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The Story Is with Elex Michaelson
U.S.-Iran Ceasefire Looks Shaky As Both Sides Trade Shots; "The Late Show With Stephen Colbert" To End Later This Month; Blake Lively And Justin Baldoni Settle Harassment Lawsuit; Interview with U.S. Housing and Urban Development Secretary Scott Turner; Seven Candidates Getting Ready for Next Showdown. Aired 1-2a ET
Aired May 05, 2026 - 01:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[01:00:00]
ELEX MICHAELSON, CNN ANCHOR: Before their highly anticipated trial was set to begin. In 2024, Lively accused Baldoni of sexual harassment, a hostile work environment and reputational retaliation following the release of their movie "It Ends With Us." Baldoni denied the allegations, filed a countersuit against Lively and her husband Ryan Reynolds, which was later dismissed. Last month, Lively's harassment claims were tossed from her case. Details of the settlement are not known, but in a joint statement said in part, quote, "It is our sincere hope that this brings closure and allows all involved to move forward constructively and in peace, including a respectful environment online." We'll talk more about that in our next hour with Brian Stelter as the next hour of The Story Is starts right now.
The Story Is tension in the Persian Gulf. Iran warns the U.S. of potential quagmire. Ben Radd here live with analysis.
The Story Is housing affordability. I sit down with President Trump Secretary of Housing and Urban Development Scott Turner at the Milken Global Conference.
And The Story Is Colbert countdown. Brian Stelter here live. How the late night host is planning to say goodbye.
UNIDENTIFIED MALE: Live from Los Angeles, The Story Is with Elex Michaelson.
MICHAELSON: We got a busy hour ahead. I'm Elex Michaelson. Thanks for watching The Story Is. The top story is the fragile ceasefire between the U.S. and Iran, which is being tested after both sides fired shots in the Strait of Hormuz. This comes after President Trump launched Project Freedom to guide commercial ships through the vital waterway.
President Trump posted on social media that the U.S. military shot down seven Iranian boats after Tehran targeted vessels trying to transit the strait. The president also warned Iranian forces would be, quote, blown off the face of the earth if they target U.S. ships.
Meanwhile, President Trump is denying that public support for the war with Iran is declining. He calls recent polls, quote, "totally fake." Former U.S. defense Secretary and CIA Director for Barack Obama Leon Panetta told CNN the U.S. may have reached the point of no return when it comes to the war.
(BEGIN VIDEO CLIP)
LEON PANETTA, FMR. U.S. DEFENSE SECRETARY: I think the reality is that we may have crossed a line here. We aren't involved in any more in a six to eight week war that was going to end in a few days. I think this is beginning to smell very much like a forever war.
You've seen Iran take additional actions with missiles and drones. You've seen the U.S. use our destroyers to try to go through the Straits of Hormuz. We've blown up what, six of the Iranian small boats.
You know, what you're left with is continuing to try to use military action in order to make the other side blink. And the reality is that right now neither side is blinking.
(END VIDEO CLIP)
MICHAELSON: Let's go to CNN's Kristie Lu Stout in Hong Kong.
Kristie, we see that the ceasefire is fraying after strikes on ships in a port in the UAE, what are we hearing this hour?
KRISTIE LU STOUT, CNN CORRESPONDENT: Elex, the ceasefire is near a breaking point. This after U.S. President Donald Trump launched Project Freedom in a bid to reopen the Strait of Hormuz for commercial shipping. But Iran is lashing out. A number of commercial vessels in the region have been hit, including a South Korean ship. And CNN has learned there were 24 crew members on board, all of them are reported to be safe.
On top of all this, the UAE is saying Iranian missiles and drones have targeted and hit an oil port. You're looking at video that's been circulating on social media of that strike and you could see the oil port ablaze. UAE has condemned this attack. The location is very significant. The port is in Fujairah, which lies just beyond the Strait of Hormuz.
It's one of the few export routes for Middle Eastern oil that does not need to pass through this critical waterway. Look, this is the biggest escalation since the ceasefire was announced four weeks ago. There was all out violence and meanwhile, there was no surge in commercial shipping. The United States has reported that two U.S. merchant ships managed to cross the Strait of Hormuz during this Project Freedom being underway. Iran disputes that.
The U.S. also says that it destroyed at least six small Iranian boats and Iran disputes that. But shipping executives and shipping insiders are all exercising extreme caution. I want to share with you what I heard from a top shipping CEO, Tim Huxley. He's based here in Hong Kong and he's the chairman of Mandarin Shipping.
And he says in regards to Project Freedom, the strait is still incredibly hazardous. I expect most ships will continue to avoid transit until both sides come up with something more concrete.
[01:05:08]
And within the last hour or so, I just heard from a shipmaster, a captain on a ship who is still stranded, stuck in the Gulf, one of 20,000 seafarers estimated to be still trapped in the Gulf because the Strait of Hormuz remains effectively closed. And this is what Captain ArunKumar Rajendran tells me. He says this, "Operating in prolonged uncertainty places a different kind of pressure on crews. While we remain focused, disciplined and committed to our routines, the waiting itself is demanding."
And as the shipping industry and as tens of thousands of seafarers wait and seek clarity, the price of gas continues to arise, affecting drivers all over the world, from Manila to the Big Apple to LA. Let's bring up what average gas prices look like at the pump in the U.S. according to AAA, they're now hitting about $4.46 a gallon. Elex, that is the highest level in nearly four years. Back to you.
MICHAELSON: Yes. So with all that being said, is the U.S. and Iran, are the leaders talking? Are there any peace talks going under -- going underway?
STOUT: This was the latest update that we have. On Sunday, we did hear from Iran. It said that it had received a U.S. response to its 14 point peace plan. Iran says in that peace plan there is no mention of its nuclear program. And we know that runs counter to what we've been hearing from U.S. President Donald Trump, who has repeatedly said any deal with Tehran must include agreement to curb its nuclear program.
So here we are, four weeks since the ceasefire, which was already fragile. Now, as we heard from Colonel Cedric Layton an hour ago, he was talking to you live, this ceasefire is, quote, tenuous at best. While we have this Project Freedom underway, which is mobilizing a number of U.S. military assets in the region while we have this U.S. naval blockade still in place, and while we have Iran lashing out, targeting and hitting a major oil port as well as commercial vessels in the region. Elex.
MICHAELSON: Kristie Lu Stout starting us off in Hong Kong, thank you so much.
We are joined live now by Benjamin Radd, senior fellow at the UCLA Burkle Center for International Relations, currently speak teaching at USC.
Great to have you here again. Cedric Layton, as she just mentioned an hour ago, told us it's tenuous at best. Do you even think it's that much?
BENJAMIN RADD, SENIOR FELLOW, UCLA BURKLE CENTER: I mean, these are two countries that are -- that are fighting. They're fighting -- they're launching rockets at each other. There's a blockade. These are acts of war. I don't see how you can call this a ceasefire at this point. So it's -- they are not in open warfare like they were five weeks ago. They are not in a diplomatic stalemate. This is a -- what I call a situationship, right? It's neither this nor that.
MICHAELSON: A situationship, which a lot of people think of when they talk about dating, but this is -- this is --
RADD: Right. They're not -- they're not together in agreement --
MICHAELSON: Right.
RADD: -- nor are they acting as estranged. You know, they're basically in it, but they're not really in it.
MICHAELSON: Yes.
RADD: Yes.
MICHAELSON: So this feels like some sort of weird reality show romance right now based off of what you're saying.
RADD: Not to diminish it, but yes.
MICHAELSON: And so you say that the U.S. holds the cards right now. President Trump often talks about who has the cards. You think U.S. has the cards?
RADD: It's -- in a matter of weeks, if the blockade continues and it continues to wear down the Iranian economy, shutting off its domestic production, its exports, its imports, the regime will be facing a two front war. Its domestic population can't continue living the way they've been living. The currency devaluing on a daily basis, their ability to basically live their lives diminishing on a daily basis. Meanwhile, the regime is trying to sort of fend that off and they're executing people who are -- who were caught using Starlink receivers, you know, to send a message basically to strike fear into the hearts of civilians. They can't -- this is not sustainable.
The U.S. is not facing that kind of pressure. Yes, there's electoral pressure, but it's not the same.
MICHAELSON: So -- then what about Iran, though? We see that they are putting out messages. They use the word quagmire, which seems to be a reference to Vietnam, right?
RADD: To Vietnam, to the Iraq war, the idea that the -- this president has committed the United States to a long term conflict of which the outcome is unclear. But whatever the outcome is, it'll be at a great cost to the United States in terms of lives and in terms of money and resources. And that's what they're trying to tap into, tap into the public sentiment that this is a bad decision that this president made.
MICHAELSON: Yet you still say U.S. has the cards. So if they have the cards, what's the next card that the U.S. plays?
RADD: So it's continuing to keep the blockade up. Iran will suffer under this blockade. Its domestic oil production will suffer. Its import and export markets will suffer, and yes, everyone else is going to suffer with it. The argument here is that Iran suffers disproportionately given how little resource and options it has to go beyond through the Strait of Hormuz.
And in this case, then the United States can sort of it's like a hunger strike. The U.S. has got larger reserves, larger fat reserves. It can actually sit this out for longer than Iran can before Iran starts facing domestic pressure. We haven't seen that yet.
[01:10:07]
MICHAELSON: So what's a deal that the U.S. could get behind with Iran?
RADD: A deal would be on at least two of the three points. The three points were and the nuclear program and the ballistic missile program and support for proxy groups. If the United States can reach a deal on two out of those three, it'll arguably be better than the Iran deal of 2015 that President Trump hated so much. And I think that's something that they can float to the Iranians say, look, will you meet us on these two issues? But that's unlikely because they're dug into their position as well.
For them, it's existential.
MICHAELSON: So then how do you get -- how do you get to some sort of conference (ph)? It seems like the nuclear thing would have to be -- I mean, that seems like that's where President Trump is going all in on that point, right?
RADD: That is the big one. But Iran has maintained they reserve the right to enrich uranium. At some point they're not going to give that up in perpetuity. They consider that to be a right of the country under, you know, the United Nations or the IAEA. They simply are not going to give that up without declaring loss, failure.
MICHAELSON: Yes. And so lastly, what's -- what happens next?
RADD: The blockade continues and we see if Iran will continue to fire on vessels, merchant vessels, on maybe US Naval vessels. Let's see if he escalates or they escalate to that level. That's what we'll be looking for. And then also the domestic situation, is there going to be a of lot unrest popping up more so.
MICHAELSON: Benjamin Radd, the best at explaining this situation. We always appreciate you coming to see us. Thank you so much.
RADD: Yes.
MICHAELSON: An investigation is now underway into a very close call near New York City. A United Airlines flight landing at Newark's International Airport clipped a truck and a streetlight during its descent. Everybody's safe, but hundreds of people could have easily been killed or injured. And the video was quite something. CNN's Pete Muntean explained what happened.
(BEGIN VIDEOTAPE)
PETE MUNTEAN, CNN CORRESPONDENT (voice-over): This new image shows what appears to be the moment a delivery truck of baked goods was delivered a blow by a Boeing 767. Truck driver Warren Bordley suffered cuts from broken glass and was able to pull over and dial 911, according to his boss. The dash cam video slowed down shows United Flight 169's wingtip and then its landing gear visible just outside the truck's window.
UNIDENTIFIED MALE: Runway 29, clear to land.
UNIDENTIFIED MALE: Clear to land, 29. United 169.
MUNTEAN (voice-over): Arriving from a nearly nine hour flight from Italy, the plane also hit a light pole before touching down on Newark's shortest Runway known as Runway 29. It is bordered on the east by I95, the New Jersey turnpike, where planes soar just above the highway.
STEVE KOHNENKAMP, WITNESS: It was a really scary thing.
MUNTEAN (voice-over): Steve Kohnenkamp watched the incident play out from his car.
KOHNENKAMP: As I'm getting closer to the plane, it's getting really low. I'm like, oh my God, is this going to land on the highway? It goes past me, I turn to my right, I smell burning rubber. I'm like in a turbulence of wind.
MUNTEAN (voice-over): But those inside the plane did not know what happened until after arriving at the gate and a crew was sent to inspect the Runway.
UNIDENTIFIED MALE: Did you get a report for what the issue was?
UNIDENTIFIED MALE: I got different conflictions on the turnpike.
UNIDENTIFIED MALE: Yes, they felt something over the threshold and there's a hole in the side of the airplane. So I'm going to get you on the Runway here in a moment.
MUNTEAN (voice-over): A National Transportation Safety Board investigation will determine exactly what went wrong. Investigators are planning to review the plane's voice and data recorders as well as interviewed the pilots.
PETER GOELZ. FORMER NTSB MANAGING DIRECTOR: On these events, the pilots memories, you know, they're important, but it's the data recorder and the voice recorder that tells the story. It was extraordinarily lucky that it didn't turn into a much greater disaster.
(END VIDEO CLIP)
MUNTEAN (on camera): There's also this new development from the National Transportation Safety Board. Late Monday, the NTSB reclassified this incident now calling it an accident, which denotes a higher level of severity. The NTSB says that's due in part to the amount of damage to the plane. That plane remains at Newark Liberty International Airport. By the way, published procedures for pilots for this Runway include a special note warning them not to be low on the approach.
Pete Muntean, CNN, Washington.
MICHAELSON: Can you imagine being that truck driver? Stay with us on The Story Is. Just ahead, after a decade on the air, Stephen Colbert's late night run is coming to a close this month. So how's he going to go out?
[01:14:45]
CNN's Brian Stelter is live with us here in LA for the first time to break it all down. Plus talk about his hit show on Apple T.V. Stay with us.
(COMMERCIAL BREAK)
MICHAELSON: We are nearing the end of an era. CBS has begun promotions for the last three weeks of "The Late show with Stephen Colbert." Back in July, the network said it would be ending the program due to financial reasons. Critics accused CBS of capitulating to the Trump administration since Colbert routinely skewered the president on his own show. The program will officially come to an end on May 21, capping Colbert's 10-year run on the Late Show. Join me now to talk about that and other stories in pop culture is CNN's chief media analyst Brian Stelter, live in Los Angeles on our set for the first time.
BRIAN STELTER, CNN CHIEF MEDIA ANALYST: It has a nice ring to it. I'll come out here more often.
MICHAELSON: Great. Great. Yes. Great to have you in Hollywood, baby.
STELTER: Thank you.
MICHAELSON: So let's talk about Stephen Colbert. What do we know about the last three weeks and how he's going to go out?
STELTER: So strange. First of all, he's had almost a year to prepare for this moment, you know?
MICHAELSON: Yes.
STELTER: And for the guest bookers and the producers and the hosts, every episode has been special. They've literally been counting down. But as you said, CBS now running promos for the end. We know that's only a couple of weeks away. Barack Obama on later this week in a special pre tape from his new library.
[01:20:15]
But no word yet on who the final guests will be. And he's probably right to keep it under lock and key for a little while longer.
MICHAELSON: It seems like, especially folks on the left, you can kind of get whoever he wants, right?
STELTER: I think that's absolutely right.
MICHAELSON: Yes.
STELTER: Yes, you know, he just gave an interview with the New York Times where reflecting on his tenure, talking about why there's been such a target on him, why he's been under such scrutiny. You know, he said authoritarians never want to see comedy, they never want to allow for it. He believes that that's reflective of the environment in the U.S. right now.
But of course, in some ways, these comedians, not just Colbert, but also Jimmy Kimmel, they are in some ways more relevant than ever right now. Which is, you know, what kind of makes it strange to see Colbert going off the air.
MICHAELSON: More relevant than ever?
STELTER: I think more relevant than ever --
MICHAELSON: But not anyone.
STELTER: But not measured by television ratings.
MICHAELSON: Yes. Yes.
STELTER: Not measured by television ratings. But Jimmy Kimmel's stature again in the last week as Trump's attacking him has really been elevated. You say they can book whoever they want. I think that's a reflection of that reality.
MICHAELSON: But then you also think about the way late night was during the era of Johnny Carson, when basically everybody was watching the same show. He launched so many careers. If you get pulled over to the desk --
STELTER: Right.
MICHAELSON: -- all of a sudden, it's a career changing moment.
STELTER: Yes.
MICHAELSON: We don't see that anymore.
STELTER: We don't see that anymore.
MICHAELSON: Anybody is fragmented into different space. And late night itself is really watched on YouTube, right?
STELTER: Yes.
MICHAELSON: And so the question is, did the economics of producing these very expensive shows with all these staff and all the union help and the band and the lighting and everything, does that make sense if you're creating a YouTube show?
STELTER: Well, CBS says the economics do not make sense in late night T.V, but they're going to try to find a new, cheaper way forward in the coming years. I do think we're going to see changes at NBC and ABC in the next few years for those exact reasons. You know, I were at the Milken conference here in LA earlier today, there's a great panel discussion about content distribution.
Content's not broken.
MICHAELSON: Yes.
STELTER: There's more better content than ever right now on every possible platform. The problem is distribution and specifically how to make money off these new distribution streams. And that's the YouTube.
MICHAELSON: It was interesting. I saw Conan O'Brien said, I knew that late night was basically almost over --
STELTER: Yes.
MICHAELSON: -- when he did "Hot Ones." And he recorded this show. And he --
STELTER: Right.
MICHAELSON: -- basically says, you're like at a table with one guy and a few cameras.
STELTER: Yes. Yes.
MICHAELSON: And it gets more viewers than a late night show. And he thought that economics just don't make sense anymore.
Speaking of expensive --
STELTER: Right.
MICHAELSON: -- this crazy fight between Justin Baldoni and Blake Lively, which became one of the biggest stories around the world --
STELTER: Yes.
MICHAELSON: -- seems to end kind of with a whimper.
STELTER: With a whimper, yes. Yes.
MICHAELSON: That they -- that they now have a settlement and their case is over. Did anybody win in all of this or did both of them lose?
STELTER: I would say no. I think you have the right takeaway. Nobody wins. There was a trial that was about two weeks away, but most of the claims in this case, in this really convoluted case and countercase had been thrown out a couple weeks ago. There were only a few claims left.
That's what was settled today. I thought the most interesting part of the joint statement was this reference to a respectful environment online because, you know, Lively had claimed that Baldoni his team -- his team weaponized a digital army, smearing her on the Internet. So partly this settlement is about having a peace deal and having all of that noise online go away. But that's what we see now in these lawsuits. They're happening in the real world, but the goal is to calm down the virtual world.
And that reference to a respectful environment online spoke volumes.
MICHAELSON: Because both of them, really have had online armies that have gone after the other. Especially Baldoni has a lot of support.
STELTER: Right.
MICHAELSON: And yes, I mean, it's interesting to see where both of them go from here.
STELTER: We said no one won. Probably the lawyers, right? They -- probably the lawyers.
MICHAELSON: Yes, a lot of money that they made.
STELTER: Right.
MICHAELSON: So, you do so many things for CNN, but one thing that a lot of people may not know about you is the morning show on Apple with Reese Witherspoon and Jennifer Aniston is based off of your book. And you are one of the producers on the morning show. If they win an Emmy, you win an Emmy, right?
STELTER: You're show -- yes. You're showing --
MICHAELSON: Yes.
STELTER: -- my old photos from behind the scenes in the production.
MICHAELSON: This is -- this is your -- on the production. You're coming out here, going to see them. They're working on season five. Talk about your role in this show.
STELTER: Yes, that's where I'll be tomorrow morning. I'm going to visit set, and it's such a blast for me to be able to visit the show and actually how one of these giant productions is made from the inside out. I wrote a book about morning T.V. a long time ago, it's every author --
MICHAELSON: "Top of the Morning," right?
STELTER: Yes, Top of the Morning.
MICHAELSON: It is great book.
STELTER: Thank you. It's every author's dream, but it never comes true to have those rights sold and then turn into a show. But in this case, right idea, right stars, right time, Apple got on board early. Now we're in the fifth season of production. It's really been a dream because now I get to see how the dramatic world is made.
Gives me a lot more appreciation for these giant productions in this streaming environment and how every single season, the writers, the producers, they try to create and enlarge the world. They have to keep making the world bigger and bigger, create more storylines.
MICHAELSON: Yes.
STELTER: And so my job is the best. Every week or so, I'll get an e- mail. They'll ask me a question about, hey, how would this actually go down at CBS or NBC or CNN? And we'll brainstorm how to bring that to life on the screen.
MICHAELSON: Wow. Well, it's a great show.
STELTER: Thank you.
MICHAELSON: Congratulations. And if you need a cameo for this season --
[01:25:08]
STELTER: You might be my next guest.
MICHAELSON: -- you know, I am out here all the time, so, yes. Congratulations, Brian. Good luck.
STELTER: Thanks. Good to see you.
MICHAELSON: We will be back. Including this backlash on -- oh, no, we're staying here. Backlash on Monday against billionaire Jeff Bezos and his wife, Lauren Sanchez Bezos. Protests messages like these lit up New York City as the couple took center stage at the Met Gala. Lauren Sanchez Bezos was one of the first to arrive at this year's event. Quite the outfit there.
The Amazon founder not only bankrolled the event, the couple are also honorary chairs, which sparked a social media firestorm. It comes as high profile Democrats, including New York Mayor Zohran Mamdani and Jack Schlossberg, opted to skip fashion's biggest night. Some of the most notable looks included Anna Wintour, former editor in chief of Vogue magazine, wearing a feathery custom Chanel ensemble. And Heidi Klum, taking this year's theme costume art very seriously. Brian was thinking about wearing this look tonight, but somehow did not.
STELTER: Next year.
MICHAELSON: Next year.
Tennis great, Venus Williams, wore a Swarovski gown inspired in part by her wins at Wimbledon. CNN's Jason Carroll, who is more into fashion than the two of us, has more on the controversy surrounding the event. (BEGIN VIDEOTAPE)
UNIDENTIFIED FEMALE: You look fabulous.
UNIDENTIFIED FEMALE: Thank you.
JASON CARROLL, CNN CORRESPONDENT (voice-over): It's one of the biggest nights in fashion, the Metropolitan Museum Arts Met Gala. Themes in the past have focused on religion or sleeping beauties. And while the official theme this year is costume art, some say it should be boycott.
UNIDENTIFIED FEMALE: No one for a second believes that the reason he's been made to chair the Met Gala is his fashion sense.
CARROLL (voice-over): Messages projected on New York's iconic Empire State Building and the Chrysler Building Sunday night, targeting Amazon billionaire Jeff Bezos and his wife, Lauren Sanchez Bezos, co- sponsors and honorary co-chairs of this year's gala.
CARROLL: Do you really hope to accomplish by doing what you do?
UNIDENTIFIED FEMALE: Well, like millions of people across the world, I used to enjoy the Met Gala. I used to enjoy the fashion and things like that. But like millions of people across the world, I'm also seeing how much prices are rising, how much wages are low.
CARROLL (voice-over): The co-founders of the underground group Everyone Hates Elon, referring to Elon Musk who do not want us to show their faces, say while Amazon workers fight for better pay and safer working conditions, the Bezos are trying to buy their way into culture.
UNIDENTIFIED MALE: Well, we've been meeting with Amazon workers this week. We met with a 72-year-old woman who was literally in tears as she told us about some of the conditions that she's facing.
CARROLL (voice-over): The anti-billionaire group has posted its messages across the city's subways and bus stops. The message may have already reached city hall. This year, the city's new mayor, Zohran Mamdani, who ran a campaign on affordability, has declined to attend. It should be noted Bezos and Sanchez actually made their debut at the gala back in 2024 without all the fallout.
But the couple's critics say that was before Bezos ruffled political circles on the left by cozying up to President Trump attending the inauguration, last week's state dinner, before Amazon paid $40 million for the rights to a film featuring the first lady. The Met's director telling CNN, this is not a show on Amazon. This is not a show on Lauren Sanchez's dresses. One needs to be really clear that what our donors are supporting is the program of the Met and support they have.
This year the Met says it has raised a record amount, more than $42 million, up from 31 million last year, thanks to efforts made by Anna Wintour, Vogue's former editor in chief and raising force behind the gala.
UNIDENTIFIED FEMALE: Anna, Anna, Anna.
CARROLL (voice-over): Despite Anna Wintour support, online chatter has swirled about celebrities bowing out this year and trouble selling tickets.
AMY ODELL, AUTHOR, "ANNA": That's something I'm very curious to see on Monday night is who goes and who poses with Lauren Sanchez and Jeff Bezos.
CARROLL (voice-over): Amy Odell is author of the New York Times bestselling book titled "Anna."
ODELL: What I'm hearing behind the scenes is that people are kind of surprised. I think there's some disgust. But then there's also a segment of the fashion industry that is completely fine with this. I think that Lauren Sanchez represents kind of the archetype of the luxury customer today who's not afraid to buy expensive stuff, to wear it and to flaunt it.
CARROLL (voice-over): Jason Carroll, CNN, New York.
(END VIDEOTAPE)
MICHAELSON: Ahead, affordable housing in focus. I sit down with HUD Secretary Scott Turner to find out what his department is doing to help tackle the issue. And he makes some news with us.
(COMMERCIAL BREAK)
[01:34:01]
ELEX MICHAELSON, CNN ANCHOR: Here in the U.S., affordable housing has become a growing challenge faced by many Americans as a lack of supply and higher interest rates only drive up the cost.
Today, I spoke with the U.S. Housing and Urban Development Secretary Scott Turner about those issues at an event here in Los Angeles, where he made an announcement on new deregulatory action aimed at easing red tape with developers of multifamily units. All this happened at the Milken Global Conference, where we spoke.
Take a look.
(BEGIN VIDEOTAPE)
SCOTT TURNER, U.S. HOUSING AND URBAN DEVELOPMENT SECRETARY: You know, the regulatory environment as it pertains to housing affordability has really been a big reason When you see the crippling of development and construction around our country.
And so we've been traveling around talking to localities about taking inventory of their regulatory environment. We've been doing the same at HUD.
[01:34:49]
TURNER: And today we're announcing, as it pertains to FHA mortgage insurance for multifamily building, that we're streamlining the environmental review requirements to make it easier for builders to build, and also to have a better utilization of these properties so that we can build more multifamily, affordable housing around our country.
And again, this goes with our entire process and efforts that we've had in bringing down the regulatory environment.
MICHAELSON: So what are some of those requirements that are no longer going to be in place?
TURNER: Well, if you look at it, we're just reviewing like the railroad vibration requirements, the pipelines, we're looking at fall hazards, things that are duplicative and burdensome, you know, to developers when they're developing multifamily properties.
And so to rescind these -- to review these requirements to make it easier for the builders to build, will bring the cost down, which again, will go to those that are renting multi-family homes.
Because as you know, Elex, we need multifamily affordable housing in our country. And the more we can ease the regulatory environment, the better it will be not only for the builders and developers, but for those that are renting these properties around the country.
MICHAELSON: So does that start immediately?
TURNER: Yes, yes, were announcing it today.
MICHAELSON: All right.
TURNER: And to talk to everyone about this, you know, we, I personally, the president, HUD, we've been very intentional about taking inventory of regulations from a HUD standpoint, from a federal standpoint.
And we can get into this in our conversation, but also encouraging others around the country, in particularly localities, to do the same, to ease this environment for builders.
MICHAELSON: Well, as you know, affordable housing is a huge issue around the country, especially here in California. What do you see as the biggest obstacle to building affordable housing?
TURNER: Well, you know, when you look at the supply, we need about 7 million units of housing in our country. Uh, that will be single family, multi-family, duplex manufactured housing, condos.
And when we came in to HUD, the first thing that we said to say, let's look at all the regulations that we have at HUD. And as I started traveling around the country, holding stakeholder convenings and meetings, I asked industry experts, builders, developers, you know, what is the biggest barrier to building affordable housing? And the top of the list, 100 percent is regulation.
And so we have to look, from a federal standpoint, we took down the affirmatively Furthering Fair Housing Rule, which became -- really made Washington a national zoning board, you know, and heavy- handedness from Washington does not help localities around the country build communities that they need.
Every community in our country has unique needs. Washington doesn't know Frisco, Texas, or Bethesda, Maryland, like those particular communities. And so we restored the flexibility and the ownership back to localities.
Affirmatively Furthering Fair Housing, that rule from the Biden-Obama era did not build one single family home. It just added more myriads of paperwork. And so we took this down.
And I've been asking localities around the country to do the same. You know, we all understand what the problem is, but are we willing to do something about it when we -- and that is taking down regulation.
MICHAELSON: And where do you think that that's working?
TURNER: Well, you know, I've traveled around the country and, you know, there are certain states that are ahead of the game that are doing better than other states. I've seen a great job being done in Florida, also in Texas and other states, you know, that are doing well.
And I'll have more answers because we're actually putting together a report of best practices from our travels and meetings around the country with localities that are doing a great job and some that, you know, are doing a good job, that they can do better.
And it does -- it varies from rural areas to urban areas to suburban areas, but there are some states that are doing better than others.
But there's my heart and my goal that across the country, that every state will do a great job in this regulatory environment.
MICHAELSON: What's it really like to sit at a Trump cabinet meeting?
TURNER: It's a lot of fun. I will tell you this, that when you sit down at the table, be ready because your name may not be on the call list, but he can call on you at any time and he's not afraid to call on you and to hear what you're doing at your agency.
But the beauty of it is, is that all of our cabinet meetings are on TV and they're open and they're transparent. And you can hear about what's going on at Commerce or HUD or Agriculture or Transportation or War or wherever it is, whatever the cabinet members lead.
And to me, the American people deserve to know what's going on with their president and vice president and the leaders of our cabinet.
But I will say they are, you know, they're fun. They're challenging. It makes you think and you always have to be prepared to give an answer because you never know when the president is going to call upon you.
[01:39:48]
TURNER: But when he does call upon you, he wants to sincerely know what's going on and support you in that effort.
MICHAELSON: Thank you very much --
TURNER: Thank you, sir.
MICHAELSON: -- Mr. Secretary. I appreciate the time. Thank you very much.
(END VIDEOTAPE)
MICHAELSON: The issue of affordable housing was also a key part of my interview with Jonathan Scott of "Property Brothers" fame, who was at the conference here in L.A. He gave me his take on what he thinks the biggest problem is.
I also sat down with Andrew Ross Sorkin and talked about his latest book, "1929: Inside the Greatest Crash in Wall Street History and How it Shattered a Nation".
Be sure to tune in to THE STORY IS later this week to catch both of those conversations.
And finally, while it is Cinco de Mayo in parts of the world right now, here on the West Coast, there's still just enough time to say this.
(BEGIN VIDEO CLIP)
HARRISON FORD, ACTOR: Hey, Luke. May the force be with you.
(END VIDEO CLIP)
MICHAELSON: Of course, it's May the 4th be with you, aka Star Wars Day. And for fans of the franchise, it also begins the countdown to the highly-anticipated cinematic release of the first "Star Wars" film in almost seven years. "Star Wars: the Mandalorian and Grogu" is set to hit theaters on May 22nd.
Thank you for watching THE STORY IS.
For our international viewers, "WORLDSPORT" is next. For our viewers in North America, Harry Enten joins me to break down the California governor's race ahead of tomorrow's debate.
Stay with us. You're watching THE STORY IS.
[01:41:20]
(COMMERCIAL BREAK)
MICHAELSON: We are less than 24 hours away from a high stakes California governor primary debate right here on CNN. I'll be moderating alongside Kaitlan Collins as seven candidates square off in a rare all party primary battle to replace the term-limited, Governor Gavin Newsom.
That right there is the list of candidates who have qualified. It will be one of their final opportunities for voters to hear from Democrats and Republicans fighting to lead the most populous state in the country.
CNN's chief data analyst, Harry Enten, joins me now to break this down. Harry, there's been a lot of polling, and all of it shows this race is the definition of too close to call, right?
HARRY ENTEN, CNN CHIEF DATA ANALYST: Absolutely. And I will also say I'm jealous that we're talking about California politics and not New York.
But either way, we're on your turf. So we're going to talk about California for a change.
MICHAELSON: Yes.
ENTEN: I guess we'll talk about the left coast.
MICHAELSON: Yes.
(CROSSTALKING)
MICHAELSON: I appreciate that you brought your New York accent to the California political conversation.
ENTEN: Well, I think there have been a few New Yorkers who might have moved out there, I will say.
MICHAELSON: Yes, yes. just a few.
ENTEN: Just a few.
But look at this. I mean, this is an absolute mess of what's going on. And this is just one poll. But you can see you got the seven candidates who are going to be debating on that stage on Tuesday night. And you can see that the lowest of them, Antonio Villaraigosa and Matt Mahan, right, 4 and 4 percent.
The top according to the CBS News poll, of course, is Steve Hilton the Republican at 16 percent -- they are all within 12 points of each other. I mean, you literally have four candidates who are between 10 and 16; five between 9 and 16.
You could have two Democrats advance. You could have two Republicans advance. You could have a Republican and a Democrat advance.
And I will also note that Xavier Becerra, who's right there at 13 percent, he has been rising in the polls. He might be a candidate that I might be very interested to see how he comes out on that debate stage tomorrow night, because it seems to me he has a little bit of momentum heading into Tuesday night's debate.
MICHAELSON: Well, and there was a new poll today put out by the California Democratic Party that showed that Xavier Becerra was number one, tied with Steve Hilton at 18 percent.
And that Tom Steyer has taken a step back, which is really interesting, Harry, when you consider how much money Tom Steyer has spent.
ENTEN: Oh, my goodness gracious. Every single time I look at this slide, I basically open my mouth and go, wow.
And also, man alive, I wish I had this much money to spend on politics because just take a look here.
Ad spending for the county -- I'm laughing because it's just so ridiculous. I mean, the top candidate spenders. Tom Steyer has already spent and I'm sure by the time that, you know, we get to tomorrow, it's even higher than he's already spent $145 million.
The next closest candidate spender Matt Mahan, who spent $6 million and a top outside group backing Mahan has spent $23 million. I mean, even if you add that up together, that doesn't even get you anywhere close.
I mean, what is this difference on the screen right here? Was it $139 million. I mean that's a big reason why Tom Steyer is so high in the polls so far.
But I guess were going to find out when the voters have their say whether or not you can actually spend your way to the top.
MICHAELSON: Well, the most ever spent by an individual was Meg Whitman, who spent almost the same amount as Tom Steyer for the entire year because she was in the general election. Tom Steyer hasn't even made it past the primary yet.
But an important thing to point out Meg Whitman did not win.
ENTEN: No she did not.
MICHAELSON: It will be interesting to see if Tom Steyer does.
But a big issue, not only across California but in rest of the country, is gas prices, but especially in California.
ENTEIN: Yes. I mean, maybe if he could have given the $145 million to some Californians, they could actually afford the gas out there because, I mean --
MICHAELSON: Right.
(CROSSTALKING)
ENTEN: -- I mean, it's just ridiculous. You know this, Elex, living out there and I was out there a few months ago. Unfortunately, we did not get to run into each other.
I mean, the gas prices in California are the highest in the nation, and they've only gotten more expensive. I mean, the price for a gallon of gas in California topping the United States $6.11. My goodness gracious.
I mean, nationwide, obviously, there's a lot of pain being felt, but the national average is $4.46. I mean, $6.11 is, you know, nearly $2 more that folks in California are spending on a gallon of gas.
It's no wonder my cousins out there have electric vehicles, because this is basically impossible to afford If you're an everyday person.
[01:49:44]
ENTEN: And when you look at this, my dear friend, Mr. Michaelson, look at this. I mean, hello, not much of a surprise. Gas price is difficult or financial hardship among California voters. Its 57 percent of all voters say that it is.
But then you get the rare trifecta -- Republicans, Democrats and Independents, the majority of all of them say that these gas prices are causing them difficulty or financial hardship, not much of a surprise.
So when you're moderating that debate tomorrow night, I'll be very interested to hear if this topic comes up the candidates answers. Because whoever answers the question the best, if there is a question on gas prices, may in fact be the candidate who advances or one of the two candidates who advances, of course, to that November general election.
MICHAELSON: Of course, we're not supposed to talk about the topics in advance, but hard to imagine I hear something about gas prices.
(CROSSTALKING)
ENTEN: I got it.
MICHAELSON: All right. Harry Enten, that's a special preview just for you, Harry.
(CROSSTALKING)
ENTEN: Thank you so much.
MICHAELSON: And I hope you'll watch tomorrow right. I mean --
ENTEN: And I'm watching tomorrow night. I'm doing the 8:00 p.m. hour here in the East, and I'm tuning in at 9:00 p.m. I mean, politics, it's why.
MICHAELSON: Yes. And of course, and of course on the West Coast, its airing from 6:00 p.m. to 8:00 p.m. --
ENTEN: Yes. MICHAELSON: -- Pacific time, 9 p.m. To 11:00 eastern, right here on CNN.
Harry, thank you so much. We hope everybody will tune in. Kaitlan Collins and I very excited to do that tomorrow.
We'll wrap things up on THE STORY IS for tonight right after this.
[01:51:08]
(COMMERCIAL BREAK)
MICHAELSON: Let's talk sports. The second round of the NBA playoffs is officially underway. In the Eastern Conference, the New York Knicks buried the Philadelphia 76ers to start their series. New York took a commanding 23-point lead by halftime. Didn't take their foot off the gas down the stretch, closing out the game 137 to 98.
Knicks are now the first team in NBA history to win three straight postseason games by at least 25 points.
And in the West, it was a shootout between the San Antonio Spurs and the Minnesota Timberwolves. Game one was deadlocked until Minnesota pulled ahead midway through the fourth quarter. The Spurs clawed their way back down just two points with 30 seconds left in the game, but San Antonio couldn't get their final three point shot to fall. The T- Wolves held on to win on the road 104 to 102.
Thanks for watching THE STORY IS. I'm Elex Michaelson.
I'll see you tomorrow for our California governor debate from 6:00 to 8:00 p.m. Pacific, 9:00 to 11:00 Eastern. And then we'll have postgame coverage. I'll be back here on THE STORY IS on Wednesday.
Thanks.
[01:56:29]
(COMMERCIAL BREAK)
