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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: It's great to be joined again by the Republican Senator

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Speaker 2: from Texas, Ted Cruz, who chairs the Commerce Committee. Senator,

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Speaker 2: welcome back.

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Speaker 3: It's good to see you.

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Speaker 2: A busy day when it comes to the reconciliation process

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Speaker 2: as we track the parliamentarian in your chamber, a rules

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Speaker 2: committee in the House. I'm just wondering, broadly, what's the

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Speaker 2: first thing you take out.

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Speaker 3: Of this bill.

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Speaker 2: Is it the new cap on salt or are you

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Speaker 2: more focused on enhancing what is in the bill, like

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Speaker 2: making business tax cuts permanent.

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Speaker 1: Well, listen, I think the House did a good job

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Speaker 1: starting this process.

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Speaker 3: We're going to get this bill accomplished.

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Speaker 1: We're going to get it passed because it's the main

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Speaker 1: vehicle to deliver on the promises we made to the

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Speaker 1: American people in November, and so it's the main vehicle

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Speaker 1: to deliver the funding to secure the border. It's the

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Speaker 1: main vehicle to rebuild our military. It's the main vehicle

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Speaker 1: to extend the twenty seventeen tax cuts and make them

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Speaker 1: bigger and bolder, and that's critical for economic growth and jobs.

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Speaker 1: The process of the back and forth is ongoing, and

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Speaker 1: so in the Senate right now, Each committee right is

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Speaker 1: releasing its language and the Senate is going to take

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Speaker 1: some different approaches than the House did, and ultimately there

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Speaker 1: will be a conference and the two will come together,

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Speaker 1: and I think through that process the bill will get

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Speaker 1: better well.

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Speaker 4: And certainly the Commerce Committee has made some changes to

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Speaker 4: the House legislation, including in the bill you released last week,

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Speaker 4: a tweak to the moratorium on state AI laws, tying

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Speaker 4: it to the federal broadband expansion program. Mister Chairman, are

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Speaker 4: you confident that can get through the Senate? Frankly, has

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Speaker 4: the parliamentarian suggested to you that will pass muster when

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Speaker 4: it comes to the.

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Speaker 1: Bird rule, Well, we have yet to argue this before

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Speaker 1: the Parliamentary and I anticipate that we will do so

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Speaker 1: this week, either this week or next week, and it

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Speaker 1: certainly will be challenged. That provision will be challenged in

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Speaker 1: front of the Parliamentary and I don't know how she'll rule.

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Speaker 3: Listen, I think it is very sound policy.

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Speaker 1: If you look at just a few weeks ago, I

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Speaker 1: chaired a hearing on AI, and I think AI is

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Speaker 1: transformational technology that is going to have a massive impact

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Speaker 1: on productivity and jobs across the country, and I think

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Speaker 1: it is critical that America win the race to AI,

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Speaker 1: that we not lose to China. And the hearing I chared,

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Speaker 1: we had witnesses from across the industry testifying. Everyone agreed

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Speaker 1: there is a real danger of state legislation and in

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Speaker 1: particular states like California adopting a heavy handed nanny state approach,

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Speaker 1: much like the European Union, which would cripple America's leadership

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Speaker 1: at AI. And so I think it is sound policy.

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Speaker 1: Whether it gets enacted on reconciliation or not, it is

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Speaker 1: a question that's still being argued.

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Speaker 2: You've got the FAA, of course in your purview, Senator,

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Speaker 2: and it's an agency that we've all, as Americans, talked

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Speaker 2: about a lot recently. This is something that touches all

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Speaker 2: of our viewers and listeners.

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Speaker 3: You've got a little.

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Speaker 2: Over twelve billion dollars here for enhancements in improvements. Is

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Speaker 2: that enough money to replace the nation's air traffic control system?

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Speaker 1: Well, twelve and a half billion dollars is a major

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Speaker 1: investment in modernizing air traffic control. There's no doubt we

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Speaker 1: need to do so. It's something I've been fighting for

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Speaker 1: for over a decade. In the Senate that if you

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Speaker 1: look right now at our air traffic control system, it's

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Speaker 1: outdated equipment that they use radars from the nineteen fifties.

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Speaker 1: They use little slips of paper and computers that have

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Speaker 1: floppy discs. My guess is a lot of your viewers

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Speaker 1: don't even remember what floppy discs were, and yet that's

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Speaker 1: what we rely on to keep our flying public safe.

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Speaker 3: That's unacceptable.

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Speaker 1: We need to embrace modern day technology and GPS. They're

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Speaker 1: enormous upsides, and so twelve and a half billion dollars

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Speaker 1: is a major investment. I also think we need to

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Speaker 1: need reforms to improve the system. That's something that's going

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Speaker 1: to be a real priority for the Commerce Committee.

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Speaker 2: I'm saving my floppies in case they become collectors items someday. Senator,

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Speaker 2: I wonder if you still feel like starlink is part

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Speaker 2: of this solution, and if you've had a chance to

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Speaker 2: talk with Elon Musk about it since his apparent breakup

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Speaker 2: with the president.

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Speaker 1: Oh look, I think starlink is amazing technology. And my

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Speaker 1: view is that technology decisions throughout the government ought to

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Speaker 1: be based on the merits you look at. For example,

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Speaker 1: the bad program, which which Congress authorized forty two billion

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Speaker 1: dollars to provide connections to high quality broadband, and the

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Speaker 1: entire BIDE administration they didn't connect even a single home

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Speaker 1: in America. It was an absolute boondoggle and failure. The

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Speaker 1: President President Trump's administration is rightly focused on using that

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Speaker 1: money to actually have connectivity. One of the reasons the

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Speaker 1: BIDE administration didn't connect anyone is they decided they hated Elon, Musket,

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Speaker 1: hated starlink, and so we're not going to consider that

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Speaker 1: as an option. And the reality when you're talking about

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Speaker 1: broadband is the right technology depends upon the right location.

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Speaker 1: So in a dense herbit environment, fiber makes a lot

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Speaker 1: of sense. If you're out in the mountains or the

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Speaker 1: middle of the wilderness with very sparse population, satellite or

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Speaker 1: or less expensive infrastructure solutions make a lot more sense.

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Speaker 1: And so I think the government ought to make those

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Speaker 1: decisions based on the technology that best meets the need.

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Speaker 4: Mister Chairman, I'd like to ask you about words we

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Speaker 4: heard from another Senate Chairman, Lindsay Graham of the Budget Committee,

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Speaker 4: who suggested in an interview today that this package may

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Speaker 4: end up needing to be broken up in different parts

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Speaker 4: after all, which of course was the original plan of

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Speaker 4: the Majority Leader John Thune. Is it acceptable to you?

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Speaker 4: Do you think it would be acceptable for the President

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Speaker 4: to not get his entire legislative agenda done in one

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Speaker 4: single beautiful bill.

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Speaker 3: Listen.

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Speaker 1: I think we're going to get it done, and it

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Speaker 1: early on I advocated for doing it in two bills.

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Speaker 1: I would have been certainly supportive of that. But we're

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Speaker 1: going to get this bill accomplished. And the reason is,

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Speaker 1: I think the stakes of failure are too high. If

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Speaker 1: Congress does not act by December thirty. First, there's an

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Speaker 1: automatic four trillion dollar tax increase that will hurt every

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Speaker 1: working family in America, that will hurt every small business

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Speaker 1: in America. And that's an outcome that the Democrats are

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Speaker 1: quite happy with. But there's not a single Republican in

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Speaker 1: the House or Senate who wants that to happen.

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Speaker 3: So is it going to be complicated?

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Speaker 1: Yes, are there a million trade offs, yets, But we're

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Speaker 1: going to get it done. And you know, look, I'll

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Speaker 1: reflect back to twenty seventeen, the last big tax cut

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Speaker 1: we passed under President Trump. I spent hundreds of hours

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Speaker 1: in twenty seventeen negotiating provisions in that bill.

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Speaker 3: And if you look at how that bill came.

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Speaker 1: To pass, the House passed a good bill, it went

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Speaker 1: to the Senate, the Senate made it substantially better, and

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Speaker 1: then we went to conference committee and it got better

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Speaker 1: as well. My hope is the same thing happens this time.

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Speaker 1: I'd like to see the Senate be bigger and bolder.

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Speaker 1: I'd like to see us have more fiscal responsibility and

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Speaker 1: cut unnecessary waste and fraud and abuse. And so that's

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Speaker 1: certainly what I'm urging my colleagues in the Senate to do.

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Speaker 3: Well.

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Speaker 4: And you'd like to see Trump savings accounts for newborn's

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Speaker 4: become a reality. That, of course was your brainchild, Senator.

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Speaker 4: The law stipulates the baby must be a United States

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Speaker 4: citizen at birth, and I wonder what assumptions you are

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Speaker 4: making about the status of birthright citizenship here.

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Speaker 1: Well, look, this particular provision doesn't resolve that. It just

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Speaker 1: relies on US law, and so right now, US law

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Speaker 1: confers citizenship on birth. I think birthright citizenship is a

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Speaker 1: policy that doesn't make sense because it encourages illegal immigration.

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Speaker 1: So I've long advocated for changing that policy. But this

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Speaker 1: bill is an economic bill, so it's not purporting to

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Speaker 1: resolve immigration questions. What this bill is doing and I'm

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Speaker 1: proud to have introduced it and to be fighting for it.

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Speaker 1: It's in the bill, it's going to be enacted. This

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Speaker 1: will create an investment account for every child in America

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Speaker 1: and newborn children.

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Speaker 3: Newborn children born.

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Speaker 1: This year would receive one thousand dollars to see that account.

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Speaker 1: And then each year, parents and family and employers would

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Speaker 1: be able to contribute up to five thousand a year

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Speaker 1: in a tax advantaged account. That money would grow and

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Speaker 1: it would be invested in the stock market in the

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Speaker 1: s and P. Five hundred, and if you assume, let's

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Speaker 1: assume a little girl little boy born this year has

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Speaker 1: one thousand dollars and then has five thousand dollars invested

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Speaker 1: each year. If you assume historic rates of growth of

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Speaker 1: the s and P. Five hundred, that little baby, by

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Speaker 1: the time here she turns eighteen would have one hundred

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Speaker 1: and seventy thousand dollars in their account. If they kept

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Speaker 1: on investing five thousand a year, by the time they

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Speaker 1: turned thirty five, they would have seven hundred thousand dollars

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Speaker 1: in that account. And that's for every child in America.

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Speaker 1: That is a really powerful way to enable every child

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Speaker 1: to have the benefits of compound growth.

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Speaker 2: Senator, I want to go to la with you for

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Speaker 2: a moment here, because i know you're very sensitive to

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Speaker 2: constitutional law, and I'm sure you have very strong feelings

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Speaker 2: about some of the things that we've seen on the

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Speaker 2: streets of America's second largest city over the past four days.

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Speaker 2: We received a statement from the Chief of Police LAPD

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Speaker 2: Chief Jim McDonnell responding to the possible deployment of Marines,

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Speaker 2: which now, of course, has happened. We've got seven hundred

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Speaker 2: deployed from Camp Pendleton. He starts by writing, the LAPD

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Speaker 2: has not received any formal notification the Marines will be arriving. However,

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Speaker 2: their arrival of federal military forces in Los Angeles, absent

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Speaker 2: clear coordination, presents a significant logistical and operational challenge for

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Speaker 2: those of us charged with safeguarding this city. Is what

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Speaker 2: the President is doing right now fair to the police

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Speaker 2: in Los Angeles.

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Speaker 1: Well, listen, what is not fair to the police in

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Speaker 1: Los Angeles is the actions of Karen Bass, the Democrat mayor,

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Speaker 1: and the actions of Gavin Newsom, the Democrat governor. What

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Speaker 1: we're seeing in La is horrific. We're seeing violent riots

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Speaker 1: that are breaking out and spilling on day after day

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Speaker 1: after day.

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Speaker 3: We're seeing police cars firebombed.

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Speaker 1: We're seeing protesters protesting against the enforcement of federal immigration law.

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Speaker 3: And I got to say, it is a bizarre.

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Speaker 1: Image to see protesters who say, do not enforce immigration law.

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Speaker 1: We want to be here illegally. To see them waving

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Speaker 1: Mexican flags for the proposition, don't you dare back dare

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Speaker 1: send us back to the country whose flag we're waving.

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Speaker 3: That makes no sense.

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Speaker 1: And whether the troops are deployed though, well, look, the

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Speaker 1: problem we've seen in places like La is the cops.

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Speaker 3: And I think I.

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Speaker 1: Support law enforcement and the police, but unfortunately today's Democrats

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Speaker 1: do not. When they are given a choice between siding

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Speaker 1: with illegal immigrants or Venezuelan and gang members or violent criminals,

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Speaker 1: or siding with the police, Today's Democrats do what Gavin

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Speaker 1: Newsom does, which is he's suing the Trump administration saying

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Speaker 1: do not enforce law and order, do not protect our citizens.

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Speaker 3: I gotta say that's backwards.

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Speaker 1: I think we ought to be keeping our cities safe

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Speaker 1: and that should be regardless of the circumstance.

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Speaker 3: Answers. We should be against violence, but should.

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Speaker 4: We be against states rights? Senator? Is that not something

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Speaker 4: you stand for? Does this not risk setting a dangerous

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Speaker 4: president of the federal government coming in and overtaking the

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Speaker 4: will of an individual state.

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Speaker 1: You know what, there's a long tradition when you have

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Speaker 1: local politicians who are lawless, who are defying federal law.

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Speaker 1: The federal government has the authority and has an obligation

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Speaker 1: to enforce federal law. Look, you saw when you had

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Speaker 1: Southern Democrat governors in the civil rights movement resist integrating schools,

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Speaker 1: saying we are not going to allow African American children

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Speaker 1: in our schools. You saw President Dwight D. Eisenhower send

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Speaker 1: in the National Guard and say you are going to

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Speaker 1: follow federal law and you don't have the right to

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Speaker 1: defy federal law.

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Speaker 3: Well, the new.

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Speaker 1: The new massive resistance Democrats are now fighting against federal

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Speaker 1: immigration law. The federal government has a responsibility to keep

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Speaker 1: the American people safe. And I got to say, we're

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Speaker 1: seeing a replay of what happened during the Black Lives

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Speaker 1: Matter and Antifa riots where Democrat politicians prevented the police

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Speaker 1: from protecting their citizens and allowed people to be murdered,

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Speaker 1: allowed stores to be looted, and allowed police to be assaulted.

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Speaker 1: And so I'm glad President Trump is stepping forward saying

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Speaker 1: we're going to keep you safe from violence on the streets.

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Speaker 4: Well, when we consider what he's keeping Americans sefe from Senator,

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Speaker 4: there's a difference between resistance and insurrection. And the President

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Speaker 4: today did not rule out invoking the Insurrection Act.

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Speaker 2: Should he?

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Speaker 1: Well, look, that'll be a question that will depend on

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Speaker 1: the circumstances. But I got to tell you the problem

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Speaker 1: is made worse when you have Democrat mayors and governors

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Speaker 1: that refuse to enforce the law. And that's what we're

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Speaker 1: seeing in California. If you break the law, if you

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Speaker 1: commit acts of violence, you should be arrested. And these

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Speaker 1: are lawless protests in support of further lawlessness.

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Speaker 3: Why are they mad?

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Speaker 1: They're mad because President Trump is deporting illegal immigrants, because

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Speaker 1: he's deporting Venezuelan gang members and murderers and child rapists.

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Speaker 1: And I don't get the Democrats calculus when they look

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Speaker 1: at that and say, you know what America needs. We

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Speaker 1: need more MS thirteen members, we need more human traffickers

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Speaker 1: and criminals. I think the vast majority of Americans don't

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Speaker 1: agree with that.

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Speaker 4: All right, Senator, we appreciate your time. Republican Senator Ted

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Speaker 4: Cruz of Texas, of course, the chair of the Senate

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Speaker 4: Commerce Committee, here with us on Bloomberg TV and radio