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Escalation Of Strikes Amid U.S.-Iran Peace Talks; Venezuela Quakes Death Toll Tops 1,400, Thousands Still Missing; International Communities Rally To Help Venezuela Earthquake Victims; Bill Maher Receives Mark Twain Prize At Kennedy Center; Bill Maher Receives Mark Twain Prize At Kennedy Center; Texas To Require Millions Of Students To Study Bible Stories; Congress Passes Rare Bipartisan Bill Addressing Housing Crisis. Aired 7-8p ET

Aired June 28, 2026 - 19:00   ET

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

[19:01:03]

OMAR JIMENEZ, CNN HOST: Welcome to the CNN NEWSROOM, everyone. I'm Omar Jimenez in New York.

The U.S.-Iran ceasefire is tonight on shaky ground as military action and the war of words escalates this weekend. Now at the heart of back and forth strikes is the Strait of Hormuz. Iran exerting control over the critical shipping passage and attacks on two ships in recent days, or at least attempting to exert control, prompting renewed threats by President Trump.

Overnight Iran also launching a wave of strikes. And this was the damage to one residential building in Bahrain. Iran says it was targeting U.S. military sites in neighboring Gulf countries, though the U.S. counters that none of those -- none of those sites were actually hit here.

CNN's Julia Benbrook joins us now from the White House.

So, Julia, let's just start with what is the administration saying about these latest strikes and the impact on the broader nuclear talks?

JULIA BENBROOK, CNN CORRESPONDENT: Well, as you pointed out there, really since Thursday, there's been this back and forth, this continued escalation there in the Middle East. And the big question is, how does this impact the ongoing talks with Iran?

A senior administration official tells me that those talks will continue as planned. They went on to say this, quote, "Nothing has been canceled. Technical talks regarding the implementation of the MOU," the memorandum of understanding, "are on track for the coming days as planned, and deconfliction channels are up and running after the Lake Lucerne Summit."

Now, Secretary of State Marco Rubio had previously said that talks would take place on an expert level, likely on June 30th, just a couple of days away now. And it was last weekend, Omar, that Vice President J.D. Vance traveled to Switzerland to kick off these high stakes, high level negotiations.

A reminder that that memorandum of understanding that has been signed by the United States and Iran was really just a starting point because it kicked off this 60-day time period for the technical negotiations to address details on some of the big issues, like Iran's nuclear program and the fate of its stockpile of highly enriched uranium.

But as this back and forth took place, starting really on Thursday, and then heightened as it went, there was an update yesterday, Saturday evening from U.S. Central Command that it had launched additional strikes. This was a significant update. Additional strikes on multiple targets. That's when Trump took to social media saying that it's possible that Iran never learns, adding that if that happens, the Islamic Republic of Iran will no longer exist.

So again, a senior administration official says that these talks will continue as planned. So far, at least publicly, we have continued, though, to see things escalate, as Trump has said, and the Trump administration has said that they could take further military action if the Iranian strikes continue.

The IRGC has said that if there are violations of the ceasefire, what they perceive as violations of the ceasefire, then all of the diplomatic processes could come to a halt. So still a lot of questions here, but the latest is that those talks will likely continue -- Omar.

JIMENEZ: All right. Julia Benbrook, really appreciate it.

I want to bring in CNN military analyst and retired Air Force Colonel Cedric Leighton.

So, Colonel Leighton, a U.S. official says Iran hit none of their intended targets in these latest strikes. But I just wonder how effective is just the threat of Iranian drones and missiles as a deterrent to the flow of traffic in the Strait of Hormuz, which is obviously the central issue in this escalation here?

COL. CEDRIC LEIGHTON, CNN MILITARY ANALYST: Yes, it certainly is the central issue, Omar, and I would say the just the very threat of drones, missiles or mines attacking something or potentially attacking something in the Strait of Hormuz, that's pretty significant. And from a commercial shipper's perspective, that increases the risk.

[19:05:04]

So a commercial shipper is going to weigh the risk whether or not, first of all, they believe the threat is credible, and so far they seem to believe these threats are credible, and if they can somehow find a way around those threats or potential threats. And, you know, the idea of shipping, you know, sending ships through the southern channel, which is along the Omani Coast, that helps mitigate that threat somewhat.

But it doesn't completely eliminate it. And when vessels are struck on that southern route, that becomes a particular problem for them. And it increases their unwillingness to take that risk. JIMENEZ: What is your, you know, I think people who might be looking

at this from the outside in are thinking to themselves, well, I thought there was a ceasefire. Now you've got all these strikes back and forth, these kinetic strikes back and forth. And now the ceasefire does still appear to be holding technically? The memorandum of understanding process seems to be going forward?

Just what is your assessment on whether the ceasefire between the U.S. and Iran is actually holding?

LEIGHTON: Yes, it's definitely a bit of a porous ceasefire. And so you can't blame anyone who's looking at this and, you know, and saying to themselves, well, this is not really a ceasefire. They're still shooting at each other. The key question, I think, is volume. You know, how much of a volume of firing back and forth is there? And you know, how extensive is the back and forth between the U.S. and the Iranians?

And it is definitely much less than it was during the height of this war. And the type of weapons that are used and the type of targets that are struck are basically very limited targets on both sides. And that very fact indicates that, although the ceasefire is tenuous, and that is certainly true, it is still holding enough so that discussions like those technical talks and, you know, that are coming up are going to continue. And the fact that those technical talks are continuing, that is a relatively good sign definitely.

JIMENEZ: And, you know, as we were showing before we came to you here, Gulf countries are getting swept up in the fighting, especially being targeted as well. Both Kuwait and Bahrain say they were targeted. And Iran's foreign minister today said countries in the region must not allow their territory or facilities to be used for attacks.

And can you just talk us through how important these U.S. bases and relationships are in the region?

LEIGHTON: Yes, they're extremely important. They're basically a vestige from our previous engagement in the Gulf. And that includes even before Desert Storm. So even before the 1990s, we had a presence in the Persian Gulf region, both in Saudi Arabia as well as in Bahrain and also in Kuwait and the United Arab Emirates. So this very fact that we have this presence here is basically designed to not only protect American power, but it was frankly designed to be a bit of a bulwark against Iran.

So what the Iranians are doing is they're basically telling the Arab countries in the Persian Gulf that they really have a, you know, a choice to make here. Do they go with the United States and what may be outdated protective measures that the United States is willing to use, or are they, you know, going to go with Iran or at least be more amenable to Iranian efforts to increase Iran's power within the region?

So that's really the choice that the Iranians are presenting the Gulf nations and the Gulf nations are either going to side with the United States, or they're going to choose a path that's closer to Iran, perhaps a middle path between the two countries. But that's basically why these installations are so important. They project American power, but they also show an American presence in the region that is designed to protect those Arab countries.

JIMENEZ: You know, part of what is eventually the destination for the memorandum of understanding is getting, of course, to the nuclear question. And there is a piece of commentary today in the semiofficial Iranian news outlet FARS, which argued Iran has no alternative but to build a nuclear weapon.

Now, I should say this was an opinion piece not endorsed by any government official, but bottom line, preventing Iran from ever having a nuclear weapon was why President Trump argued the U.S. went to war in the first place. And I just wonder, is there a world in which you see there being enough trust between the U.S. and Iran that that nuclear path could be even feasible or possible?

LEIGHTON: So if the idea is that there is less of a degree of trust between the U.S. and Iran, then I see it being very feasible that the Iranians will seek to develop some kind of a nuclear device at some point, even though they've made statements as far back as 2003 that they're not going to conduct either tests or the development -- the further development of a nuclear weapon.

[19:10:11]

But we have to remember, before 2003, the Iranians did have a nuclear weapons program that they admitted to. When you go to, you know, the IAEA inspections and take a look at some of the inspections throughout the last few decades, it's pretty clear that the Iranians have at least kept enough stuff in reserve, including the highly enriched uranium and the centrifuges to potentially restart a program if they, you know, not only have to have the scientists, but they also have to have the material to make that happen.

And if they have those things, they're at least giving themselves the option of doing it. And they're looking at things like has happened in Ukraine and happened with Libya, and of course, they look at the North Korean example, which is a state that developed nuclear weapons. The North Korean regime has survived, Libya did not survive, and Ukraine is fighting a war that some would argue would not be happening if Ukraine still had nuclear weapons.

So the Iranians look at the nuclear weapons as being a security blanket, basically, a potential security blanket and that could make a difference in not only how they proceed with these negotiations, but really what happens next in the relationship between the U.S. and Iran.

JIMENEZ: Sure. Colonel Cedric Leighton, always appreciate you coming on. Good to see you.

LEIGHTON: Good to see you, too, Omar. Thank you.

JIMENEZ: Of course. All right. Still to come this hour, incredible stories of survival in

Venezuela as the race to find people in the rubble reaches a critical point. CNN is live on the ground. We'll take you there next.

Also ahead, Texas State Board of Education says bible stories will be among the required readings in public school classrooms. We'll have details on that, and the pushback.

You're in the CNN NEWSROOM.

(COMMERCIAL BREAK)

[19:16:33]

JIMENEZ: Tonight in Venezuela, people desperately searching for survivors still missing four days after a pair of deadly earthquakes struck the country. More than 1400 people are dead, with thousands still missing. Rescue workers from countries around the world are joining the search efforts, with some encouraging moments. Today, for example, a 60-year-old woman was rescued from a 15-story collapsed building after a 10-hour long effort that involved workers from Peru, El Salvador and Venezuela.

And look at that moment, American search and rescue workers helping pull a mother and her small baby from the earthquake rubble. But experts say with so much time having passed, the chances of finding people alive in this damage are declining.

CNN contributor Stefano Pozzebon joins us now.

So what can you tell us? You've been there on the ground covering the aftermath. What are you seeing now?

STEFANO POZZEBON, CNN CONTRIBUTOR: Well, unfortunately, what we're seeing here is we talked about this golden (INAUDIBLE), right, Omar? This idea that the vast majority of survivors are rescued after 72 hours from a moment of earthquake and it's 20 -- it's 96 hours now since the double earthquake hit Venezuela. And yet, I don't know if you can see it, because we need to stay close to the car to get a Starlink here, because, of course, communication lines have been very heavily affected.

But people are still working in that pile of rubble just a few hundred meters -- a few hundred feet from where we are standing. It's a never ending search. It's a never ending operation. And I wish you could also hear the sound.

Omar, I've been to this country for more than 10 t years, and Venezuela has always been loud for me. There is music, salsa, dancing. People are loud. People are smiling. Because of the operation that is happening here, the rescue workers are trying to locate the survivors by making contact with sounds, so they tap and they're waiting for some sign, vital signs, sign of life, which tap, tap.

And because of that, everyone, everything is still. Everyone's sound it's silenced. Everyone speaks in whispers because the rescue workers are always and constantly calling for silence, trying to make contact with somebody who could be by sheer force of miracle, still be alive under there. And so this is what remains of this for me in this moment.

The silence, you, like, they're really like they've just called for another silence. They whistle and they shout, silencio, silencio, which is silence, of course, in Spanish. And at that point, the whole operation stopped and everyone, everyone stops. (INAUDIBLE) because of course, any noise should be a life to be saved.

It's truly (INAUDIBLE). It's just desperate to see after 96 hours, as I was saying, Omar, they just keep going and going. Despite the evidence that right now, unfortunately, were more than four days after that earthquake, Omar.

JIMENEZ: Yes, the chances just go down and down. But you still have to work through this. And the eerie silence there in Venezuela, as you point out,

[19:20:03]

Stefano Pozzebon, really appreciate the reporting. Stay safe down there. Keep doing great work.

All right. Meanwhile, as those rescue efforts continue in Venezuela, the international community is lending its support in many different ways, trying to help those affected by this tragedy.

CNN correspondent Rafael Romo has the latest from Lilburn, Georgia, a suburb of Atlanta where people are pitching in to help the victims.

(BEGIN VIDEOTAPE)

RAFAEL ROMO, CNN CORRESPONDENT: It's a massive effort here in Lilburn, Georgia, where dozens and dozens of volunteers have showed up to collect donations for the people affected by the earthquakes in Venezuela. As you can see behind me, there are many boxes of items being donated, and when they come here, when people come here to deliver the help, the items are separated depending on type.

For example, we see some non-perishables in the back and that tent back there. There's another tent where people are packing up medicines and medical supplies. There are also other places where people are collecting clothes. Normally, the organization that is behind this effort tells me that when they do community events, they get 50 people or so. This time around, they say for this massive effort, around 500 people showed up to help.

That's not all. This is day three of the collection efforts, and they tell me that they have already collected more than 40 tons of help that are going to be shipped to Miami, to be then transported to Venezuela. I've been talking to some volunteers about the reason why they're here, and this is what some of them told me.

ALEJANDRA TROMBETA, VENEZUELAN VOLUNTEER: We all came together and helped, even from afar. It's been frustrating to not be able to do more, but we're doing what we can. I am proud, I am just overwhelmed like the love that we've received is overwhelming. We have Mexicans, Colombians, Americans. We -- everybody came together for this. And it's just, the response has been just overwhelming and very, very positive.

CARLOS CARRASQUERO, VENEZUELAN VOLUNTEER: The response has been amazing all around the metro area in Atlanta, as well as in the other cities in the U.S. and the world, because we have friends and family in Madrid, Barcelona, in Spain, and around the U.S. and its been the same reaction. The Venezuelans came up together.

ROMO: People here tell me that they have very powerful reasons to be here. They say it's the next best thing to actually being on the ground in Venezuela, helping their relatives, helping their friends who are affected by twin earthquakes in the last week.

I spoke earlier with the lady who told me that it was not until today that she found out that her grandparents in Caracas are alive and well. And that's the story that you hear time and again due to the communication problems in Venezuela because part of the infrastructure has collapsed.

Rafael Romo, CNN, Lilburn, Georgia.

(END VIDEOTAPE)

JIMENEZ: All right. Rafael Romo, really appreciate it.

Coming up, we are following Bill Maher set to accept the Mark Twain Prize for American Humor. These are live images. The man himself there, getting ready to accept that Mark Twain prize. We'll be live from the red carpet at the Kennedy Center next.

You're in the CNN NEWSROOM.

(COMMERCIAL BREAK)

[19:27:53]

JIMENEZ: Happening right now, comedian and late-night talk show host Bill Maher is at the Kennedy Center, along with hundreds of other industry A-listers, to receive a prestigious honor. He's there to get the Mark Twain Prize for American Humor. But the irony of tonight's event isn't lost. Maher is a vocal critic of the president.

The announcement of his award also came just as a federal judge ordered the president's name removed from the Kennedy Center facade. The court called the action and the president's controversial overhaul of the center unlawful. The Trump name was removed, but a tarp is now covering the spot where it used to hang.

Camila DeChalus joins us from the Kennedy Center red carpet.

So, Camila, tonight's ceremony could be one of the last major on stage moments at the center for the next several years. Explain a little bit of that but also who's showing up here. CAMILA DECHALUS, CNN CORRESPONDENT: Well, that's right. It's pretty

notable the fact that this is the first event at the Kennedy Center since a federal judge ordered the Trump administration to physically remove President Trump's name.

Now, at this time, Bill Maher will be receiving the 27th Mark Twain Prize for American Humor here at the center. And I actually had a chance to speak with him about this, whether he was surprised, just given the fact that just months ago, the White House denounced, saying that it was not true that he would not be receiving this prize. But now, today, he's going to be. And he really just talked about the fact that we're in such a political climate at this time that no matter who he speaks to, whether it's conservatives, whether they're liberals, that it's really about cutting through and really getting at the heart of the issue. And that is what he cares about.

Now, just at this red carpet, we've seen politicians like Democratic Senator John Fetterman. We've also seen other Trump administration officials leading the Department of Commerce, even people like celebrities that we've seen on the red carpet or others that had Netflix or Stephen Smith of ESPN. And so we've seen the most notable figures.

And what something that stuck out in my conversations with them is they talked time and time again about how Bill Maher has played a really influential role in our American politics through his interviews, through really cutting at the heart of the issue and really talking to people no matter where they stand on a political issue.

[19:30:04]

And they say, that's really what is out here and what is happening right now is that it is time to celebrate someone that's really great at really talking about the heart of the issue, no matter how hyperpolarized this country has become.

Omar, back to you.

OMAR JIMENEZ, CNN HOST: Camila, as I understand, too, just a few moments ago, you were you were talking to Bill Maher, who actually just walked past you, behind you again with Netflix CEO, Ted Sarandos. I just want to play a little bit of what he told you.

(BEGIN VIDEO CLIP)

DECHALUS: Back in march, you had the White House Press Secretary basically denounce that it was fake news, that you were going to be given a Mark Twain Prize, and now today, you're going to be giving them.

Are you surprised by that?

BILL MAHER, HOST, "REAL TIME WITH BILL MAHER": No, I wouldn't be surprised if it happens again before the show starts and that's like in an hour. anything could happen. It is a very exciting presidency.

DECHALUS: President Trump has publicly lashed out on you, on Truth Social, on numerous social media posts. you had even some of the Trump administration officials saying how he printed out some of your criticisms on him --

MAHER: I did that.

DECHALUS: You did that.

MAHER: I printed them and I brought it and he signed it.

DECHALUS: And they said that that was hilarious. I mean, what is your interactions like? The fact that you guys have been public with your feuding and then now you're getting this award and he has been very clear that --

MAHER: You know, the last four or five times he has been public about me, it is all its all back to yelling and screaming. I am this, I am terrible. I am a lunatic liberal. I am a lunatic. I am a lightweight. I am a jerk.

So we are back to that. It is okay. I would rather be still talking than the politics of you don't even exist. you know, you're too deplorable even to acknowledge.

I would rather be fighting and yelling and that's just his way of talking to people. You know, you've just kind of have to accept it. I'd rather the channels be open, and anything is better than channels just being -- sorry -- shut off.

DECHALUS: And then the last question I have for you, I mean, people have just commented about you, about how you have this ability, no matter if they're on the right side of conservatives or liberals, this ability to break through with comedy and laughter in a time where we are very polarized right now.

What is any recommendations you would give for others of how to reach people across the aisle?

MAHER: I can't. You just have to be like a cool guy that people want to hang out with. I am, some people aren't. Thank you.

(END VIDEO CLIP)

JIMENEZ: All right, that was Camila DeChalus reporting. Really appreciate it.

All right, coming up for us, from Sunday school to public school, Texas is now the first state to make Bible passages required reading in the classroom. But does the new law violate the Constitution? We are going to talk to an expert, next.

(COMMERCIAL BREAK)

[19:37:22]

JIMENEZ: Texas, now the first state in the country to require public school students to study Bible stories. The Republican-led State Board of Education approved a new mandated list of readings, including a picture book adaptation of David and Goliath, and bible passages about Adam and Eve.

Now, the change will impact more than five million students, which is concerning critics who say the plan will center Christianity over other religions and violate the separation of church and state.

CNN's Ed Lavandera has more.

(BEGIN VIDEOTAPE)

ED LAVANDERA, CNN SENIOR NATIONAL CORRESPONDENT: Omar, over the course of this week, the Texas State Board of Education heard from hundreds of people over hours and hours of testimony about whether or not to implement biblical teachings into the public school curriculum.

In the end, this Texas State Board of Education, which is controlled mostly by conservative Republicans, did approve this new curriculum. As I mentioned, it infuses biblical teachings at every grade level from kindergarten to 12th grade for more than five million public school students across the state of Texas.

Supporters say that this curriculum goes a long way to teaching U.S. History and Christianity's role in the country's history and its proper context, in the way the nation was created as well as western culture.

Critics say this is a clear violation of the separation of church and state, and that it excludes non-protestant Christians and the voices of non-Christians like Jews and Muslims.

One Republican did vote with the Democrats against this curriculum, and this is what she had to say.

UNIDENTIFIED FEMALE: Teachers need to be have their autonomy. They've been selecting books for decades, for years. This is nothing new. This is not a new concept to teachers. We are simply giving them a mandated list, which I believe is unconstitutional. But regardless of what I believe, let's not take their autonomy away.

LAVANDERA: Now, it will take some time for this curriculum to be phased into the public school curriculum here in Texas. It will not begin until 2030 and then phased into different grade levels over the next several years.

But most education experts we've heard from over the last few days say they know of no other state in the country that has gone to these lengths to teach biblical teachings in the public school curriculum -- Omar.

(END VIDEOTAPE)

JIMENEZ: All right, Ed Lavandera, really appreciate the reporting.

I want to bring in Rachel Laser, CEO of Americans United for Separation of Church and State. And Rachel, I just want to start with, how did you react when this mandate was passed?

RACHEL LASER, CEO, AMERICANS UNITED FOR SEPARATION OF CHURCH AND STATE: Maybe not surprisingly not well.

We fight hard to protect the religious freedom of families across this country and in Texas, and the government just should never be in the business of imposing one religion on all public school children. And here, that's exactly what this mandate does.

[19:40:10]

LASER: It requires students from kindergarten through 12th grade to read over a dozen Bible stories and passages. And by the way, one state selected version of them, right, which is divisive and that's a violation of our country's promise of church-state separation and religious freedom.

JIMENEZ: You know, some proponents of this change argue the Bible has historical significance to the founding of the United States and, you know, studying a Bible passage here and there helps understand how this country was built. And I wonder, what's your response to that?

LASER: That we are coming on our 250th Anniversary and what Americans should be celebrating is the American original, the American invention of the separation of church and state.

Our founders were really clear that they believed in religious freedom for all, and that they believed the way to get there was by separating church and state. Right?

And we've seen the violence that happens when you don't, the divisions, the conflict that arises, they were trying to avoid that. They were very clear. Right?

These curricula are part of actually a much broader story that's happening in Texas. Weve got the Ten Commandments mandate in every public school classroom. Americans United has three active lawsuits on behalf of Texas families challenging that requirement. We've got another law in Texas that allows public schools to replace certified school counselors with chaplains. And then we've got the Bluebonnet Reading Curriculum for kindergarten through fifth grade, which is also Bible infused, right?

This is an attack on the foundational promise of religious freedom for all and church-state separation. It is very problematic and all Americans should be extremely concerned.

JIMENEZ: Do you see Texas as sort of a practice ground or a testing ground, or potentially an example for other states in terms of, you know, you laid out the Ten Commandments, obviously, this new mandate as well. Is that how you see the state of Texas? LASER: I mean, that's how it tends to go, right? So you've got four states now that have these Ten Commandments in classrooms requirements. And Texas is, as far as we know, the first state to impose religious reading on public school students. And yes, usually what follows is more states do the same, and it is part of, as I said, a scourge really across this country that's threatening our pluralistic democracy, that all patriots should really cherish.

And, you know, we are seeing it with the federal government right now, too, right? With Trump portraying himself as Jesus on social media, with government agencies holding prayer services with a government sponsored nine-hour jubilee on the National Mall. Right?

We've got a big problem right now when it comes to one of the foundations of the stool, right, that our democracy sits on and it is a dangerous situation for everyone in this country, whether you're very devout and you're worried that your religion could get corrupted when the government merges with religion or whether you're non- religious, every American should care.

JIMENEZ: And it has definitely become a divisive issue in Texas. We've even spoken to some pastors who are not on board with this.

Rachel Laser, I really appreciate you taking the time. Thanks for being here.

LASER: Thanks so much, Omar.

JIMENEZ: All right, still to come, the housing crisis in America could get some relief. A rare bipartisan bill that could make it easier for millions of families to own a home, we will talk about it coming up. You're in the CNN NEWSROOM.

(COMMERCIAL BREAK)

[19:45:10]

JIMENEZ: This week, Congress celebrated a rare bipartisan victory after overwhelmingly passing the largest housing affordability bill in a generation. The 21st Century Road to Housing Act aims to boost supply, bring down costs and make it easier for families to achieve the American Dream of owning a home.

The bill now just needs the President's signature, but that was largely held up by the President, who wanted his proof of citizenship voting bill prioritized instead.

Regardless, a lot to talk about here on the housing side of things. Joining us now is the Executive Vice President at the Bipartisan Policy Center, Dennis Shea. He also served as Assistant Secretary for Policy Development and Research at the Department of Housing and Urban Development under President George W. Bush.

So, Dennis, can you just give us some context for how significant this piece of legislation could be for America.

DENNIS SHEA, EXECUTIVE VICE PRESIDENT AT THE BIPARTISAN POLICY CENTER: Well, sure. Thank you for having me, Omar.

I mean, people are feeling the housing affordability crunch. Home prices have gone up more than 50 percent since 2020. Rents have also gone up significantly since that time. And of course, incomes have not matched that. So we've done polling at the BPC, which said that 79 percent of Americans consider high housing costs to be an extremely important or very important issue. And 83 percent wanted Congress to do something to reduce housing costs and increase housing supply and that's what they did on an overwhelmingly bipartisan basis when they passed the 21st Century Road for Housing Act.

[19:50:07]

But as you pointed out in your opening, the focus of the bill is largely around increasing the supply of homes because there has been a mismatch between existing supply and the demand for homes, for housing.

The supply has not kept up with demand and that has led to higher home sale prices and higher rents.

JIMENEZ: Yes, so let's talk about that because, yes, as you point out, one of the goals of this legislation to expand upon manufactured homes, for example, to rapidly increase the supply. And it also gets rid of the wheeled base requirement that sometimes -- that makes it possible to move the homes at any point. And I just wonder, do you think that is a good solution for helping the supply issue? What do you think will actually help the most here?

SHEA: I think that's a really important provision. It removes the permanent chassis requirement in the HUD Code for manufactured housing.

Manufactured housing is already a very important source of affordable housing. But by requiring a permanent chassis to be put on every manufactured home, you're increasing costs and it doesn't reflect the reality today. Most manufactured homes, when they go to their location, their first location, they are there permanently.

So estimates are that removing the requirement that manufactured homes be placed on a permanent chassis would reduce the cost of a manufactured home by five to ten thousand dollars, and actually also allow greater design features to be added to a manufactured home.

So I think that's one of the most important provisions of the bill. It is a simple fix, but it is something that should be done.

JIMENEZ: You know, one of the issues that people were highlighting was this issue of investors buying up single family homes on a large scale in some cases, and how big of an issue would you say that actually is?

SHEA: Well, it is an issue felt in certain areas of the country. It is a very -- it is a regional issue. Large investors own a small percentage nationally of single family homes, but in certain communities, there is a greater concentration of investor activity. I know this is an important provision for President Trump. He mentioned it in the State of the Union Address, and so, it is included in the bill banning large investors, defined as those who own 350 or more single family homes from buying future single family homes.

JIMENEZ: Dennis Shea, appreciate the perspective. Thank you for being here.

SHEA: Sure. Great to be with you, Omar.

JIMENEZ: Now, outside the housing market, let's talk about the economy as a whole here. Because oil prices have fallen sharply since their peak after the U.S.-Iran war. But it is also worth zooming out for some perspective on the entire economic picture, because May was also the first time inflation topped four percent in years, and the third month in a row, we saw consumer sentiment drop. The former two of those times to record lows.

So, what's going on here? Back in the summer of 2022, you remember inflation spiked to over nine percent, the highest in four decades at the time. The economic picture around then is important because this was coming out of the COVID-19 pandemic, when governments around the world, you know, hit the gas pedal trying to pump the economy full of stimulus money to rescue it from stalling out.

And while inflation did spike, the U.S. spike was actually the lowest relative to all other major countries. But here is the key dynamic: Inflation was up and stayed strong through much of the year and even when it began to gradually tail off, wage growth lagged behind. So your paycheck, your buying power wasn't keeping up with that pace.

So fast forward to 2025, through the end of the Biden administration and into the beginning of Trump. Wages started to close the gap, finally giving people more buying power.

Now, through this, stocks were actually steadily hitting records, but overall, consumer sentiment was trending down. And this all adds to this dual economic reality that's been called the K-shaped economy. You've probably heard of it to this point, where richer Americans still keep on spending lower and middle, middle income Americans have to be more careful, and so you don't see as much on that front.

But then came the Iran War in February, effectively shutting down the Strait of Hormuz, sending gas prices up to over $4.50 a gallon in May, jumping over 30 percent by the way, from the month before.

So by stoking inflation up again, which is what it did, that delivered a powerful blow to your buying power. In May, annual wage growth fell below inflation again for the first time in years.

So yes, you already know things are more expensive, but to quantify it, things cost about 30 percent more since the pandemic era, and your paycheck hasn't always kept up. That helps explain why, even with solid job numbers, GDP growth, and stock market highs, in some cases, Americans are still feeling so awful about their money with consumer sentiment near all-time low territory, which means, look, a third month in a row, falling oil prices indisputably a good thing for consumers, but the massive changes Americans need to see to actually feel some economic relief is clearly a different war entirely.

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All right, coming up for us, just in to CNN, a U.S. official says Iran and the U.S. have agreed to stop attacking each other as they get back to technical talks for the agreement. We will have the latest from The White House next.

You're in the CNN NEWSROOM.

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