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Jack Smith's Testimony to Lawmakers; Five Americans Detained in Venezuela; Mamdani Signs Housing Orders. Aired 6:30-7a ET

Aired January 02, 2026 - 06:30   ET

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

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[06:32:46]

(BEGIN VIDEO CLIP)

ZOHRAN MAMDANI, NEW YORK CITY MAYOR: On the first day of this new administration, on the day where so many rent payments are due, we will not wait to deliver action.

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BRIAN ABEL, CNN ANCHOR: Zohran Madani wasting no time. The new sworn in mayor of New York City campaigned on a promise to tackle the affordability crisis. And his first action was to sign a set of executive orders focused on housing.

Good morning, everyone. I'm Brian Abel, in for Audie Cornish. Thank you for joining me on CNN THIS MORNING.

It is 6:32 here on the East Coast. Here's what's happening right now.

The National Guard is withdrawing from Chicago, Los Angeles, and Portland. President Trump announced the move after the Supreme Court rejected his request to allow him to deploy the guard to Chicago to protect ICE agents. In a Truth Social post, he wrote that the Guard could be redeployed in a, quote, "much different and stronger form."

The Trump administration is freezing funding for childcare facilities in Minnesota and it's leaving low-income families stuck in the middle. The move comes after a YouTube video went viral accusing daycare centers of committing fraud.

(BEGIN VIDEO CLIP)

MARIA STEFFEL, EXECUTIVE DIRECTOR, NEIGHBORHOOD DEVELOPMENT ALLIANCE: You cannot blame an entire community or an entire group of service providers for a clip that is looking for fame.

UNIDENTIFIED FEMALE: I'm currently a medical student. I rely on childcare. I work. If I -- if childcare is cut, I'm unable to work or go to school.

(END VIDEO CLIP) ABEL: HHS said it will require proof that organizations are serving kids before releasing money. Providers have not received guidance on when or how the funding freeze

will take effect.

Hockey is heading south. Today the NHL Winter Classic will take place in sunny Miami. It's not the league's typical venue. The match between the Florida Panthers and New York Rangers will be played outside. And the field around the rink is going to have something for everyone. It's being divided by a beach and winter city theme. That should be fun.

All right, now to former special counsel Jack Smith and his decision to indict President Trump twice.

[06:35:02]

Smith's closed-door hearing with the House Judiciary Committee in December has now been released. And during eight hours of grueling testimony, he told lawmakers the president had no one to blame but himself for ten grand jury indictments in two different districts.

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JACK SMITH, FORMER SPECIAL COUNSEL: The evidence here made clear that President Trump was, by a large measure, the most culpable and most responsible person in this conspiracy. The -- these crimes were committed for his benefit. The attack that happened at the Capitol, as part of this case, does not happen without him.

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ABEL: Trump's allies have blasted Smith for allegedly weaponizing the Justice Department. They are particularly upset with him for his subpoena of phone records of lawmakers who spoke with Trump about the scheme to overturn the 2020 election.

Joining me now to discuss all of this, Alyse Adamson, former federal prosecutor and host of the "At-lyse You Heard it Here" podcast.

Alyse, thank you for being here.

First of all, given the political nature, how politically charged that moment was for him to come in and testify. How big of a risk was it for Jack Smith?

ALYSE ADAMSON, FORMER FEDERAL PROSECUTOR AND HOST, "AT-LYSE YOU HEARD IT HERE" PODCAST: Yes, look, Mike, there was two risks here. There's the PR risk and the potential legal risk. I say PR risk because of that political aspect you just mentioned.

We know that everything he says is going to be heavily scrutinized and criticized, all of his decision-making under a microscope. The legal risk really comes from the fact that he testified under oath. Meaning, if he said anything that was inaccurate or, you know, what they would call a lie, he could be potentially prosecuted. But the likelihood that Jack Smith went and lied to Congress is relatively low.

ABEL: OK. So, President Trump, he has, I guess, expressed desire, to say the least, to see Jack Smith and other perceived enemies prosecuted. I do want to play a clip of a take of Trump on him.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES (November 11, 2023): Deranged Jack Smith. Have you ever heard of him?

TRUMP (August 5, 2023): Deranged Jack Smith.

TRUMP (October 25, 2023): The deranged Jack Smith.

TRUMP (November 11, 2023): The deranged one I call him.

TRUMP (August 5, 2023): Doesn't he look deranged?

If you take a look at that face, you say that guy is a sick man. There's something wrong with him.

TRUMP (October 15, 2025): Jack Smith, in my opinion, is a criminal.

(END VIDEO CLIP)

ABEL: Yes, so there are some of those comments. There's only a few. But I do want to ask you, what's the damage from Trump's retribution campaign?

ADAMSON: OK. Well, it's very clear what President Trump thinks of Jack Smith. But to your point, I think, what are the collateral consequences of his ire, right? What we know is that a lot of prosecutors and other law enforcement individuals have been fired as a result of this investigation. I would say this damage, Mike, is potentially permanent. And here's why. A lot of the folks -- I can talk from the Department of Justice. I know some of the people that have lost their job as a result of this investigation. They had institutional knowledge. These are prosecutors that spent decades, decades following the rule of law and doing justice. They are now out of the department. That institutional knowledge, that brain drain is -- has impacted the department. And it's going to take a long time for new prosecutors to rise up in the ranks and to be able to fill that void.

And I think that that's what we forget when we talk about this political retribution in this narrative, that these are folks that keep American citizens safe and they were tossed out on the street and now they're in private practice making a lot of money doing well for themselves when they would have dedicated their life, continue to dedicate their life to public service.

ABEL: I do want to play another clip of basically Jack Smith kind of reiterating what you're saying about the public and the FBI agents and all of that. Let's take a listen.

(BEGIN VIDEO CLIP) JACK SMITH, FORMER SPECIAL COUNSEL: I am both saddened and angered that President Trump has sought revenge against career prosecutors, FBI agents, and support staff simply for doing their jobs and for having worked on those cases. These dedicated public servants are the best of us and they have been wrongly vilified and improperly dismissed from their jobs.

(END VIDEO CLIP)

ABEL: So, you heard him say there, like, improperly dismissed from the job. So, that is some of the damage.

I do also want you to listen to some of the remarks from a Republican congressman, Kevin Kiley, right after the Jack Smith hearing. Let's listen to that and then I'll get your response on the other side.

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REP. KEVIN KILEY, (R-CA): I think that what happened here bears scrutiny. But then, you know, after a while we're talking about events from years ago and you investigate the investigators and you investigate the people who investigated the investigators. You could just continue ad infinitum. And at some point, kind of, where does it end? Maybe we should move on as a county.

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ABEL: So, I guess, where does it end? Can the president move on?

ADAMSON: Yes, I think that is a very interesting question. Look, I agree with the sentiment there.

[06:40:01]

This is creating a potentially never-ending cycle. If Democrats regain control in 2028, they could potentially investigate what has happened with the Department of Justice now, and then it would just continue on and on and on. And that undermines the credibility of the department. That is why an independent Department of Justice is so important, so we don't have these questions.

Now, to your point, can the president move on? I think if we look in the historical record, the answer is probably no. He has felt aggrieved for many, many years and he has not signaled that he is likely to feel any better anytime soon despite, despite what we have seen with these charges against perceived political enemies.

The better question is, will DOJ be able to move on? From what I saw with this testimony, there is no basis to investigate Jack Smith or his team who were just doing an investigation which has a lot of historical precedent, special counsels coming in. But I think we're going to have to see because right now the direction of the Department of Justice itself is unprecedented.

ABEL: It is. And we still have a couple years left in this administration. ADAMSON: Three years.

ABEL: Three years. So, we will see if this retribution tour, at least perceived, comes down anytime soon.

Alyse Adamson, thank you. Really appreciate your time.

ADAMSON: Thanks so much for having me.

ABEL: A U.S. official tells CNN that at least five Americans have been detained by Venezuelan security forces in recent months. The official tells us the U.S. government is figuring out what those Americans were doing in Venezuela and that some could have been involved in drug smuggling.

Now it comes as the Trump administration continues its pressure on Venezuela, striking more suspected drug boats ahead of the new year, killing several people.

Joining me now to discuss, Venezuelan American journalist Mariana Atencio.

Mariana, thank you so much for being with us.

"The New York Times," who first reported this story, say that the United States government is considering classifying two of these Americans as wrongfully detained. Taking political prisoners is a tactic long used by Maduro. What are you hearing from inside the country about any Americans in custody?

MARIANA ATENCIO, VENEZUELAN AMERICAN JOURNALIST: So, this is what we know, Brian. We know that at least these five Americans, three of them are dual citizens, Venezuelan Americans, and two are American citizens with no known ties to Venezuela. But we don't really know much else. The Maduro regime has also not acknowledged that they, in fact, have captured these Americans.

But as you mentioned, this is part of the playbook, right? This is how Iran operates, Russia, the known allies of the regime. They are going to use these political prisoners as pawns, as bargaining chips in this revolving door, Brian, of innocent, wrongfully detained people that they can then assure will get them back on the negotiating table.

And if you look at what has happened in the past with detained Americans, back in July, Trump sent his special envoy, Richard Grenell, to Venezuela, to Caracas, to negotiate the release of ten detained Americans for those 250 Venezuelans that have been deported to Bukele's CECOT prison in El Salvador.

And I also want to underscore, which is really important as a Venezuelan. Not only these five detained Americans, but the at least 800 political prisoners that this regime is currently detaining and torturing, as you and I speak, Brian. So, this is how they operate and this underscores that we are not dealing with a democratic government, we are dealing with an autocracy. We are dealing with a dictatorship that profits off of money laundering and drug trafficking and that we didn't vote for these folks as Venezuelans. And every day Venezuelans down there tell me, including my family and friends, that we desperately want to go back to the fold of western democratic nations. And we feel that this pressure campaign from the Trump administration is the closest that we've been in two decades to doing that. And I firmly believe that it's in the best interest of the United States that we do.

ABEL: So, we also now know that a port in Venezuela was hit. What has been the reaction by Venezuelans to this escalation? Because it was supposed to be a covert operation before it was revealed by the president.

ATENCIO: Everyone down there knows that it was a CIA drone strike, Brian, that hit a port facility close to the border with Colombia. The problem is, is that nobody can freely talk about it because the Maduro regime has ramped up on citizens being detained over even texting or WhatsApp-ing about information like this. So, people are very quiet, but everyone knows it was, in fact, the first attack on land by the Trump administration.

Maduro himself, in a podcast interview yesterday, did not deny the attack. He said he was going to address it at a later time. So, that, for all of us, is, of course, confirmation that the attack did happen.

But if you look at the way that Maduro has been acting, Brian, he's been acting almost like unhinged.

[06:45:00]

It's embarrassing for us Venezuelans, the lack of seriousness with which he has addressed the southern Caribbean build up by the Trump administration. Now these five newly detained Americans. And it really showcases a leader who is being used as a puppet by all of the power brokers behind him who control the military, who control the money, who control the guns and the oil, and are, of course, heavily tied to the Cuban dictatorship that want to hold on to power no matter what.

ABEL: Mariana, let's talk about the opposition to Maduro, including Nobel Peace Prize winner Maria Machado. What would be her next steps, and would she be able to find new footing if this regime falls?

ATENCIO: She is the best hope that we have, Brian, to going back to democracy and freedom. Because when folks talk about, you know, is this regime change, this whole pressure campaign by the Trump administration, it's not really that. It's a democratic restoration. Venezuelans voted for her last July with her running mate, Edmundo Gonzalez Urrutia. They have the receipts to prove it. So, she, in fact, is a leader that has been in the country, heavily involved in politics, in counting votes, very much aligned with western values and democracy for the past two decades. She is the person that Venezuelans believe can really lead us back to a transition.

The fact that she has been able to safely leave Venezuela, under so many threats, and is now rallying for this cause internationally is our best hope yet. She has been recovering from a fracture due to this very intense physical, grueling escape to go to Oslo to receive her Nobel Peace Prize.

Her next move is likely to head to Washington to meet with President Trump. And there we would really, as Venezuelans, love to see the full support of the Trump administration behind this woman who again represents everything that western nations really want for Venezuela, for Latin America, and for our hemisphere.

ABEL: All right, Mariana Atencio, appreciate your reporting. Thank you so much.

ATENCIO: Thank you so much, Brian.

ABEL: Next on CNN THIS MORNING, a long-standing feud now heading to a new level between President Trump and George Clooney.

Plus.

(BEGIN VIDEO CLIP)

ZOHRAN MAMDANI (D), NEW YORK CITY MAYOR: For too long, bad landlords have been allowed to mistreat their tenants with impunity. That ends today.

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ABEL: He ran on affordability. How New York City's new mayor is making changes on day one.

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[06:52:05]

ABEL: On his first day on the job as New York mayor, Zohran Mamdani used his first official act to focus on a key campaign promise, affordable housing. During an event at a rent-stabilized building in Brooklyn, he signed a set of executive orders aimed at protecting renters' rights and boosting the construction of new housing.

(BEGIN VIDEO CLIP)

ZOHRAN MAMDANI (D), NEW YORK CITY MAYOR: We will stand up on behalf of the tenants of this city. Yes, we know we are fighting for a rent freeze, but that is not the extent of our efforts. We will also stand up for tenants, build new housing and get New Yorkers into housing faster.

These are sweeping measures, but it is just the beginning of a comprehensive effort to champion the cause of tenants too long ignored and homes too expensive.

(END VIDEO CLIP)

ABEL: And the group chat is back with us to talk about all of this.

Margaret, I'll begin with you.

Affordability a big buzz word for not only now the mayor's campaign, but nationally.

MARGARET TALEV, SENIOR CONTRIBUTOR, "AXIOS": Absolutely.

ABEL: And a big focus of yesterday during the inauguration, which had Bernie Sanders and Alexandria Ocasio-Cortez there as well.

I do want to listen to a quick soundbite from them.

(BEGIN VIDEO CLIP)

REP. ALEXANDRIA OCASIO-CORTEZ (D-NY): We support this mayor in making an affordable city a reality for all of us.

REP. BERNIE SANDERS (I-VT): The billionaire class in this city, and in this country, have got to understand that, in America, they cannot have it all. That America, our great country, must belong to all of us, not just a few.

(END VIDEO CLIP)

ABEL: Now, Mamdani has said that he will govern by emulating Senator Sanders there. Do you think that this approach to affordability is something that will be picked up nationally by Democrats?

TALEV: I do think you're right, that affordability is like the theme nationally, right? It helped sweep President Trump back into office a year ago. And it's now one of the biggest political challenges that Trump and the Republican Party face. Healthcare costs are about to surge for many Americans and, in the absence of a solution to the Affordable Care Act subsidy issue, that's going to explode even worse. And so, I do think affordability will definitely be a guiding theme for Democrats heading into the midterms.

What will happen in New York will certainly be closely watched in terms of, like, does Democratic socialism get a good name or a bad name? Is Mamdani going to be, you know, an upside or a downside for the Democratic Party. But I think, even if the messaging changes, that affordability issue is something that resonates, especially with younger Americans, especially with middle class Americans, and with many Republicans, maybe not the Democratic socialism part but the affordability message, many Republicans as well as Democrats.

[06:55:00]

ABEL: Many Republicans, Margaret, except for maybe the president of the United States. Here's what he has said about affordability.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES (December 2, 2025): The word affordability is a con job by the Democrats.

Affordability is a hoax that was started by Democrats.

The word affordability is a Democrat scam.

TRUMP (December 3, 2025)They use the word affordability. It's a Democrat hoax.

TRUMP (December 8, 2025): You can call it affordability or anything you want.

TRUMP (December 8, 2025): But Democrats love to say affordability.

(END VIDEO CLIP)

ABEL: So, you hear that word over and over again, affordability. Also a former mayor, Bill de Blasio, talking about Mamdani's approach. And I do want to play a quick sound bite of that and then we'll talk about all of this affordability and the approach afterwards.

(BEGIN VIDEO CLIP)

BILL DE BLASIO, FORMER NEW YORK CITY MAYOR: I thought he did an incredibly effective job of saying, I'm going to shoot for the stars here. I'm going to really try and make big changes. But he didn't say, look, we're going to succeed every time. He said the only way we're going to find out what's possible is to be audacious. And I respect that.

(END VIDEO CLIP)

ABEL: So, Meghan, how do you think that national Democrats, excluding AOC and Bernie Sanders, are viewing this experiment of Democratic socialism in one of the most expensive cities and the biggest cities in the world.

MEGHAN HAYS, FORMER BIDEN WHITE HOUSE DIRECTOR OF MESSAGE PLANNING: So, I think a couple things. One, he has not done anything yet. He's been the mayor for a day. And so, we're waiting to see what policy means (ph). To your earlier point, Albany will have a lot to say about this. Bill de Blasio was the mayor and he had one major initiative, which was pre-k for all, which was a massive, massive accomplishment, but it takes a lot. He had to go to Albany. He had to find funding. He knows how challenging it is to get a lot of these issues passed because there is a funding issue.

So, I don't think necessarily that the solutions are going to be taken into other places that are more moderate, but affordability is important. And the president is now not saying affordability, he's saying prices.

So -- and the American people also have said many times, nobody is listening to them. Nobody is doing anything and providing solutions. So, if Mamdani wants to provide some solutions and try to get things better for the city of New York, that is something that other people can look at. Maybe their solutions will be different, but bringing down the cost of anything will be welcome for the American people right now.

ABEL: And we're kind of already seeing Democrats kind of take the ball of this messaging of affordability, including in Michigan, Congresswoman Debbie Dingell. Let's play a quick sound bite of what she has to say. (BEGIN VIDEO CLIP)

REP. DEBBIE DINGELL (D-MI): I think affordability's becoming a buzz popular word. And I want to talk about the people I represent who come up to me in the grocery store on Sunday mornings and show me what -- how much something costs and how they can't afford it. And I think a lot of people are going to try to label the mayor and a lot with, you know, socialism, whatever. I'm going to remind you of something. These problems are not isolated to the city of New York.

(END VIDEO CLIP)

ABEL: And interestingly enough, Marjorie Taylor Greene is somewhat echoing what the congresswoman says there. She was talking in a recent "Politico" article. She predicted that this issue could be pivotal, saying, quote, "I don't see how we win the midterms on the course that we've been set on so far."

So, T.W., to you, you know, we're hearing that messaging. We do have some time from day one in office of Mamdani, until the midterm, to see how it plays out to that point. But how are Republicans seeing and viewing this? Is this warning being heard by the Republican Party?

T.W. ARRIGHI, FORMER SENIOR COMMUNICATIONS AIDE TO LINDSEY GRAHAM AND MIKE POMPEO: Yes. I talk to candidates all over the country every day in my job, and it's always the economy stupid. Always has been. Always will be to the end of time. If people are feeling like they are getting ahead, they're more happy, that the people in power tend to keep their jobs.

But I would say that there are really good signs of things to come. Many economic professionals have seen -- are projecting growth for 2026. You've seen inflation come down larger than expected. Stock market maintains high. GDP growth is strong. Now, next year, no tax on tip, no tax on overtime, no tax on Social Security. Those are real benefits. Yes, we have to fix health care. We've talked about this many times. It's happening.

But what I found so funny about Bill de Blasio right there saying, we won't know if it works until we try it. We have tried those things. Rent freezes are proven to be bad and lead to less new developments.

So, I think we are, in New York, heading down the wrong path. I think we'll see good things in the future. Republicans, this is always going to be a tough cycle, but I have some optimism.

ABEL: OK. The last thing I want to do is talk about our group chats and see what's going on there. Mine's been kind of the same thing all week, talking about "Stranger Things." I finally saw the -- finally saw the finale last night. So, there's been some conversation about that and the spoilers and spoiler or not.

How about you guys?

ARRIGHI: Well, we've been doing what's in and what's out for 2026. Some of the more controversial outs or espresso martinis. [07:00:00]

Didn't know that. Some of the most controversial ins are three milligram zins.

ABEL: OK.

ARRIGHI: I like (INAUDIBLE).

HAYS: My family's group chat has really been on college football. My brother went to the University of Oregon. Big game yesterday. So, I think we're all about college football right now, which we would get to continue to watch them play some more. So.

ABEL: Some big upsets.

Margaret.

TALEV: Winter Olympics one month away.

ABEL: Wow.

TALEV: And I think we're talking about sports and all this stuff because, God, do we have to talk about politics already.

HAYS: Right.

TALEV: So, we'll be talking about both. But something to look forward to.

ABEL: Anything else, right?

HAYS: Ice skating, skiing, whatever.

ABEL: Thank you, guys. Thank you so much.

And thank you all for waking up with us. I'm Brian Abel. The headlines are next.