This is a rush transcript from "Hannity," December 11, 2018. This copy may not be in its final form and may be updated.

SEAN HANNITY, HOST: Hi. Welcome to "Hannity" on this breaking news night.

Let's go back to November 8, 2016. You, we, the people, shocked the world.  You voted for a fighter, for a disrupter, someone who will battle hard to keep promises that he made to you and someone who will stand up to Washington, the establishment, smashed through government bureaucracy and actually get things done, and it's working.

Well, tonight, President Trump is on offense determined to fund the wall on our southern border that he promised, he is now holding congressional Democrats accountable in a very public way. And yes, fighting for what he promised you.

Now, coming up, we're going to show you Nancy Pelosi, Chuck Schumer, while they're playing petty partisan politics, President Trump is determined to protect the American people. We're going to play the tape from today's contentious, well, you might want to call it Trump beat down and explain why the blithering idiots leading the Democratic Party are way out of their league tonight.

Plus, we'll review the president's plan for much-needed criminal justice reform. And I have a message for a deranged New York Times hack Paul Krugman who is literally saying the United States of America, our country, is part of the axis of evil. That was a really bad day for Michael Avenatti and Stormy Daniels as she has now been ordered to pay nearly $300,000 for president Trump's legal bills.

All right. Stay tuned. And, we have a huge announcement at the end of the show.

But, first, it's time for tonight's breaking news, well, Trump beat-down, opening monologue.

Let's be honest. Border security is a deadly serious issue. Look at this, according to the Center for Immigration Studies, since 2001, 15 suspected terrorists -- they have been apprehended at our southern border, including Islamic extremists from al-Shabaab, the Taliban, ISIS. The true number of terrorists-related crossings is, of course, classified, likely much higher.

And meanwhile, over 25,000 other known criminal immigrants have been arrested since 2016. This includes over a dozen murderers, 370 convicted sex offenders and nearly 5,000 individuals convicted of illegal drugs or weapons charges. Now, of course, I would tell you that the vast majority of people who went across the border illegally probably are people that want a better life for themselves or their family but even the illegal immigrants with the best of intentions, they are costing, we, the taxpayers, an enormous amount of money.

According to a recent study, every illegal immigrant that successfully crosses our border costs you the American people, $70,000 a year. And on December 3rd, over 3,000 people were caught illegally crossing in just one day. In November, 2-year-old toddler was found crossing the border without her parents. We must have the ability to decide who comes into our country to ensure the safety on both sides of the border, to vet people, to make sure they can take care of themselves.

So, now, more than ever, we need a massive wall. It's a common sense strategy that actually works, keeping potential terrorists, those that are criminals, human traffickers, drug traffickers out of this country, illegals, that's a national security issue.

The president has long promised now to build that wall and now he's fighting to do just that, he's fighting for what's right. And now, he fought hard, this is his history for tax cuts. He gave us the largest tax cut in history. He fought for new trade deals and he's winning on that front.

He fought back against Obama's endless bureaucratic regulations and he has created an environment for businesses that are now thriving. He's fought for energy independence and for the first time this week, and 75 years, we are energy independent. He fought for the confirmation of qualified originalists, justices and he's won, and now, he's fighting for the wall on the southern border in a big way and confronting Nancy Pelosi and Chuck Schumer for playing politics with what is the safety and security of every American citizen. Take a look.

(BEGIN VIDEO CLIP)

PRESIDENT DONALD TRUMP: I'd like to not see a government closing the shutdown. We will see what happens over the next period of time. But the walls are very important thing to us. I might put it a different way.

Border security is extremely important and we have to take care of border security. When you look at what happened with the caravans, with the people, we shut it down. We had no choice, we shut it down. It could be a lot easier if we had real border security.

REP. NANCY PELOSI, D-CALIF., MINORITY LEADER: You have the White House. You have the Senate. You have the House of Representatives. You have the votes. You should pass it.

TRUMP: No, we don't have the votes, Nancy, because in the Senate we need 60 votes, and we don't have it (ph).

PELOSI: No, no, but in the House, you could bring it up right now.

TRUMP: Yes, but I can't -- excuse me, but I can't get it passed in the House if it's not going to pass in the Senate; I don't want to waste time.

PELOSI: Well, the fact is, you can get it started that way.

TRUMP: The House we could get passed very easily, and we do.

PELOSI: OK, then do it. Then do it.

TRUMP: But the problem is the Senate, because we need 10 Democrats to vote, and they won't vote.

PELOSI: Well, let's take the vote and we'll find out.

TRUMP: Nancy, Nancy, we need border security. It's very simple.

PELOSI: Of course we do.

TRUMP: We need border security. People are pouring into our country, including terrorists. We have terrorists. But we caught 10 terrorists. These are over the last very short period of time -- 10. These are very serious people.

Our border agents, all of our law enforcement has been incredible what they've done, but we caught 10 terrorists, these are people that were looking to do harm. We need the wall. We need -- more important than anything, we need border security of which the wall is just a piece, but it's important.

SEN. CHUCK SCHUMER, D-N.Y., SENATE MINORITY LEADER: You just say, my way or we'll shut down the government. We have a proposal that Democrats and Republicans will support to do a C.R. that will not shut down the government. We urge you to take it.

TRUMP: And if it's not good border security, I won't take (ph) it.

SCHUMER: It is very good border security.

(CROSSTALK)

TRUMP: And if it's not good border security I won't take it.

(CROSSTALK)

SCHUMER: It's what --

TRUMP: Because when you look at these numbers of the effectiveness of our border security, and when you look at the job that we're doing with our military.

SCHUMER: You just said it is effective.

TRUMP: Can I - can I tell you something?

SCHUMER: Yes, you just said it's effective.

TRUMP: Without a wall -- these are only areas where you have the walls.  Where you have walls, Chuck, it's effective. Where you don't have walls, it is not effective.

(CROSSTALK)

SCHUMER: Yes.

PELOSI: Let's call a halt to this.

We came in here in good faith, and we're entering into a -- this kind of a discussion in the public view.

TRUMP: But it's not bad, Nancy. It's called transparency.

PELOSI: No, and -- I know -- it's not transparency when we're not stipulating to a set of facts, and when we want to have a debate with you about saying -- we confront some of those facts --

(CROSSTALK)

TRUMP: You know what, we need border security. That's what we're going to be talking about, border security. If we don't have border security, we'll shut down the government.

SCHUMER: Twenty times -- 20 times, you were called for I will shut down the government if I don't get my wall. None of us has said --

TRUMP: You want to know something?

SCHUMER: You said it.

TRUMP: OK, you want to put that --

SCHUMER: You've said it.

TRUMP: I'll take it.

SCHUMER: OK, good.

TRUMP: You know what I'll say? Yes. If we don't get what we want one way or the other, whether it's through you, through a military, through anything you want to call, I will shut down the government, absolutely.

SCHUMER: OK, fair enough. We disagree. We disagree.

TRUMP: And I'll tell you what, I am proud to shut down the government for border security, Chuck.

(END VIDEO CLIP)

HANNITY: Wow. Chuck couldn't even look him in the eye. FOX News has confirmed that House Republicans are now considering putting a $5 million funding the wall built up for that vote that Nancy Pelosi wants and they will still fund the government at current levels.

Now, this bill would prove Nancy Pelosi wrong and then put Senate Democrats in a pretty precarious position. Either fund the wall or they would shut down the government.

By the way, if you are a Republican in Congress and you vote no, I will tell you right now that we will be highlighting your name and your record and holding you all accountable. This is about our nation security. It's about stopping drug traffickers and human traffickers. It's about safety for the American people.

None of this seems to matter to the left and yet again, they are on the wrong side of what is a monumentally important issue. Look at this, according to a Harvard-Harris poll, a majority of Americans, they support the president, the wall on our southern border. Seventy-nine percent support a merit-based immigration system. Seventy-nine percent want more secure borders. Sixty-one percent say the current border security is inadequate, and 68 percent want an end to the visa lottery system.

Now, Democrats don't want to listen to the American people, maybe they should listen to themselves because they are such hypocrites, in the Obama years, they sound a lot like Donald Trump and we've got the tape to prove it. Take a look.

(BEGIN VIDEO CLIP)

HARRY CLINTON, D-FORMER PRESIDENTIAL CANDIDATE: I voted on numerous times when I was a senator to spend money to build a barrier to try to prevent illegal immigrants from coming in and I do think you have to control your borders.

SCHUMER: People who entered the United States without our permission are illegal aliens and illegal aliens should not be treated the same as people who enter the U.S. legally. The American people will never accept immigration reform unless they truly believe that there government is committed to ending future illegal immigration.

BARACK OBAMA, FORMER PRESIDENT: Those who enter our country illegally, and those who employ them disrespect the rule of law. And because we live in an age where terrorists are challenging our borders, we cannot allow people to pour into the U.S. undetected, undocumented and unchecked.

(END VIDEO CLIP)

HANNITY: Oh, how times have changed. They all sounded like little baby Donald Trumps. Now, we warn you for a long time.

Now, Democrats, now they want open borders. Sanctuary cities, sanctuary states, they even want to get rid of ICE and all the hard work that they do altogether. But remember, they want to keep this agenda hidden, which is exactly was one of the more fascinating moments during that exchange with the president that went on 11, 12 minutes today, they kept urging the president over and over.

Can we talk privately? Please? Please? You're killing us.

That's a sure sign that they knew they were out of touch with the American people. Can we please do this privately? Pretty please?

Take a look.

(BEGIN VIDEO CLIP)

PELOSI: And the point is, there are equities to be waived and we are here to have a conversation in a prayerful way, so I don't think we should have a debate in front of the press. Let us have our conversation.

SCHUMER: That's our proposal. If it's good then, it's good now, and it won't shut down the government.

TRUMP: We could build a much bigger section with more money.

SCHUMER: Let's debate in private.

PELOSI: We came in here in good faith, and we are entering into this kind of discussion with the public.

TRUMP: But it's not bad, Nancy. It's called transparency.

PELOSI: Let's have a conversation where we don't have to contradict in public the statistics that you put forth but instead can have a conversation about what would really work.

(END VIDEO CLIP)

HANNITY: No, let's have the conversation in public so we can all see where you really stand. Instead of working towards a solution, you see it.  Democrats playing politics and literally commencing with their favorite activity bashing Trump, including, now moments after that tense exchange in the White House, watch this.

(BEGIN VIDEO CLIP)

PELOSI: The Trump shutdown is something that can be avoided, but the American people do not need at this time of economic uncertainty. People losing jobs the market in a mood and the rest, it's a luxury -- the Trump shut down is a luxury the American people cannot afford.

SCHUMER: If he sticks to his position for a $5 billion wall, he will get no wall and he will get a shutdown. This Trump shutdown, this temper tantrum that he seems to throw will not get him his wall and it'll hurt a lot of people because he will cause a shutdown, he admitted he wanted a shutdown, it's hard to believe that he would want that.

The president said things are working quite well at the border -- well, we want to give him the same thing he had last year. If they're working well last year, they should work well this year, he shouldn't shut down the government.

(END VIDEO CLIP)

HANNITY: Amazing. Chuck couldn't look him in the eye when he was right in front of him, but he comes out strong when those cameras are out there and he doesn't have anybody to debate or to refute what he is saying.  Actually, Chuck, the president said he would own it that he's willing to fight for his promise for the American people and that national security is that important to him.

OK, he says he owns it, accept it and Nancy Pelosi gets back to the security of Capitol Hill. She actually then questioned the president's -- you can't make this up -- manhood, telling her fellow Democrats, quote: It's like a manhood thing for him, as if manhood could ever be associated with him this wall thing.

And according to "The Hill" she also made this odd, weird bizarre analogy.  It goes to show, you get into a tinkle contest with a skunk and you get tinkle all over you. Wow that's the leader of the Democratic Party, soon- to-be speaker of the House.

This is going to be, listen, you watch in the first three months of next year, this is going to be entertainment at its highest level. I promise you. Now, let's contrast those very petty statements to how President Trump reacted following the meeting. Take a look.

(BEGIN VIDEO CLIP)

TRUMP: I don't mind having the issue of border security on my side. If we have to close down the country over border security, I actually like that in terms of an issue but I don't want it to be an issue. I want it to be something that what the country needs. It's not really an issue. It's something the country needs. It's common sense. The country needs it.

We need protection. We need border security. We need security from drugs that are pouring into our country. They're coming in right through that southern border and we need a wall, we need border security and part of border security is a wall. So, I don't mind owning that issue.

I mean, Chuck's problem is that you know when the when we glass slows down that was his idea and honestly, he got killed. And so, he doesn't want to own it, and I said you know what, rather than us debating who's owning it, I'll take it. I'll take it. If we close down the country, I will take it because we're closing it down for border security and I think I win that every single time.

(END VIDEO CLIP)

HANNITY: Ownership, responsibility keeping promises the courage to fight back.

While some criticize the president style, this is why this president was elected. It's why the border wall will get done one way or the other. He is a disruptor in chief and finally promises are made that are being kept.  The very reason, the same reason the president Trump's bipartisan prison reform bill will also likely pass Congress and become law.

Soon, nonviolent, low risk offenders will have the chance to once again contribute to society without unreasonably long prison sentences. This is good for America, everyone, again nonviolent very important, especially those who are first-time offenders they should have a chance at redemption.

Now, remember this scene. Alice Marie Johnson who we'd had the opportunity to meet an interview, thanking the president, thanking the country for a second chance. She spent 20-plus years in prison for one drug offense, nonviolent. And now, others like Alice Marie Johnson currently in prisons, they will be given a second chance.

Now, despite real progress across the country on multiple fronts -- well, Trump derangement syndrome has devastated some of America's worst so-called journalists, of course, this includes New York Times hack Paul Krugman.  This is the most insane thing I think I've read in the New York Times that says a lot, tweeting out an article about how climate change along with a statement that reads, quote: There's a new axis of evil, Russia, Saudi Arabia and the United States?

OK. Is this is what The New York Times has become, a paper so filled with anti-Trump rage that they employ a person that's calling the United States of America evil, not only is Krugman's anti-climate change rage absurd it's also misplaced.

Mr. Krugman in 2017, the U.S. actually led all countries and reducing carbon emissions. I guess journalism is not one of his strengths, but what else would you expect from The New York Times?

And for the record, Paul, no America is not perfect, no country has ever been. But there's never been a country that has accumulated more power and abused it less and accumulated more power and used it to help advance the human condition more than the United States of America. Of course, you and your biased newspaper so-called of record need a history lesson.

All right. Joining us now with reaction to our monologue, former Secret Service agent Dan Bongino, Fox News contributor Tammy Bruce.

TAMMY BRUCE, FOX NEWS CONTRIBUTOR: Hey there.

HANNITY: The best part of today was, it should be public, Dan Bongino, loved it, I want to see that every day. They don't want you to see that.

DAN BONGINO, FORMER SECRET SERVICE AGENT: Yes.

HANNITY: And the other part is, I'll take ownership of the safety of the American people, absolutely. It's worth fighting over.

BONGINO: Yes, dropped a huge L on this today, Sean. Nancy and Chuck, they lost big.

And, Sean, something happened that should indicate to everybody watching just how badly they lost that interaction in the Oval Office with Trump.

Did you see how quickly, not only they jumped to the cameras but then on Capitol Hill, there was a flurry to get to the cameras again? They couldn't reframe this thing any quicker but they realized something happened here, right in front of the country, they were put on the spot with a simple question, will a wall increase border security or not? And Chuck and Nancy flubbed. There's no mulligan.

We all saw it, they dropped the huge loss and Trump expose them for what they are. They did a great job today framing this in terms of border security. You know, look at the cost along for the American people look I've been down there times, Tammy. All the way from the Rio Grande through San Diego, in drug warehouses horseback, helicopter, boats, all-terrain vehicles, foot, I've been out with these true these guys. I've seen it up front.

The Center for Immigration Studies, they calculate a staggering percent of households led by non-citizens use at least one welfare program and it's costing the American people $70,000 a year, criminal justice system, health care system, educational system, we pay per illegal immigrants grand a year.

BRUCE: Yes, we're a generous country. We are and yet Americans are realizing that there is a better way to do this instead of having to be this chaos. But also when another number, 80 percent of the fentanyl that comes into this country comes in through the southern border.

This is about life and death for it for American citizens and also for immigrants who come into this country. We want to stay the country that people want to come to, and in order to do that, we've got to secure the border but I would also say with that scene in the Oval Office where the Democrats continue to look the clown themselves it is the best a chance for Americans to see as President Trump's commitment to transparency showing them that kind of meeting.

But when they're scrambling to not give him $5 billion for a wall, that's a lot of money for in just a human history. But for some reason, the Democrats were able to find a hundred and fifty billion for Barack Obama to give to an American enemy, to Iran, to the biggest state sponsor of terrorism around the world and to the country that murders Americans and kidnaps them and holds them and disappears them.

They found a hundred and fifty billion for that, but they can't find such $5 billion to secure the American people. The president should ask the Democrats, why that is the case? Why does $5 billion to secure the border, why is that not possible for them but they found that kind of money an extraordinary amount of money for an enemy of the United States?

The wall, the card that he was pointing to in that in that clip, since the 1990, the five sectors were we have built a wall, over 90 percent of illegal traffic was abated, was ended. It cut it down by over 90 percent in every single place where we built a serious secure wall and barrier.  That's what we know.

That's what the American people want and that's what the president must -- I know, Sean, you would agree -- must play hardball here. He is our only chance to get these things right and to stop the swamp.

HANNITY: I like that he owns it. Well, you know what, we all make decisions in life and we suffer consequences I think the American people will respond very favorably to this and if he holds life -- look, he also has another option.

By the way, Lindsey Graham said, don't give up, Mr. President. Then you had, Senator Inhofe, Senator Shelby, you know, we have a $700 billion military budget. This is a national security issue, Dan. The end of the day, if the president needs to go that route, I don't see any problem in that being plan B, and that would include the entire $25 billion.

BONGINO: Yes, Sean, let's put this in context. We have a $4 trillion federal budget. I mean, this isn't nickels we're talking about, let's be candid. But in the scope relatively speaking of our federal budget, it's nothing.

And the fact that Tammy has indicated, correctly so, we were willing to shuttle pallets of cash to the Iranians yet we're not willing to dedicate a fraction of the budget to secure our southern border with a wall the American people know works. It's ridiculous.

You know, Sean, it's not the national defense issue though. That's important and paramount. But second, it's an economic issue, secondly. I mean, Milton Friedman said it best -- you cannot have open borders in a welfare state at the same time.

BRUCE: Yes.

BONGINO: It is a mathematical impossibility. It doesn't work.

HANNITY: All right. Great analysis by both of you tonight. Right on a money. Tammy, great point on Iran.

All right. When we come back, we'll explain one thing -- government shutdowns, most of the government stays open. Ted Cruz will join us.

Also later, four dead now and a dozen wounded in France at a Christmas market. Authorities are treating it as a terror attack. We'll have an update on that and a special announcement, straight ahead.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

PELOSI: People at the top of the Republican Party have lost after losing their offices now because of the transition, people are not in --

(CROSSTALK)

TRUMP: We've gained in the Senate. Nancy, we've gained in the Senate.  Excuse me, did we win the Senate? We won the Senate.

SCHUMER: When the president brags that he won North Dakota and Indiana, he's in real trouble.

TRUMP: I did. We did win North Dakota and Indiana.

(END VIDEO CLIP)

HANNITY: Well, Chuck, North Dakota and Indiana were in Democratic hands.

Anyway, that was more of the president's showdown, beat down with Democratic leaders earlier today. Now, President Trump continues to forge ahead despite Democratic obstruction.

Earlier tonight, he tweeted this: Thanks to Leader McConnell for agreeing to bring a Senate vote on criminal justice this week. These historic changes will make communities safer and save tremendous taxpayer dollars.  It brings much needed hope to many families during the holiday season.

All right. Joining us now with reaction to this and so much more, Texas senator -- whoa -- we got the new beard thing going on. I didn't know you had that.

Ted Cruz is with us.

Good to see you, Senator.

SEN. TED CRUZ, R-TEXAS: It's good to be with you, Sean.

HANNITY: I think you're the only guy in history. I may be wrong, I think you've had more money thrown at you in that last election than ever before in any Senate race. Is that pretty accurate? Almost a hundred million?

CRUZ: Yes, no, it's right. They spent over $80 million against us. We were outspent three to one, and they increase Democratic turnout by over a hundred percent. But thankfully, we turned Texans out, we turn Republicans out, and we ended up winning statewide. Very gratified victory.

HANNITY: Important race. Here's what I want to ask you -- I remember when in 2013 or '14, when you did a filibuster and I watched I was up for a good part of the night, I can tell you who actually supported you, and I watched you and then there were predictions he's just lost us the Senate. And in 2014, no, we actually had a very good year for the Senate.

I watched the president today and I'm thinking -- this is what people want from their elected officials, to fight for the promises they made. You were fighting on health care then, he's fighting on borders now. Why don't we see more of this in the Republican Party?

CRUZ: Sean, I think you're exactly right. The American people had for a long time been frustrated with Washington, frustrated that too many too many elected officials don't follow through on their promises and they want us to do what we said we would do.

You know, I watched that whole exchange with the president, Chuck Schumer, and Nancy Pelosi, and I think the president was terrific that he was standing up and saying, we're going to keep our promise. We're going to secure the border. We're going to build the wall.

And I'll tell you, one of the surest indications of how unhappy the Democrats were in that exchange is over and over again, Nancy Pelosi says, can we turn the TV cameras off? We're not supposed to be doing this publicly.

HANNITY: Right.

CRUZ: You could tell there are the losing end of the argument when she's scared that cameras are showing that she and the Democrats are for open borders and the president is fighting to do what the American people want, which is secure the border, build the wall and keep our country safe.

HANNITY: Well -- and I was down with Rick Perry on the border and on boats and helicopters. I've been down to the border from the Rio Grande through San Diego 13 times. I sat through a security briefing with Governor Perry, 642,000 Texans victims of crime in a seven-year period.

Here's my question though -- and by the way, I got to give Lindsey Graham credit, when he stood up to Justice Kavanaugh in that case against what was happening to him. Here's my question: everybody seemed to fear a government shutdown, don't essential services continue? The elderly will get their Social Security checks.

CRUZ: Right.

HANNITY: Medicare continues, our military are in place, so why always the big fear about a shutdown on something as important as our national security?

CRUZ: Well, listen, essential services continue during any shutdown, and at this point about 70 percent of the federal government has already been appropriated. So, we're fighting over about 30 percent of the federal budget.

Now I personally hope we don't have a shut down but I think the president is absolutely right to say the American people want the border secured. It's the right thing to do. And the Democrats are just being obstructionist.

They are opposed to border security and I'll tell you that's a big reason why Republicans grew our majority in the Senate this election, as the president noted, winning North Dakota, and Indiana, winning Texas is because the American people want the border security.

HANNITY: Let me ask you about Mueller and where we are with this. First of all, your thoughts on the double standard, Hillary Clinton, the Uranium One deal gave 20 percent of our uranium to the hostile nation of Russia and the hostile actor Putin, nobody investigates that. Twenty percent.

And 145 million went back to the Clinton Foundation or the dossier which we now know that they never vetted but it was the foundation of this entire or the bulk of information for the FISA applications. Nobody talks about that.

The money that paid for the dossier was funneled through a law firm. That would seem to me it would be a campaign finance issue but they are trying to claim Donald Trump has campaign financial issues, as a lawyer, I'm asking you, do you see that? Because I do not.

CRUZ: Listen, all of these are serious allegations. And the Department of Justice needs to investigate serious allegations of criminal conduct. One of the things frustrating over the last two years is we have not had sufficient accountability in the Department of Justice.

I think the Department of Justice should be blind to political party. I don't want a Republican DOJ, or a Democratic DOJ. I want the Department of Justice--

(CROSSTALK)

HANNITY: Just equal justice.

CRUZ: -- that's faithful to the Constitution and the law.

HANNITY: Right.

CRUZ: And I'm hopeful with the new attorney general nominee Bill Barr that we will see that at the Department of Justice.

(CROSSTALK)

HANNITY: May I ask you a question?

CRUZ: We need to make sure that everyone is held accountable.

HANNITY: I had this woman Alice Marie Johnson on who the president commuted her sentence. Amazing woman, 20 years, on single drug crime. How do you feel about the prison reform bill as long as violent felons are not included?

CRUZ: Well, I think we are getting ready to have a major bipartisan victory. And I want to commend the president's leadership on criminal justice reform. I'm a longtime advocate of criminal justice reform and I think reducing mandatory minimum sentences for nonviolent drug offenders makes a lot of sense.

There are far too many young black men in prison for decades for simple possession, and that's not right. And so, but my big concern, you just put your finger on it, is we should not be releasing violent criminals. Violent criminals are totally different. I draw a big line between violent and non- violent.

And so, what happened last week, I drafted an amendment to this bill that excluded violent criminals that said we're going to focus relief on nonviolent criminals but rapists, murderers and violent criminals are going to stay in jail.

The sponsors of the bill in the White House they took my amendment word for word and when they took my amendment I'm now supporting, and I'm a co- sponsor, I urged Mitch McConnell to take it up and schedule a vote. And just today he announced, we are going to do it. I think we are going to pass this, which will be a major, major bipartisan victory and I think it's in the interest of justice.

HANNITY: I do, too. All right, Senator, well said. Good to see you. I'm getting used to the new look. If it gets wider and longer, next year you could be Santa Claus. You have ways to go.

CRUZ: Ho, ho, ho.

HANNITY: All right. Senator Ted Cruz, thank you.

All right, up next, a major developing terror situation in France. Plus, the A.P. now reporting that General Michael Flynn asking for probation and community service for lying to investigations.

Trace Gallagher has all the details later. We have a big announcement. Not a good day for Stormy Avenatti. We'll get to that too, straight ahead.

(COMMERCIAL BREAK)

HANNITY: All right. Breaking news, this is a Fox News alert. A.P. is now reporting that General Michael Flynn has requested probation and community service. Earlier today also, there was a deadly shooting in France which is now being treated as a terror incident.

Trace Gallagher joins us live in our west coast newsroom tonight with the latest on both of these stories. Trace?

TRACE GALLAGHER, FOX NEWS CORRESPONDENT: Hi, Sean. Let's begin with the shooting. The attack happened near Stroudsburg famous Christmas market which is one of the city's biggest attractions. The same Christmas market was the focus of an Al Qaeda plot back in 2000, although it remains unclear if the market was targeted this this evening.

Witnesses say the suspect initially open fire on people crossing a bridge and that the gunfire came in several bursts, sending people running and panicking into nearby buildings and restaurants. Authorities have now confirmed that four people are killed, and a dozen wounded. Check that three now killed, they downgraded it, a dozen wounded, though six of the injuries are said to be minor.

Investigator say the 29-year-old gunman was born in Strasburg and is well known to local police as a terror suspect. In fact, before today shooting, police converged on the suspect's apartment in connection with an armed robbery earlier this week.

Grenades were found during that search but the suspect fled the apartment before police arrived, and then despite heavily police presence at the Christmas market, the suspect also got away there. They do be believe he has links to extremist groups.

And separately tonight, we should say that breaking news ahead of his sentencing next week for lying to investigators about his contact with Russia's ambassador to the U.S. The lawyers for Trump national security advisor, the former national security adviser Michael Flynn are now asking that Flynn get probation and community service instead of jail time.

Remember, this is key because prosecutors have also agreed the retired army lieutenant general should spend zero time behind bars. The sentencing is next week and prosecutors have until Friday to reply to Flynn's request for community service. They are asking for 200 hours of community service, no more, and no jail time. Sean?

HANNITY: He spent only 33 years serving his country. Trace Gallagher, thank you. I think he's been through enough. We'll continue to monitor both of these stories.

Also, tonight, a U.S. district judge has ordered Stormy Daniels to pay almost $300,000 to President Trump for his legal fees after her defamation lawsuit against him was dismissed.

Meanwhile, more signs of a lot more Clinton corruption. John Solomon out with a new report entitled "Did the Clinton Foundation mislead the IRS? State filings raise the question." We did reach out to the foundation for a response they told us in part these charges are minor infractions, similar to a speeding ticket. Only bad if you are a Republican.

Joining us now with reaction, The Hill's John Solomon, Fox News contributor and investigative reporter, Sara Carter, and Fox News legal analyst, Gregg Jarrett. Did the Clinton foundation mislead the IRS, and why was the home and the whistle-blower, why was that home raided? Do we know, John?

JOHN SOLOMON, VICE PRESIDENT, THE HILL: I think we do. I think in that one whistleblower -- and by the way that's not a whistleblower that will be testifying Thursday. Very different. I think there was concern there were classified documents still at the house and the government wanted to make sure that they were in the proper storage facility. I don't think it's more than that.

Now let me tell you about the Clinton Foundation. In 2005, Utah regulators were reviewing their license to operate in the state of Utah and they said, hey, we see some missing data on your form. You should amend your form. You're not disclosing your fund-raising consulting fee is on the line that's required, amend that and then we'll give you a licensed.

And the Clinton Foundation came back and said, no thanks. Too much expense to go through the trouble and fixing our IRS form and they just pull that out of the state and then do charitable.

I go through about 2,000 pages of documents on this column and you will see numerous instances where they have a consent agreement and they admit to wrongdoing in Mississippi. They are forcibly, involuntarily closed down in Massachusetts over a technicality. They don't have a perfect record in complying with regulatory compliance and I think that's one of the issues you are going to see Thursday at the hearing with Mark Meadows.

HANNITY: It's going to be fascinating. Let me go to Gregg Jarrett on the legal side of this. Uranium One and I know all of us know William Campbell. That is going to be a big issue only because that, too, is connected to the Clinton Foundation and the 45 -- 145 million thrown back to the Clinton Foundation.

We knew that Putin operatives were in this country involved in bribery, extortion money laundering, and kickbacks.

GREGG JARRETT, FOX NEWS LEGAL ANALYST: Right.

HANNITY: OK. Then the $145 million kick back. Between that and the dossier that Comey admits he never verified.

JARRETT: Right.

HANNITY: Big problem. All of these Clinton issues now are definitely going to be in the forefront. My sources tell me, in a major way, in spite of all the double standards that has existed up to this point?

JARRETT: Sure. Because it's a crime to confer a benefit to a foreign government or to anybody in exchange for money. And you know, one has always wondered why the Clinton Foundation wasn't seriously investigated, not to mention Hillary and Bill Clinton.

At the same time, they were investigating the Russians over this extortion, bribery, and money laundering, et cetera, it turns out there were four people in charge of that investigation. Robert Mueller, James Comey, Andrew Weissmann and Rod Rosenstein. So, I think we have answered--

(CROSSTALK)

HANNITY: Wow, how about they keep coming up together.

JARRETT: And you know, I write about all of this in the book, in my book "The Russia Hoax." And you know, it's obvious in addition to those individuals that Loretta Lynch's Department of Justice opened a sham investigation that quietly vanished. Why? Longtime friends of Hill and Bill.

HANNITY: All right. Sara, I know you spent a time, a lot of time with William Campbell. We had a spy. Let's talk about Russia. In Putin's network, that wanted a foothold in our uranium industry. We don't have enough uranium. We have to import uranium.

And they ended up getting this approved by Hillary Clinton and Eric Holder and then the money from the people flowed back to the Clinton Foundation. How could anybody seriously talk about Russian influence and not deal with the Uranium One, Hillary Clinton, and not deal with the phony fake Russian dossier that she paid for that was used to influence the outcome of the 2016 election by disseminating lies about Donald Trump.

SARA CARTER, FOX NEWS CONTRIBUTOR: Well, Sean, there are several things here and I think you hit it right on the money. William Campbell, I was talking to him just recently as this week. You know, he had all this information, he was delivering it in very specific notes--

(CROSSTALK)

HANNITY: Who did he give it to?

CARTER: -- to his FBI handlers, to the FBI directly. He specifically told them about pay for play. How the Russians were planning on influencing Hillary Clinton and the foundation that their hopes were that during even, during the time between 2009 and 2013. Remember, this is an area where the FBI was investigating.

I mean, the investigation was never shut down. What happened to all of that information why they didn't go forward with it that William Campbell spoke to the Little Rock Arkansas FBI field office recently and he delivered that information.

And now we know there's other whistle-blowers coming forward. So, something is shifting, something is happening and Hillary Clinton and the foundation are being investigated. We'll just have to wait and see what they find.

HANNITY: I know everybody is frustrated because this has been only a one- sided investigation.

CARTER: That's right.

HANNITY: It's all on all things Trump. But and I think you will all confirm with me, is that my sources tell me all of this is coming out. The dossier, the FISA abuse, to the Uranium One deal. All agree?

JARRETT: I hope you are right.

CARTER: I agree. Lots of sealed indictments, Sean.

SOLOMON: I'm certainly hearing that now.

HANNITY: I have very good sources. I really do. You guys do too.

CARTER: I know.

HANNITY: Great work all three of you. Thank you. When we come back, Nancy Pelosi, really? Mocking the president's manhood after the beat down that she and Chuckie got today? Jesse and Jessica are here. We'll find out who is a world, and a big programming announcement coming up at the end of the show.

(COMMERCIAL BREAK)

HANNITY: All right. So, as we've been talking about all night, and we showed you earlier, Nancy Pelosi and Chuck Schumer clearly rattled after today's meeting at the White House. Pelosi even describing it as tinkle contest. It talked about the president's manhood because he supports security in our southern border.

All right. Whose world is it going to be tonight? Fox News contributor Jessica Tarlov. The guy has two shows because one is not enough. The Five, Watters World, Jesse Watters.

Let's just talk about, can we pretty please with -- pretty please with sugar on top get these terrible cameras out here and negotiate a loan? Because you are making us look really bad and it's embarrassing. Then go back and talking about manhood in a tinkle war and calling the president a skunk, I'd say it was pretty one-sided. And the president saying, I'll own a shutdown. Good. Because the American people ant the border wall.

JESSE WATTERS, FOX NEWS HOST: Yes. Being manly is a burden, of all people I understand that, Sean. But listen, being manly is going to build a wall that's going to prevent more Kate Steinle's from being killed, then I'm all for that.

And I think she's mixing metaphors with a tinkle. I think it's don't pee down my leg and tell me it's raining. So, she seems a little confused on that issue. She does want to go back to the smoked-filled back rooms and cut a deal and pass a bill so she can find out what's in it.

Trump totally exposed her. He beat both of them. Two on one. Sean, it was like Candia doubles. He smoked them both and now they are running back to the cameras to try to spin the story. It's not even a lot of money he's asking for, five billion out of $4 trillion.

HANNITY: Exactly.

WATTERS: That's like loose change in a couch.

HANNITY: And by the way, and it's not like 150 billion like Obama gave the Iranians.

JESSICA TARLOV, FOX NEWS CONTRIBUTOR: It was their money. He was returning their--

(CROSSTALK)

WATTERS: It was the terrorist money. Yes, go with that, Jessica.

HANNITY: But we didn't have to give it to them.

TARLOV: No, I will go with that because that's actually what happened.

HANNITY: Keep going with that.

WATTERS: Yes, give the terrorist their money back.

HANNITY: That's he's leaning.

TARLOV: Nancy Pelosi smoked the president, 100 percent.

HANNITY: What are you smoking if you believe that?

TARLOV: You guys are better about it and I get that. But she showed him up, she fact-checked him to his face--

(CROSSTALK)

WATTERS: How did she do that?

TARLOV: -- and he couldn't stand it, so he got angry and he took responsibly for the shutdown--

(CROSSTALK)

HANNITY: He wasn't angry.

TARLOV: -- which he didn't want to do and Mike Pence sat there with his eyes closed meditating or whatever was going on there because he couldn't even deal with how badly Trump was being beaten by Chuck and Nancy.

HANNITY: Jessica--

WATTERS: Who and I want the president to be a little bit angry. I mean, remember Barack Obama he was too cool. We have the American beheaded by ISIS. And what did he do? He played golf and a fist bump. I like a president that gets a little fired up.

(CROSSTALK)

TARLOV: let's talk about Jamal Khashoggi then. I'm Jared Kushner, hey, MBS, no big deal, I'm going to help you get through this. What would you guys do if that was going on under Obama?

(CROSSTALK)

HANNITY: You know what I love about this? You know what? The American people have put up the poll earlier. They want the border secure. We see the drug trafficking, human trafficking, all the terrorists that have that we know known terrorists, ISIS, Al Qaeda, that have tried to cross our border.

TARLOV: He made up that said.

HANNITY: All the crimes committed by a small percentage but we've got to keep the American people safe, right, Jessica.

TARLOV: Absolutely. But Nancy Pelosi, again was very clear. She said, of course, border security. Chuck Schumer is offering him $1.6 billion. I would take the deal if I was him because by January 3rd, he is not going to have any control of that House that he thinks he can get the border wall passed through. And he's not going to get a better deal. So, take the money and run, my friend, in the Oval.

WATTERS: Yes. Listen, it was the--

(CROSSTALK)

HANNITY: He get the military to pay for it.

WATTERS: It was the Schumer shutdown last time, it didn't work so well. I think it takes a lot of guts that Trump owned the shutdown. He doesn't, you know, fold like those other people the last time.

(CROSSTALK)

TARLOV: He was a petulant child.

WATTERS: He's going to own this shut down.

TARLOV: Fine. Enjoy it.

WATTERS: And he's going to get the wall. It's not going to be like promising to shut down Gitmo and not delivering in eight years. He's going to get the wall--

(CROSSTALK)

HANNITY: Not going to be a red line either.

TARLOV: Very strong bad tonight, Jesse. Sean, come on, give it to me. I had everything ready.

WATTERS: She's begging for it, Sean.

TARLOV: I want it.

HANNITY: All right. Let me tell you, I've got a decision. Ninety-nine to one. Watters world.

WATTERS: You got one.

HANNITY: Not even close tonight.

WATTERS: You got one.

TARLOV: This is pathetic.

HANNITY: All right. When we come back, a big announcement to share with you. That's next.

(COMMERCIAL BREAK)

HANNITY: All right. A big programming announcement. Tomorrow the first lady Melania Trump will be visiting two military bases and the aircraft carrier the USS George H.W. Bush. We will be there for all of it. We're going to take you behind the scenes with Mrs. Trump. We'll have an exclusive sit-down interview with her aboard the aircraft carrier. And the full interview will air tomorrow night 9 p.m. Eastern. We hope you don't want to miss it. I hope you will set your DVR.

Remember, we will always be fair and balanced. We are not the destroy-Trump media. Here's the question you have to ask yourself tonight. Are you happy that somebody is willing to fight to keep their promises? I personally find it refreshing. Maybe you don't like the combative style but it gets us tax cuts, the end of bureaucracy, conservative justices and it'll get us a border wall.

That's all the time we have left. But let not your heart be troubled because the news is not over because Laura Ingraham is up next.

Hello, Laura. 
 
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