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Trump's Promise on Obamacare Crumbling; U.S. Announces New Sanctions on Iran; Trump Threatens Sanctions on Venezuela over New Constitution. Aired 1:30-2p ET

Aired July 18, 2017 - 13:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


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[13:33:39] WOLF BLITZER, CNN ANCHOR: The Senate fight over health care exposed clear rifts within the Republican Party. The Senate majority leader, Mitch McConnell, struggled to even get enough support for an initial procedural vote right from the beginning. There was deep concern over how the bill was devised behind closed doors by the White House and congressional leaders. And now there already isn't enough support to get a so-called repeal bill passed. Not even a procedural vote on that front. Earlier, in the hour, we heard from President Trump. Listen.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Let Obamacare fail. It will be a lot easier. And I think we're probably in that position where we'll just let Obamacare fail. We're not going to own it. I'm not going to own it. I can tell you, the Republicans aren't going to own it. We'll let Obamacare fail. And then Democrats will come to us and say, how do we fix it? How do we fix it? Or, how do we come up with a new plan? We'll see what happens.

(END VIDEO CLIP)

BLITZER: I want to bring in our panel. Alice Stewart is CNN political commentator, a former communications director for Ted Cruz. Doug Hye is a former Republican National Committee communications director and a CNN political commentator. And former congressman, Jack Kingston, is also a CNN political commentator, former adviser to the Trump campaign.

Alice, how big of a setback, a failure is this for the president and the Republican leadership?

ALICE STEWART, CNN POLITICAL COMMENTATOR: A significant failure. Some call it one of the biggest riffs we've seen in years because President Trump and Republicans campaigned for the last seven years on repealing and replacing Obamacare and weren't able to get it even to the starting line. As Vice President Pence said, inaction is not an option. They need to do something.

In my view, behind closed doors to get what we had to the table was not the right way to go about it. Go back to the drawing board, bring all perspectives in, conservatives, moderates, start from square one. Otherwise, they'll face consequences in the midterm.

[13:35:30] BLITZER: Doug, you just heard the president say, no longer will it be repeal and replace. Forget that. They don't have the votes. No longer will it simply be repeal. Don't have the votes. Simply let Obamacare continue along, let it fail and let Democrats, if it does fail, come to the Republicans looking for help. The new, third strategy the president put forward, what do you think?

DOUG HYE, CNN POLITICAL COMMENTATOR: May be the only option left it to let it fail. We can't get Republican votes. It's not just Obamacare repeal. This is deja vu all over again. Certainly the Congress, so many times where we'd lose a vote, we'd have to pull a vote before we had the actual vote, whether this was the farm bill, the Bush tax cuts expiring, a lot of Obamacare votes. Republicans have to answer questions to the country. Not just about Obamacare but broad. Can one party control -- Republican control of the government actually govern? With a Republican president, should be able to do that.

BLITZER: Listen to the Democratic leader, Jack, in the Senate, Chuck Schumer, reacting to late-breaking developments. Listen to this.

(BEGIN VIDEO CLIP)

SEN. CHUCK SCHUMER, (D-NY), SENATE MINORITY LEADER: Early on, the majority leader told Democrats, we don't need you. We don't want you. Respectfully, I take issue with the idea Democrats didn't want to engage on health care. The majority leader admitted that he decided the matter for us when he locked Democrats out of the process at the outset.

(END VIDEO CLIP)

BLITZER: Was that a major blunder on the part of Mitch McConnell?

JACK KINGSTON, CNN POLITICAL COMMENTATOR: I don't think that's accurate. Democrats have always been welcome to come in to the table. And in reality, they don't have to be in the room. Where is their plan? The only thing they've introduced, a single-payer, universal health care plan, the Bernie Sanders approach to health care. Chuck Schumer really wants to be at the table --

(CROSSTALK)

BLITZER: You know, Jack, there are Democrats in the Senate who would have loved to work with Republicans. John Manchin, for example, of West Virginia. The only thing these moderate Democrats asked, don't repeal it. Let's improve it. Let's fix it. Let's get a great health care plan going. Simply don't repeal it. And Republicans said, no, that's a non-starter.

KINGSTON: Wolf, they had two great vehicles in the House. One, is the Financial Services bill that Tom Graves is moving forward, the other is one, Tom Cole's bill, Labor, Health and Human Services. Both on the House floor with open rules. And both are going through the regular committee process now. If Democrats want to improve health care, these are the two bills that deal with the financial ends of Obamacare. And the Democrats should be -- should be putting on positive amendments and ideas. So they do have a vehicle. I believe, respectfully, to quote his own words, that Mr. Schumer is copping out on this. If they want to -- to be part of the process, they don't need a special embroidered or engraved invitation from Mitch McConnell.

BLITZER: You know, the president did something today, Alice, we never see the president do, not as a presidential candidate or a businessman, accept defeat and failure, acknowledge it, when he tweeted this: "We were let down by all of the Democrats and a few Republicans. Most Republicans were loyal, terrific, and worked really hard. We will return."

Did you ever hear the president acknowledge failure?

STEWART: No. Not to my knowledge. The good thing is, he's not going to leave it out there unfinished. I think it's important that he also recognize that he's the leader of the Republican Party. And he can help bring them together, which I don't believe he has done to this point. And he can bring in the issues that are still out there on the table, making sure we have the Medicaid coverage, the opioid funding, and making sure that we keep aspects that are important in place. Because as my former governor, Asa Hutchinson, said, we have to work with the governors in the state. This is a state-by-state issue. It has to work at the state level.

[13:39:21] BLITZER: The governors were not happy, Democrat and Republican governors.

Guys, thank you all very much. Alice Stewart, Doug Hye, Jack Kingston, good discussion among Republicans.

Coming up, another big promise from President Trump on the campaign trail was to tear up the very bad -- he used to call it -- extremely bad -- Iran nuclear deal. Now the White House certifying that the Iranian government is in compliance with the nuclear deal. We're talking live to the House minority whip, Democratic Congressman Steny Hoyer. He's standing by.

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BLITZER: A lot of fast-moving developments today here in Washington. The Trump administration announcing new economic sanctions against Iran. The eighth person at the Trump Tower meeting now identified. The collapse of the Republican health care bill, that is now virtually collapsed.

Here to discuss all of this, I'm joined by the Democratic congressman and minority whip, Steny Hoyer.

Congressman, thanks so much for joining us.

REP. STENY HOYER, (D-MD), HOUSE MINORITY WHIP: Hi, Wolf. Good to be with you. BLITZER: Let's talk about Iran quickly. As you know, the U.S.

wanting to impose new economic sanctions on Iran over it's ballistic missile practice, support of certain terrorist groups. That comes a day after the Trump administration said Iran is in compliance, is complying with the nuclear deal negotiated by the U.S. and other countries, what, two years ago. And said the Iranians are in compliance, but not necessarily honoring its spirit. Are you with the president on this?

[13:45:07] HOYER: I think, clearly, the evidence shows that they are in compliance with the agreement that the joint -- the plan of action that was signed by the Trump administration -- excuse me, by the Obama administration and China and Russia, and then the Europeans, France and Germany. Excuse me, Great Britain. The fact of the matter is that I think the Congress agrees that additional Iran sanctions are appropriate. And, in fact, there's legislation pending to do that based upon their destabilizing of the region, support of terrorism, and undermines of human rights, many of which are contrary to U.N. sanctions that have been applied. So that I think, on that part of it, I think there is agreement. And I think we'll move forward on -- in the congressional legislation, which incorporates some of those sanctions.

BLITZER: So you voted for the Iran nuclear deal two years ago.

HOYER: I did.

BLITZER: Any regrets?

HOYER: No. I think that the -- my own view was that the agreement was not strong enough. I urged the administration to go beyond where they went.

But having said that I thought nothing was to be gained by defeating the agreement reached by the administration. I think it has had a positive impact in that Iran has, in fact, followed its agreement and reduced its threat of nuclear warhead being produced. That's a stabilizing impact.

I think the actions of Iran, however, have not been following that say path in terms of its non-nuclear activity.

(CROSSTALK)

HOYER: But I do agree that the agreement has worked so far, and I think that's been a positive.

BLITZER: The president during the campaign used to say it was the worst agreement ever. Still says that. Although, he and his administration believe the Iranians are in compliance.

As you know, the House majority leader, Kevin McCarthy, is saying he plans to combine a House-passed North Korean sanctions bill to the Senate, Russian sanctions legislation, passed by the Senate, one time, 8-2, then 97-2. What's the problem? Why hasn't this come up on the floor of the House of Representatives? HOYER: Well, Korea has come up on the --

BLITZER: I'm talking about the Russia sanctions.

HOYER: I understand that, and passed overwhelmingly, and that's what the majority leader is talking about. However, Leader Pelosi and I, along with chairman, Ranking Member Engel, introduced the Senate bill as originally passed. And we would be for that. That could be brought to the floor. We could pass it, send it back to the Senate or directly to the president. It's a House bill. So it would have to go to the Senate and they'd have to approve it. But it would be something they had already voted on, as you say, 98-2 or 98-2. I urge the majority to bring that up.

If we add additional items to the bill, it's simply going to slow it up and weaken it. And I think we ought not do to that. We're urging the majority leader to move a bill to the floor which we think would be overwhelmingly supported by the House.

BLITZER: You think that's what the Republican leadership in the House is trying to do, delay, delay, delay? Because the White House does not like this -- this Senate passed bill?

HOYER: Well, it's -- it's clear that the White House is not for this bill. Mr. McCarthy has told me, and I take him at his word, he wants to see this bill pass quickly. He has said he wants to add Korea. He's talked about other items. Very frankly, my position has been, if Mr. Corker, the chairman of the Foreign Affairs Committee, and Mr. Cardin, the ranking member, can agree that the changes made will not in any way impede or weaken the bill, then we could support that. But that's going to be my criteria and I think criteria of a lot of us in the House.

BLITZER: I want your quick reaction to what the president just said at the top of the hour. His new strategy on health care, repeal and replace, is dead, at least the time being. It's simply, as he tweeted, "Let Obamacare fail then come together and do a great health care plan, stay tuned."

Are you with him on that? Are you happy that --

HOYER: Absolutely not.

BLITZER: -- repeal and replacement has failed, and now his strategy is, let Obamacare fail?

HOYER: Absolutely not. I think it's an irresponsible policy to pursue. I think it is hurtful to millions of Americans. Millions of people will be hurt by following such a policy.

The only responsible policy for the president and for our Republican colleagues to pursue is to work with us to make sure that the ACA works. And if they, at some point in time, get the vote to replace it, that's one thing, but to leave Americans vulnerable, millions and millions and millions of Americans vulnerable. Eighteen million people according will lose their insurance next year in 2018, and 32 million people will be uninsured, in addition to what are uninsured now in 2026. So, it's an irresponsible proposal that the president has made or thought that he's made. What he promised the American people was insurance for everybody at a lower cost and better quality. His party controls the House. It controls the Senate. And it controls the presidency. If it fails to deliver that, then the American people ought to hold them accountable.

[13:50:42] BLITZER: Congressman Steny Hoyer, of Maryland, thanks as usual for joining us.

HOYER: You bet. Thanks.

BLITZER: A lot more news coming up right after this.

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BLITZER: A warning from the White House, the United States will not stand by as Venezuela crumbles. President Trump now threatening to impose sanctions on Venezuela if the nation's president follows through on his pledge to rewrite the nation's constitution.

CNN's Leyla Santiago joins us now live from Mexico City.

Leyla, millions of people rejected Maduro's constitution rewrite this weekend but he still insists he's going to move forward with it. What exactly is President Trump now threatening to do, and what's been the reaction?

[13:55:17] LEYLA SANTIAGO, CNN CORRESPONDENT: Well, exactly what President Trump is considering remains unclear. But what is clear today is that this has become sort of this back and forth between President Trump and Venezuela. Venezuela's foreign minister, not too long ago, calling President Trump's statements racist and xenophobic threats from a xenophobic empire.

And I want to read you a little more of the statement that came out. The foreign minister saying, "The thin democratic veil of the Venezuelan opposition has fallen and it reveals the brutal interventionist force of the U.S. government, which has been behind the violence suffered by the Venezuelan people in the last four months."

Not the first time, Venezuela points the finger at the U.S. as being sort of someone that is pushing the opposition to take to the streets in protest and really daily protests that have become violent and, in some cases, somewhat -- or deadly with nearly 100 deaths since the unrest began.

So, what is President Trump considering? Well, that remains unclear. But if history is an indication, in the past, sanctions against Venezuela have been targeting particular individuals with frozen assets, canceled visas. And you have the oil market, which could make Venezuela a bit more vulnerable -- Wolf?

BLITZER: Certainly could. Looks like Venezuela's -- it has been crumbling, but it really looks seriously crumbling right now. What's the latest?

LEYLA: Earlier this month, we were actually on the border with Venezuela and Colombia and what we saw, people fleeing Venezuela just to get basic goods, given the medical and food shortages, people that were desperate, people that really needed relief just to live day-to- day. And so I think what you're hearing from the opposition is that frustration. Not necessarily a need for a new constitution, but what they say, a need for a new government -- Wolf?

BLITZER: All right, Leyla, thanks very much. Leyla Santiago in Mexico City. We'll watch this important story.

That's it for me. I'll be back 5:00 p.m. Eastern in "THE SITUATION ROOM."

For our international viewers, "AMANPOUR" is next.

For our viewers in North America, "NEWSROOM" with Brooke Baldwin starts right after a quick break.

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