This is a rush transcript from "Special Report," May 13, 2022. This copy may not be in its final form and may be updated.

JOE BIDEN, (D) PRESIDENT OF THE UNITED STATES: There's nothing more urgent we are working on than that right now. We moved as quickly as the problem became apparent to us. And we have to move with caution as well as speed, because we got to make sure what we're getting is, in fact, first rate product.

JEN PSAKI, WHITE HOUSE PRESS SECRETARY: We have not waited to take action. There were steps we have been taking every single day since then, with the FDA in the lead, to help address any potential shortage. What we need to do ensure we are addressing any issues in the supply chain and addressing any issues with speeding up manufacturing.

(END VIDEO CLIP)

MIKE EMANUEL, GUEST HOST: The baby formula shortage is a huge issue right now. At least seven states have out-of-stock rates of about 40 percent or so, there on your screen, Texas, Connecticut, New Jersey, and more, 20 other states have out-of-stock between 30 percent and 40 percent. A huge issue for young families across this country.

With that, let's bring in our panel, Juan Williams is a FOX News analyst, Morgan Ortagus, former State Department spokesperson, and Byron York, chief political correspondent of "The Washington Examiner." Morgan, since you are a mom, let's start off with you. Obviously, a huge concern for young families. What does the government do in response?

MORGAN ORTAGUS, FORMER STATE DEPARTMENT SPOKESPERSON: Yes, listen, I'm a mom of an 18-month-old baby who was on formula, and I can only imagine. I know all too well what's like, how terrifying it is for these mothers around the country.

Again, the Biden administration is caught surprised and flat-footed on issues that they should not be. Abbott lab, the main manufacturer, shut down their main facility a few months ago, and it was over 40 percent of production of infant formula in this country. So you are seeing, I think, a double whammy when it comes to moms in this country from the Biden administration. They are already upset about schools being closed and radical education in our schools. Now you have moms angry because they can't feed their children in the way that they need to.

The FDA should also open up and allow European baby formula to be sold in the United States. There is absolutely no reason why we have the red tape. Let's get the help that these moms need now to feed these babies.

EMANUEL: Juan, Democratic allies are concerned as well, calling on the White House to do more. Your thoughts?

JUAN WILLIAMS, FOX NEWS POLITICAL ANALYST: I think what Morgan said is on target. I'm a granddad, and I can tell you in our family they are feeling it. It's a pinch.

The thing about it is when you look at it, it has to do with the contamination, the Abbott labs crisis. At some point you have to say, wait a second, this is a private sector failure. And why was the private sector so slow to respond? You can ask the government, you can ask our political leadership to get involved, but, ultimately, this is a failure of the private sector.

In terms of government, under the new U.S. Mexico-Canadian trade pact, the Canadians cannot sell baby formula in the United States. And, again, that is something that we need to reverse. It was put in place as part of that deal that replaced NAFTA.

EMANUEL: Let's give Byron a shot before we move on to our next topic.

BYRON YORK, CHIEF POLITICAL CORRESPONDENT, "THE WASHINGTON EXAMINER": I think this whole thing just increases what the sense, it supports the sense that the Biden White House really can't manage things. They messed up the border. They messed up the withdrawal from Afghanistan. They seem helpless in the face of inflation. And there is just this sense that the Biden administration cannot get a handle on an issue and cannot manage it. And that's a deadly, deadly impression with midterms on the way.

EMANUEL: All right, midterms are heating up this weekend. Morgan, what's your race to watch?

ORTAGUS: Texas 28, everyone should have their eye on Cassy Garcia. She is young, female, Hispanic. She is the future of the Republican Party. It's going to be a very expensive race.

EMANUEL: Interesting.

ORTAGUS: I think she is going to win that run off and face Henry Cuellar or whoever wins that Democrat primary. But this is the key for Republicans, young Hispanic women running. And more than just one, by the way, she is one of three in Texas and in border states.

EMANUEL: All right, Juan, you're up.

WILLIAMS: Pennsylvania Senate, the Republican race in the primaries, you've got Mehmet Oz, Kathy Barnette, David McCormick, so you have a Trump endorsed candidate, Oz, you have a candidate, McCormick, who has lots of Trump aides, former Trump aides around him, and then you have Barnette who says she is a super-Trumper. And that will be a fabulous race to watch next week.

EMANUEL: We had McCormick on with us last night. Kathy Barnette will be on FOX NEWS SUNDAY on Sunday, and then on SPECIAL REPORT Monday. All right, Byron, what's the race you're watching?

YORK: Mine is the Wisconsin Senate race. Senator Ron Johnson is the only Republican incumbent senator who is on shaky ground this year. Broke a promise to serve only two terms, has angered some Democrats at least with his investigations of Hunter Biden. But President Biden is in the low 40s job approval rating in Wisconsin, and Ron Johnson has just been lucky a lot of the time. In 2010, he came in on a very strong year. It looked like he was in trouble in 2016, then pulled it out. And now 2022 is shaping up as such a strong year. It seems likely he might be able to do it one more time.

EMANUEL: It wasn't clear if he wanted to continue on. He took his time before announcing he was going to run for reelect, but he's in, and we will see if he can pull it off in a purplish state there in Wisconsin.

All right, how about Winners and Losers? Morgan, lead us off.

ORTAGUS: Well, the loser of the week, unfortunately, is my former employer at the State Department. They are putting on the Summit of the Americas. This is really important for Latin America. We haven't hosted in the U.S. since 1994. Invitations haven't gone out. Some countries are boycotting. Even our allies are saying they may not show up. This is pretty much a disaster for the western hemisphere and a fail from the State Department.

But winner of the week is Paris Hilton. She came to Washington, D.C. She lobbied at the White House and on congressional hill for victims of child abuse. And so in her own words, that's hot.

EMANUEL: I saw a bunch of politicians who are middle aged, perhaps older, taking photos with Paris Hilton. They seemed to enjoy the moment as well.

All right, your winners and losers of the week, Juan. Take it away.

WILLIAMS: I think the winner is Kathy Barnette in that Pennsylvania Senate race I mentioned earlier. She in a FOX News poll is basically tied with two better known candidates. So we will see where this goes. She is definitely the underdog in that race.

And then as a winner -- I'm sorry, as a loser, I would have to say Vladimir Putin. Why? Because Finland and other Norwegian countries are now looking to join NATO fast track, and that will put the western alliance directly on Russia's border. I don't think he had that happen in his worst dreams.

EMANUEL: So a lot of focus on the Pennsylvania Senate race this weekend. The FOX poll suggests it's a toss-up at this point. We will see where it goes.

Byron, winner and loser?

YORK: My winner is Jim Pillen. In the Republican race for governor of Nebraska, he was running behind the Donald Trump endorsed candidate Charles Herbster but pulled it out and won in their primary. So he's the winner.

The loser is the American 401(k). I don't actually think I need to explain this very much. Even after a good day today, we've had six consecutive weeks of losses. S&P down more than 16 percent this year. It's just looking terrible.

EMANUEL: Don't look at the 401(k). All right, Byron, Morgan, and Juan, thanks so much. Have an awesome weekend.

WILLIAMS: Take care, Mike.

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