1 00:00:00,080 --> 00:00:10,119 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the 2 00:00:10,119 --> 00:00:13,880 Speaker 1: Bloomberg Balance of Power podcast. Catch us live weekdays at 3 00:00:13,920 --> 00:00:17,119 Speaker 1: noon and five pm Eastern on Apple Coarckley and Android 4 00:00:17,160 --> 00:00:20,560 Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever 5 00:00:20,600 --> 00:00:23,720 Speaker 1: you get your podcasts, or watch us live on YouTube. 6 00:00:25,600 --> 00:00:28,200 Speaker 2: Quite the bead today at the White House. Remembering at 7 00:00:28,200 --> 00:00:31,400 Speaker 2: the beginning of this administration, everybody was asking when Doge 8 00:00:31,440 --> 00:00:34,440 Speaker 2: was the conversation every day, how long will this last? 9 00:00:35,800 --> 00:00:39,839 Speaker 2: What would the falling out look like between Trump and Musk? 10 00:00:40,720 --> 00:00:42,640 Speaker 2: We were told it would never happen, and of course 11 00:00:42,640 --> 00:00:44,839 Speaker 2: we're watching it take place today. President Trump in the 12 00:00:44,840 --> 00:00:47,639 Speaker 2: Oval Office with the Chancellor of Germany saying that he's 13 00:00:47,680 --> 00:00:51,400 Speaker 2: surprised and disappointed with Elon Musk, who was tweeting in 14 00:00:51,479 --> 00:00:55,440 Speaker 2: real time back at the President We update this story 15 00:00:55,480 --> 00:00:57,640 Speaker 2: now with the help of Bloomberg's Tyler Kendall. She's been 16 00:00:57,640 --> 00:01:00,000 Speaker 2: watching it all unfold live at the White House. 17 00:01:00,200 --> 00:01:03,680 Speaker 3: Tyler, Yeah, Hey, Joel, it's really starting to get personal 18 00:01:03,720 --> 00:01:07,120 Speaker 3: between President Trump and Elon Musk as they exchanged these barbs. 19 00:01:07,120 --> 00:01:09,559 Speaker 3: As you mentioned, it was pretty evident that Elon Musk 20 00:01:09,640 --> 00:01:12,840 Speaker 3: was watching in real time. And this really all started 21 00:01:12,880 --> 00:01:16,479 Speaker 3: with his criticism of that one big, beautiful bill and 22 00:01:16,520 --> 00:01:19,880 Speaker 3: how it will contribute to deficit spending. And as you're 23 00:01:19,920 --> 00:01:22,600 Speaker 3: about to hear, President Trump said that those claims took 24 00:01:22,680 --> 00:01:23,560 Speaker 3: him by surprise. 25 00:01:24,480 --> 00:01:26,120 Speaker 2: I've always liked Elon and that's all. 26 00:01:26,160 --> 00:01:27,119 Speaker 4: I was very surprised. 27 00:01:27,400 --> 00:01:29,679 Speaker 2: You saw the words he had for me, the words, 28 00:01:29,959 --> 00:01:32,680 Speaker 2: and yes, had said anything about me, that's bad. I'd 29 00:01:32,760 --> 00:01:35,039 Speaker 2: rather have him criticized me than the bill, because the 30 00:01:35,080 --> 00:01:39,200 Speaker 2: bill is incredible. It's the biggest cut in the history 31 00:01:39,280 --> 00:01:39,960 Speaker 2: of our country. 32 00:01:40,040 --> 00:01:45,880 Speaker 4: We've never cut. It's about one point six trillion in cuts. Now. 33 00:01:46,240 --> 00:01:49,320 Speaker 3: The CBO says that the House plan that the Senators 34 00:01:49,360 --> 00:01:51,800 Speaker 3: currently working off of would add two point four trillion 35 00:01:51,960 --> 00:01:55,240 Speaker 3: dollars to the deficit over the next decade. And President 36 00:01:55,240 --> 00:01:58,040 Speaker 3: Trump also went on to say that this wasn't necessarily 37 00:01:58,080 --> 00:02:02,440 Speaker 3: about Musk's ultimate view when to how much is in 38 00:02:02,480 --> 00:02:05,280 Speaker 3: this bill, but also his view on how the bill 39 00:02:05,400 --> 00:02:09,520 Speaker 3: ultimately rolls back those clean energy tax credits. That's something 40 00:02:09,520 --> 00:02:12,399 Speaker 3: that Elon Musk kind of played down and did dispute, 41 00:02:12,440 --> 00:02:15,360 Speaker 3: even though our own reporting does indicate that Elon Musk 42 00:02:15,400 --> 00:02:18,920 Speaker 3: personally appealed to Mike Johnson asking him to save some 43 00:02:18,960 --> 00:02:23,399 Speaker 3: of those clean energy tax credits that would impact electric 44 00:02:23,520 --> 00:02:26,320 Speaker 3: vehicles such as Tesla. Also one other thing to point 45 00:02:26,360 --> 00:02:28,600 Speaker 3: out as this does continue to escalate, which is that 46 00:02:28,600 --> 00:02:32,080 Speaker 3: Elon Musk is saying that President Trump isn't showing gratitude, 47 00:02:32,120 --> 00:02:34,800 Speaker 3: alleging that he wouldn't have won the election without his help. 48 00:02:35,000 --> 00:02:37,560 Speaker 3: At Bloomberg News, we have calculated the numbers and Elon 49 00:02:37,639 --> 00:02:40,480 Speaker 3: Musk contributed more than two hundred and ninety million dollars 50 00:02:40,520 --> 00:02:44,120 Speaker 3: to the twenty twenty four election cycle. That's, of course 51 00:02:44,760 --> 00:02:48,160 Speaker 3: off based off of FEC Commission records. About two hundred 52 00:02:48,200 --> 00:02:51,560 Speaker 3: and fifty five million dollars of that Joe and Kelley 53 00:02:51,680 --> 00:02:54,920 Speaker 3: went towards President Trump's campaign, and likely the number is 54 00:02:54,960 --> 00:02:57,760 Speaker 3: even higher because that doesn't include super pac funding. 55 00:02:59,200 --> 00:03:01,640 Speaker 5: All right, Bloomberg Tyler Kendall live at the White House 56 00:03:01,680 --> 00:03:03,720 Speaker 5: for us, Thank you so much, and we want to 57 00:03:03,720 --> 00:03:06,640 Speaker 5: get more into this fallout and turn to our political panel. 58 00:03:06,639 --> 00:03:09,880 Speaker 5: Genie Shanzo is with US Bloomber Politics contributor, democratic analyst 59 00:03:09,880 --> 00:03:12,200 Speaker 5: and senior Democracy Fellow at the Center for the Study 60 00:03:12,240 --> 00:03:15,359 Speaker 5: of the Presidency in Congress alongside Lester Monthson. Principle of 61 00:03:15,400 --> 00:03:20,400 Speaker 5: the international practice at BGR Group. Are Republican strategists today, Lester, 62 00:03:20,520 --> 00:03:22,640 Speaker 5: We don't need to debate whether or not President Trump 63 00:03:22,639 --> 00:03:26,160 Speaker 5: would have won this election without Elon Musk's financial assistance, 64 00:03:26,200 --> 00:03:29,160 Speaker 5: But there is a question about whether that financial assistance 65 00:03:29,200 --> 00:03:33,440 Speaker 5: will continue for Republicans in the cycles moving forward. Do 66 00:03:33,520 --> 00:03:35,800 Speaker 5: they need his money? Do they have reason for concern 67 00:03:35,840 --> 00:03:37,800 Speaker 5: in twenty twenty six and twenty twenty eight if Elon 68 00:03:37,920 --> 00:03:39,040 Speaker 5: Musk isn't going to be there. 69 00:03:40,200 --> 00:03:43,640 Speaker 6: Well, it certainly would help to have his money. I 70 00:03:43,640 --> 00:03:46,720 Speaker 6: guess the question is going to be can the Republicans 71 00:03:46,800 --> 00:03:51,640 Speaker 6: find other donors to kind of replace those resources. It'll 72 00:03:51,640 --> 00:03:55,920 Speaker 6: be tough. Elon was no doubt a factor in the 73 00:03:55,960 --> 00:03:59,240 Speaker 6: election last year, both at the presidential level and in 74 00:03:59,280 --> 00:04:03,240 Speaker 6: other ways. However, he also showed in the Supreme Court 75 00:04:03,280 --> 00:04:06,120 Speaker 6: election in Wisconsin just a few weeks ago that that 76 00:04:06,320 --> 00:04:10,160 Speaker 6: spending is not dispositive. He can spend a lot of money, 77 00:04:10,200 --> 00:04:13,960 Speaker 6: He himself can be a divisive figure. There's a little 78 00:04:14,000 --> 00:04:17,760 Speaker 6: bit of a double edged sword here. So perhaps President 79 00:04:17,760 --> 00:04:22,279 Speaker 6: Trump and the Republicans might see some advantage to having 80 00:04:22,320 --> 00:04:25,800 Speaker 6: Elon Musk outside of the tent, although honestly, it's hard 81 00:04:25,800 --> 00:04:28,000 Speaker 6: to imagine I think on net it's better for them 82 00:04:28,000 --> 00:04:29,720 Speaker 6: to have him on the team. 83 00:04:30,600 --> 00:04:33,080 Speaker 2: Genny. We've heard a lot from both of these men today, 84 00:04:33,120 --> 00:04:35,760 Speaker 2: the President and Elon Musk, and we should note that 85 00:04:35,800 --> 00:04:39,279 Speaker 2: Elon Musk is taking issue with the idea that he 86 00:04:39,720 --> 00:04:42,159 Speaker 2: missed his opportunity to say something in the White House. 87 00:04:42,160 --> 00:04:44,359 Speaker 2: The President said Elon knew the inner workings of the 88 00:04:44,360 --> 00:04:48,800 Speaker 2: bill better than almost anyone. Immediately, responding on Twitter, Musk 89 00:04:48,839 --> 00:04:51,440 Speaker 2: says false. This bill was never shown to me once 90 00:04:51,920 --> 00:04:54,279 Speaker 2: and was passed in the dead of night, so fast 91 00:04:54,320 --> 00:04:58,520 Speaker 2: that almost no one in Congress could read it. You 92 00:04:58,640 --> 00:05:01,560 Speaker 2: heard Donald Trump last out. We listened to this together Jeanie, 93 00:05:02,000 --> 00:05:05,040 Speaker 2: as he talked about what people experience emotionally when they 94 00:05:05,120 --> 00:05:08,000 Speaker 2: leave his administration. He said, at some point they miss 95 00:05:08,040 --> 00:05:11,880 Speaker 2: it so badly and some of them become hostile. I 96 00:05:11,920 --> 00:05:13,480 Speaker 2: don't know what it is, he said. I guess it's 97 00:05:13,520 --> 00:05:17,760 Speaker 2: Trump derangement syndrome. They become hostile. What's he talking himself 98 00:05:17,760 --> 00:05:18,240 Speaker 2: into here? 99 00:05:20,240 --> 00:05:24,159 Speaker 4: He is diagnosing Joe Biden. He is diagnosing Elon Musk 100 00:05:24,240 --> 00:05:28,080 Speaker 4: now with Trump derangement syndrome. He is playing doctor. The 101 00:05:28,160 --> 00:05:32,599 Speaker 4: reality is for Donald Trump, this fight is not one 102 00:05:32,720 --> 00:05:35,840 Speaker 4: he needs or should have. And you know, I think 103 00:05:35,880 --> 00:05:38,640 Speaker 4: he tried to put it off with that lovely goodbye 104 00:05:38,720 --> 00:05:41,240 Speaker 4: ceremony we all watched in the White House, but obviously 105 00:05:41,640 --> 00:05:44,600 Speaker 4: it did not work. And you look at what has 106 00:05:44,640 --> 00:05:48,360 Speaker 4: happened in just the last few days, including allowing his 107 00:05:48,640 --> 00:05:53,600 Speaker 4: staff to replace the NASA administrator, so much of it 108 00:05:53,680 --> 00:05:57,800 Speaker 4: seemed focused on Elon Musk and some of the frustration 109 00:05:58,040 --> 00:06:00,800 Speaker 4: that seemed to be there. So I think he is 110 00:06:00,839 --> 00:06:04,920 Speaker 4: feeling that. And for the Trump administration, even if they 111 00:06:05,000 --> 00:06:07,680 Speaker 4: get this bill passed, if history is any guide, they're 112 00:06:07,720 --> 00:06:10,159 Speaker 4: going to have to sell it, and selling it is 113 00:06:10,200 --> 00:06:13,560 Speaker 4: going to be much harder with Elon Musk off the reservation. 114 00:06:13,800 --> 00:06:16,480 Speaker 4: So this is not just an issue of the astounding 115 00:06:16,520 --> 00:06:19,200 Speaker 4: money that Tyler was just talking about. It's also an 116 00:06:19,240 --> 00:06:21,920 Speaker 4: issue of the narrative. They've got to sell this thing, 117 00:06:22,960 --> 00:06:25,400 Speaker 4: difficult to do with somebody with a megaphone as big 118 00:06:25,440 --> 00:06:27,279 Speaker 4: as Elon Musk on the other side. 119 00:06:28,920 --> 00:06:33,080 Speaker 5: Well, and when we consider the selling of this lester Republicans, 120 00:06:33,200 --> 00:06:35,680 Speaker 5: as part of their pitch for this one big, beautiful bill, 121 00:06:35,720 --> 00:06:39,039 Speaker 5: have basically said it's going to avoid a tax hike 122 00:06:39,279 --> 00:06:41,600 Speaker 5: what they describe as what would be the largest tax 123 00:06:41,640 --> 00:06:45,120 Speaker 5: hike in American history, But how much is that message 124 00:06:45,120 --> 00:06:49,080 Speaker 5: effective against messages of how much actually realistically could be cut, 125 00:06:49,120 --> 00:06:52,640 Speaker 5: The potential implications for Medicare, Medicaid SNAP programs, the impact 126 00:06:52,640 --> 00:06:55,880 Speaker 5: it could be felt in rural areas, is avoiding a 127 00:06:56,000 --> 00:06:59,520 Speaker 5: hike the same as feeling a cut. 128 00:07:00,120 --> 00:07:02,320 Speaker 6: Well, I mean, that's going to be the question. Right 129 00:07:02,400 --> 00:07:05,080 Speaker 6: at the end of the day. The Republican Party is about, 130 00:07:05,160 --> 00:07:09,200 Speaker 6: is the party that cuts taxes? It is. It's a 131 00:07:09,279 --> 00:07:13,520 Speaker 6: little bit hypocritical. It always has been. On spending. The 132 00:07:13,560 --> 00:07:17,240 Speaker 6: Republican Party has never cut spending in the federal government. 133 00:07:17,280 --> 00:07:22,120 Speaker 6: Reagan didn't, the Bushes didn't. Trump certainly hasn't as much 134 00:07:22,160 --> 00:07:24,400 Speaker 6: as their rhetoric would have you indicate. That's why this 135 00:07:24,560 --> 00:07:28,600 Speaker 6: Doge Act, in Elon Musk's kind of presence in the administration, 136 00:07:28,760 --> 00:07:30,840 Speaker 6: was a little bit of a side show to the 137 00:07:31,360 --> 00:07:33,280 Speaker 6: real thing, which is, at the end of the day, 138 00:07:33,840 --> 00:07:38,240 Speaker 6: Republicans want to get government out of people's lives, lower taxes, 139 00:07:38,320 --> 00:07:41,640 Speaker 6: fewer regulations. So to that extent, this bill is going 140 00:07:41,680 --> 00:07:45,320 Speaker 6: to be very sellable if you can, if the Democrats 141 00:07:45,360 --> 00:07:50,000 Speaker 6: can effectively use the fearmonger button on budget deficits and 142 00:07:50,040 --> 00:07:53,000 Speaker 6: the debt question and maybe even some of these medicare cuts. 143 00:07:53,240 --> 00:07:55,600 Speaker 6: Maybe they'll have a chance next year, but right now 144 00:07:55,680 --> 00:07:58,600 Speaker 6: I actually think that even with the departure of Musk, 145 00:07:59,600 --> 00:08:02,240 Speaker 6: President Trump and the Republicans aren't fairly strong ground here. 146 00:08:02,280 --> 00:08:04,320 Speaker 6: It's certainly not a perfect bill, but it does a 147 00:08:04,320 --> 00:08:06,880 Speaker 6: lot of the things that the party has always advocated for. 148 00:08:07,920 --> 00:08:09,840 Speaker 2: Genie, I want to ask you about something that would 149 00:08:10,160 --> 00:08:12,840 Speaker 2: normally be a pretty big story but was obscured by 150 00:08:12,840 --> 00:08:14,920 Speaker 2: this back and forth with Elon Musk, and that was 151 00:08:14,960 --> 00:08:19,760 Speaker 2: President Trump's announcement last night to investigate the prior administration 152 00:08:20,400 --> 00:08:22,880 Speaker 2: and in fact look into allegations that there was a 153 00:08:22,920 --> 00:08:25,720 Speaker 2: cover up of Joe Biden's mental acuity, and specifically he 154 00:08:25,760 --> 00:08:28,080 Speaker 2: talked about it today in the oval the use of 155 00:08:28,200 --> 00:08:31,640 Speaker 2: the auto pen, which he describes as the big scandal 156 00:08:31,680 --> 00:08:34,760 Speaker 2: of the last many years. He said, who is using it? 157 00:08:34,840 --> 00:08:37,840 Speaker 2: I think? I know. I'm not a big autopen person. 158 00:08:38,200 --> 00:08:41,360 Speaker 2: It's very dangerous. Usually when they put documents in front 159 00:08:41,360 --> 00:08:44,640 Speaker 2: of me, he said, they're important, I sign important documents, 160 00:08:44,679 --> 00:08:48,960 Speaker 2: suggesting the autopen should be reserved to sign letters from children, 161 00:08:49,000 --> 00:08:51,560 Speaker 2: which he says they receive thousands at the White House 162 00:08:51,880 --> 00:08:54,440 Speaker 2: every month. We only have a minute left. What's going 163 00:08:54,520 --> 00:08:55,800 Speaker 2: to happen with this investigation? 164 00:08:57,120 --> 00:08:59,640 Speaker 4: Well, he's handed it off to the DOJ I know 165 00:08:59,800 --> 00:09:02,720 Speaker 4: ques question that they will look into it. But for 166 00:09:02,800 --> 00:09:05,840 Speaker 4: Donald Trump, this is very much of a distraction, everything 167 00:09:05,920 --> 00:09:09,520 Speaker 4: from the Joe Biden investigation to the travel band, to 168 00:09:09,600 --> 00:09:12,960 Speaker 4: the bandon international students on a Wednesday night at nine pm, 169 00:09:13,320 --> 00:09:16,840 Speaker 4: an effort to distract from what has burst out. Nonetheless, 170 00:09:16,880 --> 00:09:20,160 Speaker 4: despite all his efforts, is this riffed with Elon Musk 171 00:09:20,200 --> 00:09:23,880 Speaker 4: over this bill. Donald Trump needs to have a strong 172 00:09:24,040 --> 00:09:28,040 Speaker 4: economy and this bill is not going to get him there, 173 00:09:28,120 --> 00:09:30,680 Speaker 4: and the fight with Elon Musk is problematic for him. 174 00:09:31,800 --> 00:09:35,600 Speaker 2: Genie Shanzino and Lester Munson. Great conversation, Thanks to both 175 00:09:35,640 --> 00:09:38,560 Speaker 2: of our panelists today, and stay with us straight ahead 176 00:09:38,600 --> 00:09:42,079 Speaker 2: on Bloomberg. Our conversation with the Mayor of Washington, D C. 177 00:09:42,320 --> 00:09:45,480 Speaker 2: Muriel Bowser joins us in studio on the fastest show 178 00:09:45,480 --> 00:09:46,800 Speaker 2: in politics, Some Bloomberg. 179 00:09:49,160 --> 00:09:52,600 Speaker 1: You're listening to the Bloomberg Balance of Power podcast. Catch 180 00:09:52,679 --> 00:09:56,160 Speaker 1: us live weekdays at noon and five pm Eastern on Apple, 181 00:09:56,200 --> 00:09:59,240 Speaker 1: Cockway and Android Auto with the Bloomberg Business app. You 182 00:09:59,240 --> 00:10:02,720 Speaker 1: can also listen live on Amazon Alexa from our flagship 183 00:10:02,800 --> 00:10:07,360 Speaker 1: New York station, Just Say Alexa played Bloomberg eleven thirty. 184 00:10:08,160 --> 00:10:11,440 Speaker 2: We talked politics with a few plates to spend today 185 00:10:11,679 --> 00:10:14,640 Speaker 2: as we started this program inside the Oval Office and 186 00:10:14,679 --> 00:10:17,840 Speaker 2: a meeting between President Trump and the Chancellor of Germany. 187 00:10:17,880 --> 00:10:20,520 Speaker 2: The back and forth now between Trump and Elon Musk 188 00:10:21,559 --> 00:10:24,200 Speaker 2: sucking a lot of oxygen out of the room. But 189 00:10:24,280 --> 00:10:28,120 Speaker 2: we try to keep focused on policy here. That's the point. 190 00:10:28,160 --> 00:10:31,640 Speaker 2: That's why you listen to and watch Bloomberg. When we 191 00:10:31,720 --> 00:10:36,000 Speaker 2: talk about this reconciliation bill, which Elon Musk is disparaging 192 00:10:36,080 --> 00:10:39,760 Speaker 2: by the minute on Twitter. It's really boiled down to 193 00:10:39,920 --> 00:10:44,000 Speaker 2: three sticking points here, three important issues. Remembering that Republicans 194 00:10:44,040 --> 00:10:46,200 Speaker 2: from the Senate Finance Committee went to the White House 195 00:10:46,280 --> 00:10:48,600 Speaker 2: last evening, we talked to one of them, Roger Marshall, 196 00:10:48,600 --> 00:10:50,760 Speaker 2: on the late edition of Balance of Power, just as 197 00:10:50,760 --> 00:10:53,520 Speaker 2: he emerged from the White House. It's come down to 198 00:10:53,640 --> 00:10:57,160 Speaker 2: three big ones. The idea of permanence, we talked about 199 00:10:57,200 --> 00:11:00,760 Speaker 2: this yesterday, making permanent, the business tax cuts. Also some 200 00:11:00,920 --> 00:11:05,000 Speaker 2: limits they're talking about on some pretty key Trump priorities 201 00:11:05,080 --> 00:11:08,480 Speaker 2: like no tax on overtime as well these new savings accounts, 202 00:11:08,520 --> 00:11:11,920 Speaker 2: the Trump accounts as they've called them for kids. Also, 203 00:11:12,080 --> 00:11:15,920 Speaker 2: of course, the salt deduction, and we've heard this time 204 00:11:15,960 --> 00:11:19,400 Speaker 2: and again Senate Republicans want to change it significantly, and 205 00:11:19,440 --> 00:11:21,840 Speaker 2: that's a problem. If your name is Mike Johnson, the 206 00:11:21,840 --> 00:11:25,880 Speaker 2: Speaker of the House, talking early today on Bloomberg Surveillance 207 00:11:25,880 --> 00:11:28,880 Speaker 2: on Bloomberg TV and Radio about the delicate balance that 208 00:11:28,920 --> 00:11:30,840 Speaker 2: he's struck in the House, one that could be easily 209 00:11:30,880 --> 00:11:34,040 Speaker 2: disrupted by a change like that. Let's listen to Mike Johnson. 210 00:11:34,640 --> 00:11:37,360 Speaker 7: Remember, it took us over a year to develop this 211 00:11:37,480 --> 00:11:40,680 Speaker 7: piece of legislation. We have eleven different committees in the House, 212 00:11:40,800 --> 00:11:44,520 Speaker 7: all the areas of jurisdiction that worked on the reconciliation 213 00:11:44,640 --> 00:11:46,880 Speaker 7: effort to reconcile the budget. And what we're going to 214 00:11:46,920 --> 00:11:51,040 Speaker 7: deliver here again is historic tax relief and savings. At 215 00:11:51,040 --> 00:11:54,319 Speaker 7: the same time. If we do not get this bill done, 216 00:11:54,600 --> 00:11:57,000 Speaker 7: the tax cuts of twenty seventeen, the tax cuts and 217 00:11:57,080 --> 00:12:00,880 Speaker 7: JOBZAC will expire at the end of decemberman will receive 218 00:12:00,920 --> 00:12:03,840 Speaker 7: the largest tax increase in US history, all at once. 219 00:12:03,920 --> 00:12:06,760 Speaker 7: It would be devastating for the economy. So we've addressed 220 00:12:06,800 --> 00:12:10,000 Speaker 7: that here. We've made the tax cuts permanent and we've 221 00:12:10,120 --> 00:12:13,240 Speaker 7: infused it with a pro growth series of policies that 222 00:12:13,280 --> 00:12:15,600 Speaker 7: will get the economy going again. It will be jet 223 00:12:15,679 --> 00:12:18,600 Speaker 7: fueled to the economy because we're going to reduce wasteful spending, 224 00:12:18,640 --> 00:12:20,840 Speaker 7: We're going to reduce taxes, and we're going to reduce 225 00:12:20,920 --> 00:12:23,760 Speaker 7: regulations as well. And that is what will allow job 226 00:12:23,800 --> 00:12:26,000 Speaker 7: creators and the energy sector and everyone else to get 227 00:12:26,000 --> 00:12:26,440 Speaker 7: going again. 228 00:12:26,480 --> 00:12:29,000 Speaker 8: And your version of the bill, of course, increases the 229 00:12:29,040 --> 00:12:33,200 Speaker 8: salt deduction cap, which yesterday Senate Majority Leader John Thune said, quote, 230 00:12:33,200 --> 00:12:35,840 Speaker 8: there isn't a single Republican senator who cares much about 231 00:12:35,880 --> 00:12:38,800 Speaker 8: the salt issue. You and I both know you cannot 232 00:12:38,840 --> 00:12:42,400 Speaker 8: pass this bill without increasing the salt deduction cap. How 233 00:12:42,440 --> 00:12:46,760 Speaker 8: do you envision that deduction changing given the fact that 234 00:12:46,880 --> 00:12:52,160 Speaker 8: no senator, Republican senator wants a vote for this, Well. 235 00:12:52,080 --> 00:12:54,600 Speaker 7: I appreciate that they don't. They all come from red states, 236 00:12:54,720 --> 00:12:58,240 Speaker 7: right as do I, and we have very different perspective 237 00:12:58,559 --> 00:13:01,720 Speaker 7: on salt than our college in the bluestays, for example, 238 00:13:01,760 --> 00:13:05,040 Speaker 7: in California and New York, in New Jersey. But that 239 00:13:05,200 --> 00:13:07,560 Speaker 7: is the reality in the House. Remembering and they have 240 00:13:07,640 --> 00:13:10,160 Speaker 7: to remember my senate friends and colleagues have to remember, 241 00:13:10,200 --> 00:13:12,160 Speaker 7: I have to deliver two hundred and seventeen votes to 242 00:13:12,200 --> 00:13:14,600 Speaker 7: get that thing across the line if they modify it. 243 00:13:14,640 --> 00:13:18,040 Speaker 7: So I had lunch with my Senate friends Tuesday, last 244 00:13:18,040 --> 00:13:20,000 Speaker 7: two weeks ago, before we passed the bill in the 245 00:13:20,000 --> 00:13:23,959 Speaker 7: House on that Thursday, and I encouraged them to modify 246 00:13:24,000 --> 00:13:26,440 Speaker 7: it as little as possible, right because I gave a metaphor. 247 00:13:26,480 --> 00:13:28,920 Speaker 7: I said, my friends, I am crossing the Grand Canyon 248 00:13:28,960 --> 00:13:32,040 Speaker 7: on a piece of dental flaws. Okay, the equilibrium that 249 00:13:32,080 --> 00:13:34,520 Speaker 7: we reached here took quite a bit of time to 250 00:13:34,640 --> 00:13:37,480 Speaker 7: get to where we are, and you can't load me 251 00:13:37,600 --> 00:13:39,760 Speaker 7: up on either side. And if you go and slash 252 00:13:40,440 --> 00:13:43,360 Speaker 7: the salt cap that we negotiated carefully for over a year, 253 00:13:43,600 --> 00:13:45,360 Speaker 7: it's going to make it very difficult for me to 254 00:13:45,400 --> 00:13:48,000 Speaker 7: deliver the necessary number of votes. Remembering I can only 255 00:13:48,040 --> 00:13:50,560 Speaker 7: lose three in the House. They can only lose three 256 00:13:50,679 --> 00:13:52,679 Speaker 7: in the Senate to get this done. So we're all 257 00:13:52,679 --> 00:13:55,600 Speaker 7: working together. It's one team, House and Senate together united 258 00:13:55,640 --> 00:13:58,960 Speaker 7: in this effort. They understand that, and I think they 259 00:13:59,080 --> 00:14:02,280 Speaker 7: understand certainly, and the leaders over there understand the complexity 260 00:14:02,280 --> 00:14:03,679 Speaker 7: of what we're having to deal with you speak. 261 00:14:03,480 --> 00:14:04,920 Speaker 2: Of Johnson just sort of put a bow on it. 262 00:14:04,960 --> 00:14:07,040 Speaker 2: So forty thousands still likely to remain the cat. 263 00:14:09,400 --> 00:14:11,720 Speaker 7: That's what we negotiated here, and I'm certainly trying to 264 00:14:11,720 --> 00:14:14,199 Speaker 7: hold to that number. And I look, we've paid for it. 265 00:14:14,280 --> 00:14:16,440 Speaker 7: I think we've got it worked out and all the 266 00:14:16,480 --> 00:14:18,880 Speaker 7: math and the legislation, and I think it's something that 267 00:14:19,280 --> 00:14:21,000 Speaker 7: I know they're not in love with it, but I 268 00:14:21,000 --> 00:14:24,040 Speaker 7: certainly hope they'll tolerate it so we can maintain our 269 00:14:24,120 --> 00:14:25,080 Speaker 7: vote tally over here. 270 00:14:26,760 --> 00:14:28,800 Speaker 2: That's the Speaker of the House, Mike Johnson earlier today 271 00:14:28,800 --> 00:14:31,080 Speaker 2: on Bloomberg TV and Radio speaking with my colleagues on 272 00:14:31,120 --> 00:14:34,560 Speaker 2: Bloomberg Surveillance. Really interesting there when we consider the ability 273 00:14:34,600 --> 00:14:37,160 Speaker 2: to tip this boat with one single change, never mind 274 00:14:37,240 --> 00:14:40,160 Speaker 2: three major changes that could come out of the Senate 275 00:14:40,240 --> 00:14:42,800 Speaker 2: as it goes back to the House. Now. Of course, 276 00:14:42,800 --> 00:14:46,200 Speaker 2: we talk about congressional matters every day here, and the 277 00:14:46,200 --> 00:14:49,200 Speaker 2: budgeting process has been a big one. Remembering that one 278 00:14:49,280 --> 00:14:54,360 Speaker 2: major piece was left out of the budgeting process for 279 00:14:54,440 --> 00:14:55,960 Speaker 2: this fiscal year, and that has to do with the 280 00:14:55,960 --> 00:15:00,680 Speaker 2: District of Columbia. We talked about this the potential for teachers, firefighters, 281 00:15:00,680 --> 00:15:05,640 Speaker 2: police to be laid off, with the federal city effectively defunded. 282 00:15:06,280 --> 00:15:08,080 Speaker 2: It's a great pleasure to have the Mayor of Washington, 283 00:15:08,160 --> 00:15:10,440 Speaker 2: DC with us in studio today. Mario Bowser is with 284 00:15:10,520 --> 00:15:13,600 Speaker 2: us live on Bloomberg TV and Radio. Thanks for coming 285 00:15:13,600 --> 00:15:15,120 Speaker 2: to thank you, thanks for having me. I'd like to 286 00:15:15,120 --> 00:15:17,080 Speaker 2: start with you on this idea because we were talking 287 00:15:17,120 --> 00:15:20,560 Speaker 2: about extraordinary measures here, yes, just weeks ago. Yeah, you've 288 00:15:20,560 --> 00:15:23,640 Speaker 2: managed to avoid layoffs. Can you give me a sense 289 00:15:23,680 --> 00:15:26,280 Speaker 2: of the budget that you just dropped that makes up 290 00:15:26,360 --> 00:15:28,480 Speaker 2: for this shortfall and how did you manage to avoid 291 00:15:28,520 --> 00:15:29,400 Speaker 2: a crisis so far. 292 00:15:29,600 --> 00:15:32,240 Speaker 9: Well, we spent a lot of time and unfortunately is 293 00:15:32,320 --> 00:15:37,400 Speaker 9: diverted attention that could be used for other things, our 294 00:15:37,560 --> 00:15:41,560 Speaker 9: upcoming budget, growing our city, our kids in school. But 295 00:15:41,640 --> 00:15:46,920 Speaker 9: the Congress in the most recent cr neglected to exclude 296 00:15:47,000 --> 00:15:52,360 Speaker 9: the district from limiting agencies to their f y twenty 297 00:15:52,360 --> 00:15:55,360 Speaker 9: four levels, which for us meant about one point one 298 00:15:55,400 --> 00:16:00,160 Speaker 9: billion dollars in reduce spending. And we worked very very 299 00:16:00,240 --> 00:16:04,320 Speaker 9: hard to use an authority that I have to expand 300 00:16:04,360 --> 00:16:08,080 Speaker 9: our budget by six percent and use some other funds 301 00:16:08,080 --> 00:16:11,240 Speaker 9: that we have that have automatic authority to reduce the 302 00:16:11,320 --> 00:16:14,880 Speaker 9: impact to just over three hundred million, but it still 303 00:16:14,920 --> 00:16:19,920 Speaker 9: meant that our ability to provide services has been impacted. 304 00:16:19,960 --> 00:16:23,320 Speaker 9: But we've been able to maintain our team teachers, police 305 00:16:23,320 --> 00:16:24,880 Speaker 9: offices in summer programming. 306 00:16:24,960 --> 00:16:27,160 Speaker 2: You have assurances that this will be fixed. 307 00:16:27,640 --> 00:16:31,000 Speaker 9: Well, I spoke to the speaker himself and he told 308 00:16:31,000 --> 00:16:34,920 Speaker 9: me that it wasn't a question of will, but scheduling. 309 00:16:35,440 --> 00:16:37,440 Speaker 9: And so now that they're back, we're going to hold 310 00:16:37,480 --> 00:16:41,720 Speaker 9: them to that because the district has been impacted by 311 00:16:41,800 --> 00:16:47,440 Speaker 9: federal changes, the changes by DOGE removing people from jobs, 312 00:16:47,560 --> 00:16:51,400 Speaker 9: shuttering offices is having a real negative impact on the 313 00:16:51,400 --> 00:16:55,240 Speaker 9: capital city. And so this three hundred million dollars, if 314 00:16:55,240 --> 00:16:58,360 Speaker 9: we can put that to work, then it will help 315 00:16:58,440 --> 00:17:00,600 Speaker 9: us shift with the economy. 316 00:17:01,200 --> 00:17:05,280 Speaker 2: You just mentioned the layoffs here. According to the count 317 00:17:05,359 --> 00:17:10,040 Speaker 2: from your chief financial officer, forty thousand jobs were cut 318 00:17:10,080 --> 00:17:14,240 Speaker 2: on the federal level by DOGE. That's like having multiple 319 00:17:14,280 --> 00:17:17,560 Speaker 2: the equivalent of multiple neighborhoods all losing their jobs at 320 00:17:17,600 --> 00:17:19,680 Speaker 2: the same time. Yeah, so you've got a billion dollars 321 00:17:19,720 --> 00:17:22,880 Speaker 2: shortfall in the short run and a very real issue 322 00:17:23,000 --> 00:17:24,920 Speaker 2: for the long term. What does that mean for Washington, 323 00:17:24,960 --> 00:17:25,760 Speaker 2: DC's economy. 324 00:17:25,960 --> 00:17:28,240 Speaker 9: What it means is we have to shift and shift fast. 325 00:17:28,359 --> 00:17:31,159 Speaker 9: But I think that the President in Congress can stop 326 00:17:31,160 --> 00:17:35,119 Speaker 9: with this, They can pause this. The courts are continue 327 00:17:35,200 --> 00:17:39,199 Speaker 9: to work on issues of fairness related to separations and 328 00:17:39,240 --> 00:17:43,239 Speaker 9: making sure they're all legally done. But I think the 329 00:17:43,280 --> 00:17:46,960 Speaker 9: American people expect their lawmakers and the president to say, 330 00:17:47,000 --> 00:17:50,200 Speaker 9: what are these changes doing to our agencies? How is 331 00:17:50,240 --> 00:17:53,040 Speaker 9: it affecting veterans? How is it affecting people who use 332 00:17:53,080 --> 00:17:58,000 Speaker 9: Social Security? And certainly is having impacts on local governments 333 00:17:58,040 --> 00:18:01,280 Speaker 9: all across the US, and especially US in this region 334 00:18:01,560 --> 00:18:05,920 Speaker 9: and not just DC, but DC, Maryland and Virginia. We'll 335 00:18:05,960 --> 00:18:10,800 Speaker 9: see changes to how we can run our cities because 336 00:18:10,800 --> 00:18:12,680 Speaker 9: of the negative impact on our budgets. 337 00:18:12,760 --> 00:18:15,240 Speaker 2: With the conversations you're having, like now with the White House, 338 00:18:15,280 --> 00:18:18,000 Speaker 2: the President talks about how dirty the city is, how 339 00:18:18,000 --> 00:18:19,679 Speaker 2: it's time to clean it up, and so forth. But 340 00:18:19,720 --> 00:18:21,280 Speaker 2: we remember, you learn a lot of lessons in the 341 00:18:21,280 --> 00:18:24,160 Speaker 2: first Trump administration. A lot of inc has been spilled 342 00:18:24,480 --> 00:18:27,920 Speaker 2: on the way that you've managed to manage this relationship. 343 00:18:28,240 --> 00:18:30,000 Speaker 2: All Trump, how would you describe it? Well? 344 00:18:30,080 --> 00:18:34,000 Speaker 9: I think that President Trump left d C during COVID, 345 00:18:34,760 --> 00:18:39,239 Speaker 9: which cities were ravaged by COVID homelessness, to increases in 346 00:18:39,320 --> 00:18:44,120 Speaker 9: crime with lack of services because government agencies were shuttered. 347 00:18:44,800 --> 00:18:47,239 Speaker 9: And we've worked very hard to get that image out 348 00:18:47,280 --> 00:18:50,200 Speaker 9: of his mind because that's not the DC of today. 349 00:18:50,880 --> 00:18:54,119 Speaker 9: In fact, we've driven down crime to a thirty year low. 350 00:18:54,640 --> 00:18:59,560 Speaker 9: Our tourism recovered in twenty twenty four. Our kids were 351 00:18:59,560 --> 00:19:02,879 Speaker 9: the fast is back to school, and our school population 352 00:19:03,000 --> 00:19:07,200 Speaker 9: has rebounded. An investment in DC. People are looking hard 353 00:19:07,280 --> 00:19:10,120 Speaker 9: at us because of some of the changes we're making 354 00:19:11,040 --> 00:19:15,680 Speaker 9: in our business environment. We are lowering taxes, we are 355 00:19:15,760 --> 00:19:19,720 Speaker 9: cutting red tape, and we are incentivizing good businesses to 356 00:19:19,800 --> 00:19:22,359 Speaker 9: start here, grow here, and hire DC residents. 357 00:19:22,400 --> 00:19:24,000 Speaker 2: Do you feel like you have a partner in the 358 00:19:24,000 --> 00:19:25,320 Speaker 2: White House or an obstacle? 359 00:19:25,840 --> 00:19:28,760 Speaker 9: Well, as a partnership we work on every day. Certainly, 360 00:19:29,440 --> 00:19:33,159 Speaker 9: the President has an outsized influence over the city of 361 00:19:33,280 --> 00:19:36,720 Speaker 9: Washington because it's the nation's capital. So we like him 362 00:19:36,760 --> 00:19:41,040 Speaker 9: to make some bigger investments like Union Station and continuing 363 00:19:41,040 --> 00:19:45,840 Speaker 9: to be a partner and developing RFK, helping us retool 364 00:19:45,960 --> 00:19:50,320 Speaker 9: and reskal our workers, and asking him to pause on 365 00:19:50,400 --> 00:19:52,800 Speaker 9: these separations and rehire qualified people. 366 00:19:52,880 --> 00:19:55,400 Speaker 2: I know you made an important hire on rehabing Union Station, 367 00:19:55,480 --> 00:19:57,080 Speaker 2: which is something that we all look forward to those 368 00:19:57,119 --> 00:19:59,000 Speaker 2: of us who use it all the time. Good the 369 00:19:59,040 --> 00:20:01,960 Speaker 2: President's station, big parade, though, First, is the city ready 370 00:20:01,960 --> 00:20:03,840 Speaker 2: for it? This idea of tanks rolling down the street, 371 00:20:03,840 --> 00:20:05,160 Speaker 2: that's not really going to happen, is it. 372 00:20:05,480 --> 00:20:08,000 Speaker 9: Well, they're going to have a lot of big equipment 373 00:20:08,480 --> 00:20:10,960 Speaker 9: from the air in on the ground, and it's the 374 00:20:11,040 --> 00:20:15,000 Speaker 9: celebration of the Army's two hundred and fiftieth anniversary. The 375 00:20:15,080 --> 00:20:19,840 Speaker 9: President has designated it a national Special Security event. So 376 00:20:19,880 --> 00:20:22,639 Speaker 9: the Secret Service and the National Park Service are the 377 00:20:22,720 --> 00:20:25,680 Speaker 9: lead agencies, and my agencies will be there to support it. 378 00:20:25,720 --> 00:20:27,639 Speaker 2: Is there going to be repaving that follows this thing? 379 00:20:27,720 --> 00:20:30,560 Speaker 2: Or can you actually keep this within the bounds of 380 00:20:30,600 --> 00:20:31,240 Speaker 2: what the city are. 381 00:20:31,680 --> 00:20:35,679 Speaker 9: Our hopes are that the Army, you know, they're a 382 00:20:35,680 --> 00:20:38,480 Speaker 9: big logistical agency, that they know how to move the 383 00:20:38,640 --> 00:20:42,720 Speaker 9: vehicles in the right way. I know that they have 384 00:20:43,880 --> 00:20:47,159 Speaker 9: allocated funds if street repair is necessary. 385 00:20:47,320 --> 00:20:49,120 Speaker 2: Okay, this is going to be quite a day. It's 386 00:20:49,119 --> 00:20:50,040 Speaker 2: the fourteenth, right. 387 00:20:50,080 --> 00:20:52,480 Speaker 9: It's June the fourteenth, Army two fifty. 388 00:20:52,320 --> 00:20:54,440 Speaker 2: All right, we'll be here for it. Of course, you've 389 00:20:54,440 --> 00:20:56,880 Speaker 2: got a big stadium deal to work on. Yes, three 390 00:20:56,880 --> 00:21:00,000 Speaker 2: what seven billion dollars. The Washington Commanders back to Washington, 391 00:21:00,040 --> 00:21:01,600 Speaker 2: and it's a big deal for the city as well. 392 00:21:01,640 --> 00:21:06,560 Speaker 2: When you talk about the post COVID era chapter for Washington. 393 00:21:07,480 --> 00:21:09,879 Speaker 2: The city Council's got some issues on the amount of 394 00:21:09,880 --> 00:21:12,439 Speaker 2: taxpayer funding, also the fact that the team wouldn't be 395 00:21:12,600 --> 00:21:14,920 Speaker 2: paying rent to the city. How do you get around it. 396 00:21:15,400 --> 00:21:21,639 Speaker 9: Oh, we'll get around it. The Washington Commanders back home 397 00:21:22,680 --> 00:21:25,640 Speaker 9: is a top priority for the residents of the district. 398 00:21:26,000 --> 00:21:30,040 Speaker 9: We secured one hundred and eighty acres from the National 399 00:21:30,080 --> 00:21:33,440 Speaker 9: Park Service at the end of December. The team will 400 00:21:33,440 --> 00:21:37,119 Speaker 9: bring two point seven billion dollars in private investment to 401 00:21:37,240 --> 00:21:44,000 Speaker 9: kickstart that project. There will be housing, hotels, entertainment, recreation, 402 00:21:44,920 --> 00:21:49,640 Speaker 9: activating a very important part of Washington, DC. So we'll 403 00:21:49,640 --> 00:21:51,600 Speaker 9: get it done. It's a big part of my budget 404 00:21:51,600 --> 00:21:54,800 Speaker 9: proposal that the council was working on right now, and 405 00:21:54,840 --> 00:21:58,760 Speaker 9: it will generate jobs and tax revenue for us to 406 00:21:59,040 --> 00:22:01,280 Speaker 9: invest in all eight wards of Washington d C. 407 00:22:01,560 --> 00:22:03,119 Speaker 2: Maybe that's part of an answer to some of the 408 00:22:03,119 --> 00:22:05,720 Speaker 2: federal layoffs that we were just talking about. You're friends 409 00:22:05,760 --> 00:22:08,119 Speaker 2: with Daniel Lurie, the mayor of San Francisco. 410 00:22:08,680 --> 00:22:09,720 Speaker 9: I think i've met he. 411 00:22:09,800 --> 00:22:12,720 Speaker 2: Was on Bloomberg a little earlier today. Great conversation. He 412 00:22:12,760 --> 00:22:16,240 Speaker 2: said he has more fun than other mayors and specifically 413 00:22:16,280 --> 00:22:18,879 Speaker 2: said he has more fun than the mayors of Sacramento 414 00:22:19,200 --> 00:22:22,560 Speaker 2: and Washington, d C. Can you have fun in Washington 415 00:22:22,560 --> 00:22:23,679 Speaker 2: in this political environment? 416 00:22:23,720 --> 00:22:24,280 Speaker 5: Are you kidding? 417 00:22:24,400 --> 00:22:27,720 Speaker 9: This is the best city in the world. We have 418 00:22:27,800 --> 00:22:33,399 Speaker 9: the best restaurants, arts, entertainment, culture, museums that are free, 419 00:22:34,080 --> 00:22:36,800 Speaker 9: the best metro system, and we have fun here. 420 00:22:36,800 --> 00:22:37,520 Speaker 2: We have lots of fun. 421 00:22:37,600 --> 00:22:40,119 Speaker 9: San Francisco is a great town too, well it is 422 00:22:40,480 --> 00:22:41,320 Speaker 9: you can have fun there. 423 00:22:41,400 --> 00:22:44,000 Speaker 2: I think people misunderstand Washington. I've been here for a 424 00:22:44,000 --> 00:22:46,000 Speaker 2: lot of years of my life, and I wish that 425 00:22:46,040 --> 00:22:48,480 Speaker 2: a lot more people would go beyond the mall and 426 00:22:48,520 --> 00:22:50,600 Speaker 2: meet the people who are who live in Washington and 427 00:22:50,600 --> 00:22:52,680 Speaker 2: who are from here, because it's a beautiful city. And 428 00:22:52,720 --> 00:22:54,000 Speaker 2: I'm glad that you could be with us today. 429 00:22:54,040 --> 00:22:55,680 Speaker 9: Thank you, Thanks for having us, Thank you. 430 00:22:55,800 --> 00:22:59,440 Speaker 2: About live in Washington. On Balance and Power. We covered 431 00:22:59,480 --> 00:23:01,160 Speaker 2: a lot of ground today, from the White House here 432 00:23:01,480 --> 00:23:03,440 Speaker 2: to the Federal City itself, and I'm glad that you 433 00:23:03,440 --> 00:23:07,040 Speaker 2: could spend some time with us here at Thanks for 434 00:23:07,080 --> 00:23:10,159 Speaker 2: listening to the Balance of Power podcasts. Make sure to 435 00:23:10,200 --> 00:23:13,359 Speaker 2: subscribe if you haven't already an Apple, Spotify, or wherever 436 00:23:13,400 --> 00:23:16,000 Speaker 2: you get your podcasts, and you can find us live 437 00:23:16,080 --> 00:23:19,840 Speaker 2: every weekday from Washington, DC at noontime Eastern at Bloomberg 438 00:23:19,920 --> 00:23:22,200 Speaker 2: dot com