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Breaking News

Senator Gramm May Announce His Retirement

Aired September 04, 2001 - 09:30   ET

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

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LEON HARRIS, CNN ANCHOR: We've got some breaking news coming out of Washington.

Let's check in now with our Jonathan Karl who's getting some word on possible changes to come in the Senate. John, what's up?

JONATHAN KARL, CNN CORRESPONDENT: Well, that's right, Leon. CNN's political unit has learned that Senator Phil Gramm is going to announce, or is expected to announce, that he is not going to run for reelection. His term is up next year, so he'd be up for reelection next fall.

CNN's political unit has learned that Gramm has told associates that his intention is to announce that he will not run again. Phil Gramm's office tells CNN only that he is holding a press conference at 2:30 to talk about -- quote -- "his political future."

Gramm is a former Democrat, he's been one of the more color Republicans up here on Capitol Hill for a long time. He was, until the Republican lost control of the Senate, the chairman of the Banking Committee. A long-time advocate of tax cuts, and a major force within the Republican party, especially on fiscal policy. So, this will be an eagerly-awaited announcement.

We had heard previously that Gramm had been talking about, had been approached about the possibility of becoming president Texas A&M University. We don't know if this announcement has anything to do with that, or if indeed he will get that offer, or would accept it if he would.

We also know that Gramm, over the last week or so, has been meeting with political supporters down in Texas, long-time donors and supporters who have supported him through his long political career, talking about his plans. We know that at least one of those includes somebody who is on the board of regents of Texas A&M University. By the way, Phil Gramm's wife is also on that board of regents.

But again, the news we have here coming in through CNN's political unit is that Senator Phil Gramm at 2:30 will hold a press conference, and he is expected to announce will is not going to run for reelection. Leon.

HARRIS: John, this has got to be something of big surprise. I'm wondering what you're hearing from the Republican leadership there. Because, I've got to think that they've got to be taken aback by this, after just now seeing or hearing the word from Jesse Helms about his not running again. We know that Senator Gramm has been quite the partisan there.

That's a big loss for them, is it not?

KARL: In one sense, it clearly is. Actually, Senator Graham did an interview with CNN, we did it -- if you remember -- on the subway, the day the Congress left for their August recess. I asked him if he was planning on retiring, because there had been talk that he may not run again. At that point he said that it was his intention to run again. Obviously something has happened to changed his mind.

The reason why the political loss is somewhat mitigated is he is, of course, from Texas, which is a solidly Republican state. The Republicans believe they do have a long list of potentially strong candidates, including Congressman Henry Bonilla, a favorite of many. Republicans here in Washington would like to see him run for the Senate.

So, it's not as devastating a loss as it would be if this were a senator coming from a swing state, a state that was more solidly Democratic. But, clearly a surprise, and many people will be shocked. A lot of Republicans up here are going to miss Phil Gramm.

HARRIS: All right, good deal. John Karl, breaking the news for this morning. We appreciate that.

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