State of the Union: Senators Cruz (R-TX) & Cantwell (D-WA) 2/24/26

Summary

Squawk Pod Summary

Episode: State of the Union: Senators Cruz (R-TX) & Cantwell (D-WA)
Date: February 24, 2026
Hosts: Joe Kernan, Andrew Ross Sorkin
Guests: Senator Ted Cruz (R-TX), Senator Maria Cantwell (D-WA)

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Overview

This episode of Squawk Pod focuses on the political and economic anticipation surrounding the President’s upcoming State of the Union Address. CNBC anchors Joe Kernan (reporting live from Capitol Hill) and Andrew Ross Sorkin are joined in back-to-back interviews by Senators Ted Cruz and Maria Cantwell, representing Republican and Democratic perspectives. The conversation covers U.S. trade policy and tariffs, the impact of recent Supreme Court decisions, U.S. foreign policy (particularly Iran), economic sentiment, the ongoing media industry bidding war for Warner Bros. Discovery, AI’s effect on jobs and markets, and concerns about the structure of the media landscape.

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Key Discussion Points & Insights

1. Anticipation of the State of the Union (01:02 – 08:07)

• Hosts discuss:
  • Tonight’s State of the Union and the increased security around which Supreme Court justices, Democrats, and other officials may attend.
  • The recent market turmoil due to AI disruption and jitters in tech and financial sector stocks.
  • Paramount and Netflix’s intensifying bidding war over Warner Bros. Discovery, with speculation about the implications for Hollywood and streaming.

Joe Kernan (on market fears):
“We’re sleepwalking into this… every previous disruption always led to initial fears that were replaced by, by more jobs and more productivity. One of these times that may not be the case.” [03:44]

Andrew Sorkin (on AI impact):
“The blue collar job may be the most protected job, maybe more protected than the white collar job. It’s clear to me the white collar job goes first.” [04:40]

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2. Senator Ted Cruz Interview

Trade, Tariffs & the Supreme Court Ruling (10:42 – 14:05)

• Cruz explains his evolving position on tariffs, acknowledging that while not a “tariff guy,” he believes President Trump has used them effectively as leverage in trade negotiations.
• On the Supreme Court decision limiting the President’s ability to unilaterally impose tariffs:
  • Cruz calls the decision “unfortunate” but ultimately of minor practical consequence, as other statutes still empower the President.
  • Predicts “a bunch of chaos and litigation” but limited impact on actual trade policy.

Ted Cruz:
“President Trump has changed my mind on one aspect, which is I think tariffs are an incredibly effective lever point for the president and he’s shown that in the last year… the threat of tariffs incentivizes [our trading partners] and it’s a really powerful tool.” [11:23]

“Donald J. Trump could go down as the greatest free trade president of modern times, which, which is not what one would expect.” [12:03]

“The Supreme Court decision I don’t think is going to have much consequence other than a bunch of chaos and litigation…” [13:00]

Iran Policy & Biden Administration (14:05 – 16:40)

• Cruz lauds the President’s “incredible” leadership on Iran, emphasizing the recent bombing of nuclear facilities as a historic move.
• Predicts possible regime change in Iran (and possibly Venezuela, Cuba) and calls for supporting protesters, arming them, and targeted strikes rather than boots on the ground.
• Adds that removing Iran’s ayatollahs would be the “biggest geopolitical shift since the fall of the Berlin Wall.”

Ted Cruz:
“What I’ve urged the President is, number one, support the protesters and arm the protesters. Let the people of Iran give them the ability to overthrow their government… I think there’s a real possibility of targeted strikes that are designed to support the Iranian people who are protesting.” [15:29]

Economic Performance & Public Sentiment (16:40 – 19:18)

• Discussion of the “disconnect” between positive economic indicators and lingering public malaise over affordability and inflation.
• Cruz credits the Trump administration for progress on inflation, tax cuts, border security, and crime reduction, but says “four years of Biden inflation” continues to weigh on the middle class.
• Highlights major provisions authored in the tax bill: federal school choice expansion and “Trump accounts” enabling children to invest for their futures.

Ted Cruz:
“Illegal border crossings are down 99%. Murder rates are down 20%. Drug overdose deaths are down 20%... I think the Trump tax cuts that we passed last year, many of them are going to go into full effect this year.” [17:41]

“School choice is going to unleash tens of billions of dollars of scholarships for kids all over America. Millions of kids are going to escape failing schools and have hope because of it. And the Trump accounts, you’re going to see literally trillions of dollars that our kids are going to be able to invest.” [18:30]

On FBI Director & Olympic Games (19:18 – 21:47)

• Addressing controversy over Cash Patel and FBI travel to the Olympics, Cruz defends Patel and celebrates the team’s gold medal win.

Ted Cruz:
“I think Cash [Patel] is doing a good job… the FBI has an important job protecting security there… It was awesome when Cash called President Trump, put him on the cell phone. The president congratulated that team. I hope they come tonight.” [20:13]

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3. Senator Maria Cantwell Interview

The Media & Paywalls (24:09 – 27:37)

• Cantwell is deeply engaged in the evolving media landscape, especially the impact of paywalls on sports and local broadcasters:
  • Expresses concern over sports content going behind paywalls (Amazon, ESPN), hurting consumers and local journalism funding.
  • Advocates for a system where consumers access free, ad-supported content (“rent my eyeballs” model).
  • Emphasizes need for policy/guidance ensuring local broadcasters continue to receive sports content and support local news.

Maria Cantwell:
“We don’t want everything behind a paywall, and we certainly don’t want all the sports behind a paywall. The consumer is getting hammered on sports content constantly being put behind a paywall... I want to go back to the eyeball world where you rent my eyeballs. I watch a lot of advertising, but I get this free content.” [24:42]

“This is going to continue, right? This notion of are people just going to get more and more power and then put more and more content behind paywalls and then destroy the engine of what is local journalism? I’m going to fight against that.” [27:37]

Warner Bros. Discovery Bidding War & Political Dynamics (27:37 – 28:42)

• Cantwell critiques both presidential rhetoric and corporate consolidation:
  • Responds to concerns about Netflix/Paramount bids and political threats over board memberships (ref. Susan Rice).
  • Wants “real competition” in both content creation and media distribution; opposes political threats to deals, prefers competitive bidding.

Tariff Policy & Small Business Relief (28:42 – 31:40)

• Cantwell wants transparency on how tariff revenues will be used, particularly in providing relief to small businesses who may lack resources to litigate like large companies (Costco, FedEx).
• Wishes the President would seek Congressional input and focus on opening new markets, particularly for U.S. agriculture (e.g., “how to get soybeans into Asia or apples from our state”).
• Argues the first Trump administration’s trade moves made things “artificially more expensive for consumers,” and laments failure to recover lost export markets.

Maria Cantwell:
“In a dream world, I would love the President to say, I hear the courts and I’m going to go to Congress and I’m going to have a discussion with them about trade and about how to get markets open...” [29:51]

“We’ve never recovered — the US Markets never recovered the soybean market that was lost in the first Trump administration.” [31:40]

Economic Policy & Innovation (31:40 – 34:28)

• On party positioning, Cantwell says Democrats must make a stronger, more specific case for middle-class job growth in the “information age.”
• She discusses the “millionaires tax” in Washington State and concerns about competitive environments for tech giants like Amazon, Microsoft, and Starbucks.
• Supports dispersing innovation across the state (beyond Seattle), keeping Washington competitive, and attracting talent in light of tax policy debates.

Maria Cantwell:
“If we’re not really growing the middle class in America, how can we say that’s the American dream? And so we have to be more specific about how we think we’re going to grow those middle class jobs.” [32:11]

Closing Thoughts on Media & Information Competition (35:19 – 35:53)

• Cantwell emphasizes the crucial role of competition in the media to create “perfect information” and expresses desire to return to the show to discuss media issues further.
• Reveals herself to be a Pearl Jam fan, ending the interview on a lighter note.

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Notable Quotes & Memorable Moments

| Timestamp | Speaker | Quote | |-----------|---------|-------| | 11:23 | Ted Cruz | “President Trump has changed my mind… tariffs are an incredibly effective lever point for the president.” | | 13:00 | Ted Cruz | “The Supreme Court decision I don’t think is going to have much consequence other than a bunch of chaos and litigation…” | | 15:29 | Ted Cruz | “What I’ve urged the President is, number one, support the protesters and arm the protesters.” | | 17:41 | Ted Cruz | “Illegal border crossings are down 99%. Murder rates are down 20%..." | | 24:42 | Maria Cantwell | “We don’t want everything behind a paywall, and we certainly don’t want all the sports behind a paywall.” | | 27:37 | Maria Cantwell | “I’m going to fight against that [the destruction of local journalism].” | | 29:51 | Maria Cantwell | “In a dream world, I would love the President to say, I hear the courts and I’m going to go to Congress and…get markets open.” | | 32:11 | Maria Cantwell | “If we’re not really growing the middle class in America, how can we say that’s the American dream?” |

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Timestamps of Important Segments

• 01:02 – 08:07: Show open, State of the Union expectations, AI market fears, and Warner Bros. Discovery bidding war.
• 10:42 – 21:47: Ted Cruz interview: tariffs, Supreme Court, Iran, economics, viral moments.
• 24:09 – 35:53: Maria Cantwell interview: media/paywall landscape, trade policy, small business relief, economic and state policy.

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Tone & Style

The conversation throughout the episode is thoughtful, sometimes playful, often deeply analytical, with signature banter between Kernan and Sorkin. Interviews are frank, with Senators Cruz and Cantwell each giving direct answers informed by their partisan perspectives, but both stress the importance of bipartisan engagement on urgent issues like trade and economic opportunity.

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Summary for Non-Listeners

This Squawk Pod episode offers a real-time pulse on Washington as the State of the Union approaches. You’ll hear candid takes from Senators Cruz and Cantwell on trade wars, the fate of tariffs after a Supreme Court shakeup, U.S. assertiveness abroad (notably Iran), and the economics of an election year. The conversation takes a sharp turn into the business of media with the ongoing Warner Bros. Discovery deal and broader questions about paywalls, local journalism, and competition in the “information age.” The episode captures the complex intersection of politics, economics, and media, placing listeners in the thick of Capitol Hill’s most timely debates.

Transcript

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[Senator Maria Cantwell]

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[Senator Ted Cruz]

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[Joe Kernan]

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[Senator Ted Cruz]

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[Senator Ted Cruz]

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[Andrew Sorkin]

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[Joe Kernan]

Bring in show music please.

[Cameron Costa]

This is Squawkpod and I'm CNBC producer Cameron Costa. On today's episode, gearing up for the President's State of the Union address. Joe is in D.C. on Capitol Hill with senators from both sides of the aisle. First, Ted Cruz.

[Senator Ted Cruz]

I'm not a tariff guy, but I will say President Trump has changed my mind on one aspect, which is I think tariffs are an incredible, incredibly effective lever point for the president.

[Cameron Costa]

Then what Democrats are hoping to hear on tariffs tonight with Washington Senator Maria Cantwell.

[Senator Maria Cantwell]

In a dream world, I would love the president to say I hear the courts and I'm going to go to Congress and I'm going to have a discussion with them about trade and about how to get markets open, about how to get soybeans into Asia or apples from our state.

[Cameron Costa]

Plus, Wall Street's fears of AI disruption keep rattling the markets. And the bidding war for Warner Brothers discovery just keeps heating up.

[Joe Kernan]

Big enough and interesting enough for us to spend a lot of time talking about, which we do.

[Cameron Costa]

It's Tuesday, February 24, 2026, and Squawk Pod begins right now.

[Senator Ted Cruz]

Stand Andrew by in 3, 2, 1.

[Andrew Sorkin]

Q. Andrew, good morning and welcome to Squawk Box right here on cnbc. We are live at the NASDAQ market set in Times Square. I'm Andrew Sorkin along with Joe Ker, who is in Washington, D.C. this morning wearing a suit, no less. Ahead of tonight's State of the Union address. Becky's off. We got a whole bunch of things going. No pocket square. Joe Carnan. No pockets square.

[Joe Kernan]

No. But take a screenshot. This never Happens.

[Andrew Sorkin]

I know you.

[Joe Kernan]

I know you without the jacket. Meet me with the jacket. I feel like. I mean, I feel totally inhibited. I could be a totally different person.

[Andrew Sorkin]

Well, we'll see how that works out.

[Senator Ted Cruz]

We can only hope.

[Andrew Sorkin]

We're coming off some drops of more than 1% for all the major averages. And in focus for investors, renewed fears of an AI disruption in the tech sector. Cybersecurity stocks were hit particularly hard. IBM lost 13% on worries that Anthropic could poach some of its business. It was IBM's worst day since October of 2000. And we should mention that one of the catalysts for all this was a blog post by Citrini Research laying out a hypothetical scenario in which AI pushes US Unemployment much higher and changes how payments are made. That hit bank stocks, with JP Morgan down more than 4%. Although I should say later in the evening, CEO Jamie Dimon said he thought the latest fears were overblown and that the bank would be, in his words, quote, a winner in AI.

[Joe Kernan]

Andrew, we talked, we got to talk more, but we're sleepwalking into this kind of. And we just fall back on the. Every previous disruption always led to initial fears that were replaced by, by more jobs and more productivity. One of these times that may not be the case.

[Andrew Sorkin]

Now you're coming around.

[Joe Kernan]

No, I believe this for a while. I'm worried and not about us because.

[Andrew Sorkin]

No, you, you used to have a. Used to give me this Malthusian argument is what you.

[Joe Kernan]

No, no Malthus. No Malthusian about things like oil, not about this.

[Schwab Announcer]

All along.

[Joe Kernan]

I'm thinking, what is everyone going to. What are travel agents going to do? What are truck drivers going to do? It just worries me. And then you saw Sam Altman the other day saying, hey, you know, humans use a lot of energy and food, too. So it's not just, I mean, he sounded like he's already turned into one of the machines. Did you hear that the other day, that he said that?

[Andrew Sorkin]

I did. But interestingly, and I think we've talked about this, the blue collar job may be the most protected job, maybe more protected than the white collar job. It's clear to me the white collar job goes first.

[Joe Kernan]

Right. And you got a blue shirt on. You think that's going to help? And here I am with, you know, headed out of here. President Trump's looking at new ways to levy tariffs in the wake of his defeat at the Supreme Court Friday. The White House reportedly considering hitting products like batteries, cast iron, chemicals and telecom equipment with tariffs wall Street Journal says the levies would be imposed under 232. That section of the Trade Expansion act of 1962, which allows for tariffs based on national security risks and the tariffs are not impacted by last week's Supreme Court decision. The president has already made use of Section 232 in his second term to tax products like steel and aluminum. And Andrew, it will be interesting tonight. I don't know how many of the justices will be in the front row but holding their breath. We'll see what, what, what the President has to say. The other day, I forgot to mention, when we were talking about the Supreme Court, forgot to mention, remember Chuck Schumer? Remember that one? We know where you are. We're coming after you guys. You, you have started the whirlwind of problems.

[Senator Ted Cruz]

Remember?

[Joe Kernan]

I mean, this is.

[Andrew Sorkin]

Well, it's going to be interesting to see how many empty seats there are because there's a whole view. I don't know if you've read about all these Democrats that may not come at all. And interestingly, some of the Supreme Court justices didn't always come. So again, I wonder whether they're all going to come and how that's all going to work. It'll be very interesting to see how.

[Joe Kernan]

Well, it'd be nice. If you don't want to come, don't come. That's fine. But I hope that there's no heckling or guys shaking their cane if there are people ripping things up or, you know, in the past there's been some decorum that's been and we would far be it from us to ever violate any decorum, Andrew.

[Andrew Sorkin]

I mean, I'm thinking of Marjorie Taylor Greene on the other side.

[Joe Kernan]

Yeah, yeah.

[Andrew Sorkin]

Paramount Skydance reportedly sweetening its offer for Warner Brothers Discovery. Reports say that Paramount aim to address some of Warner's concerns about financing with that new bid. Unclear right now though how much the offer is worth. Now Paramount previously had bid $30 a share in cash for Warner Brothers Discovery. If Warner's board now favors the new deal, Netflix will have four days to respond. Reports had said Variety had put that number close to $32 a share. We'll see whether Netflix comes back, how high they can go and what comes next. Joe, I imagine Netflix bids higher. That's my guess on this. But if Netflix wins, then it becomes, I imagine, a year or two year long soap opera about whether the government's going to allow the deal to go through. If Paramount wins, then I imagine the expectation is that they've won.

[Joe Kernan]

Everyone should be interested. I was, I was thinking, Andrew, we're so interested because we're in the media and, and it actually, we have almost, we don't really have skin in the game. But because of versa and because of, you know, the interplay between cable and streaming and new media, legacy media, I mean, we're watching so closely. But I think, I don't think it's just us. I think it's big enough and interesting enough for us to spend a lot of time talking about, which we do. Right.

[Andrew Sorkin]

Well, to me it's just, I agree with you, but I think it's really like the end of Hollywood. There's the AI possibility of that. All of it. So many different in all of it.

[Joe Kernan]

Yeah.

[Senator Ted Cruz]

Tease will be next.

[Cameron Costa]

Coming up on Squawk pod ahead of the President's speaker State of the Union address. Tonight, our Joe Kernan sat down with Senator Ted Cruz in the Russell rotunda in the U.S. capitol. Top of mind for many in business and in politics. Tariffs.

[Senator Ted Cruz]

The Supreme Court decision I don't think is going to have much consequence other than a bunch of chaos and litigation because there are a host of other federal statutes that let the president impose basically the same tariffs. And so in terms of our trading partners, I don't actually expect the other countries to do a whole lot different. You'll have individual companies filing lawsuits.

[Andrew Sorkin]

Foreign.

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[Joe Kernan]

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[Andrew Sorkin]

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[Joe Kernan]

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[Senator Maria Cantwell]

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[Senator Maria Cantwell]

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[Senator Maria Cantwell]

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[Andrew Sorkin]

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[Senator Maria Cantwell]

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[Andrew Sorkin]

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[Cameron Costa]

Welcome back to Squawk Pod. The morning before the President's State of the Union address. Here's Joe KERNAN in the U.S. capitol in Washington.

[Joe Kernan]

Joining us now, Senator Ted Cruz. He's the chairman of the Commerce Committee, member of the Foreign Relations Committee, I think. Is there anything else? You talk commerce, you talk foreign, judiciary

[Senator Ted Cruz]

as well and rules. I stay busy.

[Joe Kernan]

Yeah, it seems like it's all. But we can talk to you about anything, obviously. And the first thing I said to you when you sat down, we've had conversations in the past and many Republicans in their previous lives, pre Donald Trump lives, were not big fans of tariffs. And I said you have been somewhat mixed in the past on our conversations about it. But you said used in the right way and maybe the way the president has used them, it can be something that you're behind, that you support.

[Senator Ted Cruz]

Look, that's exactly the way I would put it. As you said to me before we started, you said you're not a tariff guy and I agree with you. I'm not a tariff guy. But I will say President Trump has changed my mind on one aspect, which is I think tariffs are an incredibly effective lever point for the president and he's shown that in the last year that through the threat of tariffs, he's opening up foreign markets. And there are two camps within the administration. One camp wants the president to use tariffs as leverage to reduce tariffs from our trading partners to remove non tariff barriers to expand trade. That's the camp I'm in. I think that's the right camp to be in. There is another camp in the administration that just loves tariffs, that wants them high forever and is fine with other countries having high tariffs. I think that's a very bad policy outcome. But there is an irony, Joe. Donald J. Trump could go down as the greatest free trade president of modern times, which, which is not what one would expect. And I'll tell you what changed my mind. I mean, look, I, I think back to the George W. Bush administration. President Bush was a big advocate of free trade, but our trading allies were not beating a path to Washington saying let's lower our tariffs and open up our markets. With Trump they are the threat of tariffs incentivizes them and it's a really powerful tool.

[Joe Kernan]

Do they second guess there a lot of the agreements or a lot of the concessions made after the Supreme Court decision on Friday.

[Senator Ted Cruz]

You know, I don't think so. I think the Supreme Court decision was unfortunate. I think it's going to cause a lot of chaos, a lot of litigation. I think you're going to see billions of dollars of litigation drag on for years. That's unfortunate.

[Joe Kernan]

Your Constitution, Constitutional lawyer.

[Senator Ted Cruz]

I think the decision was wrong.

[Joe Kernan]

You think it was wrong.

[Senator Ted Cruz]

As a statutory matter, the statute IPA is the statute they were interpreting gives the President the power to regulate importation. Here's what the Supreme Court said. The President can ban imports. He can say no German automobiles are allowed in the US but he can't impose a dollar tariff on it. And I think Justice Kavanaugh in dissent had the better of the argument. I think Justice Thomas in dissent had the better of the argument that with foreign policy, this is a power of the President. But here's the point that really matters. The Supreme Court decision I don't think is going to have much consequence other than a bunch of chaos and litigation, because there are a host of other federal statutes that let the President impose basically the same tariffs. And so in terms of our trading partners, I don't actually expect the other countries to do a whole lot different. You'll have individual companies filing lawsuits, but the President will be able to use that same leverage. And as Justice Kavanaugh said in dissent, he said, look, the court basically said this was a box checking exercise and the President checked the wrong box, that he used one statute when he should have used another. I don't think it's going to change the fundamental economic policy.

[Joe Kernan]

What will we hear tonight about Iran and the President's objectives or plans there?

[Senator Ted Cruz]

Look, I think the President's leadership on Iran has been incredible. The decision to bomb Iran's nuclear facilities was the single most important national security decision. It took enormous cojones, as Cubans would say.

[Joe Kernan]

Exactly.

[Senator Ted Cruz]

Look. And it was a spectacular success. We are at a moment, Joe, where in the next six months we could realistically see the regimes in Iran, Venezuela and Cuba all fall, and we could see them replaced with governments that want to be friends with America. Now, let me be clear. There are a thousand ways that can go wrong. So I'm not being Pollyannish about that, but if that happened, that would be the biggest geopolitical shift since the fall of the Berlin Wall. And so tonight I expect the President to talk about historic successes over this last year, because it really has been an extraordinary year, both in national security and foreign policy, but also in domestic policy.

[Joe Kernan]

How would you, if you were The President, how would you approach Iran? Is it a limited, another limited strike to try to prevent nuclear enrichment and to say we're serious? Do you go beyond that? Do you hope that somehow, organically, it happens? Because when you break it, when you own it and you break it, we know what's happened in the past.

[Senator Ted Cruz]

So I talked to the President last week about this and what I urged the President, I said, listen, the regime has never been weaker. They are teetering. There are real world consequences to losing a war. The Ayatollah lost to Israel in the 12 day war. They are weaker. The regime is weaker than it ever has been. And what I've urged the President, do not miss this opportunity. If the Ayatollah is removed from power, it will make America much safer. This is the leading state sponsor of terrorism in the world. The Iranian regime is responsible for murdering hundreds of American servicemen and women. They fund terrorists all over the world. And so what I've urged the President is, number one, support the protesters and arm the protesters. Let the people of Iran give them the ability to. To overthrow their government. And number two, I think there's a very real possibility we will see potentially in a matter of days, limited strikes. What we're not going to see is boots on the ground. We're not going to see a ground presence of American troops there. But I think there's a real possibility of targeted strikes that are designed to support the Iranian people who are protesting. Not designed to put America in the middle of it, but designed this regime. The Ayatollah, when he chanced death to America, I believe it.

[Joe Kernan]

We have. We have seen new highs in the stock market, although obviously yesterday was difficult. GDP might have been higher if there hadn't been a shutdown, but it's positive and expected to by some this year, with some tailwinds to be better than it's been in recent memory. Employment is basically, we're at full employment at 44.3%. Inflation's above the Fed's target, but it's 2.4 or so and down a little bit from from when the President came in. The borders closed. There's yet yet polls, whether you believe them or not, or just the general feeling of Americans about affordability or about the direction of the country. Can you explain. But the disconnect in the Biden administration, I didn't really agree with that because wages fell. Real wages fell during the Biden, so I understood why people felt that. But wages are rising. Real wages are rising Again. Why the malaise?

[Senator Ted Cruz]

Why the aids look, on the question of affordability, people are understandably frustrated. We had four years of Biden inflation. That hasn't disappeared. The Trump administration has significantly slowed inflation, but it hasn't reversed four years of damage from Biden. That makes life more expensive for the average working American. Now there are areas like gas prices have gone down significantly. That's a major area of success. I think the Trump tax cuts that we passed last year, many of them are going to go into full effect this year. That's going to be beneficial. I believe we're going to see significant new investment in the US As a result of the President's diplomacy. I think that's significant. Illegal border Crossings are down 99%. Murder rates are down 20%. Drug overdose deaths are down 20%. What I expect tonight to be, I hope, is for the President to give a calm, sober assessment. These are the successes. We're winning. Don't pay attention. The media loves attacking the president. They hate the man. But if you look at the substance of what we're achieving, and I'll tell you, Joe, what I think will get a lot of attention tonight are two provisions that I authored in the tax bill last summer. Number one, school choice, the biggest federal school choice provision in American history. And number two, the Trump accounts. I think those are the two most far reaching provisions. School choice is going to unleash tens of billions of dollars of scholarships for kids all over America. Millions of kids are going to escape failing schools and have hope because of it. And the Trump accounts, you're going to see literally trillions of dollars that our kids are going to be able to invest. It's going to make a whole new generation of capitalists.

[Joe Kernan]

Andrew.

[Andrew Sorkin]

Senator, by the way, I agree with you and I know the work that you've done with Brad Gerstner and others, and it's, it's, it's really quite remarkable. I had a different question just about a video that's gone viral around Cash Patel. And I know you've been a very big supporter of Cash Patel, and yet we saw him at the Olympics with the team. And by the way, that was an amazing game. And I think we're all, I mean, it was one of those great moments for America as well. Having said that, you know, Cash Patel back in 2023, went after Chris Wray, who was the former FBI director and said he, quote, doesn't need a government funded G5 to go to vacations. Maybe we ground that plane $15,000 every time it takes off. Just a thought. And so I'm curious what your view is of Cash Patel's use of that plane not just to the Olympics, but. But around. Around the country. Because there's been a lot of questions about it.

[Senator Ted Cruz]

Well, listen, I'm a big fan of Cash Patel. I think he's doing a good job. I mentioned just a minute ago, murder rates across the country have dropped 20%. Violent crime is down. Terrorists are being arrested. Gang members are being arrested. Rapists are being arrested. Child molesters are being molested. That's a real record of success. Why was Cash at the Olympics? Because the FBI has an important job protecting security there. And I gotta say, you know, it's interesting. You see Democrats right now who are paying focus groups saying, how do we connect with. With real people? How do we not seem like a bunch of pufta elitists? And then, then they turn around and get really mad. I can't believe Cash Patel was drinking a beer and celebrating with. With the American hockey team after winning the gold. You know what? I would have loved to have been in that locker room. And I don't know a guy on planet earth that wouldn't have been thrilled to be celebrating. I got to say, the American hockey team, that was 46 years after the Miracle on Ice, that was a great victory. And I was cheering along with Cash. And, you know, it was awesome when Cash called President Trump, put him on the cell phone. The president congratulated that team. I hope they come tonight. He invited them to come tonight. It was amazing. And look, Jake Hughes with the flag over his shoulder, the bloody teeth. That is one of the iconic moments in sports and history. And I think, Cash, congratulations on having the chance to see celebrate with you. I'm jealous and wish I was there.

[Joe Kernan]

All right, we're going to. I had to. I was like, wow, I wish anyone would have wanted to have been there. That was just. It was really something. It was.

[Senator Ted Cruz]

It's history.

[Joe Kernan]

It happens once every 46 years. That's how long you have to. I can't wait for the next one. Both of us. Right, Senator, thank you. Thank you for being on.

[Cameron Costa]

Next on Squawk Pod Democrat Senator Maria Cantwell, ranking member on the Senate Commerce Committee, weighs in on all that tariff litigation that's likely to ensue. Plus how she's viewing the media bidding war for Warner Bros. Discovery.

[Senator Maria Cantwell]

I want to go back to the eyeball world where you rent my eyeballs. I watch a lot of advertising, but I get this free content.

[Cameron Costa]

We'll be right back.

[Schwab Announcer]

Trading at Schwab is powered by Ameritrade, giving you even more specialized support than ever before. Like access to the trade desk. Our team of passionate traders ready to tackle anything from the most complex trading questions to a simple strategy. Gut check. Need assistance? No problem. Get 24. 7 professional answers and live help and access support by phone, email and in platform chat. That's how Schwab is here for you to help you trade brilliantly. Learn [e-mail] trading Ugh.

[Senator Maria Cantwell]

Could this vintage store be any cuter?

[Cameron Costa]

Right.

[Joe Kernan]

And the best part, they accept Discover.

[Senator Maria Cantwell]

Except Discover in a little place like this?

[Senator Ted Cruz]

I don't think so, Jennifer. Oh, yeah, huh?

[Joe Kernan]

Discover is accepted where I like to shop. Come on, baby.

[Cameron Costa]

Get with the times. Right.

[Joe Kernan]

So we shouldn't get the parachute pants. These are making a comeback, I think.

[Senator Ted Cruz]

Discover is accepted at 99% of places that take credit cards nationwide. Based on the February 2025 Nielsen report. A KFC tale in the pursuit of flavor. The greatest insult the colonel ever suffered was being served a wrap that was just a snack by a friend. So he took two crispy tenders, lettuce, tomatoes, and pepper mayo and wrapped them in a soft tortilla. It wasn't a snack, it was a meal. He called it a twister and never called that friend again. The Colonel lived so we could chicken the twister. Now back at KFC Classic or with bacon. Also try it spicy. It's finger licking.

[Andrew Sorkin]

Good prices and participation may vary.

[Cameron Costa]

You're listening to Squawk Pod.

[Andrew Sorkin]

You're watching Squawk Box right here on CNBC. I'm Andrew Sorkin along with Joe Kernan in Washington, D.C. becky is off today

[Joe Kernan]

fly from Capitol Hill. Joining us now, Senator Maria Cantwell of Washington. She's a ranking member of the Commerce Committee. Andrew, listen up, my friend. All the senator wanted to talk about was, was media. And what we were talking about earlier with, with Netflix and with Warner and everything else, and she's, she was. I learned a few things talking to her. Just so you want diversity. This is important. You're worried about Hollywood. I mean, all the things that we talk about constantly. So it's not just us that are obsessed with this.

[Senator Maria Cantwell]

Well, when I heard you earlier, I thought, you know, this is great. These, this is the thing that we have to do is unleash the media to talk more about this. Sometimes I think the media feels suspect because of your ownership. But I met with the Versant CEO. I like your. I met with Mark. I like your game plan. I like where that's going. But in the world of consumers. The interests are we don't want everything behind a paywall, and we certainly don't want all the sports behind a paywall. The consumer is getting hammered on sports content constantly being put behind a paywall. If you think about where Amazon went with Thursday Night Football, all of a sudden you thought you could watch Thursday Night Football, and then all of a sudden you can't if you don't have an Amazon prime account. So, and then when you think about local broadcasters, so much of the revenue comes from sports, and if it's all going to be put behind a paywall, how much are the broadcasters going to be able to get from that revenue? So I want to go back to the eyeball world where you rent my eyeballs. I watch a lot of advertising, but I get this free clock content. And so this is a big discussion, and I hope you guys talk more about it, because it's an important issue.

[Joe Kernan]

That's all we need, Andrew, is for someone to tell us to talk more about it. Don't you think?

[Andrew Sorkin]

We very happy to talk more about it. What do you think should happen? Which deal does she like?

[Senator Maria Cantwell]

Which one it's more about, you know, so we had a hearing in the Commerce Committee about this, and. And literally the discussion was more, you know, what are the requirements that you should put on? And a couple of the witnesses said, yes, you should make sure that local broadcasters get access to content in a way that keeps that a healthy model and that consumers constantly have broadcast stations in their region so that we can, you know, get localized news. That's an important aspect of the debate, too. But I think for the big behemoth that's in the room is sports. And more and more of this content is being put behind paywalls, whether it's ESPN or Amazon or getting subscriptions to it, and it's affecting the consumer.

[Joe Kernan]

Well, Senator, I got just one quick

[Andrew Sorkin]

one related to all of this. I'm curious, actually, both on the content of it and the impact of it. I'm curious what you thought of what Susan Rice, who's on a board member of Netflix, said about the idea that Dems would come back later if. When they. If, if and when they come back into power and look at a lot of these types of deals. And then the President Trump's response to that, which implied potentially that, I don't know, I don't want to push it too far, but I think a lot of people read that as a threat that if she remains on the board, that he might block that deal. And so I'm curious on both the comments themselves of what she said and what the President said in reaction.

[Senator Maria Cantwell]

Well, I think you guys hit it this morning. This is going to be an ongoing discussion. And look, I'm a huge fan of content creation by Hollywood, and I certainly don't want to see that content creation ruined in some sort of like, tech formula that's all about just putting out a lot of content and then just how much money can we get for it. I mean, I want to see true competition in content creators creation. But I think, you know, so this is going to continue, right? This, this notion of are people just going to get more and more power and then put more and more content behind paywalls and then destroy the engine of what is local journalism? I'm going to fight against that. So I guarantee you there's going to be a lot of dialogue about that in the future. But he shouldn't have threatened her and he shouldn't threaten them. And we should really just like this little debate that's happened in the last 20, 24 hours. You know, Netflix CEO basically saying, hey, put up or shut up. If you want to want the deal, increase the offer. So that, that's the kind of real competition that we want to see, not this verbal, you know, jousting of, you know, threat of power.

[Joe Kernan]

Senator, you, you, you'd like some clarity on what happens with, with all the money collected. Yes, yes, I know. You said asking Secretary Besson. I think his, his answer was the lower courts are going to have to work through this.

[Senator Maria Cantwell]

I don't think Costco and FedEx are waiting for the lower courts. And so the issue here is what about the smaller people that don't have the kind of bulk that FedEx or Costco does to bring a suit? I want to make sure that at least they share with Congress what is the amount of money that was collected. They know, they know the amount of money that was collected and they, they have that data and information. And we could be giving some relief to those small businesses and manufacturers. So when you think about ppp, what happened during COVID the bigger organizations who were more organized obviously got access to funds, but the smaller companies who were really affected, you know, didn't, didn't fare as well or as effectively. We tried to correct that. So here I want to make sure that the small businesses really try to get some relief to them.

[Joe Kernan]

And what would you like to hear on the tariff issue tonight from the President?

[Senator Maria Cantwell]

In a dream world? In a dream world, I would love the President to say, I hear the courts and I'm going to go to Congress and I'm going to have a discussion with them about trade and about how to get markets open, about how to get soybeans into Asia or apples from our state or you know, what to do.

[Joe Kernan]

You would say there's been some intransigence on many issues with Congress. Congress. And it's up to him.

[Senator Maria Cantwell]

Oh, I think every president, you know, gets frustrated, but I think the American people want us to work together and accomplish things. And so America is in this information age transition and the global economy outside the United States is getting bigger and we want more access to markets. And so when you look at the first Trump administration and this play, it didn't work out so well. And I would say this play because literally you're just making things artificially more expensive for consumers.

[Joe Kernan]

But the tariffs were left on in the Biden administration. Right.

[Senator Maria Cantwell]

I didn't agree with that policy, but to me we should be building alliances around the globe and we've supported policies, the trade policies that the Bush administration put through and those were challenges. I'm sure not every Democrat supported them. But those trading partners, particularly in South America, America and Korea, have become bigger markets for the United States. So at a time when 95% of consumers are outside the United States, why aren't we doing more to access those markets? And then why are we making things artificially more expensive for the American consumer? And that's what's just happened. So me, I want to make airplanes, obviously we want to make software, we grow great agricultural products. But we've never recovered the US Markets, never recovered the soybean market that was lost in the first Trump administration.

[Joe Kernan]

The private sector obviously is a big deal in Washington and hopefully it stays that way. I don't know, sometimes we hear things, maybe some self inflicted things that either Seattle or Washington has done. But in general the private sector needs to be vibrant. Do you look at the Democratic Party at this point and do you ever feel like maybe the geographic center has moved too far to the left in terms of anti corporate?

[Senator Maria Cantwell]

I think the issue of our age is that the information age is going to cause disruption. I would have said to you that you always, always, always, always have to talk about the economy and your vision of that future. But in the information age you need to double down or triple down on what you are going to do in that era to secure jobs for working class people and grow the middle class again. And somehow I think our party gets lost on talking about that in A more robust way. If we're not really growing the middle class in America, how can we say that's the American dream? And so we have to be more specific about how we think we're going to grow those middle class jobs. But I think tonight the issue is going to be about, well, why are cost and inflation not keeping pace? Right. I mean why are they outpacing what

[Joe Kernan]

Americans can do to get real wages are rising. And that didn't happen, unfortunately, because of the early Covid. Yeah, well, Covid and the response to Covid as well. Andrew.

[Andrew Sorkin]

Hey Senator, we've been also having a big debate over the past week, you know it well in your state about this millionaires tax and what it means between Amazon and Microsoft and Starbucks and the like. What do you, what do you make of that?

[Senator Maria Cantwell]

Well, I think we're going to have to constantly be competitive in what it takes to, you know, like when we think about the big beautiful bill here, I thought we gave too much revenue away and obviously blew a big hole in the deficit that was really causing more problems for the future. So I think when you think about how you grow, I think you have to think about how are we going to be competitive with the rest of the rest of the world and how are we going to compete. And you know, I like our innovation economy in the Northwest. I think it's a robust innovation economy thanks to a lot of people, you know, Paul Allen and many others who made investment. But we're going to have to continue to attract the that for the future. I mean some would say we need to spread it around a little more, you know, spread it around to Spokane or spread it around to other places because it's you, you have, we have a lot of innovation.

[Andrew Sorkin]

Do you do but do you fear that the wealthiest in Seattle and in your state will ultimately leave the state? We've obviously seen this conversation play out now in California. You're seeing it play out in New York, you're seeing it play out in so many different places. Places. Well, there seems to be a mobility to people that maybe didn't exist, you know, a decade or two ago.

[Senator Maria Cantwell]

Yeah, well, for sure. But also Andrew, outside the United States too. So what is the competition for us to continue to attract innovation? So I want innovation to happen everywhere because if I'm going to we're going to compete with China. Innovation has to happen more than just Seattle and Silicon Valley. But I do think that Seattle and the governor and the state legislature is going to have to put pen to paper and figure this out and really figure out the math. And so I know they're going through that process now. And so we'll see what the governor does.

[Joe Kernan]

We got to go. Andrew, if we need a media type from Washington, I think we found our. We found someone that. You haven't been on the show very many times, have you?

[Senator Maria Cantwell]

No, but I'm happy to talk about this because it's a growing issue and it's not going away, but we know it more from local journalism. We, we need. When you think about information, you have to have real competition to create perfect information. Right? And so the less competition you have, the less perfect information. But you guys are in the information business, so let's, let's figure out how to have true robust competition.

[Joe Kernan]

Senator, thank you, Pearl Jam fan.

[Senator Maria Cantwell]

Yeah, yeah. Yes.

[Senator Ted Cruz]

Yes.

[Joe Kernan]

Me too. Okay. All right. Good. Good to have you on. Thank you.

[Cameron Costa]

That's Squawk Pod for today. Thank you for listening. Squawk Box is hosted by Joe Kernan, Becky Quick and Andrew Rossorkin. Weekday mornings on cnbc starting at 6 Eastern and going all the way until 9 to get the best interviews and analysis from that three hour TV show right into your ears. Follow Squawkpod wherever you get your podcasts. We'll meet you right back here tomorrow for a post State of the Union episode. Have a great day.

[Joe Kernan]

We are clear.

[Andrew Sorkin]

Thanks, guys.

[Schwab Announcer]

Trading at Schwab is powered by Ameritrade, giving you even more specialized support than ever before. Like access to the trade desk. Our team of passionate traders ready to tackle anything from the most complex trading questions to a simple strategy. Gut check. Need assistance? No problem. Get 24. 7 professional answers and live help. And access support by phone, email and in platform chat. That's how Schwab is here for you to help you trade brilliantly. Learn more at schwab. Com Trading.