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The Source with Kaitlan Collins

CNN Projects Paxton Will Defeat Sen. Cornyn In TX Runoff; Paxton Says Victory Against Cornyn Sends "Texas-Sized Message"; Mamdani Announces Plan For More Affordable Housing In NYC. Aired 9-10p ET

Aired May 26, 2026 - 21:00   ET

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


[21:00:00]

VAN JONES, FORMER OBAMA ADMINISTRATION OFFICIAL: And I'm not quite sure the policies are working out too well for him either. It just seems -- looks like this situation in Iran is not going very well. I just I -- I am looking forward to spending a lot more time in Texas, and you guys spending a lot of money down there because you can keep waving off Talarico, but he's coming for you, buddy.

BRAD TODD, CO-FOUNDER, ONMESSAGE INC.: There's way too much money going to be spent there for sure.

ANDERSON COOPER, CNN HOST, ANDERSON COOPER 360: Well thanks everybody.

TODD: That's the consequence.

COOPER: Our coverage continues. "THE SOURCE WITH KAITLAN COLLINS" starts now. I'll see you tomorrow.

KAITLAN COLLINS, CNN CHIEF WHITE HOUSE CORRESPONDENT, CNN HOST, THE SOURCE WITH KAITLAN COLLINS: And good evening. I'm Kaitlan Collins. And this is CNN's special coverage of perhaps the biggest primary election of the entire year.

As we come on the air tonight, the final polls have just closed in the State of Texas, and we have a major projection.

CNN can now project that the Texas Attorney General, Ken Paxton, will defeat the incumbent Republican Senator John Cornyn. It's a huge win for President Trump, who upended this race in recent days, by endorsing Paxton, and declaring that Cornyn who has served in the Senate for 24 years was not loyal enough to him.

This outcome has major implications for this November, with Democrats sensing an opportunity to win this seat against Paxton, who has been plagued by scandal during his political career.

Now, Republicans have been deeply worried that they'll have to dump tens of millions of dollars into ruby-red Texas to keep this seat in Republican hands, something that is an almost unthinkable scenario just a few weeks ago.

And with this major projection, I want to get straight to CNN's Anchor and Chief National Correspondent, John King, who is at the Magic Wall.

And John, as we've been watching the numbers come in tonight. I mean, so far this has been shaping up to be an incredibly big win for Ken Paxton.

JOHN KING, CNN ANCHOR & CHIEF NATIONAL CORRESPONDENT: A blowout win, a blowout win, especially when you consider that John Cornyn is a 24- year veteran Republican incumbent senator. And once, Kaitlan, I'm old enough to remember when he was a young rising star in Texas Republican politics, now he has been beaten.

CNN is now projecting this race by the Attorney General, the MAGA favorite, and the Donald Trump-endorsed, and that's the big difference in this race here. I'll show you a little bit what I mean by that.

But Paxton at 63 percent if you round up, Cornyn at 38 percent if you round up, with just about half of the vote in. And you just look at this map, Kaitlan, the deeper red, the darker red, that's Paxton red. Look how many few spots: One, two, three, four, five, six. There are 254 counties in the State of Texas. Some are still gray, meaning we have no votes. But out of 254, of those where we have votes, only six is John Cornyn leading. That's all you need to know. You just watch what's happening.

Here in Houston, an urban county, big suburbs, Harris County is Houston, and the suburbs around it, by far the most populous county, Ken Paxton is winning with 65 percent of the vote. If Cornyn were going to have any chance, it was going to be here, a city, the suburbs around it, where you have more moderate, more establishment Republicans. Forget about it. 65 to 35 in Harris County.

Then you come up here, Dallas County, the number two county in the state in terms of population. Yes, Cornyn is leading, Kaitlan, but look, just not enough. He needs blowouts in these places to have had any prayer to do it.

And then right next door in Tarrant County, which is Fort Worth, the third largest county by population in the state, and Paxton winning quite comfortably there.

So Paxton winning, or in the case of Dallas, holding his own in an urban and suburban area. And then just come out here into rural Texas counties. 72 percent. 71 percent. 64 percent. 55 percent, a little bit closer there.

But what's interesting about this, Kaitlan, you want to say, did the Trump endorsement may have an impact, right? So just look here tonight, look in that area right there. This is Trump country, Texas. This is where Trump runs it up with 75, 80, percent sometimes more than 90 percent in these counties come November. That's tonight, right? That's tonight.

In the primary in this race, just a few weeks ago, when there was no Trump endorsement? Look at all that Cornyn red. That's a couple weeks ago, before the Trump endorsement. A lot of Republicans, without their president trying to say which way to go, said, We'll stick with our longtime incumbent. And then tonight, post-Trump endorsement, almost across the board. We're still waiting for some counties.

So, Kaitlan, without a doubt, without a doubt, the Trump endorsement helped Paxton. And without a doubt, even a lot of Republicans in Texas will tell you, with Paxton as the Republican candidate in this race, Democrats have a shot, and it's going to get very, very, very, very, very expensive in Texas.

COLLINS: I mean, John, just a week ago, when this endorsement came out, the President, you know--

KING: Yes.

COLLINS: I mean, this was a highly competitive race until that moment, and looking at those numbers that you just showed there, I mean, it's remarkable to see that this scenario playing out tonight was not a given, a week ago, even before the President had come in and got involved in the race.

[21:05:00]

KING: And it gets at the Trump paradox of, at the moment, Kaitlan. Bill Cassidy in Louisiana, John Cornyn in Texas tonight, Thomas Massie in Kentucky last week, five of those seven Indiana state senators in the primary before that, Republicans who have crossed Trump are getting beaten.

So, Trump goes into meetings with his political team, saying, I'm strong. Why do you people keep coming in here and telling me I'm weak? I'm strong. Look what I'm doing.

Yes, he still has an incredible grip on the most fervent MAGA Republican base, and you see it right here in this map tonight. At a time he is incredibly strong with the base, he is at the weakest point of his presidency, nationally, which is why this race now, the last time Texas Democrats won statewide was 32 years ago, more than three decades since Texas Democrats have won statewide.

Does this mean Mr. Talarico will meet Mr. Paxton? Doesn't mean that at all. But it does mean we have a very competitive race in a state the Democrats now think, Huh, we think we're going to get the House back. The math to get the House back is pretty good for the Democrats. Now, if you look at Maine, and Texas, and Ohio, and maybe Alaska, and maybe North Carolina, Democrats can plausibly look at a Senate map and say, Steep hill, but we got a chance. And they think the Republicans helped them in that effort tonight.

COLLINS: John King at the Magic Wall. We'll check back in with you as we are watching these numbers and all these other races closely tonight.

My colleague, Arlette Saenz, is at Ken Paxton's campaign headquarters in Texas.

And Arlette, obviously, I know that you were saying they were feeling confident earlier. What is the latest you've been hearing from the Paxton campaign tonight? ARLETTE SAENZ, CNN CORRESPONDENT: Well, Kaitlan, the mood here at Ken Paxton's runoff prime -- party has really been jubilant, as the crowd erupted in cheers and whistles when this race was called for their chosen candidate.

Paxton's campaign was feeling incredibly confident heading into tonight, and a big reason why is because President Donald Trump decided to endorse Paxton in that last-minute decision, just last week. One GOP source aligned with Paxton, telling me that certainly the President's endorsement was a big help.

But this is a remarkable turn of events for Paxton, who had worked for months to try to court Trump's endorsement over Senator John Cornyn, this race really serving as a major test of the President's grip on the Republican Party.

Paxton has long been popular with the MAGA base here in Texas, and he ran incredibly closely to the President in his agenda throughout the campaign. But Cornyn and many GOP senators have expressed frustration and anxiety about Paxton potentially being the GOP nominee. Until the very final minutes of his campaign, we heard from Senator John Cornyn, trying to argue that Paxton's personal and legal scandals here in the state, that that would be a liability for Republicans come November. The big question is whether general election voters will, in fact, feel that way.

But tonight Paxton's team is feeling very good as they've gotten him across the finish line, and now are looking forward to that general election matchup against James Talarico, the Democratic nominee.

Arlette Saenz, we'll be checking in with you throughout the hour. Let us know if we're going to hear from the candidate.

We've also got my political sources here that include a pair of Texans with us tonight.

We've got CNN Political Commentator and the former Democratic National Committee communications director, Xochitl Hinojosa. I should point out, her sister is running for governor of Texas as a Democrat.

We also have our CNN Political Commentator, and Democratic strategist, Paul Begala here with his Longhorns sticker in tow.

PAUL BEGALA, CNN POLITICAL COMMENTATOR, DEMOCRATIC STRATEGIST: And tie.

COLLINS: And his tie.

BEGALA: And my sister not running for anything yet. But I think she should.

COLLINS: And Scott Jennings, who is not wearing a jacket tonight, but he is wearing a tie, so we'll let you stay at the table.

I mean, Scott, to John's point of how Ken Paxton is faring in this race. And the numbers are still coming in. This was unthinkable, even just maybe two weeks ago, for some Republicans.

SCOTT JENNINGS, CNN SENIOR POLITICAL COMMENTATOR, FORMER SENIOR ADVISER TO MITCH MCCONNELL, HOST, "THE SCOTT JENNINGS RADIO SHOW" ON SRN: Yes, Paxton was running a little bit ahead here, but a little bit ahead. And then when Donald Trump showed up, it changed everything.

Now, if you go back to the primary results, Cornyn actually narrowly won more votes in the primary. But there was a third person in the race, a guy named Wesley Hunt. And obviously, those Wesley Hunt voters didn't want to vote for Cornyn, and most of those obviously have gone to Paxton.

But look, the bottom line is this: if Donald Trump wants you to be the nominee of the Republican Party for virtually any office, he can will it into existence, and that has happened again tonight in Texas.

There's also an attorney general campaign going on underneath this. I don't think we've called it yet. But there's a strong undercurrent of who's for Trump and who isn't in that race, and it looks like the more Trump-aligned candidate is going to win down there as well.

So, we're learning this lesson over and over again. Indiana, Louisiana, Kentucky, where I live, and now Texas, over and over and again, we're learning, if Donald Trump wants you to have the party's nomination, the voters look at that and say, We trust the President's judgment and we'll give it to you.

COLLINS: But Paul, I mean, I should note, when we're hearing this tonight about the concerns of what this general election matchup is going to look like. It's not coming from Democrats or just critics of the President. It's coming from Republicans in his own party who are up on Capitol Hill that are worried about it.

[21:10:00]

BEGALA: Right. Because they can count. Trump makes you unbeatable in the primary, but it could make you unelectable in the general. We're talking about Texas Senate seat up.

All right, King referred to this. And he's generally wrong about everything. He's a horrible person. But he's right about this. My party, Democrats haven't won anything in Texas in 32 years. They haven't won a Senate seat in 38 years. They haven't won a governorship in 36 years. They haven't carried a presidential candidate in Texas for 50 years. And we're sitting here saying that Texas is up for grabs, in part because the Democrats nominated a very strong candidate, James Talarico, who in the polling right now is 11 points above water. His popularity is very high.

Mr. Trump, beloved by Republicans in Texas, the bloom is off the rose on that, he's underwater, even in my beloved Texas, underwater, more unpopular than he is popular in the polling. So, this is the problem that Republicans are going to have now in a state that all they had to do was fog a mirror and they won Texas, and now they're going to have to fight like hell and spend hundreds of millions of dollars. COLLINS: Well, I mean, Ken Paxton is someone who has been MAGA- aligned, he is someone who way before Trump was suing the Obama administration many times. He actually, I mean -- yes, he's been indicted, and then had the charges dropped, he was impeached, then acquitted. He's never lost an election that he's -- that he's run, I don't believe, during his political career.

XOCHITL HINOJOSA, CNN POLITICAL COMMENTATOR, FORMER DIRECTOR OF PUBLIC AFFAIRS, DOJ, FORMER COMMUNICATIONS DIRECTOR, DNC: But he's also not an establishment type of candidate.

What's interesting here is that John Cornyn knows how to fundraise, he knows how to do the things that an establishment Texan would do. Ken Paxton was not able to raise in this race, and he does not have a lot of money right now.

I have to admit that tonight, while Talarico is not on the ballot, my guess is Talarico will likely raise more money tonight than Ken Paxton will in a red state. And it is interesting because, the Republican resources will need to come in heavily in a state like Texas, and those are resources that they're not going to be spending anywhere else.

Talarico is well-funded. Talarico will continue to raise money. But it's interesting to me that now Republicans have to worry about deep red Texas because they have a flawed candidate who does not know how to raise, and you're now seeing that currently play out.

JENNINGS: All these analysis of this race is sort of the differences between what a Cornyn or a Paxton would look like here.

I'm thinking about the differences between Talarico and literally every other Texan. Don't know any Texans who believe in six genders other than Talarico. Don't know any Texans who said it's immoral to eat meat other than Talarico. Don't know any Texans who walk around saying things, You know, God is non-binary. You all are both Texans. Do you know any other Texan who even talks like that? Issues aside, who says these things out loud? When this gets--

BEGALA: Wait--

JENNINGS: When this gets adjudicated, all that money coming in from California and New York, it'll be well-spent in Texas.

BEGALA: You know what I'm smelling, Scott? Fear. Panic. Fear--

JENNINGS: Well--

BEGALA: --stinking panic. You guys are on this--

JENNINGS: Fear of the six-gender guy?

BEGALA: You are on this -- he's more popular than Trump in Texas, brother.

JENNINGS: Can you explain his position? BEGALA: He cited a biological study. It's not his position.

JENNINGS: And he--

BEGALA: He cited a study.

JENNINGS: So you're for it?

BEGALA: So -- so I'm--

JENNINGS: You believe in six genders?

BEGALA: You know what I'm not for? I'm not for $6.89 hamburger, OK? James actually eats beef, OK? But he can afford to. Most Texans can't anymore.

JENNINGS: But if they're--

BEGALA: Now Ken Paxton can because, on a government salary, he's become a millionaire. How does that happen? He can afford hamburger. This is what's going to be about. This is -- you want it to be about woke. I want it to be about broke.

JENNINGS: No, I want it to be about--

HINOJOSA: And I--

(CROSSTALK)

BEGALA: Let's see who -- let's see what's--

(CROSSTALK)

JENNINGS: I want it to be about, are you a normal--

HINOJOSA: Well, I actually I--

BEGALA: You just smell the fear.

HINOJOSA: I--

(CROSSTALK)

JENNINGS: --are you a normal person--

(CROSSTALK)

BEGALA: So--

(CROSSTALK)

JENNINGS: --six genders and no meat in Texas--

HINOJOSA: What I will say is--

BEGALA: It's terror. It's terror. They're so afraid-- (CROSSTALK)

HINOJOSA: Scott is melting down, but that's -- that is like the Republican Party right now. You have a--

JENNINGS: You guys endorsing the genders is amazing.

HINOJOSA: You have a -- I'm not endorsing that, and neither is Talarico, to be honest.

JENNINGS: Oh. Whoa. Whoa. Whoa. Whoa. Whoa. Whoa.

COLLINS: Let her make her point, Scott.

HINOJOSA: Hold on. I'm not--

COLLINS: Let her make her point, Scott.

HINOJOSA: Well let me -- let me--

JENNINGS: OK.

HINOJOSA: Let me make my point. He is an eighth generation white Texas male who loves meat, appeals -- talks about the cost of living in the state, is appealed to -- appealing to a moderate electorate, including Republicans who don't want to vote for Paxton, and Republicans are running completely scared right now. And I think that is what--

(CROSSTALK)

JENNINGS: So, just for the record--

HINOJOSA: What I will say -- hold on. Hold on. But I want--

JENNINGS: --neither of you can define the gender thing.

(CROSSTALK)

HINOJOSA: When I -- when I -- when I -- we're talking about morality, and, like, values and stuff like that. You have Paxton here, who was married for almost 40 years, and his wife, who knows him the best, ended their marriage on biblical grounds. What does that mean? I'm a Catholic. I will say, that either means you cheated on your spouse with a man or woman, or you went ahead and abused your spouse. I will say, that is, when you're talking about judgment, a woman who knows that -- has known that man for 40 years, that is judgment.

COLLINS: Well, Scott, can I also ask you. I mean, where does the Republican Party in Texas go from here? Because John Cornyn, I mean, in his interview that he did with Manu Raju, earlier today, made pretty clear that he's not going to be coming out and endorsing Ken Paxton in this race, I mean, and--

JENNINGS: Well, he said he's going to support the ticket.

COLLINS: There is a question of -- well, voting for the ticket and endorsing it's another thing. But there is a question of how much money MAGA is going to have to spend in this race. Is there not?

[21:15:00]

JENNINGS: Yes, I don't disagree. It's going to be an expensive race. I think money will be spent by both sides.

And Talarico being popular among donors in California and New York and Massachusetts, is never going to wash off the weirdness of the gender thing, of the meat thing, of the God is non-binary, of the Bible actually endorses abortion, all of these things. Wherever you are on the issues, who talks like that? No Texan that you know actually speaks these things out loud, other than Paul, I guess, tonight. He's latching on. But no other Texan speaks this way.

Paxton, he'll speak like a normal person. He'll have positions that are center, center-right.

COLLINS: But if he's talking about affordability, to Paul's point--

JENNINGS: He'll talk -- he'll have center-right positions.

COLLINS: If he's talking about affordability, to Paul's point--

JENNINGS: Yes. And Paxton--

COLLINS: --is that something that could be more effective with voters that are worried about that?

JENNINGS: And Paxton will talk about affordability, when he talks about cutting taxes, rolling back regulations, and creating jobs, and making energy prices low.

BEGALA: How did -- how did Ken--

JENNINGS: That's what he'll talk about.

BEGALA: How did Ken Paxton become a millionaire? He makes $153,000 a year as Attorney General. When he became a state official, his net worth, according to his own disclosures was $175,000. Now he's a multimillionaire. Wall Street Journal says he has a 11 homes. That's more than genders. He's got 11 damn homes. How did he get so rich?

COLLINS: You know, to Paul's point, I mean--

BEGALA: Crooked Ken is what -- is what Senator Cornyn calls him.

COLLINS: To the question of the Republican Party in Texas tonight. The NRSC, the Senate Committee just put out a statement tonight--

JENNINGS: Yes.

COLLINS: --that does not name Paxton or John Cornyn in this.

JENNINGS: Yes.

COLLINS: It was before the race had been projected. But it just says a state that the President won by nearly 14 points is not going to elect James Talarico, talking about his positions. But I mean, they didn't mention either of the Republican candidates in this race.

HINOJOSA: Yes, I mean I think that's right. The establishment Republican Party, NRSC, has not backed Paxton, and it'll be interesting to see whether they're comfortable running ads.

What they're doing, they were going around town, and you know this well, Scott, telling people that if Paxton won this race, that they were going to have to spend a $100 million--

BEGALA: Right.

HINOJOSA: --that they don't have on this race. And that seems like a problem.

COLLINS: Let's actually listen to see how John Cornyn himself is responding to this projection tonight.

SEN. JOHN CORNYN (R-TX): --32 million Texans every day that I'm honored to represent. With long hours, high stress, and job uncertainty. I want to express my gratitude to my staff for their incredible professionalism and dedication to the 32 million people of Texas that I'm honored to represent.

To everyone who's worked with me alongside of me for all these many years, I just want to say, and then to my supporters in this campaign, more than a 1,000 current and former elected official endorsements, more than 30 statewide organizations to every financial supporter, every volunteer, everyone who voted for me in this election, I want to thank you from the bottom of my heart.

Tonight, I'm reminded of something Teddy Roosevelt said in 1910. He said, It's not the critic that counts: not the man who points out how the strong man stumbles or where the doer of deeds could have done better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and blood and sweat, who strives valiantly, who errs and comes up short again and again because, there is no effort without error or shortcoming, but who knows the great enthusiasms, the great devotions, who spends himself in a worthy cause; who, at the best, knows, in the end, the triumph of high achievement, and who, at the worst, if he fails, at least he fails while daring greatly, so that his place shall never be among those cold and timid souls who knew neither victory nor defeat.

A number of years ago, up in West Texas, that's not the region, that's the city where there was a terrible catastrophe, the county commissioner up there said something that stuck with me all these years. He said, Being a Texan doesn't describe where you're from, it describes who your family is.

And for the past two and a half decades, I have represented this family in the United States Senate. During that time, I helped write and pass a number of historic tax reform bills, focus on building our military for tomorrow, helping put hundreds of conservative judges on the federal bench, worked to take Washington's boot off the necks of Texas job creators, and helped tackle some of our nation's most challenging problems.

[21:20:00]

In this runoff election, approximately 8 percent of registered voters made their voices heard. And of that 8 percent who voted, roughly 60 percent said they were ready for a different direction. Another reminder that those who show up decide for those who do not.

There is a simple rule in elections. You've heard me say it before. And that is the candidate who gets the most votes wins. The party in the majority gets to govern. And my hope is to keep my party in power for generations.

I am an optimist by nature, which is just another way of saying I am a Texan. Yesterday, when I was in San Antonio, where I stood alongside of a 109 students who had been admitted to Service Academies for this upcoming year. This was the 20th time that we've had this academy send-off, and it remains my favorite event of the year. Because these young men and women, the leaders of our military and our communities and our nation tomorrow, give me great hope and optimism for our future.

Well, a scripture verse comes to mind as well, where the Apostle Paul said, I've fought the good fight, I finished the race, and I've kept the faith. Over the next seven months, my service in the United States of -- my service in the United States Senate, I intend to continue my work to help make this nation a better place for all Texans and all Americans.

Thank you very much. And may God bless Texas, and may He continue to bless the United States of America.

COLLINS: That is Senator John Cornyn, who just spoke after the race was projected to go to his Republican opponent in this race, the Texas Attorney General, Ken Paxton, quoting Teddy Roosevelt, The Man in the Arena, while acknowledging that he came up short in votes, his voice wavering at times as you listen to him there. And also saying one thing, as Scott was just noting a minute ago, he does intend to support the Republican ticket this November, which obviously means he plans to support his -- now his former opponent in this race, who is now going to be the Republican nominee in this Senate race.

John King is back at the Magic Wall for us.

And John, obviously listening to that speech there. John Cornyn is someone who has been in the U.S. Senate for 24 years, as this is coming on the heels of this loss. That it was maybe in March, I think, that the President was on the verge of endorsing him.

And then his opponent, Ken Paxton, came out and said he would drop out of the race if the Senate nuked the filibuster and pushed through the SAVE Act, the SAVE America Act that Trump wants so badly and has caused huge tension between the President and Senate Republicans here in Washington.

KING: And if you look at this map, Kaitlan. We've talked about this before. You've talked about it with your smart panels in recent weeks. President Trump is incredibly weak nationally right now. His national poll numbers are down, he's underwater, the Iran war is unpopular, gas prices are up. However, the President has shown yet again, in Texas, his power over the Republican base.

Senator Cornyn, graceful there as he heads for the exits. This is embarrassing for a veteran Republican incumbent. I'm old enough to remember when John Cornyn was a rising star in Texas politics two and a half, three decades ago.

Tonight, Ken Paxton is getting 63 percent of the vote, has a 222,000 -- 222,000 vote lead. The incumbent Republican senator, getting just 37 percent. Perhaps that changes a little bit as the final votes come in. But thumping, shellacking, call it what you will.

254 counties in the giant state of Texas, more counties than any other state. One, two, three, four. Four of those counties, John Cornyn is leading in the vote tonight. He is the four-term Republican incumbent senator of this state, and he is leading in only four counties at the moment as the votes come in.

Again, to the power of the President, I just want to draw you a line right here. This is ruby-red rural Texas. Those counties inside the green are places where Trump gets 70, 80, sometimes 92, 93, percent of the vote. They're small. In some of those counties, it's a 129 votes. In others, it might be 500 votes.

[21:25:00]

But this is the -- this has been the Trump phenomenon in rural America. That is tonight. This was the primary, just a few weeks ago, when Donald Trump had not endorsed in this race, all that red is John Cornyn. That was then, absent the Trump endorsement.

That is tonight, Ken Paxton padding his victory by doing what Trump does, running it up in the rural counties.

And so, the numbers are impressive for Mr. Paxton tonight. And now we go into November, where Democrats do believe, I've been in Texas a couple times this cycle already, they believe they have a shot. It's been 32 years since the Democrats have won statewide in Texas. So, be a little skeptical. But they think they got a shot.

COLLINS: Yes, President Trump will be happy tonight. But as our colleague, Jeff Zeleny, points out, Senate Democrats might be happy as well here.

KING: That's right.

COLLINS: John King, thank you for joining us from the Magic Wall.

Up next here. We have much more of our special breaking news coverage tonight, as we are waiting to hear from Ken Paxton himself at his event.

Also, Harry Enten is here with his look at where this race could go next, as Paxton will now face the Democrat, James Talarico.

(COMMERCIAL BREAK)

[21:30:00]

COLLINS: Welcome back to our special live coverage, as we are waiting any minute now for Ken Paxton to take the stage in Texas and speak. That comes, after the President's endorsement of Paxton in this Texas race has paid off tonight and sent a very clear message to the Senate GOP: extreme loyalty or else.

Paxton's loyalty to the President dates back years. You'll remember, he took the stage at his rally on January 6, 2021, hours before rioters attacked the Capitol on that day. As the Attorney General in Texas, he also fought in court for Trump's false claims about the 2020 election.

(BEGIN VIDEO CLIP)

KEN PAXTON, (R) TEXAS ATTORNEY GENERAL: We sued four states over the ballot fraud and not following the Constitution, not following state law, and we took it directly to the Supreme Court, and they should have heard our case.

(CHEERING)

PAXTON: And let me just finish up by saying that what we have in President Trump is a fighter, and I think that's why we're all here.

(END VIDEO CLIP)

COLLINS: Paxton is someone who filed more than a 100 lawsuits against the Biden administration when he was Attorney General, many of them on issues like weaponization of government agencies and vaccine mandates.

But to also understand the magnitude of Ken Paxton's victory in Texas tonight is to also understand why Republican-aligned groups have burned through tens of millions of dollars, highlighting his years of scandal to portray him as unelectable in a general race.

In 2015, Paxton was indicted for allegedly encouraging investors to fund a technology company without disclosing that he had been compensated for referrals. It wasn't until years later that a settlement was reached, and the felony charges against him were formally dismissed. He was required to complete community service, legal education, and also pay restitution.

Then, in 2020, several members of Ken Paxton's senior staff reported him to the FBI, alleging bribery, abuse of power, and misusing the A.G.'s office to help a political donor. He denied the allegations. And in May 2023, the Republican-controlled Texas House impeached him over it.

(BEGIN VIDEO CLIP)

PAXTON: This shameful process was curated from the start as an act of political retribution. I hope the House makes the right decision. But if not, I look forward to a quick resolution in the Texas Senate, where I truly believe the process will be fair and just.

(END VIDEO CLIP)

COLLINS: He was ultimately acquitted by the Texas State Senate, and the Justice Department under President Biden reportedly dropped its case against him just before the start of President Trump's second term.

That's not where the controversy stopped, though. In fact, what followed became a pretty key part of Senator John Cornyn's campaign message against him.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE (voice-over): Crooked Ken Paxton cheated on his wife. She's divorcing him on biblical grounds. So now Paxton's wrecking another home, sleeping around with a married mother of seven. Now, think of the Paxton dirty deeds we don't know about yet.

The wife cheater and fraud?

Or the Texas workhorse?

(END VIDEO CLIP)

COLLINS: I should note, CNN has not independently verified the allegations that were made in that video, and Paxton didn't respond directly to the allegations in the statement that he put out, but said he was running because he loves his family, his state, and his country, and that he argued they deserve a far better senator than John Cornyn.

Now, I should note, we are actually hearing from Ken Paxton tonight on stage. Let's listen in.

PAXTON: I feel speechless in a way, but you know they're (ph) going to let me do that.

Wow. To the people in this room, to the people watching at home, and to the people of the great state of Texas. Tonight, we just made history.

(CHEERING)

(APPLAUSE)

PAXTON: I want to thank my family, my kids, my grandchildren, the Paxton Patriots, and every single person here today.

(CHEERING)

PAXTON: Without your love, your support, and your prayers, we would not be here tonight, celebrating this incredible victory. I'd also like to thank all of the grassroots, local, state, and national leaders who supported this campaign, including Congressman Brandon Gill, who just spoke.

(CHEERING)

(APPLAUSE)

PAXTON: Lance Gooden. Congressman Nehls. Congressman Wesley Hunt. And Congressman Ronny Jackson.

(CHEERING)

(APPLAUSE)

PAXTON: I'd also like to thank Scott Presler and Turning Point Action.

(CHEERING)

(APPLAUSE)

[21:35:00]

PAXTON: And Turning Point Action for their endorsements.

And then there's one person that I think you might know. President Donald J. Trump.

(CHEERING)

(APPLAUSE)

PAXTON: When everyone in Washington told him to abandon me and abandon the people of Texas, he didn't listen. Instead, he gave his complete and total endorsement. President Trump is the leader of our party, and his endorsement in this most power -- is the most powerful force in politics.

(CHEERING)

(APPLAUSE)

PAXTON: And I am honored to have his support, and I look forward to working with him in the Senate to deliver for Texas.

(CHEERING)

(APPLAUSE)

PAXTON: Tonight, we just sent a Texas-sized message to Washington.

(CHEERING)

(APPLAUSE)

PAXTON: I said it in March, and I'll say it again now, today, change was on the ballot, and change won.

(CHEERING)

(APPLAUSE)

PAXTON: Let me be clear. This is not just my win. This is your win.

(CHEERING)

PAXTON: We just proved that this Senate seat doesn't belong to Washington. It belongs to you, the hardworking men and women of this state.

(CHEERING)

(APPLAUSE)

PAXTON: We went up against a $150 million and all the attacks in the world, and you know what happened? The voters declared loud and clear a simple truth that we know in our hearts and in our souls: Texas is not for sale.

(CHEERING)

(APPLAUSE)

PAXTON: Now, I want to take a minute to say something about Senator Cornyn. I want to thank Senator Cornyn for his service to this state. John has dedicated much of his life to serving Texas. He's worked diligently for years to help Texas. And for that spirit of service to the Lone Star State and our nation, I'm very grateful. Thank you, John.

(APPLAUSE)

PAXTON: So, no matter who you supported in this race, whether it was me, Senator Cornyn, or you voted for someone different in March. I want to thank every single Texans, and I want to let them know that I want to earn your support.

Tonight is not the end of a campaign. Tonight is the beginning of the fight to preserve every value we hold dear. The future of Texas and the future of America is on the line, and I intend to do everything I can to expand our movement.

I've won three statewide elections because, I know how critical it is for our party to come together, and that's what we must do now. Without a shadow of a doubt, I will be the Democrats' number one target in November.

(CHEERING)

PAXTON: Texas will be the radical left's number one priority. But if there's one thing I know about Texans, it's that we're not going to let them take it.

(CHEERING)

(APPLAUSE)

PAXTON: This campaign is not about red versus blue. It's about so much more. My opponent is the most extreme radical the Democrats have ever nominated. He's even running a vegan campaign, whatever that is.

(LAUGHTER)

PAXTON: He goes by a few names that you may all have heard of. Some people know him as Tofu Talarico.

(LAUGHTER)

PAXTON: Some people call him Six-Gender Jimmy.

(LAUGHTER)

PAXTON: I've even heard some people call him James Tala-freak-o.

(LAUGHTER)

PAXTON: And others refer to him simply as Low-T Talarico.

(CHEERING)

PAXTON: But no matter what you call him, let me tell you that--

COLLINS: You are listening to the Texas Attorney General, now the projected Republican candidate in the Texas Senate race that is going to go up against James Talarico, as he was just referencing there.

That's Ken Paxton, who just defeated Republican Senator John Cornyn tonight, a race that was highly competitive until President Trump came in and endorsed Ken Paxton, who is on stage right now, about a week ago, and shifted the dynamics of this race in a way that many were not seeing coming.

I've got my political panel here with me, and Scott Jennings, and David Axelrod.

I mean, and Scott, just to show you the impact that this is going to have. You heard him say there that he is going to be Democrats' number one target, come November. The Cook Political Report, since this happened tonight, has just changed their view of this race as, likely Republican, to now say it is, lean Republican, in their view, in terms of what this dynamic looks like.

JENNINGS: Yes, look, I think Paxton is right. Democrats are going to target this. They're going to spend maybe hundreds of millions of dollars in Texas. My view is it is still likely to elect a Republican in November. It won't be Cornyn. It will be Paxton. But a lot of money is going to be spent there. I suspect some Republican money will be spent there as well. I suspect, Axe, it will be a negative campaign.

[21:40:00] And when you go back and forth on who does Texas want to have represented in the U.S. Senate, I have a hard time believing, all negative attacks aside, they're going to want to send somebody to the Senate who would oppose Donald Trump who won Texas by double digits.

But look, expensive negative campaign to come. I agree that Republicans still have the upper hand. But you got to run the race, and now that's Paxton's burden. And I think it was smart for him to say something nice about John Cornyn tonight. He's going to need every single Republican on board, and I think he's going to get them.

When the -- when the contrast is made here, you're going to get somebody who's going to vote Republican and fight for Republican values versus somebody who's pretty far outside of the mainstream as it relates to Texas.

COLLINS: Axe, what's your view?

DAVID AXELROD, CNN CHIEF POLITICAL ANALYST, FORMER SENIOR ADVISER TO PRES. OBAMA: First of all, I don't think he's going to be the number one target of Democrats because, I think Democrats are not going to -- like the party, the national party, I don't think, will spend a dime in Texas. Talarico can raise all the money that he needs to raise.

I think the Republican Party, however, is going to have to spend a fortune to try and save Paxton in Texas, which is what, of course, Cornyn warned, and some of the party leaders warned about.

And what that means is that other Democratic candidates around the country are going to be in better shape because, the money that's being spent to save Paxton isn't being spent in their races. So, I think overall, it increases the ability of Democrats to compete and win seats. That's one -- that's one element of this.

I also think, yes, it's going to be -- it's obviously going to be a negative campaign. You are a brilliant exponent of such things, and I mean, I heard you and Begala go at it, and I actually thought that was a good preview--

JENNINGS: Yes.

AXELROD: --of the campaign you're going to see. I mean, you -- you used some of the tropes that you heard from Paxton, and Begala talked about the kind of cost of living issues that are plaguing people in Texas, and I think that people in Texas are pretty mad about that. The Texas economy isn't great. People have concerns about affordability. The Hispanic vote in Texas, which was very strong for Donald Trump in 2024 is now a -- by double digits in Talarico's corner in this race.

So, I mean, I think that Paxton has his work cut out for him. I mean, the man who John Cornyn intimated that he was going to support tonight, he called an embarrassment, and he's called him a lot worse during the course of his campaign. I expect that Cornyn may make an appearance in some of the Talarico advertising there.

COLLINS: Yes. AXELROD: Because this is a very scandal-scarred candidate and--

COLLINS: And Cornyn -- or Talarico is putting out a comment tonight, thanking John Cornyn for his time in the Senate, and also saying, If you're a Cornyn supporter, we welcome you inside our camp.

AXELROD: Well, look, I think that -- I've heard from Texas Republicans who are longstanding Republicans who said, I'll never vote for Ken Paxton.

Remember, he was impeached in the -- in the Texas House overwhelmingly in a Republican-dominated House for some of the things that he did as Attorney General. He called it a partisan vote. They controlled the House and he got overwhelmingly impeached. So, I mean, I think there are real issues about Paxton, which is why there were such great concerns about him.

JENNINGS: Look, both candidates are going to have to answer for their record. And while they're attacking Paxton, Paxton is going to be drawing a very clear contrast with Talarico, who has staked out some extraordinarily bizarre out-of-the-mainstream positions on a number of things. All of that video--

AXELROD: Yes, absolutely. No, I understand--

(CROSSTALK)

JENNINGS: --all of that video is going to come up. So, look, I think the point is it's a real campaign.

AXELROD: Yes.

JENNINGS: The baggage will be unloaded. We'll see whose bags are heavier.

AXELROD: And who is actually mainstream and who isn't.

JENNINGS: I think that's going to be a court--

(CROSSTALK)

AXELROD: I don't think security fraud is mainstream in Texas, or some of the other problems that Paxton's -- I don't think paying $6 million or millions of dollars out to whistleblowers because of the abuse of them by Paxton, who they blew the whistle on--

JENNINGS: Well--

AXELROD: --is mainstream. I don't think that's what people think in Texas.

JENNINGS: I don't think six genders, no meat, and calling the American flag a complicated symbol, is mainstream.

AXELROD: If that's -- well, those are just--

(CROSSTALK)

JENNINGS: But we'll fight it out.

AXELROD: No, no, I mean, that's your interpretation of what he said. And we'll see.

JENNINGS: That's what--

AXELROD: But I think at the end of the day, people are going to want someone who's going to speak to their concerns.

COLLINS: Yes.

AXELROD: And this is not their main concern. We ran that race in 2024. Trump got elected. I'm not sure it's going to play in 2026.

JENNINGS: And Democrats learned nothing.

COLLINS: We shall see.

David Axelrod. Scott Jennings. Great to have you both here tonight.

Of course, that is what Republicans are now facing. It'll be interesting to see what Senate Republicans in Washington have to say about this.

Up next. What Democrats could be learning from what New York City Mayor, Zohran Mamdani, is doing in New York. He's here for an interview with THE SOURCE, right after this.

[21:45:00]

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

MAYOR ZOHRAN MAMDANI, (D) NEW YORK CITY, NEW YORK STATE: So often when confronted with intractable challenges, the world has looked to New York City to show the way. We have built great things before. Skyscrapers that rise into the clouds; grand bridges, libraries and museums; the most ambitious public housing developments in the nation; a team that can come back from 22 points with a little more than six minutes left in the first game.

(CHEERING)

(APPLAUSE)

MAMDANI: Block by block, we will build once again.

(END VIDEO CLIP)

[21:50:00]

COLLINS: That was New York City Mayor, Zohran Mamdani, rolling out a plan to tackle the housing affordability crisis in America's biggest city. The Mayor has called the lack of affordable housing New York's number one crisis.

And joining me now is New York City Mayor, Zohran Mamdani.

And thank you, Mr. Mayor, for being here. As you're rolling out this new plan.

Just for everyone to understand the reality of what New Yorkers are facing. There was a study that your Office of Equity and Racial Justice did that found that the median cost for a couple with no kids is over $106,000 to live in New York. That's without kids, just to emphasize that.

When everything from gas, to food, construction, prices are up, what do you expect a number like that to be by the end of this year?

MAMDANI: You know, I think we're going to keep seeing numbers like that increase across the country, given the economic conditions that Americans are living with. As you said, the war in Iran also is not just a moral affront or a political affront, it's also an economic affront to Americans' ability to make ends meet, and that even trickles down to New Yorkers' ability to live in this city.

However, the announcement we made today of a plan called Block by Block is looking to do everything we can to actually lower costs in this city because, we know that at the heart of a cost of living crisis, the number one driver of that crisis is the housing crisis.

And this is an announcement that does three key things: it builds 200,000 new affordable homes, preserves 200,000 affordable homes alongside it, and then additionally it invests in tenants across the city, makes it easier to provide code enforcement for housing violations, and does all of this while investing more than $5 billion in public housing, which has long been neglected, not just in our city, but frankly, across our country.

COLLINS: And I know, during the campaign, you wanted to double the city's funding for public housing. Right now, it's about $1.2 billion annually. The executive budget you have calls for $5.6 billion over five years. Do you still plan ultimately to double it?

MAMDANI: Yes, absolutely. This is the first step in our administration's approach to delivering for New Yorkers, who at the beginning of Niger's (ph) inception were shown a vision of city government delivering dignity for the most working class of the city.

And yet over the last few decades, ever since the Reagan cuts, we have seen public housing be overlooked and ignored time and time again, where now public housing has about $80 billion in capital needs, and too often that's been a figure that's been used to justify doing nothing.

And what we're saying as an administration is that we're not going to wait any longer for the federal government to be a partner in this work. We're going to start to deliver it ourselves.

COLLINS: Well, I mean, speaking of your government and the state government, the plan is also calling for up to a $100 billion in that public investment over a decade, funded through municipal bonds, higher taxes on corporations and top earners. Do you think you'll get the state approval that that requires?

MAMDANI: You know, we continue to be confident of the partnership we're building with the state. We've seen our ability to spend more of our capital dollars on housing as something that was unlocked through that partnership. And it's going to continue because, what we're talking about are hundreds of thousands of New Yorkers who live in public housing, who currently today are forced to endure hundreds of days before an elevator is fixed or before a vacant unit is turned over.

And this is just one part of our larger vision of building more housing than the city has seen for quite some time because, as you know, it's an issue across the country. And yet in New York City, the most expensive city in the United States of America, we've allowed the scale of ambition to be something that we only read about in our history books, while we continue to justify what has been a city that doesn't build enough for the people that it has.

COLLINS: You've said before that the city's housing budget, as you put it, cannot be tackled without the assistance of the federal government. Have you gotten any assurances from the Trump administration that that money will be coming?

MAMDANI: You know, I've shared with the President directly my hopes in working together to deliver Sunnyside Yard, which would be the largest housing development since the early 70s. Happens to be the same year since the Knicks last won the championship. We're hoping that continues this year as well.

And we've put that forward because, that would build 12,000 homes and create 30,000 jobs, and it would do so in partnership with the federal administration. So, we've put that forward, the President was interested, and that conversation continues. However, we know that this city will need to lead, and we look forward to having other partners join us at the table.

COLLINS: What does that conversation look like right now? I mean, I know obviously we all saw your meeting with the President, last fall. Has he said anything in terms of committing to that funding?

MAMDANI: Yes, I think it's still an active conversation. However, the President did make clear that he was interested in this.

[21:55:00]

And we've known that this is an idea that has lived within the public imagination for decades. It's going to take a lot to actually get it to fruition, but we are committed to that because, we think that it has a generational opportunity to unlock stability for New Yorkers who would live in this housing, as well as New Yorkers who would work on this housing, which is a key part of our plan, is that we look at New York City through every single lens of those that are going to actually construct these houses, those that are going to steward these houses, those that are going to live in these houses. Because, for too long we've thought of New Yorkers only in one way, when in fact many construction workers, at the end of the day, they go home and they're a tenant in our city.

COLLINS: Yes. Well, I mean, since you and the President talked about that plan. He posted later, despite it being a very warm and glowy meeting, from what the press saw, he said, quote, Mayor Mamdani is destroying New York City. It has no chance. And the United States of America should not contribute to its failure.

I mean, some people might see that and say, But where does that leave plans, especially things like this housing plan that will rely on federal money? And are you worried about that being at risk here?

MAMDANI: I think the President and I have said many things about the other. I don't think they preclude the ability for the city to actually work together with the federal administration on something of this scale.

And we're going to keep pushing it forward because, we believe that for far too long ambition has been something that has been left in the history books of our city. I mean, when we look at the fact that the Empire State Building was built in 13 months. And now, we spend about seven months after constructing a building just to move a tenant in? It's frankly unacceptable.

And we want to show what's possible in this country. In order to do so, we have to be willing to lead with a vision of ambition that actually matches the scale of the crisis. We're going to keep doing that here, and we will always leave an invitation open to the federal administration to join us in any of this work because, we know that these are not just New Yorkers. They're Americans, and they too need to see a government that actually cares about their well-being.

COLLINS: Have you spoken to the President lately?

MAMDANI: I know -- I keep those conversations between the two of us. I will tell you, however, that whenever we do speak, they are conversations about the welfare of this city, and anything that we can do to make it easier for New Yorkers to live here.

COLLINS: And you talk about housing. You have met with a bunch of CEOs, in the last several weeks, after you announced that what's been described as a pied-a-terre tax on second homes of the city's wealthiest. You put out that ad, obviously singling out the announcement -- that singled out the Citadel CEO, Ken Griffin. He later called that video, quote, Creepy and weird.

I know that your office, and -- that you've reached out to him. Have you heard back from Ken Griffin?

MAMDANI: We've reached out to make it clear that I'm willing to meet with any and all business leaders across the city. And I think that's important because, as the mayor of this city, I'm looking to ensure that I meet with anyone who is a part of this city's not just economy, but also our future. And what we've seen, whether it be Ken Griffin, whether it be Jamie Dimon, whether it be David Solomon, so many other business leaders across this city, is people who are creating jobs in the city. And even at their level of employment, whose workforce still face the pressures of an affordability crisis because, as you know, in New York City, you can be making six figures, and you're still going to blink when you realize you have to pay $20,000 a year for child care for a single child in this city. And so, we are looking forward to partnering with anyone and anyone to deliver on a vision that will take care of everyone across these five boroughs.

COLLINS: But you -- so, have you heard back from him, or you have not?

MAMDANI: Not as yet. But I'm going to continue to have these meetings to make it clear what our vision actually is for the city.

COLLINS: Speaking of executives. Jeff Bezos told CNBC last week on taxes, and obviously, you know, what you've said about affordability is looming in the background of this. He said that you could double his taxes and, as he put it, quote, It's not going to help that teacher in Queens, I promise you.

What was your response to that comment from Jeff Bezos?

MAMDANI: You know, I know a few teachers in Queens who would beg to differ.

And I think that if I was worth as much money as he was, then I would probably say the same thing. The fact of the matter is that we are talking about a city where one in four New Yorkers are living in poverty, and we're hearing from one of the richest men, that our world has ever seen, about how he and others who make that kind of money shouldn't have to pay their fair share.

And frankly, what New Yorkers want to see is a tax system that recognizes the scale of this affordability crisis and actually provides a way for city government to be able to invest in those same New Yorkers in the manner that we used to, decades ago.

COLLINS: On another topic. New Yorkers are in a very celebratory mood today because the New York Knicks have not won an NBA championship, I looked at this, since 1973.

MAMDANI: Go on.

COLLINS: They actually have not been to the finals since you were 7- years-old.

Did you ever think that you would see a Knicks finals run during your first year as mayor?

MAMDANI: You know, I prayed for it, I hoped for it, but you know, I didn't want to jinx it. But it is incredible. As you said, 1999, you know, the last time the Knicks were in the finals, Ricky Martin Livin' la Vida Loca was top of the charts, and we are incredibly excited to be playing that song again here in New York City today because, we're hopeful, we're excited. It's truly an incredible time to be a New Yorker.

COLLINS: Were you trolling Vivek Ramaswamy with your -- with your post overnight?

[22:00:00]

MAMDANI: You know, I just hoped he had a nice night. And we had a great one in New York.

COLLINS: That sounds like a yes.

MAMDANI: I'll leave that to you.

COLLINS: Mayor Zohran Mamdani, thank you for joining us. And Go Knicks.

MAMDANI: Go Knicks. It's a pleasure.

COLLINS: And thank you so much for joining us here on THE SOURCE for a very busy hour tonight.

"CNN NEWSNIGHT WITH ABBY PHILLIP" starts right now.