Squawk Pod - "AI Standards & Health Care on Capitol Hill"

Date: December 12, 2025
Host: CNBC (Becky Quick, Andrew Ross Sorkin, Mike Santoli)
Guests: Senator Dave McCormick (R-PA), Shriram Krishnan (White House Senior Policy Advisor on AI)

Episode Overview

Today’s Squawk Pod zeroes in on two of Washington’s most contentious and urgent policy fronts: the regulation of artificial intelligence and the ongoing battle over health care subsidies. The episode features insight from the White House’s senior policy advisor on AI, Senator Dave McCormick of Pennsylvania, and CNBC’s anchor team, diving into the political infighting and market ramifications these debates trigger. The episode also touches on the possible federal reclassification of marijuana, shifting investor sentiment, and Wall Street highlights.

Key Discussion Points & Insights

1. Market & Economic Update (02:00–06:50)

• Tale of Two Trades: The markets are cycling from an “AI trade” to a “GDP trade," indicating a shift from tech dominance to broader real-economy sectors like banks and transports.
  • Mike Santoli: "The market has been eager to price in a quicker pace of growth into next year." (02:37)
• Tech Volatility: Broadcom and Oracle earnings spark sector-wide swings, with news that Anthropic placed a $10 billion custom chip order, but skepticism remains over the ability to beat already high expectations.

2. Battle Over Health Care Subsidies (07:11–09:15, 17:44–24:05)

• Senate Deadlock: Attempts to extend expiring Obamacare subsidies have failed amid partisan gridlock and unwillingness to compromise on reforms.

  • Andrew Ross Sorkin: "Both sides walked into this knowing that neither bill would pass with the 60 it needed." (09:15)

• Senator McCormick’s Perspective:

  • Skyrocketing premiums are imminent for millions if subsidies lapse.
  • McCormick labels Obamacare an “abysmal failure,” pointing out the U.S. pays three times more per person for health care than any other nation, yet outcomes lag.
    • Senator McCormick: "Our health statistics are longevity, our lifespan. Infant mortality is terrible relative to other developed countries and still 25 million people don't have access to health care." (21:00)
  • McCormick is open to a short-term bridge with stricter income caps and fraud protections—marks a rare, if partial, bipartisan echo.

• Public Sentiment:

  • McCormick recounts feedback from town halls—health care remains a top anxiety for constituents, with premiums and out-of-pocket costs threatening working families.

Notable Quotes:

• Becky Quick: "It seems like a bit of a cliff to fall off... It’s hard to believe there’s not going to be an extension while reform is taking place." (18:07)

• Senator McCormick: "Even if you're a Republican like I am and think Obamacare was catastrophic... we now have to deal with that problem together as Republicans and Democrats." (21:58)

Timestamps:

• Deadlocked votes and blame game: 07:47–09:15
• Senator McCormick interview: 17:44–29:59

3. AI Regulation: A National Standard vs. State Patchwork (09:15–14:05, 24:05–29:18, 32:05–39:30)

Trump Administration Executive Order

• Action: President Trump has signed an executive order to preempt state-level AI regulation, arguing that a single national standard is critical to US economic and technological competitiveness, especially vs. China.
  • Shriram Krishnan (White House advisor): “There are over a thousand different pieces of legislation in all of the 50 states that are trying to legislate AI… we cannot have the people building AI try and comply with over a thousand laws in 50 states.” (32:55)
• Legal Strategy: The order directs a federal task force to challenge state laws in court and threatens to withhold funding from states that pass their own AI rules.
• Tech Backing: The decision reportedly followed lobbying from Nvidia CEO Jensen Huang, concerned that patchwork rules would hobble US AI leadership.

Resistance from Within GOP

• Major MAGA figures (Bannon, Greene, DeSantis) denounce the executive order as a gift to Big Tech and a blow to states’ rights.
  • Amy Javers: "The move puts the president on the side of the large tech companies and against some of the most visible figures in his own MAGA political movement." (10:42)

Congressional vs. Executive Authority

• Andrew Ross Sorkin: “That national plan should come from Congress... especially when you’re getting into the issue of states’ rights vs. federal government." (26:16)
• McCormick: Acknowledges Congress’s role, but defends the executive order as necessary in a time of accelerated change.

Balancing Act: State Concerns & Federal Policy

• Child Protection and Copyright: Both McCormick and Krishnan clarify that state actions to protect children or handle copyright issues will not be targeted.
  • Krishnan: "Anything to do with kid's safety is absolutely not touched on by this executive order." (34:09)
• Targeted Preemption: Administration especially opposes state AI mandates on DEI requirements or those prone to stifling open source innovation.

Industry Response

• Divided tech sector, with players like Anthropic wary of light-touch regulation, while others (like Andreessen Horowitz) fear "doomer" legislation could choke American AI.
  • Shriram Krishnan: “We are not seeing AI that becomes sentient. There are no signs of that... we come at it from a space of optimism when it comes to AI.” (38:36)

Notable Quotes:

• Unknown business guest: “If they had to get 50 different approvals from 50 different states, you could forget it, because it’s not possible to do, especially if you have some hostile [state].” (10:25)
• Krishnan: “We’re going to be working with Congress in the coming weeks and months to make sure there is a single national framework.” (35:24)

Timestamps:

• Executive order coverage: 09:15–14:05, 32:05–39:30
• Senator McCormick on state vs. federal regulation: 24:05–29:18

4. Other Policy Fronts

Marijuana Reclassification (14:08–15:38)

• President Trump is considering reclassifying marijuana from Schedule I to Schedule III, following a meeting with industry execs, HHS Secretary RFK Jr., and CMS head Dr. Mehmet Oz, despite opposition from Speaker Mike Johnson.
  • Mike Santoli: “You see the reflex move in a lot of these cannabis stocks, which always trade as just kind of lottery tickets.” (15:04)

Notable Quotes and Memorable Moments

With timestamps (MM:SS)

• On AI National Standards:
  • Shriram Krishnan: "Right now there are over a thousand different pieces of legislation in all of the 50 states that are trying to legislate AI." (14:14 and 32:55)
  • Unknown business guest: "If they had to get 50 different approvals from 50 different states, you could forget it, because it’s not possible to do." (10:25)
  • Amy Javers: "The president’s executive order will create an AI task force that’s going to challenge and try to strike down any state laws in court..." (09:44)
• On Health Care Reform:
  • Senator McCormick: "We pay three times per person for health care than any other country in the world." (15:50, repeated at 20:59)
  • Becky Quick: "It’s hard to believe there’s not going to be an extension while that reform is taking place." (18:07)
  • Senator McCormick: "Even if you’re a Republican like I am and think Obamacare was catastrophic... we now have to deal with that problem together." (21:58)
• On Marijuana Reclassification:
  • Mike Santoli: “You see the reflex move in a lot of these cannabis stocks, which always trade as just kind of lottery tickets.” (15:04)
• On Administrative vs Legislative Power:
  • Andrew Ross Sorkin: “That national plan should come from Congress... especially when you’re getting into the issue of states’ rights vs. federal government." (26:16)
• On Industry Impact:
  • Shriram Krishnan: “We want American AI to win... AI is probably powering the U.S. economy... up to 2% of our GDP growth is coming from there.” (38:36)

Segment Timestamps for Quick Reference

• 02:00–06:50: Market update, Broadcom/Oracle earnings, sector rotation
• 07:11–09:15: Senate "Obamacare cliff" & failed negotiations
• 09:15–14:05: AI executive order, political friction
• 14:08–15:38: Marijuana reclassification news
• 17:44–29:59: Senator McCormick on health care, AI regulation, energy/innovation issues
• 32:05–39:30: Shriram Krishnan White House AI policy interview

Tone & Color

The tone is assertive with sharp exchanges between journalists, policymakers, and industry voices. There’s skepticism about policymaker intentions on both health care and AI, with frustration directed at partisan gridlock, the limits of executive power, and the enormous stakes for the broader economy. Both hosts and guests display urgency—especially around the speed and consequences of current U.S. policy decisions.

Summary Takeaway

Today's Squawk Pod exposes the growing pains and political gridlock of regulating technology and health care in America. With the Trump administration racing to centralize AI rules and the Senate deadlocked over health subsidies, the show spotlights both the risks of policy stalemate and the pressure to act amid rapid economic and technological change. Repeatedly, the conversation returns to the tension between state flexibility and federal coordination—a theme of growing consequence for American society, business, and the global race for innovation leadership.