"If you look at some of the reservations you've approved, you sir, in your great wisdom have approved, I will tell you right now, they don't look like Indians to me," Trump says.
"Now, maybe we say politically correct or not politically correct, they don't look like Indians to me and they don't look like Indians to Indians, and a lot of people are laughing at it.
"You talk about how tough it is, how rough it is to get approved. Well, you go up to Connecticut and you look, now, they don't look like Indians to me."
George Miller, who at the time was a Democratic congressman from California, appears momentarily dumbfounded before responding.
"Thank God that's not the test of whether or not people have rights in this country, whether or nor they pass your look test," he said.
Miller continued to attack Trump's remarks, saying they echo similar sentiments expressed in American history.
"You know where we've heard this discussion before? 'They don't look Jewish to me. They don't look Indian to me. They don't look Italian to me'. That was the test for whether people could go into business or not, whether they could get a bank loan. 'You're too black, you're not black enough'."
"Oh really?" Trump interjects.
Chaos continues to swirl in Washington over Trump's racist tweets on Sunday in which he attacked four Democrats and told them to "go back" to where they "came from".
The comments, targeting Alexandria Ocasio-Cortez of New York, Ayanna Pressley of Massachusetts, Rashida Tlaib of Michigan and Ilhan Omar of Minnesota, have been roundly condemned.
Trump has defended his tweets, saying they aren't racist and he doesn't "have a racist bone in my body".
Ocasio-Cortez, Pressley and Tlaib were each born in the United States, while Omar is an American citizen who arrived in the country as a Somali refugee when she was a child.
The three twitter posts read: "So interesting to see 'Progressive' Democrat Congresswomen, who originally came from countries whose governments are a complete and total catastrophe, the worst, most corrupt and inept anywhere in the world (if they even have a functioning government at all), now loudly and viciously telling the people of the United States, the greatest and most powerful Nation on earth, how our government is to be run.
"Why don't they go back and help fix the totally broken and crime infested places from which they came. Then come back and show us how it is done. These places need your help badly, you can't leave fast enough. I'm sure that Nancy Pelosi would be very happy to quickly work out free travel arrangements!"
The House of Representatives today passed a resolution denouncing the President's "racist comments". The vote was 240 in favour and 187 against, with four Republicans supporting.
Speaking before today's vote, House speaker Nancy Pelosi said those who didn't support the resolution denouncing Trump's comments would be rejecting "our values" and showing a "shameful abdication of our oath of office to protect the American people".