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tv   CNN News Central  CNN  January 28, 2025 11:00am-12:00pm PST

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2020 election. this time it's dave warrington, a longtime aide to trump. he's been his campaign attorney for years and someone who has certainly served very closely with him. initially it was someone else, but but then he was replaced during the transition. that's obviously going to be a key role, because if this does go to court, what that aide or what that advice looks like is going to be something that the administration will be defending against. now, i'll note they feel confident that when it comes to firing the inspector general, they don't have to notify congress within 30 days. we've certainly heard from lawmakers on capitol hill who feel differently, and that that is something that's required. but the real question is going to be with those career prosecutors and how they choose to to respond to this, because there have kind of been a thinking that maybe they would just put them away in a different part of the justice department, push them into really something that they didn't want, and kind of force them to leave that way. no, this was an abrupt firing that happened yesterday. and so that is a real question. whether it's firing those
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pentagon, as david sanger from the new york times was, was referencing. it really touches every single agency. so it is a real question of what that looks like over the coming days and whether or not there are legal challenges, which we do know we expect to come from states potentially as soon as today. >> kaitlan collins please stand by. we want to stay with our team at the white house and go to jeff zeleny, who is live for us on the north lawn. jeff, these moves from trump, broadly speaking, speak to a vision of the executive and its power that you could argue is unprecedented in american history of course, there's no question about it. >> and as caitlin was talking there, just heard questions about the inspectors general and everything else. it is just one example after another. how in this a second trump administration, the president is flexing his presidential muscle
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and powers day by day, executive order by executive order. and clearly many of these are likely to be challenged in court. and that is the point. we are starting to get, you know, a view as every day of this new administration unfolds. today, of course, is a conversation on spending. yesterday it was about the military, but sort of a through line to all of these is his view of presidential power. and it is a very robust one, perhaps one we have never seen before, at least in the modern day history of this government. and the whole question over funding, this is going to come to a head with congress. so even though the legislative branch is controlled by republicans, albeit very narrowly, in the house, congress takes very seriously. its a role of the power of the purse. well, we will see how long the pause on these programs lasts. but at the center of all of this is something that we are going to learn a lot more about as a country, and that's the impoundment control act of 1974. it
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sounds arcane sounds in the weeds, but it is basically this. that's when a congress said that it would declare how the money and the laws that it is signing is spent. well, this president views that somewhat differently. he's been advised by lawyers and allies that the president should have a larger control of this. so we shall see. this is likely to be litigated. but overall, the big picture here just, uh, i guess 7 or 8 days into this administration, he's flexing his presidential powers in ways that we have not seen, at least again in the modern day presidency. >> yes. the impoundment control act. i'm also learning of some cases before the supreme court. we're going to have to educate ourselves on some case law as well, i think. jeff zeleny, thank you so much. let's bring in brian stelter. and brian, this was certainly a briefing that was long awaited because i don't think anything can really compare to what we saw in the first white house press briefing
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of the first trump term, the portrayal that followed of sean spicer even on saturday night live, for instance. it was just something that kind of has become infamous. how did you think that this press briefing went this theater review is obvious. >> taken as theater first. move over, sean hannity. president trump has a new number one publicist, right? the tv president has just minted a new tv star. levitt is the youngest press secretary ever, but she's incredibly practiced at this. she was incredibly smooth. if you're a democrat right now, you're asking yourself, where is our karoline leavitt? who's going to push back against trump as effectively as she promotes him? did you notice also that she dangled some news at the beginning? this is a trump tactic. she literally dangled a shiny object in front of the press corps, saying, the jerome panic in the northeast was actually just researchers and hobbyists who were flying faa approved drones. now, i'll just say, as a new jersey resident with my hobbyist drone right here, a lot of people are still very skeptical about that
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explanation. but listen, that was a distraction. there are so many more important points we need to watch for those distractions in the coming months. levitt exaggerated. just like her boss, right? she claimed he has an overwhelming mandate. the results of the election don't show that. she also insulted former president joe biden in a very personal way. i think some of her predecessors in the job probably cringed when she did that, but she views the job differently. she is there for an audience of one, and in that way it was incredibly effective. but maybe the most important question was shouted at the end did you catch it? one of the reporters tried to ask, is the medicare portal down in all 50 states? this is an emergency right now, affecting millions of americans who are worried about their finances, about their welfare. and she didn't have answers. she essentially said, we'll get back to you. trust us. we're going to figure it out. >> and we may have some more news on what's going on with medicaid. let's go back to kaitlan collins, who i believe is still in the briefing room. caitlin, what are you hearing? >> yeah. so just for the timeline, this memo went out
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last night ordering the funding freeze on all of this that we have been focusing on and talking about how it's affecting all of these agencies. one big question and one thing that the white house had made clear was medicare and social security would not be affected. a question that came up twice inside this briefing room was whether or not medicaid would be affected. the white house, clearly sensing the confusion here, sent out a memo to capitol hill, a pretty brief one expressing what is included in here, what is not. it's not comprehensive, but i do want to read part of it, because there's a question about what exactly happens with benefits to americans, like snap, like student loans, all of these things that directly affect people on a daily basis. and it says that no program that provides direct benefits to americans is explicitly excluded from the pause and exempted from this review process. but they say in addition to social security and medicare, already explicitly excluded in this guidance, mandatory programs like medicaid and snap will continue without pause. now,
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that's something to follow up on, because we've seen some complaints about medicaid portals not working in the last two hours or so. that's something to follow up on. but this is a pledge from the white house in this memo to capitol hill saying that medicaid payments will not be paused as a result of this federal funding freeze. >> and, caitlin, i do want to mention ron wyden just tweeted that his staff has confirmed reports that medicaid portals are down in all 50 states following last night's federal funding freeze. at the very least here, there's so much confusion over this. what do you make of this? >> well, and that's why there are so many questions because saying, you know, that individuals who who get this, this money won't be affected. there's a lot of groups that get this money that then disperse it to individuals. and so that's been a big question here when it comes to these programs or things like homeless shelters, disaster response, veterans organizations as well, that money isn't given to an individual vet, for example, but it is given to an organization that helps these people. and so
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that's why there have been so many questions about this, as well as with the portals and how that shakes out. i think that sounds like it came from a lot of confusion overnight, from people saying they weren't sure exactly what this guidance meant. it's a very comprehensive document that lists all of the agencies that are affected, and that's why we're seeing so many questions about this, because it's not something that that can go on for a few days without affecting people. it clearly has. those ramifications felt immediately. but the white house is saying that medicaid will not be affected. what's going on with the portals is altogether another question. >> not the first time that a sweeping executive order by donald trump has created confusion and caused chaos for a lot of americans. we do have a legal mind with us to discuss some of the apparent impending legal fights that this white house is going to face. jennifer rogers joins us now. jennifer, what do you make of this view from the white house that trump essentially acting on his own against congress's
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allocation of funds is perfectly legal and within his purview as the executive? >> yeah, well, this is a really dangerous thing, boris. i mean, it's not just the allocation. anytime congress allocates funds to something, that's a law. it has the appropriations laws have the effect in force of other laws. and this isn't the only instance, as caitlin was talking about. i'm glad she asked that question at the press conference. he fired, uh, inspectors general last friday night in violation of law, and he has fired career doj employees in violation of law. so president trump is deciding on his own without getting, as far as i can see, any sort of opinion on that. i mean, he says the white house counsel has cleared this, but we haven't seen any actual, um, paper on that, that he is going to violate a law that has not been challenged in court. now, he can only do that, presumably if the law is unconstitutional. but he's not testing that in the courts, and the courts are the ones ultimately to decide
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what's constitutional and what's unconstitutional. so, you know, i think this is a problem, of course, because if he wants to violate these laws without actually testing them through the courts first, where is he going to stop? i mean, where will he stop in violating laws that that he decides don't apply to him? it's also a problem, of course, in terms of morale in these agencies. i mean, what's happening to doj is really terrible for everyone there, not just the people who were fired. how much is he going to reach in and control what used to be an agency that was independent from the white house? all of these unknowns, i think, are really damaging the institution, just even beyond the people who are actually let go. >> jennifer, thank you so much. we do appreciate it. we appreciate it to all of our folks who were with us there after that briefing to break it down for us. you are watching cnn news central. we'll be right back with more. >> i lay on my back frozen, thinking the darkest thoughts,
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illegal aliens. under the previous administration. additionally, president trump signed an executive order to end catch and release and finished construction of his effective border wall by using every lever of his federal power. president trump has sent a loud and clear message to the entire world. america will no longer tolerate illegal immigration. >> in the meantime, some new images obtained by cnn show two colombian planes carrying u.s. deportees arriving in the capital of bogota earlier today. the video, just released by the u.s. marine corps, shows troops reinforcing the southern border barrier near san diego. and joining us now to discuss is sheriff javier salazar of bexar county, texas. sheriff, thank you so much for being with us. and we should note, you are here in d.c., there is a sheriffs conference going on. and later today. tom homan the border czar. the immigration czar is
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going to be speaking to you. can you tell us, as you have been talking to administration officials, or at least one, are you being asked to work with ice on raids? what is the ask? >> well, i'll tell you what. we have not been asked to participate in any raids back home. i can tell you, my folks are just going on about our regular everyday business. um, with that being said, you know, i'm certainly not pretending to speak for the white house or the trump administration. i'm not here to pass a message. what i can tell you is all i can, all i can share is what i have on good authority from a high ranking law enforcement official who had a one on one meeting with him. and what i'm hoping is to bring down the fear level in my community and communities across the country by sharing what was what was shared with me. >> go ahead. >> tell us what that is. >> well, so he clarified somewhat about the schools and the churches. right. the fear was that they were going to be going door to door, church to school, church to school, checking students, checking teachers. that's not necessarily what i'm told is their rules of engagement. i think prior to there had been orders that
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schools and churches were off limits. and unfortunately, i believe that that, you know, drug runners and smugglers, coyotes knew that. and so they would step into school property or church property, as it were, and they knew that they could not be apprehended. my understanding is that has been removed. and so unless they have reason to head into a school or a church in fresh pursuit of somebody. now granted, if they're in the process of looking for somebody with a with a warrant, for example, that is undocumented and they have information that this guy drops off his kids at a school at 8:00 in the morning. well, certainly they're going to lie in wait at the school. but my understanding is they're not just going to be going willy nilly school to school, church to church to see which kids or teachers or whoever may be undocumented. >> i understand that you've previously said that bexar county is on some kind of list for raids. could you expand on that? who's putting together this list? what does it mean for your community? >> well, i don't know who's putting together the list. we've seen a lot of of talk about, you know, different major cities being targeted. and, you know, we have heard through unofficial
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channels that san antonio is being considered for these raids. it doesn't surprise me one bit. um, but with that being said, i have that i have not seen that from any sort of official sources. um, and so, you know, i know that that social media sometimes really, really helps, and sometimes it tends to get in the way with, you know, uh, you know, promoting rumors and things like that, that, again, do nothing to help us bring down the anxiety and fear level in our communities. >> um, you are planning to cooperate, though, so i wonder what you are expecting to be asked. we currently have been watching oklahoma, for instance, where they are looking at something very different than what you're describing in terms of expectations. they're looking at providing information about. certainly parents and questions locally about students and their immigration status to the trump administration. um, tell us what you would be willing to cooperate on and what you wouldn't be. >> well, i'll tell you. i'll tell you. we have never not honored an immigration detainer in the jail, for example,
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because that's one of the things that in texas, sheriffs are responsible for the jail. we have never failed to honor an immigration detainer. but with that being said, that sounds awful extreme. and certainly that's not something that i intend to do as proactively. in fact, i'm more the opposite. i would prefer that our immigrants in our in our community, whether documented or undocumented, feel comfortable coming to me, especially if they're a victim of a crime or a witness to a crime. come to me and report that we're not going to look to deport you. we're not going to mistreat you. we're going to treat you like a victim or a or a witness. and in fact, you've got protections under the law as a witness or a victim. and we're going to exercise those in order to bring those that are, that are responsible for doing you harm to justice while protecting your rights. >> are you concerned that in the process of doing that, you may be targeted by the administration for, in their view, sheltering or aiding undocumented migrants? they have vowed to go after folks who do that. >> oh, you know, if i were afraid of being targeted, i wouldn't have spoken at the dnc. and there's a lot of other
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things that i would do. so, i mean, i don't i don't think that's a that's an issue necessarily, uh, you know, if they want to come after me for, for helping a citizen or a person in need in my community, have at it. >> i am also curious about racial profiling because previously when when we talked about sb four going through the texas legislature, this bill that would essentially give texas the the right to process undocumented migrants the way that the federal government is supposed to do. you had expressed that it could create problems for your community. i imagine this is going to cause some issues. >> well, and that's why we're clarifying with our with our troops, with my deputies, where your authorities actually are and what sb four says. sb four gives may give you authority to do certain things, but it doesn't command that you do anything. and so if you choose not to ask those questions and don't ask them, you know, with that being said, we do want to remind our deputies that that racial profiling is still illegal and in fact, under under federal laws. as local authorities, we
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do have somewhat limited, uh, authorities. and so we want to make sure that they don't run afoul of those in a in an effort to go enforce immigration laws. >> but what about federal officials? because immigration status isn't something that you wear on your head. correct? right. so if they're in the process of trying to adjudicate some of these cases, you could see people that are us that that are here in the u.s. legally, that maybe speak broken english or that don't speak english all that well. they might wind up getting processed. >> absolutely. i mean, that's that's my greatest fear. i mean, my my paternal grandma didn't speak a word of english her entire life, and she was a u.s. citizen. and so my fear is that somebody like that will get wrapped up in things. i don't want my deputies to be those responsible for putting handcuffs on somebody that is a u.s. citizen, or has a legal right to be here, when in fact, somebody is alleging that they're not. >> sheriff, thank you so much for being with us. we do appreciate you joining us in studio especially. >> thanks so much. >> thank you. and coming up, some brand new reporting about
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trump's pick to lead the fbi. what is driving some of the distrust between kash patel and the intelligence community? we'll have that and much more coming up on cnn news central have i got news for you is back for a new season, whether you like it or not. >> are those the only two choices? >> yes. you like it or you don't? >> i'm on the fence. >> this is going to be a long season. >> have i got news for you returns february 15th on cnn. >> experience advanced technology in the buick envision. equipped with the largest in class, ultra wide 30 inch diagonal display and google built in compatibility, innovation is at your fingertips. buick exceptional by design. >> your gut is like a garden. >> growing both good bacteria and bad. that balance is key to a healthy gut environment. benefiber plant based prebiotic fiber gently nourishes the good bacteria, working with your body to help your gut, and you flourish effortlessly every day. grow what feels good with benefiber? >> that's $225 for the night. >> not bad.
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the way i approach work post fatherhood, has really trying to understand the generation that we're building devices for. here in the comcast family, we're building an integrated in-home wifi solution for millions of families like my own. in the average household, there are dozens of connected devices. connectivity is a big part of my boys' lives. it brings people together in meaningful ways. stops odor before it starts. that's my secret to better odor control everywhere. news night with abby phillip tonight. >> at 10:00 eastern on cnn. >> this just in. caroline kennedy releasing a new video warning senators that her
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cousin, robert f. kennedy jr. is a, quote, predator. this comes ahead of rfk jr.. s confirmation hearings to be president trump's department of health and human services secretary. cnn's arlette saenz is with us now. tell us about what's in this video. arlette. well, brianna, caroline kennedy. >> issued a very. >> stark warning. >> about the nomination of. >> her cousin, robert f. kennedy, to be the secretary of health and human services, urging lawmakers. >> up on capitol hill. >> not to vote. >> in favor of. >> his confirmation. >> this is a very rare moment that we're seeing from kennedy, and another sign of some of the fissures within the kennedy family over robert f. kennedy's nomination. now, she posted this lengthy video where she read aloud the letter that was sent to senators on capitol hill, detailing some of her concerns, talking about troubling behavior in the past, also accusing him of being hypocritical on vaccines, and also saying that kennedy is addicted to attention and power. here's some of that
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video that she released today. >> i've known bobby my whole life. we grew up together. it's no surprise that he keeps birds of prey as pets, because bobby himself is a predator. he's always been charismatic, able to attract others through the strength of his personality, his willingness to take risks and break the rules. i watched his younger brothers and cousins follow him down the path of drug addiction. his basement, his garage, his dorm room were always the center of the action where drugs were available, and he enjoyed showing off how he put baby chickens and mice in a blender to feed to his hawks. it was often a perverse scene of despair and violence. today, while he may encourage a younger generation to attend aa meetings, bobby is addicted to attention and power. bobby preys on the desperation of parents of sick children,
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vaccinating his own kids while building a following, hypocritically discouraging other parents from vaccinating theirs. it's incomprehensible to me that someone who is willing to exploit their own painful family tragedies for publicity would be put in charge of america's life and death situations. >> now, cnn has reached out to a spokesperson for kennedy to see if there will be any reaction to this video. the video is likely not just a potentially an effort to try to get republicans to vote no, but also make sure that democrats stand united in opposition to kennedy when he eventually comes up for a vote in the senate. now this video is coming on the eve of the first confirmation hearing for kennedy. he will appear before the senate finance committee tomorrow. and then a second hearing on thursday before the committee that deals with health issues. and kennedy is one of president trump's most vulnerable nominees at this time, at a moment when every vote will count up here on
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capitol hill, republicans and democrats alike. if trump is hoping to get him across the finish line. >> that is some detail that was included in there. arlette saenz live for us on capitol hill. thank you boris. >> we're learning new details about president trump's pick to lead the fbi. kash patel and the battles that he's waged over the years with u.s. intelligence agencies. on thursday, patel will be on capitol hill for what could be a contentious public confirmation hearing, perhaps more than any other nominee in recent memory. patel's battles with the fbi, the very agency that he's poised to run, have defined his rise to political prominence. he frequently rails against a litany of alleged abuses by intelligence agencies and the fbi, from the russia investigation to the fbi seizure of classified documents from trump's mar-a-lago residence. cnn's zachary cohen is here with the details. and, zach, you have some new reporting on what's driving some of the distrust between kash patel and the intelligence community. tell us more. yeah, boris, it's clear that the distrust between kash patel and the intelligence. community really cuts both ways.
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and a lot of this centers around patel's efforts during the first trump administration to declassify and release documents. >> related to. >> the fbi's investigation into connections between russia and donald trump's 2016 campaign or 2016 campaign. an investigation that patel believes was driven by the so-called deep state. now, our reporting shows that this came to a head in 2020. at the end of trump's first term, when the cia referred patel to of this referral have not been previously reported, but we are learning from our sources that the cia asked doj to investigate whether patel shared classified information about the russia probe with people inside the government who lack the proper level of security clearance to see it. now, it's important to note that patel has never been charged criminally by either trump or biden's doj, and there's no indication that national security prosecutors at doj took steps to escalate the referral beyond an initial review. patel also denies that he ever mishandled classified information. but also, we're learning that intelligence officials placed what is known as a red flag on patel's security clearance file to
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document their broader concerns about his handling of classified information during trump's first term. we have a statement from patel's spokesperson saying, quote, the leaking of years old bogus referrals is evidence our government is in desperate need of reform. it's ironic that the same people who try to stir up the phony narrative that kash would abuse power are the very ones abusing power to attempt to damage kash. and zach, as you point out, there's a history here, and it's more than just about donald trump. so what is it that's driving this? there's been a few that's been percolating for years now. patel has accused the fbi and the intelligence community of carrying out a, quote, deep state plot not only against trump, but his allies, including himself. patel points to the fact that he had his communications seized by the government as part of a separate investigation that was hunting for leaks. he was also he was among dozens of congressional staff targeted in that, a dragnet that came under criticism from the justice department inspector general. he even sued trump era officials, including former fbi director chris wray, the man he would replace if he's confirmed. so for in this lawsuit was over
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obtaining his communications without his knowledge. so look, patel has also suggested that the fbi should curtail its intelligence responsibilities and instead focus on law enforcement, which would have basically amount to rolling back reforms made after the 9/11 attacks. it was intended to facilitate better cooperation between the bureau and other u.s. intelligence agencies. this will all come up for sure on thursday, when patel has his confirmation hearing. one of several confirmation hearings that we will be watching closely. zach cohen, thanks so much for the reporting. appreciate it. still to come on cnn news central, the white house solving the mystery that's been on the minds of so many in new jersey and across the country for weeks. what the new press secretary just said about all those drone sightings and who was behind them. the truth is out there. >> february 20th to the 23rd. join us at the food network south beach wine and food festival. >> this is a world class food and wine festival. i don't think there's anything like this. >> proceeds benefit fiu.
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cough relief with robitussin and find your voice. >> closed captioning is brought to you by sokolove law. >> mesothelioma victims call. >> now $30 million in trust. money has been set aside. you may be entitled to a portion of that money. call one 800 859 2400. that's one 800 859 2400. >> just moments ago at the white house, at the briefing, the trump administration revealing that those mysterious drones spotted over new jersey and the tri-state area back in december, which caused a whole lot of panic, were, quote, not the enemy. >> in fact, the white house now says many of them were actually cleared for takeoff. listen to this. right off the top of the briefing. >> after research and study, the drones that were flying over new jersey in large numbers were authorized to be flown by the faa for research and various other reasons. >> cnn aviation correspondent pete muntean joins us now. and i got to say, pete, you were dead
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on about this. you said that a lot of this was just confusion. do you think trump might have been listening? you know, this is really interesting because this. >> is kind of. >> the. most significant explanation we have had about this drone hysteria. and remember, i went to new jersey to report on this at its peak. but really begs the question about. >> whether or not the white house today is trying to make news on this when they're taking a lot of heat for this federal funding freeze. remember that drone hysteria really took off back in november, hit its stride in december, and that's when the biden administration explained that these purported drone sightings were not nefarious. and beyond that, top officials insisted that many reported sightings were cases of mistaken identity. in fact, many of the videos that were posted on social media were of normal commercial airline flights on their way into places like the newark airport. trump was president elect back then, and he really fanned the flames of speculation that was taking off on some of the big podcasts. and i want you to listen now to what he said at mar-a-lago back on december 16th.
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>> something strange is going on. for some reason. they don't want to tell the people. >> so this new explanation really flies in the face of what trump said five weeks ago. and press secretary karoline leavitt said she was speaking on behalf of the president when she said that these drones are not the enemy. remember one of the big conspiracy theories that was taking hold at the time was that drones were being launched off an iranian ship off the new jersey coast. levitt said that the drones that sparked interest initially were flying legally, and then hobbyists got in on the action and started to make people more nervous. even still, though, the federal aviation administration responded in a big way. it put up dozens of drone bans over critical infrastructure sites in new jersey and new york like nuclear power plants. but to prove that the government is no longer worried about drones, and that much of this was hysteria, all those temporary bans have now been lifted. there is one left, and it may not surprise you. the
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last drone ban still in the big long list is over. trump's golf course in bedminster, new jersey. >> aha. of course. >> so you're saying we already knew this thing that we learned today. >> we essentially knew this. >> and we learned it again. >> from the outset. you know, i said this may be something that was a little bit both and that this could have been people sort of sparking interest with legitimate drone sightings. but then people sort of got confused and started to see airplanes and helicopters that were doing their own normal thing. i'm pretty sure that video right there is actually of a flight going into newark. um, so so that really confused people and, and people started to look up. i went to seaside heights, new jersey, the home of the jersey shore television show, where they, the ocean county sheriff's department has a really, really advanced drone sighting department. and officers who were responding to calls all the time. they were not only getting calls for airplanes and helicopters and
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training flights and military helicopters in the area, but also things where people would see things like jupiter, which can be very, very bright on a clear night. and so it's really interesting that a lot of these drone sightings kind of went away when things were cloudy and people essentially stopped seeing these. so what they thought were drones. so this is a sort of a re-exploration of something we already knew. >> yes. then it's only snooki sightings and the situation sightings. >> i didn't buy my snooki shirt at the snooki store. you should have. >> sorry. and get me one next time. pete muntean, thank you very much. >> appreciate it. the gym tan, laundry. correspondent. >> thanks so much. gtl. peter muntean. all right, so some of america's biggest companies are rolling back their dei initiatives, but a popular cosmetics brand is standing firm. plus, it was the eye shot heard round the world how china's deep sex revelation could upend american dominance in artificial intelligence. >> this part changed my life.
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that's something i want to believe. [skateboard sounds] for your free legal consultation. again, that's one 800 712 3800. >> laura coates. >> live tonight. >> at 11 eastern. >> on cnn. >> the financial markets appear to be leveling off today after chinese ai startup deepseek sent shockwaves through wall street and the tech world on monday. chip maker nvidia is up slightly today after losing nearly $600 billion in market value following the surprise announcement that deepseek ai model can compete with us ai systems at just a fraction of the cost. it's a stunning development that even got the attention of president trump. >> i've been reading about china and some of the companies in china, one in particular, coming up with a faster method of ai and much less expensive method. and that's good because you don't
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have to spend as much money. i view that as a positive. the release of deepseek ai from a chinese company should be a wake up call for our industries that we need to be laser focused on competing to win because we have the greatest scientists in the world we're joined now by sarah fisher, a cnn media analyst and a media correspondent for axios. >> all right, sarah, what's the wake up call here for the u.s. when it comes to dominance of this critical emerging technology? >> brianna. >> our big tech giants. >> have spent so many billions of dollars trying to gain a foothold in the ai industry. and the fact that our biggest economic and national security rival in china has been able to put forward a rival ai model for a tiny fraction of the cost that our tech giants have put together is absolutely stunning. and just to give you a sense of that scale, this new deepseek ai model was built with around $6
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million of budget. that is nothing when you consider the fact that openai just raised $6 billion of venture capital for its latest round. it's a huge wake up call for the way that we have been thinking about our dominance in ai. >> trump called this a positive development. if it's proven that this new ai technology can be created at a cheaper cost, would that savings benefit companies that, you know want to use it? does that something that would help their bottom line? >> two things. one, yes, it could reduce the costs of everyone in the cottage industry around these big, large language models that are trying to build functions for companies to use. but then the other thing is this is an open source model, brianna. so that means that any engineer or developer can build on top of it. that's supposed to spur innovation. when you think about the big u.s. tech giants that are investing in ai, most of them are not open sourced. they are closed models, which means that you don't get access to the different tools and models that are within them
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unless you pay. the only open source model in the u.s. that's big right now is the one that's owned by meta, and i think that's why you saw meta's stock take a beating last week. but big picture here, brianna, when it comes to our economy, so much of the s&p 500 has been backed by the frothiness of the ai market. to see a competitor come in and do it at a fraction of the cost, that's what took out all the value from the market last week. and it's what i would expect to be a continued question when investors are looking to see whether or not they should invest the same way in ai in the united states. >> so tiktok, which is so dominant in the social media sphere, is, of course, facing this ban over ties to china. could that happen with deepseek in the ai sphere? and what would that mean for americans? >> well, interestingly, right now we have export controls over the number one thing that deepseek needs, which is nvidia chips. so even if we weren't to ban it, we could definitely sort of, you know, hold them back by
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reducing their access to our chips. but even if we were to ban it, brianna, i think one thing you're noticing with the tiktok ban is that if consumers like it, they're going to fight for it. we saw that deepseek was the number one most downloaded app in the u.s. for the past two days. so let's say we were to try to ban it. i would expect a a considerable amount of uproar from consumers who like this technology, who say it's just as effective as other apps that they're using. and remember, also, it's free. that's a difference when it comes to some of these other apps like chatgpt, that are starting to charge consumers subscriptions. >> how do you see this? is this like the new arms race? >> it is an arms race. i mean, we think about our national security in terms of our ability to sort of, you know, level up against china with technology. we thought for so long, brianna, that we had the advantage. when you think about it from a cybersecurity perspective, a few months ago, the big salt typhoon hack caught us completely off guard. now, with ai, deepseek is
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catching us completely off guard. so there's an arms race for technology, but not just from a business and economics perspective, but really to ensure that our nations are dominant against probably our biggest adversary. and i think that if deepseek is just going to be one of many advances that china comes at us, that is going to not just rock consumers, but also our markets and businesses. you know, we saw this with tiktok. we saw this with shein and temu in retail. now we're seeing this with ai. i mean, it's not going to end there. >> all right. sarah fisher, thank you so much for that. we appreciate it. boris. >> big brands like amazon, target, walmart and mcdonald's have recently changed or ended their diversity, equity and inclusion programs altogether known as dei. of course, elf beauty, a popular cosmetics brand with gen z and millennials, is a rare company embracing and vocally touting its diversity efforts. cnn consumer reporter nathaniel myerson joins us now. nathaniel, you actually spoke with elf ceo about this. what did they share
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with you? >> yeah. >> boris. >> you know. >> elf is standing behind dei right now. because it thinks that it's good for business. you take a look at elf's customers and its employee base. this is a very diverse company. you know, about 75% of elf's employees are women, 40% are people of color. and the elf ceo, tarang amin, he told me that the dei efforts were helpful to elf for recruiting and hiring and talent retention, and to appeal to its younger and more diverse customer base. >> nathaniel, are they anticipating any potential backlash right. >> boris, there is a ton of pressure right now on companies and across america, around dei, you have president trump trying to crack down on it. you have activists like robby starbuck that have targeted companies really trying to get them to pull back. but amin told me that he thinks that some of this
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backlash is overblown, that there are more people who are committed to diversity and committed to inclusion, and that even some of the companies that are pulling back, like amazon and walmart, that some of these changes are a little bit more performative. they're not as kind of substantive. they're really just making changes to try to get the heat off. and he also noted that there are companies that are standing up for dei right now apple, costco, jpmorgan. you know, just the other day, costco's shareholders, they rejected a shareholder proposal trying to get costco to to move away from dei. and costco said that dei, like elf, was good for its business. >> really fascinating reporting. nathaniel meyersohn. thank you so much. when we come back, the shocking freeze on federal loans and grants could have a massive impact nationwide. we're going to dig into what it means for you in just moments kobe didn't want to be one of the all time greats.
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>> find us in store and online. >> i'm nic robertson on the baltic sea, and this is cnn. >> closed captioning. >> brought to you by. book.com. >> if you or a loved one have mesothelioma, we'll send you a free book to answer questions you may have. call now and we'll come to you. >> 808 two one 4000. this is cnn breaking news. >> we do begin with breaking news. the fallout from the federal aid freeze. a pair of democratic lawmakers, including senator ron wyden of oregon, say that medicaid portals are down in all 50 states. these are payment portals. following the pause, it's a pause the white house said would take effect at 5 p.m. eastern, and it could impact millions of people across

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