This is a rush transcript from "Your World With Neil Cavuto," February 6, 2009. This copy may not be in its final form and may be updated.

NEIL CAVUTO, HOST: All right. Well, ahead of the vote — the mocking. The president taking heat for the way that he is talking about his rivals, the Republicans.

(BEGIN VIDEO CLIP)

PRESIDENT BARACK OBAMA: The same old delay, the same old distractions, the same talking points, the same cable chatter.

(CHEERING AND APPLAUSE)

OBAMA: You know, I mean, aren't you all tired of that stuff?

(CHEERING AND APPLAUSE)

OBAMA: They did not vote for the false theories of the past, and they didn't vote for phony arguments.

(END VIDEO CLIP)

CAVUTO: Phony arguments?

What do you think of that, Senator Lindsey Graham?

SEN. LINDSEY GRAHAM, R-S.C.: I have a lot of respect for the president, but the public understands what is going on, on Capitol Hill.

He has to convince the public that this bill is in their interests. And I don't believe the president can, because it's not. It's unfocused. It's not timely. It's not targeted. It's a trillion dollars of spending in the name of creating jobs.

• Video: Watch Cavuto's interview

But, in fact, it is an appropriator's dream come true. And my objection is that, if you want to be bipartisan, and you want to solve housing, and you want to solve the banking problem, do not create a spending bill that the public will be turned off to.

I have reached across the aisle. I have been involved in the gang of 10 and the gang of 14 and immigration. So, it is in my nature to try to reach across the aisle and solve hard problems.

This bill, Neil, is fundamentally flawed. The process that led to this bill started in the House with the idea: "We won. We write the bill."

I would like to get more Republicans in a room to find a way to jump- start our economy, spend money that will create jobs, cut taxes that would create jobs, then move on to the housing and banking problems. But this...

(CROSSTALK)

CAVUTO: But what happened, though, Senator, because you were with the...

GRAHAM: I don't know what happened.

CAVUTO: All right.

But, in the beginning, I mean...

GRAHAM: Yes.

CAVUTO: ... only a couple of weeks ago...

GRAHAM: Yes.

(CROSSTALK)

CAVUTO: ... you were part of a team that looked abroad to help the president and deal with — help on Middle East peace.

GRAHAM: Right.

(CROSSTALK)

CAVUTO: So, it looked like it was kumbaya, and everyone was passing along s'mores, and now — now just the opposite. What is going on here?

(CROSSTALK)

GRAHAM: Well, what happened is that we started a process in the House to stimulate the economy. And I believe we need to spend money, not just cut taxes. I believe in infrastructure spending. I believe in helping the states in a reasonable way, helping people who have lost a job with unemployment and the extension of food stamps.

I do not believe in a trillion-dollar bill that has a bunch of junk in it that we're going to pay for, for generations that was appropriation bill, not a stimulus bill. I don't believe in the idea of: We won. We write the bill.

I don't believe...

CAVUTO: But, Senator, Senator, did you...

(CROSSTALK)

GRAHAM: Well, wait a minute.

(CROSSTALK)

CAVUTO: Senator, did you hear our FOX News Alert on the water park? That's gone. The $2 million water park is gone.

GRAHAM: Well, but what is not gone is that this bill allows people who lose their job to sign up for COBRA benefits, health care benefits, and pay 65 percent of the premium, no matter who you are.

In other words, in this bill, if you're a CEO who has been fired with a $20 million parachute bailout package, under this bill, the federal government will pay your health care premium, 65 percent of it.

CAVUTO: Wow. All right.

GRAHAM: Under this bill, the state gets $90 billion to help with their Medicaid problems.

CAVUTO: OK.

GRAHAM: They only need $11 billion for new people. That's just crazy.

CAVUTO: Senator, very interesting. We will be following it closely, because you are the guy to follow.

Senator Lindsey Graham, always a pleasure, sir.

GRAHAM: This is a lot more than — this is a lot more than swimming pools.

CAVUTO: All right. Understood.

GRAHAM: Thank you.

CAVUTO: But that water park is gone. And we got that going.

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