State of the Union Digest: Dr. Mehmet Oz & Rep. Gottheimer (D-NJ) 2/25/26

Summary

Squawk Pod: State of the Union Digest — Dr. Mehmet Oz & Rep. Josh Gottheimer (D-NJ)

Date: February 25, 2026
Hosts: Joe Kernan, Becky Quick, Andrew Ross Sorkin
Guests: Eamon Javers, Rep. Josh Gottheimer (D-NJ), Dr. Mehmet Oz

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Episode Overview

This episode dissects President Trump’s historic, nearly two-hour State of the Union address, focusing on economic policy, affordability, pharma reforms, and polarization in American politics. The hosts are joined by CNBC’s Eamon Javers for a play-by-play, New Jersey Democrat Rep. Josh Gottheimer for the Democratic perspective, and Dr. Mehmet Oz, head of Medicare & Medicaid, for insights on pharmaceutical pricing and healthcare policy.

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Key Segments & Insights

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1. President Trump’s State of the Union: Tone, Content, and Theatrics

With Eamon Javers
Timestamps: 03:01–11:59

• Historic Length and Mood:

  • President Trump’s address was the longest ever, described as “aggressive and confrontational toward Democrats” but also “charming and endearing” at moments.
  • Notable moments included honoring the U.S. men’s Olympic gold hockey team and awarding two Congressional Medals of Honor (04:00–04:21, 06:38–08:17).

• Economic Boasting and Tariffs:

  • The President touted a “booming economy” and signaled defiance after the Supreme Court struck down part of his signature tariff plan:

    “The good news is that almost all countries and corporations want to keep the deal that they already made… knowing that the legal power that I as president have to make a new deal could be far worse for them...” — President Trump, quoted by Eamon Javers (03:55)

• Retirement Savings Proposal:

  • Proposed extending the federal Thrift Savings Plan to 56 million private workers with up to $1,000 in matching per year (04:51–05:55).
  • White House did not clarify funding sources or legislative path.

• Room Dynamics and Partisanship:

  • Stark divide in the chamber; confrontational exchanges, especially “using Democrats in the room as props.” Yet, unifying moments like the hockey team ovation stood out (06:38–08:17).
  • Quote:

    “This was as partisan a speech as I’ve heard a president give…using the Democrats in the room as props.” — Andrew Ross Sorkin (06:38)

• What Wasn’t Addressed:

  • No mention of recent violence in Minneapolis or any substantive discussion of AI and its economic impact (10:57–11:59).

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2. Roundtable Reactions: Divisiveness, Tax Cuts, and Stamina

Timestamps: 08:17–14:52

• On Tone:

  • Debate over whether Trump’s rhetoric was more or less divisive compared to previous State of the Union addresses from both parties.

    “He may be crazy, but he’s the same crazy he always was. He hasn’t gotten more crazy.” — Joe Kernan (13:39)

• No Major “New” Tax Cut Announcement:

  • Despite prior hints, Trump did not announce a significant new tax cut in the speech, leading to speculation about the administration’s strategic timing.

• Personal Anecdotes:

  • Lighthearted behind-the-scenes stories from a White House lunch, including viewing the Gettysburg Address and remodeled bathrooms (12:16–13:17).

• Presidential Stamina:

  • The panel marveled at Trump’s enduring energy and long speeches, dismissing critics who questioned his vigor (13:39).

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3. AI, Anthropic, and National Security

Timestamps: 13:39–19:22

• Anthropic/Pentagon Standoff:

  • Coverage of the Defense Department’s pressure on Anthropic for AI model access, and Anthropic’s resistance over ethical concerns, including AI for weapons or surveillance (14:52–16:35).

• AI Regulation and Safety:

  • Industry self-regulation is seen as weak; competition might force even "responsible" actors to lower standards (16:35–16:48):

    “You’re only as strong as your weakest link and that’s why [self-regulation] traditionally has never worked.” — Becky Quick (16:35)

• AI Copyright Drama:

  • Discussion of model training ethics, with all major players facing copyright complaints or lawsuits (18:20–19:05).

• AI Integration:

  • Concerns raised about future AI risks, both mundane (automated email access) and profound (autonomous weapons).

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4. Rep. Josh Gottheimer: Democratic Response

Timestamps: 21:28–27:25

• General Impression:

  • Gottheimer found the speech "not Lincoln-esque" and heavy on theatrics but light on solutions for real issues (21:47):

    “He wasn't exactly binding up the nation's wounds in his approach… but overall I was a little shocked that [he] didn't spend more time with the elephant in the room, which are costs.” — Rep. Josh Gottheimer (21:47)

• Affordability as the Core Issue:

  • Criticized the President for downplaying the squeeze on utility bills, childcare, food, and tariffs:

    “People are really feeling the crush of these things. So to turn around and say to them, don't worry, you're fine. Nothing to see here. I think people don't buy.” — Rep. Gottheimer (23:13)

• Housing Market:

  • Called for more housing supply and permitting reform, noting that "average age of a new homebuyer is 40" (24:17–25:33).

• Tariffs and Local Taxes:

  • Noted tariffs cost the typical NJ family $1,700 per year, urging real relief.

• Foreign Policy & Iran:

  • Dismissed Congress limiting the President during nuclear negotiations with Iran:

    “You don’t tie up hands in the middle of a negotiation. Everybody knows that. And that’s exactly what the Massie proposal would do.” — Rep. Gottheimer (26:46)

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5. Dr. Mehmet Oz: Pharma Reform & Innovation

Timestamps: 29:41–39:30

• Pharmaceutical Pricing Reform:

  • 16 of the top 17 pharma companies have signed “most favored nation” pricing deals ensuring equal pricing for Americans and foreign buyers (30:37–32:10).
  • Urged Congress to codify these deals to secure lower drug prices for future generations.

• On Innovation & Global Fairness:

  • Defends American pharma’s leading role but wants Europe to stop “freeloading”:

    “No more global freeloading. And you know what, Joe? Pharma wouldn’t have signed on if they didn’t think that made sense.” — Dr. Mehmet Oz (38:28)

• Balancing Affordability with Innovation:

  • “We’re not limiting their [drugmakers’] prices at all. They get to set their prices… But whatever they’re going to sell the drug for in America must be the price that they collect from other countries.” (32:10–32:54)

• CRISPR and Gene Therapy:

  • Expressed optimism about single-therapies that could cure diseases using CRISPR; highlighted cost savings and improved patient outcomes (35:40–36:50).

• Healthcare Technology:

  • Announced Medicare and Medicaid will pay for digital solutions if they demonstrate improved outcomes. Envisions a tech-driven future for personal healthcare management (36:50–37:53).

• On U.S. Versus European Drug Pricing:

  • Explains U.S. innovation leads globally, but calls for shared global investment:

    “Europe’s cancer survival rates are better in America…because you’re able to get access to these drugs faster… Europe needs to carry its fair share.” — Dr. Mehmet Oz (38:28)

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6. Notable Quotes & Moments

• Eamon Javers (on the House Chamber):

  “This was as partisan a speech as I’ve heard a President give…using the Democrats in the room as props.” (06:38)

• Josh Gottheimer (on affordability):

  “To turn around and say to them, ‘don’t worry, you’re fine. Nothing to see here.’ I think people don’t buy.” (23:13)

• Dr. Mehmet Oz (on pharma reform):

  “One in three families, when they go to the pharmacy just for basic medications for chronic illnesses are unable to afford their treatments. That’s not right. That doesn’t happen in other countries.” (36:50)

• Becky Quick (on AI regulation):

  “You’re only as strong as your weakest link and that’s why [self-regulation] traditionally has never worked.” (16:35)

• Joe Kernan (on Trump):

  “He may be crazy, but he’s the same crazy he always was. He hasn’t gotten more crazy.” (13:39)

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Episode Timeline

| Timestamp | Segment | |-----------|---------| | 03:01–11:59 | State of the Union Analysis w/ Eamon Javers | | 13:39–19:22 | AI, Anthropic & DoD Battle; Ethics | | 21:28–27:25 | Rep. Josh Gottheimer Reacts | | 29:41–39:30 | Dr. Mehmet Oz on Pharma, Healthcare, and Innovation |

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Takeaway

This episode delivers a thorough bipartisan breakdown of the State of the Union, spotlighting the parade of economic promises, pointed rhetoric, and the ever-present issue of affordability in America. The podcast’s interviews offer a ground-level reflection of middle-class frustrations, while Dr. Oz’s discussion on healthcare adds depth to the ongoing battle between innovation, affordability, and international fairness in drug pricing.

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For listeners in a hurry:

• The episode covers Trump’s economic claims and style (03:01–11:59), ethical and competitive dilemmas in AI (13:39–19:22), Democratic frustrations with the affordability crisis (21:28–27:25), and the future of healthcare affordability and innovation with Dr. Mehmet Oz (29:41–39:30).
• Notable for candid reflections on partisanship, overlooked topics (like AI and Minneapolis violence), and efforts to balance American global leadership in both technology and health care.

Transcript

[Andrew Ross Sorkin]

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[Joe Kernan]

AT&T business wireless connecting changes everything.

[Recovery Advocate]

Substance use disorder and addiction is so isolating. And so as a black woman in recovery, hope must be loud. It grows louder when you ask for help and you're vulnerable. It is the thread that lets you know that no matter what happens, you will be okay.

[Cameron Costa]

When we learn the power of hope, recovery is possible, find out [e-mail] brought to you by the National Council for Mental well Being, Shatterproof and the Ad Council.

[Andrew Ross Sorkin]

Bring in show music, please.

[Cameron Costa]

This is Squawk Pod and I'm CNBC producer Cameron Costa. On today's episode, after just one year,

[Eamon Javers]

I can say with dignity and pride that we have achieved a transformation like no one has ever seen before. And a turnaround for the ages. It is indeed a turnaround for the ages.

[Cameron Costa]

We are digesting President Trump's nearly two hour State of the Union address with CNBC's own Eamon Javers.

[Andrew Ross Sorkin]

It was stark. This was as partisan a speech as, you know, I've heard a president give.

[Cameron Costa]

And the response from across the aisle, New Jersey Democrat Representative Josh Gottheimer.

[Josh Gottheimer]

I was a little shocked that he didn't, that the president didn't spend more time with the elephant in the room.

[Cameron Costa]

The top line issue for many Americans, affordability.

[Josh Gottheimer]

People are really feeling the crush of these things. So to turn around and say to them, don't worry, you're fine. Nothing to see here. I think people don't buy.

[Cameron Costa]

Plus, administrator for the Centers for Medicare and Medicaid, Dr. Mehmet Oz, touting the president's wins in pharma and the work still left to do.

[Dr. Mehmet Oz]

One in three families, when they go to the pharmacy just for basic medications for chronic illnesses, are unable to afford their treatments. That's not right.

[Cameron Costa]

It's Wednesday, February 25th, and Squawk Pod begins right now.

[Andrew Ross Sorkin]

Stand Becky by in three, two, one.

[Becky Quick]

Good morning, everybody. Welcome to Squawk Box right here on cnbc. We are live from the NASDAQ market site in Times Square. I'm Becky Quick along with Joe Carnan and Andrew Ross Sorkin. And here we are the day after the state of the Union President Trump

[Joe Kernan]

addressing the nation and saying that the economy, he says, is about to boom. Want to get straight over to Amy Javors in Washington, D.C. on the President's State of the Union speech. Good morning.

[Andrew Ross Sorkin]

Yeah, good morning to you, Andrew. You heard Joe say it. It was the longest ever State of the Union address by the president last night. It was by turns aggressive and confrontational toward Democrats. It was charming and endearing. There were inspiring moments. The president brought out the US Gold medal winning men's hockey team. He gave out not one, but two Congressional Medals of Honor, the nation's highest military honor. And in the beginning part of the speech, he turned directly to the economy, taking credit for what he sees as a booming economy, saying America is back. He also responded directly to the Supreme Court. With the members of the Supreme Court sitting in chairs just before him in the House chamber, the president responded to their decision to strike down a big piece of his signature tariff economic initiative from last year. Here's what he said.

[Eamon Javers]

The good news is that almost all countries and corporations want to keep the deal that they already made. Right, Scott. Knowing that the legal power that I as president have to make a new deal could be far worse for them and therefore they will continue to work along the same successful path that we had negotiated before the Supreme Court's unfortunate involvement.

[Andrew Ross Sorkin]

So the president's saying there he's undeterred on the tariff front. He's going to continue to push ahead under different authorities. And he said his intelligence is that other countries around the world will continue to stand by the deals that they've agreed to. The president also guys rolled out a retirement savings plan proposal that was massive in its scope. The idea he laid out is for Americans to get thousand dollars in retirement savings accounts. Here's how he explained it.

[Eamon Javers]

My administration will give these often forgotten American workers, great people, the people that built our country, access to the same type of retirement plan offered to every federal worker. We will match your contribution with up to $1,000 each year as we ensure that all Americans can profit from a rising stock market.

[Andrew Ross Sorkin]

So the president didn't say where that money will come from, how much money it will be. But a White House official emailed CNBC during the speech to explain that what they have in mind is an extension of the federal thrift savings plan to American workers. That's about 56 million workers, the white House calculates, who do not get matches from their employers. Now who could under a program like this. So you're talking about tens of billions of dollars worth of costs. The president didn't suggest how that would be accounted for, but clearly something of that order was, would need Congress to get involved. So we'll wait and see how Congress reacts to that proposal last night, guys. But a lengthy and sweeping and at times dramatic speech last night.

[Joe Kernan]

Back over to you, Eamon. I'm curious just about theatrics because I was watching and, you know, you had what seemed to be as divided a room as it felt like I've ever seen, but maybe you think it's been more divided in the past. I was also just struck by some of the people who were there beyond the hockey team. By the way, Brad Gerstner was there with the mention of the Trump account. You had the name checking of Michael Dell. You had David Ellison in the room. Of course, that transaction is something we talk about in the headlines every day about whether he's going to be able to talk about Warner Brothers discovery. And we'll talk about that in a minute. What was your take on just sort of the, the feeling, if you will, in terms of the division of where we are as a country?

[Andrew Ross Sorkin]

I mean, it was stark, right? I mean, this was as partisan a speech as, you know, I've heard a president give. It was aggressive, as I say, toward Democrats. The president called them crazy, said they were lying in their policies, sort of insulted them to their faces several times and performatively, you know, sort of asked people to stand who support policies that he supports and then shook his head disparagingly at Democrats when they didn't stand for those policies. So that was as stark and partisan, you know, sort of a campaign style speech as you can imagine, using the Democrats in the room as props. But there are also these uniting moments. I mean, bringing out the hockey team, you know, after that dramatic and really incredible win over the weekend in the Olympics, and you get this, you know, epic standing ovation there. You see the moment as the team comes in with the gold medals around their necks, the USA sweaters and just a bipartisan standing ovation for the team. That just went on and on and on. And you can see the guys on the team really relishing it and sort of egging the crowd on there in the room. By the way, that's the press gallery where they brought the team in. Not enough seats in the room for the team members, so they let them come in and stand in the hallway in the press gallery. You can see some of the reporters, a little flummox there with their laptops open as they watch the team taking a Round of applause there. Not too many athletes, I got to say, in the press gallery all that often. I spent a lot of time there myself in my career. So you had this unifying moment as well. And so it was both things, Andrew. And I think that, you know, is capable of doing both at the same time.

[Joe Kernan]

We've seen him at campaign rallies and we've seen a lot of speeches from the president. I thought he was very, very measured in presidential for as far as President

[Becky Quick]

Trump goes, and I will add, he painted the country in a brighter light than sometimes he has. Sometimes he gets pretty dark with these things of saying the country has problems.

[Joe Kernan]

There's a reason that Biden was called dark, Brandon and a couple of the State of the Unions that angry speeches that were see, maybe I have a different perspective. It depends on where you're coming from. But from where I was, I thought it was at least as divisive. Some of the divisiveness. I just, it's hard to believe. You can't stand for some of the things that he's saying in clap. I mean, there were times where they were locked in their seats where, yeah, it's divisive. But when he said, you're crazy. I think they are crazy about a

[Becky Quick]

lot of Democrats who didn't even come in.

[Joe Kernan]

You know, I know that's better than heckling. Not. Not going in is my question actually

for you, Joe Kernan.

Yes, sir.

Having sat and had lunch at the White House yesterday, was. You spoke yesterday about this discussion about a big tax cut coming.

He. That was the what we were allowed to take away from the meeting was a another tax cut, both personal and corporate, weighted to the personal through reconciliation. But the president.

But then what happened to that I'm not sure.

He didn't talk about. I went to bed at 9:45 last night, but my son told me it was a good speech. So. And he's off. He's.

No, no. But he. So he told. This is what I wanted to understand because I was waiting the whole, the whole speech. Having watched you on the air yesterday.

It wasn't just me. It was no there's anyone who was

there who said that there was going to be this big tax cut through reconciliation. I thought that's not a big one, but another tax. How is that going to happen? And then not a word.

Yeah. I don't know.

So what do you make of that? I don't know why they would say

go with that and then not talk about. Did he. Did he say that Iran has not Uttered. They won't utter the words. Yes, okay. That was the other thing go with.

[Andrew Ross Sorkin]

He did say that.

[Joe Kernan]

Obviously it's all off the record, and I wasn't going to say anything, but he said, here's, you know, then everybody's almost a gaggle. Here's, you know, Carolyn Levitt. This is what you go with. So. And everybody runs out and reports that. So that.

And then he decided not to do it.

I don't know. I wouldn't be surprised if it was still.

Well, that's the question I was going to say to Eamon. Do you think there's a possibility that

that's something later, it'd be another reconciliation

[Andrew Ross Sorkin]

bill and it'd be more taxable?

[Joe Kernan]

That.

[Andrew Ross Sorkin]

Yeah, I think it's possible that the White House decided either that they just don't want to push that yet or that, you know, it wouldn't really resonate with Americans on the heels of the massive tax cuts that they did last year. And so it wasn't worth mentioning in the speech last night. We'll have to get some reporting from the White House. The other thing I thought was striking, that really didn't get a mention in the room last night. I mean, a lot of times, you know, you talk about who's in the room, but also what's not in the speech. Right. So, you know, no real mention of the violence in Minneapolis that we saw that's been roiling the country over the past month, and no mention of AI in any substantial way. He talked about, you know, companies paying for their own electricity, but no real mention of this incredible force that's now roiling the markets and going sort of sector by sector and causing investors to now reevaluate the future of all sorts of different white collar industries. The president silent on that last night. So you wonder if that was by intention or if that's just something that's just not on the White House's radar screen as they plan for the year ahead.

[Joe Kernan]

But I'll tell you, he was animated at lunch, obviously, and talked for, you know, it was a long pretty.

[Andrew Ross Sorkin]

Did he give you guys. Did he give you guys a tour of the residence?

[Joe Kernan]

Joe, what's that?

[Andrew Ross Sorkin]

Can I confirm he has a tour of the residence?

[Joe Kernan]

I guess I can say I was this far away from the original Gettysburg Address handwritten by Lincoln in the Lincoln bedroom. It was phenomenal.

[Andrew Ross Sorkin]

Did you see the remodeled bathroom? That's what I want to know.

[Joe Kernan]

With beautiful Italian marble. Absolutely gorgeous. And it should be done. It should be as good as it can. And I looked down into the.

It should be as good as the

Federal Reserve looked into. Yeah, well, the lunch was good and I almost made it. You know, we don't want to talk too much. The lunch was good. It was chicken. And you know what it tasted like? Tasted like chicken. Which is. I almost made a joke and said, wow, this isn't as good as the lunch as I've had over at the Fed. But I decided not. But I did look down into the

[Andrew Ross Sorkin]

pit that wouldn't go up of the ballroom.

[Becky Quick]

Oh, I thought you were going to say the pit of the toilet.

[Joe Kernan]

No, I didn't look at the pit of the toilet. But all the toilets looked. They didn't have any of those fancy Japanese toilets that like heat up and do all the really cool.

That's because they're Japanese.

Yeah, maybe.

Eamon. Thank you.

But my point was. And then to be that animated and then afterwards, you know, he's on. He is on. And I don't know how much sleep he gets and then to come and do a, you know, walk in, do speech for what, an hour and 50 minutes?

[Becky Quick]

Yeah.

[Joe Kernan]

Or whatever.

[Becky Quick]

It was 11 o' clock before the record.

[Joe Kernan]

I just don't see any. Anybody that questions his stamina or whether he's lost a step. I just think they're in denial. I literally think they're in denial. And won it so badly to be able to tie it to the last administration. It's just. It's not real. Not real. I mean, he may be crazy, but he's the same crazy he always was. He hasn't gotten more crazy. Anthropic facing an end of week deadline in its dispute with the Pentagon. Sources say Defense Secretary Pete Hegseth threatened to label the company a supply chain risk or invoke the Defense Production act if Anthropic doesn't agree to give the government broad access to its AI models. Anthropic's been negotiating with the Defense Department, but those talks have stalled because it wants assurances that its technology won't be used for autonomous weapons or for mass surveillance of Americans. In a statement to cnbc, an Anthropic spokesperson said. We continued good faith conversations about our usage policy to ensure Anthropic content can continue to support the government's national security mission in line with what our models can reliably and responsibly do.

Meantime, Anthropica is choosing to soften its flagship AI safety policy. This is an effort to stay competitive. The company laying out changes in. Now, what is a third version of Its responsible scaling policy, which says in its words the following. The policy environment has shifted towards prioritizing AI competitiveness and economic growth, while safety oriented discussions have yet to gain meaningful traction at the federal level. I mean, both of these things are fascinating. The second story here that we're talking about to me is even more fascinating because so much of what Dario has talked about since the beginning and founding of this company, in fact the reason why a bunch of them left OpenAI originally was because they wanted to build what they thought was going to be this sort of super safe system. And they didn't think that the responsibility was being taken as seriously as it should at OpenAI. I don't know. You know, a lot of people still, I think, believe that Anthropic may be the quote, unquote, most responsible actor of, of the folks that are out there doing it. It may very well be Gemini actually, and Google who may be in that category. But you know, now you look at what's happening in terms of how people are using Claude, integrating it with their own email, with their calendars, with message bot, you know, and it is true, like you could, one of these things could one day take over your computer and start sending out stuff and making purchases and doing things and maybe doing things you don't want. So that's, that's a serious. And by the way, that's not even talking about whether you can create, dare I say, weapons or other kinds of broader problems. And then the Hegseth issue is even more interesting.

[Becky Quick]

But this is the issue with hoping for self regulation of the industry, right? You're only as strong as your weakest link and that's why it traditionally has never worked. You've got to go along with the weakest link in order to stay competitive.

[Joe Kernan]

And is it the safest of all? Like the one eyed man in the land of the blind, Is it a low bar to be the safest?

I don't know. I'm also fascinated by the Hegseth piece of this because it is true. I mean, who has leverage over who in this instance? Whom, whom? I mean, part of it is Claude, at least in this moment. For what the Pentagon's doing is probably the best large language model for them to use. So you'd think that actually Anthropic might have leverage over them. Meantime, the Pentagon could say we're just not going to use it because you're not giving us permission to use it in this way. I mean, this goes back to you Remember this is now five, seven years ago, maybe More when Google and employees of Amazon and others didn't want their technology to be used in different ways by the US Government. And how are you supposed to structure that? Are you supposed to go and get permission every time? If you're the government, you're supposed to go get permission from some ethics board that's based at the company to allow you effectively to use the product? I mean, this is where it gets very.

[Becky Quick]

I mean, this is very interesting to say they could invoke the Defense Production act, basically meaning we will take it.

[Joe Kernan]

There's been that. There's been that argument. But the flip side is, and this is just sources say the flip side is that look open. I would like to get that business. Elon Musk, who has been trolling Anthropic for the past several weeks now. I mean, you know, he was after Sam Altman for quite a while. Now he's after Dario Stoking a lot of this.

[Becky Quick]

Some of the criticism is valid where, you know, Anthropic has said, oh, they're stealing, you know, Deepseek is stealing our model and kind of breaking in to steal what we've done to learn better off of it. And the criticism has been that, oh yeah, Anthropic stole a lot of the stuff that it trained its own models on, which is a fair criticism. They paid one and a half billion dollars because of copyright infringement. But yeah.

[Joe Kernan]

And going after the open air is in the same boat on that front. They just haven't paid the settlement. They have. They haven't paid for that. Google probably is in the same kind of camp. I mean, I think all of them are. I actually thought that the sort of deep sea thing was interesting. Yes, they're all copying each other, but the deep, the deep sea copying to me is like next level.

[Becky Quick]

Agree.

[Joe Kernan]

And interestingly, X AI, while not necessarily copying the entire Internet, what they've done is basically copied everything that you've produced on. On X. Right. So it's.

[Becky Quick]

And the information that they've taken from it. Yeah.

[Andrew Ross Sorkin]

Cheese will be next.

[Cameron Costa]

Coming up on Squawk Pod. More from our State of the Union digest with New Jersey Democrat Representative Josh Gottheimer.

[Josh Gottheimer]

He mocked affordability, but that's actually what Americans and the folks in Jersey that I talk to all the time are

[Cameron Costa]

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[Joe Kernan]

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[Recovery Advocate]

Substance use disorder and addiction is so isolating. And so as a black woman in recovery, hope must be loud. It grows louder when you ask for help and you're vulnerable. It is the thread that lets you know that no matter what happens, you will be okay.

[Cameron Costa]

When we learn the power of hope, recovery is possible. Find out [e-mail] brought to you by the National Council for Mental well Being, Shatterproof and the AD Council. Welcome back to Squawk Pod. Here's Becky Quick.

[Becky Quick]

Joining us right now to weigh in on the President's State of the Union address is Congressman Josh Gottheimer of New Jersey. And Congressman, thank you for being here today. We've been talking to.

[Josh Gottheimer]

Hi Becky, how are you?

[Becky Quick]

Great. Good. Good to see you. We've been talking to congressional leaders all day to get their take on what happened last night. What was your take?

[Josh Gottheimer]

I'm, you know, a little short for my taste, Becky. Coming in around two hours. I think it just finished and I'll just say it wasn't Lincoln esque. He wasn't exactly binding up the nation's wounds in his approach. But you know, I'll say those the positive moments of the hockey team was great and obviously some medals to war heroes who deserved it. And that was, I think, a tearjerker for everybody. But overall I was a little shocked that he didn't, that the president didn't spend more time with the elephant in the room, which are costs. And you know, he mocked affordability, but that's actually what Americans and the folks in Jersey that I talk to all the time are asking me about. And so I was surprised there wasn't more time talking about what he was going to do about, you know, high costs of utility bills and childcare and food and all the things that people are struggling with right now. And obviously he doubled down on tariffs which are a huge tax on people and seventeen hundred dollars a year in Jersey for families that I represent. So those were some of my top, my top takeaways, Congressman.

[Becky Quick]

Just in terms of affordability, I mean, that's reminiscent of what President Biden did at the time when people weren't feeling like they were able to get by, that inflation was too much and that it was going in those directions. And President Biden at the time basically said, no, the economy is great and you're not feeling what you think you're feeling.

[Josh Gottheimer]

Yeah, it's hard to tell people that.

[Joe Kernan]

Right.

[Josh Gottheimer]

And I think it's part of the reason why President Trump right now has favorability on the economy in the 30s, because people are struggling. Right. When you've got these tariffs and you've got high energy bills and high childcare prices and health care premiums, which, you know, you were just talking about health care, you know, those premiums are up thousands of dollars for people across my state and around the country, especially when the Affordable Care act tax credits expired. Right. So people are really feeling the crush of these things. So to turn around and say to them, don't worry, you're fine. Nothing to see here. I think people don't buy and you know, we've got to really address those issues. And I think the President should have. And as you pointed out, no president gets away with that when you don't acknowledge reality.

[Becky Quick]

You have some ideas yourself. In terms of housing affordability, that is a really difficult issue. No party seems to be able to get their arms around that. You're still talking about 40 being the average age of a new homebuyer these days. It's a long term problem. It's one, it's one that will take quite some time to bring down. What are your ideas?

[Josh Gottheimer]

No, I think you're right. I mean, I think the housing thing we need. The bottom line is you need more supply. And I. People are struggling because there's just not enough out there. And so the prices go up and we're not building, in my opinion, fast enough. You've got a lot of bureaucracy in the way of getting things built faster. And I see that in my state, you've just got to do more. I think this is where permanent things like permitting reform, which I'm working on, are critical. And, you know, anything we can do, whether you're talking about housing issues or health insurance, getting health insurance premiums down and obviously some of that addressed in terms of the cost of drugs last night, which is a good thing to get Those prices down, those are all things that will help. But overall, when you look at utility bills up more than 40% in my state over the last year or so, and that's just not okay. You're on a fixed income and suddenly your utility bills are up 40%. Where are you finding those extra dollars from? You turn around with the tariffs on everything you buy being more expensive, people can't make ends meet and wages aren't exactly going up. So those are the struggles people are dealing with. And we've got to make life more affordable. We've got to get taxes down, especially those local taxes down for people. And those are all things that I think we've got to focus on.

[Becky Quick]

The speech was very heavy on domestic issues, a little light on some of the foreign affairs issues, but there was a glancing reference to Iran. And there's been a lot of talk in Congress about potentially bringing back War Powers Resolution, the Massikhana War Powers Resolution Act. That's actually not something you voted for. Why don't you support that? And what do you think about where we stand right now?

[Josh Gottheimer]

You know, we haven't voted yet on that, but I. But you're right that I came out strongly opposed to the idea that right now we've got the leading state sponsor of terror in the world, who, as the President talked about last night, is continuing to drive ahead with their nuclear program and their ballistic missile program. Their lead banner is Death to America. They're killing their own people by the thousands and putting America's national security at risk. We're at the negotiating table as the President talked about. He said diplomacy should be the top way out. But at the end of the day, if Iran continues to drive forward with their nuclear program and enrichment, if they keep going on their missile program and continuing to support our enemies who have killed thousands of Americans, all those terrorist proxies like Hezbollah and Hamas and Palestinian Islamic Jihad and the Houthis, you know, and they keep going there and threatening America's national security, then we've got to keep the maximum pressure on and respond if we need to. And I think we need to make sure the Commander in Chief has what he needs to be able to both have those negotiations and to move forward if necessary. And if. Listen, if the decision is to move forward, then of course the decision should come to Congress after an appropriate time, as the War Powers act says, and get a vote here to move forward. But you don't tie up hands in the middle of a negotiation. Everybody knows that. And that's exactly what the Massie proposal would do and it makes no sense to me.

[Becky Quick]

Congressman Gottheimer, thank you. We appreciate your time.

[Josh Gottheimer]

Thanks for having me.

[Cameron Costa]

Next up on Squawkpod, we'll hear from Dr. Mehmet Oz, Administrator for the Centers for Medicare and Medicaid Services.

[Dr. Mehmet Oz]

These deals last through this term. We made them for this president. We want to make sure these deals are codified by Congress so they last into future generations. We also don't have all the companies and if Congress takes action, we can get all of pharmaceutical companies, especially those based in other countries, to agree that they must sell their drugs at the same price across the world.

[Cameron Costa]

An update on the Trump administration's efforts to lower drug prices. That's right after this break. Hiring isn't just filling a role. It's about finding people who can drive results Indeed. Sponsored Jobs helps you match with the right candidates faster. Target candidates by skills, certifications or location. Join the 3.3 million employers worldwide that use Indeed to connect with quality talent that fits their needs. And listeners of this show will get a $75 sponsored job credit to help get your job the premium status it deserves. Indeed.com podcast terms and conditions apply. Hiring do it the right way with Indeed.

[Andrew Ross Sorkin]

This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Lansford for this information packed daily market Preview delivered in 10 minutes or less, including projected stock updates, monetary policy decisions, and key results and statistics that may impact your trading. Download the latest episode and [e-mail] Market Update podcast or find Schwab Market Update wherever you get your podcasts.

[Recovery Advocate]

Substance use disorder and addiction is so isolating. And so as a black woman in recovery, hope must be loud. It grows louder when you ask for help and you're vulnerable. It is the thread that lets you know that no matter what happens, you will be okay.

[Cameron Costa]

When we learn the power of hope, recovery is possible, Find out [e-mail] brought to you by the National Council for Mental well Being, Shatterproof and the AD Council. Welcome back to Squawk Pod with Jo Kernan, Becky Quick and Andrew Ross Orkin.

[Joe Kernan]

Here's Joe joining us now with reaction to the President's State of the union, Dr. Mehmet Oz, the administrator for the Centers for Medicare and Medicaid services. Dr. It is. I think doctors better than Mr. Administrator. You even want to be an administrator. That's like a. That's almost a pejorative, isn't it? That's like a bureaucrat Good morning. Thanks for joining us.

[Dr. Mehmet Oz]

Good morning. I do get to use a scalpel periodically when we make these budgets. But you know, I got to say, politics is a fairly bloody sport. It might be bloodier than heart surgery. So it's a good training for what we're up to now.

[Joe Kernan]

Yeah, that is a good point. One of the things in this world where affordability is always being talked about suddenly by the opposition. The President is very proud of what's happening with pharmaceutical costs in most favored nations, things like that. Should he be in your view?

[Dr. Mehmet Oz]

No, 100%, Joe. The president has been upset about this for a long time. He brought it up in the first administration. But this time around we brought in some world class experts. Chris Clump, John Brooks, Inma Hernandez. People who really knew the pharmaceutical industry and could go head to head with these $3,000 an hour lawyers who negotiate these deals. And instead of cowering in front of pharma, we were able to do what the President was insisting on, which is a deal with a moral hazard created by a industry which is incredibly innovative. Save lives all the time with wonderful advances in technology. But nevertheless, they were charging American citizens three times more on average than brand products sold overseas. Joe, even when they were made in the same factory, in the same bottle, even when they were made here in America, we were paying three times more. And so the President wants that stopped. He also wants innovation to continue. So we went at it. We got 16 of the 17 top companies on board. The 17th one is going to sign and we'll be back in the Oval Office again celebrating the President's initiative that makes most favored nation drug pricing a standard. But there are some gaps. The first big gap is these deals last through this term. We made them for this President. We want to make sure these deals are codified by Congress so they last into future generations. We also don't have all the companies. And if Congress takes action, we can get all pharmaceutical companies, especially those based in other countries, to agree that they must sell their drugs at the same price across the world. We're not price controlling. It's up to them to set their price. But whatever they're going to sell the drug for in America must be the price that they collect from other countries.

[Joe Kernan]

You know, Doctor, if you weren't administrative administrator of Medicare and Medicaid, you could have been involved with the FDA or even a biologics chief. I figure you could wear all those hats. You've seen some of the controversy. I think we're going to have Dr. Marty McCarr we're going to have him on it. And Becky was talking earlier about this amazing CRISPR technology, but it all comes back to rare diseases and drugs and the way that we promote it. There's a piece in the Journal today that is kind of very critical of what's going on with the head of Biologics. And I'm just wondering if you can weigh in on what's happening over there with Dr. Prasad and Marty Makarya.

[Dr. Mehmet Oz]

Macary is a superb clinician, but he's also superb commissioner for the fda. He's making some difficult and brave decisions, but we work together already crafting mechanisms for us to get devices approved more rapidly. We have a great model at CMS that lets us pay quickly for some of these orphan drugs. Drugs, for example, the ones that can cure, not just treat, cure sickle cell anemia. It costs US maybe $2 million to treat a child with sickle cell anemia, but it saves $10 million for the system. And more importantly, these children no longer suffer with these deadly complications of their illness. And so we're banking on these technologies getting advanced into commercial use and we're going to pay for them when they get there. Folks like Marty Makary have to make tough decisions to make sure the standards are maintained. But across the board is administration. And I do want to applaud Secretary Kennedy for this. He's bravely taking on the status quo. He's not just going to sit back and let what's been in place for many years continue without at least kicking the tires. We've done that with food policy. We've done that with some of the new ways we're paying for solutions, including, by the way, in Medicare and Medicaid. We're for the first time going to pay companies coming up with digital solutions if they get great outcomes. I'm going to say that again, Dr.

[Becky Quick]

Anticipate what Joe was talking about in the Wall Street Journal. This is an op ed piece that today lays out the difference with what Dr. Makary is doing, where he seems to be opening the path for a lot of these things and what Dr. Prasad is doing, which seems to be rolling back some of those very same initiatives or very similar initiatives to try and help rare disease. And the Journal asked the question today, you know, where is this going? How do you have kind of one hand doing one thing and the other hand doing the opposite. You mentioned your support for Dr. Makary. What about Dr. Prasad?

[Dr. Mehmet Oz]

I don't know Dr. Prasad, and I'm not trying to evade the question, I haven't read the article. I was busy watching the State of the Union address last night and getting ready for a bunch of different ways which we're going to hopefully improve affordability in this country. My plate is plenty full at CMS without looking over to see what's happening next door.

[Joe Kernan]

Well, you know, you know, you're familiar with the gentleman, an ardent supporter of Bernie Sanders government run health care. It doesn't seem to stick out like a sore thumb in the Trump administration. Anyway, Doctor, I wanted to ask you about Becky. So what's the baby's name?

[Becky Quick]

Baby KJ Mo.

[Joe Kernan]

Baby KJ CRISPR technology that allows. That's working. Can you explain to me, is it taken up by somatic tissue? I mean it's everywhere. That would be an unbelievable advance if we could just put something in that would stay and work. You know, you could actually alter someone's genetic makeup. Is that what's happening?

[Dr. Mehmet Oz]

CRISPR technologies allow us to insert either changes to the DNA because they were defects during conception or adjust other pathologies that exist. I'm very excited about the opportunity for these solutions to not make these diseases into chronic ailments which require lifelong therapy. But rather simple or at least maybe even single solutions that might be able to get these kids past this problem. I should mention we were doing all these most favored nation drug pricing announcements in the Oval Office and after one of them we had an executive order on childhood cancer treatments. And about a dozen of these beautiful bright eyed kids were in the Oval Office. Every one of them would have passed if it wasn't for advances made by the pharmaceutical sector. So this administration is strongly supportive of innovation across the board, across our agencies. We want these technologies to prosper. We want to be able to pay for them as they're appropriately used. The key challenge for all of us is to make sure that we make these affordable. Because Joe, one in three families, when they go to the pharmacy just for basic medications for chronic illnesses are unable to afford their treatments. That's not right. That doesn't happen in other countries. So we're driving down prices for Medicaid. That's going to allow governors to manage their state budgets better. We're driving down prices for Medicare. That will allow our trust fund to last longer. It'll keep the Medicare system intact. So folks who are working right now their entire life know that that safe debt will be there when they get older. And the president hammered on these issues last night, which is again why he's calling on Congress to codify some of these changes. So we'll have it for affordability across the board. That includes drug prices, it includes hospital prices, transparency, and what you're going to pay when you get sick. All of that makes the system work better because the market works better. And that's why we can now take a chance using AI and digital technologies to bring them to the forefront of solutions for the American people. Let me paint a picture for you. We're going to be able to give you as a beneficiary information that lets you live your best life. We'll meet you where you are. We don't have to get you to call 1-800Medicare.gov you can do that too. We want to meet you where you are with tools and technologies from our most advanced companies in the space to allow you to deal with your diabetes more effectively, your hypertension, or maybe get diagnosed and treated with one of these CRISPR techniques.

[Joe Kernan]

It's too simplistic to say we'd like Europe's prices, but not Europe's innovation. But it's related. That's the thing. I mean, if you. We're importing price controls to some extent. We just don't. We want to make sure that drug companies are reimbursed for all the, for how expensive it is to develop these treatments or else they won't do it and we'll end up with no innovation. You know, they got cheap drugs over there, but when's the last time they, you know, they don't develop nearly as much as our industry does here. Doctor, I know that you're. That must be a front of mind consideration when we're doing all these things for you, is innovation.

[Dr. Mehmet Oz]

Well, we're not, Joe, we're not limiting their prices at all. They get to set their prices. We want to help them get better pricing in Europe. What they all come to us and say is, you guys are doing great. You support our innovation. Europe's cancer survival rates are better in America than in Europe because you're able to get access to these drugs faster. And so what we're saying to Europe is, you guys got to anti up. If America spends 0.8% of its GDP on pharmaceuticals that save lives, Europe can't spend less than half that. And we're asking Europe, like with NATO, same thing. NATO was an external threat. They all agreed to put in 5% of their GDP to protect themselves. We're demanding they do the same thing for an internal threat. The diseases that plague our people. Humanity will always be better if we invest in innovation. But Europe needs to carry its fair share. No more global freeloading. And you know what, Joe Pharma wouldn't have signed on if they didn't think that made sense. And the sector's stock, their market cap has gone up since they signed these MFN deals because they do allow us to preserve innovation while getting better reimbursement from other countries across the board. It'll be more stable for the industry.

[Joe Kernan]

All right, Dr. Oz, thanks. We appreciate all your comments and come back soon.

Breaking on Squawk Box this morning, appaloos David Tepper sending an angry letter to Whirlpool accusing management of a quote, striking lack of judgment and destroying hundreds of millions of dollars of shareholder value. Whirlpool is down 60% in five years. Meantime, shares of Oracle up 2% after an upgrade in price target hike from Oppenheimer this morning. And Joby Aviation and Uber launching Uber Air. The companies expect to carry their first passengers in Dubai later this year.

[Becky Quick]

Cool.

[Joe Kernan]

It's coming here.

Whirlpool was the big Elizabeth Warren price gout. Remember they, they raised prices on both washers and dryers even though and even after gouging for all those years are still down 60% now.

And now David wants them basically to try to buy a foreign competitor.

Gouge better.

[Becky Quick]

Yeah.

[Cameron Costa]

That's Squawk Pod for today. Thank you for listening. Squawkbox is hosted by Joe Kernan, Becky Quick and Andrew Ross Sorkin. Every weekday morning from 6am Eastern all the way until 9. You can catch the highlights from that three hour TV show if you follow Squawkpod. Wherever you're listening now, we'll meet you right back here tomorrow. Have a great day.

[Andrew Ross Sorkin]

Now we are clear. Thanks, guys.

[Becky Quick]

Oh no, my coffee.

[Joe Kernan]

Bronnie here new brawny 3 ply is now more absorbent.

[Becky Quick]

Wow. Got a clean shirt.

[Andrew Ross Sorkin]

Do you wear plaid? Some of the strongest.