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At Least 13 Dead In Kerr County As Flooding Swamps Central Texas; Hamas Submits "Positive Response" To Ceasefire In Major Step; Trump Signs His Sweeping Megabill At White House. Aired 5-6p ET

Aired July 04, 2025 - 17:00   ET

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


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[17:00:39]

UNIDENTIFIED MALE: This is CNN Breaking News.

JIM SCIUTTO, CNN HOST: Welcome to The Lead. I'm Jim Sciutto in today for Jake Tapper. Very happy July 4th to you.

We begin with our breaking news at the White House. At any moment, President Donald Trump will sign his megabill into law. It is his first major legislative agenda win of this term. And he will mark the occasion in true Trump July 4th style with a flyover of a B-2 bomber before a fireworks display later this evening. The bill narrowly passed in the House yesterday.

Its big ticket items include tax cuts, extending those from 2017 slashes to Medicaid and food stamps and boosting border security funding. The concerns over Medicaid cuts giving some Republicans pause, Democrats are already trying to turn those GOP warnings into the crux of their strategy to take back control of Congress in the midterms next November. But at the moment, it is a win and a big one for Trump and Republicans given that this is what they pushed for all along and by this what seemed ambitious July 4th deadline. CNN's Christian -- Kristen Holmes is at the White House.

So, Kristen, what do we expect to hear from the president at this victory lap bill signing?

KRISTEN HOLMES, CNN SENIOR WHITE HOUSE CORRESPONDENT: Well, Jim, that's exactly what you're going to hear. It is going to be his victory lap. And I'm not sure what you can see over my shoulder, but you can see the balconies there, that's where President Trump is going to come out and deliver remarks. Now, there was already going to be what they were calling a military picnic, their families, veterans here. We also know that he's hosting the pilots that actually dropped the bombs onto those Iran nuclear facilities, they'll be here today as well.

But now he has turned this into a bill signing just to give you an indication of how important this is not just to President Trump but to the entire administration. I mean, usually you see lawmakers going home to their districts at this time. We know Speaker Mike Johnson is here. We've seen other lawmakers milling about. But also we've seen almost his entire cabinet is here.

I just was looking at Doug Burgum, he's right over my shoulder, Scott Bessent, the Treasury secretary, they are filling this area out. And it goes to show you just how important this legislation is that they were all involved in what this was really a full court press to try and get this done. This is considered Donald Trump's legacy bill.

And as you mentioned, there are still a lot of things that Republicans are going to have to talk to their constituents and voters about, things that voters are very concerned about. But there are also things that President Trump had promised he would deliver on the campaign trail, including these no tax on overtime, no tax on tips, as you said, ramping up the spending to help with deportations, all things that he ran on.

So they're here in the audience and you're going to see a lot of pomp and circumstance. As you said, they have a flyover from those B-2 bombers, the same planes that launched those missiles into the Iran nuclear site. So it's a whole festivity here today. And President Trump was actually going to leave and go to Bedminster early, but now he's going to be staying and watching the fireworks from the South Lawn tonight.

SCIUTTO: Kristen Holmes at the White House, thanks so much.

Let's discuss now with our panel, Annalyse Keller, if I can begin with, you're Republican strategist, of course, and there's a lot in here, as Kristen was saying, that Trump ran on, right? I mean, increased border security, extending the 2017 tax cuts. There are some things he promised aren't in here. For instance, cuts on social -- taxes on Social Security benefits. I just wonder, do you believe this will be a lasting victory given even Republicans have concerns about the cuts to Medicaid and other benefits?

ANNALYSE KELLER, REPUBLICAN STRATEGIST: Yes. I mean, overall, sometimes these really big bills are hard for Americans to understand, you saw that with the Inflation Reduction Act, saw that with Build Back Better. I mean, I think there are elements of these really big pieces of legislation that just are difficult for people to follow and totally understand, so that's why it's going to come down to how it impacts them. There are going to be challenges, I think, with Medicaid in particular and some of the SNAP benefits, too. I think those are the two points that, you know, Republicans are really going to have to explain to their constituencies and especially those moderate Republicans.

SCIUTTO: Yes.

KELLER: You saw some of the fiscal hawks, they were not happy with how much this did or rather how much it didn't cut. So those conversations are going to continue. But again, I think it will be incumbent upon Democrats to explain their position to the American people why they think this is going to be so bad. And that will be kind of the narrative fight that plays out.

SCIUTTO: No question. So, Arshi, that was going to be my question to you. Have Democrats done that sufficiently or at least do you see the beginnings of a winning message for the midterms?

[17:05:08]

ARSHI SIDDIQUI, DEMOCRATIC STRATEGIST: Absolutely. I think that this package has really crystallized the Democratic path forward. And you look at not only -- I mean, the debate over tax cuts has always been, you know, doubling down on millionaires and billionaires, that's a given, that's always been a divide between Democrats and Republicans.

But if you look at the whole notion of -- the notion of Democrats versus Republicans, there were some shared concerns about the ideological concerns about this bill. Whether it was health care, millions of people losing health care, whether it was millions of people that were going to be impacted, whether it's the deficits flashing red signs on deficits --

SCIUTTO: Yes.

SIDDIQUI: -- or whether it was the ideological assault on renewable energy. In all of those instances, Democrats expressed concerns, but so did Republicans. And so when you saw all of that turning around it -- all of these members who spoke so passionately on the Republican side against this, they turned around and voted for the bill.

SCIUTTO: Yes, there were some quite vitriolic Republican criticisms of this bill --

SIDDIQUI: Yes.

SCIUTTO: -- in the days prior and then all of a sudden, yes votes. Arlette Saenz, you've been digging in to some of the lesser known provisions of this bill. So what's in there that is not in the headlines right now?

ARLETTE SAENZ, CNN CORRESPONDENT: Yes, you know, I think there's a lot of focus on the things that are fulfilling, Trump's campaign promises when it comes to extending the tax cuts, no tax on tips and overtime. Other elements that are included in this, they've really tucked away a lot of various provisions, some which people might like, some which others might not. But it includes writing up off -- writing off up to $10,000 interest in auto loans. Now, not every American is going to qualify for that, but if you're buying an average car, you might be saving 100 -- a couple hundred bucks a year. That is something that would be a tangible benefit to Americans.

But it also ends that Biden EV credit that he had signed into law. That will actually speed up the ending of that. That'll end at the end of September instead of in 2032 seven years from now. There's other issues, I thought one that was really interesting was the tax break for whaling captains. That is something that they specifically put in there to win over Senator Lisa Murkowski --

SCIUTTO: Yes.

SAENZ: -- of Alaska. They really tried to sweeten this for her as they were trying to get her into the yes column. There are other things like new fees for space launches and reentries into back on land for these commercial space companies like Tes -- or Space X and Elon Musk. We have heard Elon Musk rail against this bill. Him and President Trump have already been at odds very publicly --

SCIUTTO: Yes.

SAENZ: -- over it. And so there's a lot of these elements that are included in there. But I think repeatedly, what you're going to hear Democrats do is point back to those Medicaid cuts, and then you've already heard the different ways that Republicans are trying to message this. I think it's interesting when you hear a swing date district people like Mike Lawler and Derrick Van Orden in Wisconsin talking about how this will help rural hospitals that they've create, added more money for that. And so, I think the trick will really be in how they sell this to the American people and whether people buy those arguments.

SCIUTTO: Well, the way we know Republicans are concerned is they delayed some of the most painful cuts --

SAENZ: Right.

SCIUTTO: -- till after the midterms, so they know there's pain coming. I got noticed that within perhaps a minute or two, we are going to see President Trump. But before he does, Annalyse, and while we wait for that, do deficits matter to Republicans anymore? I mean, the CBO says it's going to add 3 trillion over 10 years. I know the Republicans contest CBO numbers, but in the past, CBO has been pretty decent, at least on the plus minus, right?

And I haven't heard anybody who says this is going to reduce debt over time.

KELLER: Yes.

SCIUTTO: Does it matter?

KELLER: I think -- I think what we saw is that Donald Trump matters more. I think Republicans do still care about debt and deficit. You have Ron Johnson, others who seem --

SCIUTTO: Yes.

KELLER: -- who seemingly won't stop talking about it, but when it comes down to it, I think they had to make the choice and it was Donald Trump in the end.

SCIUTTO: Yes. Does -- I mean, from a Democratic perspective, is that going to be part of the message, too?

SIDDIQUI: That is healer (ph) message.

SCIUTTO: Because, let's be frank --

SIDDIQUI: Yes.

SCIUTTO: -- Democrats added some money to the deficit in the Biden administration.

SIDDIQUI: They certainly did. But he was also dealing with COVID, right? So that will be a core message. And the deficit has a real impact on American families. And I think the difference between the deficit now is there are flashing red signs on what this deficit like we're in a danger zone.

SCIUTTO: Yes.

SIDDIQUI: And that is very good (ph).

SCIUTTO: Wall Street's concerned, too.

SIDDIQUI: Yes. Absolutely.

SCIUTTO: There's no question the bond market clearly is concerned.

SIDDIQUI: Absolutely.

SCIUTTO: So it sounds like it's a matter of not if but when there are financial consequences to that. And we know the president has been moved by the bond market before. We saw that with his tariffs earlier this year.

KELLER: Yes. But I think if we want to have a serious conversation about debt and deficit, we have to be talking about entitlements. I mean, that just kind of goes without saying, and it really is a hard thing to do. And I don't think either party is really comfortable with that conversation. You've been seeing this play out with Medicaid, and, you know, Medicaid is still going to grow next year.

It's just not going to grow at the rate that it would have otherwise grown. So I think that Republicans are going to continue to try and have those conversations, but if they don't really get serious about some of the entitlement reforms, it's difficult.

SCIUTTO: Well, listen, you know, when you talk entitlements, Social Security and Medicare, and neither Republicans nor Democrats --

[17:10:05]

KELLER: No.

SCIUTTO: -- are going to anger older vote, right?

SIDDIQUI: But I --

SCIUTTO: I mean, is that conversation ever going to happen?

SIDDIQUI: Well, I think the challenge is that's what you find in unified control by one party, right? So I think that's the other argument that Democrats are going to make is that their divided government will help restore checks and balances. And so -- and I think the only way you can do this -- have this type of conversation, is if it's a bipartisan discussion.

SCIUTTO: Well, there was a time when you didn't pass every bit of legislation via reconciliation --

UNIDENTIFIED FEMALE: Yes.

SCIUTTO: -- when you had to have legislative force trading to get stuff across the finish line, right? You might have traded some tax cuts for some budget cuts elsewhere --

SIDDIQUI: Absolutely.

SCIUTTO: -- to try -- but that, of course, is long past.

As we await the president, again, we were given a two minute warning. Sometimes two minutes can extend longer than two minutes, but we do expect him any minute now.

When you speak to folks inside that building, are they certain this is going to be a positive for them in the midterms?

SAENZ: Well, I think that what they want, this one, they find this to be a victory for President Trump and now they will figure out how to sell this to people in the midterm elections. But certainly Democrats are going to want to use the very words that you had. People like Thom Tillis, who eventually was a major no vote on this bill in the Senate. Josh Hawley, who was very critical about the Medicaid cuts, expected them to be featured in campaign ads going forward.

SCIUTTO: Sure.

SAENZ: We already know that there are various Democratic ad makers who are starting to prepare ads and will go out over the course of this next month trying to target those swing district members. But for the Trump administration, they really believe that this bill is making good on his campaign promises and they think that's what people are going to focus on.

I mean, we talked about the tax cuts about no tax on tips and overtime, but there's also a ton of money going to immigration enforcement. And we know that immigration and the border was a top issue for voters in the 2024 election. It still is a top concern. And so they are betting that will pay off with voters and that they will see those elements that Trump had promised to implement and that that may help Republicans in the midterms.

SCIUTTO: Speaking of the deficit, of course, some of the most critical criticisms came from Elon Musk as regards this bill. And Elon Musk is now talking again quite seriously, it seems, about founding a third party. He was tweeting just in the last 24 hours, "Independence Day is the perfect time to ask if you want independence from the two party, some would say uniparty system." He went on to say, "Our country needs an alternative to the Democrat Republican uniparty so that the people actually have a voice." He's got a lot of money to back that up.

Again, as we wait the president, Annalyse, I'll ask you first and then Arshi second, who would a third party threaten more, Republicans or Democrats, in your view? KELLER: That's a good question. Probably Republicans, but I -- but I could make an argument for either. I think there are a lot of people on both the right and the left frustrated with their parties. But I'm not sure if Elon Musk is going to be the great convener to unify that group of folks.

SCIUTTO: He's got a lot of money to at least --

KELLER: Certainly.

SCIUTTO: -- fund because one thing he's talking about is targeting specific swing races, saying, I think he tweeted, you know, perhaps a dozen seats as opposed to a national third party that would contest. Is that -- would that worry Democrats perhaps as much as Republicans in some of those swing districts?

SIDDIQUI: I think the strategy is a bit of a wild card and I think Elon Musk is a wild card. But I do think when you look back at Ross Perot --

SCIUTTO: Yes.

SIDDIQUI: -- he really -- he really did impact the debate on the deficit. So I think that's where actually Elon Musk's real potential is to impact the debate.

SCIUTTO: And you might say that Ross Perot turned that election from George H.W. Bush to Clinton, right? I mean

SIDDIQUI: Absolutely.

SCIUTTO: -- you know, at least in the national numbers, what -- of course, he didn't win himself, but he did impact the race.

Again, as we wait the president just a few minutes past his two minute warning, our Kristen Holmes remains at the White House.

Kristen, President Trump, how does he view this as he gets to the midterm? President Trump will claim a win and we're going to see that a lot today. Does he have any concern that, for instance, benefit cuts will impact his party come November next year?

HOLMES: Well, a couple of things to keep in mind here. One, President Trump is not on the ballot, so -- and he's not going to run another term after this, so those kind of concerns, we know that President Trump really cares about one person winning an election and it is himself.

But keep in mind another part of this, which is that when I talk to White House officials and administration officials and Republicans, they tell me that they understand at this point that they are losing the battle in messaging when it comes to this bill, they have been spending all of their time focused on getting this bill passed, and they haven't been spending time trying to spin up support for any of the things that perhaps their voters will like. So what you're going to start to see here in the next couple of weeks, months, is going to be a full court press. And it's not going to be just coming from the White House or just coming from specific candidates who are running, it's also going to come from outside Republican groups.

And what they're going to be doing is really trying to change the narrative on this bill. Again, they are clearly, when I talk to the White House, they are clearly aware that this bill is not incredibly popular among voters. So you're going to start seeing that kind of press, looking at advertisements, social media blitzes, campaigns in various areas, particularly swing districts or areas where they believe it needs to be really explained in a certain way.

[17:15:18]

We also know that these lawmakers, when they came to the White House, they expressed this concern to the administration. Unclear if they said it to President Trump himself, but to the others that were in the room, how are we going to be messaging this? And that has been a conversation that had been administration officials have been having directly with lawmakers. For example, one of the conversations was around Medicaid and talking about how each state is still going to be able to allocate those funds. Yes, Medicaid is a federal fund that will go to the state.

But one of these talking points that they're going to start pushing forward is that each state will determine where they want those funds to go. So if you're talking about specific hospitals, et cetera. So these are just touch -- the tip of the iceberg here on what these conversations are going to look like, but you're really going to see a ramp up in how Republicans are messaging this come the next couple of weeks.

SCIUTTO: Kristen Holmes at the White House, thanks so much.

As we continue to wait, the president about to do his victory lap as he signs this megabill. We're going to take a short break and we'll be right back.

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SCIUTTO: President Trump there on the balcony of the White House attending a military family picnic where he is expected to sign his sweeping domestic policy bill. There alongside the First Lady. Let's listen in.

UNIDENTIFIED MALE: Ladies and gentlemen, Master Gunnery Sergeant Kevin Benier, accompanied by the President's own United States Marine Band, will now honor America with the singing of our national anthem, followed by a flyover consisting of a B-2 Spirit bomber from Whiteman Air Force Base, escorted by two F-35 fighters in honor of all our military personnel who participated in Operation Midnight Hammer and who are currently serving both home and abroad, protecting our nation's freedom.

(SINGING)

[17:21:13]

SCIUTTO: So you just saw a B-2 bomber fly over the White House. Of course, the B-2s were involved in those strikes on Iran's nuclear sites just a couple of weeks ago. We are now awaiting a second flyover.

As we do, Annalyse, that's a deliberate reference, I imagine, to fly one of those B-2s now is a quite visible and audible reminder of those Iran strikes. That's one that this president very much views as a win.

KELLER: Yes, I think so. I think he's had a good couple of weeks, you know, between where gas prices are, when Americans are traveling all over the country, they're at a four-year low. The stock market is doing well. He wants to remind people of his foreign policy wins.

UNIDENTIFIED MALE: Ladies and gentlemen, the President of the United States --

SCIUTTO: There he is. Let's listen in.

UNIDENTIFIED MALE: -- and First Lady Melania Trump.

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Well, thank you very much. And that is especially after what happened just a week ago. When you look at that big, beautiful plane and the other ones were something. It was an incredible mission. And I think I can say very proudly, and I don't have to quote the polls, that our country is more proud right now than it's been in many, many years.

We have pride, we have dignity, we have something that's happened miraculously so fast. You know that our military now is the most sought after job there's ever been serving in our military. One year ago, people didn't want to join our military, they didn't want to join our police or firefighters, they didn't want to join anything having to do with our country, and now, as you probably know, the enlistment is at an all-time record. We're packed, we're full.

And I just think that's so important because that was so sad one year ago when I heard those statistics, we had a different president, but nobody wanted to join, and now we're at a record. And I will say that I just left NATO where we had a tremendous experience. They're -- they've agreed to put up over a trillion dollars a year. They went from less than 2 percent to 5 percent, and nobody thought that was possible. And they told me very strongly the leaders of a big part of the world, very respected people all, they told me that, you know, one year ago your country was dead and now you have the hottest country anywhere in the world.

So that's the way it is and that's the way we like it. And it's only going to get hotter. I promise you that.

After that spectacular display of American power, let me just say that God bless the United States military and God bless the USA. God bless the USA. And to all Americans, I want to wish you a very happy Independence Day. Happy Fourth of July. This is going to be something special.

There's spirit in this country. We haven't seen anything like it in many, many years, in decades.

Let me also express our gratitude to our magnificent First Lady. She worked very hard to make this all work.

And we have a fireworks display about 9:00 tonight. I hope you're all going to be around and watch it. I know our congressmen and our senators who are standing right here, so many of them, they did such a great job. They're going to be here. I guarantee you, they're not leaving, they're not leaving.

Thanks as well to the National Park Service, the USO and countless friends and distinguished guests. We have so many people in the audience that have so much to do with the success of our country. We've I think had probably the most successful almost six months as a president and the presidency, I think they're saying it was the best six months. And I know for a fact they're saying the last two weeks there has never been anything like it as far as winning, winning, winning.

[17:25:26]

So as you know, two weeks ago, our incredible Air Force pilots conducted one of the most successful military strikes in all of history, Operation Midnight Hammer. And that's exactly what it was, it was a hammer. This evening we're honored to be joined by 150 airmen and their families from Whiteman Air Force Base in Missouri, home of the B-2 bomber. And we've kept them a little bit on guard. We kept them a little bit -- let's be a little bit quiet about it, but if you want to raise your hand very quickly, raise your hand because you people are just incredible.

They don't want to be in disguise.

SCIUTTO: You're seeing Trump at the White House there giving a tribute to --

TRUMP: You know, so we don't have to do that. They're looking at us as if we're bunch of babies.

SCIUTTO: -- airmen and women following a flyover from B-2 bomber as he references two weeks ago U.S. strikes on Iranian military sites. We're going to continue to monitor the president's comments there alongside the first lady.

We are also following other breaking news. Officials say some 20 children are unaccounted for at a camp in Texas after heavy rain overnight led to just catastrophic flooding. We're going to check in on that story right after this break.

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[17:31:09] SCIUTTO: We are following breaking news. Officials say some 20 children are unaccounted for at a camp in Texas. This after heavy rain overnight led to just catastrophic flooding there. The Texas Lieutenant Governor says 14 helicopters, 12 drones, more than 500 people from various units have been rescuing adults and children, some of them out of trees, near the camp in Hunt, Texas.

(BEGIN VIDEO CLIP)

LT. GOV. DAN PATRICK (R-TX): For the parents who are waiting, particularly that had children in Camp Mystic, Camp Mystic is a camp that has over 750 kids. Right now there are 20-some that aren't accounted for. That does not mean they've been lost. They could be in a tree. They could be out of communication. We're praying for all of those missing to be found alive.

(END VIDEO CLIP)

SCIUTTO: I can only imagine how the parents are feeling right now. The floods in Kerr County have already killed at least 13 people. Flooding risks remain high across central Texas' Hill Country and heartland this afternoon and evening. This according to the latest forecast from the National Weather Service.

CNN's Ed Lavandera, he is on his way to some of the worst of this flooding as he drives through. And Ed, I know you were listening to updates from authorities there. A huge effort underway. What's the status?

ED LAVANDERA, CNN SENIOR NATIONAL CORRESPONDENT: Well, Jim, it's a nightmare scenario and the shock waves of this are being felt all across the state, as you heard the Lieutenant Governor 750 kids. Camp Mystic is an all-girls camp just down river. There's another camp that's all boys that also had evacuation efforts. So, you know, these are places that for years and years families have sent their children to.

It's a very popular kind of summer camp area. So the shock waves of all of this really being felt all across the state as parents and families are trying to scramble to get the latest updates on their children and other families who are obviously have been deeply affected by all of this. So right now, those rescue efforts are continuing.

The rain has continued to fall throughout much of the day as well. So that is also hampering rescue efforts. As you mentioned there off the top, there is a squadron of boats on the river, drones, helicopters being used to -- to rescue people as well. Very dramatic and -- and painful situation that continues to -- to unfold and will continue to unfold here into the evening, Jim.

SCIUTTO: Listen, I -- I can only imagine folks listening to this right now must be thinking of their own kids in camp as I am. This took place overnight. Is that right? Is that why -- is that one of the reasons why things were so dangerous? LAVANDERA: Well, it was also just the amount of rainfall that fell so quickly. Obviously, the evening darkness probably made it much more difficult to be, for a lot of folks in this area to be fully aware of what was unfolding along this river. And -- and the amount of rainfall that has fallen -- has also fallen on a very vast area of central Texas and the Texas Hill Country. All of that water making its way downstream through the Guadalupe River and that -- and that river kind of winds and bends its way through the Texas Hill Country.

It's in those bends where you probably have the worst case scenario of -- of the rushing water folding -- hurling -- going down the river and then coming out of its banks. So that was -- that's one of the reasons why this becomes such a treacherous situation for people who are along the banks of -- of the river. We see this occasionally, but the, you know, these -- these specific camps and these summer camps are very close to the river and that's why they've been some of the area's hardest hit in the storm.

[17:35:00]

SCIUTTO: Well, listen, we know you're on your way there and we'll await further updates. Our Ed Lavandera on the scene. Again, Texas authorities say at least 20 children missing from a Texas summer camp following these flash floods. They do say that a gargantuan rescue effort is underway involving drones, helicopters, and other units. We'll bring you updates as we have them.

Well, now to the Middle East. A potential step towards a cease-fire in Gaza. Hamas has now submitted a quote, positive response to the latest proposal, this according to mediators in those negotiations. Israel previously had accepted the U.S. proposal, which lays the groundwork for more detailed talks down the line.

CNN's Oren Liebermann is in Jerusalem. Oren, you know, we've seen this pattern before, right? And it's not a guarantee Hamas signs on to this, but -- but it is a step in the right direction. What's your understanding of the status of the negotiations?

OREN LIEBERMANN, CNN PENTAGON CORRESPONDENT: I would go a bit farther than that, Jim, and call it a major step in the right direction with a positive response from Hamas coming just about 90 minutes ago. I'll read you part of a short statement they officially put out earlier this evening. The movement, that is Hamas, has delivered its response to the brothers mediating, which was characterized as positive.

The movement is fully ready and serious about immediately entering a new round of negotiations on the mechanism for implementing this framework. What does that statement say? It means they've accepted the broad outline put forward by Qatar earlier this week. Israel had accepted that on Tuesday when one of Prime Minister Benjamin Netanyahu's closest confidants was in the U.S., and now Hamas is responding positively.

We have learned from a Palestinian American official that they have requested some adjustments to the framework that we've seen, but that official says it's not expected to derail the efforts, and we also heard from an Israeli source familiar with the negotiations earlier today that Israel was expecting a positive response with some adjustments to the language that, again, were not expected to derail this latest effort.

So there is a tremendous positive attitude here amongst, not only it seems, Israel, but also negotiators to try to move this forward, but it's not done yet. The next step would be what are called proximity talks, when negotiators go back and forth between Israel and Hamas to hammer out the final details. That is key here, Jim, broadly speaking. It is a 60-day ceasefire, 10 Israel -- 10 living hostages will come out during that time, 18 deceased hostages, in exchange for Palestinian prisoners and detainees, and immediate work to get to a permanent ceasefire and an end to the war, Jim.

SCIUTTO: If they do come to an agreement on this proposal, how quickly might we expect it to play out then? How soon?

LIEBERMANN: It could potentially play out quite quickly here. The proximity talks, which are hammering out those final details, could move very rapidly, and we have seen President Donald Trump suggesting or even predicting that it might be hammered out sometime next week. So, there is an effort here to move quickly and a desire, it seems, to get to those proximity talks as soon as possible. They would take place either in Cairo or in Doha, with negotiators shuttling back and forth to try to hammer out the last details.

Could it still fall apart? Yes, it could, but this is a major development and a major step forward here. And, of course, Prime Minister Benjamin Netanyahu this weekend will head to Washington where he will meet Trump on Monday. Jim, you have to imagine that Trump would like nothing more than to declare that his teams and his efforts have brought about a ceasefire after more than 630 days of war in Gaza.

SCIUTTO: No question. Well, listen, like you, I've been in touch with some of the hostages' family members, and this would certainly be long-delayed good news. Oren Liebermann, in Jerusalem, thanks so much.

[17:38:46]

Right after the break, we're going to go back to the White House to hear from the President as he celebrates and signs his big, beautiful bill.

(COMMERCIAL BREAK)

SCIUTTO: In our Politics Lead, we are continuing to monitor President Trump there at the White House as he speaks on Independence Day ahead of him signing his sweeping megabill into law, which of course just passed yesterday. We'll continue to monitor those comments.

But turning to our National Lead, elsewhere across the country, the July 4th barbecues, pool parties are well underway. Last-minute travelers hoping to catch tonight's big fireworks displays will join a record breaking number of Americans expected to travel for the 4th of July weekend. CNN's Pete Muntean is with me. Pete, very happy 4th to you. So -- so yet one more travel record goes down.

PETE MUNTEAN, CNN AVIATION CORRESPONDENT: Yeah, you know, and it'll be a big one. America got a birthday gift here. Very few air travel snags.

SCIUTTO: Yeah.

MUNTEAN: Even in spite of those storms in Jersey and Texas. And here are the latest numbers from FlightAware. About 3,000 flights delayed, 115 flights canceled. That number is very low, although the numbers could go up with the FAA anticipating thunderstorms in Florida later on today. This is the live look at Flightradar24.

The FAA anticipated today being the lightest traffic of the week, but the big day nonetheless. American Airlines says it plans to serve about a half million customers today across 5,000 flights, a total of 40,000 flights expected to be handled by the nation's air traffic controllers today, many of them working mandatory six-day weeks of 10- hour shifts. Compare that to the 50,000 flights yesterday.

Earlier ground stops at Newark and Reagan National Airport have been canceled, but there could be some flights held later on today when fireworks kick off in D.C. and New York, but the FAA says that should be brief. The emerging air travel story right now is in France. Air traffic controllers are on strike for the second day, and they're citing staffing shortages and aging equipment, same issues here in the U.S.

[17:45:16]

Right now, French airports top the cancellation chart. French officials directed airlines to cancel about 40 percent of all Paris flights, a total of 1,500 flights have been canceled over the last two days. So a real disproportionate impact there in France and a big disproportionate impact on some of the budget carriers like Ryanair, too.

SCIUTTO: Yeah, that would -- those -- those cancellations and delays would definitely -- would definitely spoil a vacation. No doubt. Pete Muntean, thanks so much as always. We're going to keep -- continue keeping an eye on it.

So what happened on this day in history 250 years ago? Here's a hint. George Washington played a starring role. We're going to have a closer look coming up.

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SCIUTTO: Trump is now signing his sweeping domestic policy bill into law. Let's go back to the White House.

(BAND PLAYING)

(CHEERING & APPLAUSE) REP. MIKE JOHNSON (R-LA), HOUSE SPEAKER: Mr. President, this is the gavel we use to enact the big beautiful bill and I want you to have that.

(CHEERING & APPLAUSE)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Are we ready?

UNIDENTIFIED FEMALE: We're ready.

TRUMP: Are you ready?

UNIDENTIFIED MALE: Yeah.

UNIDENTIFIED FEMALE: We are ready.

CROWD: Yeah.

TRUMP: Have a good time, everybody.

(CHEERING & APPLAUSE)

[17:50:02]

SCIUTTO: All right. President Trump has just signed his big beautiful bill into law. You saw him there. Let's listen in.

TRUMP: Unbelievable people. Mary, hi Mary. How's Scott doing? Good job? Scott, how's the economy? OK?

UNIDENTIFIED MALE: It's going to get better.

TRUMP: It's been amazing. Thank you very much everybody. Have a good time. Happy 4th of July.

UNIDENTIFIED MALE: Happy 4th.

UNIDENTIFIED MALE: Thank you sir.

SCIUTTO: You saw him there handing out the pens he used to sign that legislation out to several members of Congress including House Speaker there, Mike Johnson. Our Kristen Holmes is at the White House. Lots of smiles from the President and fellow Republicans.

KRISTEN HOLMES, CNN NATIONAL CORRESPONDENT: Yeah, Jim, I mean one of the things that we heard President Trump say just moments ago before he signed this was that this bill was the greatest victory yet of his second term and that really is what his team believes and in fact if you talk to a number of them, they believe this is the biggest thing and the greatest victory they've had both terms combined because as we've continued to say, President Trump believes that this is going to deliver on those campaign promises.

Now, something interesting to note, as we know, this bill is not popular with voters. We have seen the polling on it. I talked to a number of Republicans even here today who have said that they believe that people aren't aware of what's in the bill. So the spin on how they are going to get voters to digest this bill and approve of this bill has already begun. We had President Trump standing up there at one point saying, don't believe anything that you hear about this bill.

It's the most popular bill in history. Of course, as we know it is not the most popular bill in history but we will see how voters receive this bill as some of the policies in it begin to actually take place. That is what Republicans are hoping for in fact because they believe that some of these will help them get voters in the midterms but again as I said before, they are aware that they have been losing the messaging battle when it comes to this bill.

Now, one other interesting point I heard from President Trump here is at one point he said or indicated at least that maybe the size of the bill because this is an enormous bill actually helped him get it done saying that because there was stuff that Republicans wanted in it that they were forced to vote for it even if there was stuff they also didn't want in it instead of having a series of smaller bills.

So just to note there because there had been a lot of questions about why they did it in this format this giant bill versus the smaller bills. President Trump believes that helped him actually get it across the finish line.

SCIUTTO: Kristen Holmes at the White House there, the President putting -- putting on his familiar Make America Great Again hat as he walks away.

Well, July 4th is of course a major holiday because it represents when the Founding Fathers adopted the Declaration of Independence in 1776. But 250 years ago from today George Washington arrived in Massachusetts to take command of the new Continental Army and inspired his troops to understand what it truly meant to be an American.

I want to bring in now Lindsay Chervinsky Executive Director of the George Washington Presidential Library at Mount Vernon. Thanks so much for joining.

LINDSAY CHERVINSKY, PRESIDENTIAL HISTORIAN: Thank you for having me.

SCIUTTO: All right. So take us back 250 years ago, July 4th, 1775, George Washington just arriving in Cambridge about to take command of the Continental Army but an army that at that stage and this is of course a year before the Declaration of Independence, doesn't really have a shared culture. How did he manage to bring that together?

CHERVINSKY: Yeah, it's such a great point. And we forget sometimes that the war was raging for over a year before the Declaration of Independence was actually passed.

SCIUTTO: Yeah.

CHERVINSKY: And so, you know, fighting a war, creating an army, creating a national identity when you're not yet a thing is really -- was really a real challenge and one of I think Washington's primary tasks. It wasn't enough to say we're not British. You have to actually say what you are.

SCIUTTO: Yep.

CHERVINSKY: And so he started by issuing his second general order on July 4th, 1775, a year before the Declaration, announcing that the army was a thing. It was no longer just a mishmash of militias. It was now the Continental Army and Congress had created it and urged them to set aside their regional differences and come together for one common cause.

SCIUTTO: And how did he define that? I mean people often talk about how America is an idea, right? I mean was there already that sense at that time?

CHERVINSKY: Well there was a sense that they were fighting for an idea. Today we think of, you know, the principles laid out in the Declaration of, you know, equality and liberty for -- for all people. But that wasn't necessarily as well defined at that moment but they did understand that they were fighting for something, certainly for freedom.

They felt that they had been treated as second class citizens within the British Army. The rule of law was really important to them. They felt like the -- the British system had crushed their -- their legal rights and so these are all elements of what we think of as the American idea. They just hadn't necessarily been packaged yet.

[17:55:03]

SCIUTTO: So why here -- what was the particular collection of qualities that George Washington had to -- to make him the man who met that moment?

CHERVINSKY: Well he had three critical qualities that caused Congress to pick him as commander-in-chief and then he had some intangibles that are really hard for us to sometimes define. So the first was he was born in the United States. He had never served in the British Army officially so his loyalty was unquestioned.

He of course had military experience if you're going to appoint someone as the commander you want that. And lastly he was from Virginia and they needed to prove that this contest was not just a Massachusetts contest. It wasn't just rabble rousers in Boston throwing tea in the harbor but actually it was a unified fight and what better way to do that than to bring someone that represented the largest and most powerful state.

SCIUTTO: Did it make a difference that he was tall? I mean sometimes you read that -- that had --

CHERVINSKY: Yeah.

SCIUTTO: -- a little bit of an intangible effect.

CHERVINSKY: Well so when we think about those intangible qualities, if someone looks like a leader when they walk in the room they have presence --

SCIUTTO: Yeah.

CHERVINSKY: -- they're noticeable, you can't take your eyes off them. They have bearing. Those are things that are hard to teach, they're hard to define but they do make a difference when you're commanding someone especially in battle.

SCIUTTO: True. He famously turned down a third term, right? Which created a tradition that took many decades before that was enshrined as a constitutional amendment but he could have I mean arguably probably could have stayed forever, right?

CHERVINSKY: Yeah.

SCIUTTO: How important is that to his legacy?

CHERVINSKY: Oh it's essential. You know, he actually turned down power twice. So he returned his commission at the end of the revolution in December of 1783 and he could have easily become a military dictator and most people did. This is the age of Napoleon. So that was the standard expectation and confirmed the character of the republic as a civilian government and then when he did so again as president, he was confirming that we were not going to have elected kings.

He could have stayed in office for the remainder of his life which would have established that expectation for all that followed him but he understood that the peaceful transfer of power is what it means to be a republic and the American people had to be taught to do that and so he wanted that process to happen in his lifetime.

SCIUTTO: I was going to ask you if his legacy, if those principles are still relevant today but I think you just answered that question.

CHERVINSKY: They're timeless. They are I think the cornerstone of what it means to be a republic. It's you know civilian control of the military and peaceful transfer of power and both of them go back to Washington and both of them remain essential today.

SCIUTTO: Lindsay Chervinsky, thanks so much.

CHERVINSKY: Thank you so much.

SCIUTTO: A July 4th tribute to George Washington. Well, coming up next, a preview of CNN's 4th in America special with musical performances from some of the biggest stars and fireworks from coast to coast when we come back.

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