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U.S. Government Runs Out of Funding and Shuts Down; U.S. President Threatens Permanent Mass Layoffs Amid Shutdown; More Than 60 Dead After 6.9-magnitude Quake in Central Philippines; North Carolina Homes Collapse Amid High Surf From Hurricanes Imelda and Humberto; Trump Claims White House Close to $500 Million Deal With Harvard; Journalist Injured After ICE Agents Shove Reporters; Trump Announces TrumpRx Site for Discounted Drugs, Deal With Pfizer to Cut Drug Costs for Americans. Aired 2-3a ET

Aired October 01, 2025 - 02:00   ET

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

(COMMERCIAL BREAK)

[02:00:25]

ANNOUNCER: This is CNN breaking news.

LYNDA KINKADE, CNN ANCHOR: Hello and welcome to our viewers joining us here in the U.S. and all around the world. I'm Lynda Kinkade. Great to have you with us.

We are two hours into the U.S. government shutdown, and it's too early to know how long it will last. Both sides are blaming each other.

Republican speaker of the House quickly pointed the finger at Democrats posting on X that they have officially voted to close the government, which is not true. What Democrats voted against on Tuesday was a Republican funding bill. Republicans voted down the Democrats spending plan to extend health care subsidies. With the government now partly out of commission, certain programs and payments will be put on hold, but the U.S. president warns some cuts could be both painful and permanent.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: We can do things during the shutdown that are irreversible, that are bad for them and irreversible by them, like cutting vast numbers of people out, cutting things that they like, cutting programs that they like.

(END VIDEO CLIP)

KINKADE: Party leaders are doubling down on their arguments, releasing statements as soon as the clock struck midnight in Washington. Democrats say they're willing to make a deal, as long as it addresses health care. The top Republicans say they will not negotiate until the government reopens. Here's some lawmakers and what they had to say before the shutdown.

(BEGIN VIDEO CLIP)

SEN. CHUCK SCHUMER (D-NY): He is admitting that he is doing the firing of people, if God forbid it happens. He's using Americans as pawns, as I said. Democrats do not want to shut down.

REP. MIKE JOHNSON (R-LA): We want to keep the government open to serve the people. Chuck Schumer and the Democrats have decided to close it. We'll see how long this standoff continues. But it's real people that get harmed in the process.

(END VIDEO CLIP)

KINKADE: Here to talk about the impact of the shutdown of CNN's newest anchor Elex Michaelson. Good to have you with us, welcome to the team.

ELEX MICHAELSON, CNN ANCHOR: Good to be with you for the first time. Thank you so much.

KINKADE: So, there was no last minute negotiations leading up to this deadline. The lawmakers basically left, no sign of a compromise. So, what does that tell us about the political dynamics at play and who is going to be hardest hit?

MICHAELSON: Well, both sides think that it's good for them. Democrats think that this is good that they can fight on this issue of health care. Republicans think that this is good because they think the Democrats are going to be blamed for shutting down the government.

Ultimately, though, this impacts a lot of regular people who may not care that much about politics one way or another. Let's talk about who is not really impacted. These are, "essential services." These will keep on running.

So, we're talking now about Social Security, Medicaid, they will stay as normal. Veteran Services, unemployment, National Weather Service, the Department of Homeland, security, all them continuing to operate the way you would expect.

But here's what might be impacted. Air travel folks already in the FAA, they're going to continue working, but they may not get paid, so there's a hiring freeze for new air traffic controllers. What does that mean for you? Well, it could mean flight delays.

The National Parks could temporarily shut down. So, if you've got a trip to a place like Yosemite or Yellowstone, that could impact you in a big way. If you need government documents that could impact you, the FDA will stop some inspections, stop processing new drug applications. So, all of that impacts everyday Americans.

KINKADE: And of course, we heard from the U.S. president ahead of this shutdown. I just want to play some of that sound.

(BEGIN VIDEO CLIP)

TRUMP: So, the last thing we want to do is shut it down. But lot of good can come down from shutdowns. We can get rid of a lot of things that we didn't want, and they'd be Democrat things.

(END VIDEO CLIP)

KINKADE: Elex, he's said a lot of good can come from a shutdown like this. You've spoken about some of the pain that people might experience. What good is he referring to?

MICHAELSON: Well, look, the Republicans, for a long time have felt like the government is too big, too bloated. There's a lot of inefficiency, and they don't like a lot of bureaucrats.

So, the idea of the government shutting down is not necessarily bad to a lot of Republicans, and a lot of the programs are programs that Democrats have championed, most federal workers impacted are Democrats themselves.

And so, this idea of having an excuse to shrink it is something that a lot of Republicans think is a good idea.

KINKADE: And of course, the Democrats are demanding a commitment to renew health insurance as subsidies for low income earners, and Republicans have resisted that. Just talk us through the fight that led to the shutdown.

[02:05:09]

MICHAELSON: So, there are these subsidies to make Obamacare more affordable for a lot of folks. They're set to run out. The Republicans did not extend them when they passed their, "Big, beautiful bill" earlier. Democrats say this is going to harm a whole lot of folks, and so we want to fight and so we're not going to keep the government open unless you fix this.

They think it's a winning issue for them. A lot of their base feels like they have been losing on issue after issue, been rolled by the Republicans, and that this is the hill metaphorically worth dying on. Republicans say those subsidies don't really work and that this is, you know, not a good idea to go forward.

KINKADE: So, I have to wonder, who voters are going to blame for this shutdown? Is it going to be the Republicans? Is it going to be the Democrats? Who's most at risk here politically speaking?

MICHAELSON: Yes, well, we got a new poll that we want to put up on the screen that shows it's kind of split. A lot of this depends on what party you are. Some blaming Trump in the GOP, some blaming the Democrats, something both equally. 33 percent haven't heard enough to say. That last 21 percent could be important.

The spin game you saw the leaders of both parties out tonight, both of them on CNN tonight, trying to get ahead of the messaging on this of who is ultimately going to be blamed for this.

We know a couple things are true. One, government shutdowns are not popular, and whoever is seen as blamed for that usually takes a big political hit. But two, health care cuts are usually not popular either, so the

Democrats think that that will overweigh the other.

But traditionally, when the Republicans shut down the government, when they pulled this thing, it usually hurt them politically. So, we'll see as this drags on. But CBO estimates 750,000 people could be furloughed every day, federal workers every day.

And so, that starts adding up. And Republican or Democrat, if you're expected to be paid for your work, and all of a sudden you're not, you could be pretty angry.

KINKADE: And if you listen to the president, some of those people may not even have a job in the coming weeks.

MICHAELSON: Right. And for some folks in the Republican Party, they think that's a good thing, but that could impact people in a real, real way, if they start actually firing people in mass.

KINKADE: Elex, it's great to have you here, and it's great to have you on our team. Thanks for joining us.

MICHAELSON: Thanks, Lynda. Appreciate it.

KINKADE: I want to discuss this further with Caroline Heldman, a Democratic strategist and professor of critical theory and social justice at Occidental College. Also joining us is Mike Madrid, co- founder of the Lincoln Project and founder of the Latino Working Class Project. Great to have you both with us.

CAROLINE HELDMAN, PROFESSOR OF CRITICAL THEORY AND SOCIAL JUSTICE, OCCIDENTAL COLLEGE: Good to see you.

MIKE MADRID, CO-FOUNDER, THE LINCOLN PROJECT: Good to be with you.

KINKADE: Caroline, I want to start with you, because this is the first shutdown we've seen in the U.S. in six years. It's going to affect thousands of people who won't be getting paychecks and certain benefits. How does this shutdown affect everyday people in ways that may go unseen or unreported?

HELDMAN: Well, Elex did such a great job kind of running down the list that if you're going to be flying, you might run into TSA delays. The national parks are going to be understaffed, perhaps closed with garbage overflowing, if the previous shutdown is any indication.

But also, all of these folks in the military and all of these other jobs where they're simply not going to be getting paid, but will be negotiating with their banks and their landlords, their lending agencies to make sure that things are still on track. That will have a ripple effect. We do know that the last time the government was shut down, which was under the Trump administration over the building of his wall. It was historic. It was the longest, right 35 days, and it cost us $11 billion in economic loss.

So, the ripple effects of this will obviously span out. But also, just to point out, there will be some social safety net programs that Trump said he will be going after, right?

So, he didn't mention that by name, but women -- WIC, Women, Infants and Children, support for low income mothers, as well as SNAP benefits or food stamp benefits.

So, we should expect some pretty severe impacts if this drags out.

KINKADE: Yes, I want to ask you a little bit more about that in a moment, Caroline, but I want to go to Mike, because you've been critical of blatant political bias in the past. I just want to play some sound of what Democrats had to say last time they were facing a government shutdown.

(BEGIN VIDEO CLIP)

SCHUMER: To hold these people hostage instead of just letting them do their jobs, which they want to do, while we work out our differences. So wrong.

UNIDENTIFIED FEMALE: Shutdowns are not good for the economy.

SEN. JACK REED (D-RI): Shutdowns cost taxpayers billions of dollars per week.

SEN. CORY BOOKER (D-NJ): The longer that this shutdown goes on, the more Americans that will be affected.

[02:10:04]

SEN. AMY KLOBUCHAR (D-MN): Critical services and our economy are being threatened with poison pill partisanship. Shutting down the government should not be a negotiating tactic.

SEN. ELIZABETH WARREN (D-MA): Hostage taking is all they have left.

(END VIDEO CLIP)

KINKADE: Now the White House compiled that, and they were playing that in the Briefing Room today. Mike, how have the tables turned? And how do you interpret this shutdown? Is it just gridlock or perhaps something more destructive?

MADRID: I think it's something more destructive. I think it's something that, frankly, the White House has wanted. It's clear that they have not been negotiating in good faith, and certainly weren't in the last waning hours heading up to this shutdown.

Their calculation, it would seem, as they've already got their numbers baked in, they don't feel that their numbers can go any lower. Trump and Republicans are hovering around historically low range right now. They're at base Republican support, but Democrats are at a historic low range as well.

And I think with that calculation, they're saying, let's just take the opportunity to get some of these massive cuts. And as the president alluded to permanent cuts. And Democrats, I think, find themselves in a very difficult,

challenging situation. They're going to have to either upset their base by acquiescing again and putting up the votes for a bill to keep the government going or demonstrate that they're willing to fight, and the fight, of course, gets more thornier for them the longer that this goes on and there's real people, as Christine (ph) mentioned just a second ago, gets more and more difficult for more and more people.

I think that the White House, rather than learning the lesson from the last shutdown, is dug in and is committed to a very long, protracted battle where they see permanent reformation of the government being made easier by and the possibility of blaming Democrats.

KINKADE: Yes. And Caroline, as you mentioned, social safety net programs are under immediate threat. What does it say about our national priorities when programs that serve women and children are first on the chopping block?

HELDMAN: Well, it says that, right, we don't value certain lives in our country as much as others. And it's interesting to see the Democrats take this stance on health care.

I think of this in terms of the politics of it, and then the policy side of it. On the politics side of it, I think the Democrats are doing exactly what the Democratic Party wants it to do, which is fight and show some leadership and push back against the Trump administration, despite the fact that they don't hold power really in any of the branches of government.

On the policy side, you know, as Mike is pointing out, there's nothing to be gained from this. I don't think -- so, what they're trying to get is the health care premiums to not be doubled, right? Which is what the new estimate is.

Once these cuts go into effect, we're looking at about four million people who will not have health care who have it today. That will drive up everyone's premiums. So, the Democrats have a good message, but the thing is that that's Republicans kind of punching themselves in the face in a way that's going to hit them next year.

So, first, I don't think Democrats are going to get those concessions. But secondly, and from a purely political standpoint, it's terrible when people lose health care. I mean, people literally die, right, when they don't have the health care they need.

But from a political perspective, the Democrats should just let the Republicans do this. It will harm them considerably in the midterm elections. From their own Republican internal polling, we know that when health care premiums go up, this is going to hurt the party that did it.

KINKADE: Yes. And to you, Mike, it seems the Republican Party is quite split on how to handle this shutdown. I just want to play some sound of what the Speaker Mike Johnson had to say earlier.

We don't seem to have that right now, but he basically explained how damaging this was going to be for the U.S. Quite a contrast to what we saw from the U.S. president, who said it could be a good thing because there could be permanent cuts, more federal workers who will lose their job.

Mike, what does it reveal about the party's internal direction and its relationship with governing?

MADRID: Just another important point too that Caroline brought up, which is a lot of these people that are going to be hurt the most are going to be in red states. A lot of these are these kind of deep MAGA countries and counties -- counties, excuse me, not countries, where a lot of these people are getting this kind of health care aid, health care benefit. SNAP benefits only last 30 days, when people going to be literally running out of food.

So, a lot of these, again, are going to be in red states, red counties, and we're going to see just how much glue is holding together this constituency, which has defied most political gravity for the better part of six, eight years in supporting Donald Trump. Does that continue? Do they believe a lot of the messaging coming from the White House that this is the Democrats fault? The White House is betting that that will be the case.

[02:15:01]

We're going to have -- I don't think there's anything we can do but wait and see when they start losing their health care, when they start losing food benefits if they stick with Donald Trump, if they stick with the Republicans, or if they finally, finally break that fever that has consumed them for the better part of again, eight years.

KINKADE: Yes, we shall see how it plays out. Mike Madrid, Caroline Heldman, great to have you both with us. Thanks so much.

HELDMAN: Thank you.

MADRID: Thank you.

KINKADE: Well, still to come, a new vision for the U.S. military. The commander in chief joins the defense secretary to address America's top brass, a look at some of the messages they delivered.

Plus, President Trump gives Hamas a deadline to respond to his 20 point Gaza peace plan. We'll have the details of what he says will happen if the militant group rejects it.

(COMMERCIAL BREAK)

KINKADE: U.S. President Donald Trump is suggesting dangerous American cities could be used as a training ground for the military. Mr. Trump joined Defense Secretary Pete Hegseth to address an unprecedented gathering of top admirals and generals in Virginia. Hegseth laid out directives as he asserted a new vision for how the military should look and act.

[02:20:03] The defense chief also said combat troops will have to meet the highest male standard, and emphasized the importance of physical fitness.

(BEGIN VIDEO CLIP)

PETE HEGSETH, U.S. SECRETARY OF WAR: Frankly, it's tiring to look out at combat formations, or really any formation, and see fat troops.

Likewise, it's completely unacceptable to see fat generals and admirals in the halls of the Pentagon and leading commands around the country in the world. It's a bad look. It is bad, and it's not who we are.

So, whether you're an Airborne Ranger or a chair born Ranger, a brand new private or a four-star general, you need to meet the height and weight standards and pass your P.T. test.

(END VIDEO CLIP)

KINKADE: Well, CNN's Zachary Cohen is tracking all the details from Washington.

(BEGIN VIDEOTAPE)

ZACHARY COHEN, CNN SENIOR NATIONAL SECURITY REPORTER: More than 800 senior U.S. military officers were summoned to Quantico, Virginia on Tuesday to hear what was really a partisan presentation from both President Donald Trump and Defense Secretary Pete Hegseth.

Now, for his part, Donald Trump really did swerve between multiple topics, but it was one comment in particular that is likely to make many in the audience uneasy. Take a listen to what he said again about using the U.S. military in American cities.

TRUMP: I told Pete, we should use some of these dangerous cities as training grounds for our military National Guard for our military.

COHEN: Now, Trump went on to call the situation in these cities as a reflection of a, "War from within," and again, has suggested that he wants to use the military to combat and to address domestic unrest.

But that is something that senior Pentagon officials have historically tried to stay away from, and has really been a problem, and something that they've tried to avoid.

Now, for his part, Pete Hegseth really did not take the opportunity today to address issues of national security, but instead focused on a series of directives that he has been trying to implement since he first assumed the role of Secretary of Defense, that includes implementing new standards related to physical fitness, related to grooming, things that he says are essential for installing what he calls the, "Warrior ethos" and to eliminate, "Wokeness"s from the You S military, which he is blamed for eroding the standards and the effectiveness of the U.S. military, placing the blame squarely at the feet of his predecessors. Now, Hegseth offered these officers an ultimatum of sorts. Take a

listen to what he said if they failed to implement the policies that he laid out.

HEGSETH: The sooner we have the right people, the sooner we can advance the right policies. But if the words I'm speaking today are making your heart sink, then you should do the honorable thing and resign.

COHEN: Now, only time will tell what tangible impact these new directives will have on the U.S. military, both from a physical and makeup sense and also the mental sense as these troops continue to deploy across the world and address a series of geopolitical threats that face the United States today.

Zachary Cohen, CNN, Washington.

(END VIDEOTAPE)

KINKADE: U.S. president says he's giving Hamas three to four days to respond to his Gaza peace plan. The Source telling CNN that the U.S. is willing to discuss Hamas' counter proposals, but won't engage in lengthy negotiations with the militant group. When pressed and what would happen if Hamas doesn't agree to the deal? Donald Trump says it's going to be a, "Very sad end."

CNN's Jeremy Diamond reports from Jerusalem.

(BEGIN VIDEOTAPE)

JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT: Well, there's no question that a lot of pressure is being brought to bear on Hamas to accept President Trump's new proposal to end the war in Gaza, but this is going to be a lot more complicated than just a yes or no from the Palestinian militant group.

President Trump says that he's giving Hamas three to four days to respond to his new 20 point proposal, which the Israeli prime minister said he is supportive of.

Hamas officials are meeting with top level officials from Qatar, from Egypt and from Turkey in an effort to get Hamas on board.

But what all of my sources are telling me the expectation is, is that Hamas is going to have some changes that it is demanding to this proposal, and that's because when you look at this 20 point plan, there are a number of provisions that either cross Hamas' red lines or that mark a kind of downgrade from Hamas' perspective from previous proposals.

First among them, of course, is this question of disarmament. This proposal would require Hamas to be fully disarmed, Gaza to be demilitarized. Hamas has rejected that notion in the past.

There's also questions about the withdrawal lines of Israeli troops, and also the number of Palestinian prisoners that would be released in exchange for those 48 Israeli hostages. Keeping in mind, of course, that Hamas would be required to release all 48 hostages within three days of this proposal actually being agreed to. And of course, for Hamas, that is their leverage.

Now, we will see what Hamas response is. They have said that they just received the proposal and that they are going to be deliberating over it and then submitting a response.

[02:25:05]

Now, if Hamas rejects this proposal, President Trump has made clear that he's basically going to give the Israelis carte blanche to continue pummeling Gaza with this lofty and so far unachievable goal of fully destroying Hamas.

But what's interesting is that even if Hamas rejects this plan, it does lay out a pathway for that alternative, a pathway for Israel to actually begin gradually handing over territory to an international security force, and that this is the first time that we have ever seen the Israelis acknowledge, let alone agree to, any kind of plan for post war governance of Gaza in the handover of territory in the Gaza Strip to an international authority.

The United States so far has sounded quite an optimistic tone. We've heard from Steve Witkoff, President Trump's Special Envoy, who says that he believes that this is the moment to actually close all of this out.

Of course, beyond Hamas' approval of this deal. There are still questions here in Israel as well about the politics around all of this. The Israeli Prime Minister already facing fierce criticism from some of his right-wing allies, who have said that they oppose this proposal. But so far, those right-wing allies, like the Finance Minister Bezalel Smotrich, haven't gone quite as far as saying that they would leave the government over this, but that will certainly be something to keep an eye on.

Jeremy Diamond, CNN, Jerusalem.

(END VIDEOTAPE)

KINKADE: Well, still to come on the U.S. government shutdown, with lawmakers on both sides voicing their frustrations over the impasse.

(COMMERCIAL BREAK)

KINKADE: Hello, I'm Linda Kincaid. More now on our top story, the U.S. government has officially shut down after lawmakers failed to meet a midnight deadline to pass a new funding bill. Republicans are blaming Democrats for voting against a stop gap measure to temporarily keep the government open.

[02:30:00]

But Democrats are demanding healthcare concessions from their Republican colleagues, in particular an extension of the subsidies in the Affordable Care Act.

I want to go to Los Angeles and Benjamin Radd is a Political Scientist and Senior Fellow at the UCLA Burkle Center for International Relations. Great to have you with us.

BENJAMIN RADD, SENIOR FELLOW, UCLA BURKLE CENTER FOR INTERNATIONAL RELATIONS: Thank you.

KINKADE: And so, I want to get a global perspective from you on what this shutdown means beyond Washington? What are allies and rivals taking away from this political gridlock?

RADD: Well, sadly, it just underscores the state of dysfunction that currently plagues the U.S. government. What we're seeing here are differences not just in governance style, but also political positions, ideologies taking shape and being displayed for the world to see. And with a Congress and an executive branch here in the United States, and even a court that's pretty much dominated by Republicans, it might be astounding to those outside the borders here to understand how this gridlock can persist despite the levers of power all being in the hands of one party.

KINKADE: And of course, the last shutdown began in late 2018 and continued for some 35 days into 2019. How long could this one last?

RADD: Well, the situation is different now from last time, and it sadly reflects, I think, the state of polarization in the rest of the world. What we've seen now is a U.S. Congress that is far less moderate than it was then. And it wasn't that moderate in 2018, but you had Democrats who were from conservative states, conservative districts, I should say, or states, red states, and they were inclined to meet in the middle and support positions that Republicans held. And you also had Republicans who were moderates and willing to negotiate with Democrats.

Those members are now long gone. And so what you -- what the result now is, are Senators who are more sensitive to the outer edges of their party's beliefs, their ideologies, and not willing to give up things without a huge fight or concessions. So unfortunately, what we see now is a situation where no one seems inclined to budge, at least until public opinion starts to shift.

KINKADE: Yeah, and of course, we heard from late-night host Jimmy Kimmel weighing in on this. I just want to play some sound for our viewers.

(BEGIN VIDEO CLIP)

JIMMY KIMMEL, HOST OF "JIMMY KIMMEL LIVE!" ABC NEWS: Democrats want Republicans to agree to continue funding the Affordable Care Act, whereas Republicans want to use that money to add crab legs to the omelet station at Mar-a-Lago. Trump is threatening to make irreversible cuts if there's a shutdown which, you know what, I was recently the victim of a government shutdown. They are reversible. I will tell you that.

(LAUGH)

(END VIDEO CLIP)

KINKADE: I have to ask, how does all of this affect America's credibility on the global stage?

RADD: Well, it makes it difficult to understand how our system is supposed to operate. We have a system of government where Congress is in charge of disbursement of funds. It has what's referred to as the power of the purse. And for the president to be able to unilaterally decide what to cut, whom to fire, what programs to obliterate, what programs to fund, bypassing congress, a Congress that more or less has abdicated its authority, really makes it look like, as I stated earlier, a dysfunctional system.

And it's difficult for the United States to project any semblance of stable, functioning, effective democratic leadership when its own mechanisms, its own system is in such disarray. So I can't imagine it looks appealing to anybody from the outside.

KINKADE: And so, should U.S. allies be concerned about stability in the U.S. headed into 2026 and beyond?

RADD: No, I think what they should be concerned with is any attempt to get consensus from this government, consensus that reflects a broad perspective of American views, the views that many American voters have, which is neither to the far left nor the far right, but most end up somewhere in the middle. But we have a system because of the way that the electoral college and other apportionment of seats are set up, it's difficult for that middle to have its views reflected in those elected to serve.

So I think for what the international community this means is that expect everything to take longer and be more arduous as it goes through this grinding system.

KINKADE: So if you were advising a foreign government, what would you tell them to watch most closely over the next say 72 hours?

RADD: It would be to look for possible shifts in public opinion. If there are any polls that come out, any indications that Senators who are opposed to a deal are getting any pushback from their voters back home, really that's what is going to ultimately sway their votes. And we've seen polls have an impact on how President Trump reacts and what policy decisions he makes and decides to pursue. So I think gaging public opinion to the extent possible within the next few days will tell us probably more than anything else will.

[02:35:00]

KINKADE: Yeah, we'll be watching those polls closely. Benjamin Radd, great to get your analysis. Thanks very much.

RADD: Thank you.

KINKADE: Well, still to come, a deadly earthquake hits the Philippines, killing dozens of people. We'll show you some of the damage caused so far.

(COMMERCIAL BREAK)

KINKADE: More than 60 people are dead in the Philippines after a 6.9- magnitude earthquake struck near the middle of the country. The Philippine Red Cross says first responders and citizens were killed when a sports complex collapsed Tuesday. Dozens more have been treated for injuries. Videos from social media show damaged fast food restaurants, buildings on fire, and even a video of a bridge swaying as it's been shaken by the quake. Officials have reported multiple damaged structures, power outages, and even a minor eruption from a volcano near Manila.

Well, Indonesian rescue teams are desperately racing to find dozens of students buried for two days under rubble after their school collapsed. It happened Monday during an afternoon prayer session at a century-old Islamic boarding school. At least three people have died, 100 others have been injured. Rescuers have been avoiding heavy machinery and digging holes manually to prevent further collapse. Government officials say the building was under construction and the foundation crumbled under the weight of the new concrete that had been added.

Hurricanes Humberto and Imelda are triggering flood warnings for the eastern parts of the U.S. and this video shows the moment a house on North Carolina's outer banks collapsed due to the high surf from the storms. It's one of at least five homes that were swept into the ocean on Tuesday. Authorities are warning people to avoid collapsed homes in coastal areas because of potentially hazardous debris.

[02:40:00]

While neither storm is expected to make landfall in the U.S., the National Weather Service says some vulnerable areas could see waves as high as 12 feet.

The U.S. president claims his administration is close to finalizing $0.5 billion deal with Harvard University, in which Harvard University will pay about $500 million and operate trade schools. Harvard officials and the White House have been discussing a deal to restore the more than $2 billion in federal funding that President Trump revoked.

Earlier this month, a federal judge ruled in Harvard's favor. The Trump administration has targeted Harvard and other major universities for alleged anti-Semitism on campus. CNN has reached out to Harvard about the deal and is awaiting a response.

Well, thanks so much for joining us. I'm Lynda Kinkade. "World Sport" is up next for our international viewers. And for those watching in North America, I'll be back in just a moment.

(COMMERCIAL BREAK)

[02:45:21] KINKADE: Welcome back to our viewers here in the U.S. I'm Lynda Kinkade. Good to have you with us. I want to recap our top story this hour. The U.S. Federal Government is officially shut down for the first time in almost seven years. The Republican-controlled Congress failed to pass a bill to keep the government funded by the midnight deadline. And now, hundreds of thousands of federal employees will be furloughed. Others who are considered essential will have to keep reporting for work, but many won't get paid until the shutdown ends.

Both Republican and Democratic leaders are playing the blame gain with neither side willing to compromise. While every government shutdown differs, typically, the functions that are critical to protect lives and property are deemed essential and stay open. CNN's Harry Enten takes a look at past shutdowns for some insight into what may happen this time around.

HARRY ENTEN, CNN CHIEF DATA ANALYST: Hey, there. Well, it's upon us, yet another government shutdown. Of course, this is one of many government shutdowns it feels like we've had in the last few decades. Indeed, that's why I think it's important to look back at those past shutdowns because they can be instructional and informational in terms of how this one might play out. Well, let's take a look at these past shutdowns. Who got the public blame in past shutdowns?

'95-'96, it was the Republicans. 2013, again, the Republicans. 2018/2019, during the first Trump term, it was the Republicans. Republicans usually get blamed for shutdowns. But here is what's so interesting. Look at this 2013 shutdown where Republicans got blamed. Of course, there was a midterm election that occurred in 2014. Did the blame that Republicans get hurt them in that 2014 midterm election? The answer is no, it didn't. After the GOP got the blame for the 2013 shutdown, look at the 2014 election in terms of seats.

Republicans gained 13 seats in the House of Representatives. In the Senate, they gained back the Senate by gaining nine seats, my goodness gracious. So despite the fact that Republicans got blamed for the 2013 shutdown, it didn't in fact carry over to the next year's midterm election. So this time around, let's say Democrats end up getting blamed, that doesn't mean they won't be able to win back the House and the Senate. And the same for Republicans, but in reverse, right? It doesn't mean that even if they get blamed, they won't be able to hold on to the House and the Senate.

Now, there is one thing that is very different about the 1995-'96 shutdown, the 2013 shutdown, and the 2018/2019 shutdown, and that is the Democratic Party is in just a much different position. We can see this in this question. What did Democrats want pre potential shutdowns?

Well, before a potential 2023 shutdown that didn't happen, only 21 percent of Democrats said they wanted their party to stand on principle, even if it meant a shutdown, compared to 76 percent of Democrats who said they wanted a compromise, no shutdown. Look where we are now. We're talking about nearly half of Democrats, 47 percent who say they want their party to stand on principle even if it means the shutdown. That is very close to the 52 percent of Democrats right now who say a compromise, no shutdown. That is significantly less than the 76 percent who said that back in 2023.

The bottom line is the Democratic Party is in a different position now than they were even a couple of years ago, and certainly a different position than where they were in past shutdowns. This is a party that wants their leadership to fight. How that affects this potential shutdown going on and on and on and on and on, we'll just have to wait and see. Back to you.

KINKADE: Thanks to Harry. Well, at least one journalist has been hospitalized after masked ICE agents got physical with reporters at a New York Immigration Court. A video posted on social media and re- tweeted by New York's governor shows the agents grabbing and pushing journalists who were entering an elevator. One was shoved to the ground, falling into another reporter who was knocked violently to the floor. The injured journalist was taken from the building on a stretcher.

The reporters were documenting an arrest according to the New York Immigration Coalition. It's clear that immigration is among the most divisive issues right now in the U.S., as CNN's Jeff Zeleny reports. It is one independent voters think about as they consider which party, if any, they identify with more.

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LISA MUNSON, MARYLAND INDEPENDENT VOTER: I don't want to get sucked into, well, I'm a Republican so I will only vote Republican, or I'm Democrat so I'll only vote Democrat. I -- there's can -- both candidates could be equally good or equally bad.

JEFF ZELENY, CNN CHIEF NATIONAL AFFAIRS CORRESPONDENT (voice-over): Lisa Munson, a Maryland mother of three, is one of the most important wildcards in American politics.

ZELENY: Why are you an independent?

MUNSON: I never wanted to declare either Republican or Democrat, I guess.

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ZELENY (voice-over): She's an independent voter.

MUNSON: There you go.

ZELENY (voice-over): But a conservative one, supporting Donald Trump in the last three elections. A conversation around Munson's dining room table reveals frustration at Washington.

MUNSON: No one seems to want to work together to get things done.

ZELENY (voice-over): And helps explain the findings of a new CNN poll that shows the mythical swing voter, one who goes back and forth in each election, may be a relic of the past. More Americans identify as independents than as Republicans or Democrats. Yet some lean right like Munson, or left like Ryan Wissman, a Pennsylvania voter, who also took part in the CNN poll.

RYAN WISSMAN, PENNSYLVANIA INDEPENDENT VOTER: I feel very apprehensive about the state of the country right now.

ZELENY: Why apprehensive?

WISSMAN: Because it seems to me that we are going down a path that we've maybe never gone down before.

ZELENY (voice-over): To better understand this influential piece of the electorate, a CNN analysis finds independents breakdown in categories like this: Democratic and Republican lookalikes, the disappointed middle, upbeat outsiders, and the checked out. The bottom line, the definition of an elusive swing voter has shifted in a divided America and has more to do with political engagement than persuasion. Despite different views, many find common ground in their disdain or disinterest toward political parties and leaders. We asked many independents, who responded to the poll, for one word to describe the state of politics.

UNIDENTIFIED MALE: Flammable.

UNIDENTIFIED MALE: Chaotic.

CHRIS BURROUGHS, ARIZONA INDEPENDENT VOTER: Blindsided.

UNIDENTIFIED FEMALE: Narrow-minded.

UNIDENTIFIED FEMALE: Downward spiral.

ZELENY (voice-over): When we spoke to Chris Burroughs in Arizona, we asked him this.

ZELENY: Do you believe America's best days are ahead of us or behind us? What do you think?

BURROUGHS: I would like to think that they're ahead of us. However, I think our best days are behind us lately. And that's really a sad way to feel.

ZELENY (voice-over): He's hardly alone. In fact, a majority of Americans agreed the best days are behind us. The first time in at least a decade of CNN polling, across the ideological spectrum of independents, a shared feeling of discontent runs deep. Among those who voted for Kamala Harris, like Wissman --

WISSMAN: The rhetoric is beyond anything that I could have possibly imagined. I think the divisions in our country, the speed at which we are apparently losing some rights that we've just always had, frightens me quite a bit.

ZELENY (voice-over): And even among some who voted for Trump like Munson.

MUNSON: I liked what he did the first term. I like that he shook stuff up. Unfortunately, he's taking his ego, I think a little too far and it's all about him. And how about -- he's -- how he's perceived. And that's really -- it's not about you.

(END VIDEOTAPE)

ZELENY (on camera): The disappearance of the classic swing voter has major implications on American politics. Now, in this deeply divided country, people going back and forth between parties is a thing of the past. But one thing is clear from our poll. Frustration runs deep across the board. Dysfunction and government shutdowns in Washington certainly contribute to that.

Jeff Zeleny, CNN, Washington.

KINKADE: Well, Donald Trump is revealing a pair of new programs he says will enable Americans to save money on prescription drugs. He announced a deal with drugmaker Pfizer to dramatically cut the costs of their medicines. And he previewed a government website that would offer price breaks on other prescription drugs. CNN Medical Correspondent Meg Tirrell reports.

MEG TIRRELL, CNN MEDICAL CORRESPONDENT: Well, there are a few different parts to this agreement between Pfizer and the Trump administration on drug pricing. And a few of them focus on this concept of Most Favored Nations. Now, this is something that President Trump has talked about since his first administration when it comes to drug pricing. And the idea essentially is that you would take a comparator bucket of similarly wealthy countries and look at where they price medicines, and say that the U.S. shouldn't be paying a price for a medicine that's any higher than the lowest price paid in that comparator set of countries.

Now, Pfizer is pledging that their drugs for Medicaid enrollees will receive Most Favored Nation pricing. Now, folks looking at this are scratching their heads a little bit to understand what the major discount there is going to be as drugs in Medicaid already receive big discounts. So that is one question. This Most Favored Nation idea will also apply to new drugs that Pfizer introduces to the market. They are pledging not to give a better price in similarly wealthy countries than they would give to the United States.

So the question there is, does that mean that the United States gets a much lower price than you might see in an European country, or does it mean that the European countries are going to be getting a much higher price? That is another question as well. As part of this, Pfizer also says that it's going to get a three-year grace period on any tariffs that the Trump administration would levy on their medicines as long as Pfizer continues to invest in U.S. manufacturing.

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And then finally, there's another aspect to this that the Trump administration calls TrumpRx, which is essentially a way to facilitate direct-to-consumer purchasing of Pfizer's medicines by U.S. consumers. So, trying to circumvent the middlemen like insurers and pharmacy benefits managers. Now, what's interesting about this is the Trump administration named a couple -- a few drugs where they said they were going to have sizable discounts and it appears that these discounts are going to be off the list price of these medicines, or that's the price before insurance kicks in or before any discounts on these medicines.

So, one of these drugs is called Xeljanz. It's a very pricey drug for rheumatoid arthritis. Trump administration says through TrumpRx, the discount would be 40 percent. Well, the list price of that medication is more than $6,000 per month. So with a 40 percent discount through this TrumpRx program, you'd be getting to a $3,600 monthly price for this medicine. And so, experts I'm talking with are kind of scratching their heads to say, how is that actually going to save folks a lot of money?

And more broadly, there are a lot of questions about which drugs will be included in this direct to consumer program? What will the discounts actually be for all of them? And of course, which other companies follow suit because the Trump administration has pledged that many more announcements are coming.

KINKADE: Our thanks to Meg. And thanks so much for you, for your company this hour. I'm Lynda Kinkade. I will be back with much more "CNN Newsroom" in just a moment. Stay with us. You're watching CNN.

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