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L.A. Fires Risk Explosive New Growth as Strong Winds to Return; L.A. Wildfires Worsen Insurance Crisis in California; Special Counsel Report on Trump Jan. 6 Case May Be Public Within Hours. L.A. Wildfires Worsen Insurance Crisis In California; Biden: "On The Brink Of" Sealing Gaza Ceasefire, Hostage Deal. Aired 6-7p ET

Aired January 13, 2025 - 18:00   ET

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

[18:00:00]

WOLF BLITZER, CNN ANCHOR: Happening now, breaking news, an urgent warning in the L.A. wildfire disaster zone. Forecasters now say the return of powerful winds could lead to explosive growth of the blazes still raging in the region, threatening progress made by firefighters.

Also breaking, why thousands of Californians lost their fire insurance coverage before their homes went up in flames. We're taking a closer look at the state's worsening insurance crisis.

And the final report of the January 6th federal election subversion case against Donald Trump could be released within a few hours. The judge overseeing the case clearing the way for the findings of the now former Special Counsel Jack Smith to be made public on the brink of Trump's return to the White House one week from today.

Welcome to our viewers here in the United States and around the world. I'm Wolf Blitzer. You're in The Situation Room.

First to the breaking news in Los Angeles where the race is on to get raging wildfires under control, right now, crews are battling three major fires as strong winds threaten to reverse progress made over the weekend. About 60 square miles of L.A. County have already been charred by the outbreak. This is an area larger than the city of Paris. Officials now say the Eaton and Palisades fires both rank among the top five most destructive in California's history.

CNN journalists are on the scene inside the fire zone covering this historic disaster. First, let's go to CNN's Veronica Miracle with all the latest details.

(BEGIN VIDEOTAPE)

VERONICA MIRACLE, CNN CORRESPONDENT (voice over): Dire warnings coming at a critical stage for firefighters.

CHIEF KRISTIN CROWLEY, LOS ANGELES CITY FIRE DEPARTMENT: We are not in the clear as of yet and we must not let our guard down.

MIRACLE: In their nearly week-long battle against the deadly Los Angeles blazes --

CHIEF ANTHONY MARRONE, LOS ANGELES COUNTY FIRE DEPARTMENT: Severe fire weather conditions will continue through Wednesday. The anticipated winds combined with low humidities and low fuel moistures will keep the fire threat in all of Los Angeles County critical.

MIRACLE: A fresh round of Santa Ana winds bringing gusts in excess of 50 miles an hour and the perilous possibility of further spread or even new flare ups.

CROWLEY: I have strategically prepositioned engine strike teams and task forces, which are dedicated to rapid response.

MIRACLE: A relatively calm weekend allowed firefighters to make progress. The Eaton Fire in Altadena, which has damaged or destroyed at least 7,000 structures, now 33 percent contained. To the west, the Palisades fire has chewed through more than 23,000 acres.

CROWLEY: We have crews from up and down the state, outside of the state, have made excellent work overnight, mopping up flare ups and hot spots.

MIRACLE: Thousands of firefighters on the ground and from the air, working day and night to beat back the flames. Still, more than 90,000 people are under evacuation orders, not knowing when or if they'll be able to return. The LAPD halting a service to assist residents to retrieve small items and pets from their homes.

ASSISTANT CHIEF DOMINIC CHOI, LOS ANGELES POLICE: But we tried to put, be compassionate and put together a team to escort residents to their homes to either retrieve small pets, or their medication. But that line became exceedingly large and it was causing more problems and solutions.

MIRACLE: In the fire's wake, the stories of loss echo across the region.

UNIDENTIFIED FEMALE: People like me lost everything, not only the home, but every single thing in it.

UNIDENTIFIED FEMALE: Lots of tears, anger. We're going through the stages of grief.

JAIMIE GELLER, HOME AND BUSINESS DESTROYED IN PALISADES: I think it's just really overwhelming because you feel like you lost everything, but then so did everybody that you know. So, how do you mourn the loss of your life and then also everybody is mourning the loss of every -- it's overwhelming.

MIRACLE: The Gellers, like thousands of their neighbors, forced to flee only to return to utter devastation.

[18:05:00]

M. GELLER, HOME AND BUSINESS DESTROYED IN PALISADES: It's as if bombers flew over the community and completely decimated the community.

J. GELLER: So, how you move forward.

(END VIDEOTAPE)

MIRACLE (on camera): And, Wolf, we are in the heart of devastation here in Altadena. You can see just home after home behind us completely burned to the ground. Now, there's a man whose house burned down somewhere in this area who has now sued Southern California Edison, the utility company, saying that they are responsible for the destruction of this fire. SoCal Edison has repeatedly denied these claims. But there is a mechanical there's a fire that's control tower up in Eaton Canyon that is currently being investigated as the possible origin of this fire. Wolf?

BLITZER: All right. Veronica Miracle on the scene for us, Veronica, stay safe over there. Thank you very much.

I want to bring in CNN's Erin Burnett right now. She's in Malibu, California for us. Erin, people in Los Angeles County have lost so much over these past few days. It's not just homes, but people's livelihoods are at risk as well, right?

ERIN BURNETT, CNN ANCHOR: I mean, Wolf, absolutely. I mean, you've got this everyone on pins and needles because these winds have been picking up and they're looking at this forecast in the last few times this year when you had a forecast for winds as high as they're anticipated to get over these next, you know, 24, 36 hours has been a day that one of these other major fires started.

So, amidst that and that ongoing fear, you've got just a complete and utter destruction. You know, you've got now small businesses, people cannot make payroll. People's businesses are being forced to shut down. There's small business livelihoods in these towns that are now completely gone and obliterated, they don't have jobs. And that is an immediate thing. We're not even talking about the fact that their homes burned down and they're just at the very beginning of even figuring out where they're going to live.

I met with one woman today, Christine Moore, she has been operating a bakery for 17 years. She said when she got divorced, she started this bakery and it enabled her to raise three children. And today was the first day in 17 years she could not make payroll because business has dropped so precipitously. She also, of course, lived in Altadena. Let me just tell you exactly what she's going through right now, Wolf. Here she is.

(BEGIN VIDEO CLIP)

CHRISTINE MOORE, ALTADENA RESIDENT AND PASADENA BAKERY OWNER: We're not making payrolls today, the first time in 17 years, and I've spoken to a lot of friends that are also struggling with the fact that we've lost our beautiful town, our customers are suffering, and now our businesses are suffering. So, it's hard to prioritize that on top of the great loss that everyone is experiencing.

We've been feeding every family that has lost and then put out. We've been feeding the firefighters. We've been feeding the National Guard.

(END VIDEO CLIP)

BURNETT: And we went with Christine. I mean, she's, you know, suffering through that back to her home. She and her son were able to protect their home in Altadena by using hose water from their pool. So, it's still standing but just that sea of destruction and Altadena, Wolf. Now, they do a lot of crews because they're desperately trying to prevent any more sparks from those utility wires. While I was up there, up by NASA Jet Propulsion Labs, we did see that some of that fire retardant being dropped in advance of these winds that they're expecting.

And now, right now, Wolf, I'm standing in a part of Malibu that's been completely decimated. They're still worried about, you know, the possibility of more fires as they watch that Palisades fire. But even coming here, Wolf, one thing that stands out is the panic with which people had to leave. It's not just that you see burned out cars. When you're coming into Malibu, you see just like a complete smash pot of cars as people were fleeing.

So just -- it's just a complete mess as people were trying to get out so very quickly. And that's what happened just to, you know, try to put us all in the moment of panic and intensity that everybody felt at that moment.

But, Wolf, here we are right now, not feeling these winds here but that's what's expected to happen over these coming hours as these fears of flying embers and this growing fire continue. Wolf, back to you.

BLITZER: All right, just stay safe over there, Erin. Thank you very much, Erin Burnett reporting for us.

Right now, I want to bring in Cal Fire Battalion Chief Brent Pascua. Brent, thanks for joining us. You've been with me almost every single day. What can you tell us, first of all, about the Palisades fire and your crew's containment efforts?

BRENT PASCUA, BATTALION CHIEF, CAL FIRE: Right, Wolf. It was very productive weekend for firefighters out here on the Palisades fire. We were able to attack this fire from the ground and the air, which really helped in aiding containment on this fire.

BLITZER: Another strong wind, though, event will impact Southern California this week, potentially big time again. How is your team bracing for these really difficult conditions?

PASCUA: Right. We're out there hustling, making sure that we get all the hidden fire that may be under the ground put out. We're making sure there're no hot spots near the line.

[18:10:01]

We're putting an abundance of extra engines in the communities near the fire line. We're not taking any chances with this wind event. It's all hands on deck.

BLITZER: But, Brent, are you concerned that the progress you and your teams have made over the weekend, for example, it could potentially, God forbid, be undone in the coming days?

PASCUA: Yes, we don't want to let our guard down. There is a concern. If we see winds like we saw at the beginning of this fire, there could be problems. So, we're going to not let our guard down. We're going to keep mopping up this fire, keep surging crews into problem areas, and make sure that doesn't happen.

BLITZER: I want to show our viewers, Brent, some video that you were nice enough to send us of planes dropping retardant on the Palisades fire near Brentwood. How big of a game changer has this aerial support been?

PASCUA: Oh, it's huge. This is how we train. It's a choreographed dance, if you will, between the troops on the ground and in the air. Once we get those planes in the air to drop the retardant and then we have helicopters dropping water, pinpointing targets that may need it, it's night and day rather than having the rug pulled out from under us like the first two days of this fire where we didn't have any aircraft. It was a tremendous help this weekend.

BLITZER: On another sensitive and important issue, Los Angeles Public Health has declared a local health emergency for the entire Los Angeles County. There's deep concern about toxic ash and chemicals in the air. How can residents protect themselves?

PASCUA: Yes. You know, Wolf, I've been at other incidents just like this before. I know you either have to drink bottled water or at least boil your water. So, if it's smoky out, you're going to want to wear a mask as well, especially if you have any underlying breathing conditions. So, just take care of yourself. Look after one another and your family and, you know, you want to be safe with the smoke.

BLITZER: Important point. Thank you very much, Brent Pascua. Thanks for all you and your men and women who work with you are doing. We are all so grateful.

And just ahead, we'll have more on the breaking news. I'll be joined by Montana Senator Tim Sheehy. He's a former aerial firefighter.

Plus, we could be just a few hours away from the release of the special counsel's report on the January 6th case against Donald Trump.

(COMMERCIAL BREAK)

[18:15:00]

BLITZER: Back to the breaking news right now, horrific scenes emerging from Los Angeles as authorities are reaching areas hit hardest by the wildfire disaster.

CNN's Gary Tuchman is joining us now from the devastated Pacific Palisades neighborhood. Gary, you're in an area where hundreds of people unfortunately, sadly had to abandon their cars while simply trying to evacuate.

GARY TUCHMAN, CNN CORRESPONDENT: That's right, Wolf. Erin Burnett was just talking about panic. This street personified the panic. You can look at these incinerated automobiles. The most important thing to tell you, there were no people in the automobiles. What happened the night that the fire came down to this street from the nearby hillside is that people were stuck in traffic trying to evacuate. They ended up coming out of their cars because the traffic wasn't moving and running or walking away as fast as they could. The fire came down and burned the cars beyond recognition.

The only way we know what kind of car this is, for example, you could see under where the tire was, it says Porsche. There are dozens of cars here that have been incinerated. What's notable is across the street, there are also cars that were evacuated. We'll let this person go through. You can go through. If you don't want to go through, don't go through. That's fine.

These cars on the other side of the street are not incinerated because we were told by fire officials that the fire stopped in the middle of the street. But these people left their cars behind too.

One thing I was doing, we definitely assumed that there are no people in the cars. But we did check inside to make sure of that and we haven't seen any people in the cars, which was obviously tragic and sad. Either way, you can imagine how scary this was for the people who were here.

Wolf, right now, things are relatively calm. We know the winds are going to pick up. But this is a key moment. You heard from your previous guests that things are getting a lot better, but between now and Wednesday is when the winds are picking up. And we're hoping for the best over the next 48 hours.

BLITZER: Yes, it's so scary. Gary Tuchman in Los Angeles for us, Gary, thank you very much.

Joining us now, the Montana senator, Tim Sheehy, he's a former aerial firefighter, also a former Navy SEAL, I just learned. Senator, thanks so much for joining us.

You used to run a company that uses these so called super scooper planes. Tell us about that.

SEN. TIM SHEEHY (R-MT): Well, as you just mentioned in your last segment, these aircraft that are coming in flying, they're either dropping retardant or water. They're a key part of especially the initial attack phase of these wildfires because getting ground crews up there, sometimes if it's rough mountain terrain, it can take a long time to get ground firefighters on scene. So, the aircraft are oftentimes our best chance to get to that fire quickly, get a defensive line in place and do a direct initial attack. They're a key part of our fire response.

BLITZER: So, these planes, they scoop up the water, let's say there's a lake or even the Pacific, and then they dump the water on top of fire areas, right?

SHEEHY: Exactly right. So those videos you saw of the yellow planes flying in the ocean, those are the type of planes that I flew as recently as September. I was out waterbombing. Then the larger airliner type planes drop retardant. And these both type of planes, one is a defensive, makes a fire perimeter with retardant, and one drops water directly on the flames to attack the fire.

BLITZER: I know you've said that the U.S. now faces what you're calling a year round 50-state fire threat, and say there is a bipartisan solution to all of this. What does that look like?

SHEEHY: Well, we have to rethink wildfire, Wolf. You know, over a hundred years ago, the Great Chicago Fire and many other great fires caused us to realize we needed urban fire departments, we needed building codes, we needed fire hydrants. We didn't have things like that, and our cities burned to the ground.

[18:20:00]

Now, we're seeing in the last year and a half, Lahaina, Hawaii burned to the ground, New Jersey had terrible fires, Texas had the largest fire in Texas' history last year, and now we're seeing our largest city in America being burned to the ground.

So, we need to get serious about having ready wildfire solutions year round all over the country, because, as we see, even in January, wildfire is a very real threat. We have to overhaul across cutting through the bureaucracy solution to make sure we're actually ready to fight these fires wherever they occur.

BLITZER: I got a funding question. You're a member of the U.S. Senate now, funding critically important. How is fighting wildfires, Senator, treated differently than regular firefighting from a funding perspective?

SHEEHY: Almost entirely, Wolf. It's actually sickening if you look at how we pay our wildland firefighters versus how we pay our urban firefighters or our military members. We take great care of our military men and women, from a healthcare perspective, V.A. benefits to their salary, it's not perfect, but it's pretty darn good. Our wildland firefighters are treated like seasonal employees. They're underpaid, they don't get medical benefits. If they're hurt or injured on the job, many times they get worker's comp and that's it.

So, from compensating the professionals that do this job to also realizing that it costs -- it's going to cost $50-plus billion to recover from this terrible disaster in L.A. If we would have spent a small fraction of that on having enough helicopters, airplanes, and firefighters in place ahead of time, a dollar of probation is worth a thousand dollars of recovery.

BLITZER: Are you going to make that happen?

SHEEHY: Absolutely. I'm already working across the aisle, just right before I came over here on the floor of the Senate talking to our Democrat colleagues. This is a bipartisan solution in a very polarized time for our country. I think this is an issue we can really find bipartisan unity on to better serve the American people.

BLITZER: Bipartisan solution is so important.

CNN has learned, Senator, that President-elect Trump is in talks right now to visit Los Angeles, perhaps as early as next week. I want to play something that Trump said back in September. Listen to this.

(BEGIN VIDEO CLIP)

DONALD TRUMP, U.S. PRESIDENT-ELECT: Gavin Newscum is going to sign those papers. And if he doesn't sign those papers, we won't give him money to put out all his fires. And if we don't give him the money to put out his fires, he's got problems. He's a lousy governor.

(END VIDEO CLIP)

BLITZER: Governor Newsom, the governor of California, says Trump tried to deny the state aid during his first term, first four years. Should Californians now worry that he will seek to do that again?

SHEEHY: I don't think so. I think what you're hearing from the president is pretty clear that a lot of the issues that we're now seeing with these wildfires are coming from local management solutions that have failed. I fought fires in California this year. In fact, there'll be times where you can't scoop out of a body of water with those awesome yellow planes you were talking about that scoop water, you can't scoop out of this leg, even though it's right next to the fire. You've got to go 20 miles further because we're going to protect the Eurasian snailfish or whatever.

And you're prioritizing Endangered Species Act, environmental causes over the safety and well being of your residents. And nowhere is that more frustrating than California. And for a lot of these policies, they have consequences. And now we're seeing -- we're not pointing blame. I'm not. I'm simply stating a simple fact that policies have consequences. And if we're going to restrict water usage, if we're going to limit timber leases, if we're going to take our aircraft off contract in the winter, if we're going to reduce our fire budget in the city by $18 million, then we have to be ready for what those consequences are going to be.

BLITZER: But when President-elect Trump becomes president, you want him to support the people in California who have gone through this disaster?

SHEEHY: Oh, and I have no doubt that he will, but I wouldn't -- it's totally reasonable for him to expect change as a result of that. So, I'm not simply going to subsidize poor management. There were clearly failures in the chain of command here. We're not criticizing the firefighters on the ground at all. But the government structure around this, in California specifically, has been very poor in recent years. And he's going to expect reforms before he writes the big check.

BLITZER: All right. Senator, thanks so much for coming in. Quick question before I let you go, though. Tomorrow, the confirmation hearing for Pete Hegseth begins. He's been nominated to be the next defense secretary. As I mentioned, you're a former Navy SEAL. Will you support his nomination?

SHEEHY: We're planning to support him. I've had some great meetings and discussions with him. And listen, that's what these hearings are for. Bring these nominees in and ask the tough questions. I think he's going to do great. You know, he's addressed a lot of the concerns about his background. We'll see what he has to say tomorrow. But the reality is, having a combat veteran of the modern global war on terror generation is very important for me. My wife is a Marine veteran of Afghanistan. All my friends are combat veterans of this war. So, it's very important for us to see a member of our generation have a shot at running one of the most important agencies in the American government and an agency that needs reforms.

BLITZER: Do you think he's qualified?

SHEEHY: I think he is. Harvard, Princeton, Army officer, combat veteran.

BLITZER: All right. Senator, thanks so much for coming in. Senator Pete Hegseth, (INAUDIBLE). Senator Tim Sheehy, thank you very much, from Montana.

SHEEHY: Thank you.

BLITZER: I appreciate it.

And coming up, we'll get back to our top story, the race to contain the L.A. wildfires as dangerous winds are returning to the region now.

CNN's Anderson Cooper has our report from the fire zone, and we'll be right back.

(COMMERCIAL BREAK)

[18:25:00]

BLITZER: Right now, crews in Los Angeles are racing to try to contain the wildfires as very strong winds are returning to Southern California.

CNN's Anderson Cooper just joined a team of firefighters knocking out various hotspots in the Brentwood Heights area of Los Angeles. Anderson?

ANDERSON COOPER, CNN ANCHOR: Wolf, I'm in the Brentwood Heights area down. There's Mandeville Canyon fire moved through here on Saturday. So, there's no active fire right now. There's no smoke right now, but crews are doing incredibly important work today.

These are about 20 firefighters from Cal Fire. They are going over every inch of ground on this mountainside. They're looking for any hidden heat underneath the ground.

[18:30:03]

There can be hot spots that you are not visible just looking at this. So, they're literally kicking up soil. They're using rakes. They're using shovels. You can see there's a guy using a pickaxe right now, digging a hole, looking for an area that might be a hot spot.

As you can see, there's so much charcoal, so much debris from the fire here that moved through on Saturday. And there can still be pieces of wood that are hot, things underneath the ground that are hot. And they will try to dig.

And this is just one small section. There are crews doing this all over the fire zones, over the Eaton fire here in Palisades as well. They're going to work this section in kind of a grid and then they're going to move on and they do this systematically all day long.

It is incredibly difficult work. It is incredibly tiring work. They work in 24-hour shifts, but it's very important. It is vital that they get this done in order to have full containment of this fire. Wolf?

BLITZER: Anderson Cooper, thank you very much for your excellent, excellent reporting.

I want to get some more reaction right now from the L.A County supervisor, Lindsey Horvath. Lindsey, thanks so much for joining us.

Winds are expected, as you know, to pick up big time this week. How hard is this next round of firefighting going to be? Is L.A. County better positioned?

LINDSEY P. HORVATH, LOS ANGELES COUNTY BOARD OF SUPERVISORS: It is going to be extraordinarily challenging. The conditions that are predicted for this week are the same conditions that were predicted going into last week. So, we know that we are nowhere near being in the clear of this fire yet, which is why we are asking everyone to continue to heat evacuation orders and to help our first responders have a clear path to fighting this fire.

We have continued to increase resources on the ground. I know that. I've spoken with people who have been on the frontlines, some of them since the beginning of this fire breaking out, and they are giving it all they've got. When they come in for a break, they want to hustle and get back out there. They're driven to put this fire out. And I believe the team that we have is second to none in doing this work.

BLITZER: And we're grateful to those teams, for sure. You know, it's interesting, an Altadena resident whose home was destroyed in the Eaton fire is suing the electrical utility for Los Angeles for allegedly starting this fire. SoCal Edison denies the allegation. What can you tell us about the investigation into the cause of this horrendous fire?

HORVATH: What I know is that the area that's being investigated does include an electrical tower. But beyond that, I don't know the details of the investigation. I do know that it is ongoing. And we just are getting updates regularly from our fire officials. They continue to conduct a very thorough investigation. And in fact, we have federal agency partners on this investigation as well to ensure that we have every resource available to determine what has caused this fire and what the impact has been.

BLITZER: Lindsey, I want to play something the L.A. County sheriff said earlier today at a news conference. Listen to this.

(BEGIN VIDEO CLIP)

SHERIFF ROBERT LUNA, LOS ANGELES COUNTY SHERIFF'S DEPARTMENT: We're running across the remains of individual community members. That is not easy work.

People are saying, I just want to go look at my house and I want to see what's left. We know that, but we have people literally looking for the remains of your neighbors. Please be patient with us.

(END VIDEO CLIP)

BLITZER: We can see you on the side getting rather emotional. At least you looked like you were getting very emotional there. Do you have a sense of how many people are still unaccounted for tonight?

HORVATH: We don't have an estimate. We do know that there are a number of people missing, reported missing, whom we are looking for. And we hope that we are not finding them in this rubble. But we do know that we have teams out there seeking all those who are lost and making sure that if there are remains in any of these destructed areas, that we are able to identify them and hopefully at least bring closure for some of these families who are suffering unimaginable loss.

That's hope, indeed. Lindsey Horvath from the L.A. County Board of Supervisors, thank you very much for joining us.

And to our viewers right now, for more information about how you can help the Los Angeles area wildfire victims, go to cnn.com/impact or text wildfires to 707070, 7-0-7-0-7-0, to donate.

And just ahead, other news tonight, one of the special counsel's reports into Donald Trump could be released within hours. Stand by.

(COMMERCIAL BREAK)

[18:35:00]

BLITZER: We'll have more on the breaking news just ahead on the California wildfires, but, first, the final report on the federal election subversion case against President-elect Donald Trump could be made public within hours. Judge Aileen Cannon just gave the green light for the release of the report by the now former special counsel, Jack Smith.

Let's bring in CNN Senior Legal Analyst Elie Honig. Elie, thanks for joining us. Do Trump and the other defendants in this case have the ability to delay the release and potentially run out the clock until Trump is president one week from today?

ELIE HONIG, CNN SENIOR LEGAL ANALYST: Well, Wolf, first of all, Donald Trump and his co-defendants have zero, zero legal basis to block this report from coming out. They've spent the better part of the past week trying it and they've failed at every turn. The law says the special counsel has to produce this report and then the A.G., the Justice Department, has the decision whether to turn it over. The Justice Department has said they intend to do just that.

[18:40:01]

And the ruling that we got earlier today from Judge Cannon in Florida, who's generally been very favorable to Donald Trump, said he has no basis to block this, especially because he's no longer a criminal defendant. He's been dismissed from these cases, so he doesn't have the constitutional concerns about tainting the jury pool.

So, the arguments we've been seeing, Wolf, are really Hail Marys. We'll see if they try again between now and midnight, but, legally, they've got nothing.

BLITZER: So, when do you think we will actually see this election subversion part of the report? And should we expect to learn anything new?

HONIG: So, there is an injunction in place, meaning a pause that technically expires tomorrow, meaning technically at 12:01 tonight, which will become tomorrow, Tuesday, DOJ as of the current status quo, has the power to make this public.

Now, what we're watching for in the next five and change hours is will Donald Trump's team take that last Hail Mary, will they ask the court of appeals to block this? Will they ask the U.S. Supreme Court to block this? I don't think there's enough legal basis that any court of appeals, including the Supreme Court, is going to step in and delay this at all. And if they do, it will be very, very brief.

So, I do think we'll see this soon. I do not think Donald Trump's team is going to be able to run out the clock until he's president next week.

BLITZER: On another legal issue, the special counsel who's been investigating Hunter Biden is blasting President Biden in his just released final report calling the president, and I'm quoting now, gratuitous and wrong for calling his investigation into Hunter Biden unfair and tainted by politics. What do you make of that?

HONIG: Yes, it's an unusual move for any special counsel, and we've now seen a handful of special counsel reports over recent history to go out of his way to criticize the president or any sort of third party or nonparty. What David Weiss is talking about here, though, is the statement that Joe Biden made when he pardoned Hunter Biden. And indeed, that statement was filled with inaccuracies and unfounded allegations about this case being political. And a judge on one of the cases actually went out of her way to excoriate Joe Biden and to say what he has written in his statement is completely incorrect and completely unfair to the Justice Department.

So, this is David Weiss standing up for his team and the Justice Department. It's unusual to see it, said so explicitly, but that's what he chose to put in the report.

BLITZER: All right. Elie Honig, thanks very much for the excellent legal analysis.

Up on Capitol Hill, meanwhile, a critical moment in the Trump transition is about to begin. Confirmation hearings for the president- elect's cabinet picks get underway tomorrow, and Trump's controversial choice to become the defense secretary, Pete Hegseth, will be first in the hot seat.

CNN's Chief Congressional Correspondent Manu Raju is up on Capitol Hill. Manu, what are you learning on this, the eve of Hegseth's Senate hearing?

MANU RAJU, CNN ANCHOR AND CHIEF CONGRESSIONAL CORRESPONDENT: Well, right now, Wolf, actually, Senate Democrats who sit on the Armed Services Committee are meeting in Senator Jack Reed's office. He's the top Democrat on the Senate Armed Services Committee. They're talking about their strategy ahead of tomorrow's hearing, which is expected to be pretty contentious.

Members of Democratic side of the aisle have been very critical about Pete Hegseth's nomination. They say that he's not qualified for the job. They raised concerns about these allegations in the past about his misconduct, sexual assault and the like.

Hegseth has denied all of that. He's actually managed to keep Republicans on board, but Democrats, it's a different story.

Also, Wolf, a huge question, the FBI background investigation that occurred over Mr. Hegseth's past. That has been the details of which have been briefed to both Jack Reed and the Republican chairman of the committee, Roger Wicker. Other members of this committee have not seen the contents of that investigation. They expect to get briefed on it right now in this closed door meeting.

I tried to ask Jack Reed, the top Democrat, on the committee about that investigation. And he did not want to comment about this at all and suggested he would have more to say tomorrow.

(BEGIN VIDEO CLIP)

RAJU: Any concerns about the background check, the FBI background check?

SEN. JACK REED (D-RI): I am not ready until tomorrow.

RAJU: You're not what?

REED: I'm going to have a hearing tomorrow along with my colleagues and we'll see what happens.

BLITZER: Are you going to vote for Mr. Hegseth?

REED: He has to have an opportunity to testify.

RAJU: But you have concerns with his nomination more general?

REED: We do.

SEN. RICHARD BLUMENTHAL (D-CT): I think, you know, on the public record that we have right now, put aside all the charges of sexual impropriety and alcohol abuse, there has never been a nominee for an office of such serious consequence, who is so unqualified and unprepared in recent American history.

(END VIDEO CLIP)

RAJU: But, Wolf, Hegseth does not need any Democrats in order to get the job. In fact, he needs Republican support. He needs to limit Republican defections to three on the Senate floor. And right now, no Republicans are opposing him. Will that change after tomorrow?

[18:45:00]

That's the question. But at the moment, Republicans are confident he will ultimately get the job, Wolf.

BLITZER: You need a simple majority in the U.S. Senate to be confirmed. We'll see what happens. Manu Raju, thank you very, very much.

Coming up, some Californians may be facing financial ruin after their homes burned to the ground. We'll take a closer look at the catastrophic cost of the state's insurance crisis.

(COMMERCIAL BREAK)

BLITZER: All right. We're back with breaking news on the Los Angeles County wildfires.

As even more homes may be threatened by the return of very strong winds in the coming days. Californians are facing a worsening fire insurance crisis.

CNN's Brian Todd is working the story.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT: Francis Bischetti tells CNN his home in Pacific Palisades, California, is completely gone. Burned down in a scene he described to us as mayhem.

FRANCIS BISCHETTI, HOME BURNED DOWN, UNINSURED: It was just really intense, like -- like -- like intense at a level that I've never, ever experienced.

[18:50:05] TODD: Bischetti says he tried to protect his home by watering the property year round. He says he had to do that because last year he learned that the annual cost of his homeowner's insurance policy was skyrocketing.

BISCHETTI: We got a notice that our fire insurance went up from approximately 4,500, I want to say, per year, up to I think they -- they jumped us to $18,000 a year. And those are numbers that that we just could not afford.

TODD: He says he also could not afford to get on a program set up by the state called the California fair plan, which has higher premiums, less coverage and would have required him to cut down several trees on his property, which was too expensive for him.

So Bischetti says he basically was forced into an untenable position.

BISCHETTI: We sort of agreed between me and my sisters that that what will what we ought to just cancel the fire insurance.

TODD: Francis Bischetti story is not an isolated case. For several years, major insurance companies have been hiking up rates at an astounding pace in California and not renewing policies.

RICHARD GILLER, INSURANCE RECOVERY LAWYER IN L.A.: The insurance companies decided not to write new policies, or they decided just to not renew people. And that left a number of homeowners scrambling to try and find other private insurance.

TODD: The California department of insurance says that between 2020 and 2022, insurance companies declined to renew 2.8 million homeowner policies in California, including 531,000 policies in Los Angeles county, where the current wildfires are causing so much devastation.

State Farm, California's largest home insurer, announced last summer that it was seeking increases in rates of as much as 52 percent for some renters, citing increased costs and risks. State farm had already stopped selling insurance for new homes in California in 2023.

GILLER: It's incredibly risky in high risk areas. Some people are estimating that we could be looking at $50 billion or $60 billion in losses.

TODD: In recent days, California's insurance commissioner issued a bulletin to protect homeowners affected by the Palisades and Eaton fires for one year.

RICARDO LARA, CALIFORNIA INSURANCE COMMISSIONER: I am using my moratorium power to stop all non-renewals and cancellations.

(END VIDEOTAPE)

TODD (on camera): When State Farm announced it would stop new home insurance sales, the company issued a statement specifically citing skyrocketing construction costs and the risks posed by wildfires like the ones we're seeing now. Farmers Insurance, which was Francis Bischetti's carrier, did not respond to CNN's request for comment on his case, but told "The Los Angeles Times" it could not comment on Bischetti's assertions because the company does not discuss individual policyholders -- Wolf.

BLITZER: Very disturbing indeed. All right, Brian, thank you very, very much.

And coming up, CNN learning new details right now, emerging on the possible -- possibility of a ceasefire deal in the Middle East as President Biden gives his farewell foreign policy address over at the State Department.

(COMMERCIAL BREAK)

[18:57:25]

BLITZER: President Biden is using his final days in office to try to influence his foreign policy legacy. He made the case for his accomplishments during a farewell speech over at the State Department today, amid an urgent new push to try to finalize a Gaza ceasefire and hostage deal.

CNN's MJ Lee is over at the White House for us.

MJ, so what did the president say about a ceasefire and hostage deal between Israel and Hamas?

MJ LEE, CNN SENIOR WHITE HOUSE CORRESPONDENT: Well, this was one of many things that President Biden talked about in what was supposed to be a legacy burnishing speech where the president talked about his foreign policy accomplishments of the last four years, saying that America had been thoroughly tested during his time in office and that the country was coming out stronger for it, while America's -- America's adversaries were coming out weaker.

As for the situation in Gaza, Wolf, the president publicly saying what some U.S. officials have been saying to us privately or even in public that basically a deal is on the cusp of potentially being reached for a ceasefire in the Gaza conflict and for the hostages in Gaza to finally be released.

You know, it's been a really long time since we have gotten this sense of real optimism from at least U.S. officials involved in these negotiations. Nothing is final until it is final, and there's always going to be that note of caution. But what our sources have been telling us over the last 24 hours is that an announcement on a deal to end the war in Gaza could be coming in the next couple of days, essentially in the very final week of President Biden's time in office.

And in his speech at the State Department today, this is how the president summed up what this deal would entail. Take a listen.

(BEGIN VIDEO CLIP)

JOE BIDEN, PRESIDENT OF THE UNITED STATES: Pressing hard to close this. The deal we have a structure would free the hostages, halt the fighting, provide security to Israel, and allow us to significantly surge humanitarian assistance to the Palestinians who have suffered terribly in this war that Hamas started.

(END VIDEO CLIP)

LEE: And for President Biden, this deal has been so elusive, Wolf, for so long. And it has cost him so much, including politically. And, of course, we talk a lot about the many differences between President Biden and incoming President Donald Trump.

But on this front, the two men are very much in agreement. They would both very much like to see an end to this war. Before President Biden leaves office in exactly one week -- Wolf.

BLITZER: And he'll be delivering a major Oval Office farewell address this coming, what, Wednesday night. Is that right?

LEE: That's right. And this is going to be separate, of course, from the speech that was just focused on foreign policy that he gave today of basically a farewell address to the nation, where we, of course, expect him to touch on this and other issues. But basically say a final goodbye to the entire country, Wolf.

BLITZER: MJ Lee at the White House, thank you very much.

And to our viewers, thanks very much for watching. I'm Wolf Blitzer in THE SITUATION ROOM.

"ERIN BURNETT OUTFRONT" starts right now.