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State of the Union

Is Rudy Giuliani Helping or Hurting President Trump?; Interview With California Congressman Adam Schiff; Interview With Trump Senior Adviser Kellyanne Conway; Interview With Missouri Senator Roy Blunt; Stormy Daniels Trolls President Trump, Calls For Resignation On "Saturday Night Live"; Trump Knew About The Hush Money Payment But Denied It; Pence, Not Trump, Would Be Invited To McCain's Funeral; President Trump's Pick For A Doctor In This Week's "State of the Cartoonion". Aired 9-10a ET

Aired May 06, 2018 - 09:00   ET




JAKE TAPPER, CNN ANCHOR (voice-over): Legal disarray. President Trump's new lawyer is facing questions.

RUDY GIULIANI (R), FORMER MAYOR OF NEW YORK: The fact is, there is no way this is a campaign finance violation of any kind.

TAPPER: After publicly contradicting the president's own version of events.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: He will get his facts straight.

TAPPER: Is Rudy Giuliani helping or hurting his new client? We will ask counselor to the president Kellyanne Conway next.

And credibility crisis. A new report reveals President Trump knew about the Stormy Daniels hush money payment before his denials.

QUESTION: Do you know where he got the money to make that payment?

TRUMP: No, I don't know.

TAPPER: Why does the president have such a problem with the truth? Republican Senator Roy Blunt will be here.

Plus: looming showdown. President Trump says he wants to talk to special counsel Robert Mueller.

TRUMP: I would love to speak.

TAPPER: But he continues to try to undermine the Russia investigation.

TRUMP: Phony Russia witch-hunt.

TAPPER: What is Mueller's next move?

We will talk to the top Democratic on House Intelligence Committee, Congressman Adam Schiff, ahead.


TAPPER: Hello. I'm Jake Tapper in Washington, where the state of our union is trying to get the story straight.

President Trump is in Washington, perhaps watching television as we speak, as his personal lawyer, Rudy Giuliani, tries to clean up a potential legal mess that he made for his client over that hush payment made to adult film actress Stormy Daniels.

But Giuliani's cleanup act is already raising new questions, Giuliani telling ABC News in a new interview this morning that Michael Cohen may have paid off other women if it were -- quote -- "necessary."

The former mayor is also stressing the hush money payment had nothing to do with the campaign.


GIULIANI: I'm not an expert on the facts yet. I'm getting there. There is no way this is a campaign finance violation of any kind, nor was it a loan.

It was an expenditure. And this expenditure would have been made whether he was running for president or he wasn't running for president.


TAPPER: This as President Trump faces new questions about his version of events.

A "New York Times" report says the president knew about the hush money payment months before he denied knowing about it to reporters on Air Force One in April.

Here to help us clarify some of these questions is the counselor to the president Kellyanne Conway.

Kellyanne, thanks so much for being here.


TAPPER: So, the president's lawyer just told ABC News this morning that he didn't know whether President Trump had made similar payments to other women, but -- quote -- "I would think, if it was necessary, yes, Michael Cohen would have made similar payments."

You were the campaign manager during that time. Do you know of any other payments like this one?

CONWAY: I do not. They didn't cross my desk as campaign manager. And I would also tell you that I'm happy to answer these questions,

but I have limited visibility into what Mayor Giuliani is talking about, because, politely, he is the president's counsel. I am the president's counselor.

I will tell you, though, in speaking with the president just yesterday, when the president said no on Air Force One, he was talking about he didn't know when the payment occurred.

TAPPER: Mm-hmm.

CONWAY: It was a very-fast moving exchange between him and Catherine Lucey of the AP, I believe.

And so he is saying he didn't know about it when the payment occurred. He found out about it after the fact.

TAPPER: All right, let's play this. Let's play the exchange, if we can.

This is in April President Trump being asked by the AP, did you know about the $130,000 payment to Stormy Daniels. Let's play this exchange.


QUESTION: Did you know about the $130,000 payment to Stormy Daniels?

TRUMP: No. No. What else?

QUESTION: Then why did Michael -- do you know where he got the money to make that payment?

TRUMP: No, I don't know.


TAPPER: So, "It's did you know about the $130,000 payment to Stormy Daniels?"


So, you are saying that he didn't know at the time.

CONWAY: At the time.


TAPPER: But then the next question -- or a subsequent question, "Do you know where he got the money to make that payment?"

"No, I don't know."

That's present tense.

But he did know. CONWAY: You have to look at the president's three tweets.

Again, I'm going to relay to you what the president has told me, which is the best I can do. He didn't know it at the time that the payment occurred.

Separately, if you look at his three tweets this week, he said a lot in his three tweets on Thursday morning, Jake. I'm sure you have them or people can pull them up to themselves. It's democratization of information. The president tells everybody at the same time what is on his mind.

In those tweets, he went back and repeated that this was a private arrangement, and there was an NDA involved, and that he is saying these are false claims, and that Ms. Daniels and her attorney have violated that NDA. This is the president speaking.

And the president says it is a very typical course of action for famous people or people who are wealthy. And the president has said that he did this to save his family the embarrassment.

I will tell you, as the campaign manager for the winning part of the campaign, I was not made aware of this whatsoever.

And I would push back on this whole notion that, well, what if this had come back before the final debate? All of it was out there. The president at the rally...


TAPPER: The Stormy Daniels story wasn't out there.

CONWAY: Well, but there were all these what the president referred to as false accusers. They had plenty of airtime here and elsewhere. They were lining up.


And he would address them at his rallies. He was doing six, seven different stops a day.

And I will tell you, at the White House, when I show up to my job every day, this is not on -- in my policy portfolio.

TAPPER: But those are different. First of all, you have more than a dozen women accusing the president of sexual assault or sexual harassment.

That is different from a porn star who claims...

CONWAY: And he's...

TAPPER: ... that she had a consensual affair with the president...

CONWAY: He's denied that.

TAPPER: ... just months after the president's son was born.

CONWAY: Well, he has denied all of that. But the point I'm making to you is talking about a campaign...

TAPPER: Do you believe him? Do you believe him? Do you believe that he did not have an affair with Stormy Daniels?

CONWAY: I believe -- yes, he's denied it. So, I have no reason to believe otherwise.

I don't know -- he has said he hasn't.

But that has got nothing to do with my job in the White House, his job in the White House, or, frankly, the campaign. Now, you have had the president, his lawyer...

TAPPER: Well, it does if he made a payment so as to affect the campaign.

CONWAY: He has said -- he has said he hasn't. And...

TAPPER: But if the -- it was -- they had this alleged affair in 2006, and he didn't pay her until October 2016. There is a decade there that he could have paid for.

CONWAY: He's telling you that he didn't pay her, his attorney did.

I'm telling you that his attorney had discretion, as far as I can see. His attorney had discretion over funds and made the best call that he...


TAPPER: When did the president find out that Michael Cohen had made this payment?


CONWAY: That, I don't know. But I know that the president has said he didn't know it when it occurred. And that is the no on Air Force One.

Now, respectfully, I know that CNN has invested a lot in this story and in Ms. Daniels' attorney, Mr. Avenatti. He has appeared on your network over 65 times in less than two months. That's a choice that you make.

But when I look at the CNN polling, Jake, I don't see this on there. I see the economy and immigration and health care. I see ISIS. I see historic talks in North Korea. We are on the precipice of ending decades of war between North Korea and South Korea, owing in large part to this president's leadership and him involving other leaders in that entire region.

The JCPOA is coming up now, the Iran nuclear deal, which this president said from the beginning... TAPPER: Yes, these are all issues we talked about and continue to

talk about. And we would have liked to have...

CONWAY: Well, not as much.

TAPPER: Last week, when the North Korea thing happened, we would have liked to have Bolton or Pompeo on the show.

CONWAY: I hope they will come here.

TAPPER: They refused to do the show.

I do think it is important, though, whether or not the president of the United States tells the truth to the American people. And I'm sure you agree with me.

"The New York Times" is reporting that the president knew months before the April denial that Michael Cohen had made this payment. This story broke in January, right?

CONWAY: Let me repeat -- let me repeat...

TAPPER: The story broke in January Michael Cohen made this payment. Are you telling me that President Trump by April still hadn't gotten to the bottom of it?

CONWAY: Let me repeat that the no refers to no at the time the payment occurred, which I read is in October of 2016.

So, the whole world found out about it, I guess, in January of 2018.

TAPPER: But the second question is, do you know where -- it was present tense. Do you know the money came from? And he said, "I don't know."

But we are being told now by "The New York Times" and others, including Rudy Giuliani, that the president did know. And it is important that the president tell the truth to the American people, yes?

CONWAY: I think, there, you want to look at the president's tweets, where he says through reimbursement.

You have got to look at his tweets, because he responds to that. And that's -- honestly, Jake, that's the best I can do, given my limited -- limited visibility in the legal matters and my very big visibility in the policy portfolio and, honestly, the great job this president is doing on many fronts that Americans tell those opinion leaders and pollsters they care about.

You can't argue with a 3.9 percent unemployment rate. You can't argue with the lowest unemployment rate in so long among African-Americans, if ever, Hispanics, women.

TAPPER: But here is the issue, Kellyanne. But, Kellyanne, this week, the White House really started to lose the support of conservatives who want to support the president, who believe in President Trump.

CONWAY: His numbers are up among evangelicals.

TAPPER: The "Wall Street Journal" editorial board, very supportive of President Trump on everything except for trade, writes -- quote -- "Mr. Trump is compiling a record that increases the likelihood that few will believe him during a genuine crisis, say, a dispute over speaking with special counsel Robert Mueller or a nuclear showdown with Kim Jong-un. Mr. Trump should worry that Americans will stop believing anything he says."

This is directly because of him not telling the truth, not being straight with the American people about this payment.

And, in addition, we have had people on FOX News Channel who are generally very supportive of the president saying to the president, to the television screen, you have to tell the truth. Stop doing this. You are eroding credibility.

As the counselor to the president, aren't you concerned about this?

CONWAY: I am concerned that you are not listening to the news I just broke, which is that the no refers to when the payment occurred. That's very important here.

This was a fast-moving exchange. I asked the president what he meant. And he said, "I didn't know about it when the payment occurred."

I think you are overcomplicating that very simple point.

TAPPER: You think that answer was as honest and open -- if that is the truth, he was talking -- if that is the truth, he is saying, oh, I didn't know it at the time in 2016, when the payment was made, do you think the president was as honest and transparent and open as he should have been?

Because he could have said, I didn't know about it at the time, but, subsequently, I found out about it -- about it, and when he asked, do you know where the money came from, do you know, present tense, he could have said, yes, I reimbursed him.

CONWAY: But, Jake, this is -- respectfully, this is what always happens, is everybody has an idea about how the president should -- how he should speak, how he should answer, the words he should have used.


TAPPER: Honestly. He should speak honestly.

CONWAY: No, no, no, he spoke honestly. He said no, which refers to when the payment occurred. But let's also be honest to your viewers, who you know full well are

so -- many of them are grateful that he is in that job because they have their job.

You are denying the five million American who have received bonuses raises for both because of a tax cut that your network continued to insist could never -- can never get through and, if it did, it would only benefit the wealthy.

Go tell that to people you and I grew up with outside of Philadelphia who are happy that he is the president because they have more disposable income. They have less regulatory burden.

TAPPER: We cover the tax cut. And I never said...


CONWAY: Not very much.

TAPPER: I cover the tax cut.

CONWAY: Small Business Week last week, 80 percent of small businesses have less tax burden now.

TAPPER: I have covered it a lot.

CONWAY: Gina Haspel, first female...

TAPPER: Nobody undermines the president's message more than President -- nobody undermines the president's message more than President Trump.

CONWAY: Well, I'm here to amplify...


TAPPER: President Trump puts out a tweet last week talking about how the unemployment rate is 3.9 percent, and he can't even stay on message in a 10-word tweet.

By the end of it, he is talking witch-hunt.

CONWAY: Well, maybe it is not -- excuse me -- maybe it is not your message, but his message is the 3.9 percent. That's the message Americans...


TAPPER: So, why does he undermine it with witch-hunt?

CONWAY: Those facts and figures -- I think Judge Eliot -- excuse me -- T.S. Ellis -- great poet -- T.S. Ellis in Virginia really said it best.

He is not a political figure. He has no skin in this game, except the law. And he really brushed back the Mueller folks by just saying, excuse me, have you burned through your $10 million budget yet? Where is this going?

Because this is actually to impugn or assault or indeed impeach or something else the president, that is not what this was supposed to be about.

A lot of Americans agree -- and you know that. I hear from people who didn't even vote for Donald Trump regularly...

TAPPER: Right.

CONWAY: ... Jake, that they just want the guy to be able to have the space to do his job. And his job includes saying that the Iran nuclear deal was a bad deal from the beginning, that it gave out too many benefits, too much cash for the...

TAPPER: Does his job include lying to the American people?

Does he -- do you think that his job includes lying to the American people? Because he continually does so. And he undermines his own administration when he does so.

CONWAY: Jake, he does -- he does many things.

You just want that -- respectfully, you just want that to go viral. You want to say the word "President Trump" and "lie" in the same sentence.

TAPPER: No, I want -- I would like him to stop lying, quite frankly.


CONWAY: Here's what doesn't lie. Here -- here -- here are some facts and figures that you should start treating your viewing audience to, the 20,000 new Apple jobs.

If Tim Cook could have brought those to this country while his ally...


TAPPER: I understand you don't want to talk about the president's credibility.

CONWAY: Oh, no, no, no, I have already talked about it for five minutes. What I'm telling you is, his credibility...

TAPPER: Do you think there's a credibility crisis in this White House?

CONWAY: No, I don't, because I know that you have the screaming graphics that says it. But you had screaming graphics that talked about Russian collusion too. Those are gone. And now we are talking about this.

This -- excuse me -- this...

TAPPER: I don't know -- I don't know what is gone in terms of the Russia probe.

CONWAY: The sheer volume and velocity alone of what this president accomplishes and what he puts on the table, in just one breakneck week, he has got a new secretary of state who is out there saying, our job -- his job, as the chief diplomat for this country, is to make sure Iran is never nuclear-capable.

And that is why this president has serious questions about the JCPOA. That is why, when he struck Syria a couple weeks ago, he said it was also -- we said it was also a message to Iran and Russia, who are helping Assad.

TAPPER: Which we covered.

CONWAY: Does it bother you at all that the American press corps says this president is not tough enough on Russia, and the German press corps in the East Room a week ago Friday asked Chancellor Merkel if she is concerned at how tough President Trump is being on Russia?

People care that the regulations are lower.


CONWAY: They care that Israel is in the crosshairs, our greatest ally...


TAPPER: And they also care, and they want the American president to tell them the truth.

CONWAY: And we talked about that.

TAPPER: They want the president, the American president, to tell them the truth.

CONWAY: They know the numbers don't lie. They know 3.9 percent...


TAPPER: You keep talking about the unemployment rate. And it's fantastic. And we heralded...

CONWAY: Because it matters to people.

TAPPER: It matters to people, absolutely.

CONWAY: It matters to people there are over three million new jobs created.

TAPPER: It also matters to people -- it also matters to people that the president tell them the truth.

CONWAY: He is telling them the truth.

When he stood up a week ago and said, guys, Sunday -- America, Saturday is National Take Back Day, bring in your unused, expired or unwanted pills, and we collected a record number -- you can fill up three Boeing 757s with the pills.

TAPPER: He went on Twitter and talked about the three American hostages.

CONWAY: Talked about a lot of things, yes.

TAPPER: He talked about the three American hostages and how the Obama administration had tried and failed to get them free.

Two of the three were detained while Donald Trump was president. There is no way that Obama could have gotten them released, because they were captured when Trump was president.

That is just a lie. And that tweet is still up there. And that is just symbolic of the fact that this president gets in his own way all the time, even when there is something good potentially happening.

CONWAY: See, you are focusing on the tweet, and we are focused on the hostages. And...

TAPPER: But why is he blaming Obama for hostages that were taken while he was president?

CONWAY: Jake...


CONWAY: He is probably thinking about President Obama and the terrible Iran nuclear deal and the terrible -- what he did -- what he failed to do in North Korea.

TAPPER: So, why not just tell the truth?

Or when someone says...

CONWAY: The truth is -- here is the truth about North Korea.

TAPPER: Those -- two of those three were taken -- two of those three hostages were taken when you were president, so maybe we should take down this false tweet.

CONWAY: And all three could well be released while he's president. That's the key.

TAPPER: And God bless, and I hope that happens.

CONWAY: And he...

TAPPER: But why lie about it?

CONWAY: Well, if you hope it happens, let's cover a little bit. Excuse me. Let's cover a little bit.

TAPPER: I'm waiting for it to happen. CONWAY: What do you think is the most important thing going on in North Korea now?

I would argue it's the fact that North Korea and South Korea literally have come together, that North Korea has agreed to certain conditions, that the time and date -- the date and the place for this meeting is already in information.


TAPPER: And we will cover that summit, absolutely.

CONWAY: Well, but cover it now. Show that we want -- that we want complete, verifiable and irreversible denuclearization, that Kim Jong- un has already promised to make certain moves.

TAPPER: We do.

CONWAY: And it would be a great gesture of good will to get these hostages released.


CONWAY: But, look, the same -- the same fact-checking at "The Washington Post" that everybody here loves to quote, they gave -- they -- they showed some whoppers by President Obama.

Now, you mentioned President Obama. I didn't. I didn't mention the woman who...


TAPPER: I mentioned Obama because Trump mentioned Obama.

CONWAY: But he had -- no, no, no.

TAPPER: But we...

CONWAY: He had a lot of whoppers that mattered to people, when he said he came right after -- out of Benghazi and said it was an act of terrorism. No, he didn't.


CONWAY: No, they didn't.

TAPPER: Yes, we covered them at the time. We absolutely covered them.

CONWAY: No, they didn't. That you can keep your plan.

TAPPER: OK, we have to...


So, look, every president is looked upon for everything they are communicating to the American people.

The president's approval ratings are up. The -- the -- I think the right direction number is up, because people see progress and security.

And I would say to you, they are also tired of him being picked upon every single day. What you are telling America is important to them is not what America is telling your pollsters is important to them.

TAPPER: OK, Kellyanne Conway, thank you so much.

CONWAY: Thank you for having me.

TAPPER: We appreciate your time.

How are questions about President Trump's credibility affecting lawmakers in his own party? We will talk to the top Senate Republican Roy Blunt next.

And the president's lawyer says the special counsel's team is baiting the president to lie. Is this new offensive strategy to undermine the Mueller probe working?

The top Democrat on the House Intelligence Committee, Adam Schiff, will be here to answer questions about that.

Stay with us.



TAPPER: Welcome back to State of the Union. I'm Jake Tapper.

President Trump says one thing, his aides say another, and then the president's own story changes.

As Republicans in Congress are trying to maintain their majority this fall, is the president facing a crisis of credibility? Could it hurt the party?

Joining me now is Republican Senator Roy Blunt of Missouri. He's a member of Republican leadership in the Senate. He also serves on the Senate Intelligence Committee.

Senator Blunt, thanks so much for being here. Welcome to STATE OF THE UNION.

I don't think I have had you here before.

SEN. ROY BLUNT (R), MISSOURI: No, I have been able to avoid it up until now.


TAPPER: Well, let me ask you a question in that spirit. (LAUGHTER)

TAPPER: Does it bother you -- does it bother you when President Trump is not honest? Does it bother you when he says things that are clear, demonstrable falsehoods to the American people?

BLUNT: You know, he communicates differently than I do or than almost anybody else ever has.

I will tell you, though, I was in Missouri all week. I did news conferences in 10 different cities all over the state. I saw virtually every TV camera in the state during that -- those 10 cities.

Not a single person asked about President Trump. We were talking about year-round Pell. And we were in the middle of a pilot project where we are treating behavioral health like all other health, more money to National Institute of Health than ever before.

And President Trump's part of that. But I think people are much more concerned about the economy and job preparation. And there are plenty of chances for every reporter to ask a question about President Trump. Nobody did. And...

TAPPER: Well, I will make up for it.

BLUNT: ... people are not talking about...


TAPPER: Let me ask you this.

Does it matter if the president of the United States lies to the American people? The majority of the American people do not find him honest and trustworthy. That is a problem.

Doesn't that get in the way of the agenda? And, as an American, wouldn't you prefer to have a president who you don't have to worry that what he says is just demonstrably false, such as when he says two of the hostages that were taken were taken -- that are in North Korea were taken under Obama, when two of the three were taken while he was president?

BLUNT: Well, you know, that Trump persona has not changed since the campaign.

TAPPER: Does it bother you, though?

BLUNT: It would bother me less if we weren't getting things done.

What the regulators are doing, I think the tax package, better than I would have expected. I think the foreign policy, the president was left with lots of problems. We had about eight years where we acted like the United States of America was basically any other country in the world. And a lot of things got off track during that eight years.

I think the president stepped in, in a way that has helped that pretty demonstrably. Korea, what may happen in the next few days with Iran, all those are more important than whether the president remembers when hostages were taken in Korea. The important thing there is to get hostages out of Korea.

TAPPER: I agree with you.

But the president -- I mean, the "Washington Post" fact-checker has identified more than 3,000 lies that he's told since he has become president of the United States. They say he is taking -- making up to nine false statements a day.

When President Clinton lied to the American people, a lot of Republicans got very upset about it. Democrats said, well, the country is doing great, let's ignore the fact that he's lying.

Isn't there are a more important issue here? Yes, it is great that the economy is doing better. And I understand what you are talking about in terms of his accomplishments and the deregulatory agenda that you like.

BLUNT: Mm-hmm.

TAPPER: But isn't it important for a president of the United States to tell the voters the truth? Isn't there something that undermines democracy when a president lies so often?

BLUNT: Well, I think the way the president communicates, whether he intends to mislead the facts, mislead people, or just doesn't have all the facts in his mind at the time, he is a -- very accessible to the press. His team is very accessible to the press.

TAPPER: He hasn't had a full press conference since February 2017.


BLUNT: Well, how many times did he respond to the press last week? I saw a significant number of times where gets off the plane, gets on a plane, answers questions, lays out whatever he is thinking at the time.

But the more important thing, I would suggest, is doing what you say you are going to do when you're elected president. And most of that, you're right, I am supportive of. I don't think the stated trade policy is a policy that is very helpful to us. But we will see where we get at the end of the road on that.

TAPPER: All right. Well, let the record reflect that I do think it is important whether or not a president tells people the truth.

And I'm guessing that, during the President Oprah administration, you might have some thoughts on that too.


TAPPER: I do want to ask you about North Korea, because you're on the Senate Intelligence Committee. And we have been told that there is progress in getting these detainees out of North Korea. What can you tell us about that?

BLUNT: I don't think I can tell you much about that.

I can tell you that, in the last two years, even in the last six months of the Obama presidency, North Korea has probably taken more time, and we have had more concern about that than virtually any other issue.

We have let North Korea get to where they are likely in a very dangerous position vis-a-vis the neighborhood and the world. And something needs to be done about it.

TAPPER: I want to ask about your home state of Missouri, where the Republican legislature has called for a special session to consider impeachment for the Republican governor, Eric Greitens, who is facing two felony charges.


BLUNT: Right.

TAPPER: A woman says she was bound and blindfolded, coerced into oral sex, threatened with a photo of the encounter as blackmail. The governor denies all of this.

You are one of the few statewide politicians and perhaps the most prominent politician period statewide, and you have not called for him to resign. You have kind of stayed out it.

Does this suggest that you believe Governor Greitens and his side of the story?

BLUNT: No, it does suggest that, for all the time I have been in the Congress, one of my rules was try not to give much advice to people in Jefferson City.

There's no question that, if the governor did the things that he is alleged to have done involving this woman ,it's reprehensible. But there is a process where all facts get to be laid on the table. There is a court case that starts next week.

As you just pointed out, the legislature has -- is now looking at the action they could take. So, there is both a judicial and a legislative remedy that I don't necessarily improve on by getting involved in it. And we will see.

I think -- I have confidence that both of those will lead to a result that takes all the facts and we see what happens.

TAPPER: What does your gut tell you about whether or not he is guilty of this?

Because, certainly, a lot of other people, including Josh Hawley, who is running for the Senate, Claire McCaskill, whom he is running against, they have said they want him to resign.

What does your gut tell you?

BLUNT: Well, my gut tells me, when people elect somebody as governor, particularly people, when they elect somebody as governor who spent his whole time running for office talking about how bad the current politicians were of both parties, that you need to let the process work its way out before you reverse what the people have done.

I think both of those forums will likely put all the facts on the table and reach whatever result those facts lead to. I don't think we know everything we need to know yet. But I do think we know enough to be very concerned about what we do know.

TAPPER: All right, Senator Blunt, thank you so much for joining us. Appreciate it.

BLUNT: Thank you.

TAPPER: Welcome again.

A stunning rebuke to the special counsel's Russia investigation, a judge accusing Robert Mueller of having only one target in mind, President Trump.

We're going to ask Democratic Congressman Adam Schiff if that judge might have a point.

That's next. Stay with us.



TAPPER: Welcome back to STATE OF THE UNION. I'm Jake Tapper.

The president's new lawyer, Rudy Giuliani, unveiling a more aggressive tack against the Russia investigation, raising questions about investigators' motivations and about whether the president will cooperate.


GEORGE STEPHANOPOULOS, ABC NEWS: And the president said again on Friday that he wants to speak with Mueller, answer his questions.

So, are you prepared to make that happen?

GIULIANI: Not after -- not after the way they have acted. I -- I came into this case with the desire to do that. And they just keep convincing me not to do it.


TAPPER: That's as President Trump and his legal team are seizing on new questions about the Mueller probe after a judge said that Mueller's team is really after one goal, taking down President Trump.

Here now, Congressman Adam Schiff. He's Democrat of California, the ranking member on the House Intelligence Committee.

Congressman Schiff, thanks for joining us.

You just heard the president touting that criticism from a federal judge about the investigation on Friday before the NRA, saying that Robert Mueller is ultimately only interested in evidence of wrongdoing by the president himself.

The president accurately quoted the judge and the CNN story about the judge. Is the judge wrong?

REP. ADAM SCHIFF (D), CALIFORNIA: Well, I'm not sure that it is germane, for example, for the judge to be asking how much Bob Mueller has spent on the investigation.

It is appropriate to ask about the scope of what Bob Mueller is doing. But he is well within the scope of his jurisdiction in charging Manafort and Flynn and the others.

In particular, I think we have to recognize that Mueller works for the Justice Department. And any case that arises from the Russia investigation is either going to be prosecuted by him or it's going to be referred out to another attorney in the department. But it's going to be prosecuted.

And in a money laundering situation, here, where you have a Russian oligarch involved, and Manafort during the campaign trying to get money from this Russian oligarch and offering information on the campaign to get it, it is clearly within the scope of his responsibilities.

And if there is other money laundering that he learns about at the same time that may or may not involve Russians, then the issue for Rod Rosenstein and Bob Mueller is, does it make sense, is this part of a coherent money laundering conspiracy, to try that all in one case, rather than bifurcating it and have a separate prosecutor and a separate courtroom having to present much of the same evidence?

So, I think Mueller is well within his jurisdiction. I can understand the judge asking certain of these questions, although some seem to be non-germane to the legal issues involved.

TAPPER: Well, with all due respect, sir, the judge is basically saying to Mueller and Mueller's team, you don't really care about Manafort and money laundering. You're only trying this case to try to get Manafort to flip on President Trump and give incriminating information about President Trump.

Mueller could have referred -- as you suggested, he could have referred this case to another set of legal circumstances, as he did with the Michael Cohen case in the Southern District of New York U.S. attorney. But the judge here is saying, you don't really care about this. You

are just trying to get Trump and, for that reason, I'm wary of the case.

Doesn't that concern you, that a judge would think that?


SCHIFF: Well, it does concern me if it influences the judge's review of the facts and the law. That seems to be the judge questioning the motives of the special counsel.

Here, the special counsel, I'm sure in discussion and consultation with Rod Rosenstein, is deciding which of the cases that have arisen from his investigation he should try personally and which should be farmed out to others. That's how the process should work.

And while it's certainly within the judge's prerogative to ask threat questions, I don't think it really bears on the legal issues. And so I think that Bob Mueller will prevail, in the sense of being able to go forward with this litigation. I don't think there is really any legal question about that.

But, yes, it is concerning that the judge would express this opinion.

TAPPER: The president's lawyers have been wary of letting Mueller talk with President Trump. But sources tell CNN that Mueller has already raised the notion of a subpoena.

The president's lawyer Rudy Giuliani argued just this morning in an interview with ABC News that President Trump would not need to comply with any subpoena.

Is there any circumstance in the world in which President Trump could dodge the subpoena?

SCHIFF: No. He is going to need to comply with a subpoena. If they take that case to court, they are going to lose.

But, look, I have to say I'm a little taken aback by this new lawyer Giuliani's strategy here. His legal defense for the president seems to be a bit orthodox, and start out by saying, you can't believe the president of the United States. That is our defense. So, when he says things, you have just got to discount them, and, more than that, trust me, this wasn't a violation of campaign laws.

Neither one of those things is pretty persuasive. And other things that Giuliani said in his maiden voyage as the president's new lawyer were deeply hurtful of the president's case, by saying that the Russia investigation, the failure to clear him and announce publicly he wasn't a suspect is the reason why Comey was fired.

All of these things are deeply hurtful to the president's case. And notwithstanding the efforts at damage control, I think this is a very unpromising strategy. TAPPER: I want to move to news that President Trump was reportedly

aware of that hush money payment by Michael Cohen to Stormy Daniels, even though the president told reporters just last month that he didn't know about the deal or where the money had come from.

The president's lawyer Rudy Giuliani told "The New York Times" on Friday that this might be a political problem for President Trump, but it was not a legal problem.

You are a former federal prosecutor. Is there a legal issue here?

SCHIFF: Well, there is a legal issue, if the president, his credibility is thrown this much into question.

Then any statements that he might make in the future about what he knew or when he knew it or the purpose of these payments are not going to be believed by a trier of fact. So, it does affect his defense.

But, more broadly, Jake -- and this gets to point you were making with Kellyanne Conway -- what Kellyanne Conway and Sarah Huckabee Sanders and, before her, Sean Spicer are doing, in taking these abundant falsehoods that come out of the White House and trying to weave them into some alternate truth, is enormously corrosive of our democracy.

Quite separate and apart from the president's legal jeopardy, just calling into the question there's -- whether there is an objective truth is so damaging to our democracy.

And I think that the president and his staff do a tremendous disservice to the country when they just weave fib after fib and try to feed it to the American public.

TAPPER: Well, that is the political question. But, of course, it is not against the law to lie to the American people.

In terms of the law, here is what it says -- quote -- "A loan is a contribution at the time it is made and is a contribution to the extent that it remains unpaid. A loan, to the extent it is repaid, is no longer a contribution."

We are now told by Rudy Giuliani that President Trump paid Michael Cohen back. Plus, he has already reported millions in donations to his own campaign, which he's allowed to do.

What is the legal problem here? I understand the political problem. I understand the corrosive to American discourse and democracy problem, but what is the legal problem?

SCHIFF: The legal problem for the president is, telling false statements about this is evidence of a consciousness of guilt.

Why would the president be issuing false statements about what he knew and when he knew it and what he said on the plane? Seemed abundantly clear he was denying knowledge of this payment, both past and present. Why would he be doing that unless he was aware that what he had done was wrong, what he had done was a violation of campaign law? So, that is the legal jeopardy for the president. Yes, he can lie to the public, and he can't be charged with lying to the public. Now, if he lies to Bob Mueller, it is a different story.

But these public statements by the president that are demonstrably false do demonstrate some consciousness of guilt. And if I were the prosecutor in the case, I would certainly introduce these false statements as evidence against the president.

TAPPER: Congressman Adam Schiff, Democrat of California, always good to see you, sir. Thanks so much. Appreciate it.

SCHIFF: Thanks, Jake.

TAPPER: You haven't seen Stormy Daniels act or if you're just saying you haven't, she made her "Saturday Night Live" debut last night. What you missed up next.

Stay with us.




ALEC BALDWIN AS DONALD TRUMP: Just tell me what you need for this to all go away.


BALDWIN: I solved North and South Korea, but can I solve us?

DANIELS: Sorry, Donald. It is too late for that. I know you don't believe in climate change but a storm's is coming, baby.


TAPPER: Stephanie Clifford aka Stormy Daniels showing the acting chops that led her to adult films, I suppose.

Our panel is with me. Senator Santorum, let's start just with the basic idea of the scandal. Forget Stormy Daniels' performance on SNL if you would.

There have been a lot of conflicting stories about what the president knew about this payment, when he knew about the payment. You heard Kellyanne Conway trying to say that when the president in April on Air Force One was asked about it he was talking about what he knew in October 2016 and not the present day.

[09:45:01] Does this concern you? I've heard you expressed concerns about the president and his issues with sticking to facts. Does this concern you?

RICK SANTORUM, CNN SENIOR POLITICAL COMMENTATOR: Look, I think everyone on the Republican side would love to see this go away and the best way for this to go away is for -- just to put out the information, you know, settle the case. Here is what I knew and when I knew it and move on.

I don't think the American public cares much about this. I think they discounted this the idea that Stormy Daniels' revelation before the election was going to make any difference given the "Access Hollywood" tapes and everything else that was out there about the president. None of this would have made a difference.

Get the facts out there and move on.

TAPPER: And, yet, Congressman Meeks, one of the issues is that they don't do that. They lie, they dissemble, they spin, they have conflicting stories.

And I still don't have a real idea of when President Trump knew and what he knew and Kellyanne Conway didn't offer much elucidation in terms of when he actually learned about this payment.

REP. GREGORY MEEKS (D-NY), FOREIGN AFFAIRS COMMITTEE: Yes, I think the president is now panicking. So he is losing lawyers left and right. No one wants to come to his defense.

So he hired an individual who he didn't see as fit to be attorney general or secretary of state and he brings him in. Why? Because he fired Prett Bharara thinking that Prett wouldn't cooperate and he thinks Giuliani who looks like he leaks (ph) some things before has contact within the U.S. Southern District's Office and trying to get some information.

And then it is back firing on him because after having a conversation thinking they can get out in front of a story that they know is going to come out he made the statements that he made and then he tried to walk that back.

So when you lie a lot you get caught in those lies. And that is what is happening here.

TAPPER: And let me -- I want to play sound of Giuliani this morning. And his basic point is I am his lawyer. The lies to the American people don't matter because they are not a legal issue.

Take a listen.


GIULIANI: I don't know when the president learned about it. He could have learned about it after or not connected the whole thing at that time. The reality is those are not facts that worry me as a lawyer. Those don't amount to anything what is said to the press. That is political.


TAPPER: Lying to the American people doesn't matter to him is essentially what he is saying because that's not a legal issue. It's not against the law to lie to the American people.

S.E. CUPP. CNN POLITICAL COMMENTATOR: That might be true. But, look, Rudy Giuliani is having a difficult time transitioning from being a pundit which he has been for the past few years to being the lawyer for the embattled president of the United States and knowing what to talk about, when talk to talk about it, what to say, what not to say, getting your facts straight before you go on television and talking about it. And among all of these revelations on Comey, on Stormy Daniels, on Michael Cohen as you discussed the getting out in front of the North Korean prisoner hostage is deeply, deeply alarming.

Lives are at stake. If there is one thing you don't go off and sort of shoot your mouth off about it is a prisoner release, a prisoner of war.

I mean, these are -- these are lives at stake. Rudy Giuliani needs to get back into lawyer mode, help his client and only speak of that which he knows.

TAPPER: What do you make of all of this? Do you think actually that -- this is going to have any effect on the American people?

We've already heard Kellyanne Conway and Senator Blunt them say this morning, hey, look, you know, he is doing what he said he would do. The economy is improving. He is working on North Korea et cetera.

That matters more than lies he tells. I'm paraphrasing but that is basically what they were saying.

PATTI SOLIS DOYLE, CNN POLITICAL COMMENTATOR: We have gotten to the point where the lies are so great not only in number but in frequency that it is difficult if not impossible for anyone to believe anything that this president or this administration says on any topic whether it be North Korea, whether it be the economy, whether it be Stormy Daniels or anything else.

There is zero credibility here. And that is extremely damaging to our country, to our democracy. And I got to say it's also really offensive.

Not -- I mean, clearly to the Americans who did not vote for Trump or support him but especially to the ones who did. You know, they put a lot of faith in him. They took a chance on him and he repays them by lying to them on a daily basis and insulting them.

I mean, how stupid does he think they are to believe all of this stuff? It's infuriating really. TAPPER: Senator, when you ran for president you enjoyed the support of evangelicals and people who tried to live a moral life according to the good book as well as -- not just the evangelicals, Catholics as well, people of faith.

One group that has not lost faith in this president are those voters even though-- I mean, he's making Bill Clinton, you know, look like a choir boy. I mean, an affair with a porn star and a "Playboy" playmate of the year, lying about it, hush payments.


I'm not excusing the Clinton years but, I mean, this is just bonkers.

SANTORUM: Yes. You might even go back to the Clinton years and the compartmentalization that happened to voters on the other side of the aisle which is, yes -- we don't (INAUDIBLE) --I mean, I saw very few Democrats defending Bill Clinton on the substance of the allegations with Monica Lewinsky and others. But they compartmentalized by saying, yes, but he's a great president on the things we care about.

TAPPER: Right.

SANTORUM: And therefore we're going to stick with him. That's going on here, too.

Now, you can say, well, the Democrats never claimed to be moral and therefore we shouldn't be -- it was a different standard for evangelicals. People care about what affects them. And they don't like what Bill Clinton did, nobody did.

Nobody likes what Donald -- nobody likes what -- but they're looking at how does this man impact me and my family when it comes to the issues that are most important to me. You can say, well, they should have a different standard.

I can make the argument that Democrats, I assume, are moral people, too, and they should have a different standard back in the 1990s. They didn't. Whether that's a good thing or a bad thing we can all have a debate frankly on both parties.

I don't think it's a good thing. I think we should hold our leaders to a higher standard but that's not what's (ph) happening (ph).

TAPPER: I want to change the subject for one second which is Senator John McCain is obviously in Arizona. He's recuperating and trying to heal from his battle with cancer.

Obviously everybody here, Senator, I know you watch a lot of CNN. Everyone here is pulling for you and rooting for you.


TAPPER: And I'm -- you know, I'm putting aside anything else that I read in the paper other than we're all still pulling for you. But the tension between him and Donald Trump has come up both in the book that has been released and his -- and the things he is saying in this new book. But also there are questions about and this has been reported in "The New York Times" and elsewhere that the plan would be to have Mike Pence be the one to honor Senator McCain in the hopefully long, long, long -- from now event of his demise.

This is -- this is a real moment for the country where an American hero, somebody who is beloved in many, many ways is saying, I don't want this guy at my funeral.

MEEKS: Well, you know, Senator McCain is known for being honest, the opposite of Donald Trump, and frank. When somebody would come up with something saying something negative about President Obama, he corrected them.

And so I don't -- I wouldn't expect anything to be different for Mr. McCain -- Senator McCain now. He is not going to be a hypocrite. He does not believe that Donald Trump represents the kind of moral authority that the president of the United States should represent for our country and the rest of the world.

And so it would be hypocritical of him then -- it would be a mischaracterization of who he is to say, I'm going to allow this guy to be at my funeral. He wants someone who is honest and forthright.

You don't have to agree with Senator McCain, you know, he just wants you to be honest. And that's why he has been a successful senator working across the aisles with Democrats for his entire senatorial career.

CUPP: He is -- he is not a sellout. And I think having President Trump just because he's the president come speak on his behalf or eulogize him or memorialize him would be selling out.

And Senator McCain -- I say that not just as his daughter's best friend but as a Republican who supported him, Senator McCain is everything that President Trump is not in every way that you discussed and every way you can imagine. And so in these -- in these final hours, in these final days, weeks, we hope months --

TAPPER: We hope years.

SOLIS DOYLE: We hope years.

CUPP: We sure do -- you know, he is -- he is having those very real thoughts and conversations with friends and family. Friends like Lindsey Graham and Joe Lieberman, people that have been around him for a really long time and making the best decisions for him and his family.

TAPPER: It's tough to talk about it. Senator McCain, we are all pulling for you here and we're all thinking about you.

President Trump seems to have a special knack for getting a glowing medical report but he has been having a little trouble with his physicians as of late.

So what exactly are the criteria for treating the "healthiest individual ever elected to the presidency" -- quote -- unquote.

That's the subject of this week's "State of the Cartoonion."



TAPPER: Welcome back.

President Trump seems to have an issue with his doctors. That's the subject of this week's "State of the Cartoonion."


TAPPER (voice-over): This week President Trump's former personal doctor said his office had been robbed -- by a White House aide and others looking for the president's medical files.

HAROLD BORNSTEIN, PRESIDENT TRUMP'S FORMER DOCTOR: All his medical records, just pictures, anything they could find. They must have been here for 25 to 30 minutes.

TAPPER: The White House claims this was all standard procedure but it got us wondering what exactly does the president look for when choosing a medical professional.

Is it a physician with a lose understanding of doctor-patient confidentiality?

BORNSTEIN: It certainly is not a breach of medical trust to tell somebody they take Propecia to grow their hair. What's the matter with that?

TRUMP: Look at the beautiful head of hair in that guy (ph)

TAPPER: Or an M.D. who's skilled at taking dictation perhaps?

Quote -- "The healthiest individual ever elected to the presidency."

TRUMP: My health has been very good and very strong.

TAPPER: Or maybe the president's top medical criteria is just a doctor who shares the billionaire's superlative opinion of his own physical specimen.

RONNY JACKSON, WHITE HOUSE PHYSICIAN: It's called genetics. I don't know. Some people have, you know, just great genes. He might live to be 200 years old. I don't know.

TAPPER: After all, when it comes to medical opinions, President Trump certainly had no problem playing doctor for his political opponent Hillary Clinton.


TRUMP: Hillary Clinton does not have the stamina, does not have the energy, doesn't have it. Doesn't have the strength to be president.


TAPPER: Thanks for joining us.

"FAREED ZAKARIA GPS" starts right now.