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Democrats Weigh The Impact Of Dredging Up The Biden Debate; Matt Mahan Makes Closing Pitch In Final Days Of CA Gov. Race; White House Postpones Action To Push For Voluntary Review Processes Of New AI Tools; Town Halls Erupt Over Plans To Build AI Data Centers; Could Backlash To AI Data Centers Affect The Midterms? Aired 12:30-1p ET

Aired May 28, 2026 - 12:30   ET

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

[12:30:00]

DANA BASH, CNN ANCHOR: -- maybe a little bit by their faces, but not on what they said, that they had that exchange that she's now revealing.

ZOLAN KANNO-YOUNGS, CNN POLITICAL ANALYST: Right. And there was that moment where also you had the First Lady telling the President after the debate, you know, paraphrasing here, but you did so great. You answered all the questions as well.

I do think it's important for people to remember, too, the First Lady, as well as the President -- President Biden's family at that point, were really the inner circle as well that was telling him to kind of continue the fight, even when other Democrats were saying that his electoral chances and chances in the presidential election were dwindling, and pushing for him to step down.

She was one of those people that was saying to continue, right? And she really was a close confidant. So now to have this, these details that even she really had doubts about that debate performance. And to your point, he also did acknowledge at the time that it wasn't a good performance. But overall, you had a White House for days after that, that were really --

BASH: Right.

KANNO-YOUNGS: -- playing down the political ramifications of it.

BASH: Yes. And, I mean, she's -- I mean, there's so many questions to follow up on. If she thought he was having a stroke, they went to a rally. They didn't go to the hospital. We don't know what happened between A and B.

Just a few other things that we're learning that she wrote in the book. "She denies any signs of senility or dementia foreshadowing debate. She posits he may have unwittingly taken Codeine cough syrup or Ambien to fight off the cold or help him sleep and writes that she wished she had thought to ask for a blood test after the debate. ABBY LIVINGSTON, CONGRESSIONAL CORRESPONDENT, PUCK: I mean, it's amazing disclosures given where everything was in July of that year. But what I sense among democrats is when Jake Tapper and Alex Thompson's book came out a year ago, they kind of had their family fight and processed this and kind of got past it. And so this is bringing it back.

And I don't think that that's especially desired. And the other thing is, I think, fascinating about this book is the title, "A View from the East Wing." And it's -- she seems self-aware about it, but it's a metaphor. The East Wing no longer exists.

BASH: Yes, that's not an accident.

JEFF ZELENY, CNN CHIEF NATIONAL AFFAIRS CORRESPONDENT: Yes.

LIVINGSTON: Just like many of the Biden policies.

BASH: Just on the note about Democrats not being too thrilled because we are five months before an election, I talked to several of them this morning. Here's just some examples. This is one House Democrat in a swingy district who wants to win reelection.

"We're finally moving beyond the Biden age debacle, and have Trump on the ropes ahead of November, the last thing we need right now is to rip open that wound." Jason Crow told me, "What's done is done. The new generation of Dem leaders are stepping up and taking power."

It wasn't universal, Jeff. I talked to one Democrat on the ballot in a tough race running statewide who said, I think -- the Democrats, they're still like him. "I think he's seen in the lens of compassion, like the grandpa who didn't want to give up the keys. Their anger with Trump supersedes any animosity toward Biden."

ZELENY: I hear that from some, and I think that that is kind of the traditional Democrat who do view the President, President Biden, in a charitable lens. Overall, though, I think I heard much more what you did from the first person. We do not need to hear from Jill Biden now about this episode, but there is something about the sympathetic view here.

She's promoting her book, and they're also trying to raise money for their library. And the challenge of that is immense. And I think by having -- you know, she had to say something about that moment since she is writing a book. And this was something that maybe she thought it at the time, but it certainly just reopens a wound of so many questions.

If it was a stroke, why didn't she say something? You know, and just the idea that she was the closest and fiercest protector of President Biden. And it's just strange credulity, I think, in the eyes of many Democrats that she really thought he was drugged. I mean, it just sounds a little bit hard to believe, but I'm eager to see the entire -- the entirety of the interview --

BASH: Yes. ZELENY: -- and see like sort of --

BASH: And --

ZELENY: -- what she says in the book as well.

BASH: In the book. Yes.

All right, thank you so much. Don't go anywhere. When we come back, California Governor Candidate Matt Mahan will be with me here. We will talk as we near Election Day in the very open race to succeed Gavin Newsom. Stay with us.

(COMMERCIAL BREAK)

[12:38:43]

BASH: We're in the final days of what's been a chaotic and unpredictable contest in California's governor's primary. And even though every registered voter was sent a mail-in ballot almost a month ago, the vast majority of them haven't yet been turned in. According to the Secretary of State, just 10 percent of Californians cast a ballot so far, 2.4 million out of 23 million.

Now, in California, all candidates compete in one primary, and the top two, regardless of party, advance to the generals. One of the Democrats in the race, San Jose Mayor Matt Mahan, released a closing video today. Here's a clip.

(BEGIN VIDEO CLIP)

MAYOR MATT MAHAN (D) CALIFORNIA GOVERNOR CANDIDATE: Why are we putting up with a government that's failing us? I've had it with politicians who make false promises or offer excuses for the status quo.

When they said people had a right to do drugs in public, I led a statewide campaign to mandate drug treatment and save lives.

(END VIDEO CLIP)

BASH: Mr. Mayor, thank you so much for being here. You do have five days left. There's a new poll out today that has you at 7 percent, Xavier Becerra at 23, Steve Hilton at 20 percent. So what is your pitch to voters who haven't voted yet? Why you?

MAHAN: Well, Dana, thanks for having me on. Look, I'm not focused on the polls. I'm focused on what people are going to say on June 2nd.

[12:40:03]

And my argument in this campaign is that we deserve better answers from our government. We deserve real solutions to our biggest problems. California is an amazing place.

We're diverse, innovative, have great weather. We have big challenges from unsheltered homelessness and housing that folks can't afford to some of the highest energy prices and failing public schools. As mayor of a big city, I'm accountable every day for delivering results. And I've made my city the safest big city in the country.

We've brought people indoors into shelter and treatment. We're moving the needle on housing construction by speeding up permitting times. And I just -- I'm making the case for policy solutions. And frankly, this campaign has been light on policy solutions.

We've got ideologues at one end offering a lot of false promises and then career politicians offering the status quo. This is a moment to challenge our government to give us better answers to our biggest problems.

BASH: Yes. And I know you are talking about homelessness. You're talking about ways to use AI in a positive way to make things more functional in government. But as you know far better than I, California is a very big state and you are mayor of San Jose.

But broadly throughout California, you have a relatively low name ID. You certainly did when you got into the race. And that was just in January is relatively late. Are you concerned that you're out of time?

MAHAN: Well, Dana, you know, I admittedly jumped in the race late because I didn't see anyone else in this field who was offering real policy answers to our biggest challenges, housing costs, energy costs, homelessness, and the rest. And I'm really proud of the campaign we've run over the last four months.

We have steadily gained in the polls as people have gotten to know me. It's been an incredible experience traveling around the state from the Central Valley to Southern California, up in Northern California where I'm base, talking to people about real things we can do to make their lives better.

I'm the only candidate who's called for a suspension of the gas tax. It's the highest in the nation, the most regressive tax we have that hurts working people and rural families. I've talked about our reading levels that are abysmal.

States like Mississippi are outpacing California. As a former public school teacher, I know what it takes, starting with one-on-one tutoring for kids who are falling behind and better teacher feedback and training. I know what it will take to get us to actually achieve the help our kids achieve their potential.

So we've been gaining in the polls. I know that when people get to know me and what I've done in San Jose and how I would lead our state that we keep going up. So I'm just going to keep focusing on real answers to our biggest problems and trust the voters to make the right decision.

BASH: I just want to ask a question about sort of the broader field. One of your opponents, Katie Porter, was on this show earlier this month, and she told me she's worried that Xavier Becerra, who is right now leading in the polls, if he's implicated in a corruption scandal that's currently only involving his former staff, that California could wind up with a Republican governor.

Now, to be clear, Becerra says he's done nothing wrong. But just kind of looking ahead to how this process is going to work post-primary, are you concerned?

MAHAN: Look, I don't have enough details to comment intelligently on it, but I think the big risk here is electing the same career politicians and expecting different results. We have to be a state that can stand up against the Trump administration when they violate the Constitution, threaten our vulnerable neighbors, while also delivering results on our biggest problems.

I believe the best resistance is delivering results and showing that California can lead the way in being a place that is aspirational, where young families can build a future, where people get a good education, can start a business, can afford to buy a home. Those are the basic things that frankly we're failing at today.

And I have held myself accountable as a mayor. I'm accountable every day. I can't walk through the grocery store without having people stop me and ask me what I'm doing on crime, on permitting, on homelessness. And I just -- I want a governor who is laser focused on results, not beholden to special interests, not offering a bunch of ideological rhetoric, but actually every day interested in governing the state as an executive, which is the something I have experience in. And I'm unique amongst the candidates and having both public and private sector executive experience.

BASH: Let me just ask you one question about AI. You are the mayor of the largest city in Silicon Valley, and you are supported by a lot of people in the AI industry. Last week, the White House abruptly scrapped an executive order to create voluntary review processes for AI models before they are released. Knowing what you know about AI, was that a mistake?

[12:45:07]

MAHAN: Well, look, Dana, if the White House isn't willing to regulate frontier models, I as governor will convene the other 49 governors around the country and come up with a framework for us to have oversight of frontier models that do pose real risks.

I'm someone who doesn't see technology as a black and white issue. It's not all good. It's not all bad. We're using AI to speed up buses, improve language access, make government more efficient and effective, which is great. But we also have to acknowledge that there are real risks to these tools. And we have to regulate them to make sure that we get the benefits of new technological capabilities without exposing people to risks.

We've invested in a massive workforce upskilling program to stay ahead of this AI revolution. So we're empowering our city workers to use new tools, to be more productive, to have more interesting jobs. And California has to lead the way.

As governor, I will make sure that we appropriately regulate tech to get the best of it without creating undue risk for people. And we have to acknowledge there are some real risks with these new tools.

BASH: San Jose Mayor Matt Mahan, California gubernatorial candidate. Thank you so much for being here today. I appreciate it.

MAHAN: Thanks for having me on.

BASH: And when we come back --

(BEGIN VIDEO CLIP)

CROWD: Shame! Shame! Shame! Shame! Shame!

(END VIDEO CLIP)

BASH: That is just a glimpse of the local anger over construction of AI data centers all over the country. What does it mean for the midterms? Stay with us.

(COMMERCIAL BREAK)

[12:50:45]

BASH: Across the country, billions of dollars are pouring into the construction of massive sprawling AI data centers but many local residents aren't happy about it. They're showing up to lodge their opposition at city halls, at town and country and county meetings rather and they have at times turned a bit chaotic.

(BEGIN VIDEO CLIP)

(INAUDIBLE)

UNIDENTIFIED MALE: Thank you.

CROWD: Shame! Shame! Shame! Shame! Shame! Shame! Shame! Shame! Shame! Shame!

UNIDENTIFIED FEMALE: Pocatello does not need a data center and Pocatello does not want a data center.

UNIDENTIFIED FEMALE: I'm concerned about water consumption, water pollution, air pollution, noise pollution.

UNIDENTIFIED FEMALE: Now is it OK that he can poison our children but we can't use foul language? But it's OK that they're voting to poison our children.

(END VIDEO CLIP)

BASH: Scenes like this tend to be a sign of where elections are headed. And so there has been a lot of reporting here at CNN and elsewhere asking the question with the midterms like five months away, as we've been discussing, will there be AI backlash at the ballot box specifically about what is happening in people's backyards? And as we have this discussion, we have part of the answer to those questions. Gallup just two months ago did some polling on this, questioning local construction of AI data centers. 27 percent say they support it. 72 percent oppose it. And then just look at the breakdown by party. Democrats, 75. Independents, 74. Republicans, 63. It's hard to remember something that is so universal pretty much across the board.

ZELENY: Across the board. We've seen this in red states and blue states, Republicans and Democrats coming to the conclusion that the constituents don't want this. It's a confluence of issues really. A part of it is the MAHA movement that is a strain of this but there's also a liberal strain as well.

I mean, but what's not being discussed is everyone loves their phone.

BASH: Yes.

ZELENY: Everyone loves the cloud.

BASH: Yes.

ZELENY: So at some point, this is going to be a real discussion of what choices are going to be made here. But for the moment, at least, the politics of this are very difficult. And for a while, labor unions on the Democratic side were supportive of building these data centers. So it was seen as supportive on that side, and business was on the right, but it's hard to find a --

BASH: Yes.

ZELENY: -- consensus now at all because people are pissed.

BASH: It's health and a lot of the issues that you talked about. Let's actually listen to a bite that went viral from Alexandria Ocasio- Cortez in a hearing on this.

(BEGIN VIDEO CLIP)

REP. ALEXANDRIA OCASIO-CORTEZ (D), NEW YORK: This is the current drinking water in Morgan County, Georgia, right after a data center was constructed. The metadata center was constructed. The only difference between the clean water and this was that data center.

(END VIDEO CLIP)

BASH: So that's obviously a very big issue. The other is energy costs because it takes a lot to power the energy of an AI data center. And in some communities, the consumers who live nearby are seeing their prices go up.

LIVINGSTON: So I think there's two tracks of this on a political level. The first one is the municipal level. And I talked to a city councilwoman in a major American city who brought this up unsolicited. And there is so much backlash to it. And I asked her where it was coming from, and she felt like it was very organic.

But then you have the federal races, which is a completely different category. And AI is spending a fortune, tens of millions of dollars in congressional races and primaries. And they're not necessarily running on AI. They're running on -- they're sending ads on other issues. And so there are going to be some members of Congress coming in who are very indebted to the AI world.

BASH: And yet there is an understanding, because of what we saw from those town halls, that this is an issue that they at least have to pay attention to in a bipartisan way. It's a huge issue in Utah. There's a massive 40,000-acre center in Box Elder County. I had Republican John Curtis and Democrat Mark Kelly on talking about this last week. Listen to them.

(BEGIN VIDEO CLIP)

[12:55:09]

SEN. JOHN CURTIS (R), UTAH: We're going to build AI facilities and I think we all want them here in the United States. Well, let's build them right. And I'm more than happy to lean on my colleague who's introducing legislation to give us some ideas. And I think people back home are craving for let's do this right.

SEN. MARK KELLY (D), ARIZONA: And I think communities absolutely should get a say. If they do not want a data center there, then they can build a support. It should go somewhere else.

(END VIDEO CLIP)

KANNO-YOUNGS: Right, we often talk about the division that's in this country right now and how divisive our politics are, but it's not often you have an issue that brings together, you know, Josh Hawley, Bernie Sanders, AOC as well. Steve Bannon has talked about this as well, all for maybe different issues and different motivations, but it is that sort of hodgepodge of frustrations that people are feeling now.

And you're right, folks need to pay attention to it. And that division over what to do has also expanded to the White House, too, by the decision to pull back on this executive order that would have issued some regulatory reforms as well on AI. You saw them pull that order back as well.

So moving ahead, you're going to see public officials continue to focus on this, particularly when you have states like Maine introducing a moratorium and other measures across the country being introduced on this.

BASH: Especially when you have states that have very competitive --

KANNO-YOUNGS: That's right.

BASH: -- races in November.

Thanks, everybody. Appreciate it.

Thank you for joining Inside Politics today. CNN News Central starts after a quick break.