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The Situation Room

Now, Admin Makes Announcement on Trump Accounts for Kids; Trump Orders Blockade of Oil In and Out of Venezuela; Now, Former Special Counsel Jack Smith Testifies on Capitol Hill. Aired 10-10:30a ET

Aired December 17, 2025 - 10:00   ET

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

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WOLF BLITZER, CNN ANCHOR: Happening now, the case against Nick Reiner. He's expected in court this morning, charged with the first degree murder of his parents, Rob and Michele Reiner. New reporting from our team outside the court, what we're learning about the days before the killings, and the prominent defense attorney who's now been hired.

Welcome to our viewers here in the United States and around the world. I'm Wolf Blitzer. Pamela Brown is on assignment, and you're in The Situation Room.

And we begin with the breaking news, a very busy hour is about to unfold with three major stories. The White House is about to make an announcement on the so-called Trump Account program it says will give millions of American children a head start on savings, as much as $1,000 in free money.

Also this hour, U.S. senators are holding a closed briefing on the military's follow-up strike off the coast of Venezuela. It killed two survivors from a boat the White House says was smuggling drugs. The briefing comes as President Trump orders a total and complete blockade of sanctioned oil tankers coming into and out of Venezuela.

And right now, the former U.S. special counsel, Jack Smith, is about to testify about his prosecutions of Donald Trump. The president and his supporters have said Smith weaponized the U.S. Justice Department for a political hit job.

Let's begin with the administration's forthcoming announcement on what's called the Trump Accounts. CNN's Alayna Treene is over at the White House. CNN Business Senior writer Alison Morrow will break down what it could mean for a lot of American children as they become adults.

Alayna, let me go to you first. What's the latest?

ALAYNA TREENE, CNN WHITE HOUSE REPORTER: Yes. Look, we're expected to see, Wolf, the Trump administration officially launch this website for the Trump Accounts. We're expecting to hear from the treasury secretary Scott Bessent. We know that the White House press secretary, Karoline Leavitt, is expected to join them as well as the IRS chief and others.

And, look, this is obviously something that the Trump administration had been working toward for months now to try and put these together was one of the key provisions in the so-called big beautiful bill that Republicans passed over the summer, and the idea is essentially that the accounts would offer a taxed advantage savings and investment account for millions of children born in between 2026 and 2028 -- or, excuse me, 2025 and 2028, provide them with some $1,000 in seed money to try and get them started for a broader savings account down the line.

Now, this comes, this formal launch of the website, after we also saw the White House hold this big announcement earlier this month with Michael and Susan Dell. They offered to put billions of dollars toward these Trump's accounts to kind of expand the broader program beyond those who were named to be eligible in that Congressional funding bill I mentioned, the big, beautiful bill.

Now, one of the things I think that is key to all of this is the timing of this. This comes as we know that the president is expected to deliver and address to the nation tonight in the Oval Office. I'm told it's really going to be about laying out his accomplishments over the past year and kind of looking ahead to the New Year and some of the goals that they have.

Of course, one of the big ones is trying to own his handling of the economy. These accounts, the Trump Accounts, and this official launch of the website probably is going to be mentioned in that address tonight because they are really trying to focus on what they're doing for the economy at a time when many Americans are saying that they are growing more and more concerned about the state of the economy in America and the high cost of living. Wolf?

BLITZER: All right, stand by. I want to bring Allison into this analysis as well. Allison, the Trump administration is making big financial claims about how life-changing these so-called Trump accounts could be. Walk us through that.

ALLISON MORROW, CNN BUSINESS SENIOR WRITER: Sure, yes. I mean, financial planners will tell you anytime you get a chance to start saving for your child's future is a great time. So, if you're eligible for the a thousand dollars seed money, by all means, take it. But the Trump administration's claims that it will reach $300,000 by the time your child is 18 is based on some wildly optimistic projections on the S&P return and also parents and family's ability to max out that annual contribution, which tops out at $5,000.

If you max that out, and that's a tall order for a lot of families, then you could get to that $300,000 level. But also that assumes that the S&P 500, the, you know, broadest stock index that we have, is going to deliver 13 percent returns, which is much, much higher than the 20-year average is about 10 percent.

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So we can't have a recession, we can't have a financial crisis, you know, everything would have to go exactly right to get to that level.

BLITZER: All right, we'll see what happens. Allison Morrow and Alayna Treene, thank you to both of you.

Also happening now, President Trump is turning up the heat big time on Venezuela. He says he's ordered a, quote, total and complete blockade of oil tankers coming in and out of that country, and he suggested that the large buildup of U.S. Navy ships in the region will get even bigger.

CNN Senior National Security Reporter Zach Cohen is here with me in the situation room. Zach, what else is the president saying about this new pressure, very heightened pressure on Venezuela?

ZACHARY COHEN, CNN SENIOR NATIONAL SECURITY REPORTER: Yes. Wolf, this move is clearly the next phase of Donald Trump's pressure campaign on Venezuelan leader Nicolas Maduro. And it's an indication that of the suspicions that I think critics and people on Capitol Hill have had this entire time since this campaign in around Latin America started is that it's not just about countering the flow of drugs, but there's also an economic motive here.

Now, Trump, really, all we know about this supposed blockade is what Trump posted on Truth Social last night, ordering a complete and total blockade of sanctioned oil tankers going to and from Venezuela. As you mentioned, he did allude and point to the large buildup of U.S. military assets that have predominantly been in the region thus far to blow up alleged drug boats. As part of that military campaign that's already drawing scrutiny, I mean, questions about its legality.

This step will also raise similar questions as blockades are typically considered under international law to be an act of war. There's a DOJ memo from 1961 that says as much calling it a belligerent act and justified only if a state of war exists.

Now, of course, the U.S. is not currently at war with Venezuela and senators on Capitol Hill are getting a classified briefing from military officials today. This is sure to be a question that they will raise.

But, again, this is something that also relates to that Vanity Fair interview with White House Chie of Staff Susie Wiles that we learned that came out yesterday where she made very clear that the intent behind this military campaign is not just to stop the flow of drugs, but also to out Nicolas Madora.

BLITZER: Yes, lots going on in the Venezuela front.

Zach Cohen, thank you very, very much.

And still ahead, behind closed doors, the former U.S. special counsel, Jack Smith, is answering questions up on Capitol Hill. We have details about his Trump investigations that he may or may not be willing to reveal.

Plus, expanding search, the hunt for the Brown University shooter is now in its fifth day. Investigators hope new images will finally lead them to the suspect.

Stay with us, lots going on. You're in The Situation Room.

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BLITZER: Happening now behind closed doors up on Capitol Hill, the House Judiciary Committee is questioning the former special counsel, Jack Smith, about his prosecutions of Donald Trump. Sources tell CNN Smith plans to testify about Trump's alleged mishandling of classified documents and his role in trying to overturn the 2020 presidential election results.

He just entered the hearing room but did not answer reporter's questions as he is walking through the hall and getting into that room.

There's a lot to break down. We have CNN Senior Reporter Annie Grayer up on Capitol Hill and CNN Senior Legal Analyst and former Federal Prosecutor Elie Honig joining us. Elie's also the author of the very important book, When You Come at the King, Inside Department of Justice's Pursuit of the President, from Nixon to Trump. There you see the cover.

Annie, first of all, to you, what can we expect from this deposition from Jack Smith that's about to go forward?

ANNIE GRAYER, CNN SENIOR REPORTER: Well Wolf, we are expecting this deposition to go for hours where Smith is going to be questioned behind closed doors by both Republicans and Democrats. And Smith has been a top target for House Judiciary Chair Jim Jordan, who has viewed Smith's -- both of Smith's criminal investigations as political persecutions of President Donald Trump and Republicans have argued that Smith has tried to weaponize the federal government against Trump and conservatives.

But Smith has stood by his two criminal cases and the charges that he brought, both in the alleged mishandling of classified documents and in Trump's alleged efforts to help overturn the 2020 presidential election against former President Joe Biden.

Now, while Smith did not answer any questions, he wanted to testify publicly before this whole deposition got figured out, but Jim Jordan wanted this to be behind closed doors. Even though Smith did not answer my questions going into that room, take a listen to what his attorney had to say before this deposition got started.

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LANNY BREUER, ATTORNEY FOR JACK SMITH: In today, testifying before this committee, Jack is showing tremendous courage in light of the remarkable and unprecedented retribution campaign against him by this administration and this White House.

Let's be clear, Jack Smith, a career prosecutor, conducted this investigation based on the facts and based on the law, and nothing more.

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GRAYER: Now, there are going to be a lot of contentions discussed in the room behind me, including Smith's decision to subpoena phone records from at least nine Republican members of Congress.

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Republicans are furious by the decision, but Smith, we're told, is going to explain how those subpoenas were handled and how the contents of those phone calls were not included. So, a lot unpack in this deposition happening behind me.

BLITZER: All right, stand by. I want to bring Elie into this analysis. What types of questions, Elie, do you think Jack Smith is likely to face?

ELIE HONIG, CNN SENIOR LEGAL ANALYST: Very different questions depending on who's asking them, Wolf. I think Democrats are going to essentially invite Jack Smith to make his case against Donald Trump, to explain why, in Jack Smith's view, the evidence showed that Donald Trump was guilty, again, in Jack Smith's view, of both causing January 6th and of possessing classified documents at Mar-a-Lago.

I think Republicans are going to take a very different tack. They're going to argue that Jack Smith was politically motivated, that his investigation was overreaching and inappropriate, and that he was motivated by a desire to harm Donald Trump before the 2024 election.

So, I think it's going to be very much in the eye of the beholder here today. I think we're going to have a bit of a Rorschach test.

BLITZER: Elie, let me follow up. Republicans, as you know, they focused on Smith examining the phone records of at least some lawmakers. How serious of a concern potentially is that?

HONIG: Well, it's really important to understand what this is and is not. I think Jack Smith is going to point out this was not a wiretap, as some have claimed. He was not listening in on phone calls. He did not get any of the content of the phone calls. What he did was serve a subpoena on a phone company that gave him essentially a record of what phone number called what phone number on what day and for how long.

Now, Republicans have a problem with this, as do some Democrats, by the way. Some Democrats in Congress have voiced concerns because the records that he subpoenaed were those of nine different Republican members of Congress. It was only for a few days before and after January 6th. But I think the accusations against Jack Smith are that this shows that his investigation was far-reaching and was politically motivated.

And I think the key question is going to be, can Jack Smith articulate a genuine, legitimate investigative basis for doing that, or was he just on a fishing expedition? BLITZER: And let me just follow up on that point. Does Jack Smith, Elie, have to answer every question that's asked? Can he refuse to answer some and will doing so hurt or help him?

HONIG: So, Jack Smith absolutely can and does have the right to invoke the Fifth Amendment. In fact, two of Jack Smith's senior deputies, senior prosecutors on Jack Smith's team came into this same committee, and both of them took the fifth over 70 times each.

Now, taking the Fifth does not mean a person has committed a crime. It means that person is concerned that their testimony might be used against them. But, look, it certainly looks bad, it gives a negative impression. Republican members of this committee have made much of the fact that Jack Smith's deputies have taken the Fifth. I doubt Jack Smith will do that today. It's certainly his right to take the Fifth. But if he does, watch for Republican members of that committee to say that he's trying to hide something and to essentially use it against him, not in the legal sense, but in the political sense.

BLITZER: Interesting. All right, Elie Honig and Annie Grayer, to both of you, thank you very, very much.

Coming up, what Rob Reiner said about his son Nick's struggles with addiction just months before the Hollywood director and his wife were killed in their home.

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BLITZER: All right. There's more breaking news we're following now. At least four Republicans have joined in with the Democratic effort to force a vote on extending those soon-to-expire enhanced Obamacare subsidies.

Let's go live to CNN's Chief Congressional Correspondent Manu Raju, who's up on Capitol Hill. This is a big rebuke of the House speaker, Mike Johnson. What else can you tell us?

MANU RAJU, CNN ANCHOR AND CHIEF CONGRESSIONAL CORRESPONDENT: Yes, a major rebuke. Remember, this typically does not succeed in the House of Representatives to force a vote on an issue in which the leadership opposes, but this has happened time and time again to Speaker Mike Johnson, even though he is adamantly opposed to extending those expiring subsidies under the Affordable Care Act, something he says that simply should not happen because his concerns with the current legislation, he's moving forward on a narrow healthcare package later today that does not extend those subsidies.

But just moments ago, four Republicans in the House of Representatives signed on to a Democratic effort to force a bill to extend those subsidies for three years. Those four Republicans are from swing districts. Three of them are from Pennsylvania, Congressman Brian Fitzpatrick, a swing district Republican, one of just three Republicans who sit in districts that Kamala Harris won in 2024, also Mike Lawler of New York, another one of those Republicans in a swing district, and two other Pennsylvania Republicans, Rob Bresnahan and Ryan Mackenzie, making it official that there are 218 votes on this signature, which -- in this petition, which means that this bill will come to the floor probably in January, which will still be after those subsidies expire. It would still have to pass the United States Senate.

But also there's very significant rebuke of the speaker of the House. I caught up with some of those members who are very frustrated at the opposition of the leader -- of the speaker, including Congressman Mike Lawler, who may didn't mince words about the speaker's handling of this issue.

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REPORTER: Where does that leave you?

REP. MIKE LAWLER (R-NY): I am pissed for the American people. This is absolute bullshit. And it's absurd that we are in a body with 435 members. Everybody has a responsibility to serve their district, to serve their constituents.

RAJU: How do you say though to the speaker who's not going to give you a vote on this ACA extension?

REP. KEVIN KILEY (R-CA): That's a failure of leadership. I mean, we have, you know, members on both sides who believe this is an urgent issue, and it is for all of our members in terms of what their constituents are going to have to deal with from the start of the New Year. So, what's wrong with having a vote?

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RAJU: And that last comment came from Congressman Kevin Kiley, who also represents a swing district in California. He has not yet signed on to the effort to force a vote, but you can expect him and others to likely vote yes when this measure comes to the floor in mid-January, meaning they could pass by more than a majority. We'll see how comfortable a majority it passes in the United States House.

But, ultimately, Wolf, the question will be what the Senate will decide to do. This will pass the House probably in January and then in the United States Senate, where they've already voted, Republicans have already voted to block the Democratic effort to extend those subsidies for three years. Will it pressure any Republicans to change ranks?

There are ongoing bipartisan negotiations to try to deal with this issue in the United States Senate, but no doubt about it, a sign of the growing angst and pressure from the rank and file, particularly swing district members, at this key moment for the speaker ahead of the midterms next year.

BLITZER: All right. Manu Raju up on Capitol Hill, thank you very much for that update.

Also now a warning for the White House and Republicans from Congresswoman Marjorie Taylor Greene. Listen.

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REP. MARJORIE TAYLOR GREENE (R-GA): I think the dam is breaking.

That is a sign where you're seeing Republicans. They're entering the campaign phase for 2026, which is a large signal that lame duck season has begun.

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BLITZER: I'll ask her GOP colleague, Congressman Mike McCaul, if cracks of the party could spell trouble in 2026.

Stay with us. You're in The Situation Room.

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