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New York Attorney General Letitia James Indicted After Trump Pressure Campaign; Israeli Military Says Ceasefire in Effect as Troops Pull Back in Gaza; Trump Heading to Walter Reed for Semiannual Physical; Trump Administration Sought to Block Muslim Groups from Receiving Security Funding. Aired 8-8:30a ET

Aired October 10, 2025 - 08:00   ET

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

[08:00:00]

DON SCOTT, (D) SPEAKER, VIRGINIA HOUSE OF DELEGATES: People are hurting. People are trying to figure out how they're going to put groceries on the table. And he comes in for a celebration and a photo op while people are struggling to get by.

And so, this won't be acceptable. And I think in the Commonwealth of Virginia, we're going to send a very, very, very strong message that will be heard not only around the nation, but around the world that we're going to, we want to move in a different direction.

SARA SIDNER, CNN ANCHOR: Now, Virginia does have a lot of people who work in the federal government, well, who are now dealing with not getting a paycheck. Virginia State House Speaker Don Scott, thank you so much for joining us.

A new hour of CNN NEWS CENTRAL starts right now.

JOHN BERMAN, CNN ANCHOR: Just a short time ago, the Israeli military announced the ceasefire is in effect in Gaza. Thousands of people on the move. We've got new information on if this deal is holding.

So, the big question this morning, who is next? And it's a real question. Federal charges filed against New York Attorney General Letitia James after President Trump leaned on the attorney general of the United States to take action.

And a quick thinking bus driver rescues a lost child in the middle of a busy street.

I'm John Berman with Sara Sidner and Kate Bolduan. This is CNN NEWS CENTRAL.

KATE BOLDUAN, CNN ANCHOR: This morning, another high profile prosecution from the Justice Department after President Trump's very public and high profile pressure campaign. Prosecutor handpicked by the president, announcing an indictment of New York Attorney General Letitia James just yesterday. The Justice Department is accusing James of two felony charges, bank fraud and making false statements to a financial institution. This is tied to a mortgage that she took out on a home in Norfolk, Virginia. This happened in 2020. They accused James of lying about it being a second home and in turn received a more favorable interest rate on her loan, allowing her to save nearly $19,000.

This, though, comes just weeks after former FBI Director James Comey was also indicted. The new U.S. attorney, Lindsey Halligan, is who presented both of these cases, which also comes just weeks after the president's social media post directing the attorney general of the United States to target his enemies, writing that they're all guilty as hell and also saying we can't delay any longer. It's killing our reputation and credibility.

That was just September 20th that he posted that. The Wall Street Journal is now reporting that post was actually meant to be a private message for Pam Bondi's eyes only.

Joining us now on the very latest is CNN's Kara Scannell. And what is not said as well is when it comes to Letitia James and President Trump, there's a lot of history.

KARA SCANNELL, CNN CORRESPONDENT: There is a lot of history and it's all adversarial. I mean, remember, Letitia James, as New York attorney general, brought that civil fraud lawsuit against Donald Trump. It went to trial.

He testified at trial. He exchanged barbs with her from the witness stand as she sat there in the galley. You know, they were going toe to toe on this.

And it's something that really cut to him because it was about his business. And he was found liable. He was fined essentially half a billion dollars.

That was thrown out by an appeals court. But the finding of fraud was upheld. And Trump has always pledged payback.

And that is what we see with these charges today. And it is what Letitia James responded to right after these charges came out. She posted a video. Here's more of what she said.

(BEGIN VIDEO CLIP)

LETITIA JAMES, NEW YORK ATTORNEY GENERAL: This is nothing more than a continuation of the president's desperate weaponization of our justice system. He is forcing federal law enforcement agencies to do his bidding, all because I did my job as a New York state attorney general. These charges are baseless.

And the president's own public statements make clear that his only goal is political retribution at any cost.

(END VIDEO CLIP)

SCANNELL: We reported a few weeks ago that the office that was investigating this under the U.S. attorney Erik Siebert was struggling to find that there was enough evidence to support a charge. He resigned under pressure. That is when Trump selected Lindsay Halligan to serve as the U.S. attorney. She presented this case to the grand jury yesterday and brought this indictment back of one count of bank fraud, one count of making false statements to a financial institution. These are serious charges. They carry a maximum of 30 years in prison if convicted.

I do anticipate her legal team is going to make a lot of challenges here. Her first appearance will be on October 24th in court.

BOLDUAN: This all seems to be moving so fast, like great -- like Siebert leaves, Halligan comes in. It feels like hours later an indictment comes down, a federal indictment on serious charges. And now we've got a first appearance coming up this month.

SCANNELL: Yes, I mean, that that is the speed at which so much of this is moving. And, you know, these are serious charges. What's interesting is this case has been assigned to a Biden appointed judge who's been on the bench since 2023.

[08:05:00]

He used to work in this very U.S. attorney's office in the financial fraud section.

BOLDUAN: Oh, really?

SCANNELL: He certainly knows this. And he knows a lot of the dynamics at play.

BOLDUAN: That is fascinating. It's great to see you, Kara. Thank you so much -- John.

BERMAN: All right, breaking this morning, new reaction from the White House after President Trump did not win the Nobel Peace Prize, despite some very public lobbying over his role in the Gaza cease fire. A White House official says in part, quote, "President Trump will continue to deals, ending wars and saving lives. The Nobel Committee proved they place politics over peace."

Israeli police confirmed the president is expected to visit Israel on Monday. The Israeli military says the U.S. brokered ceasefire in Gaza is now in effect. Thousands of displaced Palestinians are now making the trek north to Gaza City as the Israeli military pulls out from agreed upon areas. Israeli vehicles, military vehicles are on the move, apparently pulling back from some areas. This officially starts the 72 hour clock for Hamas to release the hostages.

Forty seven who were kidnapped in the October 7th, 2023, attacks are still in Gaza. At least 20 are still believed to be alive.

In an address to the nation today, to Israel today, the Prime Minister, Benjamin Netanyahu, implied for the first time that not all the remains of the deceased hostages will return.

Let's get right to CNN's Jeremy Diamond with the latest from Tel Aviv, where I know this nation, the entire nation watching all these events so closely, Jeremy.

JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT: Absolutely. And we are continuing to see people flock here to Hostage Square in order to, you know, celebrate this moment together of all of these hostages who will be now returning within the next 72 hours. And we know that that timeline has now started because Israeli -- the Israeli military confirmed at noon today that they had completed their withdrawal from parts of Gaza.

And once they completed that, that means that a ceasefire, according to them, is officially in effect. And also, that Hamas now has 72 hours to return the hostages, which could put the return of the hostages as late as, but perhaps sooner than, Monday at noon. And that also suggests that President Trump's visit on Monday will coincide quite shortly thereafter or right before the release of those hostages.

And perhaps we will see President Trump actually being able to greet some of those hostages. We know, of course, that here in Hostage Square yesterday, we saw a lot of American flags in the air, a lot of people thanking and crediting President Trump directly for his role in securing this agreement. That is not only going to secure the release of all of the hostages, but according to the president and the mediators, is also ending the war in Gaza once and for all.

We are already beginning to see in Gaza how people are reacting to this, not only the celebrations, but as you mentioned, the thousands of people who are beginning to move along Al Rashid Street, that coastal road in Gaza to head back to Gaza City.

Of course, before this agreement, we saw hundreds of thousands of people who were forced to be displaced from Gaza City as a result of that Israeli military offensive. And now many of them are starting to return home. But so many more pieces to the puzzle remain in the days ahead.

The prime minister today suggesting for the first time that some of the bodies of those deceased hostages may not be returned immediately alongside the 20 living hostages. The International Committee of the Red Cross have said that they will be assisting in helping to locate and ultimately recover the bodies of hostages that may be under the rubble in parts of the Gaza Strip.

And then, of course, there are the next steps to get beyond this first phase of this agreement and actually lead to the kind of final resolution to this two-year-long war in Gaza.

Intense negotiations still happening with Jared Kushner, President Trump's son-in-law, and Steve Witkoff, President Trump's special envoy, continuing to meet with the Israeli prime minister, with the Israeli government in order to cue up those next steps -- John.

BERMAN: Yes, every day almost a new milestone here. Jeremy Diamond for us in Tel Aviv this morning. Jeremy, thank you very much -- Sara.

SIDNER: All right ahead, happening today, the president heading to Walter Reed Medical Center for his physical, how he says he's feeling, ahead of this visit.

And a key economic report on consumer sentiment is set to be released this morning after nearing a record low last month.

Plus, a pair of house sitters arrested for stealing from a home they were supposed to be protecting. What police discovered when they arrested the suspects.

[08:10:00]

(COMMERCIAL BREAK)

SIDNER: This morning, President Trump heading to Walter Reed Medical Center for what he calls his semi-annual physical. Here is how he described the visit this week.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I'm also going to do a sort of semi-annual physical, which I do. And I think I'm in great shape, but I'll let you know. But no, I have no difficulty thus far.

Is there wood around here? No difficulty. Physically, I feel very good. Mentally, I feel very good.

You know, I did about six, seven months ago, I do physicals. I like to when I'm around, I like to check always early, always be early. It's a lesson for a lot of people.

(END VIDEO CLIP)

SIDNER: The visit comes just six months after his last reported exam in April. And it also follows a summer of questions about his health after images circulating showing swelling in his legs and bruising on his hands.

CNN chief medical correspondent, Dr. Sanjay Gupta, joining us now. Does this upcoming visit wave any red flags to you? It is just six months since his last. Most of us get annual physical checkups.

[08:15:00]

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Yes, good morning, Sara. Yes, look, it's somewhat surprising. I mean, as you point out, you know, typically you think of these as sort of annual physicals.

And another part of the backdrop of all this is that, you know, as president, he has access to the White House Medical Unit.

When I worked at the White House, I saw the unit. They can do a lot of testing there, what they can't do at the White House Medical Unit is do things like CT scans and MRI scans. Take a look here.

This is sort of the cadence of his physical exams during the first administration, January, and then a year later, you know, February of 2019. But then he did have that visit, you may remember, Sara, in November of 2019. So, you know, within that same year, that was an unannounced visit at that point to Walter Reed.

And we never really heard exactly what that visit was all about. But point being that it was more than one visit in a year in the past as well. So, somewhat surprising things at Walter Reed that can be done that you can't do at the White House.

My guess is that's some of what he's going to have done today.

SIDNER: You know, we talked about this before. We just remind us if there are any concerns about seeing his hands bruised and his swollen ankles.

GUPTA: Yes. I mean, I think the way that I think about this is that, yes, when you just look at this, there are concerns. And I think that's why the questions were asked.

And doctors have responded with, I think, pretty plausible explanations as to what's causing this. When you think about the ankles, first of all, you got blood flowing through the body. If the blood is not flowing well through the body, blood can start to build up.

Typically, it's going to be in the feet and ankles because you're on your feet or, you know, just gravity. If you develop something known as venous insufficiency, where the veins aren't sort of bringing the blood back as well, that can lead to swollen ankles. If your heart's not pumping as well, that can lead to swollen ankles.

What the White House has said is that it's this chronic venous insufficiency. About one in 20 people have it. As you get older, it becomes even more common.

And sort of the same type of explanation with regard to the hands. They say, look, he's on aspirin, which thins the blood. He shakes a lot of hands.

He's had a lifetime of sun damage probably to his hands as a golfer, for example, being outside a lot. So, all of that sort of tracks. So, yes, I think the way a lot of doctors have sort of thought about this is you pay attention to those red flags.

You investigate. The investigation has led to these responses, which seem reasonable.

SIDNER: Dr. Sanjay Gupta, it is always a pleasure to see you. We wish you were back here with us, but I know you have work to do in other realms. Really appreciate it.

All right -- John.

BERMAN: All right, new exclusive CNN reporting this morning, a possible government move to block millions of dollars in grants for Muslim organizations. But why?

And then this powerful nor'easter targets millions along the East Coast. Some huge possible rainfall numbers. [08:20:00]

(COMMERCIAL BREAK)

BERMAN: All right, new this morning, blocking millions of dollars in security grants to be awarded to Muslim organizations across the country. In a CNN exclusive, multiple sources say this was an actual idea floated by top officials at the Department of Homeland Security. Those sources say some FEMA officials were concerned about this idea.

CNN's Gabe Cohen broke this story. Gabe, what do you learn here?

GABE COHEN, CNN CORRESPONDENT: Yes. So, John, this all started back in the spring. Billions of dollars worth of FEMA grants were paused at the time, and there was this pressure on the administration to get those funds flowing again.

And that is when, according to my sources, DHS officials approached the leadership at FEMA and essentially asked if they could disqualify all Muslim groups from getting this specific nonprofit security grant funding that helps religious institutions protect against attacks. Not just Muslim groups, Jewish groups, churches, everyone. Now, those FEMA leaders were initially shocked by what they were hearing.

My sources are telling me they weren't really given a reason, but they pushed back and they told DHS, no, you really can't have a blanket ban. That would be improper and potentially illegal. And eventually that idea was dropped.

Now, DHS denies that ever happened. They told me in a statement, quote, DHS and FEMA do not make policy decisions on the basis of religion. Such claims are ludicrous and deeply unserious.

But, John, it wasn't over there. We know a few weeks later officials from DOGE, the Department of Government Efficiency, went back to FEMA staff and said they had identified more than 100 Muslim organizations that they said had ties to terrorism and should not be getting funding. According to sources I spoke with, DOGE said that they had information from someone outside of the agency. They did not specify who that was.

A FEMA official told me quote, "Everything about it seemed wrong. This felt like a manufactured narrative designed to justify excluding Muslim organizations from funding. What had always been an apolitical, risk-based grant process suddenly looked politicized in a way we had never seen before."

Now, last week DHS confirmed to me that they have stripped certain groups of funding that they say had ties to terrorist organizations. But they said that this was actually based on an extensive internal FEMA review that has been going on for months now.

But, John, I have talked to several sources who have really questioned what DHS is saying because of this really complicated and unusual way that this all played out and that eventually dozens of groups lost their funding over. BERMAN: Yes, some of this really does seem quite opaque. Good on you for digging here, Gabe. A lot more work to be done.

Thank you so much for sharing your reporting on all of this -- Kate.

BOLDUAN: New this morning, a brand new move in the legal battle to send the National Guard to Illinois. The Trump administration is now appealing a judge's ruling. We'll have the very latest on that.

And a giant gourd on the lam, guys. Officers struggling to capture an inflatable pumpkin that blew away from someone's yard.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Where did that come from?

UNIDENTIFIED MALE: Dude, I was kind of like following it and it kept blowing away. And when I went to grab it over here, it just took off. I don't know. That's pretty much a pursuit.

(END VIDEO CLIP)

[08:25:00]

(COMMERCIAL BREAK)

BOLDUAN: New this morning, an official with the Trump administration says the Bureau of Labor Statistics is calling back some staff to work to prepare for the closely watched Consumer Price Index report. This is despite the government shutdown. The report is expected to be released next week.

And today, economists will also get a read on how consumers are feeling about the economy right now when the University of Michigan's Consumer Sentiment Survey is released in just hours. Consumer sentiment fell back to -- fell back to near record lows last month as Americans grow more pessimistic about higher prices and a weakening job market. But even with all the gloomy feels, if you were to put it that way, one retailer is having a huge run this year.

Build-A-Bear Workshop, that family friendly store where you create a custom stuffed animal. Here's how The Washington Post put it last month. NVIDIA, Palantir, Microsoft, Oracle, despite being some of the most successful companies in the world, their five year stock trajectory is eclipsed by one unexpected plushy underdog. Build-A-Bear Workshop, the stock price for.