recently. So, that's an option.

And then, at that point, if you've repeal it, you can come back with a replacement effort that could be more bipartisan.

ROBERTS: Are you concerned, though, that if you did do it in two pieces, you did replace first, then you did replacement later, that you might end up with repeal and never get around to replacing it?

SHORT: Look, John, we stated in our preferences is to pass the bill the Senate has right now. Thats what we think needs to be done. We think that help solve many of the problems Americans are facing.

And there are other legislative vehicles going on at the same time. Just last week the House passed Med Now which helps to limit the amount of lawsuits. So, it helps us to actually lower premiums. So, there's actions going on. This is not a one-size-fits-all.

ROBERTS: Senator Schumer is saying, hey, come work with us. Listen to what he said earlier in the week.

(BEGIN VIDEO CLIP)

SEN. CHUCK SCHUMER, D-NY, MINORITY LEADER: I challenge them again: invite all of us to Blair House, the first day we get back from recess. If you think were not serious? Try us.

Democrats are ready to turn the page of health care. When will my Republican friends realize it's time for them to do the same?

(END VIDEO CLIP)

ROBERTS: Marc, the president says over and over again that the Democrats are nothing but obstructionists. Were not going to get a single Democratic vote to repeal and replace ObamaCare. There's the offer from the Senate majority leader.

SHORT: John, the Senate -- the president is absolutely right.

ROBERTS: The Senate minority leader, right.

SHORT: The president is absolutely right. They have been obstructionists. Weve heard from senators who have said, look, we know the markets are collapsing. We know people are losing insurance. It's devastating our state.

I can't be with you on repeal because that was one of President Obama's signature accomplishments, but we can be with you on replace. So, if this is the route we go, then there's that opportunity.

But it's quite just ingenuous I think for Senator Schumer to talk about getting together when today, right now today, we had 49 members of our folks that we put up for Senate confirmation approved. At the same point in Obama's administration on July 1st, he had 179. We have one quarter -- what Senator Schumer has often said rather disingenuously is to say its because we are not getting nominees. We have 133 nominees sitting in front of the Senate right now waiting to get hearings in order so they can get confirmation.

So, Senator Schumer might talk about bipartisanship, but he has no interest in bipartisanship whatsoever.

ROBERTS: So, back to the Republicans. So, weve got Sasse and weve got Rand who are pushing this idea of repeal first, replace later. Yet, at the same time, you got Senator Cruz of Texas and Senator Lee of Utah who are saying, well, we've got some other ideas. And they are trying to process forward.

Are you worried that theyll push it so far to the right that you're going to lose a lot of those moderates that you need to have?

SHORT: No, not at all. We support Senator Cruz and Senator Lees efforts. This is similar to efforts that transpired in the House and we think it's perfectly appropriate, his amendment. And so, we hope it's part of the process and bringing everybody together.

ROBERTS: Tax reform, the president has been many, many times that you need to do health care first so you get a bigger pot of money for tax reform. The Treasury Secretary Steve Mnuchin says, no, we can probably do tax reform without doing ObamaCare reform first. Which is it and what's the timetable for this?

SHORT: John, we looked at them both this year, thats the bottom line. We plan to get health care completed in the summer. We looked to move to tax reform in the fall. We look to complete it before the end of the year.

ROBERTS: And do you need to do health care reform first?

SHORT: We need to do both, John. The American people are getting crushed by the ObamaCare taxes and we need tax reform in this country because we need to get the economy growing again. It has suffered for far too long and dismal growth ever since the recession in 2008-2009. What will provide growth is tax relief and were going to get to it this year.

ROBERTS: One of the big issues is whether or not you do tax reform thats deficit neutral so that after 10 years, it can become permanent or whether it's more important to do tax cuts first. So, which part of that is more important, deficit neutral or getting the tax cuts?

SHORT: Whats most important is get the economy growing so people get back to work.

ROBERTS: So, that means tax cuts?

SHORT: That -- in our mind, that means tax relief. But there's also an idea that Senator Toomey has put out that suggests that the budget window can be moved from 10 years to 20 years, which I think is an attractive option to allow us to do that. But we are focused on getting Americans back to work. And, John, that's why unemployment today -- because of the many regulatory relief that this president provided, it's down to 4.3 percent. The lowest it's been in 16 years.

ROBERTS: I want to ask about the presidents tweets, because it's not necessarily in your wheel house, but it does kind of crossed into your area because youve got have to deal with all those folks on Capitol Hill who very often are rolling their eyes over what the president tweets and have said, Mitch McConnell has said he's not particularly fond of it. We saw with Susan Collins and others said about the presidents tweet regarding Mika Brzezinski.

Does he make your job more difficult with what he does?

SHORT: Look, John, I don't recall during the presidential campaign, many members in Congress being excited by the presidents tweets and he won the campaign. Congressional approval rating is about 11 percent or 12 percent right now. The president knows that he needs to get around the mainstream media to get his story out.

And part of that story is actually what we've accomplished on Capitol Hill. This is the first administration to get a Supreme Court justice confirmed in the first 100 days since 1881. He signed 42 bills into law to date. Fourteen of those under Congressional Review Act helped to roll back the burdensome Obama regulation.

ROBERTS: So, youre saying its not a problem?

SHORT: It actually helps to now -- the CRA repealing much of that legislation has enabled the economy to save $18 billion in compliance cost. We just passed the V.A. Accountability Act, the president signed and delivered on yet another promise to the American people. He signed the omnibus bill that begin to rebuild the military and to build the border wall.

ROBERTS: So, despite diverting from his agenda or so, it would seem at least in the public view from time to time, you're still getting done what you need to get done?

SHORT: Were getting done what we need to get done in record pace. And the American -- the president is focused on returning jobs to the American people.

ROBERTS: Theres one other thing I want to ask you quickly before we run out of time here and again, this isnt in your wheelhouse but it does cross over to some degree. This election -- the commission, the Presidential Commission on Election Integrity that the president has set up, secretaries of state of at least 27 states have said, were not going to give you the voter data that you want because we don't think that this is a legitimate quest. And to some degree, some secretaries of state are suggesting that the president is just seeking to legitimize the claim that he made earlier this year about the fact that he lost the popular vote because of massive election fraud.

What do say to the secretaries of state, including some Republicans like Delbert Hosemann of Mississippi?

SHORT: John, there's nothing more important than ensuring the integrity of the American vote. One man, one vote. The vice president of the United States is leading this commission. It's a bipartisan commission.

This information is publicly available, but wouldn't be great if the secretary of state were willing to apply and be part of this to ensure the voter integrity of the United States? I don't think that's too much to ask.

ROBERTS: Well, Mississippi secretary of state, again, Delbert Hosemann, has invited you all to jump in the Gulf of Mexico, which at this time of year wouldn't be a bad idea.

(LAUGHTER)

ROBERTS: Marc Short, thanks for joining us today.

SHORT: John, thanks for having me.

ROBERTS: And welcome to the Sunday show.

SHORT: Have a wonderful Independence Day.

ROBERTS: Thank you. You, too.

Coming up next, Senators Rand Paul and Joe Manchin on where things stand on health care reform in the Senate.

(COMMERCIAL BREAK)

ROBERTS: Efforts to repeal and replace ObamaCare stalled this week when Republicans delayed a vote on their plan, putting it off until after their return from the Fourth of July recess. Will they have enough votes, though, to pass the bill?

In a few minutes, well be joined by Democratic Senator Joe Manchin of West Virginia. But first, joining us now is Republican Senator Rand Paul, whos among a group of Republicans opposing the current bill, and has some ideas on how to get repeal and replacement through.

Senator Paul, good to talk to you this morning.

Let me start off with a tweet that the presidents in earlier, which was actually what convinced her to come on the July 4th weekend. The president tweeting, quote: If Republican senators are unable to pass what they're working on now, they should immediately repeal and then replace at a later date.

The president appears to be listening to you. You mentioned this to him on Wednesday, though your colleague from Nebraska, Ben Sasse, is also claiming credit for this. But Senator McConnell has said thanks, but no thanks.

So, will this idea even fly?

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Sen. Rand Paul on push to repeal then replace ObamaCare - Fox News

Sen. Rand Paul said Thursday that the health care bill should be split into two pieces of legislation in order to pass an Obamacare repeal.

"I think if we take this bill and split it into two pieces, we pass one that is more, looks like repeal that conservatives like. And then the other one you load up with all kinds of Christmas ornaments and gifts and money and just pile money on it that the Democrats will vote for and some of the Republicans will vote for," the Kentucky Republican said in an interview on MSNBC's "Morning Joe."

Paul predicts that "both [would] end up passing" if Senate Republicans pursued that path."It may not be completely good for the country, but you at least get the repeal that way," Paul added.

The repeal bill, he said, could repeal Obamacare's taxes and regulations and include Medicaid reform, but he said it would be "much narrower" and "much cleaner."

Paul reiterated that he doesn't "support the current bill and won't vote for it unless it changes or gets better." He was among the first few Senate Republicans to come out against the Better Care Reconciliation Act (BCRA) last week.

In the interview Thursday, Paul admitted that "half of the Republicans hate it," in addition to all of the Democrats. Republicans technically need 51 votes to pass the legislation, but one vote can be Vice President Mike Pence's tie-breaking vote. That means leadership needs at least 50 Senate Republicans to back it, and assuming all Democrats vote against it, Republicans can only afford two defections. The Senate currently has 52 Republicans and 48 Democrats.

Paul said Thursday he supports a plan that would expand beyond Obamacare.

"I'm for letting every individual in the market join a co-op or a buying group and then they would be part of a large group, they'd be protected against pre-existing conditions. But they'd also be able to get a cheaper price," he said. "But this only works if you free up and get rid of the mandates and regulations. Because you have to legalize inexpensive insurance."

Senate leadership is aiming to produce a revised health care bill by Friday to send to the Congressional Budget Office to be scored over the July 4 recess.

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Rand Paul says splitting up health care bill could improve ...

Conservative Review

The statesmanship of Rand Paul Conservative Review In the ongoing health care debate, Senator Rand Paul, R-Ky., has emerged as the most consistent champion of and advocate for real repeal of Obamacare. One of the select few conservatives in the U.S. Senate pushing against the current GOP health care ... Trump suggests just repeal Obamacare, then try to replace itTribune-Review Senate asks for CBO score on Cruz's healthcare proposalThe Hill Trump wades into healthcare fight amid wavering Republican supportWashington Examiner Slate Magazine (blog) -KOLO -Politico all 142 news articles »

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The statesmanship of Rand Paul - Conservative Review

"There's still quite a bit of disagreement," Sen. Rand Paul says. | Getty

Sen. Rand Paul said Thursday morning that he and his Republican colleagues remain at an impasse on striking a compromise on Obamacare repeal legislation and suggested that the only way to appease the moderate and conservative wings of the GOP might be to split the bill in two.

"I still sense that we're at impasse," Paul told Fox News Fox & Friends, adding, "There's still quite a bit of disagreement."

Story Continued Below

Paul , of Kentucky, is one of at least eight GOP senators who have said that they oppose the repeal-and-replace legislation introduced by Republican leadership in the Senate last week. Some lawmakers, including Paul and other conservatives, have opposed the bill because, they say, it does not go far enough in repealing Obamacare, while other, more moderate members, like Sens. Dean Heller of Nevada, Susan Collins of Maine and Shelley Moore Capito of West Virginia argue the bills cuts are too severe.

Senate Majority Leader Mitch McConnell is hoping to have a new deal at least in principle on the health care bill as soon as Friday, after GOP leadership was forced to pull a procedural vote earlier this week due to the lack of Republican support. Some details have started to emerge about a potential compromise, including adding at least $45 billion to address the opioid crisis and allowing consumers to use Health Savings Account money to pay for their premiums.

But Paul said a solution is to split the GOPs health care agenda into two bills: a clean repeal to appease conservatives by completely undoing Obamacare and a second bill focused on spending that could be hashed out between Democrats and moderate Republicans.

Do the repeal, which no Democrat will vote for, repeal the taxes, repeal the regulations, and fix the Medicaid that helps to pay for everything, Paul said. No Democrats will vote for anything good like that. But Democrats will always vote for spending. So the big-government Republicans that want more spending take the spending and put it in a bill that the Democrats will vote for.

Paul said he had suggested his strategy to President Donald Trump on Wednesday during a conversation about the health care legislation and that the president seemed open to the idea. The Kentucky senator said such a plan could benefit from Trumps leadership and that the president has the force of personality and the bully pulpit of the presidency to force it through.

The schism among Senate Republicans is similar to the one their House colleagues managed to bridge in May with the passage of repeal-and-replace legislation that the White House celebrated with a Rose Garden pep rally. But even in the House, where the Republican majority is wider than it is in the Senate, GOP members struggled to find compromise and managed to narrowly pass their health care bill by only a handful of votes on a second attempt.

In the Senate, Republicans can afford to lose just two GOP votes and still pass their measure. Any legislation passed by the Senate would need to be reconciled with the House version before going to the presidents desk.

Well, see, the typical way in Washington that they fix things is they give everybody money, and I think that's what's going to happen now, Paul said of the negotiation process. Half of them want more money, and half of them want less money. Thats why it doesnt work to have one bill, because every time you stuff more money in it for the moderates, it offends the conservatives.

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Rand Paul says GOP still 'at impasse' over Obamacare repeal bill - Politico

Rand Paul and Donald Trump together helped kill the original GOP strategy for repealing Obamacare but delaying a replacement. Now they are trying to bring it back. Photo: Ron Sachs - Pool/Getty Images

Back in that dreamy period for Republicans between November 8, 2016, and Donald Trumps inauguration, when all things reactionary seemed possible, the consensus plan for dealing with Obamacare was called repeal and delay. It involved using the budget-reconciliation process to quickly repeal those elements of the Affordable Care Act that were not strictly regulatory in nature, but with delayed effective dates so that a full Obamacare replacement plan could be worked out at leisure, quite possibly with some Democratic support given the ticking time bomb of full repeal. This strategy had the great merit of letting congressional Republicans quickly keep their promise to bring down the great white whale of Obamacare, without immediately facing the consequences in terms of people losing insurance, or facing higher costs for skimpier coverage. And it also protected Republicans themselves from their own vast internal disagreements over the ultimate shape and structure of the health-care system.

But the agreement over repeal and delay quickly collapsed, with the key moment being a conversation between Trump and a U.S. senator on January 9:

Senator Rand Paul let the world know that hed gotten a phone call from President-elect Donald Trump wherein the mogul expressed agreement with Pauls argument that Obamacare should be repealed and replaced in a single action.

Other senators began expressing concerns about repeal and delay, and Trump delivered the coup de grce in his first post-election press conference when he talked about an Obamacare-replacement bill being passed most likely on the same day or the same week but probably the same day could be the same hour as repeal legislation.

Nearly a half-year later, with legislation to partially repeal and partially replace Obamacare teetering on the brink of failure in the Senate, the idea of a repeal and delay strategy is suddenly being promoted by wait for it Rand Paul and Donald Trump.

To be clear, Paul is not talking about the sort of very extended delays in consideration of a replacement bill (some thought until after the 2018 midterms) the original repeal-and-delay promoters contemplated. At one point he hints a bill extending the Childrens Health Insurance Program (CHIP), needed later this year, might be the appropriate vehicle.

What Pauls 180-degree turn on repeal and delay signifies, though, is the realization of some conservatives that insisting on simultaneous repeal and replacement was a big strategic error. It encouraged Republican moderates to fight for retention of some key elements of Obamacare in the replacement bill and thus eroded support for anything like a full repeal.

With respect to Trump, though, its anyones guess what, if anything, his sudden support for two different actions on health care means. He could be reacting very immediately to the prospect of total failure on health care, which is what still another Republican senator was talking about in proposing a two-bill approach, as noted by Jonathan Cohn:

Trumps tweet seemed to be endorsing an idea that Sen. Ben Sasse (R-Neb.) floated minutes earlier on Fox News and, according to the The Wall Street Journal, in a formal letter to the White House that if Senate leaders cant assemble a majority by July 10, they should try a different strategy: Vote to repeal the bill outright, or at least strip its funding, and then spend a month in non-stop hearings and negotiations to hammer out a deal on a new coverage scheme.

In any event, the immediate reaction from Mitch McConnells circle was chilly, as Caitlin Owens reports:

Senate Republican aides quickly shot down President Trumps tweet this morning, which said that if Senate Republicans cant pass their current health care bill, they should repeal the Affordable Care Act first and then replace it later.

Not going to happen, said one senior GOP aide. 15 votes for that strategy. Which is why we are where we are.

Bingo. The logic of repeal and delay is no better or worse than it was in January, when Trump and Paul successfully opposed it. Perhaps the worst sign for Republicans on health care is that they are now clearly going in circles.

The suspect was reportedly a former employee and physician at the hospital. He killed at least one person before turning the gun on himself.

McConnell is reportedly giving moderates more opioid funding, larger subsidies, and fewer tax cuts while giving far-right dissidents little.

California, Virginia, and Kentucky are among the states to tell Trumps voter fraud czar, Kris Kobach, to get lost.

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The Return of the Repeal-and-Delay Strategy for Killing Obamacare - New York Magazine