This is a rush transcript of "Special Report with Bret Baier" on July 29, 2021. This copy may not be in its final form and may be updated.

BRET BAIER, FOX NEWS ANCHOR: All right, we're back with the panel, Ben Domenech, Mara Liasson, Jason Riley. We forgot to put up his book the last time I talked about it. The book is "Maverick, A Biography of Thomas Sowell," Sowell being one of America's most influential conservative thinkers. Great read. OK, Ben, the synergy of these stories along the border and now what is happening with the Delta variant and COVID-19.

BEN DOMENECH, PUBLISHER, "THE FEDERALIST": Well, I feel like what you are seeing here is really the hypocrisy of this administration when it documents their approach to the border and to the immigration issue.

Obviously, it's not responsible to have people who are testing positive who are coming across the border illegally and whose status is still up in the air being essentially let loose into our communities in order to increase and potentially spread this virus. And, yet, that's exactly what this administration is doing.

They can talk as much as they want to about root causes and things like that. But there is a simple attitude toward the border which is that we ought to be in control of it. We are not under this administration. And I think that's one of the reasons why we see, as I said earlier in the program, a Democratic Party that is really white knuckling it toward the midterms, trying to get through as much of their agenda as possible, because they've basically given up on the idea that they are going to be able to right the ship politically.

They see the level of distrust for this administration on so many different areas. The only area where Joe Biden has really been in the positive has been in dealing with the coronavirus, and that's why I think they are going to lean more and more into this conversation.

BAIER: Mara, the president today on the economy as he sees it in the U.S.

Take a listen.

(BEGIN VIDEO CLIP)

JOE BIDEN, (D) PRESIDENT OF THE UNITED STATES: Our economy is recovering.

More than 3 million Americans are back to work since I was sworn in, a faster job growth than any previous administration, any. We're experiencing the fastest economic growth in nearly four decades, the best in the world as of now.

(END VIDEO CLIP)

BAIER: So, some critics would say if it is that, and it may be that, that it is cooking, the economy is cooking, why would the country need $3.5 trillion of a human infrastructure bill that's the next one in line after all this money is out and about?

MARA LIASSON, NATIONAL POLITICAL CORRESPONDENT, NATIONAL PUBLIC RADIO:

Well, I think the White House would say that $3.5 trillion is not a stimulus. It's long-term investment over many, many years, I think eight or

10 years. And it's to address all of these dire needs, things that we haven't invested in years, things that would make us more competitive with China, things to deal with climate change, et cetera, et cetera. I think that's what you would hear from the White House.

But I do think you talk about synergy. COVID, the economy, and immigration, all these things are coming together, and there is a lot of peril for the Biden administration, because they did get good marks for handling COVID.

The Delta variant threatens that, the immigration is a vulnerability for him, for Biden, and to the extent it gets wrapped up with COVID, it's even worse.

BAIER: It's important to point out, Jason, that the money from the $1.9 trillion COVID stimulus has not all been spent yet, and that different communities and localities have not tapped into all the money that they could potentially tap in with the Federal Reserve. So when you hear Joe Manchin and Kyrsten Sinema talk about concerns all this money and inflation and deficit and debt, it's tough to see how that other human infrastructure bill moves forward.

JASON RILEY, COLUMNIST, "WALL STREET JOURNAL": Yes, you are right. The money hasn't all been spent, which, of course, raises the question of why we need more government spending. And I would also point out that a lot of the legislation being considered right now, or both pieces of legislation being considered right now, include amnesty proposals for illegal immigrants already in the country.

And there's a connection there, I think, between that and what's going on on the border. The administration talks about that northern triangle, Guatemala and Honduras and El Salvador, and so forth. I have looked at the numbers there. Violent crime in those countries has actually been falling in recent years, all three of them. It's higher than it is in the U.S., but the trend line has been in the right direction. I don't think that is what is driving the crisis here.

What is driving the crisis is the administration talking out of both sides of it mouth here, saying don't come, but also people getting the message that if you get here, and if you get in, there is a good chance that you will be able to stay. And I think anyone that's followed immigration policy over the past three decades in this country knows that to get to a solution, you need to include both border security and giving more legal ways for people to come here. But this administration does not seem interested in border security.

BAIER: And maybe COVID security is added to that as well. I will end the panel with this. Today, for the first time in 45 years, the U.S. House of Representatives passed a bill to provide taxpayer funding of elective abortions for Medicaid recipients. The so-called Hyde Amendment was not in the bills out today. Not expected to pass that in the Senate, but it is an historic mark for Congress.

Listen, when we come back, tomorrow's headlines with the panel.

(COMMERCIAL BREAK)

BAIER: Finally tonight, a look at tomorrow's headlines with the panel.

Mara, first to you.

LIASSON: My headline is masks, tests, and vaccine incentives, Biden tries to avoid a, quote, blanket mandate.

BAIER: Jason?

RILEY: Similar. New York City just announced they are going to pay people to get the vaccine. Ohio, West Virginia, Maryland already do that. I think more jurisdictions are going to do the same thing. And I certainly prefer that to mask mandates.

BAIER: Ben?

DOMENECH: Kamala Harris unveils response to root causes of immigration crisis consists entirely of the lyrics to John Lennon's "Imagine."

(LAUGHTER)

BAIER: All right, panel, thank you.

Tomorrow on SPECIAL REPORT, all the reaction to today's announcement from President Biden.

Thanks for inviting us into your home tonight. That's it for this SPECIAL REPORT, fair, balanced, and unafraid. FOX NEWS PRIMETIME hosted by Tammy Bruce starts right now. Hey, Tammy.

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