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U.S. Government Shuts Down. Aired 3-4a ET

Aired January 20, 2018 - 03:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[03:00:00]

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UNIDENTIFIED MALE (voice-over): This is CNN breaking news.

GEORGE HOWELL, CNN ANCHOR (voice-over): Welcome to viewers here the U.S. and around the world. We continue the breaking news this hour here on CNN. Three hours now and counting into the U.S. government shutdown. Where we are and where we go next. I'm George Howell.

NATALIE ALLEN, CNN ANCHOR: And I'm Natalie Allen.

The Senate has failed to approve a short-term measure to continue funding the government. A procedural vote needed 60 votes to pass. It fell short by 10. With five Democrats voting with the majority Republicans and four Republicans voting against the measure.

HOWELL: Also this day a milestone for the U.S. president. Saturday marks the first anniversary of his presidency. And now since the shutdown, we have not yet heard directly from the president.

However, the White House did release this statement, kicking off the blame game. I'll read it here.

It says, quote, "Senate Democrats own the Schumer shutdown. Tonight they put politics above our national security, military families, vulnerable children and our country's ability to serve all Americans."

It goes on to say, "We will not negotiate the status of unlawful immigrants while Democrats hold our lawful citizens hostage over their reckless demands," end quote.

ALLEN: This marks the first shutdown in history where one party holds the White House, the House and Senate. After the vote was final, Senate majority leader Mitch McConnell and Democratic leader Chuck Schumer took to the floor.

HOWELL: Here's a bit of what they had to say.

(BEGIN VIDEO CLIP)

SEN. MITCH MCCONNELL (R), MAJORITY LEADER: What we just witnessed on the floor was a cynical decision by Senate Democrats who shove aside millions of Americans for the sake of irresponsible political gains. The government shutdown was 100 percent avoidable, completely

avoidable. Now it is imminent, all because Senate Democrats chose to filibuster a non-controversial funding bill that contains nothing, not a thing they do support. Nothing they do not support.

Perhaps, across the aisle, some of our Democratic colleagues are feeling proud of themselves.

But what has their filibuster accomplished?

What has it accomplished?

The answer is simple: their very own government shutdown.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

SEN. CHUCK SCHUMER (D-N.Y.), MINORITY LEADER: Republican leadership can't get to yes because President Trump refuses to.

Mr. President, President Trump, if you are listening, I am urging you, please take yes for an answer. The way things went today, the way you turned from a bipartisan deal, it is almost as if you were rooting for a shutdown.

And now we'll have one and the blame should crash entirely on President Trump's shoulders.

This will be called the Trump shutdown.

(END VIDEO CLIP)

ALLEN: Or the Schumer shutdown, depending on who you're talking with at the time.

It was a dramatic evening and an evening of give and take.

HOWELL: It was a great deal of arm twisting involved. Our Phil Mattingly was there. And tells us how it all went down.

(BEGIN VIDEOTAPE)

PHIL MATTINGLY, CNN CORRESPONDENT: Well, at one point on Friday, with the clock ticking towards that midnight deadline, it appeared, at least according to some Democrats, that there was an opening to prevent a shutdown, to prevent the Republicans in Congress, the Democrats in Congress, the president, Republican Donald Trump in the White House, from actually seeing things totally fall apart.

Senate minority leader Democrat Chuck Schumer, over to the White House for a one-on-one meeting with the president, a meeting where Senator Schumer would later say he put money for the wall, something Democrats have been deeply opposed to, on the table for a potential deal, which is a deal that would never come. Even furious lobbying at the last minute after the government had

already shut down into Saturday morning on the Senate floor in live view for everyone, there was no solution, no resolution and one clear fact: things are probably going to get worse before they get better.

Instead of trying to figure out the pathway forward, instead, Republicans and Democrats now framing who is to blame.

For Senator Schumer, there's only one answer.

(BEGIN VIDEO CLIP)

SCHUMER: Every American knows the Republican Party controls the White House, the Senate, the House. It is their job to keep the government open. It is their job to work with us on a way to move things forward.

But they did not reach out to us once on this C.R. No discussion, no debate. Nothing at all. It was produced without an ounce of Democratic input and dropped on our laps.

(END VIDEO CLIP)

MATTINGLY: And for Republicans, it's very clear.

[03:05:00]

MATTINGLY: They believe and they're very comfortable, aides tell me, in their current position, the idea the House passed a four-week spending bill. That bill includes a six-year extension of the Children's Health Insurance Program. That is where they stand.

They are unlikely to move off of that. Maybe they trim a week off the length. But that's about as far as they're going to go.

Now compare that to where Democrats are. Democrats have made very clear, DACA, the DREAMers, a huge issue for them. And not only do they want some agreement on what happens next with that issue, they want actual policy proposals on the table before they are willing to agree to anything.

The divide between where the two parties right now are is immense. The question is what's going to bridge it. The answer, at least according to some people, could be the president. But nobody's technically sure what his role will be going forward.

Obviously, he had the meeting with Senator Schumer. Didn't lead to anything. Senator Schumer saying the president needs to take yes for an answer while the White House, in a statement before the vote actually was finalized, calling Democrats "obstructionist losers." Clearly there's a long way to go and no clear resolution -- Phil Mattingly, CNN, Capitol Hill.

(END VIDEOTAPE)

HOWELL: Phil, thank you. That seemingly incendiary statement from the White House, the

question, will that help to bring the discussion, push the discussion along?

Because clearly there is a big divide right now on where these two sides stand on this. The government shutdown will affect a lot of people. Deeper bite once we get past the weekend into Monday.

ALLEN: On the front line, hundreds of thousands of federal workers. Tom Foreman takes a closer look for us.

(BEGIN VIDEOTAPE)

TOM FOREMAN, CNN CORRESPONDENT: 850,000 government workers locked out of their offices and left out of their paychecks. That's what happened when the government shut down in 2013. And it would likely be the same this time.

Many services would be stopped or delayed for the public. The Centers for Disease Control and Prevention, for example, would back down on its flu tracking, even as the nation faces the worst outbreak in several years. Some senior nutrition programs would be paused; 200,000 passport applications went unprocessed during the shutdown in 1995.

Congress funds much of the science research being done in this country. In 2013, the shutdown meant that some experiments went on hold and suffered costly losses of data.

In space that same year, NASA put a monitoring system for looking for dangerous asteroids on hold for about two weeks, reportedly. A big one, by the way, is expected to brush by Earth on February 4th.

As for the 417 national parks, the administration wants to keep limited access where ever possible. But services would be reduced in all 19 of the Smithsonian's museums, would shut their doors after this weekend.

Beyond that, not everybody would be out. For example, in the military, there's a lot of worry about the impact on the military. There would be some discomfort no doubt for some military families if their pay was delayed, other benefits, that sort of thing.

But Congress has previously gone out of its way to keep that from being too egregious. And the troops would stay on duty. Indeed, roughly 1.9 million government workers would keep at it since their jobs are considered essential: air traffic controllers, security officers, food inspectors, prison guards.

Social Security checks would also go out as would be expected for the senior population out there. The post office would remain open. But in virtually all of these cases, people would be working without pay until the shutdown is over. That could cause them some difficulties undeniably. And it could all be pricy for us, too. One current estimate, shutting down the government could cost taxpayers $6 billion a week. (END VIDEOTAPE)

HOWELL: All right. Tom Foreman, not a pretty picture.

ALLEN: As the government shuts down, U.S. Vice President Mike Pence is out of the country. He stopped in Ireland on his way to the Middle East.

HOWELL: Just moments ago we heard from Mr. Pence about this crisis in Washington. Let's listen.

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MIKE PENCE, VICE PRESIDENT OF THE UNITED STATES: There had been good faith negotiations that have taken place over the last several weeks. The president and I are convinced that with a few more weeks, we can resolve the issues related to the budget. We can resolve issues related to border walls, chain migration, diversity lottery, DACA.

But now is the time for us to remember we got troops in harm's way. We got these soldiers headed down range. We got soldiers in the field today. They deserve better --

(CROSSTALK)

(END VIDEO CLIP)

HOWELL: All right, so that statement from the U.S. vice president, very different from what we heard from the White House, a very blame- focused statement from the White House. The vice president though saying that good faith negotiations taking place, focusing on resolving the issue, focusing on troops who would be affected by this. A lot to talk about.

Let's bring in Democratic strategist --

[03:10:00]

HOWELL: -- Caroline Heldman and Republican consultant John Thomas.

Good to have you both with us. Look, nothing to smile about this day for sure, the U.S. government shut down. Democrats blame Republicans. Republicans blame Democrats. Let's start at the top, the issue of leadership because, before he became President of the United States, Donald Trump spoke out about how leaders should handle a shutdown. Let's listen.

(BEGIN VIDEO CLIP)

TRUMP: Problems start from the top. And they have to get solved from the top and the president is the leader. And he has got to get everybody in a room and he's got to lead.

If there's a shutdown I think it would be a tremendously negative mark on the President of the United States. He's the one that has to get people together. (END VIDEO CLIP)

HOWELL: So from the president's mouth.

John, to you, the question, this is happening under the president's watch.

Your thoughts.

JOHN THOMAS, CNN POLITICAL COMMENTATOR: There's no doubt about it, that the president tried to bring Chuck Schumer together to come to a deal and was unable to do that. But I think what we're forgetting here is that this is -- you have to count to 60 in the Senate to get something done. The Republicans need Democrat votes to get this done.

I didn't see Democrats voting to keep the government open. This rests on their shoulders. I understand they wanted to see other things included in this bill. But it just wasn't going to happen.

And they felt it was worth holding the government and the American people hostage over a DACA negotiation that isn't even set to expire for weeks.

ALLEN: Caroline, what do you make of the fact that Mr. Schumer did work with the president today to try to hammer out a deal?

And according to the Democrat, Schumer, he put the border wall on the table and there was still no deal with President Trump.

(CROSSTALK)

THOMAS: We don't know exactly what the specifics are -- oh, go ahead.

ALLEN: I threw that to Caroline but we'll get back to you, John.

CAROLINE HELDMAN, DEMOCRATIC STRATEGIST: Chuck Schumer said he put it on table. It was unpopular with a lot of Democrats but he went there anyway in a good faith effort to try to get something passed.

And as you point out, John, the Republicans knew that they needed 60 votes. And they knew that the Democrats weren't going to do it without DACA, which 87 percent of the people in the United States support.

So this is a wildly popular program. It should never have been rescinded and the Democrats came into this and they said Republicans did two things that are very bad. One is rescinding CHIP funding, the other is rescinding DACA. And we want both of them. And it's not negotiable.

You don't put sick children up against 800,000 people who were brought here as children and should have some sort of protection in the United States. It was unethical for it to ever be pitched like that. And the Democrats have stood firm and said we won't cast aside these 800,000 people. HOWELL: All right, but, Caroline, the question, though, Republicans are pointing out, they wanted a clean agreement here without DACA being tied to the terms.

Is there a sense, is there a concern, as Republicans are suggesting, that Democrats overplayed their hand?

HELDMAN: Well, I think that the Republicans, according to three polls I have looked at, are going to be blamed more than the Democrats. So half of Americans approximately blame Republicans and Trump. About one in three blame the Democrats.

According to the American people, this is not an issue that the Democrats have put on the table. And to say they wanted a clean bill, budget bills are never clean. They're an issue of priorities. So that's a tricky way of saying we didn't want to include this because we don't prioritize a issue that nine out of 10 Americans want addressed.

THOMAS: George, what's amazing is that there really was nothing in this bill that anyone disagreed with. There was nothing in the bill. It was that Schumer and Pelosi wanted to add something in the bill that was controversial among both parties.

So that is what we keep losing track of here. There was no disagreement in the bill. They just wanted to use it as leverage to get something else in addition.

(CROSSTALK)

HELDMAN: -- why isn't CHIP passed?

Why didn't they pass CHIP earlier this week if --

THOMAS: CHIP was included in the bill.

(CROSSTALK)

HELDMAN: -- included in the bill but the Republicans retracted it almost 120 days ago and they could have passed it at any point --

THOMAS: But it was included in this, Caroline.

HELDMAN: Yes. But it is disingenuous to say somehow this is a clean bill. They added it in to try to get Democrats and we said no. You made two messes, DACA and CHIP, and we want both of them fixed. It's not enough for the American people --

THOMAS: And DACA hasn't expired, has it?

HELDMAN: No, but this is the only moment in time where the Democrats have the leverage that they need to push this issue.

HOWELL: Let me ask you both, so look, moving forward, the question now, Americans are watching this. They see what happened there on the Senate floor. They're seeing the back and forth, the blame game. They're tired of it.

They want to know what happens next. So the question to you both, just looking forward, what has to happen?

How do these sides come together?

ALLEN: Who fixes this?

And where is President Trump in all of this?

THOMAS: So it's a waiting game. I think you saw, when you saw Democrat senators all of a sudden turn and vote for it, several senators did that were in states that Trump carried --

[03:15:00]

THOMAS: -- that was almost -- I think it was minutes after CNN released a poll that showed almost 60 percent of Americans value pass -- keeping the government going over a DACA deal.

So I think the question is who's going to break first here. I suspect the Democrats end up caving because Trump seems to be pretty stubborn on this. And Trump is open to DACA negotiations, just not in this particular bill.

ALLEN: But has he waffled on DACA, John?

THOMAS: He has. But look, I think he will -- I think he actually will -- may work with Democrats on this issue if he gets something meaningfully done on the wall. And your earlier point, we don't know what Chuck Schumer offered him on the wall. My hunch is it was something that was just not tangible at all, because I think Trump would have jumped at the first opportunity of a bipartisan solution to the wall.

HOWELL: I want to go back to something. There's a tweet. And I'll ask our director if we have it. This is a tweet from President Trump well before all of this. But it's focusing on the topic of a shutdown.

Do we have that tweet?

Can we show it full screen?

Because I'd like to talk about this and, John and Caroline, get your thoughts on it.

The tweet basically suggesting that a shutdown would be a good thing. Let's talk about this.

"So either elect more Republican senators in 2018 or change the rules. Now to 51 percent. Our country needs a good shutdown in September to fix mess."

John, Caroline.

(CROSSTALK)

HELDMAN: Trump has just consistently displayed that he doesn't know how government works. A shutdown is nothing to be celebrated. Nor is the 51 percent in the Senate --

HOWELL: No, there are a lot of people who get affected, yes.

HELDMAN: -- $6 billion in taxpayer funds a week, it hits our economy; 850,000 employees furloughed. Yes, it's nothing to celebrate. But also the 51 percent is really troubling. We have had Senate rules in place for 240 years that mean that we have to come together. It requires 60 votes for major policies.

So Donald Trump is just being wildly reckless in terms of not only what he's suggesting for government but his understanding of the basics of government and democracy and how this is all supposed to work.

HOWELL: John, the last word, please.

THOMAS: Yes, I think the president wanted to with that tweet was meaning that if we do get a shutdown at the hands of Democrats and that will show the American people where Democrats' priorities are, which means more -- which will give us more votes in the midterm elections because Republicans are trying to keep this thing open. And Democrats are playing partisan politics and they're willing to shut down the government. To Caroline's pinot, it will cost billions of dollars potentially in the process.

(CROSSTALK)

HOWELL: The question though, how does that affect people who just want to know what happens next for them?

ALLEN: Right. And we already know what the Americans think of Congress.

What are they going to think of them now?

Thank you so much, Caroline Heldman and John Thomas.

And did you notice on that tweet by President Trump, 69,000 liked it when he said what we need is a good government shutdown. So clearly members of the base support the president no matter what he says.

HOWELL: Guys, thank you so much for being with us.

It's no surprise the blame game from both parties started very quickly on Twitter.

ALLEN: House Speaker Paul Ryan tweeted, "Senate Democrats have let down our troops, our children and all Americans. All of this is just unnecessary. It is reckless. Senate Democrats have brought us to a shutdown."

HOWELL: Democratic congressman Steny Hoyer writes, quote, "Republicans control all the levers of government. There can be no disputing who is responsible for the grossly irresponsible act of shutting down the government."

ALLEN: And Democratic senator Kamala Harris calls the shutdown "avoidable." She writes, "The White House created this crisis. And the GOP leaders in Congress refused to negotiate with Democrats."

She adds, "We must pass a bipartisan solution. Americans expect and deserve it."

HOWELL: That's where we are right now. Stay with us. We have much more on the U.S. government shutdown. We'll get reaction from Washington and what steps are next.

ALLEN: Plus President Trump campaigned on better ties with Russia. We'll look at how things stand one year after he took office. A live report from Moscow -- as we push on here.

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ALLEN: At this hour, thousands of U.S. government workers are on furlough and won't report it work on Monday.

HOWELL: This comes as the U.S. Senate could not pass a deal to keep funding the U.S. government. That triggered a shutdown that took place at midnight Saturday. Both Republicans and Democrats blame each other for the closure. In fact, the White House has called Democrats "obstructionist losers."

Lawmakers from the two parties plan to meet separately in the coming hours to try to figure out what to do now. Democrats calling it the Trump shutdown. Republicans calling it the Schumer shutdown. So blame on both sides going back and forth.

ALLEN: Americans are probably doing just double thumbs down at Washington right now.

The government shutdown begins as President Trump reaches a milestone in his presidency. Saturday marks one year since he was sworn in to office. And he begins this second year with a government shutdown.

He campaigned on improving ties with Russia. And like it or not, Russia has been a centerpiece of this first year -- for all the wrong reasons for President Trump. CNN's Matthew Chance join us live from Moscow.

Having a better relationship with Russia, that is an elusive goal still for the president, Matthew.

MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: It absolutely is. And you can almost touch the disappointment in Moscow when you speak to Russian officials and ordinary Russians because they anticipated -- they were told that this was going to be a president who would transform the relationship between Russia and the United States.

Donald Trump spoke about various issues between the two countries in a positive way. They, the Kremlin, felt that this was a man, this was a businessman turned president who they could do finally do a deal with. But it didn't turn out that way.

And in fact the Kremlin now says that the failure of the U.S.-Russia relationship has been one of the biggest disappointment for them in the past 12 months. Take a listen.

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CHANCE (voice-over): It didn't take too long for the high hopes to fade, for the disillusionment toward Trump in Russia to really set in.

[03:25:00]

CHANCE (voice-over): He may have been portrayed as the Kremlin's preferred candidate. But his vision of better relations with Moscow never materialized, the victim of an anti-Russian media witch hunt, according to frustrated Russian officials.

UNIDENTIFIED FEMALE: Stop spreading lie and false news. This is good advice for CNN.

CHANCE: Are you concerned the investigations into Russia will turn up more secret meetings?

UNIDENTIFIED FEMALE: Please, stop the spreading lies and false news.

UNIDENTIFIED MALE: Can you give us a question?

TRUMP: I'm not going to give you a question. You are fake news.

CHANCE (voice-over): But it's not just insults Russia and Trump shared. Despite denials of contact, details emerged of private meetings between Russian nationals and Trump campaign figures.

CHANCE: Why did you arrange that meeting between Donald Trump Jr. and the Russian lawyer?

UNIDENTIFIED MALE: Come join me for the show tonight.

CHANCE: Yes, we will definitely.

CHANCE (voice-over): Like organized Trump talent, set up by a representative of a Russian pop star (INAUDIBLE) Donald Trump Jr. released his own e-mails showing that he had been told the meeting was to pass on damaging intelligence about Hillary Clinton.

CHANCE: Did the Russian authorities give your family information to pass on to the administration?

UNIDENTIFIED MALE: Talk to my lawyer.

CHANCE: We talked to him. He said you wouldn't comment.

UNIDENTIFIED MALE: So I wouldn't comment.

TRUMP: Wouldn't it be nice if we actually got along with Russia?

Wouldn't that be nice?

CHANCE (voice-over): It was that promise to transform U.S.-Russian relations that was one of Trump's most consistent campaign themes. His criticism of NATO, calls for security cooperation with Russia and hints at ending sanctions all made him Russia's preferred candidate.

Trump's failure to deliver amid investigations into collusion and tightening sanctions was all the more disappointing to the Kremlin, despite two meetings and numerous phone calls between the two leaders.

CHANCE: Do you sometimes sit in your office in the Kremlin, thinking about how badly U.S.-Russia relations are going and regretting the day that Donald Trump was elected?

VLADIMIR PUTIN, PRESIDENT OF RUSSIA (through translator): What we see is merely the growth of anti-Russian hysteria. And, yes, I regret it. It's a pity because acting together, we are more able to solve the acute problems that exist in the world.

CHANCE (voice-over): But a year on from Trump's inauguration and the grand celebrations held in Moscow as he was sworn in, that dream of a U.S.-Russian partnership seems more distant than ever.

(END VIDEOTAPE)

CHANCE: Natalie, there's no real sign of it getting any closer, either, because in the next few weeks, the U.S. Congress is expected to consider ratcheting up economic sanctions on Russia, which could plunge the relationship between Washington and Moscow into an even deeper crisis. So we'll be watching that closely.

ALLEN: One other step that the Congress can make. Certainly both countries unified on one thing, blaming fake news for the problems, at least the governments blame.

Thank you, Matthew Chance, for us there in Moscow. Thank you for your reporting.

When we come back, more on the breaking news of the U.S. government shutdown. What the White House has to say about it.

HOWELL: Plus the war of words between U.S. President Donald Trump and the leader of North Korea, Kim Jong-un, seem to be a running threat through the president's first year in office. We'll have a look at what's ahead for U.S. relations in Asia. Stay with us.

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ALLEN: Welcome back to our viewers in the U.S. and around the world. You are watching CNN NEWSROOM live from Atlanta. I'm Natalie Allen.

HOWELL: And I'm George Howell following the breaking news this hour. The U.S. government shutdown here in the United States. This after the Senate failed to clear a critical vote on government spending.

ALLEN: Procedural vote late Friday night needed 60 votes to pass. It fell 10 votes short. Five Democrats voted with the majority Republicans. Four Republicans voted against the short-term funding bill. It's not known how long the shutdown could last.

But the House and Senate both return to work on Saturday. Throughout the day on Friday, there were signs that a government shutdown might be avoided.

HOWELL: But as the hours ticked away, all hope of a deal faded away. CNN's Jeff Zeleny explains.

(BEGIN VIDEOTAPE)

JEFF ZELENY, CNN SR. WASHINGTON CORRESPONDENT: On the one-year anniversary of President Trump's inauguration, a federal government shutdown. The Senate failed to pass the House-passed version to keep the government open. That funding deadline expired at midnight on Friday.

President Trump will be waking up on Saturday here at the White House, now presiding over his first government shutdown. Not since 2013 has there been a government shutdown.

Then, of course, it was President Obama's, a 16-day government shutdown, to be exact. At that point, then Donald Trump, private citizen Donald Trump, said it was the president's responsibility to lead the way out.

Now indeed it is this president's responsibility to do the same. Of course a predictable fight broke out Friday evening between Republicans and Democrats.

The White House called it a Schumer shutdown, of course referring to minority leader Chuck Schumer of New York. Senator Schumer called it a Trump shutdown. Regardless of what you call it, it is an indeed an American government shutdown.

But the White House came out with a blistering statement at the stroke of midnight about the shutdown.

White House press secretary Sarah Sanders said this, "Senate Democrats own the Schumer shutdown. Tonight they put politics above our national security, military families, vulnerable children and our country's ability to serve all Americans."

So, again, going after Democrats there, the White House press secretary. What they failed to mention were four Republicans; four key Republicans also voted against this in the Senate, Lindsey Graham, first among them, who, of course, had been close to this president.

Now the pathway forward is unclear. Senate majority leader Mitch McConnell proposing an three-week solution to February 8th. President Trump will still have to weigh in on that.

But the underlying issue remains the same, immigration. That is the central issue here that neither side has been able to agree upon. Democrats were pressing for immigration to be included in the spending measure. Republicans balked at that. That's why the shutdown is happening.

President Trump, starting his second year in office --

[03:35:00]

ZELENY: -- here in Washington, was scheduled to fly to Florida. Next week was scheduled to be in Davos, Switzerland. Both of those trips are in question as the shutdown now becomes official -- Jeff Zeleny, CNN, the White House.

(END VIDEOTAPE)

HOWELL: Jeff. thank you.

Now international diplomacy is never easy but in his first year as president, Donald Trump has put his unique spin on it, often going against established precedent.

ALLEN: You can say that again. Hala Gorani looks back at Mr. Trump's debut year on the international stage.

(BEGIN VIDEOTAPE)

TRUMP: It's going to be America first, America first.

HALA GORANI, CNN CORRESPONDENT (voice-over): It was a rallying cry of Donald Trump's campaign, slamming what he called bad and unfair international agreements.

UNIDENTIFIED MALE: Please raise your right hand.

GORANI (voice-over): In the year since Mr. Trump was sworn in as president, America first policies have changed global governance, extricating the U.S. from a network of alliances and pacts on key issues ranging from the environment to defense to trade.

UNIDENTIFIED MALE: The first one is withdrawal from the -- of the United States from the Trans-Pacific Partnership. GORANI (voice-over): Just days after taking office, Trump unraveled the TPP deal, set to reshape commerce through the Pacific Rim. It shocked Asian allies, now considering a regional trade deal with China instead.

Another trade deal that could be on the president's chopping block: NAFTA. The agreement between the U.S., Mexico and Canada has been law for decades. But Trump says he'll scrap it if it can't be renegotiated the way he wants.

TRUMP: So we'll see what happens with NAFTA. But I have been opposed to NAFTA for a long time.

GORANI (voice-over): In May, Trump alarmed European allies by attacking NATO members as freeloaders of U.S. defense spending.

TRUMP: Twenty-three of the 28 member nation are still not paying what they should be paying.

GORANI (voice-over): But perhaps the largest blow to international cooperation came in June.

TRUMP: The United States will withdraw from the Paris climate accord.

GORANI (voice-over): Trump's decision to quit a universal and binding climate change treaty isolated America. Near unanimous global support for the accord continued anyway, making the U.S. the only country in the world that will not participate by 2020.

In October, an international pact to limit Iran's nuclear program came under threat when Trump, who had been highly critical of the deal, punted the issues to lawmakers.

The year's final diplomatic break was likely the most combustible.

TRUMP: Today we finally acknowledge the obvious, that Jerusalem is Israel's capital.

GORANI (voice-over): The unilateral U.S. recognition was praised by Israel but sparked violent protests, rebukes from foreign leaders and international condemnation from the United Nations.

NIKKI HALEY, U.S. AMBASSADOR TO THE U.N.: The United States will remember this day in which it was singled out for attack in the General Assembly for the very act of exercising our right as a sovereign nation.

GORANI (voice-over): The U.S. ambassador's brusque words to the U.N. at the end of 2017 may be an indication of the year to come as America reshapes its historic role in multilateralism and global diplomacy -- Hala Gorani, CNN.

(END VIDEOTAPE)

HOWELL: Hala, thank you. Now as Hala reported, Donald Trump is taking a very different approach to international relations. And there's no place that it's more evident than in his dealings with North Korea and its leader, Kim Jong-un. Let's put all this into focus with our international correspondent, Matt Rivers, live on the border with North Korea in Dandong, China, and Paula Hancocks picking up the story in Seoul, South Korea.

Paula, first to you. We have seen a year of ratcheted-up rhetoric between the North Korean leader and the U.S. president. Talks are now happening, though.

What's the perception there in South Korea about how this year has played out?

PAULA HANCOCKS, CNN CORRESPONDENT: Well, George, it's interesting because if you look back just before the inauguration, there were official comments by North Korean regime members, who were actually saying we would like a new kind of relationship with the United States. Potentially we could talk to the Trump administration.

And there appeared to be hope that the U.S. and North Korea could become closer because there was this new U.S. president. Clearly that hasn't happened. It could not be more different when you look at it today.

The fact that in the New Year's Day address the North Korean leader, Kim Jong-un, effectively sidelined the United States when it comes to negotiation. He has turned his sights to the South Koreans. They're discussing now going to the PyeongChang Winter Olympics next month with a joint flag, with a joint --

[03:40:00]

HANCOCKS: -- women's hockey team. So certainly it's a very big change.

And when you look at the rhetoric we saw from the U.S. president over the last year, there have been personal insults, calling Kim Jong-un "Little Rocket Man." You even had a response from the North Korean leader in a statement after the U.S. president also said at the United Nations if it is necessary, we will totally destroy North Korea.

Relations between the two really couldn't be worse at this point. And that has changed significantly from when -- just before he was brought into power. There were hopes that there could be some kind of breakthrough. But clearly now the North Koreans are looking toward the fact -- they're not looking toward the U.S. They are still carrying on with their nuclear missile program. Kim Jong-un has said that he can hit every single U.S. city on mainland United States.

So certainly that relationship is dire.

HOWELL: Paula, thank you. Let's switch now to Matt.

Matt, what a difference a year makes, right? Perhaps they're seeing fewer trucks across that bridge behind you with these new and strong sanctions that the U.S. president has been pushing.

MATT RIVERS, CNN CORRESPONDENT: Yes, that's exactly right. That's an example of frankly the cooperation that the United States and China have been able to engage in at the U.N. Security Council, three different round of sanctions, increasingly tough against the Kim Jong- un regime. Both countries had to sign on and it does appear that we've seen, over the last couple of days here in Dandong that China is enforcing those sanctions.

That is no small feat, given the disagreement that frankly the United States and China still have over the best way to deal with the ongoing crisis just across that border there behind me. Despite all of those sanctions, you hear the Trump administration and President Trump himself just a couple days ago, telling Reuters that even after those sanctions there's more that Beijing can be doing.

So if you look at 2017 and what happened there it really kind of gives you a window into what might happen in 2018, assuming North Korea continues with its provocation, assuming the United States would want more sanctions, further sanctions if that continues to happen, will Beijing sign onto those?

And they really haven't tipped their cards or their hand in any way to suggest that they might. One other thing that we should look toward to in 2018 that didn't really come up in 2017 will be trade. The Trump administration could conceivably levy tariffs on Chinese imports in the next couple of weeks.

And does impact both countries' ability to cooperate on the ongoing crisis on the Korean Peninsula -- George.

HOWELL: Matt Rivers live in Dandong, China; Paula Hancocks following the story in Seoul, South Korea, thank you both for your reporting there on the Korean Peninsula. We'll stay in touch with you.

ALLEN: Another story we're following, coming up here, emotional testimony from young women athletes abused by the U.S. Team doctor entrusted with their care. An Olympic medalist faces him in court. We'll have her words in a moment.

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[03:45:00]

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ALLEN: Again our breaking news. If you're just waking up, your government is shutdown. The U.S. government is shutting down many of its services after the Senate failed to avoid the closure.

HOWELL: The procedural vote late Friday night needed 60 votes to pass. But the vote was 50-49, with five Democrats voting with the majority Republican and four Republicans voting against the measure. Congress will now get back to the drawing board to find a way to fund the government in the coming days.

ALLEN: Another story that we're following closely, "an army of survivors," that is what Olympic gold medalist Aly Raisman is calling the girls and women who have been testifying against Larry Nassar.

HOWELL: The former USA gymnastics team doctor admits to sexually abusing or assaulting young female athletes under the guise of medical care. At least 120 of his accusers are expected to address Nassar at his sentencing hearing. So far we heard more than 90 powerful victims' impact statements. Here's some of their heartbreaking and defiant words.

(BEGIN VIDEO CLIP)

ALY RAISMAN, U.S. OLYMPIC GYMNAST: Larry, you do realize now that we, this group of women you so heartlessly abused over such a long period of time, are now a force and you are nothing. As for your letter yesterday, you are pathetic to think that anyone would have any sympathy for you.

You think this is hard for you?

Imagine how all of us feel. You are so sick I can't even comprehend how angry I feel when I think of you. Imagine feeling like you have no power and no voice.

Well, you know what, Larry?

I have both power and voice. And I am only beginning to just use them.

JORDYN WEBER, FORMER U.S. OLYMPIC GYMNAST: Even though I'm a victim, I do not and will not live my life as one. I'm an Olympian, despite being abused. I worked so hard and managed to achieve my goal.

CHELSEA ZERFAS, NASSAR ACCUSER: Larry Nassar is a monster. I will never forgive you what you have done to me. You're a coward and a sickening man.

MADELINE JOHNSON, NASSAR ACCUSER: Because of you, every time I hear someone call me "kiddo," as you did, I think of the face you made while you were abusing me.

KASSIE POWELL, NASSAR ACCUSER: You stole my innocence, my voice, my trust, my joy and years of my life that I won't get back. So many times I have contemplated ending my own life, thinking that torturing myself would be better than accepting this truth because, at least then, I would have control over the pain.

AMY LABADIE, NASSAR ACCUSER: What Nassar did is affecting my whole life. It's hard to see into the future and think this will not affect me forever. ASHLEY YOST, NASSAR ACCUSER: Part of me wants to believe that this is

all just some horrible nightmare and everything is OK. The other part knows that's that what grooming does to you. It makes you second guess yourself and question reality.

KARA JOHNSON, NASSAR ACCUSER : I will never be able to get back what you have taken so effortlessly from me. And I'm finally starting to leave this dark place I have been in for so long. You cannot take advantage of me anymore, Mr. Nassar.

SAMANTHA URSCH, NASSAR ACCUSER: Today I ask that, for the rest of Larry Nassar's life, by receiving the maximum sentence possible, he thinks about how he changed all of ours because I'm not pretending it didn't happen anymore.

MARIE ANDERSON, NASSAR ACCUSER: My parents, who had my best interest at heart, will forever have to live with the fact that they continually brought their daughter to a sexual predator and were in the room as he assaulted me.

[03:50:00]

ANDERSON: And while we all are moving mountains, you, Larry, will have no choice but to sit in prison and wait to die.

(END VIDEO CLIP)

ALLEN: And those are just some of the accusers. Aly Raisman went out of her way to point the finger at the U.S. Olympic Committee as well.

We'll be back in just a moment.

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HOWELL: The U.S. government is now officially shut down. The Senate failed to pass a short-term spending measure late Friday night. It needed 60 votes to pass. But it only got 50 of those votes.

ALLEN: A handful of Republicans and Democrats voted against party lines, the White House blasted the outcome, calling Democrats, quote, "obstructionist losers." The Senate and the House will be back in session in a matter of hours. And we have yet to hear from President Trump since the government shutdown.

HOWELL: Democrats are calling it the Trump shutdown. Republicans call it the Schumer shutdown. The blame game continues.

The question though, where does the President of the United States stand on this very critical moment here in the United States?

Pope Francis now on what's being described as a pilgrimage of peace and unity in South America. He's in Peru, where he took a very strong stance against human trafficking and violence against women.

ALLEN: The pope also defended the indigenous --

[03:55:00]

ALLEN: -- people and environment of the Amazon. Rosa Flores is traveling with the pope.

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ROSA FLORES, CNN CORRESPONDENT: The heat and the humidity can be felt in the Amazon region of Peru. And so can the fervor for Pope Francis. More than 4,000 people from about 2 dozen indigenous communities flocked to see the pontiff.

The emotion could felt in the arena where this encounter happened. There was dancing; there were people who were crying, tears rolling down their eyes with emotion. I talked to one woman, who said that it was the deforestation in the Amazon that brought so much emotion to her.

As expected, Pope Francis talked about the themes in his encyclical on the environment, speaking against deforestation and illegal mining but also taking it beyond that, saying that it's not enough to just take care of the environment. You have to take care of its people. And saying that it's not OK to normalize violence against women.

POPE FRANCIS, PONTIFF, ROMAN CATHOLIC CHURCH (through translator): Let us not pretend to be distracted and let us not look away. There is much complicity.

FLORES: A culture of machismo, Pope Francis says, should not turn a blind eye to the contributions of women -- Rosa Flores, CNN, Puerto Maldonado, Peru.

(END VIDEOTAPE)

ALLEN: Our breaking news continues right after this. Back to our top story. The government shutdown.