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Trump Administration Freezing $2.2 Billion in Funding for Harvard University; Hearing Today on Wrongly Deported Man as White House, El Salvador Defy Courts; Markets Rise After Trump Considers Exemptions on Car Tariffs. Aired 7-7:30a ET

Aired April 15, 2025 - 07:00   ET

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

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KATE BOLDUAN, CNN ANCHOR: Funds frozen. Harvard becomes really the first ivy to say no to the administration's demands, and the government quickly cuts off more than $2 billion. So, what now?

JOHN BERMAN, CNN ANCHOR: So, what is the line between facilitating and defying? The Supreme Court says the Trump administration should bring back a man they wrongly deported. The administration refuses to lift a finger. Today, the case goes before a federal judge.

Then number one, then number one on top of the basketball worldwide. It is so good to beat Paige Buecker's this morning.

Sara is out. I'm John Berman with Kate Bolduan. This is CNN News Central.

BOLDUAN: You can definitely call this one a swift response. It was just yesterday morning that Harvard told the Trump administration a blunt no, rejecting its list of demands. Hours later, the Trump administration cut the school off from $2.2 billion in federal funds. Harvard appears to be the first school to push back on the White House, which has threatened numerous colleges with funding cuts.

The administration was asking Harvard for a whole host of policy changes, ending DE and I programs, banning masks on campus at campus protests, giving full cooperation to immigration officials, similar to demands made to other universities, demands, which many of those universities, have agreed to.

Harvard's president writing in a statement this, in part, quote, no government, regardless of which party is in power, should dictate what private universities can teach, whom they can admit and hire, and which areas of study and inquiry they can pursue.

Well, officially, the Trump moves here are in the name of fighting anti-Semitism on college campuses after a series of high-profile incidents, Harvard's president calls them direct governmental regulation of higher ed.

CNN's Kara Scannell is following all of the twists and turns and there's likely to be more still. Where do things stand this morning, Kara?

KARA SCANNELL, CNN CORRESPONDENT: Well, as you said, the government moved pretty swiftly last night, freezing $2.2 billion in grants to Harvard and another $60 million in funding. You know, what happens next is really unclear, because, as you said, Harvard appears to be the first school to push back as part of this broader agenda by this federal task force.

And what the task force said in response to Harvard, kind of gives you a sense of their thinking. They said in part, Harvard's statement today reinforces the troubling entitlement mindset that is endemic in our nation's most prestigious universities and colleges. That federal investment does not come with the responsibility to uphold civil rights laws. The harassment of Jewish students is intolerable. It is time for elite universities to take the problem seriously and commit to meaningful change if they wish to continue receiving taxpayer support.

And Harvard's president had said, you know, they had taken a number of steps to address anti-Semitism on campus. They said they weren't getting credit for that in their negotiations or conversations with the government, but some of the other things that the government task force had asked them to do, Harvard's president said, was essentially a federal takeover of a private university.

And that included eliminating the DEI programs, having the government have some role in the hiring process, saying that there would be a federal audit of who they hired. And even of foreign students that were admitted, they wanted Harvard to see if anyone had what they called hostile views that were contrary to the U.S., and that would be a reason for them to be flagged to the federal government.

So, certainly, Harvard standing up here against this, but where it goes next is really unclear if there's going to be more money that's frozen or if they will engage in some negotiation.

BOLDUAN: And what this means for Harvard having if this $2.2-plus billion continues to be locked up. Let us see.

Thank you, Kara. I really appreciate it. John?

BERMAN: All right. This morning, the Trump administration versus the courts, and at the center of it, a Maryland man named Kilmar Abrego Garcia, who has become the face of the president's deport first, ask questions later immigration policy.

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Today, the Justice Department officials are due to face the federal judge who ordered the government to facilitate his return from El Salvador.

Abrego Garcia, a Salvadoran national, had entered the U.S. illegally, but has no criminal record and had a judge's order that he was supposed to protect him, that was supposed to protect him from deportation. But last month, he was picked up and flown to El Salvador where he has been held in a notorious mega prison ever since. The DOJ has claimed he is a member of the violent gang, MS-13, and labeled him a terrorist. But the federal judge in the case has said the administration has offered no evidence of that.

The Supreme Court, in a unanimous ruling last week, upheld the order to facilitate Abrego Garcia's return, but despite the DOJ admitting he was deported in error, the Trump administration has said there is nothing it can do to fix this. And just yesterday, El Salvador's president, who calls himself the world's coolest dictator, was sitting beside Trump in the Oval Office and claimed he did not have the power to do it either.

(BEGIN VIDEO CLIP)

NAYIB BUKELE, EL SALVADORAN PRESIDENT: How can I return him to the United States like I smuggled him into the United States, or whether I do it, of course, I'm not going to do it. It's like, I mean, the question is preposterous. How can I smuggle the terrorist to the United States? I don't have the power to return him to the United States.

(END VIDEO CLIP)

BERMAN: Attorney General Pam Bondi is trying to spin the court order f to facilitate the return as a win for the administration, and calls into question, what does facilitate really mean anyway.

(BEGIN VIDEO CLIP)

PAM BONDI, ATTORNEY GENERAL: It was a win. What the court also said was that these district judges do not have the right to interfere with the executive branch's ability to conduct foreign affairs.

What they also said is just facilitate, meaning if he wanted a plane flight, we could give him a plane flight. But we cannot effectuate it, meaning making it happen, which is what the district court had originally ruled.

(END VIDEO CLIP)

BERMAN: All right. Let's get to CNN's Alayna Treene at the White House.

Alayna, a lot going on here, but the bottom line is Abrego Garcia is not about to get back to the United States, and the administration doesn't seem to be about to lift a finger.

ALAYNA TREENE, CNN WHITE HOUSE REPORTER: Yes, they made that very much clear yesterday in that Oval Office meeting.

But, look, we had really seen, John, the Trump administration inching closer to this line of defense, to this argument, essentially, that they believe the judge in this case, overstepped. Her bounds and that no court, even the Supreme Court in this case, has the right to tell them that they must return this man to the United States or that they should be interfering in what they're arguing are foreign policy decisions set out by President Donald Trump.

Now, we really saw in that scene that played out yesterday the clearest sign yet that both the president and his advisers, because you saw there Attorney General Pam Bondi, we also heard from Stephen Miller, the deputy chief of staff for policy, but also from El Salvador's President Bukele that they have no intention of returning Abrego Garcia to the United States, again, despite that Supreme Court ruling, 9-0, that the United States and the Trump administration should facilitate his return.

But one thing, John, in all of this that I think is very striking that I don't think can be lost is what else the president said yesterday. Essentially, he said that he plans to ramp up the deportations, the number of deportations, to El Salvador, but not just for undocumented immigrants, people who are in this country illegally, and those who have committed alleged violent crimes, but also United States citizens. And the president referred to them as homegrown criminals. Listen.

(BEGIN VIDEO CLIP)

DONALD TRUMP, U.S. PRESIDENT: We always have to obey the laws, but we also have homegrown criminals that push people into subways that hit elderly ladies on the back of the head with a baseball bat when they're not looking that are absolute monsters. I'd like to include them in the group of people to get them out of the country.

(END VIDEO CLIP)

TREENE: I mean, just a really stunning statement there, John. And, look, I think the argument is kind of, if we can try and deport alleged gang members who are here illegally, undocumented migrants to El Salvador, why not do the same with the United States citizen? Remember, lost in all this as well is they're not having due process rights as they're being sent to El Salvador.

But what's very clear to me, I think the bottom line here is that this strategy we've seen the Trump administration use is only going to be something that they're going to dig into further. I spoke with Stephen Miller yesterday and I asked him, is there some sort of limit? How many people do you want El Salvador to take from the U.S.? He said, there is no upper limit. So, this is not the end of some of these arguments. I think we're going to see the court's face, and, of course, Justice Department attorneys will be in court again regarding this man in particular, Abrego Garcia, John?

BERMAN: Yes, and that'll be an interesting hearing today to see what language they use and what the judge asks specifically.

All right, Alayna Treene at the White House, great to see you. Thank you very much. Kate?

BOLDUAN: So, former President Biden is making his return to the national stage today, delivering his first major address since leaving office. Now, he's planning to take how he's planning to take on the Trump administration with these remarks on Social Security. [07:10:06]

And President Trump is considering another tariff exemption for automakers, what that could mean, how long it could last and the impact the idea may already even be having on markets.

And new video we have coming in showing the moment of 5.2 magnitude earthquake rattles Southern California.

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BERMAN: All right. New this morning, markets around the world higher this morning as President Trump says he's considering more tariff exemptions this time for automakers. The so-called tariff regime may be shifting in investors' eyes to an exemption regime.

U.S. futures right now are largely unchanged, basically flat. The Trump administration has launched, it says, an investigation into pharmaceutical and semiconductor imports, which sets the stage for possible tariffs on those products.

Let's get right to CNN's Paula Newton for the latest on what investors are seeing on this twist in the rollercoaster.

PAULA NEWTON, CNN CORRESPONDENT: Yes. I have to say, if we use that car analogy, John, right now, investors are saying, look, there might again be two hands on the wheel, at least when it comes to automakers. Donald Trump making it clear that he is looking at those exemptions and for very good reason. Right now, the industry stands really staggering losses and perhaps even job losses if they continue with these tariffs. I want you to look at the auto stocks themselves, John. You can see they have a little bit of an uptick there, and that is a bit of a relief rally as they wait to see what those exemptions look like.

John, look, there has been a steady stream of people in and out of the Oval Office and do all kinds of offices in Washington, D.C. from these automakers, and you even saw Gretchen Whitmer, right, the governor of Michigan in that Oval Office really pleading for some kind of relief from these auto tariffs.

And I want you to see the staggering cost for automakers who right now make their cars in the United States. So, think about this, John. This has to do with the supply chain and parts that may be coming from Canada, Mexico, or elsewhere. You see that the Center for Automotive Research is saying that in 2025 alone, we're already four months into this year, it would cost upwards of $108 billion.

And that is the reason in the Oval Office, we heard from Donald Trump saying this. Listen.

(BEGIN VIDEO CLIP)

TRUMP: I'm looking at something to help some of the car companies where they're switching to parts that were made in Canada, Mexico, and other places, and they need a little bit of time because they're going to make them here, but they need a little bit of time. So, I'm talking about things like that.

(END VIDEO CLIP)

NEWTON: So the question is, what is a little bit of time? You know, some U.S. automakers have already started to shift some of that production to the United States. That was in Canada, and Mexico, but that is also the supply issue has led to some layoffs in the United States as well. Keep an eye on consumers here though, John.

I think once the inventory is off the lots, prices could go up as much as four or $5,000 on a new car. And, yes, the price of used cars, there will be pressure on those as well. John?

BERMAN: Look, consumers are going to have to wait and see what happens. They're going to have to wait and see if the president changes his mind yet again.

Paula Newton, thank you so much for being with us.

This morning, a man has been arrested in connection to an arson attack at a Tesla dealership. Authorities now say they have evidence that he was planning even more attacks.

And fumble at the White House. J.D. Vance, that's not him, he has slippery fingers with a very important trophy. Watch this. Watch this. Oh. This morning, the vice president responds.

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BOLDUAN: She helped lead the UConn Huskies to victory at the NCAA Championship, and now Paige Bueckers is headed to the pros, the top pick in the WNBA draft going to Dallas to begin her professional career.

CNN's Coy Wire has much more on what was a big night for her and a big night for so many, Coy.

COY WIRE, CNN SPORTS ANCHOR: Yes, no doubt. Good to see you, Kate.

New hopes and dreams for these players, also for the fans in their new cities. Dallas got a straight up baller. Paige Bueckers flows like water says her UConn coach, Geno Auriemma. She was a national player of the year as a freshman, missed all of last season after tearing her ACL, but bounced back, finished her career as a national champ and check out the watch party back in Dallas.

This was the moment Bueckers was selected number one overall by the Wings.

(BEGIN VIDEO CLIP) PAIGE BUECKERS, WNBA NO. 1 OVERALL PICK: Obviously got a little bit emotional there just talking about my teammates and what they mean to me, but just so much gratitude, so much appreciation for the journey that it took to get here and the people that it took to get here. So just rewarding their hard work and all of my hard work, I guess. It's very gratifying.

(END VIDEO CLIP)

WIRE: Check out this tweet, Kate, from September of 2014, a local photo journalist in Minnesota where the then 11-year-old Bueckers is from, posting, remember the name Paige Buecker's, sixth grade, think Diana Taurasi, best sixth grade guard I've ever seen. Precious.

BOLDUAN: Oh my God.

WIRE: That is awesome.

All right, NBA news now, the Phoenix Sun's firing head coach Mike Budenholzer after just one year on the job, despite superstars Kevin Durant, Devin Booker and the largest payroll in league history. Phoenix finished just a 36-46 record, didn't make the playoffs or even the play in tournament.

Speaking of the play-in tournament, the league's post-season tips off tonight, eight teams, four series, two of those games on TNT tonight starting with the Magic versus Hawks at 7:30 Eastern and Warriors Grizzlies at 10:00.

Finally, the Ohio State football team honored at the White House by President Donald Trump on Monday for their national championship win in January. And vice president J.D. Vance, Ohio State of love, pumped to get his hand on the trophy, but he fumbles.

[07:25:01]

It's star Running Back TreVeyon Henderson there helping to prevent the turnover of the top of it. And here comes Coach Ryan Day. Now, he's trying to help, like making sure this trophy is not broken. That's one of those want to getaway moments, but special nonetheless and quite memorable, even if it's not for the reasons maybe entirely he was hoping for, Kate.

BOLDUAN: I mean, it's -- I feel so bad for the vice president there because, apparently, I did some research this morning, this trophy is designed to come apart into two places, even though he joked about it afterwards and said I didn't want anyone to have the trophy after Ohio State, so I decided to break it. I mean, I feel so bad for him.

I also think I said this on Five Things. As a Michigan fan, I think this is maybe the one time I should hold back on my commentary just once.

WIRE: Yes. A little bit of you is loving that. I'm sure.

BOLDUAN: I mean, it was hysterical. Okay, thanks, Coy. We were joking. It's like America's Funniest Home videos like White House version, it's so funny.

All right, coming up for us, a lot more news ahead, including Israel proposes a new ceasefire deal in Gaza, Hamas saying it is, quote, studying it.

And drug maker Pfizer now scrapping work on an obesity pill that they had hoped would compete with drugs like Ozempic and Wegovy.

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