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The Story Is with Elex Michaelson
Fighting Government Fraud; New York City's New Mayor; CNN to Offer Live Coverage of Rose Parade for First Time; Artificial Intelligence Primed to Expand in 2026; Tatiana Schlossberg, Granddaughter of JFK, Dies at 35; Scotland's 'Hogmanay' Celebrations Include Wearing Kilts. Aired 12-1a ET
Aired December 31, 2025 - 00:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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ELEX MICHAELSON, CNN ANCHOR: I'm Elex Michaelson live in Los Angeles. THE STORY IS starts right now.
THE STORY IS fighting fraud. The Trump administration is cutting childcare funding in Minnesota after a viral video by YouTuber Nick Shirley.
UNIDENTIFIED FEMALE: How do you know that you're right? How do you know that all the allegations that you're making are true?
MICHAELSON: CNN's Whitney Wild goes one-on-one with Shirley. THE STORY IS the weather, how snow and rain in different regions could threaten your New Year's Eve plans.
THE STORY IS the future of AI. Wade Foster is one of the leading minds on the issue. CEO of Zapier is with us live.
UNIDENTIFIED MALE: Live from Los Angeles, THE STORY IS with Elex Michaelson.
MICHAELSON: And welcome to our final STORY IS episode of 2025. Our top story is in Minnesota where the Trump administration says it is now withholding all federal child care funding to the entire state, which comes in response to a viral video posted by a MAGA content creator who claims that he uncovered widespread fraud by Somali run child care centers in that state. CNN is looking into those claims and has not independently verified those accusations.
Deputy Secretary of Homeland Security announced the funding freeze on social media. He also says that federal child care funding for every state will now require justification and photo evidence for receipts. Earlier this week, DHS and the FBI said that they were surging resources to Minnesota to investigate what they called suspected fraud sites. One agent says the new push is due in part to that YouTube video.
It's important to note that fraud allegations in Minnesota are not new. The Justice Department under the Biden administration actually began charging dozens of people who frauded others starting in 2022. But this latest push comes as the Trump administration is specifically targeting Minnesota's Somali community. President Trump himself has called Somalis garbage, saying they should, "go back to where they came from."
And this latest so-called evidence comes from a man who has posted anti-Muslim and anti-immigrant content in the past. CNN's Whitney Wild speaks to that man behind the video and takes a look at his claims.
(BEGIN VIDEOTAPE)
WHITNEY WILD, CNN LAW ENFORCEMENT CORRESPONDENT: We're from CNN. Can we talk to you?
This is MAGA YouTuber Nick Shirley back at a daycare in Minnesota he alleged was a fraudulent facility in a now viral video.
NICK SHIRLEY, YOUTUBER: People are gonna say this is a left or right issue, but no, fraud is fraud. I'm not out here trying to put a twist on things.
WILD: Shirley's viral video released over the weekend in which he says he's uncovering tens of millions of dollars in fraud at Minneapolis daycares run by the Somali community was retweeted by Elon Musk and Vice President JD Vance. In the video, Shirley tries to open locked doors and talk to people at various daycares he claims are frauds.
Did you come during their normal operating hours when you came to visit?
SHIRLEY: I came at 11:00 AM, I believe, and I also came the following day, later in the day. The point of it is not whether or not I came at the right time of their operation hours. The point is, blacked outdoors. They can't give you any information. You call that number, no one answers.
I wasn't trying to go inside. And there should be a way for somebody to actually be able to call that number and somebody be able to answer. These aren't real businesses.
WILD: But surely you don't think a daycare should just be unlocked. You shouldn't be able to just walk into a daycare?
SHIRLEY: In the reception.
WILD: No. Every daycare is locked --
UNIDENTIFIED FEMALE: They have their door to lock.
SHIRLEY: And so, OK. You bring up a fair point then. But why can't they actually give me information how to enroll a child?
WILD: Federal law enforcement has been investigating fraud in Minnesota for several years. Both Attorney General Pam Bondi and FBI Director Kash Patel said on social media they've indicted dozens of defendants. DHS has posted multiple videos of agents they say are conducting a massive fraud investigation. Do you think that federal law enforcement hasn't done enough? I mean, they would say, look, these fraud cases have been going on, but they've already done like 80 indictments. The cases have been going, you know, for years.
SHIRLEY: And why did I show up one day in Minnesota and go to all these daycares? No children. They're receiving millions of dollars. We uncovered nearly $100 million, $110 million in fraud in one day.
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WILD: How do you know that all the allegations that you're making are true?
SHIRLEY: How do I know that they're true? Well, we showed you guys the -- we showed you guys what was happening, and then you guys can go ahead and make your own analysis.
WILD: We're coming -- so we can make our own analysis. Are you 100 percent sure you're true?
SHIRLEY: Yes, I am 100 percent sure I'm true.
WILD: CNN is looking into Shirley's claims.
Hi, my name is Whitney Wild. I'm a correspondent for CNN.
We reached out to several of the daycares featured in the now viral video. Only one daycare facility answered and said they are a legitimate business.
Have you seen the videos, you know, purporting that some of these daycares don't have kids inside?
Minnesota Republicans say despite the new focus from the Trump administration, they have been sounding the alarm on fraud for years.
LISA DEMUTH, REPUBLICAN MINNESOTA HOUSE SPEAKER: You know, we have talked about fraud. We have gotten stories. We have tried to push this forward every way that we can.
WILD: At the daycare where Shirley showed back up a stream of children walk inside.
You're saying that this is a fraudulent daycare, there's kids being dropped off right now.
SHIRLEY: Yes. The Commissioner of Children literally said a week ago this place was closed. They're showing face right now.
WILD: A viral video, disputed claims, and their full fallout remains to be seen. Dozens of fraud cases that DOJ is touting began during the Biden administration. Back in 2022, the US Attorney's Office for Minnesota announced 47 indictments for this massive fraud scheme. Since then, they've indicted more than 30 more people, and in total, they have secured at least 56 convictions. Whitney Wild, CNN, Minneapolis.
(END VIDEOTAPE)
MICHAELSON: Whitney, thank you. Earlier tonight, I was filling in for Kaitlan Collins on THE SOURCE and spoke with California Republican Congressman Kevin Kiley, and asked him about what's happening in Minnesota.
(BEGIN VIDEO CLIP)
REP. KEVIN KILEY (R-CA): Well, I think it depends upon the scale of the fraud. Clearly, they think it is a very large scale. In order to justify that sort of action, you know, parents really do rely upon federal support for child care. I'm the chairman of the subcommittee that has jurisdiction over this and we held a hearing earlier this year on the growing costs of child care that are posing a real hardship to parents.
But, you know, CNN reported in an article I was reading earlier today that the one of the lead federal prosecutors there says that it could be $9 billion out of the $18 billion in federal payments coming in is being used for fraud. If it's truly on that scale, he said it was on an industrial scale then, you know, of course we don't want half of the money just going to support criminals. So I think it just depends upon the scale and breadth of what we're dealing with.
Democrats and Republicans are against fraud. This is the hard earned tax dollars of our residents. That's not going towards any public purpose but is instead going towards criminals. So I would hope that we could find bipartisan agreement on that issue if on nothing else, because this is just a matter of trying to get our taxpayers the return on their investment that they're entitled to.
(END VIDEO CLIP)
MICHAELSON: Now during that same show, I also hosted a debate between Brian Tyler Cohen on the left and CJ Pearson on the right. It got heated of some of that in our next segment. Now though, to a developing story, the immigration case of Kilmar Abrego Garcia. A judge says that internal Justice Department files suggest that top officials in Washington worked with Nashville prosecutors to prosecute Abrego Garcia after he fought his wrongful deportation to El Salvador.
This is according to a newly unsealed ruling. Abrego Garcia is arguing that the charges, which stemmed from a Tennessee traffic stop years earlier, were brought in retaliation for challenging his unlawful removal earlier this year. He wants those charges dismissed, saying he's a victim of selective and vindictive prosecution.
Federal judge writes that the government's own documents "may contradict its prior representations." The decision to prosecute was made locally and that there were no outside influences. Now some US lawmakers are voicing their concern.
(BEGIN VIDEO CLIP) SEN. CHRIS VAN HOLLEN (D-MD): The Justice Department decided to bring these charges against him because he asserted his due process rights when they illegally shipped him off to CECOT in El Salvador. So yes, this looks like another example of the Trump administration sometimes manipulating the facts here, bringing a vindictive case against Abrego Garcia.
(END VIDEO CLIP)
MICHAELSON: That the perspective from the left. A hearing over Abrego Garcia's efforts to get the charges to Smith's is set for late January. His trial is currently postponed. Remember when Chris Van Hollen visited him when he was being held? That's what pictures we're looking at right there.
Now, authorities in Texas have recovered a body during the search for a teenager who went missing on Christmas Eve. They say it's too early to confirm whether the remains are in fact 19-year-old Camila Mendoza Olmos. She was last seen around 7:00 AM on dash cam video last Wednesday walking on the side of the road in San Antonio.
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The local sheriff says the body was found near Olmos's home. Firearm was also recovered. It's still being processed. Authorities say a relative of Olmos had previously reported a firearm missing. They do not suspect foul play, but say the body did show signs of self harm.
(BEGIN VIDEO CLIP)
JAVIER SALAZAR, BEXAR COUNTY SHERIFF: That there may have been some suicidal ideations on Camila's part before some signs of depression undiagnosed as far as we can tell. But from what's being described to us, it sounds like it was a young person going through a very tough time in their life and going, sorry, going through some emotional issues. And there was some indicators of suicidal ideations as well.
(END VIDEO CLIP)
MICHAELSON: Dozens of volunteers helped search for almost over the holiday weekend. We'll keep you updated as we learn more on this one. A judge has blocked the release of the autopsy reports for actor and director Rob Reiner and his wife producer Michele Singer Reiner. The Reiners were found stabbed to death in their home just over two weeks ago. Their son Nick Reiner has been arrested and charged with two counts of first degree murder.
The LAPD actually requested the autopsy records be sealed so investigators would learn important information surrounding the high profile deaths before the media and the public. Details on the cause and manner of death have now been removed from the LA County Medical Examiner's website.
Southern California is bracing for more rain that could result in flooding and mudslides. A new storm is heading to the area, which is still saturated from the intense storms during Christmas week. Parts of LA County that were scarred from recent wildfires are under evacuation warnings starting Wednesday morning. And while they're not mandatory, officials are urging people to prepare to leave due to debris flows.
Take a look at what's happening with the weather in Pennsylvania. Benches and railings all covered in a sheet of ice. Look at that, along a bay front in Erie County. The ice strong winds, blizzard conditions coming from a powerful winter storm that swept across central and eastern US. It knocked out power, disrupted travel during one of the busiest times of the holiday season.
By the way, it could be raining on the Rose Parade here in Southern California for the first time in 20 years. Zohran Mamdani will be sworn in as New York's next mayor on New Year's Day and some prominent leaders of the progressive movement will be there for the historic moment. Some other Democrats will not, that story next.
And ring it in the New Year with that most Scottish of traditions. We're talking about the kilt. Max Foster takes us there and shows what goes into making one and we'll see, does he even try one on. You got to stay tuned.
(COMMERCIAL BREAK)
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MICHAELSON: Zohran Mandani is just one day away from being sworn in as the mayor of New York City. Private inauguration will take place just moments after the New Year's Eve ball drops, followed by a public ceremony at City Hall later on New Year's Day. As CNN's Gloria Pazmino reports, the event will feature some of his high profile backers.
(BEGIN VIDEOTAPE)
ZOHRAN MAMDANI, NEW YORK CITY MAYOR-ELECT: On January 1st, I will be sworn in as the mayor of New York City.
GLORIA PAZMINO, CNN CORRESPONDENT: Zohran Mamdani, the 34-year-old Democratic socialist who stunned a political world in November, will be sworn in as New York City's 112th mayor at the stroke of midnight on New Year's Day. Mamdani, who will be New York's first Muslim and South Asian American mayor, will be introduced by progressive Congresswoman Alexandra Ocasio Cortez and sworn in by Senator Bernie Sanders.
Mamdani, who previously served in the State assembly and once moonlighted as a rapper, will take over the reins of America's largest city, overseeing 300,000 public employees and a $116 billion budget.
MAMDANI: I will fight for a city that works for you, that is affordable for you, that is safe for you.
PAZMINO: Mamdani's win against former Governor Andrew Cuomo in the Democratic primary shocked the political establishment.
ANDREW CUOMO, FORMER NEW YORK GOVERNOR: Tonight was not our night. PAZMINO: He cruised to victory again in November with promises to make
the city affordable for the working class.
MAMDANI: They are promises to freeze the rent, to make buses fast and free, to deliver universal childcare.
PAZMINO: To pay for his ambitious agenda, Mamdani wants to raise taxes on wealthy residents an ask Governor Kathy Hochul has so far rejected. But the governor, heading into her own re-election year in 2026, has said she'll work with the incoming mayor.
KATHY HOCHUL, NEW YORK GOVERNOR: He and I have had many meetings individually and with our staff to find a path forward, something that's reasonable that we can get started on universal childcare.
PAZMINO: Mamdani, who has called President Trump a fascist, says he is willing to work with him if it'll help his agenda. Last month he traveled to DC for a high stakes meeting with Trump in the Oval Office, who went from calling Mamdani a lunatic to this.
DONALD TRUMP, UNITED STATES PRESIDENT: We agree on a lot more than I would have thought. I want him to do a great job and we'll help them do a great job.
PAZMINO: Trump even reportedly remarked, wow, you are even better looking in person than you are on TV. So far, Mamdani has made appointments to New York City's core service agencies, including keeping NYPD Commissioner Jessica Tisch in charge of the department.
MAMDANI: I will demand excellence from my team, from myself, and also I will ensure that we create the conditions where that excellence is possible to deliver on.
PAZMINO: But some of his hires have garnered controversy. A day after naming his director of appointments, Mamdani accepted her resignation after it was revealed she had posted a series of anti-Semitic posts online more than a decade ago.
MAMDANI: We are currently underway at making changes in our vetting process.
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PAZMINO: As he prepares to take office, Mamdani is also getting a major real estate upgrade. He and his wife, Rama Duwaji, will leave their one bedroom $2,300 a month apartment in Queens and move into Gracie Mansion. Mamdani will be sworn in during a private midnight ceremony at the old now abandoned City Hall Subway Station.
A public inauguration is scheduled for the afternoon, planned in part by a star-studded committee, including children's YouTuber, Ms. Rachel, and actress Cynthia Nixon. Gloria Pazmino, CNN, New York.
(END VIDEOTAPE)
MICHAELSON: Earlier tonight on THE SOURCE, I spoke with our political panel, Brian Tyler Cohen, host of the podcast "No Lie" on the left, and CJ Pearson, co-chair of the Republican National Committee Youth Advisory Council on the right. And I asked them about the future of the Democratic Party.
(BEGIN VIDEOTAPE)
BRIAN TYLER COHEN, HOST, "NO LIE WITH BRIAN TYLER COHEN: It's clear that the energy of the party is with somebody like Zohran Mamdani. And he's been very outspoken about the fact that his political idol is Bernie Sanders. You can see that from the rallies that they're bringing, that they're hosting, the fight oligarchy rallies that AOC and Bernie hosted together.
And so, it's very clear where the energy is. And frankly, I think we're seeing in a lot of these candidates, ones who are more technologically savvy, ones who are more dynamic, who are more progressive. And that's very much in line with what we've seen from Bernie on down to AOC and now with Mamdani, who, by the way, is so charismatic and so effective at what he does, that like you said, he's even brought on Donald Trump as a fan.
MICHAELSON: Well, CJ, let's talk about that. So we know Republicans talked over and over again that he was going to be some sort of political boogeyman. But then President Trump embraces him in that Oval Office meeting. And New York magazine revealed yesterday this, I'm gonna put this up on the screen.
When Mandani walked into the Oval Office, Trump remarked, wow, you're even better looking in person than you are on TV. And the tone never changed from there. They write with Trump seemingly legitimately impressed by Mamdani. How much does that kill the potential ad campaign that the Republicans were expecting to run against the New York City Democratic socialist?
CJ PEARSON, CO-CHAIR, REPUBLICAN NATIONAL COMMITTEE YOUTH ADVISORY COUNCIL: Well, first and foremost, thank you so much for having me. But I got to tell you know, the President's a charmer. And I think that when he looks at what's happening in New York City right now, he wants every American, whether in New York City, Los Angeles or Miami Florida, to succeed and to thrive.
And so whether that means Zohran Mamdani, you know, to do a good job as mayor, I think that he wants him to do well. You know, to borrow a quote from President Barack Obama, when the president does well, the country does well. And so, New York City is one of the crown jewels of America.
And so, while socialism, of course, is not necessarily an economic philosophy that's ever worked anywhere in the world, wherever it's been tried, I think President Trump is, of course, rooting, you know, for the idea that maybe Zohran Mamdani will find the error of his ways and he will actually lean into the words of Mario Cuomo, who said that you've got a campaign in poetry and govern in prose.
Now it's time for Zohran Mamdani to figure that out, and remains to be seen if he will, but I'm hopeful. Fingers crossed for all the folks that live in New York City.
MICHAELSON: All right. Let's talk more about President Trump, because it's towards the end of the year, and no doubt this was the year of Trump. At the beginning of this year, one of the most powerful presidents of our lifetime got a lot of stuff done which a lot of folks on the right really like. A lot of folks on the left really don't. CJ, how do you assess the first year of President Trump's second term? How do you think he's doing?
PEARSON: Well, I assess it very clearly. I think this is promises made, promises kept by this president. We've seen a president not only made America safe again, he's also made incredible strides to making America affordable again. We see gas prices going down, we see everyday goods and grocery stores going down.
This is a president who's actually reversed the trend under Joe Biden. When people go to the grocery store, who would put things in there in the shopping cart and have to put it back. This is a president who has given the American people reassurance again. I got to tell you, as someone who's 23 years old, I feel like I have hope again under this president.
And so, it's been incredible to see. You know, the American people voted for this, and he has delivered everything that they asked for. He was given a mandate, not just by winning the Electoral College, by winning the popular vote. And I think the American people are very grateful for that.
MICHAELSON: Brian, promises made, promises kept. Are you feeling hope?
COHEN: No, I don't think that's exactly correct. And frankly, I think the vast majority of Americans agree with me, considering Trump's approval rating right now is at an all time low of 36 percent. I mean, he promised he would bring costs down. He talked about rent and housing and groceries.
And right now, costs and everything are rising thanks to him and his misguided trade war that everybody knew was going to raise the price.
PEARSON: That's frankly not -- it's frankly not --
COHEN: Our attacks on American consumers, inflation has not gone down. It's at 2.9 percent. It was roughly the same amount when Donald Trump took office. Manufacturing is -- manufacturing jobs in the United States are down. We've seen in the last couple of months, jobs are lost in this country despite Trump's promises that he was the jobs, jobs, jobs president.
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He promised free IVF, that's not happening. He promised he wouldn't touch earned benefits. We've seen cuts to Medicaid to the tune of 17 million Americans. We've seen cuts to the ACA subsidies. That's going to impact 24 million Americans, not going to help with anybody's cost. And finally, he promised that he would end the Russia, Ukraine war on day one. That hasn't happened. This guy's presidency is a graveyard of broken
promises. And frankly, the vast majority of Americans can see that. That's why they're responding to him the way that they are.
MICHAELSON: CJ?
PEARSON: Yes. Well, that's incredibly untrue. I think you look at this president, in fact, you know, I love that Brian brought up the Russian Ukraine war, a war that would not actually be happening if President Trump had been in office. But of course, due to the fecklessness --
COHEN: You know, it's interesting thing that the only --
PEARSON: You know, I let you talk, Brian. Please, Brian, let me talk --
MICHAELSON: Brian, let him finish. So to the point, what is the proof? How do you know that sure that there would not be a war there if President Trump was in office?
PEARSON: Well, I think it's results. You look at what President Trump has been able to do, whether it's between brokering peace between Israel and Hamas, and the incredible amount of peace deals he's been able to broker throughout his presidency. This is a president who actually personifies exemplifies peace through strength in every which way.
And so, Joe Biden, no, people didn't respect him. The world didn't respect him. And so yes, of course, Vladimir Putin viewed him as a doormat that he could roll over. You know, they viewed Joe Biden as a doormat. They viewed President Trump as a matador. And that's exactly why President Trump continued to deliver and deliver world peace in a way in which we've never seen before.
(END VIDEOTAPE)
MICHAELSON: Our thanks to Brian and CJ for a spirited debate there. Still ahead, we're less than 48 hours away from the 137th Rose Parade here in California. We'll have a preview of CNN's live coverage. My co-host for the parade here on CNN, Coy Wire, who actually played in the Rose Bowl game himself, will join me next to talk about that experience and what you can expect here live on CNN.
(COMMERCIAL BREAK)
ELEX MICHAELSON, CNN ANCHOR: Preparations are happening right now, 24 hours a day, getting ready for the Rose Parade. Thirty-eight floats set to take center stage for the world.
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And for the first time ever, you can watch the Rose Parade right here on CNN with me and our very own Coy Wire, co-hosting the event live from Pasadena, right before he gets on a plane to come out here.
Coy Wire joins us now from Atlanta. Coy, great to be co-host with you. COY WIRE, CNN SPORTS: I am so excited. I have my bags packed, ready to
come see you my friend. I am more excited than my two tiny daughters who got Labubus for Christmas. And if you don't know what Labubu are, don't worry about it. If you do, you know what I'm talking about.
MICHAELSON: Yes.
WIRE: Elex, I'm so pumped, because I grew up watching this as a kid with my parents, and of course, the legendary football games that ensued at the Rose Bowl and, eventually, playing in the Rose Bowl in a previous life.
We are going to have so much fun embracing the rich history of this parade, chatting with you about the spectacle as it passes us by. I'm so thrilled that you are my teammate for this. I didn't know you grew up going to it.
MICHAELSON: Yes.
WIRE: How far back do you go with the Rose Parade?
MICHAELSON: Well, I was there as a kid. I used to go out there. I remember seeing what it was like from the grandstands. I think I went to one of the very few times when it rained, too. So, I know --
WIRE: Right.
MICHAELSON: -- it's supposed to rain, potentially, this year.
We've got some video of -- of all the preparations and everything that's happening. And we're talking about here, 38 different floats. Plus, we're talking about marching bands from around the world are going to be a part of this: 19 different. You know, here's some of the preparations that are underway now.
And it's really a festival. And for people that haven't seen it before, it is -- it is amazing because every single inch of each one of these floats has to be covered with natural materials. It's a 14- month process of getting these things. They're already starting to work on next year's floats before this thing even happens.
And when you see it in person, it's spectacular. And the smell also, Coy, is spectacular.
WIRE: Yes, I'm going to bring my nasal spray, because I do have a thing with allergies at times, but it will be well worth it.
Elex, you mentioned the months and months and months of preparation. And dating back to 1890, this parade was originally intended to draw people to come visit the great left coast. Sunny California all year long, even January.
And so, it is funny that this year, there is a slight chance of rain. And by slight, I mean, I think it's, like, 100 percent chance of rain. It's rained 11 times in the history of these 136 previous parades. "L.A. Times," I believe, reports that the last time it happened, five of the floats broke down. But that will just mean more fun for you and me.
MICHAELSON: It's more -- more unpredictable. Yes. The last time it rained was 20 years ago in 2006, which I think was the year that my Trojans lost to Texas in the Rose Bowl game, which I went to, and which was horrible to be at as a Trojan fan.
But you had a better experience. Talk to us about your experience playing in the Rose Bowl game.
WIRE: Yes. Elex, when I tell you it was a dream come true, it was. I literally dreamed of playing in that game as a kid, as the legendary commentator Keith Jackson would say, the granddaddy of them all. I dreamed of hearing him say that and say my name on TV one day. And man, it came true.
I went to Stanford and the mighty, mighty Cardinal won the PAC 10 championship, played in the 2000 Rose Bowl when I was a freshman.
[00:35:04]
We got to spend an entire week in L.A. Felt like being in Hollywood, because we were. We got to hang out on Sunset Boulevard. We went to Disneyland.
And being a young kid from Pennsylvania, it was unlike anything I could have ever imagined. We met the Rose Court. The Rose Queen that year was Sophia Bush --
MICHAELSON: Wow.
WIRE: -- now known for her roles in "One Tree Hill" and "Chicago P.D."
And what was that legendary steakhouse we went to that is kind of --
MICHAELSON: Lawry's. Lawry's.
WIRE: Did you see that hair, by the way? Lawry's. We did that.
MICHAELSON: Lawry's, for the Big Bull (ph).
WIRE: Biggest steaks I've ever seen in my life, to this day.
We played the Big 10 champions, Wisconsin, and they had a running back by the name of Ron Dayne, the Heisman Trophy winner. Fortunately, I was not playing defense at that time. He ran for 200 yards.
I was a freshman playing running back and --
MICHAELSON: Yes, but you got this ring.
WIRE: Yes, and there it is, baby. This is the first time I've put this ring on in a quarter century, Elex, just for you.
MICHAELSON: Still fits?
WIRE: I'm knocking the dust off.
MICHAELSON: Still fits?
WIRE: It still fits, and I'm going to bring it along. It'll be one of your -- you have two co-hosts. You have me and this huge thing that's very heavy.
Ask me how many yards I ran for in that -- that Rose Bowl.
MICHAELSON: How much?
WIRE: Which I led my team in rushing, by the way.
MICHAELSON: How many yards?
WIRE: Six yards. Not 60. Not 16. Six. Goes without saying.
MICHAELSON: Six more than me, though. So, there you go.
WIRE: There we go.
MICHAELSON: So, that's impressive. You think about that as -- that is an amazing experience that -- that you had. I don't know what was more impressive, the hair or the muscles. Both of them were quite something in those pictures.
WIRE: Definitely the hair. I envy you. I -- people say I look like a young Elex Michaelson. But look at that. Look at that flow. I mean, that's almost as good as yours.
MICHAELSON: Yes. Let's talk about -- about this year's game, since we've got our sports analysts with us.
We've got Alabama, Kaitlan Collins' team. Roll Tide, roll. And then the most unlikely --
WIRE: Yes.
MICHAELSON: -- unbelievable story in all of sports, the Disney movie season of Indiana.
WIRE: That's it. I love this matchup. The mighty Alabama, one of the crown jewels in all of football. The long history of domination with Nick Saban and, et cetera.
Against Indiana. The basketball school. They've lost the second most games of any team in college football history. But this is clearly not the same Indiana anymore. They are favored over Alabama by nearly a touchdown. They are the best story in football. As you mentioned, a team overlooked, kicked to the curb. Underdogs who turned into a force of nature, including quarterback Fernando Mendoza.
He is a unicorn. The Heisman Trophy winner, first time ever for Indiana. Graduated high school with a 5.2 GPA. I mean, this is a guy who originally went to Cal, interned at a real
estate firm, got admitted to Haas Business School, would wake up at 5:30 in the morning, do football, do classes, then go to work, then come back and study more film.
Graduated business school, went to Indiana, and here he is now. He's leading the school to the college football playoffs as the No. 1 seed in the entire playoff. It's really impressive.
I'm so excited that we get to kind of help start that game, that epic matchup we'll see.
MICHAELSON: Yes. And during the parade, their bands will be part of it. They'll have floats for the schools.
So, who wins the Rose Bowl game?
WIRE: The Rose Bowl game -- well, the Rose Bowl Parade, you and I win the day. How lucky are we?
I'm going with Indiana. I'm going with Indiana. Their coach, Curt Cignetti, formerly of James Madison University, transformed the Hoosiers from this bottom feeder to the Big 10 champions. He may be the greatest life coach on the planet. He has those guys rocking and rolling, playing like a bunch of pit bulls on Red Bull.
MICHAELSON: Let's hope so, because that is a hell of a story, I.U.
And we're excited to see you again. The Rose Parade airs here on CNN for the first time in 137 years, and it starts on New Year's Day, 8 a.m. here on the West Coast, 8 to 10 a.m.
On the East Coast, it's 11 a.m. to 1 p.m.
Coy and I will both be there, rain or shine. Packing a poncho. Coy, thank you so much.
WIRE: Yes, sir.
MICHAELSON: We'll see you soon.
WIRE: I'll see you, buddy.
MICHAELSON: More of THE STORY IS right after this.
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[00:43:32]
MICHAELSON: THE STORY IS tech. The conversation around artificial intelligence seems to be working its way into just about every aspect of our daily lives.
A.I. now impacting government policies, rippling through the job market, even playing an active role in many classrooms and relationships. Millions of users are also regularly interfacing with products like
OpenAI's ChatGPT or Google's Gemini, reshaping our approach to the Internet and social media.
Software company Zapier is out with their forecast for the new year. According to them, 71 percent of business leaders say A.I. will reshape teams through redeployment or hiring, not reduction.
Sixty-five percent plan to hire or embed an A.I. automation specialist by 2026, and 46 percent plan to tie pay and promotions to A.I. fluency next year.
For more on what lies ahead for A.I. in the new year, I am joined by Wade Foster, who is the co-founder and CEO of Zapier.
Wade, welcome to THE STORY IS for the first time.
WADE FOSTER, CO-FOUNDER/CEO, ZAPIER: Yes, thanks for having me, Elex.
MICHAELSON: So, what does Zapier actually do?
W. FOSTER: Zapier is the most connected A.I. orchestration platform we integrate, with all the business tools you have, to help you build automated workflows.
MICHAELSON: So, what does that actually mean in layman's terms?
W. FOSTER: Well, if you're a sales rep, and you need a daily brief for every customer you're talking to in a day, we'll help integrate with your CRM, your calendar, your email tool, and deliver a perfectly customized daily brief, as if you had a -- the world's best assistant sitting next to you, helping you do that every single day.
[00:45:16]
MICHAELSON: There's a lot --
W. FOSTER: So, that's one example of a simple workflow you can build.
MICHAELSON: There's a lot of people that hear A.I., and they -- and the concept of streamlining workflows. And that means, could my job be eliminated? What do you say to those people or critics that say what you're doing is eliminating jobs?
FOSTER: Most commonly, we're eliminating tasks, not jobs. A.I. is doing a good job at helping you tackle those mundane, messy tasks that you have, freeing you up to do more things.
In fact, there was a survey by the World Economic Forum that cited A.I. is going to have 170 new -- million net new jobs created between now and 2030. Yes, some will be displaced, but more jobs will be created in the process.
MICHAELSON: Some of those tasks, some of those more entry-level tasks, are things that college grads do when they come right out of school. Is there a concern that entry-level jobs are going to kind of go away? W. FOSTER: I think entry-level jobs will change. What it means to be
entry-level will look different as the technology shifts. And our education systems will adapt to that. We'll train them on the new entry-level job.
MICHAELSON: It's crazy how much progress A.I. made in this last year. This really was the year of A.I., which is why "TIME" put on their cover, you know, people behind A.I. as the People of the Year.
What's coming in 2026? How is this going to look different next year, compared to this year?
W. FOSTER: I think 2025 was the year of everyday A.I., and what I mean by that, it's tools like ChatGPT or Copilot or Gemini, where everyone at work had access to one of these chatbots, these assistants that could help them tackle various tasks they had on a day-to-day basis.
2026, this is the year of transformative A.I. This is where entire workflows look very different than they did before, because A.I. is now stretching across teams and departments, rather than just an individual assistant.
MICHAELSON: So, what's like a specific example of what that looks like?
W. FOSTER: Well, today, you might have -- in a typical sales process, you might have a person who does outbound research to potential clients. Then you'll have an A.E. that will talk to the customer and specialize in closing them. And then that gets handed off to an implementation specialist.
And all through that process, you have data moving through multiple different systems. And each time there's a handoff, there's often data that's lost. And the result is a poor customer experience.
But when you're able to use transformative A.I., you can, in effect, make sure that those data handoffs are very smooth, so that no matter who in your company is talking to the end customer, they have the exact context they need, so the customer gets a better experience. And that type of transformative A.I. is coming in all aspects of industry.
MICHAELSON: So, there's a lot of people watching this that don't like change or that are scared or skeptical of A.I. as a concept. What's your advice to those people?
W. FOSTER: I love putting people through A.I. workshops, because you find folks come in with some nervousness.
But as soon as they put their hands on the keyboard and start experiencing the technology, they get a feel for its power and its wonder -- what is incredible about what it can do -- but also its limits.
And when you feel its limits, you also start to realize where you can play a role in the future. And so, that is one of the most exciting ways to get people thinking about the possibilities, instead of nervous about the change.
MICHAELSON: Wade Foster from Zapier, which I think makes you happier. At least that's what I've been told. And joining us live from Missouri late tonight. Thank you so much, Wade. Really appreciate it.
W. FOSTER: Thank you.
MICHAELSON: Now to a really sad story. The Kennedy family, of course, often described as America's version of royalty, but they've known more than their fair share of heartbreak and grief. And now there is more on that front.
Tatiana Schlossberg, the granddaughter of President John F. Kennedy, died Tuesday at just 35 years old. Her death came weeks after she announced that she had been fighting a rare version of leukemia. Tom Foreman has our look back.
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TOM FOREMAN, CNN CORRESPONDENT (voice-over): Tatiana Schlossberg had reason to think she would survive when, just after the birth of her daughter in 2024, doctors diagnosed her with leukemia. She was only 34, active, outgoing.
"I did not, could not believe that they were talking about me," she would write in "The New Yorker." "I had swum a mile in the pool today before, nine months pregnant. I wasn't sick. I didn't feel sick. I was actually one of the healthiest people I knew."
[00:50:04]
TATIANA SCHLOSSBERG, JFK'S GRANDDAUGHTER: Hi, I'm Tatiana Schlossberg.
FOREMAN (voice-over): She was an accomplished environmental journalist, already the busy mom of a young boy, and she was the daughter of Caroline Kennedy, the only surviving child of President John F. Kennedy and first lady Jackie.
Schlossberg accepted the pedigree but charted her own course.
SCHLOSSBERG: I'm always so surprised that people I don't know want to listen to me talk.
FOREMAN (voice-over): Indeed, when her mom's cousin, Robert F. Kennedy Jr., rose in the Trump administration as secretary of Health and Human Services, she called him flatly unqualified and criticized his cuts to research, especially for cancer.
"Suddenly, the healthcare system on which I relied," she wrote, "felt strained, shaky."
DOUGLAS BRINKLEY, AUTHOR & HISTORIAN: She laid it out there for the ages, and it's a testimonial to her dissent about what RFK Jr. is doing in the medical arena.
FOREMAN (voice-over): Although her specific illness is most often seen in much older people, chemotherapy, transfusions. Nothing could stop it in this young woman.
Against the backdrop of her family's long history of assassinations, accidents, and death, she wrote, "For my whole life, I have tried to be good, to be a good student and a good sister and a good daughter, and to protect my mother and never make her upset or angry. Now I have added a new tragedy to her life, to our family's life, and there's nothing I can do to stop it."
Schlossberg worried about her own children being so very young. "My son might have a few memories, but he'll probably start confusing them with pictures he sees or stories he hears. I didn't ever really get to take care of my daughter. I don't know who, really, she thinks I am and whether she will feel or remember, when I am gone, that I am her mother."
While the rest of her family, upon her death at the age of 35, issued a statement saying simply, "Our beautiful Tatiana passed away this morning. She will always be in our hearts."
Tom Foreman, CNN, Washington.
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MICHAELSON: Tatiana Schlossberg is survived by her husband, her 3- year-old son, and her 1-year-old daughter. As we said, she was just 35 years old.
We'll be right back.
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WILL RIPLEY, CNN INTERNATIONAL CORRESPONDENT: Hello? Hey, Kristie.
KRISTIE LU STOUT, CNN INTERNATIONAL CORRESPONDENT/ANCHOR: Hey, will, I need your help for CNN New Year's Eve, live in Asia.
STOUT (via phone): Fly out and do the show together --
STOUT: -- live from Bangkok.
RIPLEY: Bang what?
STOUT: Bangkok. We'll have a CNN fan zone, live games.
RIPLEY: Who knows my name?
STOUT (via phone): Will, we are on. I'll see you in Bangkok, and bring a tuxedo. It's happening.
RIPLEY: Did she just say what I think she said?
ANNOUNCER: Join Kristie Lu Stout and Will Ripley, live from Bangkok with celebrations in every city at midnight. New Year's Eve on CNN.
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MICHAELSON: Of all cities in the world, that was very interesting that that was the one they chose to highlight in terms of pronouncing.
In just a few hours from now, countries around the world, including Bangkok, will start saying hello to 2026. Preparations are underway in London for a fireworks display on the River Thames. Some fireworks will even shoot out of the city's famous giant Ferris wheel, known as the London Eye.
The man in charge of preparing the display explained just how big it will be.
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DARRYL FLEMING, DIRECTOR, TITANIUM FIREWORKS: Yes, so, this is our 16th year delivering the mayor of London's fireworks show for the midnight moment on New Year's Eve.
And we've got an awful lot of fireworks, nearly 10,000 fireworks spread over the three barges that we're rigging here today. And then, there's nearly 2,000 on the London Eye, which we can't rig until about 6 p.m. in the evening on the 31st itself.
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MICHAELSON: So, that guy is very British. Now, we take you to somebody who is very Scottish. CNN's Max Foster finds out about the tradition of wearing a proper kilt on New Year's Eve.
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MAX FOSTER, CNN INTERNATIONAL CORRESPONDENT: Howie.
HOWIE NICHOLSBY, KILT MAKER, 21ST CENTURY KILTS: Max.
M. FOSTER: You've got some fabric here.
NICHOLSBY: Yes.
M. FOSTER: How much do you need for kilt?
NICHOLSBY: Well, it's 7.3 meters; eight yards.
M. FOSTER: All of this.
NICHOLSBY: All of this is what I'm wearing in one kilt.
M. FOSTER: Just explain where all the fabric goes, then.
NICHOLSBY: All the fabric goes into the pleats. There's over 30 pleats here, and it has to recreate the pattern. And it's fully hand- stitched. The only part of this kilt machined is the waistband.
M. FOSTER: Yes.
NICHOLSBY: So, when you're wearing it, you still get that swing and that masculine feeling. But it's not a woman's skirt. It's made for a man.
M. FOSTER: So, when someone flies in from another part of the world, is it acceptable for them to wear the tartan?
NICHOLSBY: Absolutely. It's all about how you feel mentally and physically in a kilt. You've got to feel confident.
M. FOSTER: So, you showed how much fabric was used. So, it's a lot of fabric. It gets heavy. But weirdly, when you wear them, it doesn't feel heavy. What's -- what's the secret?
NICHOLSBY: You've got to adjust -- you've got to adjust a little bit? The weight of the kilt is very proportioned around the body.
M. FOSTER: Yes.
NICHOLSBY: I want people to enjoy wearing a kilt, so it has to be comfortable and shaped to the body.
M. FOSTER: And the length?
NICHOLSBY: The length is personal preference. Now, I measure from the pelvis to the kneecap, top of the kneecap. And that's where Queen Victoria liked it. And that's where it should be worn for formal wear.
M. FOSTER: Why did she like that?
NICHOLSBY: She liked to see the men's -- soldiers' knees.
M. FOSTER: This is what people will recognize. The sporran.
NICHOLSBY: Yes. This is Gordon Winkleman (ph).
M. FOSTER: And what was the thinking behind the sporran?
NICHOLSBY: Well, the sporran was a pouch originally. And when it became more military, they were long-haired like this and were centralized.
French royalty were wearing it. They were worried about a man being aroused. So, the sporran got put in the middle.
