Trump Tours Federal Reserve Renovations With Fed Chair

24:48And with the providing of the credit, everybody's happy because things go up. But they go up as you accumulate a lot of debt. And now we're in a situation where the government has such a large amount of debt. and as a problem facing that debt, paying that debt. And so naturally there's a pressure to lower those interest rates. And we're now in a different political environment in which the separation is being called into question because of the desire to lower those interest rates, to lower debt service, which is a problem as a storehold of wealth as it doesn't provide a high enough return. So that balance is being called into question when you also have the independents being called into question.

25:34So President Trump recently passed, with the help of the Republican Congress, the so-called One Big Beautiful Bill Act, his domestic economic agenda. The Congressional Budget Office projects it could add$3.3 trillion to the federal deficit over the next decade because of the continuation of these tax cuts. And actually, I think the 10-year projection of debt is still something like$20 trillion more in debt, even more. Based on the conversations you've had with leaders in Washington, Republicans and Democrats, what are your thoughts now that that bill is a law in addition to the$9 billion in additional spending cuts against USAID and the Corporation for Public Broadcasting?

26:12The economics of a country are the same as the economics of a individual or the economics of a country, of a company, except the government can print money and take money by taxes. So let's look at that. What we have is we're spending seven trillion dollars a year this year. We'll spend seven trillion dollars. will take in five. So we're spending 40 percent more money than we're taking in. And we've accumulated a debt that's six times the amount of money that we're taking in. As a result of that, interest payments and debt service payments are adding up. And the way it works is like the circulatory system works.

26:55Credit, as it goes through the system, brings nutrients and buying power to different parts of the system. And if that money is used to produce income, it's a healthy system because it pays the debt. But when it accelerates, it crowds out spending. And so you're seeing that debt service interest crowding out spending. And that's the same as that circulatory system essentially having plaque in the circulatory system. Yeah, cholesterol, right. You could see it happening. And as a result of that, there's a supply demand problem. As you mentioned, what happens is that$2 trillion a year is going to grow, and that's going to be nearly$25 trillion of new money that has to be sold.

27:41But in addition, we have to roll over the debt. And so we have that kind of a debt service problem. There are things that can be done, but it's politics that's standing in the way. If right now the budget deficit is about 7 percent of GDP, it can be cut to about 4 percent of GDP, 3 or 4 percent. So there's an ability to do that. But in order to do that, it has to come from a little bit of everything. It has to come from a little bit of taxes, a little bit, about 4 % increase in taxes, essentially, 4 % decrease in spending. And if that's done, then there will be the equivalent of an interest rate cut, and that'll be balanced.

28:25If we don't do that, we are going to have a supply-demand problem. And one can see that, like a doctor looking at that plaque in the system, you can see that. President Trump makes the argument that the tariffs that he's imposing, that the Fed says is the reason that they're not lowering interest rates because of all the instability and unsureness caused by the tariffs, that he says that those will help make up the revenue that the U.S. needs to fix the debt. Well, it's correct that the tariffs, if done correctly, will bring in a significant amount of tax revenue. I would estimate about$300 billion a year.

29:05And over 10 years, that's$3 trillion. And that's significant. And part of that is also paid for by the foreigners who are exporting. There's some merit to that. But we have a problem nonetheless in terms of this supply-demand situation. It's not going to be enough to deal with that situation. And if we don't deal with it soon, then that increase in the amount of debt that will be experienced will end up causing that problem. It's a political problem. I was in Washington speaking to members of Congress on both sides and Senate and the House, and pretty much everybody agrees on the supply, demand and the issue.

29:49But it's a political problem. And what I was told is essentially now politics are such that you have to make a pledge, at least one of two pledges. And that pledge is I pledge not to raise your taxes. Right. And or I pledge not to cut your benefits. And with those pledges, those political pledges, and both sides exerting a lot of pressure to do that, there's not going to be a resolution of that unless there's some bipartisan commission or something that might happen later, but unlikely, I don't think. I agree. There was one called the Bull Simpson Commission that everybody abandoned after it was done.

30:30Ray, it would be great to have you come back, not just when you're talking about a book. I hope you'll come back and talk more about this incredibly important issue. Thank you. Of course. The book, one more time, it's called How Countries Go Broke, The Big Cycle by Ray Dalio. It's available now. Thanks so much for joining. Coming up, the White House response as the creators of South Park strike a billion dollar deal with Paramount and then drop a season premiere that mocks President Trump and the very company that is writing their paycheck, Paramount. But first, an urgent humanitarian crisis unfolding halfway around the world.

31:06Exactly why can more food not get into Gaza? The desperation unfolding as malnutrition sets in across the region. Stay with us.

31:21We're back with our world lead. quote, people in Gaza are neither dead nor alive. They are walking corpses, unquote. That from a United Nations worker today. About the hundreds of thousands of Palestinians unable to get food, the humanitarian toll is now so dire that the leaders of the UK, France and Germany plan to hold an emergency call tomorrow. More now from CNN's Jeremy Diamond. In a warning, you may find images in this report disturbing. There are no bullet holes or shrapnel wounds marking this man's body. His bears the signs of a far more silent killer, starvation. At 41 years old, Mohammed al-Hassanat is one of at least 45 Palestinians who have died of malnutrition in just the last week, according to the Palestinian Health Ministry.

32:09An entirely man-made humanitarian crisis in Gaza now reaching unprecedented levels. The question now is not whether starvation will claim more lives, but who will be its next victim. Most food stocks have run dry. Malnutrition cases are skyrocketing. And there is only so much Gaza's under-resourced hospitals can do. At one of the few soup kitchens still serving meals, the growing desperation of Gaza's population of more than 2 million is clear as day. 28 Western nations, more than 100 humanitarian aid organizations, and top UN officials have all said Israeli policies are to blame for the starvation crisis now unfolding.

32:55That's because Israel imposed a total siege of Gaza between March and May. And since then, Israeli restrictions on the entry and distribution of aid have snowballed into an utterly avoidable disaster. I don't know what you would call it other than mass starvation. And it's man-made. And that's very clear. And this is because of blockade. Israel denies it is using starvation as a weapon, pointing to hundreds of aid trucks inside Gaza awaiting UN pickup. The UN says Israeli authorities have repeatedly failed to authorize safe routes to pick up those stockpiles. But the reality of starvation is impossible to deny, including for Israeli news channels, which rarely broadcast such images.

33:46Fadia Abu Namus has been in line since 6 a.m., hoping to fill a pot of lentil soup to feed the nine members of her family. We've had enough of starvation and oppression, enough of staying in the streets like dogs, where no one looks at us, where we can't find anything for our children to eat or drink. Signs of hunger are everywhere in Gaza. This man collapsed while sifting through the wreckage of the latest Israeli offensive. He says he hasn't eaten anything lately but scraps of bread. Moments later, his body gives out on him again. He's simply too weak to go on. Jeremy Diamond, CNN, Tel Aviv.

34:30Thanks to Jeremy Diamond for that report. We'll be right back. Our pop culture lead now, a shocking moment of subversiveness on corporate television. Right after inking a$1.5 billion deal with Paramount Plus to stream their cartoon South Park, the show's creators debuted a new season and took aim at the very man Paramount has been trying to curry favor with because of its pending lucrative merger. And that man? President Trump. Mr. President, a lot of your supporters are starting to turn against you. Hey, tell them to take a rest. Sir, can you please talk to them? They're really riled up Alright, give me that Hey, relax, guy Yeah, hi, uh, what do you think you're doing?

35:13Our children are being told that they have to sit with Jesus at lunchtime? Listen, buddy, you just need to relax All this protesting makes me look bad Just take a rest Well, no, we're not going to give it a rest All the people here in South Park want some goddamn answers Alright, then I'm going to sue your whole town You got that? Five billion dollars Ha ha ha ha ha Since its 1997 cable debut, South Park has been going after every sacred cow imaginable. Last night's episode took swipes at President Trump and at the network's parent company, Paramount Global. Let's bring in Aswin Supsang, senior political reporter at Rolling Stone.

35:51Swin, good to see you. So the White House gave CNN the same statement they sent to you on this episode. It reads in part, quote, The left's hypocrisy truly has no end for years. They have come after South Park for what they label as offensive content, but suddenly they are praising the show. The White House goes on to say the show hasn't been relevant for over 20 years and is hanging on by a thread. And they add, quote, President Trump has delivered on more promises in just six months than any other president in our country's history. And no fourth rate show can derail President Trump's hot streak, unquote.

36:17Now, the episode aired fairly late last night, 10 o 'clock Eastern. Yet it was all the buzz at the White House this morning, you say.

36:26Yeah. And isn't it great, Jake, that this is the way in which our tax dollars are being put to work? the way that the West Wing and the Trump White House have actually made, even for a number of hours, the morning, it a priority for them to wage something of a small war on a Comedy Central animated sitcom. Look, the Trump White House is doing this and putting their names to these types of communications against South Park because Donald Trump is their boss and President Trump sees it as a priority for not just him, but sectors of the federal government to help him wage his wars against popular culture elements in the United States that he doesn't like and that are critical or hypercritical of him.

37:09He's had these sort of intense pop culture fixations for decades preceding his presidency, but six months into his second administration, they have not abated. It may be... Please. Now keep going. Well, I mean, it may seem a little bit tempting to try to sort of shrug these things off, as we sometimes do, because this is the White House and the president of the United States being catty about some of his critics on television. It's something that Trump has been doing for decades. However, we've been trying to report out these stories at Rolling Stone in the context of this is legitimately, as weird and as silly as it may sometimes sound to say out loud, it's legitimately a part of him and his administration's broader campaign, an increasingly authoritarian, crackdown heavy campaign against his enemies in all kinds of parts of American life.

38:05Yeah. This is a parcel for the same president who will threaten literal criminal investigations against rock star Bruce Springsteen for speaking out against him. All the while, we may think that that or his crusade against Rosie O'Donnell is some big joke. But it's happening in the same context where he ordered via executive order his Department of Justice to open up what looked like completely bogus criminal investigation against enemies of his like Chris Krebs, who committed no crime to say in 2020 was not stolen. So we should we should we should these things. We should note that the what we just showed, that little clip was the tamest thing in that South Park episode having to deal with President Trump.

38:46There was a lot rougher stuff. But the context here of Paramount settling this, you know, very derided, much derided lawsuit against 60 Minutes and then CBS canceling the Colbert show, etc. I mean, that is a broader context. I think it's pretty gutsy that Trey Parker and Matt Stone did this. Yeah, and it's happening when Trump and his government are openly saying they will mess up your business or mess up your billion dollar merger if you don't do what we say or if you tick off the president of the United States too much. And now there's talent at a company that is controlled by Paramount Global or as a deal with Paramount Global that is willing to stick their thumb in the eye of the president and the White House who is saying we could destroy your parent company's lives if we feel like it.

39:42These are not things that we were raised in our high schools in recent decades to believe that a president of the United States, the leader of the free world, is allowed to do. Yeah. Swin Zubzang, good to see you as always, sir. Thanks so much. Coming up next, a super awkward moment last hour as President Trump confronted Federal Reserve Chair Jerome Powell about the price of renovations at the Federal Reserve's headquarters.

40:22of iconic 90s stars along with HGTV mentors for a dope TV redesign showdown. Look at these couches. Transforming two-time warped houses into modern must-see homes. The 90s are back. Totally 90s house. All new Wednesday night at 9 on HGTV.

40:42Welcome to The Lead. I'm Jake Tepper. For this hour, a top Justice Department official met with Jeffrey Epstein, associate, and the woman who groomed minors for him. Ghislaine Maxwell today as pressure mounts on the White House to release more information about the Epstein case. What Maxwell's lawyer is saying about that interview today and what could come next in this investigation. Plus, he has filed 34 lawsuits against the Trump administration in just the last six months. Now, California's Democratic Attorney General Rob Bonta is here to explain why he's filing so many suits and what he thinks about a new executive order the president just announced.

41:17Also, the calls for an independent investigation after videos showed deputies, sheriff's deputies, punching and dragging a man during a traffic stop in Florida. That man, William McNair Jr., and his attorney, Ben Crump, are going to join me live ahead. And he is widely considered the biggest wrestling star of all time. Today, Hulk Hogan died at the age of 71. We're going to take a look at his legacy in and out of the ring.

41:47The lead tonight, Deputy Attorney General Todd Blanche, President Trump's former defense attorney, met with Ghislaine Maxwell down in Tallahassee, Florida earlier today. Let's bring in CNN's Paula Reid. Paula, what do we know about Todd Blanche's meeting with Ghislaine Maxwell? So we know this went nearly a full day down in Tallahassee. Now, Maxwell's lawyer came out and spoke to reporters after the meeting and said that his client answered all the questions. honestly never once invoked any sort of privilege but he wouldn't comment on the substance of exactly what she was asked or what she said and so far it's been radio silence from the Justice Department so we are still left with a lot of questions Jake specifically what if anything is the administration prepared to offer her obviously President Trump could offer her a pardon or commutation but also perhaps more pressingly what else would she have to offer this is someone who has had every incentive for the past several years to share things of value with the government because she's now, of course, serving a 20-year prison sentence.

42:43And even if she did have something to offer them, how do you corroborate this? I mean, this is someone who has had credibility issues in the past. This is a convicted sex trafficker. And really any attempt to even broker a deal with someone like this is going to result in blowback from victims. So we continue to talk to our sources and try to get to the bottom of whether this meeting was anything more than political theater to try to take the temperature down on the larger controversy. There's also this drama unfolding in New Jersey as Alina Haba, whom the president has had appointed to be an interim U.S.

43:18attorney in New Jersey, fights to stay in her role, even though the judge, her time there as an interim has expired. And a judge panel, panel of judges said it was time for her to go. What exactly is going on? Look, I'm smiling here, Jay, because this is one of the craziest things I've ever seen. I mean, you don't need the real housewives of New Jersey when right now you have no real U.S. attorney in the state of New Jersey. Here's how it's all playing out. Right now, there's a stalemate on the Hill. The Senate has not confirmed a single one of President Trump's U.S. attorneys. It's all being held up by Senator Dick Durbin.

43:50So if you're an interim, as Lena Haber was, and your 120-day term expires, you have an option to go before a panel of federal judges and they can extend you. Well, earlier this week, a panel of federal judges declined to extend Habba's appointment and instead appointed one of her deputies as her successor. And this is where it got really wild. Then the attorney general, Pam Bondi, tweeted that she was removing the successor, even though it was unclear if she had the authority to override the courts in that way. And then the successor posted on LinkedIn that she was going to be sworn in anyway tomorrow when this 120 day term was up.

44:25But then today, a short time ago, Alina Habba decided to quit as interim before her 120 days was up. She was hoping that that would mean that that court order never goes into effect. She has now been appointed acting, which is technically different than interim. So as of now, her plan is to serve roughly 200 more days in this office. So this is an effort to work around the courts that refuse to extend her term. But what we'll see playing out are two questions, two problems. One, this political problem on the Hill where they have a stalemate, but also the type of people that President Trump is putting up for these jobs, Ed Martin and Alita Habba.

45:02These are folks that are just not palatable to many federal judges. All right, Paul Reed, thanks so much. Turning to our other politics lead, President Trump touring the renovations at the Federal Reserve earlier today alongside Chairman Jerome Powell. CNN's Caitlin Collins is live at the White House for us. Caitlin, we saw Trump clashing with Powell a bit over what the actual total cost of these renovations is. Tell us more. Yeah, Jake, it was a pretty remarkable scene. And we actually didn't know it was going to be President Trump and the Fed Chair Jay Powell until the president posted that shortly before he headed over.

45:35This is the construction site, keep in mind, where they are renovating the headquarters for the Federal Reserve. That has been at the center of some accusations coming out of the White House, where they have said that the Fed chair has mismanaged that project, that it has been basically way too expensive and has overdone and overgone with the budgets that they had initially allocated for what this Federal Reserve renovation was going to cost. And so the president himself was touring the actual construction site today, said the Fed chair, Jay Powell, was going to be there with them. You saw the two of them in hard hats.

46:04Initially, Jake, before this moment that I'm about to show you, the Fed chair had stepped out of the camera and off to the side of this. The president ushered him to come back and stand there with him on camera. And then this remarkable moment happened where the president was saying that he believes, he was looking at a form, that the Federal Reserve entire project is going to cost$3.1 billion. And the Federal Reserve chair shook his head and said no.

46:34Our notes had about$3.1 as well. $3.1,$3.2. This came from us? Yes. I don't know who does that. You're including the Martin renovation. You just added in a third building is what that is. That's a third building. It's a building that's being built. No, it was built five years ago. We finished Martin five years ago. It's part of the overall work.

47:02So the Fed chair there, Jake, saying that this is a third building. It's already been completed. It's already done. The president was essentially arguing that's a distinction without a difference. We just talked to two of the president's top advisors that were with him on that trip. They were essentially arguing that this is from the numbers that the Federal Reserve had published about what this is going to cost. But really, Jake, the whole point of this is, when it comes to the president's clear unhappiness with the Federal Reserve chair, it's not exactly just about this building. It's about the fact that interest rates have not been lowered time and time again, despite how the president has felt since he returned to office that they should be lowered because of the numbers of how the U.S.

47:37economy is doing. He still holds that position and he made that clear. But Jake, when he walked out of that tour that he did with the Federal Reserve chair, he spoke with reporters, took a few questions, and he seemed to cool on this idea of firing him or using what they say is the costly mismanagement of this project as a pretense to fire him and instead said it's already being built, they're going to build it and have the president kind of take a look at that and let them finish it. And he cited how well the U.S. economy is doing, saying basically the U.S. can afford it. Now, whether or not that means that Jay Powell's job is safer now following that construction site remains to be seen.

48:12But certainly the president came out of there softening his criticism of him some, saying that there was no tension during that meeting and that he believes the Fed chair is going to do the right thing. We know what that means, Jake. Translation, lowering Fed rates. All right, Caitlin Collins, thanks so much. And don't miss Caitlin on her show, The Source with Caitlin Collins. That's tonight and every weeknight, 9 p.m. Eastern, only on CNN. Joining us now, award-winning Miami Herald investigative reporter Julie Kay Brown, who exposed many horrific details of the Epstein sex trafficking story, previously not brought to light.

48:40In fact, it was her 2018 story that brought this all back into the fore. She's also the author of a great 2021 book on the subject that I highly recommend called Perversion of Justice, the Jeffrey Epstein story. Julie, great to have you again on the show. So the Justice Department said that the purpose of Deputy Attorney General Todd Blanche's meeting with Ghislaine Maxwell is to gain information that could perhaps lead to additional prosecutions. Do you think that she might have new information that she would offer to the Justice Department now? Well, that's kind of a two-part question there.

49:13Yes, she knows exactly what Epstein was doing. She has a lot of information. But whether she's going to give it up to the Justice Department is another story. Obviously, she wants some kind of a pardon or some kind of a deal. And, you know, so at what cost will they get this information? And are they really seeking new information or trying to somehow absolve the president here by getting her to say President Trump was not involved? I mean, I sense that they would rather tailor this whole kind of negotiation to exactly what they want her to say and what they don't want her to say. So, you know, this is a very complicated situation.

49:59And I know that the victims are very concerned that this might turn into some other kind of a sweetheart deal, like Jeffrey Epstein's did, whereas they're negotiating something here that they don't have a say in or that might just come out without their input, for example. Yeah, I mean, that would be a travesty because obviously Ghislaine Maxwell, So according to court records, according to your reporting, like she groomed a lot of these minor girls to become victims of Jeffrey Epstein and his wealthy friends. She did not admit to any of that. You would have thought she would have if she wanted to reduce her time in prison.

50:38But she never did when she was prosecuted. And then, of course, there's a question of her credibility. I mean, this is somebody who was charged with perjury, not convicted of it. The charge was dropped because they had bigger charges against her. And she's a liar about what she did. Yeah, I mean, that was what got her into trouble to begin with, because she sued the survivor of Virginia Giuffre for defamation. And Virginia countersued her. And as a result of the litigation in that civil suit, Maxwell had to give a number of depositions. The first deposition, she was completely uncooperative, wouldn't answer the lawyer's question.

51:21They had to get a judge involved to force her to give another deposition. The second deposition, she also was completely uncooperative. She was literally pounding her hands on the table, angry, denying that she even knew Virginia. So even though we have a photo of her in the background with Prince Andrew. Uh, so she, uh, that was part of the perjury charge that was against her was some of the testimony that she gave during those depositions. Yeah. Are you at all concerned? And if you're not comfortable with it, then are the, are the victims with whom you speak concerned, um, that the person conducting this interview, Deputy Attorney General Todd Blanche, is a former defense attorney for President Trump?

52:12I think that the whole picture doesn't feel right. Not only, I think, to the victims, but probably there are people in the public eye that see that this whole, I mean, why do you even have to announce that you're doing this? This isn't the way that these kinds of things normally happen. And she's been in jail for a couple of years now. So the whole way that this is being handled is out of the ordinary anyway. So to send someone who has such a connection to the president, again, the thought is that perhaps what they really want out of her is for her to say, oh, Donald Trump wasn't involved in any of this.

52:55That's what people think that his goal is, is really to get her to somehow exonerate, if that's the right word, because the president hasn't really been found to be that connected in that way to Epstein's crimes. But perhaps he feels that this would help if she says he wasn't involved. Yeah. I mean, why not just send some line prosecutor who works for the Justice Department or the U.S. Attorney's Office who has a good reputation. Julie Brown, thank you so much. Always great to have you on. Thank you. And some breaking news in our money lead. The Federal Communications Commission has just approved the pending merger between Paramount Global and Skydance Media.

53:38This follows months of regulatory uncertainty and lots of bending of the knee by both companies. Let's bring in CNN chief media analyst Brian Stelter and Bill Carter, who authorized, who authored two books about late night TV and has covered the industry for decades. Brian, put this into context for us, why this is a big deal and the implications it may have. right paramount has been tortured for many months as it pursued this merger it needed trump administration approval because it has local tv stations with licenses all across the country normally the independent fcc reviews these matters in a rather boring way but now with president trump back in office the fcc has become much more partisan and chairman brendan carr made clear that he wanted concessions from the future owners what concessions exactly well i just spoke with car on the phone and he's very happy about CBS announcing they'll have an ombudsman in the future and the promise not to have any new DEI policies in effect.

54:34He's also happy about new localism measures. So he voted today to bless this deal. Now it can take effect in the coming weeks, but a deal is done at what price, right? People remember that settlement earlier this month, Paramount settling with President Trump to get rid of a legally dubious lawsuit against 60 Minutes. And as you know, 60 Minutes is one of many properties owned by Paramount that have been in the news lately. South Park in the news, as you just mentioned, for its criticism of Trump, The Daily Show, The Late Show with Stephen Colbert. And of course, the cancellation of The Late Show with Stephen Colbert is a part of this conversation, even though CBS says it was canceled purely for financial reasons.

55:09Some of Colbert's fans are now left to wonder if the cancellation was a secret concession of sorts. Again, CBS has disputed that, saying the financial bottom was falling out of late night. But the question continues to swirl because, as you said, Paramount making a number of concessions in public to get this deal approved tonight. Yeah, I mean, look, late night does have financial problems, Bill Carter, not just at CBS, but the timing of it. And if CBS, if Skydance, if Paramount were going to make this decision, announcing it right now, literally days before this merger was approved, looks fishy.

55:47Trump, of course, celebrated the cancellation of Colbert's show. You said that even if CBS says Trump had nothing to do with it, Trump thinks he did. Tell us more. Well, you know, Trump in the fall literally called for CBS to terminate Stephen Colbert's contract. He did make that public. And he said, you know, the guy's unfunny or whatever, but he's a critic. He doesn't want him on the air. And then now we have him celebrating the fact that he's off the air. And he said something like, you know, if I had something to do with it, it's good or something when he talked about the other late night guys he'd like to get rid of.

56:22You know, it looks bad. And I don't think CBS cares. I don't think Paramount cares. CBS cares, I think maybe. But certainly the people at CBS care. But Paramount had to make this deal. It was going to be a huge disaster for them if Trump stood in the way. They'd have a huge penalty payment. So the timing makes it suspicious. And they probably don't care that it's suspicious now because the deal is done. Yep. A lot of rich people going to get richer. Brian Stelter, Bill Carter, thanks so much. California has filed nearly three dozen lawsuits against the second Trump administration. I'm going to talk to the state's Democratic Attorney Journal about those lawsuits next.

57:03In our Law and Justice League, the state of California is continuing to take on President Trump, with the state filing its 34th, 3-4, lawsuit against the Trump administration in just six months. This time, California is suing the White House for its abrupt decision to stop allowing access to critical safety net programs such as Head Start, domestic violence shelter and soup kitchens based on immigration status. With me now to discuss this lawsuit is the California Attorney General, Democrat Rob Bonta. Thanks for joining us, Attorney General Bonta. So in your lawsuit, you allege this move from the administration is reversing three decades of federal practice and that it could also hurt not just immigrants, but many U.S.

57:41legal residents and citizens. What do you make of the argument that taxpayer dollars are for U.S. citizens and not for people who are in this country illegally? That is the argument, but that's not what the law is here. Congress has decided that for certain safety net services, emergency services, they will provide them to everyone because it makes us all healthier. makes us all safer, whether it be someone going to a shelter facing domestic violence or homelessness or someone who's hungry going to a food bank or a soup kitchen or someone in mental health crisis who needs support or someone in Head Start.

58:21The block grants have been provided for three decades without any requirement for proof of citizenship, and the president can't change that. Congress may if they go through the right process and pass a new law, but the president can't under the spending clause and under the Administrative Procedures Act, make this change abruptly in this way. He's changing conditions in midstream. He's turning his back to reliance interests. He hasn't gone through notice and comment. It's not a reasoned, rational approach. It's coercive. So there's a whole lot of reasons we set forth in our complaint while this conduct is unlawful.

58:51The argument you make could be carried out in a lawful way through Congress, but it has not here. It's been done by the executive branch, by the president. He desperately wants Congress's power, but he doesn't have it. We have a separation of powers. He has to honor that. And he's broken the law here yet again. 34th time in six months, more than once a week. He is a repeat offender when it comes to breaking the law. He has been lawless in his approach, trampling over the Constitution, violating rights and freedoms and breaking the law left and right. And we are going to court repeatedly to hold him accountable and generally prevailing.

59:26I wanted to get your thoughts on the executive order President Trump signed today that aims to make it easier for states and for cities to move homeless people off the streets and into rehabilitation centers. Homelessness is obviously a huge issue in California. There are more than 100 ,000 homeless people in your state. What's your reaction to the executive order? there was a major supreme court case a few months ago that sort of changed the legal regime for how cities and local jurisdictions can relate to our homeless populations the grants pass case and i've always believed there needs to be an important balance where we continue to maintain our humanity and compassion but also make sure that people aren't on the streets threatening public safety and we remove the encampments but we do don't just push the problem away and move the problem.

1:00:17We solve the problem by bringing folks indoors where they have wraparound services, mental health services, addiction services, if that's what they need, a roof over their head, of course, maybe other services to help them get on their feet and be successful. But we should never surrender our compassion and our humanity as we try to address real problems as homelessness has been in California. So So any executive order that turns its back on humanity and compassion will be something that will, I don't think, strike the right balance. California, as you know well, has an independent commission that draws the congressional district seats.

1:00:55Your governor, Gavin Newsom, might try to get rid of it in order to get more Democratic seats. He says this is in a response to how Texas is trying to redraw its congressional map to make more House Republican seats. Would you support Democratic gerrymandering in this tit-for-tat way? I would support a lawful approach to blunting and neutralizing the raw and inappropriate exercise of gerrymandering power in Texas to try to tip the balance in the next set of elections. I think California can and should lawfully respond to any effort that Texas engages in. Their gaming of the maps in Texas, we should neutralize any gains that they try to seek if we can do it lawfully.

1:01:45And I believe we can. I think Governor Newsom is fighting for the future of our state and our nation. I support him in doing so in lawful ways. There is a lawful path that he is exploring. And frankly, I have engaged. My team has engaged with his on this issue. And so should Texas decide to take this draconian step, we will meet them every step of the way lawfully to blunt the advantage they try to seek wrongfully. So specifically, if they add five Republican seats, you're going to add five Democratic seats. I mean, that kind of tit for tat. Yeah, I think we should. And we need to fight. We need to be ruthless and lawful and principled in our approach.

1:02:26but we cannot let them make these blunt power grabs without a response. We will respond and any effort that they take will be met in kind and it will be neutralized lawfully by California. Attorney General of California, Rob Bonta, thank you, sir. Appreciate your time. Thanks for having me. Good to see you again, Jake. A viral video shows deputies, sheriff's deputies, punching a man during a traffic stop in Florida. We're going to break down the sheriff's office's explanation for what happened and we're going to talk to the driver and his attorney next. What is your reason, sir? What is your reason?

1:03:02Step out now. Don't go! Don't go! Don't go! Stop fighting!

1:03:14Internationally, lawyers for a black college student are calling for an independent investigation after a police officer punched the 22-year-old in the face during a traffic stop. Cell phone video from inside William McNeil Jr.'s car shows part of the incident that took place in Jacksonville, Florida in February. McNeil claims he wanted an explanation as to why he was pulled over and why sheriff's deputies wanted him to get out of the car. The sheriff's office released body cam footage of the incident and the sheriff said this about the incident earlier this week.

1:03:47McNeil refused to provide stopping officers with his driver's license and registration. 14 seconds later, he locked his car door and refused to exit the vehicle, despite being told many times that he was under arrest. Moreover, McNeil was warned seven times that he needed to open the door and exit because he was under arrest or resisting an officer without violence or police would be forced to break his car window. Now, when asked for comment today, the sheriff's office told the lead, as this is pending litigation, we would not be able to comment further. Joining me now is William McNeil Jr. and his attorney, Ben Crump.

1:04:23William, thank you for joining us. This incident happened in February. Tell us why you decided to release this video now. Tell us how your life has changed since this happened.

1:04:38I basically just got tired of not being normal. I'm dealing with this situation on my own. So I decided to leave the video and also because other men and women who's dealt with police brutality, I needed to get the word out. Ben, I want you to, Ben Crump, I want you to listen to something the sheriff said earlier this week. Yes, there absolutely was force used by the arresting officers and yes, that force is ugly. But as I've said many times before, the reality is that all force, all violence is ugly. And just because force is ugly does not mean it's unlawful or contrary to policy. Now, the Sheriff's Department says that the state attorney's office investigated the officers, the sheriff deputies, and determined none of them violated any criminal laws.

1:05:30We reached out to the state attorney's office for comment. They said they're going to have a statement in the coming days. You're calling for an independent investigation. Tell us why. Well, respectfully, Jake Tapper, this is... Oh, we lost... Oh, there you are. Say that again. We lost you for a second, Ben. Respectfully, Jake Tapper, this is a classic case of driving while black. The sheriff cannot justify this. He can't condone this. He can't... He needs to condemn this. I mean, he should say directly to the American public that this does not represent our training, our policies, our values.

1:06:14And he should immediately fire this officer who used excessive force in brutalizing this young man for simply asking, why are you stopping me, Jake? I articulate that it is a 21st century Rosa Parks moment where black people in America just get fed up and tired of their rights constantly being trampled on and being disrespected. And there's no justifying this. Believe your eyes. Believe your ears. This was police brutality for driving while black. William, in the sheriff's deputy's incident report, he wrote, quote, The suspect continued to refuse to comply, at which time I broke the driver's window and opened the driver's door.

1:07:03I, along with other officers on the scene, removed the suspect from the vehicle. The suspect was reaching for the floorboard of the vehicle where a large knife was sitting, unquote. What's your response to that? I never reached for the knife because, one, the knife was under the seat. And I also feel for my life being held at gunpoint and not only about people being told to take me or abusing their power. Ben Crump, do you plan to file a lawsuit against the Jacksonville Sheriff's Office? My co-counselor, Harry Daniels, and I are going to explore every possible legal remedy to get some measure of justice for Will McNeil Jr., but more importantly, to try to set a precedent that, America, this is not right.

1:07:58Are we going to be a democracy where we respect the Constitution in due process, or are we going to become a police state where the police have no accountability and they can do what they want to certain people. Driving while black is real, Jake. Some people can't fathom it, but some of us have to deal with it every single day in America. William, what was going through your head when this traffic stop was happening? Why did you lock the door. I locked the door because I failed for my life and I had a better chance. I had a better chance at living if the officer was to decide to shoot me that day as he did put his hand on the host of his gun before he reached out for the door.

1:08:50That's the reason why I closed the door. William McNeil Jr., Ben Crump, thanks to both of you for your time. Really appreciate it. Thank you, Jake. Thank you. What changes could be coming to national parks after President Trump's executive order? That's next.

1:09:16In our national lead, is acknowledging historical facts such as slavery the same as disparaging Americans? An executive order signed in March could instruct national parks across the United States to remove signs that mention matters, such as slavery or the treatment of Native Americans, or even climate change. A group of historians and rangers are fighting back against what they say is an attempt to whitewash and erase history. Joining us now to discuss Alan Spears. He's the senior director for cultural resources at the National Parks Conservation Association. Thank you so much for joining us.

1:09:54Really appreciate it. My pleasure. So what are some examples of facts that the Trump administration is definitely trying to get rid of or even contemplating getting rid of? Oh, well, we can add to that growing list anything that has to do with slavery and the Civil War, civil rights, labor rights, women's rights, all those things. And we're seeing the National Park Service park superintendents have to create a list of items that might be problematic or refer to the country in a negative light and then ship those back to the Interior Department for review. So I'm from Philadelphia, and I saw a piece in the Philadelphia Inquirer that said that an unassailable fact that George Washington had nine slaves brought from Virginia to Philadelphia might be removed from Independence Hall?

1:10:39That's right, because I think what's happening right now is the idea is to narrow the focus of American history so tightly that we lose sight of a lot of the things that helped to make this country. We have a shared national narrative here. We've got a lot of things in there, times where we did great things, where we excelled as a nation. But there are also times when, as President Lincoln said, we failed to live up to the better angels of our nature. That's our story, too. And what we're seeing right now are efforts to kind of whitewash, sanitize and censor history as it's told in our national parks.

1:11:08Do you and your colleagues have any repercussions other than asking them not to remove this or coming on the show and respectfully saying that all of history is worth discussing? Well, we hopefully have a great deal of support from the public. The QR codes that went into national parks about a month ago are asking people to sort of write in and tattle on National Park Service sites if they see anything that's negative. What we've seen is 10 to 1, 20 to 1, 30 to 1 response rate where people are telling us how much they love national parks and how much they want the truth in our history, that they don't want to see things censored.

1:11:47So we've got a good uproar coming from the grassroots level in the public, and we hope to capitalize on that, drive public support. We need Congress to step in and sort of help to stop and then reverse this issue right now. But we're in the fight for our lives. This is about as serious as it gets. So here's the devil advocates question for you. What do you say to an American tourist who says, you know what, this is the greatest country on earth, and I'm sick of hearing how we're the bad guys. And when I go to, this is not how I feel. And when I go to, you know, the Independence Hall, I don't want to be remembered of the bad things.

1:12:22I want to be remembered, I want to be reminded of the good things. What would you say to that tourist? I would say to that tourist this, that our history is our shared national narrative. That's our shared experience. And the way that history works in the national parks is it helps to bring people together. And great countries do not avoid their history. We learn from it. We confront it when necessary. That gives us an opportunity to heal and to come together. And that's important now more than ever in terms of where we are in the history of this country. So we see this as something that is additive, not something that pulls people apart.

1:12:56And I think the American people can handle the truth. has anything been taken down yet or is it just this could happen this likely will happen but I'm just wondering are there any examples of this was done well certainly what we've seen related to the Stonewall Inn in lower Manhattan and other park service sites that are referencing the LGBTQ experience is removal of the letter T removal of reference to transgender we have seen images and quotes from Harriet Tubman removed from an underground railroad site so the trend that we're seeing is taking us in a direction that we think is very dangerous, very aggressive, and quite frankly, un-American.

1:13:32What was the Tubman quote that was removed? I don't know about this. The Tubman quote, she, you know, she was a freedom fighter, a spy for the Union-led troops during the American Civil War. And so there are quotes from her that talk about the hardness of slavery and the fact that African-Americans had to overcome by fight, by resistance, by force, by any means necessary the ability to be enslaved people. They wanted freedom that much. And that's a little bit too risque, I think, for some people who are trying to abide by the president's directive and Secretarial Order 3431 from Secretary Burgum at the Interior Department.

1:14:08Alan Spears, thanks so much. Really appreciate you coming here. It's great to be here. Keep us posted on what happens, okay? We'll do that. Thank you. We care a lot about history on the show. Thank you. Thank you. Our Small Business Series takes us to Minnesota next for a closer a look at how Trump's tariffs are impacting the wedding industry. Should customers expect to see prices keep rising?

1:14:34It is time for our Business Leaders series, where we hear from small business owners coast to coast about the impact of Trump's tariffs on their businesses. Let's go to Rochester, Minnesota, where Finery Bridal Chic is a bridal boutique that offers top quality service for brides with mid-range budgets. Owner Claire Landgraf joins us now. Claire, where do you source your gowns from and how are tariffs affecting your business? Hi, Jake. Thanks so much for having me on. I appreciate you giving a platform for my industry to speak about everything that's going on here. 90 % of bridal gowns are sourced from China.

1:15:12And the ones that aren't that small 10%, those even get materials from China as well. And so all of my gowns are sourced from China at this point. And the tariffs have heavily impacted the ability to get these gowns in timely manners and the ability to keep prices down. So some businesses, we've been talking to dozens, some are eating the cost of the tariffs, Some are raising prices. You've taken a slightly different approach in how you shape your contracts with clients. Tell us about that. Yes. So I didn't feel right about raising prices across the board, seeing as how wedding gowns are by and large special order items that are ordered several months in advance.

1:15:58So a bride comes in and places an order, and it might take six to eight months for her gown to arrive once it has been ordered. Since everything is up in the air right now with regard to Trump's tariff plan, we just don't know what's going to happen down the line when bride's gowns do arrive. So what I've decided to do is that I'm line iteming the tariff costs that I am passing along to the bride. I am eating some of that cost, but some of it does have to be passed along since I am a small business. I'm line iteming that in my contract and just telling the brides that when their gowns arrive, that we'll assess the situation.

1:16:32And if the tariffs have been lessened or removed at that point, then I'll refund that back to them because I just don't feel right about taking money that will be charged to me when their gowns hit U.S. soil if that tariff is not in place at that point. How have the brides taken this interesting way of dealing with the tariffs? And have you seen the tariffs affect the way that brides purchase their wedding gowns? so by and large most brides have been very understanding and knowing that this isn't something that i'm choosing to do this is something that's being imposed upon our industry as a whole and everyone has been very understanding of the fact that this is just the way that things are right now in our country i have seen brides taking a little bit a little bit longer to make decisions their budgets may have been impacted by a couple hundred if not more than a couple hundred dollars when it comes to these tariff charges being added on to the gown price.

1:17:30And so I think they're just taking a little bit more time to be mindful about their decision, make sure they're really sure about the gown that they are choosing and the amount of money that they're spending because these are their hard-earned dollars. What message do you think President Trump and lawmakers in Washington are not hearing from small business owners about the impact of the tariffs? so jake i'd like to start by saying that no one believes in this country more than the american entrepreneur or small business owner we open our businesses and open our doors and bring our ideas to america because we believe in this country and we believe in this country's economics and it's really difficult to make all of this work and make a small business work when the policies just don't support that.

1:18:21And so I think that the misnomer out there is that the tariff is paid by the foreign country or the exporter when, in fact, these tariffs are being paid by the importers. They're being paid by small businesses who are importing these goods to then pass along to people who have purchased them in the American public. And I would really just love for lawmakers to help us help ourselves at this point. It's a really fun and exciting job to be a small business owner, but not having any insight as to how long this is going to last or how the impact is going to hit us long term really prevents us from being able to forecast as well.

1:19:04All right. The boutique, again, for anybody in the Rochester, Minnesota area, it's called Finery Bridal Chic, and the owner is Claire Landgraf. Claire, thanks so much for joining us. Really appreciate it. Thank you for having me. Coming up next, we're going to take a look at the life and legacy of wrestling legend Hulk Hogan, dead today, age of 71.

1:19:34We're seeing what this guy is really made of, what he is, the greatest professional athlete in the world today. Look at this. He's standing. Oh. I can't believe it. And our pop culture lead tonight, wrestling legend Hulk Hogan died tonight from a suspected cardiac arrest. He was, for years, the face of pro wrestling. Known for his blonde hair and his bulging biceps and his bandanas. His large of the life personality in and out of the ring. Not to mention controversies. Made him a household name and a mainstream star. landing commercials, starring in films. After his wrestling days were over, he stepped into the political ring.

1:20:14He stole the spotlight at the Republican National Convention in Milwaukee when he ripped his shirt off and revealed that underneath he was wearing a different shirt, sporting the name Trump Vance. And I said, let Trump a mania. Run wild, brother. Let Trump a mania. In our money lead, Uber is launching a new preference feature in the U.S. for women drivers and women riders to request a ride with another woman. The in-app feature has already been piloted in dozens of countries and will be released in L.A., San Francisco, and Detroit before expanding across the country. Erin Burnett out front starts right now.

1:20:51I will see you tomorrow.

1:20:59Go inside the sports moments that brought us together and made history. From the underdogs to the rivalries and the miracles. It sends chills down your spine. It's what sport was all about. The new CNN original series, Decades in Sports, now streaming on the CNN app.