CIA Whistleblower Drops COVID Bombshell & Vance Freezes Fraud Funds | 5.14.26

Summary

Morning Wire Podcast Summary
Episode: CIA Whistleblower Drops COVID Bombshell & Vance Freezes Fraud Funds | 5.14.26
Air Date: May 14, 2026
Hosts: Georgia Howe, John Bickley
Guests: Cabot Phillips, Tim Rice, Ben Domenech

---

Episode Overview

This episode centers on three major developing stories:

• Explosive testimony from a CIA whistleblower alleging a COVID-19 lab leak cover-up at the highest levels of government;
• Vice President J.D. Vance’s aggressive steps to freeze over $1 billion in federal spending due to health care fraud, particularly in state Medicaid programs;
• President Trump’s high-stakes diplomatic visit to Beijing for talks with President Xi Jinping, focusing on technology, trade, and geopolitics.

---

Key Discussion Points & Insights

1. CIA Whistleblower Alleges COVID-19 Cover-Up

Segment Start: [03:20]

• Testimony Overview:

  • In a Senate hearing, a CIA whistleblower, James Erdman, claimed that Dr. Anthony Fauci deliberately influenced the US intelligence community to suppress the lab leak theory of COVID-19's origin.
  • Erdman stated that by summer 2021, significant evidence supporting a lab leak existed, but Fauci intervened, steering analysis away from it.
  • Dr. Fauci is accused of leveraging his authority to ensure only select, “conflicted” experts were consulted, curating the findings presented to the public.

• Notable Quotes:

  • James Erdman:
    “Dr. Fauci's role in the COVID up was intentional. Dr. Fauci influenced the analytical process and findings by leveraging his position to ensure the [intelligence community] consulted with a conflicted list of curated subject matter experts, public health officials, and scientists.” ([04:48])
  • Senator Rand Paul:
    “The carelessness of Anthony Fauci in all likelihood led to this pandemic. That 15 million people died and still there hasn't been responsibility.” ([06:00]) “We've never had a pardon challenged in court where the pardon was given for a 10 year period of time with no crime specified. It's kind of hard to imagine a pardon so broad… I think it could be challenged in court.” ([06:56])

• Political Fallout:

  • Not a single Democrat attended the hearing, highlighting the partisan divide over the pandemic’s origins.
  • President Biden's blanket pardon of Fauci (covering 2014–2025) may face legal challenges spearheaded by Senator Paul.

• CIA’s Response:

  • The CIA denounced the hearing as “dishonest political theater” ([07:17]), but did not directly refute Erdman's allegations.
  • Georgia Howe notes, “So not actually refuting what he said, but they don't really like being painted as the bad guy here.” ([07:46])

---

2. VP J.D. Vance Freezes $1B+ in Health Fraud Funds

Segment Start: [09:00]

• Background:

  • New investigative reports (led by Luke Rosiak) exposed systemic fraud in Medicaid and Medicare, particularly in Ohio.
  • The Trump administration moved swiftly, suspending Medicare home health programs while an investigation unfolds.

• Federal vs. State Authority:

  • Medicare (federal): Programs can be directly suspended.
  • Medicaid (state-administered, federally funded): The federal government can defer reimbursements but not directly shut down programs.
  • Tim Rice: “This is a serious threat … until you start taking fraud seriously, we're not going to reimburse you.” ([10:32])

• Key Actions:

  • Deferred $1.3B in Medicaid reimbursements to California as a penalty and warning to other states.
  • Nationwide letters sent to all 50 state Medicaid programs, announcing impending fraud control investigations, with potential for penalties if states do not comply.

• State-by-State Response:

  • Red states like Ohio acknowledged problems; Vance cited Ohio as an example where fraud can happen in any state.
  • Blue states were described as more likely to ‘turn a blind eye.’
  • Indiana: Four times as many fraud indictments as New York, despite a much smaller program.
  • New York: Only nine fraud claims last year in a $100B program.
  • California: Dr. Oz noted that a third of all hospice providers in the US are in Los Angeles, with about half being fraudulent; 800 clinics were shuttered, but only 20 appealed.

• Notable Quote:

  • Tim Rice: “Of those 800 [hospice clinics], only 20 appealed the decision. The other 780 just said all right and went home.” ([13:18])

---

3. Trump–Xi Beijing Summit: Stakes and Expectations

Segment Start: [14:08]

• Focus Areas:

  • US priorities: high-level prisoner releases (e.g., Jimmy Lai), AI and semiconductor trade, managing broader regional conflicts (especially over Iran and Taiwan).
  • China’s goals: Leverage in negotiations, energy security, expansion of regional influence, and deals on tech.

• Negotiation Dynamics:

  • Despite headlines that “Xi holds all the cards,” guest Ben Domenech notes that China faces internal weaknesses:
    • Untested military
    • Economic slowdowns and downward revisions
    • Energy constraints
  • Trump is expected to push hard for US interests, particularly on trade and technology, and avoid any outcome that cedes Indo-Pacific dominance to China.

• Notable Quotes:

  • Ben Domenech: “China views things in much longer terms than just the cycles of election years.” ([15:03])
  • “I think President Trump is actually going to go in with a pretty tough attitude towards the Chinese. ... he doesn't want to be viewed as being someone who in any way, you know, bent over for the priorities of the Red Chinese.” ([16:33])

• Possible Outcomes:

  • Potential for deals on prisoner release or tech (AI, chips).
  • Trump unlikely to make concessions that would enhance Chinese dominance in the Indo-Pacific.

---

Memorable Moments & Quotes

• Rand Paul on Fauci Pardon: “It's kind of hard to imagine a pardon so broad that it encompasses any crime.” ([06:56])
• CIA Statement: “This hearing … amounts to nothing more than dishonest political theater masquerading as a congressional hearing.” ([07:17])
• Data on Hospice Fraud: “One third of all hospice providers in the United States are located in the Los Angeles area ... about half are fraudulent.” ([12:54])
• On China: “Xi does not actually hold all the cards here.” ([16:24], Ben Domenech)

---

Timestamps for Major Segments

• [03:20] – CIA Whistleblower testimony and analysis
• [09:00] – Vice President Vance’s anti-fraud crackdown
• [14:08] – Trump-Xi Beijing summit breakdown

---

Summary Takeaways

Morning Wire reports on significant government transparency and accountability developments—from whistleblower allegations about a COVID cover-up implicating Dr. Fauci and intelligence agencies, to sweeping federal actions against health care fraud led by VP J.D. Vance. The episode closes with a comprehensive outlook on US–China relations as President Trump meets President Xi Jinping, with implications for technology, trade, and global security.

Listeners are left with major questions about pandemic accountability, the future of federal-state relations in health care law enforcement, and whether Trump’s negotiation tactics will shift the balance of power with China.

Transcript

[Ryan Reynolds]

Ryan Reynolds here from Mint Mobile with a message for everyone paying big wireless way too much. Please, for the love of everything good in this world, stop with Mint. You can get premium wireless for just $15 a month. Of course, if you enjoy overpaying, no judgments. But that's weird. Okay, one judgment anyway. Give it a [e-mail] Switch upfront payment

[Georgia Howe]

of $45 for 3 month plan equivalent to $15 per month required intro rate first 3 months only, then full price plan options available, taxes and fees extra.

[PureTalk Spokesperson]

See full [e-mail] paying 70 plus dollars a month for wireless. That doesn't make any sense. It's overpriced. It's unnecessary. Here is the reality. My wireless company, PureTalk offers unlimited high speed data for just 34.99amonth. That is a gigantic difference. You're getting the same core service without the bloated price tag. And the same plan used to cost more.55 bucks. But PureTalk keeps pushing to give you more for less. We love PureTalk over here. I use it, my family uses it. Try it for 30 days. No contract, no cancellation fees. Switching only takes about 10 minutes. Head on over to PureTalk.com Shapiro make that switch. Save money, keep your service. It's that simple. PureTalk.com Shapiro.

[Georgia Howe]

A CIA whistleblower testifies about a Covid cover up at the highest levels of the federal government.

[CIA Whistleblower (James Erdman)]

Public health policy would have been very different had the American public been made aware that a virus from a lab in China was going to serve as the foundation for an emergency use authorization MRNA products.

[Georgia Howe]

I'm Georgia Howe with Daily Wire Executive Editor John Bickley. It's Thursday, May 14th, and this is Morning Wire.

[Daily Wire Host]

Vice President Vance announces a major crackdown on fraud, freezing a billion dollars in spending after a series of explosive investigations.

[Ryan Reynolds]

We want to protect Medicaid.

[Tim Rice]

We want to protect Medicare.

[Ryan Reynolds]

But we can't do that if the states that are administering those programs are allowing programs to be fleeced by fraudsters.

[Georgia Howe]

And all eyes on Beijing as President Trump faces off with Xi Jinping.

[Ryan Reynolds]

It's both our top political challenge geopolitically and it's also the most important relationship for us to manage.

[Daily Wire Host]

Thanks for waking up with Morning Wire. Stay tuned. We have the news you need to know.

[Vanta/ZipRecruiter Advertiser]

No, it's not your imagination. Risk and regulation are ramping up and customers now expect tangible proof of security just to do business with you. That's why our sponsor, Vanta, is a game changer. Vanta automates your compliance process and brings compliance risk and customer trust together on one AI powered platform. So whether you're just starting out and prepping for your first SoC2 audit or you're running a full enterprise GRC program with multiple frameworks, Vanta keeps you secure and keeps your deals moving forward. The platform handles the heavy lifting, continuous monitoring, evidence collection, all the tedious stuff that usually eats up your team's time. Companies like Ramp and RYTR spend 82% less time on audits with Vanta, which which means more time to focus on what really growing your business, shipping features and delighting customers. Instead of scrambling to gather evidence or wondering if you're actually compliant, you get real time visibility into your security posture and a clear path to staying audit ready year round. Why wait? Get [e-mail] MorningWire that's vanta.com MorningWire

[Daily Wire Host]

in a Senate hearing Wednesday, a CIA whistleblower testified that Dr. Anthony Fauci intentionally prevented the US intelligence community from releasing evidence in 2021 that COVID 19 leaked from a Chinese lab. Not a single Democrat appeared at the hearing.

[Georgia Howe]

Cabot Phillips, host of Wired in Live, is here with the latest. So Cabot, you got a little heads up from Rand Paul that something like this was coming. First, tell us about that testimony and some of the allegations.

[Ryan Reynolds]

Yeah, many Americans may have moved on from COVID 19, but Republican Senator Rand Paul has been on a warpath for years now, demanding accountability for what he views as a federal cover up. Remember, this all centers on the government's messaging regarding the origins of COVID We all remember in the early days of the pandemic how the medical community led by Dr. Fauci were adamant that the virus came about naturally, likely in their view, from a wet market in Wuhan. Anyone who contradicted that narrative, including us here at the Daily Wire, faced censorship on social media, and we later learned that the White House was colluding with big tech companies in that effort. But on Wednesday, a CIA whistleblower testified before the Senate Homeland Security Committee that the intelligence community led by the CIA was in fact prepared in 2021 to announce that the virus likely did leak from a Chinese lab. However, he alleged to Congress that Dr. Fauci, quote, injected himself into those deliberations and, quote, significantly influenced them, ultimately preventing the IC from taking their findings to the public. Here he is before the committee.

[CIA Whistleblower (James Erdman)]

Dr. Fauci's role in the COVID up was intentional. Dr. Fauci influenced the analytical process and findings by leveraging his position to ensure the I consulted with a conflicted list of curated subject matter Experts, public health officials, and scientists.

[Ryan Reynolds]

That whistleblower, now identified as James Erdman, is an active special operations officer with the CIA. He went on to say that by the summer of 2021, so still very early in the pandemic, the intelligence community was circulating papers suggesting the lab leak theory was plausible.

[Senator Rand Paul]

CIA scientists from an early time after the pandemic began concluding that the lab leak was the most likely hypothesis.

[CIA Whistleblower (James Erdman)]

Yes, senator. For example, Doe circulated a paper in May of 2020 that said that all the conditions were present for a lab leak. But yes, My short answer is yes, periodically throughout 2020, all the way to

[Ryan Reynolds]

2024 and Georgia, as you mentioned at the top, Senator Paul did come on my show, Wired in live ahead of that hearing and told me that he believes Dr. Fauci and others in the federal government intentionally suppressed this evidence of a lab leak to hide evidence that the US had funded gain of function research in China and elsewhere.

[Senator Rand Paul]

The report was written at 2 in the morning. Someone scribbled out no and ended up switching the report to say instead of that it came from lab, that it came from nature. The carelessness of Anthony Fauci in all likelihood led to this pandemic. That 15 million people died and still there hasn't been responsibility. There are people within the swamp, that is the CIA over there, that are still motivated not to reveal this.

[Ryan Reynolds]

Now, more broadly, this hearing and others before it are part of a bigger effort from the GOP and Senator Paul in particular, to bring justice to those who they allege lied to the American people and potentially broke the law in covering up evidence that they say did not fit their narrative. And it's worth noting President Biden did offer Dr. Fauci a blanket pardon in his final hours in office. That pardon covers any potential offenses committed between 2014 and 2025. However, Senator Paul told me that he plans to try and overturn that pardon. Have a listen.

[Senator Rand Paul]

We've never had a pardon challenged in court where the pardon was given for a 10 year period of time with no crime specified. It's kind of hard to imagine a pardon so broad that it encompasses any crime. So I think it could be challenged in court.

[Daily Wire Host]

So what have we heard from the CIA? Had they actually responded to this testimony? Yeah, they have.

[Ryan Reynolds]

And the agency typically is not exactly quick to comment on things like this, but they offered a forceful statement on Wednesday claiming that Senator Paul and the committee, quote, acted in bad faith by subpoenaing an agency officer for testimony today without notifying the CIA. They went on to claim that this Hearing, quote, amounts to nothing more than dishonest political theater masquerading as a congressional hearing. As the CIA has already assessed, COVID 19 most likely originated from a lab leak, and efforts to undermine that conclusion are disingenuous.

[Georgia Howe]

So not actually refuting what he said, but they don't really like being painted as the bad guy here.

[Ryan Reynolds]

Yeah, they were not happy, clearly.

[Georgia Howe]

All right. Well, Cabot, thank you so much for reporting.

[Ryan Reynolds]

Absolutely.

[Vanta/ZipRecruiter Advertiser]

As the weather warms up, we all start spending more time outside, and that usually means the hose comes out. Weekends turn into watering the garden, washing the car, cleaning off the patio, or trying to give the dog a bath that somehow turns into a full backyard event. So having a hose that actually works makes a big difference. We're excited to tell you about the world's number one expanding garden hose and their brand new product, the pocket hose ballistic. We've all dealt with the usual problems, kinks, tangles, dragging a heavy hose across the yard, fighting with it the whole way. This one is designed to fix that. It's reinforced with a liquid crystal polymer, the same material used in bulletproof vests. So it's built to last through all of it. It's also lightweight and easy to use. And the pocket Pivot gives you 360 degree rotation at the spigot, so the hose moves with you instead of just getting twisted up. It makes all those outdoor chores a little easier and a lot less frustrating. And now for unlimited time, when you purchase a new pocket hose ballistic, you'll get a free 360 degree rotating pocket pivot and a free thumb drive noz. Just text morning to 64,000. That's morning to 64,000 for your two free gifts with purchase text morning to 64,000. Message and data rates may apply.

[Daily Wire Host]

Vice President J.D. vance is freezing more than 1 billion in federal spending after a series of reports exposing potential health care waste and fraud in his home state of Ohio.

[Georgia Howe]

Joining us now is Daily Wire D.C. bureau Chief Tim Rice. Tim, thanks for coming on.

[Tim Rice]

Thanks for having me. Georgia.

[Georgia Howe]

So we didn't think that it would take the vice president long to respond to some pretty stunning evidence that our own Luke Rosie published detailing abuse and negligence, if not outright fraud, going on in his home state of Ohio. But now he's making some very aggressive moves here. What steps is he taking to crack down on fraud?

[Tim Rice]

So there was obviously this huge press conference that the vice president had, along with FTC chairman Andrew Ferguson and Dr. Oz, who runs the Centers for Medicare and Medicaid Services. But let's Take a step back because even before this press conference, the White House announced early yesterday morning that they were suspending Medicare home health programs until they could figure out what was going on with this fraud. Now, I did not misspeak there. I said Medicare, not Medicaid. Luke Rosiak, our colleague, has reported on Medicaid fraud. Medicaid is a jointly administered program between the federal and state governments that serves poor people. Right. Lower income, you know, indigent populations. It is administered by states jointly funded by the federal government. State governments. So the federal government can't just shut down Medicaid programs because technically they're state run programs. What they can do is they can act unilaterally in Medicare, which is the government run health care for elderly Americans, which is entirely federally controlled. So the Trump administration is really taking a whole of government approach to shutting down the kind of fraud that Luke has uncovered. Now, this brings us to 2pm yesterday, when the Vice President got up to give his remarks, the first thing that he said was that the Trump administration is deferring $1.3 billion in Medicaid reimbursements to the state of California. Right. So this is something that the federal government can do. They can say, well, we can't shut your program down, but until you start taking fraud seriously, we're not going to reimburse you. So this is a serious threat. And it goes really hand in glove with the main thing the Vice President announced yesterday, which is that his new task force, the joint task force within his Office and the FTC are sending letters to all 50 state Medicaid programs saying, we are sending Medicaid fraud control units to your state. We are going to start investigating fraud. If you don't comply, if we find evidence that you have been ignoring fraud, we are going to act. We could penalize you. And now. Right. They're showing right off the bat with California what that penalty will look like. It will look like a sizable cut in what the federal government is paying to these state Medicaid programs.

[Georgia Howe]

Now, which states have shown they are taking action on this.

[Tim Rice]

Sure. So this was a very interesting thing that the Vice President noted. He said, the United States government is generous. We send out hundreds of billions of dollars a week to state Medicaid programs. There are always going to be bad actors who try to take advantage of this. He pointed to his own state of Ohio, a red state, which is where Luke's investigation focused, and said, look, you know, it can happen in my backyard. It can happen in a red state. That said and perhaps unsurprisingly to most of our viewers, it is blue states that seem to have mostly taken turned a blind eye to fraud. Indiana is the state that the vice President really singled out. He said that they logged four times as many fraud indictment indictments in their Medicaid program as New York State, despite having a completely much, much smaller Medicaid program. New York, meanwhile, administers a $100 billion a year Medicaid program. This is New York. This is like, you know, there's certainly crime in New York City. We all know that, organized and otherwise. They only had nine fraud claims in all of last year, nine out of $100 million. As the Vice president said that, you know, those numbers, they defy, you know, logic. The other big state, again unsurprisingly, across the, across the country, is California. Interestingly, Dr. Oz, who was also there at the press conference, as I mentioned, he noted that one third of all hospice providers in the United States are located in the Los Angeles area. Not California, Los Angeles. He said that CMS has estimated that about half of those hospice providers in the LA area are fraudulent, that they have recently shut down 800 of those clinics. And perhaps as a sign that these people were really just running a grift as long as they could. Of those 800, he said, only 20 appealed the decision. The other 780 just said all right and went home.

[Georgia Howe]

Wow. All right, well, Tim, a lot to keep an eye on. Thank you so much for coming on today.

[Tim Rice]

Thanks for having me.

[Vanta/ZipRecruiter Advertiser]

Did you know the average employer gets around 250 resumes for every single job opening? Well, if you're hiring, here's good news. You can now review all these resumes and applications faster thanks to ZipRecruiter. ZipRecruiter has a new feature that instantly shows you the most interested qualified candidates. First, ZipRecruiter makes hiring easier by instantly matching you with qualified candidates. And now with their new feature, candidates who are especially interested in your job automatically appear at the top of your list. So you can connect faster with people who really want the role. Try it for free at ZipRecruiter.com wire

[Georgia Howe]

that's ZipRecruiter.com wire President Trump sits down today in Beijing with President Xi. The two are expected to focus on technology and trade. But geopolitics looms large.

[Daily Wire Host]

Joining us now to discuss is Ben, dominate Daily Wire opinion editor and host of the Big Ben Show. Ben, great to have you back on.

[Ben Dominate]

Great to be with you as always.

[Daily Wire Host]

So we have this very significant Beijing visit taking place right now. President Trump welcomed with a lot of fanfare when he arrived yesterday. And there's certainly a lot to talk about between Trump and the Chinese president. First, what are the priorities for the US Here?

[Ben Dominate]

Well, the United States is interested in a number of different things. First off, we had our own Mary Margaret Olahan ask the other day about the potential release of prisoner Jimmy Lai. Humanitarian concerns are going to be an element of this. But of course, the main thing with this visit is primarily about the economic concerns. China has been racked by a lot of different effects, not just because of the most recent incidents in Iran and the war there, but also because of their various relationships around the globe with Russia, with, you know, in the course of the Ukraine war, and their interests that, frankly, apply to a much more ambitious approach to the world at large. China views things in much longer terms than just the cycles of election years. And because of their priorities in the region, they very much are focused on trying to extract something from the president, potentially on Taiwan, potentially on agreements about ending the Iran conflict in ways that could be beneficial to China, which has been starved when it comes to a lot of their energy sources and an overall approach to the, the Pacific Ocean, where China would like to see their power projected more significantly. All of these are going to be challenges. And, you know, this has been a meeting that was already delayed once because of the Iran conflict and takes on new importance given the number of things that President Trump is juggling when it comes to international affairs.

[Daily Wire Host]

Trump obviously very big on leverage in his negotiation tactics. Generally speaking, who comes in with more leverage into this conversation?

[Ben Dominate]

Well, the general opinion of most analysts, and this is in multiple headlines across the board, is that she holds all the cards. One of the headlines, she's the boss. And that's one of the things that I think you, you know, assume when it comes from the foreign policy blob in D.C. to take with a bit of a grain of salt, she does not actually hold all the cards here. He has a military that is untested. They have, as I said, energy problems. They have internal problems when it comes to the makeup of their people and to the lack of the kind of increases in their own economy that they would have liked to see. They've already had multiple revisions downward in terms of expectations for the coming year. And so I think that President Trump is actually going to go in with a, with a pretty tough attitude towards the Chinese. He wants to have some pretty significant wins coming out of this, and he doesn't want to be viewed as being someone who in any way, you know, bent over for the priorities of the Red Chinese.

[Daily Wire Host]

Yeah. And about that, what are some realistic expectations about what Trump might walk away with from the summit?

[Ben Dominate]

Well, I think one of the big things that a lot of people will be paying attention to on that humanitarian side is whether he can come back with some of these key prisoners who've been much in the news of late. There could be a deal. When it comes to AI and chips, that is something that the Chinese want very much. It is where they are lagging and where they are, frankly, stealing a lot of Western technology. So I think that that's something where you could see, you know, a potential deal that could take place along those lines. But China and Trump have not gotten along at all. I mean, you know, you had all these different crackdowns when it came to, you know, the, the different Confucius Institutes that were in place at various academic institutions across America. You have had the tension there where he obviously blames them for trying to control world trade. I think at the end of the day, the president is going to be reluctant to agree to something that establishes, you know, Xi's dominance over, you know, not just the immediate neighborhood that they have, but what they really want to achieve, which is dominating the Indo Pacific.

[Daily Wire Host]

Well, Trump certainly walking in with a lot of confidence into these negotiations. We'll see if he walks away with the better end of the deal. Ben, thanks so much for joining us.

[Ben Dominate]

Great to be with you.

[Daily Wire Host]

Thanks for waking up with us. The reporting that fuels this show is only possible because of you tuning in every day and because of all of our Daily Wire subscribers.

[Georgia Howe]

To enjoy the show ad free and join our mission, become a [e-mail] we'll be back later this evening with more news you need to know.