>> jon: chicago mayor rahm emanuel. a rare august tornado smashes into an oklahoma shopping district, leaving behind a trail of destruction. it's all happening now. you begin with this fox news alert, republicans taking stock of their agenda as the trump administration hits a major milestone. hello and welcome to the second hour of "happening now," i am jon scott. >> julie: i'm julie banderas. president trump marking 200 day since being sworn in, with republicans in control about the the house and the senate. the g.o.p. in the meantime laying out an ambitious to-do list and giving themselves a deadline of 200 days, but as we reach that timeline many other legislative goals remain in limbo including health care and tax reform. >> the two things that were at the top of the republican agenda in january when they took control of every branch of government are still on the to-do list. repealing and replacing obamacare and reforming the tax code. here is house speaker ryan explains her 200 day plan at the beginning of the year. >> our day is to get these laws done in 2017, we aspire to get most of these big things done by the august recess because that is when congress does most of its legislating. >> members of congress went on recess empty-handed. republicans have a unified government right now for just the third time in a century. >> democrats have not wanted to do a thing, that is why the first six months of this year we haven't been able to get bills up. are the only thing we've been able to do is get some appointments through. and even then it is slower than ever before. >> the democratic leader nancy pelosi sees republicans is the only ones responsible for not getting anything done. saying in the last hour... >> julie: thank you. >> jon: senate majority leader mitch mcconnell shrugging off the g.o.p.'s failed attempts to repeal and replace obamacare, saying this at an event in his home state of kentucky. >> even on the night that we came up one vote short of our dream to repeal and replace obamacare, here is the first thing i thought about. feel better, hillary clinton could be president. >> jon: joining us now is sarah westport, white house correspondent for the "washington examiner." we are in august, the recess is underway, republicans don't have a lot to show for the accomplishments of this congress. and that's not a situation they want to be in. >> absolutely not, one of the reasons why the senate scrambled so much in the last few weeks to get health care reform done was to avoid this exact situation, which is sending lawmakers back to their home districts, hot off an embarrassing failure with very few points on the board to sit through town halls where constituents are angry about the lack of progress and in some districts they are angry about the attempt to repeal obamacare. lawmakers who were on the fence about repealing obamacare are going to potentially harden against ever repealing it if they have to sit through a month of town halls where voters are yelling at them not to take away their health care, that is a major problem for leadership who want to bring everybody back and start again in enacting the president's agenda. >> jon: it seems like one of the few things republicans agree on was repealing and replacing obamacare as candidates, and now that that has slipped out of their grasp, can they all agree on something like tax overhaul? >> that seems to be one of their last hopes for notching some kind of legislative victory in this calendar year and that something they need to do because it is going to be enormously difficult to pass any kind of substantive legislation in an election year, they know that. it is not clear how much of the heavy lifting they will do for the looming budget fight during the recess but you can bet that when they return from recess in december, they are going to face a battle over the wall. democrats have signaled they are willing to let the government shut down at the end of september to block funding for the wall, president trump has indicated that he will not tolerate the failure to secure that funding. beyond legislative items that have failed to materialize yet, they do have this concrete deadline at the end of september and it will be a real test to see whether they have learned from their mistakes in the health care fight to be able to have some kind of consensus around a budget that includes some of the president's priorities. >> jon: of democrats are paying attention, they know that when the government shuts down and republicans got the blame for it, it hurt the party drastically. our democrats really willing to go to the mat and let the government shutdown? >> democrats may be counting on the fact that they can characterize any kind of shutdown is republicans fault because they control all three branches of government. no matter who is doing the obstructing, they might be betting that a sympathetic press will help them submit this narrative that it's the republicans fault of the government shut down. you just read nancy pelosi statement that cast blame for this legislative slow walking on republicans because they control all three branches of government. it's true that democrats have obstructed the g.o.p. agenda at almost every turn, it's also true that republicans have failed to produce the votes when they did have the opportunity to pass something like when they tried to get health care reform done through reconciliation, which didn't require a single democratic vote and they still couldn't accomplish anything. democrats might just be betting on the fact that their strategy of sitting back and letting the republican party because its own problems seems to be working for now. >> jon: what about infrastructure? it seems like both parties seem to have an interest in spending money on roads and bridges and other critical infrastructure issues, is that one that has the possibility of getting through this congress? >> there are a lot of observers that wonder why republicans didn't start out with something that was relatively bipartisan like an infrastructure package to grease the wheels for future big legislation items, because you are right at the beginning of this congress there was a consensus that both parties wanted to see a major investment in infrastructure. while there are still some differences, republicans want to see more private capital leverage for infrastructure, democrats want to see more taxpayer money spent on infrastructure, there is an agreement that this needs to get done. the problem is the climate has gotten so polarized, democrats are so committed to obstructing the president and the strategy is energizing their base, it is not clear that at this point they are going to get it done. democrats know they can possibly wait out the clock on this legislative year and hope republicans do end up -- >> julie: secretary of state rex tillerson addressing the russian investigation with his counterpart. >> the two largest nuclear powers in the world do have a number of issues between us obviously, russian meddling in the elections is certainly a serious incident that has created a serious mistrust between our two countries and we simply have to find some way to deal with that. >> julie: live at the state department with more. >> this is one of the many issues between the united states and russia that they were discussing today, of course primary among a number of russian appeals here in the united states is that the united states has those compounds that were now seized by the russian government in moscow. that was in response to what the u.s. congress did, passing additional sanctions against the russian government. the u.s. is also responsible for getting some 700 diplomats out of the country by september 1st in response to the u.s. congress passing those sanctions. that is something the secretary of state rex tillerson says he addressed and said the u.s. will respond to. >> i told the foreign minister we have not made a decision regarding how we will respond to russian request to remove u.s. diplomatic personnel. i asked several clarifying questions to be sure that i understood what they were thinking behind a diplomatic , e would respond by september 1st. >> the obama administration kicked out 35 russian democrats for espionage and in response to russian interference in the u.s. election. the russian government also had two compound seats by the obama administration, they have been lobbying for weeks to get those back in the united states. despite these issues and what the secretary calls extraordinary issues of and stress distrust. they are trying to work together on other issues in the middle east, on afghanistan and they have plenty of differences they have to address, particularly when it comes to ukraine and continued russian interference in that country. the secretary says both countries, they are large countries, they should be able to work through issues where they find common ground and continue to try to work to the areas where they don't. >> julie: thank you. >> jon: the wall, to go very familiar words from last year's presidential campaign. when lawmakers return from their recess, president trump will look to get the dollars he wants to build it. that may not be so easy as lawmakers are expected to lock horns over the spending bill. ahead, how far their political battle might go. plus, or tornado ripped through the country's midsection through the weekend, leaving some folks critically injured after it slammed into one city's district. >> they had patrons in it and the roof collapsed, you can see right there where the roof literally collapsed on top of people. better than the leading branded pill, which didn't get me to my goal. lowers my a1c better than the leading branded injectable. the one i used to take. victoza® lowers blood sugar in three ways. and while it isn't for weight loss, victoza® may help you lose some weight. non-insulin victoza® comes in a pen and is taken once a day. 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that is if you do a trump wall. this is not all wall that they are going to drive their trucks over. you make a beautiful, put a little design in the concrete, do that easily. someday, you know what it is going to be called. the trump wall, we have to make it beautiful. i would build a great wall, nobody builds walls better than me, believe me. i will build it very inexpensively. i will build a great, great wall on our southern border. >> julie: president trump talking up one of his biggest cap promises on the campaign trail, building that wall along the southern border. vowing to build it is not the same as paying for it and now as the white house and congress square off over a possible spending bill, a possible government shutdown looms over the horizon unless lawmakers come up with the money to get the project started. joining us now, executive director of the new york state democratic to party. also, a conservative commentator. let me ask you first, during this campaign, as we heard time and time again, it got a huge round of applause from his supporters that he would build a big, beautiful wall. he also said that mexico would pay for it and as we have known all along, the mexican president said no, he is not paying for it and it was confirmed in those leaked transcripts between the president's phone conversations. it is congress going to cough up the money and at what expense? >> you can't fail at tax reform, and health care, and the wall. the president may have a little bit of flexibility with american people considering illegal immigration is down by 40%, 50%. at the end of the day, american people want results. you made a promise, you need to keep it or they will remember in the next election. >> julie: the white house director of legislative affairs basically said that the trump administration "has clear expectations for the wall" saying we get tax reform and complete funding of the government which includes rebuilding of the military. do you think the president anticipated that in order to do that, a government shutdown could potentially be a possibility? >> he certainly didn't anticipate it but that is indeed what may happen and i think we have heard that the republicans would get blamed for it, because they control the government. the truth of the matter is that building the wall was both a literal and metaphorical rallying cry last year. from a practical standpoint, it takes time to commit the money and actually build it. what are republican members going to be able to tell their constituents at the end of this year, early next year into their reelection? something is going to have to gape here and i think with the g.o.p. is looking at is trying to find a way to get something done, not this wall but something at the end of this year. >> julie: they did revisit immigration reform, something is being done. the wall couldn't possibly have been built this fast anyway. as far as immigration reform, which is in the president did campaign on, they have in fact made it so that legal immigrants will be cut down by 50% of the next ten years, that was a call they felt needed to be addresse addressed. congress must now pass bills to raise the debt ceiling and fund the government before the end of september and they are taking off august. what happens next? >> let's start right there, you talked about them taking off. i don't understand when why they are taking vacation when we haven't gotten bills to the president's desk. again, for the republican congress will be responsible for this because you can't continue to make promises to the american people and not deliver. they won't even touch immigration reform, the voters won't touch immigration reform until they secure the border. they wanted a wall, he campaigned on a wall so until they implement that, you won't see them touch immigration reform. they will talk about some legislation going through but i guarantee there won't be billed to hit the president's desk until that is completed. >> julie: let's talk about that bill, shall we? what if paul ryan works his magic, but the bill doesn't get the 60 votes needed to pass in the senate, what then? would president trump accept any substitutes to a wall, like tighter border security, more funding to fight international crime against? >> i don't think you will see a legislative fix, per se. i think you will see what you've seen all along, the president use the power of the pan and his executive authority to make these sort of decisions without congress and that has consequences at the end of the day. that has consequences of the end of the day, because the question is, will republican members be able to actually take credit for the things he is doing, will they have to defend some of his actions to their constituents which may not be particularly popular and it doesn't necessarily give republican members anything to be able to sell back home when they are asking voters to support them in every election. >> julie: part of being president is not necessarily to make all the most popular decisions. when we talk about the midterms, if they don't nail something down on this wall, something that his base obviously wanted and they don't nail down health care, they are in for a real mess. we are going to have to leave it there. >> they are done. >> julie: thank you both. >> jon: the democrats could be doing an about face as they gear up for them midterms, a major change on a hot-button issue. up next, what they are considering. plus, a sinkhole growing by the day as it swallows homes, creating misery in one communit community. >> julie: new information to tell you about on a dangerous situation in florida, a sinkhole continuing to swallow upland, north of tampa, making more homes unfit for habitation as they sit on unsteady ground. seven homes now condemned, forcing families to evacuate. crews are trying to fill up the hole which may actually take two more weeks. so far the cleanup effort has cost the county $700,000. >> jon: congressional democrats are gearing up for the 2018 midterms and now some are considering a drastic shift in policy on a hot button social issue as they look to reclaim the majority from republicans. >> the democratic party has long been known as the big tent party but last week revealed, not all are in. a huge intraparty rift was exposed last week when congressman told a newspaper "there is not a litmus test for democratic candidates." he is referring to pro-life democrats, the party needs them he believes to help win back districts where conservative voters defected to donald trump. emily's list among others issued a statement... >> the problem is, they have this ideological purity at the top, you can't oppose abortion at any time along the continuum and at the same time, a third of democrats self identify as pro-life. >> paul spencer is a pro-life democrat, he is avoiding this rift by refusing to take all pac money. >> i have already informed the democratic party here in little rock that i don't want to receive any of their money, i welcome their support but i don't wish for the money. i've already had that discussio discussion. >> it is a reminder that when the company country is so even, democrats may be sabotaging their prospects by alienating as many as a third of their voters who identify as pro-life. >> jon: interesting, thank you thank you. >> julie: a manhunt in missouri for a man police say shot and killed an officer, what they know about the moments leading up to that shooting. plus, the city of chicago taking the trump administration to court over sanctuary city funding. >> the city of chicago may be the first to bring a lawsuit but i am also confident we will not be the last. t- four weeks without the car. okay, yup. good night. with accident forgiveness your rates won't go up just because of an accident. switching to allstate is worth it. ykeep you sidelined.ng that's why you drink ensure. with 9 grams of protein and 26 vitamins and minerals. for the strength and energy to get back to doing... ...what you love. ensure. always be you. >> jon: a fox news alert, a manhunt underway for the suspect who shot and killed a kansas city, missouri, police officer. >> julie: authorities say it began as a traffic stop yesterday and then the driver got out of the car and started shooting. the officer returned fire but it is unclear if the suspect was hit. police now looking for this man, his name ian mccarthy. police say he fled the scene in his vehicle then crashed a few blocks later and took off on foot. >> jon: chicago becomes the first city to sue the trump administration's justice department for threatening to cut back on federal funding to sanctuary cities. mayor rahm emanuel filing a lawsuit today. chicago was one of the larger sanctuary cities in the u.s. >> the justice department has announced new restrictions on grants, asking the city of chicago to choose between our core values of the welcoming city and our fundamental principles of community policing. it is a false choice and a wrong choice. chicago will not let our police officers become political ponds in a debate. >> jon: a lot of arguing going on. live in chicago with more. >> statement began with saying the city of chicago will not be blackmailed by trump's justice department, that statement was made as rahm emanuel filed a lawsuit attempting to force the department of justice continuing to send crime-fighting funds to the city even though the city will not cooperate with the federal government. last year, the program gave chicago $2.3 million but now the application says to get money in the future, a police department must grant federal agents unlimited access to local police stations and must give homeland security agents 48 hour warning before a detainee is released, particularly if that individual is an immigrant. the chicago mayor argues that it goes against the moral principles that build a city like chicago. >> this is true to who we are, it is true to who we are as a city, and our future. >> the police superintendent noted that if immigrants fear they will be reported to the police and deported, they will be less inclined to cooperate with police and give information. sometimes it is so that it is tragic that he is less concerned with the staggering crime statistics in chicago. chicago is not the only so-called sanctuary city to push back against the immigration matters, it is however the first city to file suit. the city is overwhelmingly democratic, there is a significant latino population here and that population is politically active. >> jon: thank you. >> julie: for more on this, let's bring in our legal panel. first of all, no surprise. chicago, a lot of democrats, not a lot of fans of president trum president trump. also it is a city full of a lot of hispanics. however, if you look at those that are behind bars when you talk about the ethnicities, you are dealing with a lot of hispanics. how does this lawsuit stack up? >> not only is the lawsuit meritless but it is absolutely ridiculous. let's get one thing straight. sanctuary cities protect criminals. when you look at statistics across the united states, those that are incarcerated who are here illegally, most of whom have committed violent crimes in texas, two-thirds of them committed violent crimes. in oregon, 50% of illegals who are locked up have committed crimes. why are we protecting those people? >> julie: if you are illegal you are already a criminal but you are also convicted of these heinous, very violent crimes and allowed back onto the streets. they don't deserve any kind of sanctuary. >> while i agree that any convicted criminal and undocumented immigrants should be deported, there are tons of undocumented immigrants who are loved by these people. the cities have the rights based on our supreme court law to expand social services to these people because they are not causing problems in these cities and they are making this country a better place. i do think that this lawsuit will have a leg to stand on because of that. >> julie: rahm emanuel believes, i want to read some comments he made recently. that the trump justice department is forcing the city of chicago to choose between its core values and fundamental principles of community policing. he is basically saying, chicago police should not be left up to the task to enforce the government's rules on sanctuary cities. is it up to local law enforcement to do that? >> this is smoke and mirrors, all the trump administration is doing is saying that we have a federal law that says these municipalities cannot interfere with the communication between the federal government and criminals. up until now it hasn't been complied with. all the new regulation are asking is that you give them access to do their job. not the municipalities job, that is all they are asking to do, there is nothing illegal about that. >> the supreme court is already ruled that the federal government cannot bully municipalities to do the federal governments work at the municipalities expenses. basically, what this restriction is basically bullying the cities into doing what the feds need to do. >> it's opening a line of communication. if we were saying you have to walk these people over the federal department that is one thing. they are just saying to let them in the door when they want to do their job. >> the supreme court has already ruled on that. the federal government needs to use its own resources to do that, they can't force the cities to use their police departments by saying we are not going to give you funds because you won't comply -- >> julie: the grant money is meant to keep the people safe. who are the people? law-abiding citizens. there is a fine line here. this grant money should not be used to protect those criminals that are currently being held u up. >> remember the equal protection clause in the constitution is afforded to all residents, it doesn't matter if you are an undocumented immigrant. i think criminals should be deported, i 100% agree with tha that. >> that is what helps us achieve. instead of letting them back out, look at california. these cases are perfect examples of why there are those in the system currently who have been in jail for more than one, sometimes four times that should not be able to appreciate or benefit from taxpayer money. >> that is why president obama had a law in place, criminals were deported but he also had sympathy for those who are not committing crimes. they are entitled to social services that these cities are giving them because they are not bothering anyone and they are contributing to the welfare -- >> this is not going after people who are here illegally but remaining law-abiding, they only want to go after those heinous criminals -- >> trump said he wanted to deport billions -- >> julie: there have been illegals who have been deported and i.c.e. have knocked on their doors because they are illegal and they haven't actually gone out and robbed a bank, there are law-abiding illegals that trump wants out of this country. i just think priorities need to be set here. criminals committing these violent acts should be at the top of the list. >> i don't think the federal government should not fund these police departments because of this. >> julie: thank you. >> jon: all of us here at fox news are mourning the loss from behind the scenes. a long time fox news creative director has died. from the beginning, he was here as senior vice president and creative director. his vision was behind the look of many of your favorite shows on fox, he change the look of many of the shows on this network. he had a hand in creating america's talking, we often had breakfast together in our company cafeteria. he would speak about his devoted wife karen in the accomplishments of their daughter katie and son connor. richard o'brien has died, just a week short of his 61st birthday. >> julie: minnesota's governor denouncing an attack on a suburban minneapolis mosque as an act of terrorism. police say a bomb blew through our mosque window and landed in the moscow office saturday morning when worshipers were getting ready to pray. no one was hurt but the building did sustain some significant damage. the executive director says that building has been the target of many threats recently. the fbi is investigating. >> jon: concerns over iran's recent aggression in afghanistan. a journalist for "the new york times" recently writing in a newspaper that a potential threat is tied to the u.s. military and it's a shrinking presence in that part of the world. joining us now by phone, the article author. iran is meddling in afghanistan, what is their goal? >> that's what we found, the last few years since the drawdown of american troops, iran has become more and more involved. they want to have proxies along the border. they want the foreign troops to leave, they say this is their backyard. >> jon: you write that they have even been supporting isis, isis is not typically -- not typically supported by the iranians. >> they are in cahoots with the taliban, they are supporting the taliban. they say it is to control the threat from isis. they are getting into bed with an extremist movement. that is a calculation for their own security, but we understood they are just causing trouble for the government down the troops that are helping them. >> jon: some of this you write is a result of the u.s. pull ou out. >> that is what we were told, this drawdown of american troops has invited others to get involved, including russia. >> jon: the announced drawdown of u.s. forces announced under the obama administration, that was not helpful? >> i found for many years, if you are going to fight and do search, you don't say you are going to leave. that has long been criticized as well. then of course, the drawdown really did happen. and now american troops are right down from nearly 100,000. that is where i think you see a dramatic shift on the ground and where you see the taliban, in with a big push to take power. iran wanted to get involved in that, too. they were telling me that the main threat now is a rainy end. you've seen other players attempting to get there chunk of control of an area. >> jon: thank you very much for your expertise. >> julie: authorities crushing a small rebellion but not before a group of antigovernment fighters storm an army base. what we are learning about the invaders next, plus video capturing the moments after severe turbulence had a plane, sending some passengers to the hospital. what we are learning about that philadelphia bound flight. it's just a burst pipe, i could fix it. 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"america's news headquarters" coming up next. >> julie: a very rocky ride, a scary one for people on board an american airlines flight from greece. >> jon: viewer video taken just after turbulence ended. the flight crew apologizing to everyone on board, saying they were only expecting light turbulence. american airlines says ten people were hurt and taken to the hospital. >> julie: new information to tell you about now on a political crisis going on in venezuela. military troops on the hunt for a group of antigovernment fighters who attacked an army base over the weekend. >> jon: other fighters were either killed, injured, or captured in that attack. live from our miami bureau with more on what is going on there. >> any hope for a full on rebellion and toppling of the socialist government in venezuela ended quite quickly sunday morning and now as you mention, a massive manhunt is underway for ten men who escaped. the socialist government set up a small of 20 men launched an attack on a major army base in the city of valencia. that triggered a short gunbattle with troops were stationed at the base, leaving two of the rebels dead, one injured, seven captured on the other ten on the run. president nicolas maduro, who the trump administration now calls a dictator, said the mercenaries and terrorists failed to ignite a civil war. in his weekly television address, he vowed that the rebels will be captured and sever the maximum punishment, adding that there is no leniency for deserters. he says the group of 20 were not active duty military but mostly civilians and deserters. on saturday that new national constituent assembly fired venezuela's top prosecutor and its first major action. she was viewed as a threat to the revolution. the two prominent opposition leaders who are addressed direct arrested and hauled away from their homes last week have now returned home but remain under house arrest. on friday the national constituent assembly convened for the first time and there is no check on its power, he can do whatever he wants. the opposition dominated national assembly refuses to even recognize that new body, saying it formed after a sham election and further cements the dictatorial power. meanwhile in venezuela, clashes between opposition and the government, 100 people have been killed in the past several months down there and there are skyrocketing crime issues as well as scarcity of certain foods on pretty much a daily basis. >> jon: thank you, phil. >> julie: north korea's foreign minister now threatening to "teach the u.s. a severe lesson." those comments in response to top tough economic sanctions imposed by the united stations. what the u.s. says the rogue nation must do before american leaders will agree to talk. >> round of applause for julie banderas. >> would have been a waste of a day off. thank you for joining us. >> "america's news hq" starts now. >> harris: a fox news alert. where following president trump on his working vacation in new jersey, and he just scored a big victory for his administration. the united nations fitted north korea with the toughest sanctions yet. i am harris faulkner. let's get to it. team coverage on the top story. reaction to the president's tweets and how the white house is fueling differences from its new chief of staff, john kelly. with the newest on north korea. we do know president trump had a conversation with south korean leader last night. we begin with laura ingle who was in new jersey not far from the president. laura? >> we have seen a lot of action today

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