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Interview with Senator Tom Carper; Lawmakers Clash Over Memo Alleging FBI Wrongdoing; Did Trump Lawyer Set Up Companies to Pay Off Porn Star?; Iowa Town Gives Mixed Reviews on Trump's First Year; Last Minute Talks, But Still No Deal Just Hours From Shutdown; WSJ: Trump Lawyer Paid Porn Star Through Private Company. Aired 7-8p ET

Aired January 19, 2018 - 19:00   ET


[19:01:20] ERIN BURNETT, CNN HOST: OutFront next, breaking news. Race against the clock just hours away from a shutdown, and there is no deal. Plus a Republican claims to have evidence of FBI missteps in the 2016 election. Is this real or is it just another attempt to derail the Russia investigation?

And the Shell Company reportedly used to pay a porn star. Was the money used to keep her quite in about an alleged relationship with Donald Trump? Let's go OutFront.

And good evening. I'm Erin Burnett. OutFront tonight, the breaking news, we are on the brink. Right now, less than five hours away from a shutdown of the U.S. government.

Right now, a desperate race in the Senate to try to find 60 votes to keep the government open. If they don't have the votes, and they do not have them right now, this shutdown will happen at midnight. It would be historic, the first full shutdown to happen under one party's control.

Trump and the Republicans control all the elective levers of the government, the White House, the House and the Senate. They're most basic jobs, of course, is keeping the government running. And now staring down failure, the blame game is on. Trump and his allies launching a preemptive strike to blame the Democrats.


MICK MULVANEY (R), DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET: OMB is preparing for what we're calling the Schumer shutdown.

SEN.TOM COTTON (R), ARKANSAS: I hope the President talk some sense into Senator Schumer and the Democrats so we don't have the Schumer Shutdown tonight.

UNIDENTIFIED MALE: Do we stay open or we have a Schumer shutdown?

JIM ACOSTA, CNN CHIEF HOUSE CORRESPONDENT: At the beginning of this, you said this was a Schumer shutdown. How can it be the Schumer shutdown when the Republicans control the White House, the House and the Senate? MULVANEY: Come on, you know the answer to that as well as anybody. I mean, I have to laugh when people say that, oh, we control the House, the Senate, White House, why can't you get this done? You know as well as anybody that it takes 60 votes in the Senate to pass appropriations vote, right? You know that.

ACOSTA: I know.

MULVANEY: OK. So, if you only have 51 votes in the Senate, then you have to have Democrat support in order to keep the government to fund the government, so that's the answer to your question.


BURNETT: OK. So, it's pretty good argument until you consider what then citizen Trump said in 2013 about who holds ultimate responsibility for a government shutdown. He minced no words.


DONALD TRUMP, PRESIDENT OF THE UNITED STATES: So I really think the pressure is on Obama to make a deal because he doesn't want this in his resume.

In 25 years, in 50 years, in a100 years from now when the government is, you know, they talk about the government shutdown, they are going to be talking about the president of the United States, who was the president at that time? They're not going to be talking who the head of the House was, the head of the Senate. They're not going to be talking about Boehner, they're not going to be talking about -- they're going to be talking about the president's administration.

So he's got a lot of pressure on him to get this thing solved, but you have to negotiate. He doesn't want to negotiate. He doesn't want to meet, he doesn't want to talk to people, and the right guy would get everybody into a room and would make a deal.


BURNETT: That's the thing about Trump. There is always a tape, OK. So by his definition, which he made, he was very clear here, very eloquent. He owns it. Cut a deal and avert a shutdown, he wins. And if he fails, well, it's on him.

The President called the Senate Minority Leader, Chuck Schumer, this after and invited him to the White House. And moments ago, Trump fired off a tweet suggesting a compromise was still possible saying, "Excellent preliminary meeting in Oval with Sen. Schumer working on solutions for security in our great military together with Senate Majority Leader McConnell and Speaker Ryan making progress. Four week extension would be best." And of course, that meeting, just to be clear, the Majority Leader and Paul Ryan were not there. It was just the President and Senator Schumer and the Chief of Staff, John Kelly.

At this hour, let's just be clear, though, there is no deal. And the timing of all of this could not be worse for the President. Tomorrow marks the one-year anniversary of his inauguration and it was, one, he was planning to celebrate with great pomp and circumstance. Today, he was forced to put off delay a trip to Mar-a-Lago where tomorrow night a big black-tie gala is scheduled to celebrate to the inauguration with a fundraiser. It remains to be seen, whether this will get solved in time, whether Trump will fly in at the last moment.

Sunlen Serfaty is OutFront on Capitol Hill. And Sunlen, this is truly a fluid situation. Here we are now less than -- just a few hours away, less than five hours away from a shutdown of the U.S. government. Where do things stand right now?

SUNLEN SERFATY, CNN CONGRESSIONAL CORRESPONDENT: Well, certainly, it is a fluid situation, Erin. And the news just in the last moment right as we were going on air is that Senate Majority Leader Mitch McConnell has announced that they are going to have a vote tonight. That vote is going to take place at 10:00 p.m. Eastern Time.

We believe the vote that they are going to push to is one that they've been pushing to all day. The House passed spending bill with the four-week extension. Many members, of course, not on board with that plan. We expect that this will indeed fail.

We heard in the last few minutes Heidi Heitkamp, North Dakota Democratic Senator come out in a cross ranks says she will indeed vote for the spending plan, but she joints just two other Democrats as of now that will cross ranks and vote with the Republicans.

[19:05:12] Not enough for Republicans to get the 60 votes they need. So, all day, they have been pushing towards this now set 10:00 vote on the Senate floor tonight. That will fail.

The big question that has remained all throughout the day and continues to remain is what happens next when and if that fails. That is an open question tonight. A lot of talk up here on the halls of Capitol Hill, Erin, about potentially doing a few short day, three, four, five-day short-term continuing resolution to keep the government up and running until they can negotiate in another day.

But the White House legislative director told me just a few weeks ago as he shuttled in and out of Speaker of the House, Paul Ryan that is not an option. They want a four-week extension. The question is how to get the votes for that.

BURNETT: Right, exactly. How to get the votes for that, right? Either you got to give on the time or you got to give on the content. And each side is refusing to budge on one or the other. Sunlen, thank you.

And I'm going to go now to the White House and Jeff Zeleny. Jeff, what is the latest thinking there on the shutdown? Obviously, the President's view a few years ago was pretty clear, everyone will only remember who was president, not who was speaker of the House or minority leader.

JEFF ZELENY, CNN SENIOR WHITE HOUSE CORRESPONDENT: Erin, indeed. And I think you do get that sense here at the White House that people will remember who the President is. That is why you saw more engagement from President Trump today. Of course, first and foremost, calling Senator Schumer over here to the White House for an extraordinary 90- minute meeting.

It does make you wonder why those meetings weren't happening earlier. But, of course, in Washington, things often don't get done until the 11th hour. We are about approaching that 11th hour here.

And the reality here is the White House is still uncertain of what the Senate will do. They do believe that there will be a series of votes that they are going to lose on, of course, first and foremost, the House votes. They know that the Senate will not vote for approve the House bill.

So, Mick Mulvaney who was a former member of Congress of course central in that the 2013 budget shutdown, he told us earlier that he believes that they have a little bit more breathing room since it is a Friday night. He predicted that the government will indeed basically shut down or roll over that midnight deadline, but he believes that they will get an agreement within 24 hours. But, Erin, that is still an open question here.

When you ask senior advisers who I've been trying to do really, you know, throughout the day and into this evening here, who is going to vote for you, they still do not know exactly who or what the whip count is. So the -- as we stand here tonight, the President had planned to be at Mar-a-Lago and the warmth of sunny Florida. Donors are flying in for his one-year anniversary.

He is stuck here in Washington, likely not to travel there for the rest of the weekend unless they get a deal by late tomorrow here, Erin. So I'm watching this very carefully here at the White House. They believe it will get done by Monday morning, but they don't know exactly when before that, Erin.

BURNETT: All right. Jeff, thank you very much.


BURNETT: And OutFront now, let's go to the White House Principal Deputy Press Secretary Raj Shah. And, Raj, thanks for being with me. I appreciate it. What's the bottom line from where you're standing right now? Is there going to be a deal tonight or not?

RAJ SHAH: WHITE HOUSE PRINCIPAL DEPUTY SECRETARY: Erin, good evening and thanks for having me on. I think it's up to Senate Democrats on whether we're going to shutdown the government or not. We've seen Senator Joe Manchin, Heidi Heitkamp, Joe Donnelly in Indiana come out and say they could favor this bill. And really, there's a lot for Democrats to favor and a lot for the country to look forward to.

If you think about a shutdown and what may occur, the people who are going to be harmed the most are children who may lose their health insurance, public employees who work paycheck to paycheck and don't have a paycheck to pay for mortgages or other things, and military families who may have harm. And if you look at the folks who are going to be working, you're going to have border patrol agents, our troops who are going to work without receiving pay, and that's not a situation that we want.

Right now, the Senate has a bill in front of them that the House passed that deserves Democratic and Republican support. We are still hopeful that they might come forward and support it tonight.

BURNETT: All right. So you still think that's possible tonight. Obviously, you know, what we are hearing coming out of these meetings is pretty negative. I know Democrats are going to be meeting again in about an hour or 90 minutes.

Senator Ben Cardin said on CNN last hour, Raj, that there are 60 votes, right? That's the number you need. Right now, you're eight shy, even with those Democrats you just counted. But you'd have the 60 votes if you did a three-day extension and then spent the next three days actually working out some of the serious substantive issues. Is that a nonstarter for the White House, or would you consider a few day extension?

SHAH: Well, that's certainly not going to solve the problem. Right now, we're looking toward a long-term solution where we have a two- year set of budget caps that provide certainty for our military, for our federal agencies so they can make spending decisions and they are able to plan with some understanding of when their funding is going to come in. Right now, a three-day or four-day or five-day or whatever people have been talking about --


SHAH: -- we're not going to able to solve these problems. Yes, but the other issue of immigration that has been folded into this debate to some degree --

[19:10:09] BURNETT: Yes.

SHAH: -- that's certainly not going to get solve in three to five days. So whatever Senator Cardin is proposing is just a banded (ph). It doesn't solve the problem.

BURNETT: So you're not -- there's no way you get on board with that at White House?

SHAH: We will not get on board with that. They have a bill in front of them that extends chip. That delays taxes for two years. This is something that -- frankly, if President Obama or the President, they would vote for and he would sign. They just don't want to support Donald Trump.

BURNETT: And I know obviously the President invited Chuck Schumer to the White House today, only Chuck Schumer. Did that meeting go anywhere? It sort of seemed optimistic. But it doesn't look like it right now.

SHAH: Well, I mean, they got to exchange ideas. And, you know, we learned what some of the broader sticking points are for the Democrats when it comes to the two-year budget negotiations. But really right now, Senator Schumer needs to go tell his caucus that to avoid a government shutdown, the only -- really the best and only way to avoid it is to vote for this 28-day extension.

We talked about three to five days. What's the difference between three to five days and 28 days when you can extend children's health insurance and delay these taxes? We really think it's a good deal that's in front of them right now.

BURNETT: So, I know you are saying Democrats, you know, blaming Democrats and the whole Schumer shutdown thing. And look, alliteration is great, alliteration sells, I get it. But let me ask you about this, because the President has been so vocal in the past, that's one in -- from your point of view I'm sure, one of the blast (ph) things in curses of your boss. We know what he thinks about a whole lot of things because he has always talked. He has been opening his mouth for years about it.

Here he is in 2013 when President Obama was President talking about who would be to blame for the shutdown.


TRUMP: So I really think the pressure is on Obama to make a deal because he doesn't want this in his resume.

In 25 years, in 50 years, in 100 years from now, when the government is, you know, when they talk about the government shutdown, they are going to be talking about the president of the United States. Who was the president at that time? They're not going to be talking who the head of the House was, the head of the Senate. They're not going to be talking about Boehner. They're not going to be talking about -- they're going to be talking about the president's administration.

So he's got a lot of pressure on him to get this thing solved. But you have to negotiate. He doesn't want to negotiate. He doesn't want to meet. He doesn't want to talk to people. And the right guy would get everybody into a room and would make a deal.


BURNETT: Presidents do get the blame. He's right about that, Raj. The new poll today you saw it, the President, Republicans in Congress will take the lion's share of the blame at least up to public say now. Forty-seven combined percent to the 31 percent who put the blames on Democrats.

And the President said it in a way that has to make you smile. In 25 years, in 50 years, n 100 years when they talk about the government shutdown they're going to be talking about the president. Is he willing to accept the blame?

SHAH: I don't think the President should have the blame in this circumstance. Let's look at what's actually being negotiated. Democrats have a bill in front of them that extends children's health insurance that delays taxes that has bipartisan support. These are measures that they would support as standalones. The only thing that they are trying to do is add immigration to this debate and have, you know, amnesty for a class of illegal immigrants in DACA passed and added to this bill.

And if you want to talk about 2013, it was Chuck Schumer himself who said on national T.V. that adding immigration to a budget negotiation would create government by chaos. So it would create dysfunction.

BURNETT: Yes, he did.

SHAH: So we can pull old coats for your old coats --

BURNETT: You're paraphrasing it very well. I played that very sound bite last night for Senator Markey.

SHAH: Yes. And the point here is we can let history write itself in the future, 25 or 50 or whenever -- however many years from now. There are people that are depending on government funding today, tomorrow, and in the near future.

And as I mentioned, public employee workers who live paycheck to paycheck, and our military needs this. Even Secretary James Madison, Secretary of Defense said earlier today, intelligence operations and key training would have to be stopped if the shutdown happens.

BURNETT: Raj, before we go, I want to ask you one more thing. There's new reporting today out of the Wall Street Journal reporting that the President's personal lawyer formed private company just before the election to pay $130,000 in exchange for porn star silence about her alleged relationship with the President. He was not the president at the time, of course the relationship -- alleged relationship was 2006.

Raj, if there was no affair, why was there an LLC in Delaware set up to pay this porn star?

SHAH: These matters were asked about and answered pretty extensively during the campaign and I surely don't have anything to add.

BURNETT: But there was a denial of the affair. But there's never been any reporting about her being paid by the President until now.

SHAH: Sure, you can contact the individuals who were involved with that. Right now tonight, we're focused on getting this bill passed and keeping the government open.

BURNETT: All right, Raj, thank you very much. I appreciate your time.

[19:15:02] SHAH: Thanks so much for having me on.

BURNETT: And next, Trump and Schumer, the ultimate frenemies, can they make a deal? Plus Republican lawmakers calling for the release of a memo alleging FBI missed steps during the 2016 election. Democrats say it's a giant coy, what's the truth? And we will go to Delaware, where that LLC, the Shell company reportedly used by Trump's attorney to pay off the porn star, you see there with Donald Trump, is located. And we'll going to tell you what we found.


BURNETT: Tonight hours away from a government shutdown and there's no deal. Senate Majority Leader just announcing a 10:00 vote night. So, that's just about two hours -- well, that is exactly two hours before the government shut down, just over two hours from now.

Now, the President was optimistic earlier tonight saying, "Excellent preliminary meeting in the Oval office with Senator Schumer." But in other meetings that have been happening in the minutes just before the show, senators have come out essentially to take away of there is no solution. Now, the relationship between President and Schumer goes back for decades and obviously the two relationship could be crucial in getting a deal now.

Let's go now with the Former Clinton White House Aide Keith Boykin, Former Senior Economic Adviser to the Trump Campaign, Stephen Moore, and Senior CNN Political Analyst Mark Preston.

Mark, let me start with you. This vote that we're just hearing about 10:00 tonight eastern, that gives them two hours between this vote, which is basically a crucial vote in the step of keeping the government open and the deadline. Is that enough time for them to get there?

[19:20:15] MARK PRESTON, CNN SENIOR POLITICAL ANALYST: I don't think they'll necessarily see a deal cut within the next 120 minutes if we really want to just boil it down and to show how pressing it is. But, you know, the bottom line is, I think at this point is that -- and I am a very negative person by nature -- but I am cautiously optimistic that they will actually get to something. But just for our viewers out there wondering why are we at this point.

Just two simple numbers from the CNN poll that we just released today. One is only 17 percent of Republicans would place blame on Donald Trump or Congressional Republicans for the government shutting down. Democrats would only, now Democrats, that we surveyed, only 12 percent of Democrats would place blame on Congressional Democrats. So that's why we see Republican leaders and Democratic leaders and President Trump going to their separate corners. But I do think that we are better off than perhaps we were just a few hours ago.

BURNETT: Which obviously is a significant thing to say, you know, when we're hearing at least from Raj Shah at the White House they will not categorically not entertain the idea that, for example, the Democratic Senator Cardin put out there the three or four-day extension. They are just not willing to do that.

But obviously, this relationship between Senator Schumer, Stephen Moore, and the President is very crucial. They have known each other for along time. Trump has been a huge supporter of Schumer. You know, before he was a Republican, he was a Democrat, right? Thousands of dollars to Schumer's campaigns over the past 30 years, more generous in fact it would seen into charity in many years. It turned into love hate, though. Here they are.


TRUMP: Hey, look, I think I'll be able to get along well with Schumer, Chuck Schumer. I was always very good with Schumer. I was close to Schumer in many ways. And you know it's important that you get along.

SEN. CHUCK SCHUMER (D), NEW YORK: I was born in Brooklyn, the same place where Donald Trump's family comes from. Even when he was much younger, you knew that he was going to go places.

TRUMP: I noticed that Chuck Schumer yesterday with fake tears. I'm going to ask him who is his acting coach because I know him very well. I don't see him as a crier.

SCHUMER: The President ought to stop tweeting and start leading.


BURNETT: Steve, will their long-term friendship matter here? They had a meeting today. Will it move this over the line?

STEPHEN MOORE, FORMER SENIOR ECONOMIC ADVISER, 2016 TRUMP CAMPAIGN: Well, welcome to Washington, Donald Trump. I mean, the answer is no, I don't think their past relationship, such as it is, is going to have much impact here.

You know, Erin, I've been in Washington a long time, over 30 years and, you know, it goes back Ronald Regan and Tip O'Neill. And then remember Erin at the Bill Clinton and Newt Gingrich showdown and then, you know, George Bush and Nancy Pelosi. So this is Washington theater, its happened many times.

By the way, a government shutdown on a Friday night would not have much impact. I mean the government is closed on the weekend for the most part anyway. So, this is a lot of three ring circus. But I will tell you this, I don't think the Republicans are the back down here. I think they do have the high ground here.

Their point is, look, you know, we have a disagreement on immigration, it's not solved. This is a big issue for the country. And we're not going to solve it in two hours and we probably not going to solve it in three days. Why don't we pass the budget? We can discuss this for the next four weeks. And by the way, I'm not even sure in four weeks they'll be able to solve it.

BURNETT: Well, I can say I don't see when it happened either.

MOORE: Right. So my point is why shut the government down to come to a decision. We've been debating this issue, about DACA and immigration reform for 15 years. Why do we have to solve it now in two hours? BURNETT: Well, I mean, because it's like an option at the very end is when you get anything done. I mean, you know, they're not going to do it until they have to do it.

MOORE: That's right.

BURNETT: But Keith, look there's one person who cares a lot here. Because Steve has a point, right? When the government closes on weekend, it's not going to be nearly as impact or it was during the week, right? People aren't going to work anyway, people are processing passports and all those other things. But the President of the United States has a party he wants to go to tomorrow night.

And as of last night, until it blew up that he had a party, he was still going even if there was a shutdown and then it's sort of delayed. He wants to go to Mar-a-Lago to this $100,000 to $250,000 ahead to spending what, you know, sort of extra huge bells and whistles you paid for. Is that going to affect his willingness to negotiate?

KEITH BOYKIN, FORMER WHITE HOUSE AIDE UNDER PRES. BILL CLINTON: Well, you know Erin, I hadn't thought about that sort of personal self- interest perspective, but it wouldn't surprised me if that would have an impact on Donald Trump because he does seem to be a transactional figure. I don't think he has this sort of real core beliefs, certainly not with regard to the issues that are play in terms of this government shutdown.

I think Donald Trump's relationship with Chuck Schumer to the extent that it was one or is one, it was never really a friendship. I think Trump gave maybe like $9,000 or something like that to Schumer. It's not a heck of a lot of money for somebody who supposedly a billionaire.

But this is a manufactured crisis. I mean, all of this was completely avoidable if Republicans and Trump had simply done their jobs last fall. It's starting September 5th when Trump revoked the DACA or from President Obama. It continued in September 30th when they allowed the budget to -- the new budget, new fiscal year begin without a budget, and to allow chip to expire.

[19:25:08] So those three actions set in effect basically the week that we have right now, we're down to the final few hours because Republicans failed to do their jobs in September. If they would just have done their job, then we wouldn't be having this crisis right now.

MOORE: I want to clarify one thing because I think a lot of people don't know this. I mean, the children health funding is in this bill.

BOYKIN: I understand that but it took -- but they could have done in September 30th when it expired. Why do they wait until this week to do it?


MOORE: Yes. But, look, I mean this is a big issue for Republicans immigration. And Donald Trump made it very clear during the campaign, he had problems with a blanket kind of amnesty program. And he also made it very clear in the campaign, it was probably number one promise is build the wall and border enforcement. And Republicans are basically saying, look, we probably could get a deal keys on immigration reform if Democrats would show some interest in the border enforcement and building this wall.

BURNETT: Although there is of course a great irony in the fact that he is saying he's going to keep the campaign process in building the wall, Steve, even though he is breaking the most important part of promise which was Americans weren't going to pay for it.

BOYKIN: Right.

MOORE: Touche.

BURNETT: But just for a moment, touche. Mark, also to the point on billionaire generosity being relative, $9,000 may not sound like a lot for a billionaire to a Congressional member but it was the most money that Trump gave to any setting member of Congress over 30 years. So for Trump, it was a lot of money, OK, to give to -- as I say, it's all relative.

But, I mean the point I making, Mark, is that there was -- for these two gentlemen for whatever it is were, it was a significant relationship. Do you think that meeting today mattered at all? You know, since then Senator Heitkamp, Senator Donnelly, both said that they'll go and have vote for the continuing resolution as it is, right? So they went for meeting 11 votes, now they only need eight because they already have Senator Manchin. So they have made progress post that meeting.

PRESTON: Yes, I know. I think that meeting was significant. And at that time I thought I would just be a show but the fact of the matter was it was important I think for Chuck Schumer and Donald Trump who know each other from their days in New York, you know, and of course running in concentric circles. But I do think it was important and I think it's worth noting too right now, I know there's an incredible amount of pressure on Democrats in saying that Democrats are shutting the government. Let's not forget like Lindsey Graham is a Republican and he said, he is not supporting this as well as Rand Paul.

BURNETT: Yes, that's right. And that's why, you know, because they need eight votes, right? And that doesn't mean eight Democrats. You can get there everyone who get there but you got two Republicans who are in the nos right now. Thanks to all three.

And next, last ditch efforts to underway right now to stop the government from closing and we are now just a few hours away. What are the chances lawmakers can do something in that time when they couldn't do it in months and months and months as your guest just said.

And Republicans claiming they have proof of rampant FBI abuse during the 2016 election. Is it true or is it just an attempt to discredit the Russia investigation? We get some facts. (COMMERCIAL BREAK)

[19:30:26] BURNETT: Breaking news, running out of time. President Trump and Republican lawmakers scrambling to avoid a government shutdown. It's a shutdown that less than five hours away from and two Democrats are counting votes and say the procedural test vote on the continuing resolution set for 10:00 tonight still doesn't have the votes needed to break a filibuster. And that number of votes is 60.

Sunlen Serfaty is on Capitol Hill.

So, Sunlen, those crucial vote coming up at 10:00. They've got to have 60 votes. What are you hearing about it?

SUNLEN SERFATY, CNN CONGRESSIONAL CORRESPONDENT: Yes, it appears, Erin, that they do not have those votes. Republicans cannot count on getting 60 to pass that through. And the big question then turns, what next? That has been the question that many lawmakers that I've talked to today have said. They want to know the end game right now, the stage that everyone is in on Capitol Hill. Everyone really is taking a reset that yes, there are some meetings still going on, people are shuttling back and forth, but a lot of people getting pizza deliveries, really hunkering in, pushing towards this 10:00 hour where they're going to have this big vote.

But the realization at the end of that is that this very well will fail. Republicans knew that ahead of time. Likely that will happen tonight. And the question is, what comes next. That's very real question here. And certainly the time here not lost on anyone this late an hour and now around four hours to go until government shutdown. Very real questions about what the next step is here tonight -- Erin.

BURNETT: All right. Thank you very much, Sunlen. And OUTFRONT now the Democratic senator from Delaware, Tom Carper. Senator Carper, you know, look, I know you're under a lot of pressure tonight. You've got this vote coming up at 10:00. They need 60 votes. They are not there yet. Even Sarah Sanders, the press secretary, is tweeting out, now Democrats get to it. Where's your support for military families and others who will be affected by a government shutdown?

Are you a no right now on this preliminary vote or will you be joining others and voting yes?

SEN. TOM CARPER (D), DELAWARE: No, I'm opposed to yet another three or four-week continuing resolution. If I thought it would actually lead us to what we really need, and that is a long-term deficit plan to a budget plan for the year to more significant immigration policy that includes the Dreamers, and if I thought we could do that in the context of just another three or four-week kick the can down the road, I would support that. But what Einstein used to say that definition of insanity is to continue doing the same thing over and over again expecting a different outcome.

And Einstein also said in adversity lies opportunity. When real adversity, there's opportunity here as well. And the opportunity is we'll actually rise to the occasion or the president will rise to the occasion, and we'll do our jobs. We'll do our jobs. That's what we need to do.

When I was governor of Delaware for eight years, we didn't go through this nonsense. We passed balanced budgets every year for eight years. We reduced taxes seven out of eight years. Created a lot of jobs and paid off our debt. Got AAA credit rating. If we can do that in states we ought to be able to do that in the federal government.

BURNETT: Well, I think a lot of people would agree with you on that. But, Senator, let me ask you. I just want to make it clear, you're saying you're a no. You know, earlier today you tweeted -- I'm sorry, earlier -- on Wednesday you tweeted, set the record straight, I'm leaning no on CR. I just want to make it clear, right now you are no? Not a lean. You're a no.

CARPER: I'll be a no. That's correct. Right.

BURNETT: OK. I just want to make sure I understood loud and clear. Look, many of your Democratic colleagues are justifying their no vote because of the Dreamers, right? They say, look, there's about 700,000 of them and they need to be dealt with and dealt with now, and not dealt with in March when the deadline hits.

We just did a poll today, though, Senator Carper, here at CNN and we found 56 percent of Americans say approving a budget agreement and avoiding a shutdown is more important than continuing the Dreamers program. They may want it but having it right now is not worth shutting down the government to them. Are you worried your party is making a mistake?

CARPER: No, I think that's a false option. We don't have to make a choice between one or the other. There's -- we have a moral imperative I think to Dreamers and people who came here not out of their own volition. They ended up coming here at a very young age, grew up here, they love this country and want to continue to stay here. But you know, there is -- we have an economic imperative to keep them here. We've got two million or three million jobs in this country that aren't being filled.


CARPER: We don't have the people, the training, the education, their work ethic, the desire to do these jobs. And at a time that we're looking at that, why would we want to send close to a million people who want to work, who can, who can make a contribution, back to the countries where they're born? That's crazy.

BURNETT: But why are you tying it to this continuing resolution? I mean, I think the American people would agree with you. They want that dealt with. But you don't -- there is no deadline on that, right, until March. You don't have to deal with that now. You are the one who are choosing to tie it to the government shutdown. So you do have the choice of a shutdown?

CARPER: Yes, a lot of people every day are losing their protection. And so the question is, do we just continue to ignore that? And again, this is a false choice to say that we have do one or the other. We can do both.

[19:35:03] We need a long-term budget plan and we need to provide some certainty for businesses and so forth. I mean, one of the things we need to do -- I look at this not just some mortal imperative or what's fair for the Dreamers. I look at it as an economic imperative for our country. We need a good workforce, we need our people who are willing to come to work, and at a time when we have two million or three million jobs, why would we send a million people who want to do those jobs, can do those jobs, want to come work, want to be productive --


CARPER: Why would we send them away? That's stupid.

BURNETT: Right. I'm simply making the point of course that the deadline for that is not imminent as the shutdown is. But let me ask you because you said you're definitely no. You know of course that Senator Manchin is now not the only Democrat who's going to vote for this. Senator Heitkamp of North Dakota, Senator Donnelly of Indiana have also joined the list of Democrats who are going to vote yes. So there's only eight votes shy right now of 60.

Is there anything that would get you on board shy of, including the Dreamers?

CARPER: I'm tired of these continuing resolutions. I don't want to vote for another one. People -- I think people are tired of us kicking the can down the road. I want some certain predictability. If I thought voting for this CR that's been sent over from the House would actually get us to long-term deficit deal and more comprehensive approach on -- a fair approach on immigration that meets our workers needs in this country, I'd vote for it.


CARPER: We've done this before. And again Einstein, the definition on insanity is to continue to do the same thing over and over again, and expect a different result, we can do better than that. We ought to use our brains, we ought to use some commonsense.

BURNETT: Senator Carper, I appreciate your time. Thank you, sir.

CARPER: Thank you, Erin.

BURNETT: And next breaking news Republicans demanding the release of a memo claiming to show FBI missteps during the 2016 election. Is this real? Is this somehow some massive uncovering of a conspiracy? Or is it just trying to undermine the Russia probe?

And new details tonight about Trump's reported encounters with a porn star named Stormy and the secret operation to silence her with cash.

(COMMERCIAL BREAK) [19:40:32] BURNETT: We've got four hours to go until a government shutdown. There's more breaking news on Capitol Hill tonight. The House conservatives are demanding the release of a memo. It's a memo by the House Intelligence Committee chairman Devin Nunes. A memo that details allegations of FBI missteps during the 2016 election.

Democrats counter that this is just a political document and an attempt by the GOP to distract and discredit of its Russia investigation.

Jessica Schneider is OUTFRONT.

So, Jessica, let's start, you know, obviously conservatives, this whole, you know, rallying cry of release the memo, and they have it in some secret room where you can't remove it. You know, they've surrounded it in all kinds of secrecy. What is the real story about the memo?

JESSICA SCHNEIDER, CNN JUSTICE CORRESPONDENT: Yes. So it's kind of Democrats versus Republicans, Erin. So it was written by Chairman Nunes. Republicans who have viewed it they say it demonstrates widespread abuse by the FBI during the 2016 election. Now some of those Republicans want it in turn released to the public.

So this is a four-page classified report. And it comes after Devin Nunes reviewed materials that were provided to him by the FBI and the DOJ. But Democrats are putting it this way. They're saying that his findings are misleading and skewed and it's all just part of the Republican effort to help the White House undercut the Russian investigations.

You know, conservatives, they've repeatedly accused the FBI of relying on the Steele dossier in its own investigations and they want to know how and if the FBI used the dossier to obtain FISA warrants on Trump associates.

And also an interesting note about this, Erin, it turns out that it's not just Republicans who are pushing to make this Nunes report public. Tonight the Twitter tracking tool Hamilton 68 has actually found that Russian linked Twitter accounts are blasting out the hashtag "release the memo," trying to put some backing to this. And WikiLeaks is even offering a reward to anyone who submits that memo to report to its site -- Erin.

BURNETT: Well, look, if there's one thing I will put a bet on is that it eventually gets leaked, but certainly the last thing, if you're Devin Nunes, that you want for your credibility is Russian hack bots tweeting it out.


BURNETT: Because let's be clear, Jessica, it's from Devin Nunes who is one of the president's most loyal supporters and certainly no stranger to controversy.

SCHNEIDER: Yes, he's been surrounded by controversy. There's a lot of tension over Nunes' role on the committee. And that bubbled up when he secretly traveled to the White House back in March. He reviewed classified intelligence that he claimed showed rampant misconduct by U.S. officials when it comes to unmasking. He even briefed the president on what he reviewed but none of that has really been substantiated.

So Nunes after that all bubbled up. He said that he would step aside from the Russia investigation after he became the subject of an ethics investigation into his handling of classified information. But really in the months since, Erin, it's been almost a year now, Nunes has really run his own effort to push the FBI, the Justice Department for all of these documents about the dossier and has been unrelenting leading to this report now -- Erin.

BURNETT: All right. Thank you, Jessica.

And OUTFRONT next, allegations of a payoff, hush money, secret accounts linked to sex. What do they have to do with Stormy Daniels, the porn star on your screen, and Donald Trump?

And hope turning to doubt amongst some of Trump's most loyal supporters. Are they sorry they voted for Trump or not?


MEL MANTERNACH, MONTICELLO, IOWA RESIDENT: Trump pulled the wool over their eyes. And they have most -- and his base has not recognized it yet.



[19:47:44] BURNETT: Tonight sex, sharks, and hush money. And all of this links to, well, new details being reported about an adult film star's alleged sexual encounter with Donald Trump and the lengths for this personal lawyer allegedly have gone to in order to keep it a secret.

The "Wall Street Journal" is now reporting that Trump attorney Michael Cohen set up a private company in Delaware as a cover to pay off the porn star on your screen Stormy Daniels and they did this just a month before the election. It's a company that Cohen has refused to comment on.

So our Brian Todd went to Delaware where the LLC is incorporated to file this report OUTFRONT.


BRIAN TODD, CNN CORRESPONDENT (voice-over): This nondescript office building in Delaware is headquarters of a company reportedly used to hide an alleged $130,000 payment from Donald Trump's lawyer to the porn star Stormy Daniels, all designed to cover up an alleged sexual affair. They "Wall Street Journal" and other news outlets say just weeks

before the election the actress told reporters she had a relationship with Trump after meeting him at a golf tournament back in 2006.

Daniels spoke to journalists at several news outlets about telling them her story but they say she suddenly went silent. The "Wall Street Journal" says at the same time Trump's lawyer arranged the payment to stop her from talking.

Tonight documents obtained by CNN and first reported by "The Journal" show Michael Cohen, Trump's longtime lawyer, set up at least two corporations in Delaware around that time. Including one called Resolution Consultants LLC on September 30th, 2016. Records show he dissolved it a few weeks later. On October 17th, 2016. And the same day incorporated a new entity, Essential Consultants LLC.

The "Journal" says Cohen used that company to make the payoff using a series of elaborate pseudonyms and legal contracts. The company was registered to this address in Dover, Delaware, an office that helps people outside of Delaware create companies here.

Why would Cohen chose Delaware? Experts say the state has few disclosure requirements.

ED RATLEDGE, UNIVERSITY OF DELAWARE: It gives you a way of moving money to wherever you want to move it without necessarily having to say that a particular person sent the money.

TODD: Experts say that fits with this part of an alleged draft settle agreement "Slate" magazine's editor says Daniels texted to him in 2016.

[19:50:05] In it Daniels would be called Peggy Peterson and Trump would apparently be known as David Denison.

Cohen, the White House and Daniels deny any affair ever happened. And Daniels denies getting hush money in a statement sent by Cohen. Cohen, however, has never denied making the payment.

Today the full transcript of a 2011 interview with her was published by the gossip magazine "In Touch" in which she spells out details of an alleged sexual encounter with Trump at a resort in Nevada in 2006. She claims Trump kept in touch afterwards and said he hoped she could be on his show, "The Apprentice," and that one time, quote, "He told me he was going to give me a condo there because they were building a Trump Tower there in Tampa."

When they met for a private dinner in L.A., she says he was watching "Shark Week. He is obsessed with sharks, terrified of sharks." A 2013 tweet from Donald Trump echoes that sentiment. "Sorry, folks, I'm just not a fan of sharks and don't worry, they will be around long after we are gone."


BURNETT: I mean, Brian, I know you are there right outside that nondescript building where people register these sorts of companies. I mean, the Associated Press --

TODD: Right.

BURNETT: You know, what else -- it's pretty stunning that you had to go all the way there to Delaware to find this.

TODD: Right. We came here to this nondescript building here to try to track this company that Michael Cohen set up to funnel money allegedly to Stormy Daniels.

Nobody works here, Erin. That's associated with that company. And this is really just a registering agent for that company and many more. You're talking about the AP report, also the Associated Press reporting tonight that "In Touch" magazine was threatened tonight by Trump's attorney Michael Cohen that he would sue them if they published Stormy Daniels' account of the affair back in 2011 and that they held back. Based on that, Michael Cohen has not gotten back to us with any comment. "In Touch" did get back to us and said they had no comment on that AP report.

BURNETT: Certainly if true, though, it would explain the big mystery as to why they held that interview.

Thank you so much, Brian Todd.

And next, Iowa. A state divided when it comes to the president. Are his supporters in farm country turning on him?


BURNETT: Tonight President Trump hours away from marking the one year anniversary of his inauguration made possible by wins in crucial swing states like Iowa.

[19:55:06] So are the voters who pushed him over the top to victory still into him or starting to sour?

Bill Weir is OUTFRONT.


BILL WEIR, CNN CORRESPONDENT (voice-over): In Monticello, they still wind the clock tower by hand. And still mix politics into their coffee down at Darrell's.

(On camera): It is so great to sit at the table of knowledge in Monticello, Iowa.

(Voice-over): It's a tradition that goes back to Truman. But no president has ever tested the limits of Midwestern politeness like number 45.

(On camera): So this county went for Obama. And then swung over to Trump. Why?

MANTERNACH: Trump pulled the wool over their eyes and they have most in his base has not recognized it yet.

WEIR: You think Virgil has been conned. You think Jerry has been bamboozled.

MANTERNACH: They're so engrained with the crotch, grab and wire.

GERALD RETZLAFF, MONTICELLO, IOWA RESIDENT: Trump wasn't my first choice. However he's doing a hell of a good job. He's playing three level chess versus everybody else playing checkers.

GARY FISHER, MONTICELLO, IOWA RESIDENT: The ones that support him are either greedy or bigots or they just don't see it yet. If the vote were taken today, I think it would be different.

WEIR: You think so?

MANTERNACH: If it wouldn't be for the electoral college, he wouldn't have won.


MANTERNACH: Can you sing too?

RENEE ADAMS, HOG FARMER: We run 800 acres of corn and beans and then we do bale some hay. Our kids actually buy their own 4-H animals, they do the chores for them.

WEIR: That will teach you, right?

ADAMS: That teaches you, yes. Yes.

WEIR (voice-over): Out at the Adams farm --

(On camera): Did you all vote for President Trump?



WEIR (voice-over): The family Republican shows little voters remorse.

UNIDENTIFIED MALE: I think he's doing a decent job. I think we need to give him a chance.

ADAMS: He went to the American Farm Bureau Federation meeting, you know. I haven't seen that from other presidents.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Throughout our history, farmers have always, always, always led the way.

WEIR: Those words played really well around here. But his actions could end up hurting these folks. His nominee for chief scientist at the Department of Agriculture wasn't a scientist and then got tangled in the Mueller investigation. He scrapped an Obama rule that would have protected small family farms against big corporate meat packers and he is threatening to tear up the trade agreement that keeps a lot of these farms alive.

ADAMS: Now with NAFTA, that's another story. You know, that does scare us pretty bad.

WEIR: You guys would go bankrupt?

ADAMS: We would go bankrupt, yes.

UNIDENTIFIED MALE: I'm sure he has a plan. You know, if he does pull out, I don't know what that plan is.

WEIR: Somebody was telling me this town used to be called the Pittsburgh of the Prairie, because there are so many factories.


WEIR (voice-over): And there are worries that Oak Street Manufacturing, a mom and pop maker of restaurant furnishings.

BAGGE: We're hopeful as far as the tax reform. We're positive about that. We have grave concerns about his actions verbally.

WEIR (on camera): Like what?

BAGGE: Some of the statements that he makes. There's just a lot of disrespect for a large number of people.

MANTERNACH: As a Republican, he was worried about his grandchildren paying the national debt. It doesn't seem to make a bit of difference anymore.

UNIDENTIFIED MALE: We'll have to have another Obama come and clean it up.

WEIR: Yes.


UNIDENTIFIED MALE: Then we can double our debt again.


UNIDENTIFIED MALE: But he got into the prosperity you're having now.

UNIDENTIFIED MALE: Yes, yes. We'll give him all the credit for the stock market going up, yes, you bet. You betcha. Get your head out of your butt, man.


WEIR: Is there a safe word when things get too heated?

JERRY HAHN, MONTICELLO, IOWA RESIDENT: What's a good time to cut your rose bushes?

WEIR: And that's the safe word? (LAUGHTER)

HAHN: We got into it one day and realized that I was worried so that's the safe word.

WEIR (voice-over): So one year into Trump, a state he won by almost 10 points, is producing a bumper crop of worry, even among those who love him most.


WEIR: As for the hot button topic of the day, immigration, the vast majority of the folks I met here support DACA and oppose building of the wall. Now that's anecdotal, not scientific, but just last month, the "Des Moines Register" did a poll and found that 60 percent of Iowans disapprove of the job the president is doing. An approval rating worse than the national average of pretty stunning job considering his epic win here.

But if any of that information touches off a very heated on your set, Erin, remember the safe word is rose bushes.


BURNETT: It is indeed. Thank you so much, Bill Weir.

And thanks to all of you for joining us. "AC 360" starts now.