AMNA NAWAZ: As Democrats celebrate their historic gains, Republicans are beginning to take stock of major upsets and what comes next for their party.

Here with us now is former Arizona Senator Jeff Flake, one of the most outspoken Republican critics of President Donald Trump during his first term and the author of the 2017 book "Conscience of a Conservative."

Senator Flake, welcome back to the "News Hour."

Thanks for joining us.

FMR.

SEN.

JEFF FLAKE (R-AZ): Thanks for having me on.

AMNA NAWAZ: I want to begin with that piece of news today that President Trump has elevated Stephen Miller to be his new chief of staff.

This is the man who's the architect of the president's hard-line immigration agenda, so many other policies.

What does that decision, just days after huge Republican losses in the midterms, say to you?

FMR.

SEN.

JEFF FLAKE: Well, it suggests that the president is doubling down.

I had hoped that, on that issue to immigration, that that's one area where the president might reach an agreement on certain issues revolving around immigration.

I know, when I was in the Senate and the president was in his first term, he seemed willing to do that, but he was always pulled back by people like Stephen Miller.

And so I'm a little discouraged to see that, because, on some issues, he might be inclined to work with the Democrats, but not so much now.

AMNA NAWAZ: Does that tell you anything about what we should expect to see these next two years?

FMR.

SEN.

JEFF FLAKE: Yes, I -- unfortunately, I think it does.

I think the president would not have elevated Stephen Miller if he expected to reach some deals with Democrats on certain issues.

I hope I'm wrong on that, but that's kind of been the history.

AMNA NAWAZ: We know that there are still a few races left to be called from this election, but the picture's very clear.

We're talking about generational losses for the Republicans.

Extinction level is how Florida Governor Ron DeSantis put it.

And I'm sure you have seen President Trump, Vice President Vance have basically said this was all about the Iran war.

Do you agree with that?

FMR.

SEN.

JEFF FLAKE: No.

Certainly, that played a big role, but on the economy and affordability, obviously, was the biggest issue for voters.

The original sin for this administration economically were tariffs.

Tariffs raised prices for everyone.

And that was long before the war started.

So, no, it wasn't just the war.

And then it wasn't just policy as well.

It was just style, Republicans referring to Democrats or anybody they didn't agree with as socialists or communists or pedophiles or jihadists, that just hope -- gratefully ran its course, and people are tired of it.

AMNA NAWAZ: And it was reported late today that Arizona Democrats gained a trifecta to control the state house, Senate, and governor's office for the first time in 60 years.

What does that tell you about what's going on in your state?

FMR.

SEN.

JEFF FLAKE: Yes, it's been huge.

One anecdote to let you know how it is for a clerk of the superior court in Maricopa County -- Maricopa County is the fourth largest county in the country with about nearly four million residents -- a Democrat, a 19-year-old, won that seat from a former state legislator Republican who wasn't scandal-ridden.

It was just a Republican.

And a 19-year-old Democrat won that seat by about 100,000 votes.

That's kind of how it went in Arizona, and I think was replicated elsewhere in the country.

AMNA NAWAZ: So, back in 2019, you wrote this in a tweet.

You said: "One day in the not-too-distant future, Republicans will wake up and say, we did this for this man?"

Has that day come?

What are you hearing from other Republicans?

FMR.

SEN.

JEFF FLAKE: Well, I think so, from some other Republicans, yes, but then you hear some of the talking heads or those who have closely aligned themselves with the president, whether it's think tanks or other advocacy groups, and you see they're sticking with it.

So I hope that Republicans, certainly elected officials, those who are left, will realize that this is not a winning ticket here, and that we're in a cul-de-sac as a party unless we change course.

AMNA NAWAZ: But when you decided not to run for reelection, like so many others who opposed and publicly spoke out against President Trump, you left office, and now the party is almost entirely the party of Donald Trump.

Where does it go from here?

FMR.

SEN.

JEFF FLAKE: Well, nothing focuses the mind like a huge election loss, and we underwent that.

And we have to now get a nominee for president.

And I can tell you, I don't think it's going to be somebody who is in lockstep with the current president.

We have got to chart a different course and in some ways regain and go back to some of the principles that have animated the party for generations, limited government, economic freedom, some modicum of free trade, American leadership abroad, recognizing our allies from our adversaries.

Those are winning issues if we can get somebody who has some distance from the president, because I think to have some saliency with the voters, you're going to have to have distance from the president.

AMNA NAWAZ: I take that to mean you don't think that J.D.

Vance will be the party's nominee.

So who would you like to see?

Would you support someone like Marco Rubio?

FMR.

SEN.

JEFF FLAKE: Yes, Marco has managed to keep some distance.

It kind of depends on how long he stays in the position he's in.

I don't suppose he can be there very long without tying himself directly to the president.

He's managed so far.

So, yes, Marco could.

Marco's very bright, and you know where his heart is.

I have known him for years, and I think he really doesn't agree with some of the things that the president has done.

So, yes, he's one.

There are others.

I'm hopefully -- hopeful some new faces will come up, or maybe some governors, if there are any left, who can actually breathe new life into the party.

AMNA NAWAZ: What about you?

Would you ever consider running?

FMR.

SEN.

JEFF FLAKE: I don't think so.

I did 18 years in elected office, and that's probably enough.

AMNA NAWAZ: Former Arizona Senator Jeff Flake, thank you so much for being with us tonight.

Appreciate your time.

FMR.

SEN.

JEFF FLAKE: Thanks for having me.