1 00:00:00,240 --> 00:00:04,040 Speaker 1: Well, the US Treasury Department has announced something that's truly incredible. 2 00:00:04,160 --> 00:00:07,600 Speaker 1: They have intercepted nearly ninety nine million dollars of your 3 00:00:07,680 --> 00:00:11,119 Speaker 1: tax dollars in federal payments that were about to go 4 00:00:11,240 --> 00:00:15,440 Speaker 1: out to dead people. Yes, to ceize individuals. They were 5 00:00:15,480 --> 00:00:17,840 Speaker 1: going to get ninety nine million dollars. Not to be clear, 6 00:00:17,880 --> 00:00:19,639 Speaker 1: it's not like the money like went to them and 7 00:00:19,640 --> 00:00:20,840 Speaker 1: they didn't cast the checks. 8 00:00:21,320 --> 00:00:22,000 Speaker 2: It's fraud. 9 00:00:22,520 --> 00:00:24,520 Speaker 1: It was about to go out to the individuals that 10 00:00:24,560 --> 00:00:29,160 Speaker 1: are dead, but people that are alive are cashing the checks. Now, 11 00:00:29,200 --> 00:00:34,440 Speaker 1: that's almost one hundred million dollars of your money that 12 00:00:34,640 --> 00:00:38,600 Speaker 1: was stopped before it ever left the treasury. Why did 13 00:00:38,600 --> 00:00:42,360 Speaker 1: this happen, Well, it's simple because of a new verification 14 00:00:42,680 --> 00:00:48,120 Speaker 1: system that flagged the recipients as dead. Now, this effort 15 00:00:48,320 --> 00:00:52,760 Speaker 1: also stems directly from President Donald Trump's executive order. It 16 00:00:52,840 --> 00:00:57,960 Speaker 1: directed federal agencies to strengthen payment verification and crack down 17 00:00:57,960 --> 00:01:01,560 Speaker 1: on fraud across the government. Now, under that order, the 18 00:01:01,600 --> 00:01:06,680 Speaker 1: Treasury Department's Bureau of the Fiscal Service implemented a government 19 00:01:06,720 --> 00:01:11,720 Speaker 1: wide screening process before the payments could actually be issued. Right, 20 00:01:11,800 --> 00:01:15,440 Speaker 1: what a novel idea. Well, now we're getting the data 21 00:01:15,480 --> 00:01:19,120 Speaker 1: back from this new initiative, and the numbers, well, they're staggering. 22 00:01:19,680 --> 00:01:22,880 Speaker 1: The Treasury Department reviewed more than eight hundred and eighty 23 00:01:23,000 --> 00:01:24,800 Speaker 1: five million federal payments. 24 00:01:24,920 --> 00:01:26,319 Speaker 2: I want you to just think about that number. 25 00:01:26,880 --> 00:01:32,039 Speaker 1: Eight hundred and eighty five million federal payments. Now, that 26 00:01:32,200 --> 00:01:37,280 Speaker 1: totaled two point seven seven trillion dollars. Again, this is 27 00:01:37,319 --> 00:01:40,319 Speaker 1: how much waste there is in our government. We're given 28 00:01:40,400 --> 00:01:44,520 Speaker 1: out two point seven seven trillion in tax dollars. Now, 29 00:01:44,600 --> 00:01:48,760 Speaker 1: during the review, officials identified more than what they described 30 00:01:49,480 --> 00:01:53,640 Speaker 1: is four thousand, nine hundred payments worth nearly one hundred 31 00:01:53,720 --> 00:01:59,200 Speaker 1: million that were associated directly with deceased recipients. Now, instead 32 00:01:59,200 --> 00:02:02,160 Speaker 1: of allowing these payments to go out the door, not 33 00:02:02,240 --> 00:02:06,160 Speaker 1: only were they flagged and returned to the originating agencies 34 00:02:06,480 --> 00:02:10,200 Speaker 1: for review. This is how the government should work now, 35 00:02:10,240 --> 00:02:14,120 Speaker 1: The Treasury Secretary, Scott Bessen, says, this is just the beginning. 36 00:02:14,680 --> 00:02:18,639 Speaker 1: According to Treasury Secretary, there's more bad news coming now. 37 00:02:18,639 --> 00:02:22,400 Speaker 1: The department believes it can prevent roughly three hundred and 38 00:02:22,520 --> 00:02:26,320 Speaker 1: fifty million in improper payments by the end of the year, 39 00:02:26,919 --> 00:02:29,760 Speaker 1: so we're barely at the tip of the iceberg. He 40 00:02:29,840 --> 00:02:34,800 Speaker 1: also pointed to Government Accountability Office estimates that are now 41 00:02:34,880 --> 00:02:41,080 Speaker 1: suggesting that improper federal payments across government programs could total 42 00:02:41,120 --> 00:02:46,440 Speaker 1: as much as five hundred billion annually, not in total 43 00:02:47,400 --> 00:02:52,600 Speaker 1: annual fraud of five hundred billion dollars a year. That 44 00:02:52,680 --> 00:02:55,320 Speaker 1: means an essence, you're being over taxed by five hundred 45 00:02:55,320 --> 00:02:58,919 Speaker 1: billion dollars and the money's being stolen, and we shouldn't 46 00:02:58,960 --> 00:03:02,240 Speaker 1: have to pay that much taxes is another way to 47 00:03:02,280 --> 00:03:07,200 Speaker 1: look at this. Now, half a trillion dollars and improper payments. 48 00:03:07,639 --> 00:03:10,360 Speaker 1: That is money that adds up, and that is money 49 00:03:10,360 --> 00:03:14,200 Speaker 1: that could also otherwise be used to reduce our deficit 50 00:03:14,320 --> 00:03:17,880 Speaker 1: in a major way. The money could also be used 51 00:03:17,880 --> 00:03:21,600 Speaker 1: to actually serve Americans or like I said a moment ago, 52 00:03:21,760 --> 00:03:25,239 Speaker 1: what a brilliant idea give five hundred billion back annually 53 00:03:25,320 --> 00:03:29,440 Speaker 1: to the tax payers. Now, it's important to understand what 54 00:03:29,480 --> 00:03:33,040 Speaker 1: this announcement actually does and does not do. Now, the 55 00:03:33,080 --> 00:03:37,000 Speaker 1: Treasury says these payments were identified because they were associated 56 00:03:37,040 --> 00:03:41,840 Speaker 1: with dead payees or the official government term deceased payees. 57 00:03:42,360 --> 00:03:45,640 Speaker 1: The announcement, they say, does not establish that every flag 58 00:03:45,720 --> 00:03:51,360 Speaker 1: payment represented intentional criminal fraud. They say some improper payments 59 00:03:51,440 --> 00:03:55,560 Speaker 1: can result from outdated records or even administrative errors or 60 00:03:55,600 --> 00:03:59,760 Speaker 1: delays and agencies updating death information. And they said, that's 61 00:03:59,760 --> 00:04:02,840 Speaker 1: why why the payments are being returned to the originating 62 00:04:02,960 --> 00:04:08,040 Speaker 1: agency for investigation rather than automatically being labeled criminal fraud. 63 00:04:08,800 --> 00:04:10,600 Speaker 2: Now, what changes is this? 64 00:04:11,360 --> 00:04:14,320 Speaker 1: The government's ability to catch these payments before the money 65 00:04:14,400 --> 00:04:17,799 Speaker 1: left the treasury is massive, and it's something that actually 66 00:04:17,800 --> 00:04:21,960 Speaker 1: should have happened a long time ago. That capability has 67 00:04:22,000 --> 00:04:25,920 Speaker 1: only been strengthened this year because of the expanded use 68 00:04:25,960 --> 00:04:29,160 Speaker 1: of the treasuries quote do not pay system, and then 69 00:04:29,160 --> 00:04:34,719 Speaker 1: their permanent access to Social Security Administration's full Death master list. 70 00:04:35,320 --> 00:04:39,039 Speaker 1: Now that gives agencies a much more complete database of 71 00:04:39,160 --> 00:04:43,240 Speaker 1: reported deaths than was previously ever had Again, welcome to 72 00:04:43,320 --> 00:04:44,440 Speaker 1: Washington bureaucracy. 73 00:04:45,000 --> 00:04:45,200 Speaker 2: Now. 74 00:04:45,279 --> 00:04:49,960 Speaker 1: Congress earlier this year made that access permanent through the 75 00:04:50,080 --> 00:04:53,960 Speaker 1: Ending and Proper Payments to Decease People Act. It allowed 76 00:04:53,960 --> 00:04:58,440 Speaker 1: the Treasury to continue using those records to screen payments. 77 00:04:58,760 --> 00:05:01,159 Speaker 1: In other words, if you're dead, you shouldn't be getting 78 00:05:01,200 --> 00:05:05,800 Speaker 1: government cheese now. The Treasury had also previously demonstrated the 79 00:05:05,880 --> 00:05:09,480 Speaker 1: value of this approach during a pilot program that prevented 80 00:05:09,560 --> 00:05:13,800 Speaker 1: and recovered tens of millions of dollars and improper payments instantly. 81 00:05:14,480 --> 00:05:17,160 Speaker 1: Officials have argued for years by the way that brought 82 00:05:17,160 --> 00:05:21,119 Speaker 1: her access to the complete death records from the Social 83 00:05:21,120 --> 00:05:27,839 Speaker 1: Security Administration would dramatically improve payment integrity. Yet Democrats fought 84 00:05:27,839 --> 00:05:29,240 Speaker 1: it every step of the way. 85 00:05:29,600 --> 00:05:31,200 Speaker 2: I wonder why now. 86 00:05:31,240 --> 00:05:35,160 Speaker 1: This also illustrates a broader shift inside the federal government 87 00:05:35,200 --> 00:05:39,240 Speaker 1: as well. Rather than waiting for inspector generals, for auditors 88 00:05:39,279 --> 00:05:43,040 Speaker 1: to discover problems for months and then years later when 89 00:05:43,040 --> 00:05:46,240 Speaker 1: they come forward, what the Treasury Department is doing is 90 00:05:46,279 --> 00:05:50,880 Speaker 1: they're saying, hey, we're trying to stop questionable payments before 91 00:05:50,960 --> 00:05:53,840 Speaker 1: they go out, instead of trying to find the money 92 00:05:54,160 --> 00:05:58,840 Speaker 1: after it's already been stolen. That is a fundamentally different approach. 93 00:05:59,279 --> 00:06:03,200 Speaker 1: And now, instead of well giving bad news to taxpayers, 94 00:06:03,760 --> 00:06:06,960 Speaker 1: the government is actually protecting taxpayer dollars. 95 00:06:07,560 --> 00:06:09,200 Speaker 2: Now, whether you are a. 96 00:06:09,160 --> 00:06:15,520 Speaker 1: Republican or a Democrat, most pollings say that Americans they 97 00:06:15,560 --> 00:06:19,839 Speaker 1: agree with one thing. Taxpayer money shouldn't be going to 98 00:06:19,920 --> 00:06:24,800 Speaker 1: people who are literally dead, And nearly ninety nine million 99 00:06:25,120 --> 00:06:27,320 Speaker 1: has now been stopped before it went out the door. 100 00:06:27,839 --> 00:06:30,680 Speaker 1: You want to know who's mad about this? The Democratic 101 00:06:30,760 --> 00:06:34,880 Speaker 1: Party in the media. But the good news is most 102 00:06:34,960 --> 00:06:39,600 Speaker 1: taxpayers understand that this is a big reminder that even 103 00:06:39,720 --> 00:06:45,600 Speaker 1: small improvements in government payment systems can translate into significant savings, 104 00:06:46,040 --> 00:06:50,680 Speaker 1: and that efforts to modernize fraud and detection AI is 105 00:06:50,720 --> 00:06:54,520 Speaker 1: a great example of this, are likely to remain major 106 00:06:54,600 --> 00:06:58,919 Speaker 1: focuses in Washington of the Trump administration because, as Donald 107 00:06:58,920 --> 00:07:02,360 Speaker 1: Trump put it, this is your tax dollars being stolen 108 00:07:02,520 --> 00:07:05,039 Speaker 1: from you, and you should be mad as hell. 109 00:07:05,560 --> 00:07:05,760 Speaker 2: Now. 110 00:07:05,800 --> 00:07:08,760 Speaker 1: I also want to get to another story, and that 111 00:07:08,960 --> 00:07:12,679 Speaker 1: is this RFK Junior is also getting in the fraud 112 00:07:12,800 --> 00:07:15,640 Speaker 1: game in a big way to stop it. In fact, 113 00:07:15,840 --> 00:07:19,160 Speaker 1: in a big announcement, the Health and Human Services Secretary 114 00:07:19,680 --> 00:07:24,600 Speaker 1: RFK Junior announced Tuesday that the Trump administration is deferring 115 00:07:25,000 --> 00:07:29,120 Speaker 1: more than one billion in medicaid payments to Democratic led 116 00:07:29,200 --> 00:07:34,360 Speaker 1: California and Minnesota over high risk claims flagged in a 117 00:07:34,520 --> 00:07:38,760 Speaker 1: crackdown on fraud. Take a listen to what RFK Junior 118 00:07:38,880 --> 00:07:39,720 Speaker 1: had to say. 119 00:07:40,000 --> 00:07:44,559 Speaker 3: And over two hundred million dollars for Minnesota. If those 120 00:07:44,600 --> 00:07:49,160 Speaker 3: states want that money, they need to provide documentation that 121 00:07:49,240 --> 00:07:56,200 Speaker 3: these payments are legitimate. Traditional financial verification, we use AI, 122 00:07:57,200 --> 00:08:03,640 Speaker 3: advanced analytics, and another cutting tools to identify suspicious activity 123 00:08:03,680 --> 00:08:08,320 Speaker 3: and potential fraud. In Minnesota, the funding involves fourteen high 124 00:08:08,440 --> 00:08:14,400 Speaker 3: risk areas in Minnesota's own legislative auditor as identified as 125 00:08:14,480 --> 00:08:20,840 Speaker 3: especially vulnerable to fraud. In California, we suspect much of 126 00:08:20,880 --> 00:08:24,520 Speaker 3: the questionable spending involves in home services. 127 00:08:25,400 --> 00:08:27,680 Speaker 2: And second, I'm pleased. 128 00:08:27,320 --> 00:08:30,840 Speaker 3: To announce that another significant step forward and the Trump 129 00:08:31,160 --> 00:08:37,559 Speaker 3: Administration's battle to end fraud under my authority is AHHS Secretary. 130 00:08:38,600 --> 00:08:44,600 Speaker 3: We are expanding the exclusion authority alto CMS, and the 131 00:08:44,640 --> 00:08:47,760 Speaker 3: Office of Inspector General will be able to use that 132 00:08:47,880 --> 00:08:52,120 Speaker 3: authority to remove bad actors from federal health care programs 133 00:08:52,160 --> 00:08:55,480 Speaker 3: and in many cases, to permanently ban them from returning. 134 00:08:56,640 --> 00:09:04,559 Speaker 3: Unlike Medicare, estates control Medicaid funding and they provide the guardrails. 135 00:09:05,280 --> 00:09:08,400 Speaker 3: We provide the funding. The states are responsible about for 136 00:09:08,480 --> 00:09:12,160 Speaker 3: how they spend it, and by law, they must document 137 00:09:12,480 --> 00:09:16,480 Speaker 3: how they spend federal dollars. And we have reasona believe 138 00:09:16,920 --> 00:09:22,160 Speaker 3: that taxpayer money is being misused, especially through fraud. We 139 00:09:22,240 --> 00:09:25,959 Speaker 3: have a duty to stop the payments, demand answers, and 140 00:09:26,040 --> 00:09:30,040 Speaker 3: then follow the evidence wherever it leads. If Governor Kevin 141 00:09:30,120 --> 00:09:34,599 Speaker 3: Newson or Governor wants this funding release. All they have 142 00:09:34,720 --> 00:09:39,920 Speaker 3: to do is fight basic documentation showing that these services 143 00:09:39,920 --> 00:09:43,760 Speaker 3: are legitimate and not fraudulent. And that's common sense. 144 00:09:45,280 --> 00:09:47,880 Speaker 1: Not only is it common sense, but the Senators for 145 00:09:48,000 --> 00:09:53,360 Speaker 1: Medicare and Medicaid Services CMS holding back this eight hundred 146 00:09:53,400 --> 00:09:57,000 Speaker 1: and sixty nine point seven million from California and then 147 00:09:57,040 --> 00:10:00,480 Speaker 1: one hundred and ninety nine million from Minnesota, and they say, 148 00:10:00,640 --> 00:10:05,360 Speaker 1: this is very simple. This is again being deferred, not cut, 149 00:10:05,800 --> 00:10:10,240 Speaker 1: and both the states can actually be honest. All they 150 00:10:10,240 --> 00:10:15,160 Speaker 1: have to do is documenting the claims meet the federal 151 00:10:15,200 --> 00:10:20,000 Speaker 1: Medicaid requirements, the guidelines, and if you do that, you 152 00:10:20,160 --> 00:10:22,920 Speaker 1: get the money. But what we also know from this 153 00:10:23,040 --> 00:10:28,320 Speaker 1: press conference is the Governor Gavenusom and Governor Tim Waltz Well, 154 00:10:28,760 --> 00:10:33,240 Speaker 1: they're saying no, they're saying, we believe what we're doing 155 00:10:33,360 --> 00:10:36,400 Speaker 1: is fine, and we're not going to play the game. 156 00:10:36,720 --> 00:10:39,880 Speaker 1: And now you know why the actual payments are not 157 00:10:40,080 --> 00:10:46,160 Speaker 1: going The CMS administrator, Doctor Oz also said CMS is 158 00:10:46,280 --> 00:10:50,160 Speaker 1: done trying to chase down stolen and mischuse funds after 159 00:10:50,200 --> 00:10:54,760 Speaker 1: they've already left the building, before the check clears. We 160 00:10:54,840 --> 00:11:00,160 Speaker 1: are delivering recordized savings for the tax payers. So I 161 00:11:00,200 --> 00:11:02,240 Speaker 1: want you to hear more of what doctor Odds had 162 00:11:02,240 --> 00:11:03,240 Speaker 1: to say as well. 163 00:11:03,480 --> 00:11:06,400 Speaker 4: Today we are calling on two states because this is 164 00:11:06,440 --> 00:11:07,040 Speaker 4: a partnership. 165 00:11:07,080 --> 00:11:08,000 Speaker 2: We need states involved. 166 00:11:08,040 --> 00:11:10,440 Speaker 4: But there are two states in particular today there we 167 00:11:10,480 --> 00:11:13,240 Speaker 4: have concerns about California and Minnesota. We want them to 168 00:11:13,280 --> 00:11:16,760 Speaker 4: come alongside US federal partners to ensure that Medicaid dollars 169 00:11:16,840 --> 00:11:19,440 Speaker 4: go to the services that are required by real people 170 00:11:19,520 --> 00:11:21,280 Speaker 4: with real problems getting real care. 171 00:11:21,559 --> 00:11:22,800 Speaker 2: Almost have to fit together. 172 00:11:23,160 --> 00:11:26,520 Speaker 4: We have been covered, unfortunately already in the last eighteen months, 173 00:11:26,559 --> 00:11:29,600 Speaker 4: billions of dollars that have been stolen from the American people, 174 00:11:29,679 --> 00:11:32,840 Speaker 4: taxpayers and from patients who often have lost their health 175 00:11:32,840 --> 00:11:36,040 Speaker 4: their lives in these scandals, and those have only been 176 00:11:36,120 --> 00:11:38,839 Speaker 4: used those funds to pad the pockets of criminals. 177 00:11:39,040 --> 00:11:42,360 Speaker 2: No mus no more. It stops. Every quarter. 178 00:11:42,400 --> 00:11:44,480 Speaker 4: For years, CMS has asked states to show us the 179 00:11:44,520 --> 00:11:47,320 Speaker 4: receipts for their expenditures. In this administration, we took them 180 00:11:47,360 --> 00:11:49,840 Speaker 4: to another level. We asked them to focus on targeted 181 00:11:49,920 --> 00:11:53,160 Speaker 4: high risk services. Services that are often provided by your family, 182 00:11:53,400 --> 00:11:57,920 Speaker 4: often provided by unlicensed individuals and unsupervised settings doing things 183 00:11:57,920 --> 00:12:00,240 Speaker 4: that we couldn't tell if they were actually happening. Those 184 00:12:00,280 --> 00:12:03,640 Speaker 4: services because I risk demand that we're more thoughtful, more 185 00:12:04,520 --> 00:12:07,160 Speaker 4: insightful about how we audit them and decide that they're 186 00:12:07,200 --> 00:12:09,800 Speaker 4: legitimate or not. These are the areas where the data 187 00:12:10,160 --> 00:12:13,240 Speaker 4: tells us that there is fraud and waste and they're 188 00:12:13,280 --> 00:12:16,160 Speaker 4: likely to occur. They do occur, and we're identifying it 189 00:12:16,200 --> 00:12:19,920 Speaker 4: with unfortunate ease in the system. When there are signature 190 00:12:20,080 --> 00:12:23,960 Speaker 4: and significant outliers, patterns that we've identified, anomalies that seem 191 00:12:24,040 --> 00:12:27,280 Speaker 4: to happen again and again and again, federal law mandates 192 00:12:27,640 --> 00:12:30,640 Speaker 4: requires us to pause that funding so that the states 193 00:12:30,640 --> 00:12:33,640 Speaker 4: fixed the problems. That is a story behind today's announcements 194 00:12:33,880 --> 00:12:35,360 Speaker 4: in Minnesota and California. 195 00:12:35,400 --> 00:12:36,240 Speaker 2: Our reviews are. 196 00:12:36,080 --> 00:12:39,080 Speaker 4: Going back just over the last few years turn up 197 00:12:39,080 --> 00:12:42,240 Speaker 4: the same recurring theme again and again every single quarter. 198 00:12:42,520 --> 00:12:45,480 Speaker 4: Claims in these same high risk categories that the states 199 00:12:45,520 --> 00:12:48,880 Speaker 4: have not yet been able to document fully and acceptably 200 00:12:48,880 --> 00:12:52,160 Speaker 4: to the federal government, Claims that are unresolved and flame, 201 00:12:52,760 --> 00:12:57,400 Speaker 4: claims that smell like fraud, and if it smells like fraud. 202 00:12:57,160 --> 00:12:58,520 Speaker 2: We're not paying for it anymore. 203 00:12:58,720 --> 00:13:02,760 Speaker 4: Today we are deferring over one billion dollars in federal 204 00:13:02,800 --> 00:13:08,280 Speaker 4: Medicaid dollars. One billion dollars to Minnesota in California until 205 00:13:08,440 --> 00:13:11,920 Speaker 4: they can substantiate their claims from this past quarter of audits. 206 00:13:12,400 --> 00:13:15,880 Speaker 1: So there it is the President getting the right people, 207 00:13:16,360 --> 00:13:19,880 Speaker 1: having them go after the waste, fraud, and abuse, saving 208 00:13:19,960 --> 00:13:25,960 Speaker 1: American taxpayers hundreds of billions of dollars, and doing it 209 00:13:26,080 --> 00:13:30,959 Speaker 1: because Democrats refuse to do their job to protect your 210 00:13:31,000 --> 00:13:36,000 Speaker 1: dollars before they send them out. For years, we've been 211 00:13:36,040 --> 00:13:39,280 Speaker 1: talking about artificial intelligence, and we've been talking about the 212 00:13:39,320 --> 00:13:42,599 Speaker 1: fact that there is a major AI race in the world. 213 00:13:42,920 --> 00:13:47,280 Speaker 1: The CCP, you know, Chinese Communist Party. They want to 214 00:13:47,320 --> 00:13:51,560 Speaker 1: control AI so that they can control what AI gives 215 00:13:51,600 --> 00:13:54,880 Speaker 1: you in response to your questions. And then there's the 216 00:13:54,920 --> 00:13:59,640 Speaker 1: other side, true freedom, freedom of expression, freedom of ideas 217 00:14:00,080 --> 00:14:03,600 Speaker 1: America stands for. And yes, we are in a race 218 00:14:03,800 --> 00:14:07,800 Speaker 1: with China right now. There's also other questions that come 219 00:14:07,880 --> 00:14:11,280 Speaker 1: up with AI. For example, can you make fun of 220 00:14:11,360 --> 00:14:15,559 Speaker 1: people and satire and fake videos and humor or does 221 00:14:15,600 --> 00:14:18,600 Speaker 1: that cross the line? And what about you or a 222 00:14:18,640 --> 00:14:22,760 Speaker 1: celebrity when it comes to the issue of name and likeness, 223 00:14:22,840 --> 00:14:24,359 Speaker 1: what about if someone uses. 224 00:14:24,120 --> 00:14:27,200 Speaker 2: Your voice with AI? Should you get paid for that? 225 00:14:27,760 --> 00:14:30,720 Speaker 1: And well, those are all questions that are being argued 226 00:14:30,840 --> 00:14:33,600 Speaker 1: and debated right now at the highest levels. In fact, 227 00:14:33,720 --> 00:14:37,240 Speaker 1: they happen this week in the of Office. Senter Ted 228 00:14:37,360 --> 00:14:40,520 Speaker 1: Cruz was there talking about the latest AI bills with 229 00:14:40,600 --> 00:14:44,080 Speaker 1: the President and others that are looking to get these 230 00:14:44,120 --> 00:14:45,400 Speaker 1: types of bills done. 231 00:14:46,000 --> 00:14:47,560 Speaker 2: So what does it mean for you? 232 00:14:47,920 --> 00:14:51,720 Speaker 1: Well, lawmakers are trying to debate what biparts and legislation 233 00:14:51,840 --> 00:14:55,080 Speaker 1: want to even look like. And how do you create 234 00:14:55,320 --> 00:15:00,440 Speaker 1: nationwide protections against AI generated digital replicas? Yeah, that is 235 00:15:00,520 --> 00:15:03,800 Speaker 1: known as well No Fake Act. It's an important bill. 236 00:15:04,400 --> 00:15:08,080 Speaker 1: There's also other things like AI generated versions of your 237 00:15:08,160 --> 00:15:10,960 Speaker 1: voice and your likeness. Can they do it with or 238 00:15:10,960 --> 00:15:13,440 Speaker 1: without your permission? And should there be a bill to 239 00:15:13,520 --> 00:15:17,800 Speaker 1: protect you? What about musicians? Well, there's other bills designed 240 00:15:17,840 --> 00:15:22,320 Speaker 1: to protect those stolen identity or even their lyrics. And 241 00:15:22,360 --> 00:15:26,000 Speaker 1: that is exactly why there's such a grand debate right now. 242 00:15:26,440 --> 00:15:29,800 Speaker 1: Senator Cruz and I talked about this and what was 243 00:15:29,840 --> 00:15:31,280 Speaker 1: said in the Oval Office. 244 00:15:31,360 --> 00:15:33,800 Speaker 2: Take a listen. That's incredible you went. 245 00:15:33,920 --> 00:15:37,440 Speaker 1: So you went from that back to DC straight to 246 00:15:37,480 --> 00:15:40,440 Speaker 1: the Oval Monday morning. Yeah, for a very interesting meeting 247 00:15:40,480 --> 00:15:43,080 Speaker 1: on AI at the White House. Talk about that a 248 00:15:43,080 --> 00:15:43,520 Speaker 1: little bit. 249 00:15:44,160 --> 00:15:47,320 Speaker 5: Yeah, So I took Amtrak again came from Manhattan down 250 00:15:47,320 --> 00:15:49,880 Speaker 5: to DC on Monday, and then I had a meeting 251 00:15:49,880 --> 00:15:50,880 Speaker 5: at the Oval Monday. 252 00:15:50,840 --> 00:15:51,760 Speaker 2: And by the way, that is. 253 00:15:51,720 --> 00:15:53,760 Speaker 1: What we call welcome back to your real life when 254 00:15:53,800 --> 00:15:56,560 Speaker 1: you go from the World Cup Drew Barrymore to Amtrak 255 00:15:56,640 --> 00:16:00,680 Speaker 1: to DC. I just that's an interesting step down really quick. 256 00:16:00,720 --> 00:16:03,120 Speaker 1: And that's probably got on purpose doing that, but keep going, 257 00:16:03,160 --> 00:16:03,960 Speaker 1: oh yeah. 258 00:16:03,720 --> 00:16:06,360 Speaker 5: Yeah, look look it was. And so the meeting in 259 00:16:06,400 --> 00:16:09,640 Speaker 5: the Oval, I was with the President. I was with 260 00:16:10,680 --> 00:16:13,720 Speaker 5: Marsha Blackburn, Senator from Tennessee, and I was with Scott 261 00:16:13,760 --> 00:16:15,880 Speaker 5: Bess at the Treasury Secretary, and Kevin Hasset at the 262 00:16:15,920 --> 00:16:18,600 Speaker 5: head of the National Economic Council, and several other members 263 00:16:18,640 --> 00:16:21,320 Speaker 5: of the White House staff. And we were talking about 264 00:16:21,320 --> 00:16:26,560 Speaker 5: aire artificial intelligence, and it was a discussion about what 265 00:16:26,600 --> 00:16:29,720 Speaker 5: to do about it. And listen, Marcia has a package 266 00:16:29,720 --> 00:16:33,360 Speaker 5: of bills that she's pitching and and it's a package 267 00:16:33,360 --> 00:16:38,080 Speaker 5: of bills. It's kids safety bills, it's requiring app stores 268 00:16:38,160 --> 00:16:43,400 Speaker 5: to verify ages. It's a bill called no Fakes, which 269 00:16:43,440 --> 00:16:47,560 Speaker 5: which deals with preventing people from from pirting and competing 270 00:16:47,680 --> 00:16:53,200 Speaker 5: copying people's voices and images. And so she was pitching 271 00:16:53,200 --> 00:16:57,240 Speaker 5: to the President, you should support my package of bills. 272 00:16:57,240 --> 00:17:01,400 Speaker 5: And I'm chairman of the Senate Committee on Commerce, Science, Transportation, 273 00:17:01,480 --> 00:17:04,880 Speaker 5: which has jurisdiction over a ton of stuff, including AI, 274 00:17:05,640 --> 00:17:07,159 Speaker 5: and so we're going to have a mark up in 275 00:17:07,200 --> 00:17:09,240 Speaker 5: the next couple of weeks on a bunch of AI bills, 276 00:17:10,200 --> 00:17:12,520 Speaker 5: and Marcia wants her a bill to be one of them. 277 00:17:12,560 --> 00:17:15,000 Speaker 5: And so she laid it out, and I got to 278 00:17:15,000 --> 00:17:17,400 Speaker 5: say a lot of discussions. She's pushing the president back 279 00:17:17,480 --> 00:17:20,159 Speaker 5: my bill, back my bill, back my bill, and I 280 00:17:20,240 --> 00:17:22,240 Speaker 5: stayed quiet for much of the meeting. The meeting was 281 00:17:22,240 --> 00:17:24,760 Speaker 5: like hour hour and a half long, and then I 282 00:17:24,760 --> 00:17:28,760 Speaker 5: said at the end, I said, listen, if Marcia introduces 283 00:17:28,800 --> 00:17:30,879 Speaker 5: the bill, I'll mark it up. I'll put it up 284 00:17:30,920 --> 00:17:34,719 Speaker 5: on the committee for a vote. And I said, I 285 00:17:34,760 --> 00:17:35,800 Speaker 5: expect all supported. 286 00:17:35,880 --> 00:17:36,000 Speaker 4: All. 287 00:17:36,000 --> 00:17:37,680 Speaker 5: To be honest, I'd never read the bill until she 288 00:17:37,720 --> 00:17:39,879 Speaker 5: handed it to me, so I like, she handed me 289 00:17:39,920 --> 00:17:41,879 Speaker 5: a hundred page bill and I didn't know what was 290 00:17:41,960 --> 00:17:44,119 Speaker 5: in it. But I said, look, from what she's described 291 00:17:44,160 --> 00:17:48,040 Speaker 5: in it, I anticipate I'll support it. But I also 292 00:17:48,080 --> 00:17:49,720 Speaker 5: said it was kind of near the end of the meeting, 293 00:17:49,760 --> 00:17:53,600 Speaker 5: but I said, because they had handed the President a 294 00:17:54,000 --> 00:17:58,520 Speaker 5: truth social post supporting the bill, and I said, look, 295 00:17:58,960 --> 00:18:02,840 Speaker 5: someone needs to tell you this bill has. 296 00:18:04,160 --> 00:18:05,840 Speaker 2: Very little, if any chance of passing. 297 00:18:07,280 --> 00:18:10,560 Speaker 5: And like Trump was surprised, and I just said, look, 298 00:18:10,880 --> 00:18:12,879 Speaker 5: there are different elements of it. Right now. There are 299 00:18:12,920 --> 00:18:17,720 Speaker 5: no Democrats backing this bill. It's not clear that every 300 00:18:17,760 --> 00:18:19,920 Speaker 5: Republican on the committee will back the bill. Maybe they will, 301 00:18:19,920 --> 00:18:22,440 Speaker 5: they might. And I said, let me get clear. I'll 302 00:18:22,440 --> 00:18:24,040 Speaker 5: mark it up and I expect to vote for it. 303 00:18:24,119 --> 00:18:26,880 Speaker 5: So I'm not the opposition here, but I just want 304 00:18:26,920 --> 00:18:31,920 Speaker 5: you to know that at this point there's opposition from 305 00:18:32,040 --> 00:18:35,679 Speaker 5: Democrats in the Senate, there's opposition potentially from some Republicans 306 00:18:35,720 --> 00:18:38,720 Speaker 5: in the Senate, and there's strong opposition on aspects of 307 00:18:38,760 --> 00:18:42,240 Speaker 5: the bill from Republican leadership in the House. And so 308 00:18:42,359 --> 00:18:44,639 Speaker 5: I just said, I don't want you to be surprised. 309 00:18:44,680 --> 00:18:46,680 Speaker 5: You lean in and say let's go pass this bill 310 00:18:47,600 --> 00:18:49,680 Speaker 5: and then it doesn't pass. And so Trump said, all right, 311 00:18:49,680 --> 00:18:51,280 Speaker 5: well then I'm not going to support it. I don't 312 00:18:51,280 --> 00:18:54,720 Speaker 5: want to support something that doesn't have a path to passage, 313 00:18:54,720 --> 00:18:57,280 Speaker 5: and so we're going to mark up a series of bills. 314 00:18:57,480 --> 00:18:59,600 Speaker 5: I've told Marshap she wants me to mark up her bill. 315 00:19:00,040 --> 00:19:01,840 Speaker 5: We will I don't know if she will ask for 316 00:19:01,920 --> 00:19:02,240 Speaker 5: it or not. 317 00:19:02,880 --> 00:19:04,720 Speaker 2: Can you ask a politics question on this? 318 00:19:04,800 --> 00:19:05,600 Speaker 4: Yeah? 319 00:19:05,920 --> 00:19:09,840 Speaker 1: How much of her bill is her pushing because she's 320 00:19:09,920 --> 00:19:12,920 Speaker 1: running for governor and really trying to get Tennessee's hands 321 00:19:12,920 --> 00:19:16,119 Speaker 1: on a lot of AI and AI infrastructure and AI 322 00:19:16,359 --> 00:19:18,560 Speaker 1: in the state. Not blame her for that, but like, 323 00:19:18,760 --> 00:19:21,439 Speaker 1: is that part of this hardcore push where you're in 324 00:19:21,480 --> 00:19:23,560 Speaker 1: the Senate You're going I understand both sides of this 325 00:19:23,680 --> 00:19:24,800 Speaker 1: or am I reading the room wrong? 326 00:19:25,480 --> 00:19:27,840 Speaker 5: So listen, they're different components of it. So let's take 327 00:19:27,840 --> 00:19:31,360 Speaker 5: the different elements of the bill. The first bill is COSA, 328 00:19:31,359 --> 00:19:33,720 Speaker 5: and COSA is a kid's safety bill. It's a good bill. 329 00:19:34,359 --> 00:19:37,440 Speaker 5: I've supported it. I've voted for it in the last Congress. 330 00:19:37,440 --> 00:19:40,440 Speaker 5: It passed the Senate ninety three to three. So I'm 331 00:19:40,480 --> 00:19:42,680 Speaker 5: all for COSA. I'm a yes, I want it to pass. 332 00:19:43,720 --> 00:19:46,240 Speaker 5: Here's the problem. After it passed the Senate ninety three 333 00:19:46,240 --> 00:19:50,920 Speaker 5: to three, it went to the House and the House 334 00:19:51,000 --> 00:19:54,480 Speaker 5: refused to take it up. Why because the Speaker of 335 00:19:54,560 --> 00:19:58,320 Speaker 5: the House and Steve Scalise, the majority leader, opposed the 336 00:19:58,320 --> 00:20:01,560 Speaker 5: bill and the bill PU It's what's called a duty 337 00:20:01,600 --> 00:20:04,840 Speaker 5: of care. On the tech companies that that that if 338 00:20:04,880 --> 00:20:08,800 Speaker 5: there's content that harms kids, they can be sued, and 339 00:20:09,359 --> 00:20:12,719 Speaker 5: the House leadership doesn't support that. And so look, frankly, 340 00:20:12,760 --> 00:20:14,240 Speaker 5: what I told Marsha a year and a half ago 341 00:20:14,280 --> 00:20:16,439 Speaker 5: is I said, listen, Mop, I'll back cos again. We 342 00:20:16,480 --> 00:20:19,480 Speaker 5: can pass it again. I'm fine with that, but it 343 00:20:19,520 --> 00:20:23,400 Speaker 5: will never become law until you sit down with Johnson 344 00:20:23,400 --> 00:20:26,160 Speaker 5: and Scalise and work out an agreement. Because if they 345 00:20:26,240 --> 00:20:28,000 Speaker 5: refuse to take up the bill you want to pass 346 00:20:28,040 --> 00:20:29,199 Speaker 5: it again, we can do it. 347 00:20:29,200 --> 00:20:31,800 Speaker 2: You'll get're not going to take it up. 348 00:20:32,920 --> 00:20:35,399 Speaker 5: If the House won't take it up, it's not going 349 00:20:35,440 --> 00:20:37,520 Speaker 5: to become in the US Code. And so I said, 350 00:20:38,680 --> 00:20:41,240 Speaker 5: what you need to do is sit down and negotiate 351 00:20:41,280 --> 00:20:43,560 Speaker 5: a compromise and it won't be everything you want, but 352 00:20:43,600 --> 00:20:45,600 Speaker 5: you need to find something the House is willing to 353 00:20:45,600 --> 00:20:49,960 Speaker 5: pass that hasn't happened. So that's a real impediment. I'm 354 00:20:50,000 --> 00:20:52,080 Speaker 5: going to vote for COSA. I want COSA to pass, 355 00:20:52,920 --> 00:20:55,880 Speaker 5: but right now the House is not. 356 00:20:55,800 --> 00:20:56,479 Speaker 2: Going to take it up. 357 00:20:57,720 --> 00:20:59,960 Speaker 5: There's a second component, which is called the App Store 358 00:21:00,119 --> 00:21:05,679 Speaker 5: Accountability app, which is putting liability on an app store 359 00:21:06,160 --> 00:21:09,840 Speaker 5: for age verification. Now there are a couple of problems 360 00:21:09,840 --> 00:21:14,080 Speaker 5: with that number. One, there are tech companies like Meta, 361 00:21:14,200 --> 00:21:17,920 Speaker 5: like like Facebook that support it, but Apple and Google 362 00:21:18,000 --> 00:21:20,280 Speaker 5: hate it because they're the app stores and they're like, wait, 363 00:21:20,320 --> 00:21:23,679 Speaker 5: you're making me liable. So Apple and Google don't like it, 364 00:21:23,680 --> 00:21:26,200 Speaker 5: and so they're both the tech companies are divided. They're 365 00:21:26,200 --> 00:21:32,159 Speaker 5: lobbying on both sides. And there's a competing bill that 366 00:21:32,320 --> 00:21:35,760 Speaker 5: is called the Parents Over Platforms Bill, which is frankly 367 00:21:35,800 --> 00:21:39,480 Speaker 5: the Apple and Google bill, And there are several Republicans 368 00:21:39,480 --> 00:21:42,080 Speaker 5: on the on the committee that support that bill. And 369 00:21:42,119 --> 00:21:44,320 Speaker 5: so I said, look, this is just a pissing match 370 00:21:44,359 --> 00:21:48,720 Speaker 5: between giant tech companies. I'd like to see age verification. 371 00:21:49,000 --> 00:21:52,440 Speaker 5: I support age verification. I'm pushing for it. But every 372 00:21:52,480 --> 00:21:55,720 Speaker 5: Democrat opposes age verification. So I said, listen, it's a 373 00:21:55,720 --> 00:21:59,119 Speaker 5: simple math. If you lose all the Democrats and if 374 00:21:59,160 --> 00:22:02,880 Speaker 5: you're losing some Republicans, I don't see how this passes. 375 00:22:02,920 --> 00:22:05,280 Speaker 5: Like it's just a math, Like like, I'm not opposed 376 00:22:05,320 --> 00:22:09,040 Speaker 5: to it, I will vote yes, but how do you 377 00:22:09,080 --> 00:22:13,800 Speaker 5: get to the votes to pass it. There is additionally 378 00:22:14,040 --> 00:22:16,639 Speaker 5: her bill No Fakes Now No Fakes. I'm on the 379 00:22:16,720 --> 00:22:20,080 Speaker 5: Judiciary Committee Judiciary Committee has already passed no Fakes. It 380 00:22:20,119 --> 00:22:22,159 Speaker 5: was a voice vote. I was fine with it. No 381 00:22:22,280 --> 00:22:24,399 Speaker 5: Fakes has a lot of good elements to it. So 382 00:22:24,440 --> 00:22:28,199 Speaker 5: no fakes is protecting. Say you have a musician and 383 00:22:28,240 --> 00:22:31,600 Speaker 5: someone uses AI to create a fake song for a musician, 384 00:22:31,840 --> 00:22:35,400 Speaker 5: it makes you liable for that in politics. By the way, 385 00:22:35,440 --> 00:22:39,360 Speaker 5: this is coming. It hasn't really happened yet, but it's 386 00:22:39,359 --> 00:22:42,040 Speaker 5: coming soon. You're going to see someone create AI and 387 00:22:42,080 --> 00:22:45,159 Speaker 5: take a video of a politician a fake video and 388 00:22:45,720 --> 00:22:52,200 Speaker 5: be like we should eat live kittens, and it's gonna 389 00:22:52,200 --> 00:22:53,680 Speaker 5: be You're not going to be able to tell that 390 00:22:53,720 --> 00:22:55,960 Speaker 5: it's fake, like it's going to appear to be the 391 00:22:56,000 --> 00:22:56,520 Speaker 5: real polem. 392 00:22:56,600 --> 00:23:00,000 Speaker 2: You can have to respond to a ridiculous, absurd video, right. 393 00:23:00,680 --> 00:23:02,919 Speaker 5: And by the way, Amy Kloviachar last year had a 394 00:23:02,960 --> 00:23:05,359 Speaker 5: video of a hearing where she said a bunch of 395 00:23:05,400 --> 00:23:09,520 Speaker 5: things that were derogatory that she would never have said, 396 00:23:09,640 --> 00:23:12,600 Speaker 5: but it looked entirely real and she had to respond 397 00:23:12,680 --> 00:23:16,840 Speaker 5: to that. That's going to explode a lot. So finding 398 00:23:16,920 --> 00:23:19,840 Speaker 5: some protections to say, Look, someone can't use your name, 399 00:23:19,880 --> 00:23:24,399 Speaker 5: image and likeness and create a counterfeit that nobody knows 400 00:23:24,520 --> 00:23:29,800 Speaker 5: is fake. I'm quite supportive of that. When the judiciary 401 00:23:29,920 --> 00:23:34,399 Speaker 5: passed this bill, there were several Republicans Mike Lee, Eric Schmidt, 402 00:23:34,400 --> 00:23:38,920 Speaker 5: and myself who raised free speech concerns because the way 403 00:23:38,960 --> 00:23:41,360 Speaker 5: the language is written, it's quite broad. So, for example, 404 00:23:41,400 --> 00:23:46,359 Speaker 5: Trump send out the meme of a Keem Jeffries and 405 00:23:46,720 --> 00:23:50,840 Speaker 5: Chuck Schumer wearing sombrero singing yes, now that was parody. 406 00:23:51,800 --> 00:23:56,560 Speaker 5: It wasn't real, and I've retweeted it then amplified it. 407 00:23:57,320 --> 00:24:00,680 Speaker 5: But there is an argument that under the language and 408 00:24:00,760 --> 00:24:05,400 Speaker 5: no fakes, that could be banned. Now there is some 409 00:24:05,520 --> 00:24:10,320 Speaker 5: language saying bonafide satire is okay, but there's a lot 410 00:24:10,320 --> 00:24:12,919 Speaker 5: of gray area. You think of Spencer Pratt and the 411 00:24:13,040 --> 00:24:18,600 Speaker 5: hysterical ads he put out with Gavin Newsom and Karen 412 00:24:18,680 --> 00:24:23,640 Speaker 5: Bass just like doing horrible things to people of California. 413 00:24:24,320 --> 00:24:24,840 Speaker 2: I have a. 414 00:24:24,840 --> 00:24:28,560 Speaker 5: Concern that under the language and no fakes, the tech 415 00:24:28,640 --> 00:24:32,600 Speaker 5: platforms would take down those ads because they'd say, you're 416 00:24:32,800 --> 00:24:36,760 Speaker 5: using Gavin Newsom's image in a way that he has 417 00:24:36,800 --> 00:24:40,439 Speaker 5: not approved. And so my point was, look, I'd love 418 00:24:40,480 --> 00:24:43,200 Speaker 5: to see this get done, but I also want to 419 00:24:43,240 --> 00:24:47,600 Speaker 5: protect free speech. So my point to the president was, Hey, 420 00:24:47,680 --> 00:24:49,520 Speaker 5: if you want to endorse this great. I've got no 421 00:24:49,520 --> 00:24:53,199 Speaker 5: problem with it, but you need to know that I 422 00:24:53,320 --> 00:24:56,840 Speaker 5: don't see a path that this actually gets to pass 423 00:24:56,880 --> 00:25:00,159 Speaker 5: in the Senate take sixty votes. Given the that I 424 00:25:00,240 --> 00:25:04,040 Speaker 5: don't know of a single Democrat supporting this bill, and 425 00:25:04,080 --> 00:25:09,120 Speaker 5: there may be Republicans opposing this bill, the math doesn't work, 426 00:25:09,960 --> 00:25:12,840 Speaker 5: and so the President decided not to support it. Listen, 427 00:25:13,119 --> 00:25:16,720 Speaker 5: I still expect that we will take up in the 428 00:25:16,760 --> 00:25:19,439 Speaker 5: next couple of weeks a series of AI bills. And 429 00:25:19,480 --> 00:25:21,159 Speaker 5: by the way, we will do a podcast when we 430 00:25:21,160 --> 00:25:23,720 Speaker 5: do that markup where we talk about the AI bills 431 00:25:23,720 --> 00:25:26,560 Speaker 5: we pass. But what I'm trying to do right now 432 00:25:26,680 --> 00:25:28,800 Speaker 5: is find all right, let me use a Kamala Harris 433 00:25:28,840 --> 00:25:35,280 Speaker 5: phrase the ven diagram, that is the intersection of what 434 00:25:35,560 --> 00:25:39,359 Speaker 5: bills could make a positive impact protecting people from some 435 00:25:39,400 --> 00:25:42,639 Speaker 5: of the harms of AI, but at the same time 436 00:25:42,760 --> 00:25:47,080 Speaker 5: that have a real path to passage. And so we'll 437 00:25:47,119 --> 00:25:49,680 Speaker 5: move several bills on that. But I'm trying to find 438 00:25:49,760 --> 00:25:53,600 Speaker 5: exactly the right intersection right there. And so we had 439 00:25:53,600 --> 00:25:55,679 Speaker 5: that conversation and the President agreed with me. 440 00:25:57,119 --> 00:26:00,879 Speaker 1: President Donald Trump, he's coming out swinging not against Iran, 441 00:26:01,080 --> 00:26:05,360 Speaker 1: but this time it's an escalating trade battle with our 442 00:26:05,600 --> 00:26:10,240 Speaker 1: northern neighbor. The President announcing a fifty percent tariff on 443 00:26:10,280 --> 00:26:13,720 Speaker 1: a wide range of Canadian goods, and the White House says, 444 00:26:13,760 --> 00:26:17,600 Speaker 1: this isn't about raising revenue, it's about what the administration 445 00:26:17,840 --> 00:26:24,480 Speaker 1: calls Canada's discriminatory treatment of American goods and products, especially 446 00:26:24,760 --> 00:26:28,920 Speaker 1: American automobiles. In other words, the President's doing what he's 447 00:26:28,960 --> 00:26:32,160 Speaker 1: been doing since the day got back into office, standing 448 00:26:32,240 --> 00:26:36,520 Speaker 1: up for American workers, standing up for American manufacturers, standing 449 00:26:36,640 --> 00:26:40,480 Speaker 1: up for American companies, and when we're being taken advantage of, 450 00:26:40,720 --> 00:26:45,440 Speaker 1: even if it's Canada, the President saying, not under my watch. Now, 451 00:26:45,440 --> 00:26:49,200 Speaker 1: if you're going to discriminate against American workers and American farmers, 452 00:26:49,200 --> 00:26:53,040 Speaker 1: we should also mention that and American manufacturers, well, the 453 00:26:53,040 --> 00:26:56,679 Speaker 1: White House is saying, don't expect unrestricted access to the 454 00:26:56,720 --> 00:27:01,320 Speaker 1: American marketplace now. According to the White House, Canada has 455 00:27:01,400 --> 00:27:05,800 Speaker 1: been giving preferential treatment of products from other countries while 456 00:27:05,840 --> 00:27:12,760 Speaker 1: imposing policies that specifically are designed to disadvantage the United States. Now, 457 00:27:12,800 --> 00:27:16,639 Speaker 1: the Trump administration points to Canada's treatment of American made vehicles. 458 00:27:17,119 --> 00:27:21,440 Speaker 1: Restrictions affecting US alcohol is another example, and then their 459 00:27:21,600 --> 00:27:26,320 Speaker 1: dairy policies that they argue favor other trading partners over 460 00:27:26,480 --> 00:27:27,800 Speaker 1: American producers. 461 00:27:28,480 --> 00:27:30,640 Speaker 2: Now, let's also talk about one of the. 462 00:27:30,600 --> 00:27:34,440 Speaker 1: Big issues, and that is the American auto industry, because 463 00:27:34,440 --> 00:27:38,240 Speaker 1: that is the centerpiece of all of this announcement. The 464 00:27:38,280 --> 00:27:43,399 Speaker 1: White House argues Canada has maintained policies that place unique 465 00:27:43,440 --> 00:27:47,480 Speaker 1: burdens on American made vehicles while also treating imports from 466 00:27:47,520 --> 00:27:52,399 Speaker 1: other countries much more favorably. Now, the Administration says those 467 00:27:52,520 --> 00:27:57,800 Speaker 1: policies violate the principle of fair trade and that puts 468 00:27:57,840 --> 00:28:03,600 Speaker 1: the US manufacturers at a massive competitive disadvantage on purpose. 469 00:28:04,480 --> 00:28:07,600 Speaker 1: Not to be clear, President Trump isn't using his typical 470 00:28:07,640 --> 00:28:12,640 Speaker 1: tariff authorities. Instead, he reached back to section three three 471 00:28:12,920 --> 00:28:16,800 Speaker 1: eight of the Tariff Act of nineteen thirty. Now, that's 472 00:28:16,800 --> 00:28:19,520 Speaker 1: a law that gives President Trump the authority, or any 473 00:28:19,560 --> 00:28:22,679 Speaker 1: president for that matter, the authority to impose duties of 474 00:28:22,800 --> 00:28:27,560 Speaker 1: up to fifty percent when another country discriminates against US commerce. 475 00:28:28,200 --> 00:28:31,680 Speaker 1: And that's remarkable is the fact that this authority has 476 00:28:31,800 --> 00:28:36,000 Speaker 1: rarely ever been used in modern history. But the President, well, 477 00:28:36,119 --> 00:28:40,080 Speaker 1: he doesn't care about history. He cares about what's happening now, 478 00:28:40,480 --> 00:28:43,320 Speaker 1: and making sure that Canada doesn't continue to take advantage 479 00:28:43,360 --> 00:28:47,240 Speaker 1: of US, and that is why this announcement was making 480 00:28:47,320 --> 00:28:50,160 Speaker 1: headlines not just in the US or Canada, but around 481 00:28:50,200 --> 00:28:53,760 Speaker 1: the world. The administration says this isn't a blanket tariff 482 00:28:53,840 --> 00:28:58,200 Speaker 1: on everything Canada exports. By the way, there are significant exemptions, 483 00:28:58,280 --> 00:29:04,600 Speaker 1: including energy products, fish, critical minerals, and certain other strategically 484 00:29:04,640 --> 00:29:08,920 Speaker 1: important goods are excluded, but a wide variety of other 485 00:29:09,000 --> 00:29:12,640 Speaker 1: Canadian products, from wine and furniture to cement, clothing and 486 00:29:12,680 --> 00:29:16,680 Speaker 1: sporting goods will now face a new fifty percent duty 487 00:29:17,120 --> 00:29:20,600 Speaker 1: if the policy takes effect on August the nineteenth. 488 00:29:21,280 --> 00:29:21,440 Speaker 2: Now. 489 00:29:21,480 --> 00:29:24,000 Speaker 1: White House has also said the goal is real, simple, 490 00:29:24,680 --> 00:29:29,120 Speaker 1: level the playing field. Officials argue that for far too long, 491 00:29:29,160 --> 00:29:33,960 Speaker 1: Americans have accepted trade agreements where foreign governments protect their 492 00:29:34,000 --> 00:29:40,920 Speaker 1: own industries while expecting unrestricted access to American consumers, and 493 00:29:40,960 --> 00:29:45,480 Speaker 1: the Trump administration says that error is over now. Supporters 494 00:29:45,480 --> 00:29:48,760 Speaker 1: of the president are also arguing that this fits perfectly 495 00:29:48,800 --> 00:29:52,320 Speaker 1: with the economic philosophy that we've seen since day one. 496 00:29:52,720 --> 00:29:56,959 Speaker 1: Trump has repeatedly said that tariffs are used as leverage, 497 00:29:57,280 --> 00:30:00,760 Speaker 1: and he believes America's enormous consumer market it is one 498 00:30:00,800 --> 00:30:04,920 Speaker 1: of the country's greatest negotiating tools and assets. And look, 499 00:30:05,120 --> 00:30:07,920 Speaker 1: the Trump doctrine, the White House says, is very clear. 500 00:30:08,200 --> 00:30:11,200 Speaker 1: If another country, doesn't matter who it is, wants to 501 00:30:11,320 --> 00:30:14,680 Speaker 1: sell billions and billions of dollars worth of products to 502 00:30:14,760 --> 00:30:18,520 Speaker 1: American consumers, then their view is that they should treat 503 00:30:18,560 --> 00:30:23,120 Speaker 1: American companies fairly in return. And that's exactly what the 504 00:30:23,120 --> 00:30:27,120 Speaker 1: White House says this action is designed to accomplish. Now, 505 00:30:27,160 --> 00:30:30,400 Speaker 1: of course, many on the left, they're furious over this, 506 00:30:30,760 --> 00:30:33,960 Speaker 1: as they always are when President Trump does anything like this. 507 00:30:34,520 --> 00:30:37,120 Speaker 1: Economists they're warning that the tariffs are going to increase 508 00:30:37,160 --> 00:30:39,640 Speaker 1: costs or businesses, and it's going to shut down and 509 00:30:39,680 --> 00:30:41,920 Speaker 1: put American consumers and workers. 510 00:30:41,880 --> 00:30:43,000 Speaker 2: Lives at risk. 511 00:30:43,160 --> 00:30:45,200 Speaker 1: Yes, it's the same thing they said the last time 512 00:30:45,600 --> 00:30:49,360 Speaker 1: the President put serious tariffs in Europe and Asia and 513 00:30:49,400 --> 00:30:52,560 Speaker 1: other parts of the world. Now, Canadian officials have already 514 00:30:52,560 --> 00:30:56,720 Speaker 1: indicated they intend to continue negotiations while defending their own 515 00:30:56,840 --> 00:31:01,880 Speaker 1: trade measures, and some provisional leaders have even discuss possible responses. 516 00:31:02,560 --> 00:31:07,000 Speaker 1: So the big question now is what happens next. Does 517 00:31:07,080 --> 00:31:10,240 Speaker 1: Canada come back to the negotiating table, does it remove 518 00:31:10,320 --> 00:31:14,080 Speaker 1: some of the policies Washington say unfairly target American products 519 00:31:14,080 --> 00:31:18,520 Speaker 1: and manufacturing, or do both countries continue escalating in what 520 00:31:18,560 --> 00:31:22,600 Speaker 1: would become an even larger trade confrontation. Not to be clear, 521 00:31:23,360 --> 00:31:27,800 Speaker 1: Canada needs America more than we need Canadian goods, and 522 00:31:27,840 --> 00:31:30,160 Speaker 1: they desperately need to sell those products to the United 523 00:31:30,200 --> 00:31:33,280 Speaker 1: States of America. There's a very good chance the President's 524 00:31:33,320 --> 00:31:35,960 Speaker 1: going to get exactly what he wants here. You also 525 00:31:36,000 --> 00:31:38,880 Speaker 1: have to remember the United States and Canada aren't just neighbors. 526 00:31:38,880 --> 00:31:42,720 Speaker 1: They're well two of the world's largest trading partners. Every 527 00:31:42,800 --> 00:31:47,000 Speaker 1: day billions of dollars and goods across the border. Supply 528 00:31:47,160 --> 00:31:53,160 Speaker 1: chains are deeply integrated between the two countries, especially in manufacturing. 529 00:31:54,000 --> 00:31:58,240 Speaker 1: That means decisions like this don't just affect politicians, they 530 00:31:58,240 --> 00:32:02,840 Speaker 1: affect everyone. I'm talking about the factories, the truck drivers, 531 00:32:03,160 --> 00:32:07,680 Speaker 1: the suppliers, the farmers, the retailers, the consumers, and the 532 00:32:07,720 --> 00:32:10,280 Speaker 1: White House is betting that Canada has more to lose 533 00:32:10,720 --> 00:32:15,160 Speaker 1: by maintaining what it calls discriminatory policies than by negotiating 534 00:32:15,160 --> 00:32:18,800 Speaker 1: a new agreement. Now, this also sends a very clear 535 00:32:18,880 --> 00:32:23,840 Speaker 1: message beyond Canada as well other countries you better pay 536 00:32:23,880 --> 00:32:29,240 Speaker 1: attention because these negotiations. Now know that the Trump administration 537 00:32:29,360 --> 00:32:32,120 Speaker 1: is willing to use authorities. And by the way, the 538 00:32:32,160 --> 00:32:36,200 Speaker 1: President's also sending a very clear message to other countries 539 00:32:36,280 --> 00:32:39,680 Speaker 1: around the world that are watching these negotiations, and the 540 00:32:39,720 --> 00:32:44,360 Speaker 1: message is this, the Trump administration is absolutely willing to 541 00:32:44,560 --> 00:32:50,240 Speaker 1: use its authorities that previous presents left untouched if they 542 00:32:50,280 --> 00:32:55,640 Speaker 1: believe that American industries, well, if we're being treated unfairly. So, 543 00:32:55,760 --> 00:32:59,520 Speaker 1: whether you're talking about automobiles or agriculture, or manufacturing or 544 00:32:59,560 --> 00:33:05,040 Speaker 1: consumer products, this announcement reinforces one central theme, and that 545 00:33:05,160 --> 00:33:09,520 Speaker 1: is President Donald Trump's economic agenda is this, America is 546 00:33:09,600 --> 00:33:13,720 Speaker 1: no longer going to accept trade relations that this administration 547 00:33:13,840 --> 00:33:18,920 Speaker 1: believes put American workers at any disadvantage. And by the way, 548 00:33:18,960 --> 00:33:22,000 Speaker 1: this is what the majority of the American people voted 549 00:33:22,040 --> 00:33:25,400 Speaker 1: for in the last presidential election. And clearly this is 550 00:33:25,440 --> 00:33:29,000 Speaker 1: sending a message before the midterms that if you want 551 00:33:29,120 --> 00:33:33,320 Speaker 1: to put America first, then the America First agenda by 552 00:33:33,360 --> 00:33:37,040 Speaker 1: this president and conservative candidates is exactly what you should 553 00:33:37,040 --> 00:33:39,360 Speaker 1: be voting for. Do me a favor, Make sure you 554 00:33:39,400 --> 00:33:42,760 Speaker 1: share this podcast with your family, your friends, put it 555 00:33:42,840 --> 00:33:45,200 Speaker 1: up on social media wherever you are on social media. 556 00:33:45,320 --> 00:33:47,200 Speaker 1: And I will see you back here tomorrow.