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Trump Administration Backs off $1.88 fund After Backlash; High Stakes, Low Enthusiasm: California Votes Today; Sources: Trump Vented Anger in Call with Netanyahu Over Lebanon. Aired 6-6:30a ET

Aired June 02, 2026 - 06:00   ET

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

BRAD SMITH, CNN ANCHOR: Fans of "Oh, the Place You'll Go," finally, there's a new Dr. Seuss book out today. It's called "Sing the 50 States," published to coincide with America's 250th birthday.

[06:00:10]

The archivists at the University of San Diego library found the original manuscript and the cover art. Another children's book artist filled out the rest of the illustrations.

Well, that does it for CNN HEADLINE EXPRESS. I'm Brad Smith. CNN THIS MORNING with Audie Cornish starts right now.

AUDIE CORNISH, CNN ANCHOR: Today in the group chat, the Trump White House backs away from his anti-weaponization fund. So why this very rare retreat?

(BEGIN VIDEO CLIP)

SEN. CHRIS MURPHY (D-CT): The president of the United States cannot just dip his mitts into the Treasury, scoop out $1.8 billion to give to police beaters.

(END VIDEO CLIP)

CORNISH: Donald Trump, cursing over the phone at Benjamin Netanyahu. How sources say a heated phone call forced Israel to pull back in Lebanon.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Back up, man! Back up!

(END VIDEO CLIP)

CORNISH: OK. Protests over what some call cruel conditions at an ICE detention center in New Jersey. We're going to talk about what's going on inside where the cameras can't see.

And primary voters pick one of the biggest jobs in American politics today. So, why are there no big names running to replace California's Gavin Newsom?

And by the end of the day, TV villain Spencer Pratt could be one step closer to knocking off the mayor of Los Angeles.

(BEGIN VIDEO CLIP)

ELEX MICHAELSON, CNN ANCHOR: She says it's not time for amateur hour.

SPENCER PRATT (R), L.A. MAYORAL CANDIDATE: Agree. That's why I'm running.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The statement is not satisfactory. My constituents have made clear they don't want money for a ballroom. They don't want money for a slush fund.

(END VIDEO CLIP)

CORNISH: So, is the Justice Department's proposed anti-weaponization fund really gone? Republicans say they'll believe it when they finally see it.

Good morning, everybody. I'm Audie Cornish, and we're going to start with the White House, with Donald Trump seemingly backing off this attempt to create a $1.8 billion fund to pay people believe they were wronged by the Justice Department.

Now, the DOJ is saying it will abide by a court ruling which pauses the fund. That order only lasts until at least June 12th.

President Trump tells ABC news, quote, "If a court doesn't allow it, and right now, a court has held it up, what can you do?"

But ABC's Jonathan Karl notes that Trump never actually said he was giving up on the fund.

So, why did the White House talk about backing down from this fight? Probably because of the backlash with several Republican priorities on Capitol Hill falling over the issue, including a reconciliation bill to fund immigration enforcement.

(BEGIN VIDEO CLIP)

SEN. JOHN THUNE (R-SD): I do think that the best way to handle it is, if the administration decides to shut it down themselves.

(END VIDEO CLIP)

CORNISH: OK. Joining me now in the group chat, Chuck Rocha, Democratic strategist; Terry Schilling, Republican strategist; and V. Spehar, digital journalist and creator for "Under the Desk News."

So, guys, unfortunately, I got to start with Terry because you were on the day this thing was announced, right? Remember, we were talking about it that Monday, and I was like, OK, we're doing reparations now. And you were like, OK, here's the thing. I wanted to play for you Senator Ted Cruz, who gave us the tea on his

podcast about how this went down within Republican circles, within the Republican caucus. Here he is.

(BEGIN VIDEO CLIP)

SEN. TED CRUZ (R-TX): There were fireworks at an epic level, and I got to say, it's one of the roughest meetings I've seen in my entire time in the in the Senate. there were a lot of Republican senators who were just pissed. The entire meeting, they were screaming at the acting attorney general.

(END VIDEO CLIP)

CORNISH: Why? Why were they screaming at Todd Blanche? I know why Democrats don't like this thing. What happened, do you think?

TERRY SCHILLING, REPUBLICAN STRATEGIST: Well, look, I at the end of the day, I think it's a tough issue to defend, clearly. And it's a lot of firepower is being geared at anyone that, you know, speaks out.

CORNISH: You say "clearly." Did the White House think clearly when they launched this thing? I think they did it for a week.

I think the White House has been very focused on restitution. There has been a lot of weaponization against government. And it's not just the J-6ers. It's the parents at school board meetings who were branded as domestic terrorists. It is the pro-life grandmothers, Joan Bell and Paulette Harrow -- Harlow that were thrown in jail for protesting.

CORNISH: But were there Republican senators in the meeting being like, screw them grandmas. No, no, were done with this. No. But what do you think within Republican politics turned this thing on its side?

SCHILLING: Well, I think I think there's always been some Republican opposition to Trump. He's obviously been a disrupter for the whole Republican party.

But if you look at what President Trump has done at the Department of Justice. His Department of Justice got $6.8 billion in penalties and settlements through going after waste, fraud, and abuse in just their first year.

[06:05:12]

Meanwhile, Joe, that's double what Joe Biden had under his first -- or under his term.

CORNISH: Well, let me turn to the others, because I want to make sure we stay on message here in terms of finding out what happened with this retreat.

The White House very rarely says, We're not going to do anything anymore.

I know one of the things that happened is lawmakers then were like, oh, we're not passing your immigration enforcement bill. And in sort of Trump's hierarchy of needs, I feel like immigration is higher.

V. SPEHAR, CREATOR, "UNDER THE DESK NEWS": Oh, it's one of his favorite things for sure. He definitely wants that funding done.

I think when it came to the performativeness of it being 1776 fund, he really came into it maybe with short-term decision making, thinking this is going to look cool. It's going to be splashy. It's going to play to my base.

And then it didn't play to the base, because the base is paying $5 for gas. And you're talking about the MyPillow guy applying to get $400 million, because he was attacked. And it just -- it's absurd. It's -- and it makes no sense.

CORNISH: But is it the base or is it what the Wall Street Journal called the wounded bear caucus, people who lost. Some of them you'll see. Or people who are retiring. I'm going to just play a few voices.

CHUCK ROCHA, DEMOCRATIC STRATEGIST: I like to call them the YOLOs, but go ahead.

CORNISH: Yes. The YOLOs. This is a mix. This is from the start, from May to just last week.

(BEGIN VIDEO CLIP)

SEN. THOM TILLIS (R-NC): This is beyond the pale. This is not good for my colleagues. There's no one positive thing that could be spun out of this between now and November.

SEN. SUSAN COLLINS (R-ME); I do not support the weaponization fund as it has been described.

UNIDENTIFIED MALE: This whole thing smells.

SEN. BILL CASSIDY (R-L.A.): We're a nation of laws, so you've got to have laws.

REP. MIKE FLOOD (R-NE): I do not want $1 of that going to anybody who physically assaulted police officers, period.

(END VIDEO CLIP)

CORNISH: That last one, Mike Flood in Nebraska. Nebraska. Addressing constituents. And it was rough by the time he gave that answer.

ROCHA: And that's your answer here, is that this thing is very unpopular. And would it be popular any other time? Maybe.

But what's happening right now is we're only five months from the midterm elections, and they can see the writing on the wall, and they do not want this in ads that Chuck Rocha is going to be making against them.

To your point, I think he's going to come back, but I'm going to be making -- I'm like, let's clip that. Let's put that out there. For most of the folks that you saw on your TV screen, they're either

not running for reelection --

CORNISH: I saw that. Yes.

ROCHA: -- or they've already been beat by Donald Trump, who's put his hand down and said, you're not going to be here no more.

But that's not the problem here. Those are the easy ones. The problem are folks in moderate districts that are a little bit Republican or a little bit Democrat, who's going to have to fight for their lives. And they don't want to have to be talking about this use. They want to talk about whatever the issue is they think their constituents cares the most about.

CORNISH: Yes. And this has come up in other places. Earlier, we were playing tape from Joe Rogan and others who were also criticizing the deal over IRS audits in the future.

The deal is there won't be any against Trump and his family. So, it will be interesting to see if this fund does happen and if these other aspects of this settlement go forward.

You guys stay with me, because it is primary day, right? We've just been talking about how reporter [SIC] -- how voters are responding. And we're going to talk about farm country. Does Democratic Leader Chuck Schumer have an Iowa problem?

And then, California is heading to the polls on some of the biggest races in the state. Some voters say they are still looking for someone to believe in.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I don't support anything that's going on. Nothing. Literally.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

[06:12:44]

CORNISH: So, it's primary day in California. Voters in the country's deepest blue strongholds, putting Democratic rule to a major test.

So, voters have had to sort through a crowded field for governor, with 61 total candidates on the ballot. And even with all those names, some voters are having a hard time finding someone to support.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The moment you open your phone in the morning, it's -- you're bombarded with every single headline.

I want to fight any of the homelessness in our area. Any -- anything that can help against that. The drug problems, the housing crisis. Also, people in my generation, the millennial generation, we can't -- we -- I can't afford a home.

UNIDENTIFIED MALE: Do you plan to vote?

UNIDENTIFIED FEMALE: Not really. I don't support anything that's going on. Nothing. Literally.

(END VIDEO CLIP)

CORNISH: Nothing. Literally.

ROCHA: That is my spirit animal.

CORNISH: That is. OK. So, can we talk about, first, let me start with you. Sixty-one candidates. How do you stand out? I just -- it looks difficult. Tom Steyer, I know, he has so much money, and he has spent hundreds of millions of dollars on his campaign. And even he is not in the lead. So, tell me what's going on.

ROCHA: The whole thing about Tom Steyer is the more money he spends, the more -- less popular he gets. That's how you know you should not be a politician, A.

B, let me -- let me lay the groundwork for everybody here in California.

In California, it's much different than in your state. In California, the top two people, no matter what party you're in, they get to go to the general election. So, there could be instances where there could be two Democrats, two Republicans.

CORNISH: Yes.

ROCHA: But no matter. You can love or hate the system. It's very unique.

And in this, 61 people running. And in California, everybody gets a ballot mailed to their home. So, you get a catalog from the attorney general -- not the attorney general, the secretary of state --

CORNISH: Yes.

ROCHA: -- mailed to your home to make this decision.

And so, in California, as well, for all of you girls and boys scoring at home, it's very expensive to run, because you have so many big media markets: L.A., San Francisco, San Diego.

CORNISH: Anything that surprises me in in that, then why are so many people running? And why is there no one who's really, like, pulled very far ahead?

And V., I know you hear a lot from your audience at "Under the Desk News." And what are people saying about their choices there? SPEHAR: Well, I think we have to remember that there was somebody who

was kind of pulling ahead, and it was Swalwell. And then he was, obviously, held to account for his actions. And that sort of shook up the race in a way that made it very uncomfortable for folks to decide quickly who they were going to get behind.

[06:15:10]

And where I'm really disappointed in the California candidates across the board, all 61 of them -- certainly the top two -- is instead of putting forth a policy of like, hey, if you choose me, this is what you can expect from the person who will run the fourth largest economy in the world. This is how I'm going to deal with the issues of homelessness and Hollywood leaving.

Instead, they went negative on each other so hard that to this -- this voter, future voter's point --

CORNISH: Yes.

SPEHAR: -- she's just negged out. She doesn't want to deal with it. She's like, I'm going to tune out everything.

CORNISH: So, every time there's a negative ad, Democrat on Democrat, Terry, does a Republican consultant get their wings? Do you suddenly --

SPEHAR: I think so. Very easily.

CORNISH: -- take flight at the joy that money is being wasted in a blue state by blue candidates when there's bigger fish to fry?

SCHILLING: I wish. Look, I -- I think what I'm most disappointed in with the Democratic candidates in California -- first of all, I think it's -- it's a real indictment of democracy in California that Republicans --

CORNISH: You should take care of Republicans --

SCHILLING: They are running. But they really don't have that great of a shot, which, you know, what I'm disappointed in with the Democratic leadership in California is that, in L.A., they spend $91,000 for all these NGO programs to help the homeless. You could literally give these people jobs and actual homes.

The thing that bothers me the most, though, is my dad was a recovering drug addict. And they give out clean crack pipes. They give out clean needles to drug addicts. They don't try to get them clean. They just lock them into this drug addict lifestyle.

CORNISH: Can I ask a question very briefly about the governor's race? If it's a jungle primary, then theoretically, a Republican does have a shot. Why don't you think that is? It's not a situation where you can be, like, it's redistricting. You know what I mean? It's, like, this is the time.

SCHILLING: There's just -- I think that California took that Chicago Democratic machine model and just took it to the next level.

CORNISH: The whole state, you mean?

SCHILLING: The whole state. It's -- I -- there might be a shot if you get a Republican through that jungle primary.

ROCHA: It's really important to know that Donald Trump has endorsed in this race. And he endorsed Steve Hilton, which has catapulted him when they were two Republicans --

CORNISH: Yes. Steve Hilton has moved forward.

ROCHA: -- to be almost guaranteed one of the top two.

And, also, if you look at early votes right now in California, they have a wonderful data system. So, you can actually see who has voted so far. And so far, almost the exact same amount of Democrats and Republicans have voted early so far.

The difference is, Audie -- and you love this part because you love the independents --

CORNISH: I do.

ROCHA: -- is that --

CORNISH: Don't make that little hand motion.

ROCHA: -- is that almost as many independents has voted. So, they're literally going to make the difference in this jungle primary.

CORNISH: So, is there a chance there could be a Republican governor of California again?

ROCHA: There's always a chance. It's probably the worst year for there to be that chance.

CORNISH: Yes.

ROCHA: But there's been Republican governors in this state not that far ago.

CORNISH: Yes, of course. That's why I asked.

SPEHAR: I'm rooting for a Republican to get one of the top two spots, just because I don't know that we, as creators, could handle a Steyer- Becerra to November situation.

ROCHA: That part. That part that V.'s talking about.

SPEHAR: I mean, so I --

CORNISH: All right, you guys. Stay with me. because we're actually going to come back to this, especially you mentioned some aspects of the L.A. mayor's race. We're going to talk about that. But in the meantime, I want to touch on this international news. The

president losing patience with Benjamin Netanyahu. There are sources saying that there was some choice words said over the phone.

Plus, don't call it a comeback. Serena Williams is making a return to tennis after taking three years off.

And now I want to say good morning to Des Moines. Beautiful sunrise there on this primary day.

(COMMERCIAL BREAK)

[06:22:32]

CORNISH: So, this morning, a source tells CNN that talks with Iran are back on track after Iran suspended them on Monday. And Trump described the suspension to ABC News as, quote, "a little glitch."

The little glitch: Israel threatening to hit a Hezbollah stronghold in Beirut, Lebanon. President Trump said he had, quote, "a very productive call" about the plan with Benjamin Netanyahu.

Sources tell us it was a heated conversation, with Trump using expletives and reminding the Israeli leader how much the U.S. has supported him.

Netanyahu is backing down from hitting Beirut, but insists the IDF will continue operations in Southern Lebanon.

The group chat is back, but this time we have got Gordon Sondland, the former ambassador to the E.U. Thank you so much for being here.

GORDON SONDLAND, FORMER U.S. AMBASSADOR TO E.U.: Good morning.

CORNISH: So, what is the relationship between Trump and Netanyahu? I don't want to say that, just because people were swearing, things are bad. But what do you know about that relationship?

SONDLAND: Well, I can tell you they're like brothers from another mother. They talk all the time. Yes, they swear at each other. And the swearing, by the way, goes both directions.

They literally are almost like siblings. They think very, very much alike when it comes to U.S. policy vis-a-vis Israel, and vice versa. I don't view this as anything other than business as usual.

Netanyahu is in a real box with Hezbollah, because they started with a real ceasefire. And of course, Hezbollah violated it within two minutes. And Netanyahu has no choice. He has to hit back.

CORNISH: So --

SONDLAND: And Trump is trying to play three-dimensional chess with Iran.

CORNISH: He is. Can I ask about that? SONDLAND: Yes.

CORNISH: Because so far on this show, we often talk about Iran and the U.S. That's the conversation. What is the deal, nuclear.

And in the meantime, these bulldozers moving through Southern Lebanon says there's another actor here. And that issue has not been addressed, and Iran has brought it up.

Does it have -- is Trump having this conversation with Netanyahu in this way, because it's jeopardizing any hopes of the deal; reopening the Strait of Hormuz; all these other issues that are all tied together?

SONDLAND: Don't kid yourself. There's not another actor here. Hezbollah is a complete proxy for Iran. Hezbollah does --

CORNISH: Yes, but I'm saying it was U.S.-Israeli strikes, right? That was the initial. And so, is -- where is Israel in the conversation between Iran and the U.S.?

SONDLAND: Israel? Here's where Israel is in the conversation.

The -- the news that never really hit page one that should have been -- well, it probably hit page one, but it disappeared instantly. When Pezeshkian resigned, the president of Iran resigned. That told you everything you need to know about what's going on there.

[06:25:16]

Trump is dealing with a five-headed monster. He's dealing with multiple factions of the IRGC, and they're fighting amongst each other. The more moderates -- and calling Pezeshkian a moderate is really saying something, because he's no moderate. But compared to the others, he really is.

When he resigned, it tells you that Trump does not have one solid interlocutor in Iran with whom to negotiate this deal, and they're all trying to placate one another.

The IRGC has billions of dollars stashed overseas in Swiss bank accounts and elsewhere.

CORNISH: Yes.

SONDLAND: They want to keep their money. They want to keep their power.

CORNISH: But he's negotiating with someone, right?

SONDLAND: With many.

CORNISH: So, there is a conversation.

SONDLAND: With many.

CORNISH: But here's something Axios is reporting. We mentioned the cursing. Axios went further.

They said, summarizing Trump's remarks to Netanyahu. The U.S. official said -- so this is coming from our side, leaking this. "You're F-ing crazy. Youd be in prison if it weren't for me. I'm saving your ass. Everybody hates you now. Everybody hates Israel because of this."

This is what they're attributing to Trump. And in the meantime, I just want to show for audience Pew Research Center, American views of Israel, and specifically Netanyahu, are upwards of 60 percent disapprove.

SONDLAND: Which means he's doing a fantastic job.

CORNISH: Netanyahu?

SONDLAND: Netanyahu is doing a fantastic job.

CORNISH: So, is Trump responding to the fact that there are large numbers of the U.S. population that don't think he's doing a fantastic job?

SONDLAND: Trump is responding to a situation that is momentary. In other words, he's clearly getting somewhere with someone in Iran, and he views Netanyahu at that moment in time, not generally, as F-ing that up.

So, he's saying, like you would to a brother, just stop for a minute.

CORNISH: Yes.

SONDLAND: Just stop. I'm trying to get this deal over the edge.

CORNISH: And in the meantime -- I'm going to draw Terry into the conversation, because when I tried to break out the numbers in Pew, Democrats versus Republicans, we saw what we know from the last two years. Democrats, 80 percent Democrats within U.S. view Israel and Netanyahu unfavorably.

The number that struck me is Republicans going up to 41 percent. And it seemed to be in line with the world of what we have been calling marquee podcast land. Right? Your Tucker Carlsons and whoever, even the Rogans of the world who are being very -- who are expressing their frustration with Netanyahu and Israel to their -- to their constituencies, to their listeners.

SCHILLING: Yes. Well, look, this is what happens when you get $5 a gallon for gas.

Republicans are very frustrated. We did not vote for this at all. And I think a lot of the discrepancy is coming, because Trump's trying to get a peace deal. He's trying to tone this down and get out of this. And meanwhile, take away Iran's nukes.

But Israel doesn't want Iran to exist, right? That's the reality. And -- and that's why they keep doing these things and screwing up our peace talks. But you're going to see that number continue to tick up the longer

this conflict goes on. And that's why it's very important that President Trump gets -- gets to a quick (ph) conflict.

SONDLAND: I don't agree at all. Israel -- You're saying Israel does not want Iran to exist? Israel very much wants Iran to exist as a partnership. What they don't want is the clerical regime to exist.

There are about 90 million people in Iran, and about 88 million of them would love to be a peaceful partner of Israel. The 2 million that don't happen to have all the money and the weapons.

SCHILLING: Well, I think actions speak louder than words. I'll defer to you. You are the foreign policy expert.

But I think that there's a lot of really bad things that we're seeing coming out of this entire conflict. And the quicker we can get out of it, I think the better it is going to be for our country and for the future of America.

CORNISH: Can I let you answer one more thing? Just because he said screwing up the talks. And like that -- this is, I guess, kind of the question I was asking.

Can you respond to that world of -- and maybe Republican voter that thinks Israel is, quote, unquote, "screwing up" the talks?

SONDLAND: I think, unfortunately -- and this sounds sort of unctuous, and I don't mean to -- but I think the American public is not well- educated on what Israel does for and with the United States, and why Israel is such a key ally.

And it's very popular right now to hate Bibi Netanyahu. But Bibi Netanyahu is fighting for the existence of his country.

And when you're fighting for the existence of your country, which could be wiped out just like that, you take a very different position than when you're just fighting for a little more territory, or a little of this, or a little of that. And that's the difference.

This is a very long conversation, which I know we don't have time for. But what Bibi Netanyahu is doing, he will go down 20 or 30 years from now, long after he's gone --

CORNISH: Yes.

SONDLAND: -- as one of the most consequential leaders in the world.

CORNISH: Well, in the meantime, these talks to try and reset that relationship geopolitically continue.

Gordon Sondland, I hope you will be back as we learn more from this White House.

Straight ahead on CNN THIS MORNING, the growing calls to close that detention center in New Jersey. [06:30:00]