This is a rush transcript from "Your World," January 16, 2019. This copy may not be in its final form and may be updated.

NEIL CAVUTO, HOST: Shutdown on, State of the Union may be off.

House Speaker Nancy Pelosi is proposing it. Now the White House is responding to it.

Welcome, everybody. I'm Neil Cavuto. And this is "Your World."

And in a letter, the House speaker telling the president that, because of the shutdown, they should work together to determine another suitable date, or maybe just consider delivering your State of the Union address in writing to Congress.

Mrs. Pelosi citing security concerns, but now the Department of Homeland Security secretary herself, Kirstjen Nielsen, is saying, what concerns?

We're going to get right to the bottom of it with Florida Republican Senator Rick Scott and New Jersey Democratic Congressman Josh Gottheimer, who met with the president today on this very shutdown.

First, FOX Business Network's Blake Burman at the White House, where all of this was unfolding -- Blake.

BLAKE BURMAN, CORRESPONDENT: Hey there, Neil.

The stalemate really ratcheting ratcheting up today with this one, as Nancy Pelosi suggested that the televised portion of the State of the Union address set for later this month should no longer go forward.

She is citing security concerns, saying that the United States Secret Service falls under the Department of Homeland Security, which, of course, is impacted by this partial government shutdown.

So she wrote a letter to the president which ends with the following, saying -- quote -- "Sadly, given the security concerns, and unless government reopens this week, I suggest that we work together to determine another suitable date after government has reopened for this address, or for you to consider delivering your State of the Union address in writing to the Congress on January 29."

However, one DHS official, the Department of Homeland Security, tells FOX that Democratic leadership never even reached out to the Secret Service and the head of DHS, Kirstjen Nielsen, said there is not a security issue at all.

Here was a tweet from her today. She said -- quote -- "The Department of Homeland Security and the U.S. Secret Service are fully prepared to support and secure the State of the Union. We thank the Service for their mission focus and dedication and for all they do each day to secure our homeland."

Now, after that, the Democrat response seemingly came from Congressman Bennie Thompson. He is the head of the Homeland Security Committee. He said -- quote -- "It would be completely inappropriate for President Trump to further deplete the agency's resources and manpower for the sole purpose of having an hour of uninterrupted prime-time television coverage."

Now, here's the bottom line with all of this, Neil. The president of the United States is required to submit an update of the state of our union to Congress. But the televised portion of this only became tradition in 1965, when President Johnson started it.

So, in theory, President Trump could still give a State of the Union address, just not up on Capitol Hill in front of Congress, at a place, maybe the Oval Office, maybe the White House, maybe somewhere else, and the date of his choosing.

So far, though, no direct response from the president to Nancy Pelosi -- Neil.

CAVUTO: Now, you know this because you're a genius. Do you know the first president who said, written or otherwise, it's stupid?

(LAUGHTER)

BURMAN: And there have been a lot of presidents since, I'm guessing, who have wanted prime-time television coverage, right?

CAVUTO: Right.

But Thomas Jefferson thought it made him look like a monarch, a king, and he didn't like the idea. And I know that, Blake, just so you know, because I covered that administration.

BURMAN: I know. I know. You did.

(LAUGHTER)

BURMAN: I was there for the Johnson speech as well.

CAVUTO: Yes, yes, all right. Yes, OK, very good. Touche, my friend.

BURMAN: See you.

CAVUTO: All right, in the meantime, let's get the read on this, because the finger-pointing is going on and on, and whether it's a written speech or broadcast speech or no speech, is it etched into stone that we have to do this?

It depends on who you talk to.

Let's get to Democratic strategist Suraj Patel, Republican pollster Lee Carter, and the editor in chief of Campus Reform, Lawrence Jones.

Lawrence, end it with you.

This notion that this drags on a while and a pox on everybody, what do you think?

LAWRENCE JONES, CAMPUS REFORM: Well, I think this is politics. It is a little messy, because their excuse was total B.S.

They didn't even call to the Secret -- apparently, she got a briefing that the president wasn't able to get from the Secret Service and Homeland. So she lied to the American people, because that's factually inaccurate.

The second thing is, I think the president should take -- take it to the Senate.

CAVUTO: Who is responsible for the security of the Secret Service, who have to screen a room and get ready for a big speech?

JONES: Well, that's Homeland and the Secret Service.

CAVUTO: So, she would know?

JONES: Yes, they would know.

They're over that. The national security adviser may get some of that briefing as well. The FBI counter -- counterterror terrorism unit may get -- the president gets all those briefing. Members of Congress have access to those briefings.

What we know is that that didn't happen. They didn't even call over there to ask them if there was a security threat. They don't want the president having prime-time television. That's just the fact of the matter. She could have said that. I don't believe right now, with the government shut down, that the presidential address the American people.

I think the president should just go over to the Senate. Go across the hall. Televise it from there.

CAVUTO: Well, what about just from the Oval Office?

JONES: Or from the Oval Office. He just did that, though.

CAVUTO: What are the requirements on this? Do we know?

LEE CARTER, REPUBLICAN POLLSTER: I don't know what the requirements are.

But I will tell you something that I'm concerned about. The fact that she's out saying about he shouldn't do this, that means she has no intention of making a deal in the next 13 days. Like, let that sit in for a minute. She has no intention of making a deal.

That's what I'm hearing right now. And that's a bigger problem.

(CROSSTALK)

CAVUTO: You're saying doesn't the president to shine or get some publicity.

CARTER: She doesn't want anything to happen for the next 13 days. But maybe she wants to keep going to Puerto Rico, watching "Hamilton" and not showing up for meetings. I'm really concerned about that.

CAVUTO: It's a very nice play, no matter where you see it.

(CROSSTALK)

CARTER: It's a fabulous play, but come on.

(CROSSTALK)

CAVUTO: Suraj, what do you think?

SURAJ PATEL, DEMOCRATIC STRATEGIST: Yes, I mean, let's be frank here, guys. The issue here is that the government is shut down.

(CROSSTALK)

CAVUTO: Wait a minute. Whoa, whoa, whoa. Let me write that down.

(CROSSTALK)

(LAUGHTER)

PATEL: And so why are we talking about the drama between two of our Washington actors, when we have got our food not being inspected, lines at TSA piling up at Atlanta Airport and all across this country?

JONES: The president could have discussed it at the State of the Union.

(CROSSTALK)

PATEL: And he did discuss it last week. We have heard the arguments time and again.

(CROSSTALK)

CAVUTO: But why is she doing this two weeks ahead of time? Then she is saying that doesn't even want...

(CROSSTALK)

PATEL: And on top of everything, there is a concern here.

JONES: What?

PATEL: First off, Capitol Police...

JONES: Do you believe that the security concern is just total B.S.?

PATEL: I do believe that, if we have people right now, not enough resources to even secure our airports and our food...

JONES: Homeland said that's not true.

(CROSSTALK)

JONES: Homeland said it wasn't true. The Secret Service says it's not true, so that argument is completely off the table.

PATEL: Are there delays right now? Are there delays right now?

(CROSSTALK)

JONES: Is there a security threat to the president of the United States going there?

(CROSSTALK)

CAVUTO: Just answer me this, that don't you think it's a little jumping the gun to already urge the president cancel the speech, when you have got another two weeks to go?

Maybe she is factoring in at least two more weeks of a shutdown, and without budging?

PATEL: No, I absolutely don't think it's premature to say, hey, let's make some alternate -- look, it takes a lot of time...

(CROSSTALK)

CAVUTO: She didn't say just in case. She said let's cancel it.

PATEL: It takes a lot of time to prepare for a massive national event like this.

JONES: They have been preparing for it.

PATEL: And so the question is, now, you can't just pull the plug on it two days out.

CARTER: Sure you can.

PATEL: We are losing point 21 percent of GDP growth a week during this temper tantrum of a recession.

CAVUTO: Ronald Reagan...

(CROSSTALK)

CAVUTO: ... in '86 just days before the planned speech because of the Challenger disaster.

PATEL: And so what I'm saying, once again, is, why isn't the president focused on getting this government reopen?

(CROSSTALK)

JONES: Well, he could if Democrats would stop vacationing.

(CROSSTALK)

CARTER: Why isn't she?

She's saying, for the next 30 days, we're not going to make a deal.

(CROSSTALK)

PATEL: The president had the House, the Senate, and his presidency, when he could have kept a continuing resolution going to not have a shutdown in the first place.

(CROSSTALK)

CAVUTO: All right, let's step, guys, because this -- the recrimination back and forth and who's the bigger loser is a waste of time.

JONES: Yes.

What I want to get a sense of is where this goes. If this -- we have already broken records for government shutdowns. And this could drag on a while, to your point, Lee, at least another couple of weeks.

I'm told this could drag on for months. Now, the history of polling on this -- you know this better than I do, Lee -- that eventually it starts with one or the other party getting the blame. But as the frustration builds, both are fingered by the American people, who raise a finger to both of them.

CARTER: Yes.

I think that's what we're starting to see. This is the sort of the moment where Democrats right now, there's no question the polling says that people blame Trump and the Republicans for the shutdown at this point.

But there is a point right now -- and that is a pivotal point -- that the Democrats look like they're unwilling to have a conversation and engage. They didn't show up at meetings. Now they're saying, let's postpone, let's cancel the State of the Union. That's two weeks from now.

They're giving no indication that they have any willingness to compromise. If the Republicans right now were to put something on the table...

(CROSSTALK)

CAVUTO: Why is it on Democrats to compromise and budge on this issue, when the president...

CARTER: Have a meeting.

CAVUTO: OK, fine.

(CROSSTALK)

PATEL: They have had the meeting. They have had the meeting.

(CROSSTALK)

CAVUTO: One second.

And the president is not expected to compromise on his just -- border funding?

CARTER: Well, look, I think there is going to be a compromise.

CAVUTO: You know, stubbornness is in the eye of the beholder, right?

(LAUGHTER)

CARTER: There's no question. Where you sit on the political spectrum is how you're going to view this right now.

But I think there is going to be a change in perception right now on who's to blame on how long this is dragging out. And I think that Democrats are going to have to at least have a conversation, make demands.

And I think that the president and the Republicans are going to have to give a little. There's no question that somebody is going to have to budge.

(CROSSTALK)

CAVUTO: But both would have to budge.

(CROSSTALK)

CAVUTO: The irony is that Democrats who are bemoaning this no wall position now were the same ones who approved 136 miles of wall building on the part of Barack Obama.

And, to your point, Republicans who were bemoaning that DACA and the frustration of doing one deal over the other were open to that as part of comprehensive immigration reform. So both sides have actually held the other view and been open to the other point of view.

JONES: Right.

CARTER: That's right.

CAVUTO: And now they have gotten very stubborn.

PATEL: Look, Neil, you made a really good point.

CAVUTO: Oh, I make lots of them.

(CROSSTALK)

(LAUGHTER)

PATEL: I believe you do. You have been covering since Thomas Jefferson.

CAVUTO: Sure, exactly.

PATEL: No, the truth is that this isn't about -- I'm less interested and I think most of your viewers and most of the American public is less interested in blame and polling and who's going to be taking on heat for this thing.

I think what really matters is that there have been, time and again, compromise negotiations offered. Border security, beefed-up surveillance, all those things have been put on the table.

CAVUTO: Are you optimistic they're going to get anything done?

PATEL: I absolutely have to be, because there's -- this is not a tenable way to govern a country.

CAVUTO: I understand that.

JONES: I'm not optimistic, because this is why.

Democrats hadn't been put on the line to say, where did you guys pivot? You guys were for the wall or something type of border security.

CAVUTO: Right.

JONES: And now you guys are against it. But no one really asked them, why? Why did you guys decide to just completely abandon that policy?

CAVUTO: But Republicans were equally adamant that they wouldn't attach this to any government funding measure, right?

So each side has played fast and loose.

JONES: I think that's a fair point, but the compromise is the funding.

How can we compromise and maybe get a DACA package on there? And the president has offered that.

CARTER: Yes.

JONES: But the Democrats don't attend meetings.

(CROSSTALK)

PATEL: I don't think it's good to hold the government and federal pay workers hostage for a border wall.

CAVUTO: All right.

PATEL: They are offering, let's open up the government and negotiate on a separate border package.

(CROSSTALK)

JONES: So, we can continue the continuing resolutions all the time.

CARTER: So, why is anything going to change?

(CROSSTALK)

CAVUTO: I wish we had more time, guys. Blessedly, we do not.

And we saved a lot of time talking over one another.

As they're doing this here, we're getting word that the president will be meeting with senators -- they haven't named the senators who he will be meeting with -- and his national security team, all on Syria, of course, and this latest attack that killed four Americans.

We have a lot more coming up on that after this. So much happening concurrently.

More after this.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The ayes to the right 306, the no's to the left 325.

So, the no's have it. The no's have it.

THERESA MAY, BRITISH PRIME MINISTER: The House has put its confidence in this government. I stand ready, I stand ready to work with any member of this House to deliver on Brexit and ensure that this House retains the confidence of the British people.

(END VIDEO CLIP)

CAVUTO: All right, might maintained the confidence of the British people, but by the slimmest of margins here.

A day after getting shellacked, the prime minister essentially told, we're watching you, we're watching you very, very closely.

FOX Business Network's Ashley Webster in London on what happens now -- Ashley.

ASHLEY WEBSTER, FOX NEWS BUSINESS CORRESPONDENT: Well, that's a very good question; 45 minutes from now, Neil, we have been told that the prime minister will give a statement outside her residence at 10 Downing Street, about two minutes up the road.

So it will be interesting to see what she has to say. As you mentioned, this comes after she survived that confidence vote. But it wasn't that -- it wasn't a huge victory by any means, 19 votes, 306 saying yes, we agree with the motion of no confidence.

It's so confusing, isn't it? No, 325, we don't agree with the motion. So she survives, but she still is under tremendous pressure. But after that vote, she addressed the House the Commons and said, look, her aim remains the same, to honor Brexit and lead the U.K. out of the E.U.

Take a listen.

(BEGIN VIDEO CLIP)

MAY: I'm pleased that this House has expressed its confidence in the government tonight. I do not take this responsibility lightly, and my government will continue its work to increase our prosperity, guarantee our security, and to strengthen our union.

And, yes, we will also continue to work to deliver on the solemn promise we made the people of this country to deliver on the result of the referendum and leave the European Union.

(END VIDEO CLIP)

WEBSTER: What has been the E.U.'s response to all of this across the Channel?

They're looking on a bit bemused, because they have the upper hand. French President Macron saying, you know what, guys, figure it out yourself, so we're not going to negotiate anymore. Pretty harsh.

We did hear from German Chancellor Angela Merkel, who said, hey, there is time to renegotiate, but you got to bring a plan to us.

So, a little more encouraging from the German chancellor.

But, bottom line, she has to find compromise, Neil. And unless she changes her mind on some key points, it's going to be very difficult indeed. And Brexit could be delayed -- back to you.

CAVUTO: All right. Thank you, my friend, very, very much, Ashley Webster in London.

Don't we wish we added something like that here in the United States, where the government's not opening up, you open that government up or -- I don't know.

(LAUGHTER)

CAVUTO: We were up 141-and-a-half points here.

There's a sort of prevailing counterlogic here that what ails Britain is actually helping us. Much the same thinking goes with China slowing down. There's an interest in what's happening here and that we're a good default. How long that lasts is anyone's guess.

Let's get the read from market watchers Heather Zumarraga and Gary Kaltbaum.

Heather, what do you think?

HEATHER ZUMARRAGA, FINANCIAL ANALYST: Well, I'm glad our government doesn't function quite like U.K.'s Parliament, Neil, over there in E.U. and Brussels, the biggest bureaucracy in the world, in my opinion.

But, look, it matters to the U.S., because the U.K. is our fourth largest exporter. And as their currency weakens, if the pound weakens, that means it makes our goods much more expensive to the U.K. Our manufacturing sector gets hurt, as well as our farmers.

And in the end, uncertainty is not good for our markets. But in this case, we're seeing capital from abroad flock to the U.S. because we're looking pretty good on a global basis right now.

CAVUTO: Gary, if we are benefiting by default, or just by comparison, and there are many who argue that kind of thinking only goes so long, and is tested with real pressures that build on U.S. banks and the like exposed to Britain, where are you on this?

GARY KALTBAUM, FOX NEWS CONTRIBUTOR: Well, look, the Brexit vote was June 23, 2016, and now they're talking about extending it again.

So I think as it continues to move forward, it has less an effect on us. But, look, if things really do blow up, it will have an effect not only there, but here and worldwide. What happens everywhere matters.

China has -- their economy has been heading south very quickly. And that's been affecting things. I think what has been helping markets is everybody's going easy again. You have our central bank do a 180. China just put $83 billion yesterday into their banking system.

And Europe and Japan, who have been promising to get off of the printing of money, well, they have decided to keep that going for another bunch of months. And I think that's what's doing the job here for markets. And let's hope markets continue.

CAVUTO: I wonder if the American consumer is the unsung hero, Heather.

And you have been talking about this. Certainly, Ford, with its upbeat sales forecast, was basing that on demand for cars, its cars, obviously. If you think about Netflix and hiking prices up 18 percent on existing customers, they obviously feel their customers will happily -- maybe not happily, but absorb that.

What is going on? Is the consumer the key, or what?

ZUMARRAGA: The consumer is carrying us higher, Neil.

I don't believe that you drive a Ford. But the consumer is two-thirds of the economy right now in the U.S. And despite all this political turmoil, despite the government being shut down, despite Chinese trade tensions, our markets are still heading higher thus far because the consumer is strong.

But I think if the shutdown continues through the first quarter, it will weigh on our markets because consumption will decrease. And I think that U.S. growth could install if there is a prolonged shutdown, but thus far markets are up big since -- year to date since January 1.

CAVUTO: Yes, you're right.

Gary, real quick, the shutdown drags on for another month, then what?

KALTBAUM: Nothing good.

(LAUGHTER)

KALTBAUM: I mean, look, that affects the economy.

And, really, it affects the psyche of the country. When you have two parties that are just not getting the job done, I wonder what day we wake up and markets do start reacting to what's going on. And, look, it's a pox on both, both to blame. And they better get it done, sooner rather than later.

And there's 800,000 paychecks not going to good Americans, and some of them are paycheck to paycheck. So, the sooner, the better.

ZUMARRAGA: And they live paycheck to paycheck, yes.

CAVUTO: Indeed. Many Americans do.

All right, guys, thank you very, very much.

We're getting a little bit more details on what senators are going to be meeting on the Syria thing with the president of the United States, Senator Mike Rounds, the Republican of South Dakota, Thom Tillis, who was a guest on this show yesterday, Republican of North Carolina, Dan Sullivan, Republican of Alaska. Again, these are coming in dribs and drabs here.

All of this as there were separate meetings, and the president hopes to get future meetings with Democratic congressmen on this government shutdown.

One of them is here on this whole issue, New Jersey Democrat Josh Gottheimer, on what he learned and what he's pushing -- after this.

(COMMERCIAL BREAK)

CAVUTO: All right, you're looking on Capitol Hill right now. This is right outside Chuck Schumer's office, the Senate minority leader. He is going to be addressing reporters very soon, give an update on where things stand, where he thinks things stand right now with this 26-day-old government shutdown.

Partial or otherwise, it's the longest the government has been sort of sidelined here. How much longer could it drag on?

The president is trying to reach out, he says, to Democrats as well. The chiefs aren't hearing from him, but a lot of the Indians are.

New Jersey Democratic Congressman Josh Gottheimer was with the president earlier, joins us right now.

Congressman, thank you for taking the time.

JOSH GOTTHEIMER, D-N.J.: Thanks for having me.

CAVUTO: So, where do you stand on this? What did you learn meeting with the president?

GOTTHEIMER: We had a very productive and constructive conversation, Neil.

It was a bipartisan group of the Problem Solvers Caucus. And we basically got into the issues, while listening to one another, both sides, and really looked for a way forward.

And I think I left with the feeling that both sides are really interested in finding a way out. Obviously, I think it's very important that we reopen the government. You have got a lot of the -- you have got the economy taking a hit. It's affecting jobs and safety and security.

And so I think we got to open the government. But I really think there was an agreement that both sides should come to the table and really look for a way out.

CAVUTO: Congressman, did any of your party leaders tell you not to go? We heard anecdotal reports of that.

GOTTHEIMER: No. No.

CAVUTO: OK.

GOTTHEIMER: In fact, we have been talking to leadership along the way, as we should.

But I think a group of us really, the Problem Solvers really felt that we should go in a bipartisan way and talk to the president. And he invited us, and we went.

CAVUTO: All right.

Do you share the view of some of those leaders that a wall is immoral?

GOTTHEIMER: I think, you know, we need to have tough border security. I also think we need to fix immigration. So that's really where I'm talking about I see an agreement to be had.

And there are many of us in Congress that really think, if we sat down, we could find a way forward here. We have expressed that. And I have expressed that. And -- but I think you got to open the government.

It's very hard to actually have that conversation when things are shut down. And I have heard that -- I'm sure you have heard this from Democrats and Republicans, that we have got to reopen the government and have that conversation. And we have got to get things going.

CAVUTO: All right, so when the president hears from Nancy Pelosi that the wall is a nonstarter, he always goes back to the default position, all right, well, there's no use in trying to reopen things and go back, because you're already ruling out the one thing that I want to see happen.

Should she have done that? Should she have said, all right, we will -- we will leave that open?

GOTTHEIMER: I don't want to get into speaking for her.

CAVUTO: Understood.

GOTTHEIMER: I will speak for myself. I will speak for myself.

I think we need to make sure that we have tough borders. We have got to keep out criminals and drug dealers and terrorists out of our country. But we also need to have tough border security, yes.

(CROSSTALK)

CAVUTO: I'm sorry, sir. I just want to be clear.

You don't agree with those in your party who say the president has manufactured a problem? You see it as a legitimate problem?

GOTTHEIMER: Well, I think all presidents have seen that we -- all presidents, Democrat and Republican, have known we need to have tough borders.

That said, I think we need to actually address our immigration issues, and that's got to be dealt with too. You need to -- you have got to look at this together.

And I think you have got to do it when the government's open. But I think you have heard historically from Democrats and Republicans there's a way forward here with both those issues. But we have got to talk about it and be willing to talk about it. And I know we all talk about it in different ways.

But we have got to actually come to the table and have a real conversation, and not just on -- not just on TV screens yelling at each other, but actually really sit down face to face and keep that conversation going.

It's what the American people hire us to do. They expect us -- this is what I did most of my career in business -- they expect us to actually sit down and talk to one another, and not get everything you want.

And I think that's really what the Problem Solvers Caucus, which I co- chair, is really focused on. Where is that? Where is that common ground? And it's really going to be up to many people in my party and in both houses to really sit down and talk to each other.

CAVUTO: You're a young guy, but great wisdom in your -- in your position.

GOTTHEIMER: Well, I appreciate you saying that I'm young.

(LAUGHTER)

CAVUTO: Let me ask you this, then.

GOTTHEIMER: Yes.

CAVUTO: Is it your sense that those who refused to meet with the breath -- and he wanted to meet with a number of Democratic officials yesterday or congress men and women -- and I don't know whether it's true that they were told not to go. But they didn't go, not a one of them.

Now, you did.

GOTTHEIMER: A couple of them from -- a couple of them from yesterday actually came, that were invited yesterday decided to come to today's meeting.

CAVUTO: Well, that is literally what I was going to ask you. So, thank you for that.

GOTTHEIMER: Yes.

CAVUTO: So, do you think that it is bad when someone refuses an invite from the president to go to the White House and meet?

GOTTHEIMER: Well, lots of people have different reasons.

And I don't want to speak for my colleagues. I know that several who were invited yesterday actually came today. We decided to have one meeting, because they're in the Problem Solvers Caucus. So, they came today.

(CROSSTALK)

CAVUTO: Do they regret not going yesterday? Did they tell you, that was dumb?

GOTTHEIMER: No, no, no.

They just -- when we talked to yesterday, they said, well, why don't we just go today? And so we just made one meeting.

CAVUTO: OK.

GOTTHEIMER: I think then some rumors got out that they didn't want to go.

And I think they were -- I think we were all eager to sit down and talk. The White House invites you, and actually you want to have a -- and you can have a constructive conversation, which is what we did today, very productive, very constructive. And I think we really -- what we all said is, like, there is a way forward here.

And I think you heard both sides saying that. And, to me, that's what this is all about. It's what people expect us to actually do, talk to one another, figure it out, get the government open. Don't put our skies at risk or our food safety risk or our prisons a risk. Like, actually just, let's get -- let's get this done.

And I'm hopeful. And that's why I'm going to keep working on this, and I know many of us are, because we got to get it done.

CAVUTO: All right, in the end, we're all Americans. Forget Democrat, Republican, right or left.

GOTTHEIMER: That's exactly right. We're all Americans. That's exactly right.

CAVUTO: Congressman, thank you very much. I appreciate it.

GOTTHEIMER: Thanks. Thank you so much for having me. I appreciate it.

CAVUTO: All right.

So, as the congressman pointed out, there are still things that are stymied in the middle of this, like, you know, airplanes that are not getting up on time right now, long waits at airports, the TSA urging folks, maybe you should wait and get there about three hours ahead of your flight, just to be on the safe side.

Then there are loans that are held in abeyance, and all of this as the frustrations build in this partial government shutdown that's now in its 26 day.

We are waiting to hear from Chuck Schumer, what the latest is that the Senate position will be from the Democrats, because, right now, they're moving very fast not moving at all.

More after this.

(COMMERCIAL BREAK)

CAVUTO: Imagine just getting elected to the United States Senate, and the one and the major first big event, a State of the Union address, doesn't happen. Oh, to be Florida Senator Rick Scott. Oh, to have him in just a few minutes.

Stay with FOX.

(COMMERCIAL BREAK)

CAVUTO: Well, nothing like a little scare in the middle of a shutdown.

The National Air Traffic Controllers Association now saying that flying is, in its opinion, less safe than it was about a month ago, obviously before the shutdown, because of the strain on systems and personnel with the ongoing shutdown.

In other words, they have to work, even though a lot of them aren't getting paid. They will eventually be paid once the government reopens, but it's taxing them.

The head of the National Air Traffic Controllers Association, Paul Rinaldi, with us right now.

Paul, thank you for coming.

PAUL RINALDI, PRESIDENT, NATIONAL AIR TRAFFIC CONTROLLERS ASSOCIATION: Thank you, Neil, for having me on.

CAVUTO: How bad is this?

RINALDI: It's really starting to deteriorate.

The longer this goes, it's really becoming a deep concern of ours. We're starting to see efficiency, capacity and certainly safety starting to erode.

CAVUTO: Now, the TSA separately has sort of been giving guidance that maybe, just to be on the safe side, you would want to arrive three hours before your flight's departure. That's an hour more than is typically sort of considered.

Is it that bad?

RINALDI: Well, we're at a 30-year low of air traffic controllers in the system, fully certified air traffic controllers, of which about 20 percent are eligible to retire at any moment.

And if they go, we will not have enough controllers to run the normal capacity that we do day to day.

CAVUTO: So what is your alternative? What do you have to do? I mean, do you cut down on the number or urge the number of flights reduced to put up with the capacity you can deal with, or what?

RINALDI: Absolutely.

If we can't open up all our sectors, we will have to reduce capacity to ensure the safety of the system. But let's keep in mind there are many people that play an important role in the safety of the national airspace system that are not at work today.

Now, yesterday, I flew to Charlotte to celebrate the 10 years of the Miracle on the Hudson. And I know you know that one pretty well. And that controller had a full support team helping him out, giving him information that he could relay to the pilots, so they can make the best decisions. They're not working right now.

And that's how safety is being eroded.

CAVUTO: All right, who isn't working? I didn't think that controllers could just willy-nilly not show up or stage a sick-out.

RINALDI: Well, no, we're all coming to work.

CAVUTO: Right.

RINALDI: And, actually, I got a text as I was coming here today from a controller, and she's also married to a controller.

And for four weeks now, they have been going to work and paying child care for their two children. And she said, something has to give. One of us has to stay home, because we can't afford to continue to pay child care if we're not getting a paycheck.

So this government shutdown has to end immediately.

CAVUTO: All right. I can appreciate your views.

The FAA, though, said that you did send out an alarmist signal here, saying that: "Overall, the traveling public can be assured that our nation's airspace system is safe. Air traffic controllers and the technicians who maintain the nation's airspace system continue to work without pay as they fill a critical mission to ensure the public safety. We have also recalled a number of inspectors and engineers. We are allocating FAA resources based on risk assessment to meet all and safety critical functions."

You seem to be saying that safety as we speak is being compromised.

RINALDI: They actually agree with us.

They're calling in 3,000 more safety professionals to come to work, because they're concerned about safety being eroded in the system.

CAVUTO: So, if you don't have to fly, I wonder if you can be as blunt as to say, you shouldn't, or you should think twice?

RINALDI: I flew twice yesterday. I plan on flying tomorrow. It's going to be safe to fly.

But the system is built on layers of redundancy, of reporting systems and equipment that we need to put on. We're on a fix-on-fail with critical equipment. If some of that goes down, we're going to see massive delays, because we just won't be able to run the capacity we normally do.

So, if you have to fly, just expect that the system is not going to run normal.

CAVUTO: All right, we shall see.

Paul Rinaldi, thank you very, very much. I appreciate it.

RINALDI: Thank you for the opportunity.

CAVUTO: All right, there are whole new sheriffs in town when it comes to the House of Representatives, particularly when it comes to overseeing our nation's banks and financial services companies.

It's a one-two punch there that has a lot of big banking concerns very, very worried -- after this.

(COMMERCIAL BREAK)

CAVUTO: All right, well, there's a whole new gang taking over in the House.

That, you know. But it has the most dramatic impact when you look at the formation of who's running the new House Financial Services Committee. You got Maxine Waters sending a strong message to banks.

And all of this coming as we have Congresswoman Alexandria Ocasio-Cortez also joining that powerful panel, both saying that when it comes to banks that they're not doing as much as they can. And, normally, when they say something like that and talk about treating all races equally, it starts sending up signals that this could be a bumpy ride for the banking industry, even though it might just start and stay in the House.

Charlie Gasparino here with all of that.

What do you make of it?

CHARLIE GASPARINO, CORRESPONDENT: Well, I mean, they can hold hearings. They can't really do anything. They're not going to roll back Dodd-Frank -- or they're not going to roll back the rollback of Dodd- Frank.

Trump is...

(CROSSTALK)

CAVUTO: Right.

This is all about setting the table for 2020, though.

GASPARINO: Yes. Yes. And it's -- they're going to do some show hearings.

They do say stuff. And, listen, I don't dislike Maxine Waters. I have been on TV with her in the past. And she basically represents her district in California, in L.A., very well.

Ocasio-Cortez, full disclosure, I went to the same high school as her. I think that the attacks on her are way...

CAVUTO: But not in the same year?

GASPARINO: No.

CAVUTO: Because you're much, much older.

GASPARINO: I'm much, much younger.

(CROSSTALK)

CAVUTO: Extremely older. You're like Noah.

(LAUGHTER)

GASPARINO: Yes, compared to her -- 30 years' difference, by the way.

CAVUTO: Right. Right.

GASPARINO: I think they go overboard in their attacks on her, like on her elite upbringing, which is not true, and all that.

Where they have, both of them, is on their lack of sophistication economics. I mean, literally, Maxine Waters came out today and said -- and this blew me away -- that if we increase diversity on Wall Street -- I'm paraphrasing a little bit, but it's almost right here -- we -- it's better for the economy.

I mean, it just -- like, it makes no sense. I mean, Ocasio...

CAVUTO: But wasn't the thrust of those remarks that lending is still disproportionately skewed to the white?

GASPARINO: It's disproportionately skewed to people with better credit ratings.

If they happen to be white, I hate to break it to you, that's just the way it goes.

CAVUTO: But that's not going to fly with this new bunch.

GASPARINO: With her. Oh, with her. But, I mean, it's -- she has no -- unless the Democrats control the White House, which is where some of these standards -- and the Fed, which will -- which will enforce some of these things on the banks.

The Fed is the lead regulator.

CAVUTO: And they're both keen, by the way, on rolling back some of the regulations that the president and Republicans disbanded.

(CROSSTALK)

GASPARINO: Yes.

CAVUTO: And they're also looking separately in the House Budget Committee to raise the corporate rate from 21 to 28 percent.

GASPARINO: Yes, they're espousing leftist ideology, economic ideology.

CAVUTO: See, I think they know, to your point, Charlie, that this won't go anywhere, especially with a Republican Senate and a Republican president.

GASPARINO: Right.

CAVUTO: But, but they can sort of sharpen their focus for 2020, that these will be their populist...

GASPARINO: Yes, maybe.

But I will tell you, when you start talking -- I mean, listen, one of the problems that the Democratic Party had is, it lost the white working-class voter.

CAVUTO: Right.

GASPARINO: If you're going to have Maxine Waters and Ocasio-Cortez say stuff, be completely racial on issues, particularly like stuff that has nothing to do with race, like diversity of banks, I think they're going to -- it's going to be a problem in those -- in the states that Trump won.

And, by the way, just -- the Republicans should just let them talk, because what comes out of their mouth is mostly nonsense. They -- 70 percent rate is good for -- I mean, by the way, if you're really rich, if you want to -- if you want to escape that, you just move to Bermuda.

So that's why they generally start that...

CAVUTO: Isn't that where you commute from?

GASPARINO: I love it.

By the way, I got -- I'm working on my tan.

CAVUTO: Very good.

Thank you very much, Charlie Gasparino, here.

Well, they're talking increasingly like there might not be a State of the Union address. Now, can you imagine you're newly elected, let's say, to the United States Senate, and that's really sort of like the big event, and it doesn't happen.

I wonder what Florida Republican Senator Rick Scott thinks. He's next.

(COMMERCIAL BREAK)

CAVUTO: All right, here's how confident Nancy Pelosi is that they can't score a deal in the next two weeks. She already has urged the president to postpone, if not just send in writing, his State of the Union address.

I want to talk to the newly minted the senator from the beautiful state of Florida, the former governor as well, Rick Scott.

Senator, welcome to you. Congratulations.

SEN. RICK SCOTT, R-FLA.: Thank you.

Boy, this place doesn't work, Neil. It's completely dysfunctional.

Here's what they say. You talk to people up here, everybody says, we need border security. We want the government to open up, but we can't vote on it. We can't get any of this stuff done.

You would never do this in your business life, and we didn't do it -- we didn't do it when I was a governor. And, on top of that, they get paid. I'm a -- I'm a co-sponsor a bill that says, you don't pass a budget, you don't get paid up here.

Why would you get paid if you're not doing your job? So it's pretty frustrating right now.

CAVUTO: Would that apply to Republicans as well, then?

Because many of them are getting a lot of the heat for this as well.

SCOTT: Yes. And Republicans -- I mean, think about it.

We have hundreds of thousand people not getting paid, but Congress gets paid. Republican or Democrat, you shouldn't get paid. So, I co-sponsored a bill that says just that.

We have -- I co-sponsored a bill to get our -- get our Coast Guard to get paid. It's the only military individuals that are not getting paid. I have got 5,000 them in Florida. They're defending our border. They're watching all the drug interdiction in Latin America. And they're not getting paid.

How does that make any sense?

CAVUTO: All right, now, when Nancy Pelosi urges the president to maybe postpone, if not just send in writing, his State of the Union address, what do you think?

SCOTT: I think -- I think that's wrong.

It's -- we ought to have the State of the Union address. The president ought to explain what's happening with our economy, the tax cuts that were passed that had a big impact on our economy, one of the few economies in the world doing this well.

And why wouldn't he get up there and explain all the good things that are happening, at same time be frustrated? He can't fund the border by himself. Congress has to fund the border. He should get up there and say, I'm disappointed that Congress is not funding this. It's national security. We know our border needs to be secure. You guys all agree with me. Let's get it done.

CAVUTO: All right. Let me ask. We're going to be monitoring Chuck Schumer very closely, sir, what he's saying about what Democrats might or might not offer to resolve this.

It doesn't look like it will be resolved soon. Our credit rating hangs in the balance here. If we lose that AAA rating, who do you blame that on?

SCOTT: I blame it on Congress.

I mean, the president's going to use all his power to get this done, all right? Congress is the only one that can fund the border. Congress is the only one that can open up the government. They need to go do their job. It's -- it makes no sense, what's going on.

And think about it. They're talking about doing a recess. If -- in my business life, I would say, if we have a problem, we're all staying here until we get it resolved. We shouldn't go home. We should all stay here to get this done.

CAVUTO: All right. Well, that doesn't seem to be in the offing for the time being, Senator.

So, I'm curious. All of this occurs at the same time the president is meeting with some of your colleagues to discuss what happened in Syria, the killing of these soldiers, and a reminder to some that maybe ISIS and terrorist elements are more active and stronger than we think.

Do you -- do you think the president made a mistake saying that ISIS was defeated?

SCOTT: Well, I think that we need to listen to our generals.

We have got the best military in the world. We need to listen to them. We -- he needs to take advice from them. He is the commander in chief, so he gets to make the final decision.

CAVUTO: Well, we're told, to a man, they told him that it wasn't a wise move to pull out the way he did and the timeline that he did.

You say?

SCOTT: I would listen to the generals.

I think -- I mean, it's very concerning to me the way that they're talking about pulling out. So I would -- I would stop. What are my generals -- what are my generals telling me, get as much advice as he can, and then make the best decision.

But, right now, it sure seems like we ought to be really rethinking what we're doing in Syria.

CAVUTO: Do you think ISIS or morphing into something else, Senator, is now -- is now regrouping?

SCOTT: Neil, what -- what we know, there's a lot of people there that want to harm us.

I would rather have our -- our fights over there than in the United States. And so we have got to figure out how to do everything we can to keep the terrorism out of this country.

CAVUTO: Let me switch gears, if I can go back to your state of Florida.

You're aware that your successor has suspended Sheriff Israel, of course, who was there for the high school shooting last year, saying that he essentially botched it.

We have talked to a number of parents of those who were killed who agree with that move. The sheriff is planning to aggressively challenge that. Your thoughts?

SCOTT: Well, your heart goes out to those families.

I have gotten to become very close with many of those individuals. I can't imagine losing a child or a grandchild. So your heart goes out to them.

So, the -- we passed a very aggressive school safety bill right after that. And I know that's being implemented around the state. I hope it never happens again.

CAVUTO: All right, but it does happen, unfortunately, in other areas. And you are right to be right on top of it and try to institute new laws in your state, the most rapid turnaround we have seen in any school shooting post a school shooting.

But a part of the governor's thinking, the new governor's thinking was that we're too politically correct about dealing with wayward students or those who should be watched more closely, but aren't.

SCOTT: Yes.

Yes, we -- there was a PROMISE program that it sure appears -- it sure appears that they have allowed that student to not have the accountability that they should have had.

CAVUTO: Right.

SCOTT: That's why when what I did is, right after it happened, I sat down with mental health counselors, with sheriffs, police chiefs, other law enforcement, and also with educators to come up with a bill that would address all these issues.

And so, I mean, I just can't imagine what these parents are going through. My heart still goes out to them. I just -- I just hope it never happens again.

CAVUTO: Senator, a number of drug companies -- and this is back to your days when you ran Columbia Health -- that have been raising drug prices.

The president was critical of that when one or two of them tried it. Now better than two dozen companies have tried it. Do you think they're getting a little too greedy?

SCOTT: Well, so, we have to figure out how we drive down the cost of drugs.

If you -- if you look about it, if you care about people getting health care, which, as a provider, when I was in the hospital industry, I wanted people to get health care. I want people to get health care.

Part of the problem with getting health care is, it's too expensive.

CAVUTO: Right.

SCOTT: And so we have got to figure out how to do this less expensively. Drug prices are too high.

So, something I'm going to focus on here is, how do we drive down the cost of drugs?

CAVUTO: All right.

Senator, Governor, thank you very, very much.

SCOTT: Thanks, Neil. Thank you.

CAVUTO: Congratulations, as you land in Washington in the middle of a shutdown.

All right, we will be monitoring that closely, also gauging what the markets are worried about come tomorrow.

Stay with us. You are watching "Your World."

(COMMERCIAL BREAK)

CAVUTO: All right, I just want to update you on what Chuck Schumer had to tell reporters when he stepped out of his office and sort of told us where this whole shutdown thing stands.

There's no one blinking, and there's no one conceding anything. He agrees with Nancy Pelosi that the president should put off his State of the Union message or file it in writing, that now is not the time to consider it.

So they both seem to be factoring in that there won't be any settlement of this before the planned address in less than two weeks.

So, the president has some options. He's weighing them, we're told, at the White House. He could submit it in writing. Remember, there's no mandate, per se. The whole television phenomena is a post-LBJ thing.

Lyndon Johnson -- there were other presidents, like Jefferson, who found the whole idea stupid. So, he wouldn't do it. That was then. Here's the mess now.

"The Five" now.

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