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U.S. Government Shutdown Enters Day 2; Israeli Military Intercepts Gaza Aid Ships; Netanyahu Defends Trump's Gaza Plan to Hardliners; Search for Survivors in Indonesia; Fed Arrest Dozens in Memphis; FIFA Backs First Afghan Women's Refugee Football Team. Aired 12-12:45a ET

Aired October 02, 2025 - 00:00   ET

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

[00:00:00]

PAULA NEWTON, CNN ANCHOR: Hello, and a very warm welcome. I'm Paula Newton.

Ahead right here on CNN Newsroom. Both sides are digging in as the U.S. shutdown enters its second day. Organizers of a Gaza-bound aid flotilla vowed to continue the mission after Israeli forces intercept some of the vessels. And rescuers desperately searching for survivors in a boarding school collapse in Indonesia.

ANNOUNCER: Live from New York, this is CNN Newsroom with Paula Newton.

NEWTON: And so, we are now in day two of the U.S. government shutdown, and there are no signs of any tangible progress in funding talks. Lawmakers won't even be holding any more votes until Friday at the earliest. And the White House warns that federal layoffs, not furloughs, layoffs, furloughs imminent without revealing how deep those cuts could be. It's also unclear how most federal agencies will be affected by the funding freeze. But it's health care subsidies that remain the most contentious issue in this political standoff. They're due to expire later this year. Democrats want to extend them, but Republicans want them gone.

(BEGIN VIDEO CLIP)

SEN. CHUCK SCHUMER (D-NY): They've had since March to do this. We've asked them to vote on it three times, the Republican senators, and all three times they voted no. We need a real answer now. If they kick the can down the road, you know, as Martin Luther King once said, senior, later means never.

REP. MIKE JOHNSON (R-LA), U.S. HOUSE SPEAKER: It simply continues the Biden-era spending levels that Chuck Schumer and the Democrats have already supported in the past. They just did it most recently in March, and he gave long speeches about how it was so critically important that we not shut the government down. So, there's nothing for me to give. There's nothing to negotiate.

I don't have any Republican priorities to put on the table because we sent over a clean CR, and that's why none of this makes sense.

(END VIDEO CLIP)

NEWTON: Now, meantime, concerns are growing over which services and programs will be paused or even eliminated if this shutdown drags on for weeks or even months. CNN's Karin Caifa has our report.

(BEGIN VIDEOTAPE)

KARIN CAIFA, CNN REPORTER: If lawmakers wrap this up quickly, it's possible that most Americans won't feel any impact at all. But if the shutdown is an extended one, it could start to take a toll everywhere from the nation's airports to the grocery store.

CAIFA (voice-over): Despite the government shutdown, some federal agencies have deemed certain services and employees essential, which means Social Security payments will continue.

Air traffic controllers and TSA employees will keep flights moving, though without paychecks, and veterans can continue to receive medical and critical care through the Department of Veterans Affairs. The Department of Health and Human Services says the Food and Drug Administration will still respond to emergencies but be limited in the number of inspections it can do, which experts warn could put the nation's food supply in risky territory.

ROBERT CALIFF, FORMER COMMISSIONER, U.S. FOOD AND DRUG ADMINISTRATION: If this goes on for a couple of weeks, there could be food safety outbreaks that couldn't be coped with. Significant problems could occur in the supply chain.

CAIFA (voice-over): The shutdown also stalling the admission of new patients to National Institutes of Health clinical trials unless medically necessary.

UNIDENTIFIED FEMALE: So, if we're on deck for a clinical trial, that will stop.

CAIFA (voice-over): The Department of Agriculture says nutritional programs like SNAP benefits can continue until funding runs out. The Department of Education says federal student loans will still be dispersed, and borrowers are still required to make their payments to avoid default and delinquency. And the Department of the Interior says national parks will stay partially open, a move sharply criticized by park advocates who say it's dangerous for the public to have access with more than 9,000 agency employees furloughed.

CAIFA: The Labor Department said that key economic reports like the jobs report and inflation report will not release during a shutdown, making it more difficult to gauge the overall health of the U.S. economy. Also, a potential challenge for the economy, thousands of federal workers going without a paycheck until the shutdown is over.

In Washington, I'm Karin Caifa.

[00:05:00] We're joined now by Dr. Zorba Paster. His longtime Wisconsin public radio show ended last week due to some funding cuts, but he has a new podcast called "Stay Well with Dr. Zorba Paster." And we welcome you to the program. And I know you've been doing this for decades in terms of really trying to take care, not just of your patients, but people throughout the state that have questions.

And that's why we wanted to speak to you to really try and understand how people are taking in this shutdown outside of Washington, D.C. We want to talk to people about where it's going to be felt most in communities, the communities like where you work and in Wisconsin. What have you been hearing, especially because health care seems to be at the very core of this dispute?

DR. ZORBA PASTER, HOST, "STAY WELL WITH DR. ZORBA PASTER" PODCAST AND FORMER WISCONSIN PUBLIC RADIO HOST: Well, health care is at the core. And part of the problem with health care is you've got all this noise in the system where people who really are not trained in health care, politicians, you know, movie actors, you know, they say Tylenol causes autism, which it does not by any means, all of a sudden, they're in the system and people don't know where to turn. And that's the problem. The problem is they get confused because there's so much noise in the system.

NEWTON: And does that include the issue of health insurance right now and people just trying to figure out, how do I get insurance? Is it going to change? Will my local hospital be funded?

DR. PASTER: You got it. Right. That's exactly it. Insurance is always an issue. And I give you a perfect example. If you get a colonoscopy for screening under Obamacare, it doesn't cost anything. If you get a colonoscopy because you have blood in your stool, all of a sudden, you may be stuck with $5,000 bill, which may be your copay because you didn't meet your deductible.

So, the way it's actually coded determines whether or not you actually have to pay money. And when you look at health care, that is the number one reason for bankruptcy in this country. It's absolutely awful. And with the federal shutdown and everything else, it's only going to get worse.

NEWTON: Yes, it is real that medical debt for so many people, Wisconsin representatives, right, from your state in Congress, they can't agree on the facts. You know, Democratic demands, you know, Republicans are saying it would mean that Dems are fighting for Americans to pay for undocumented people to get medical care in the United States. The Dems are shooting back and saying, look, 4 million Americans will have their subsidized health care terminated, 22 million will have their premiums go up substantially.

How is it playing out with the people that you're speaking with in terms of, you know, they're going to have to renew a lot of their government insurance in the coming weeks?

DR. PASTER: That's exactly right. People are concerned. They're concerned about their deductibles. They're concerned about whether or not they're going to get insurance, because right now, of course, in October, November, that's when people look at this and they're worried about the premiums that are going up because all of that is more likely to happen.

And with the drop in -- essentially in government subsidies, that's going to be a big difference in Wisconsin and across the country. And it's got people worried. And then they don't come in for their immunizations. They don't come in for their preventive care. And of course, that means they're not going to get the care that they need to keep everybody healthy.

NEWTON: Dr. Paster, how do you navigate, though, the partisan divide here? Because it is stark in terms of what is going to happen in the coming weeks.

DR. PASTER: You know, it used to be that health care wasn't partisan. I mean, it used to be that health care was not a partisan issue, that basically it was something that simply both the Democrats and Republicans agreed with. There wasn't any problem with that. I don't know who's a Democrat, who's a Republican when they come into my office.

And so, the problem is right now you have people coming in with a different thought based on what they read and what they see. And it's a tremendous problem. It's very hard to navigate that. But the thing is, your health care provider who you trust turns out to be the one to give you the best information. And it's a matter now of trying to get that information from your health care provider, doctor, nurse practitioner or PA.

NEWTON: And you are a health care provider. The cuts that are coming in the Republican budget, what's already been passed, right? Does it concern you?

DR. PASTER: Overall, yes, it does make a difference. You know, we have an independent -- we have a clinic, the clinic, you know, it's not a government clinic. And so, basically, as soon as things get cut, especially Medicaid, which is a very basic part of our clinic between Medicaid and Medicare, that's probably responsible for maybe 35 to 40 percent of the dollars that come in. And if that's cut, it's going to be much more difficult.

NEWTON: Well, we certainly have a great insight there from you, Dr. Paster. I really appreciate you joining us as we continue to see what happens with the shutdown.

DR. PASTER: Thanks for having me. Really appreciate it.

NEWTON: So, organizers of a Gaza-bound aid flotilla are vowing to continue undeterred after several vessels were intercepted and boarded by the Israeli military. The group says communication has been lost with some boats and accuses Israeli forces of using active aggression against other vessels.

[00:10:00] The Israeli foreign ministry confirmed some boats were stopped and passengers transferred to an Israeli port. It also says the Israeli Navy had contacted the flotilla earlier and asked it to change course.

Swedish activist Gretchen Berg was on board one of the intercepted vessels. She is seen sitting on the floor. You see her there surrounded by military personnel in a video posted to social media. The Israeli foreign ministry says she is, quote, "safe and healthy."

Meantime, inside Gaza, the Red Cross says it is suspending operations in Gaza City as Israel threatens to cut off the northern part of the enclave. The organization says its teams stayed as long as they could to try and help the most vulnerable as the city faces a worsening humanitarian crisis. Now, the loss of assistance will put more pressure on the few strained health care facilities still operating in Gaza City.

Israel's prime minister is defending U.S. President Donald Trump's Gaza peace plan to skeptical members of his own cabinet. Sources say Benjamin Netanyahu told hardliners, quote, "there's a very big opportunity here." But the cabinet has yet to schedule a vote on the plan. CNN's Jeremy Diamond reports on reaction from Hamas.

(BEGIN VIDEOTAPE)

JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT: Well, Hamas negotiators sat down Tuesday night with top officials from Qatar, Egypt, and Turkey to go over President Trump's 20-point plan to end the war in Gaza. According to an official familiar with these talks, Hamas is now, quote, "carefully reviewing" this proposal and consulting with other Palestinian factions.

They are expected to prepare and then submit their response to this 20-point proposal. This comes after President Trump said that Hamas has about three to four days to respond to this proposal. And there's no question that a lot of pressure is being brought to bear on Hamas to accept this 20-point plan or at least respond positively and with reasonable counterproposals.

You know, I spoke with a source familiar and involved with this U.S. plan who said that the United States is willing to engage in reasonable negotiations with Hamas, willing to accept reasonable counterproposals from Hamas. But this source said that the United States will not engage in what they described as lengthy, protracted negotiations. One example I was given is that the United States is willing to negotiate over how exactly Hamas' disarmament, Gaza's demilitarization will actually take place, but not over whether or not that is going to happen.

And this is where we are already seeing how difficult and contentious these negotiations may very well be. Hamas has said that disarming is a red line for them. They have refused it when it's been raised in the past. Israel, of course, has said that it will not end the war unless Hamas is disarmed and Gaza completely demilitarized.

There are a series of other issues here that Hamas is also likely going to want to negotiate. But this source involved in the U.S. plan told me that the message that is being sent right now is that the region and that the United States and Israel are moving on with or without Hamas. And that's because we saw that in this 20-point plan from the United States, there are provisions for what happens if Hamas rejects this proposal, that Israel would be able to continue with its military operations, but ultimately, gradually transfer over territory to this international security force that will be established as part of a transitional authority in the Gaza Strip.

But there are still a lot of questions to be answered about that as well. This 20-point plan is quite light on the details of the implementation of a lot of this. So, there's no question that there are a lot of negotiations, a lot of discussions that still need to happen before any of this can have a chance of becoming a reality.

Jeremy Diamond, CNN, Tel Aviv.

(END VIDEOTAPE)

SOARES: Still to come for us, Indonesian officials say time is running out for trap survivors of a boarding school collapse. We will have an update on those rescue efforts.

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NEWTON: Authorities in Indonesia are racing to find at least 59 people missing after their boarding school collapsed on Monday. At least five people have died, but several children have been found alive and we're communicating with rescuers.

CNN's Ivan Watson is following this for us from Hong Kong. Ivan, I mean, look, I've seen some of the rescue efforts. They seem very extensive. And yet this must be excruciating for the families. So, many people still missing.

IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Just a desperate vigil being performed by families. This was a huge school. It had approximately 1,500 students at it. And the collapse took place on Monday, Paula. So, we're now approaching some 72 hours after the collapse of this four-story structure.

The authorities, they fear that there are still scores of boys still missing. They have been digging. It's difficult and dangerous work. The rubble is unstable, they say. There was even an earthquake that shook part of eastern Java of Indonesia on Tuesday. Overnight, they used thermal detectors to try to find additional signs of life and did not find any. And they're starting to move in heavy machinery like cranes to continue with this difficult and dangerous work.

[00:20:00]

Now, on Wednesday, there were some rescues of at least five people from the rubble. But that window where you hope that somebody can survive in an air pocket, perhaps, is shrinking right now. And our reporter on the ground who has spoken with family members, they are in this excruciating position, where they're hoping and wishing and praying for a but fearing that the hours that their children could survive are diminishing with every passing hour. Paula.

NEWTON: Yes, Ivan, really appreciate the update on this and we'll continue to follow it. Appreciate it. Now, the Trump administration is sending troops to Tennessee's second largest city, claiming it's an effort to fight crime. Do the facts match the president's claims about Memphis? That's next.

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NEWTON: And welcome back to CNN Newsroom. I'm Paula Newton. We want to take a look at today's top stories.

The aid flotilla bound for Gaza plans to push on with its voyage even after several vessels were intercepted by the Israeli military. Military personnel boarded the boats and the Israeli Foreign Ministry says the passengers were being transferred to an Israeli port. The interception has sparked protests in several countries, including Italy and Greece.

Donald Trump is warning that programs popular with Democrats could be cut and more federal workers could be fired because of the U.S. government shutdown. It will last until at least Friday when lawmakers return for more funding votes. But some say the president's threats don't mean much since he already made massive cuts regardless of congressional action.

Rheumatologist Jane Goodall has died, her institute said on Wednesday. She was 91. Dr. Goodall's field studies with chimpanzees helped to broaden the world's understanding of animal behavior and emotions. World leaders, activists, celebrities and colleagues are remembering the conservationist.

U.S. authorities are making dozens of arrests meantime in Memphis, Tennessee. It's the latest city run by Democrats to see the deployment of federal officers and National Guard troops on the premise of cracking down on crime. Several Trump administration officials visited Memphis Wednesday. Attorney General Pam Bondi said more than 200 officers had been federalized. CNN's Ryan Young is in Memphis with our report.

(BEGIN VIDEOTAPE)

RYAN YOUNG, CNN SENIOR U.S. NATIONAL CORRESPONDENT: Yes. We've really seen the buildup in Memphis throughout the day. If you look behind me here, this is one of the staging areas where we've seen a lot of that law enforcement sort of swell into. We've seen everything from a helicopter to extra forces come in, ATF, FBI, the Tennessee Bureau of Investigation, all trying to make their presence known in the Memphis area.

We actually walked through a neighborhood that experienced a lot of gun violence, talking to the neighbors who are very upset about what they've been seeing going on. We know that crime, according to the police department, has dropped in the last year, maybe down 25 percent. But there are neighbors who are concerned and worried and want to see more happen. Take a listen to one neighbor that we talked to on the streets of Memphis.

UNIDENTIFIED MALE: And I would want them to, you know, help us, you know, get more officers, to draw more, to make it interesting that officers or people would want to join the police force. You know, (INAUDIBLE), you can't be satisfied living in a city where you can't go to the gas station. You go to the gas station, you may become a statistic. That's real. I tell my wife, do not go to the gas station at night. But now, sometimes you can't go to it in the daytime.

I don't let this up without looking out the window, making sure. You know, I come out the other day, someone tried to steal my car.

YOUNG: Yes, we also heard from the Secretary of War, from Pam Bondi, who were saying that they wanted to make sure they support the ongoing efforts here. They plan to be here for the long haul to clean up the city. We also heard the mayor address a town hall. They want to integrate some of these federal forces and resources in with the police department to further the success they've already seen.

So, there's a mix, because there are some people in neighborhoods who are worried and concerned. They don't want too much federal involvement, but then you also have people, like the man here holding a sign behind my back, who's welcoming all this federal law enforcement into the area, hoping that it makes a difference.

Reporting in Memphis, Ryan Young, CNN.

(END VIDEOTAPE)

NEWTON: Ukraine is accusing Russia of intentionally risking a radiological incident after a power blackout in a second Ukrainian nuclear plant. Now, officials say the Chernobyl plant lost power for three hours on Wednesday after Russian strikes on a nearby substation. President Volodymyr Zelenskyy says the blackout affected a structure that contains radioactive debris from the 1986 nuclear disaster.

Meantime, the Zaporizhzhia plant has been without external power for more than a week following Russian shelling. The facility is in a shutdown mode, but it still needs electricity to cool its reactors and prevent a possible meltdown.

[00:30:06]

Years of frustration give way to hope for a young group of Afghan women. Still ahead, their inspiring journey from defying the Taliban to realizing their dream.

(COMMERCIAL BREAK)

NEWTON: Morocco is seeing massive anti-government demonstrations right across the country. [00:35:03]

The youth-led protesters are accusing the government of investing billions to prepare for the 2030 World Cup, while the country's hospitals and schools remain in a state of decline.

Violence is reported in several cities where jobs are scarce and social services lacking.

Moroccan authorities say some 400 people have been taken into custody, and more than 260 members of law enforcement injured.

A group of young athletes from Afghanistan is celebrating victory even before they take to the pitch. FIFA is backing their bid to compete as the first Afghan refugee women's football team.

CNN WORLD SPORT anchor Amanda Davies has their inspirational story.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: Afghanistan! Yes, yes!

UNIDENTIFIED FEMALE: So, congratulations for the 2016 (ph) players.

AMANDA DAVIES, CNN WORLD SPORT (voice-over): Seven a.m. on a Friday morning in the Northwest of England. A milestone moment after a sleepless night, awake with nerves.

UNIDENTIFIED FEMALE: You should feel so proud.

DAVIES: Sozanne (ph), Sevin, Najma, Elaha, and Zainab. All named as part of the squad for the first FIFA-backed Afghan women's refugee team, set to be reunited with fellow Afghan players scattered in exile around the world to represent their country, at last.

ELAHA SAFDARI, AFGHAN SOCCER PLAYER: Obviously, just an amazing moment for all of us. I can't wait to share it with my family.

They're probably going to see me from TV, but the thing is, it's how sad it is that I don't have them by my side to celebrate like other -- my teammates who -- who are going to share with their family.

DAVIES (voice-over): In 2021, Elaha was 17 and had earned her first call-up for the Afghan Women's national team as a goalkeeper. She never got to play.

For her and her teammates, their role as footballers and what that meant in the eyes of the Taliban meant they were forced to flee their homes and country.

Elaha's father was ill, so her parents were unable to travel. She and her brother had to leave without them.

DAVIES: I feel very honored being your passenger after you just passed your test.

SAFDARI: Thanks.

DAVIES: Am I safe?

SAFDARI: You are. I feel like you guys should trust me.

DAVIES (voice-over): For everything they've lost, there are so many ways this group live in defiance of the rules the Taliban have imposed on women in Afghanistan. Learning to drive, gaining an education, securing jobs, and playing football.

DAVIES: The only thing they've not been able to do is go from playing their football here in Doncaster to representing their country, wearing the shirt of Afghanistan on the international stage.

NARGES MAYELL, AFGHAN SOCCER PLAYER: FIFA has said that Afghanistan's women's national team title should come from the Afghanistan Football Federation, which we do not accept. And it is running by Taliban now, and we do not recognize Taliban.

ZAINAB MOZZAFARI, AFGHAN SOCCER PLAYER: We want the FIFA to recognize us as the international women's Afghan. And we are tired of calling -- get called refugee. We've been called refugee for four years now.

DAVIES (voice-over): Because the Taliban believe women playing sport is against Sharia law and have refused to acknowledge the women's team, their ability to play internationally has depended on the intervention of world football's governing body, FIFA.

It has taken until now for them to create the Afghan women's refugee team, set to take part in a four-team tournament in Dubai in October.

None of this would have been possible without Khalida Popal, the first ever captain of the original Afghan women's side, founded in 2007.

KHALIDA POPAL, FORMER AFGHAN SOCCER CAPTAIN: We have been screaming out loud. We have been knocking every closed door to listen, to get FIFA's attention, to listen to our voices.

And we have really faced silence for four years. These girls lost their time.

DAVIES (voice-over): FIFA did not respond to our questions about the desire of some of the players to be referred to as the national team.

It did, however, stress in a statement that its financing, facilities, and personnel, in what it called "a significant and landmark step forward in giving Afghan players the international platform and recognition to which they aspire."

Amanda Davies, CNN, Doncaster.

UNIDENTIFIED FEMALE: One, two! Afghanistan!

NEWTON: Now, FIFA also told CNN that it has worked to improve the situation of Afghans women's football in the country and for players in exile since their evacuation from Afghanistan in 2021. Now, a cow that was set to be slaughtered is now living her best life

at an animal sanctuary in Arizona.

[00:40:00]

Mootilda, as the cow is now known, was being dropped off at the facility back in August when she managed to run away. The escape was caught on camera. And when the owner of the animal sanctuary saw the video online, she knew she had to take action.

She rallied community support and raised $2,500 to buy Mootilda. And we know how the rest of the story ends. She was on a mission.

I want to thank you for watching CNN NEWSROOM. I'm Paula Newton. I'll be back with more news at the top of the hour. WORLD SPORT, though, is up next.

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