Texas Flash Floods, Trump's Next Priorities, Buy Now-Pay Later and Credit Scores.

Summary

Up First from NPR – July 5, 2025

Hosts: Leila Fadel, Steve Inskeep, Michel Martin, A Martinez, Ayesha Rascoe, Scott Simon
Duration: 10 minutes
Release Date: July 5, 2025

NPR’s Up First delivers the essential news to kickstart your day. In this episode, hosts delve into three major stories: the devastating Texas flash floods, President Donald Trump’s recent legislative achievements and future agenda, and the implications of Buy Now-Pay Later (BNPL) services on credit scores.

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1. Texas Flash Floods: A Humanitarian Crisis

Timestamp: 00:02 – 05:47

A severe weather event struck the Texas Hill Country, unleashing months' worth of rainfall within mere hours and resulting in catastrophic flash floods. The tragedy has claimed at least two dozen lives, with many more still missing.

Key Highlights:

• Immediate Impact:
  Host Ayesha Rascoe opens with the grim news: “Heavy rains and flash flooding in the Texas Hill Country” (00:02). Scott Simon emphasizes the scale: “At least two dozen people are dead after the region saw several months' worth of rainfall in just a few hours yesterday” (00:06).

• Human Stories and On-the-Ground Reporting:
  Sergio Martinez Beltran, reporting from Kerrville, Texas, paints a harrowing picture: “This is one of the worst floods in the history of Texas... The Guadalupe River rose about 26 feet within 45 minutes” (02:32). The devastation includes washed-away resorts, summer camps, and camping sites, turning a popular vacation area into a disaster zone.

• Personal Tragedies:
  The loss extends to communities with deep ties to the area. Tanya Powell’s 21-year-old daughter, Ella Rose, is among the missing, alongside other college seniors who were attending a Christian summer camp. Beltran shares an emotional account of families at a reunification center: “Parents who were able to meet with their sobbing children and the hugs they gave each other... full of love and fear” (03:23).

• Rescue Efforts and Ongoing Challenges:
  Governor Abbott outlines the extensive rescue operations involving over 500 emergency personnel, including the Texas National Guard and state troopers. Despite over 2,237 rescues, significant areas remain without power or Wi-Fi, complicating efforts to locate and aid those still unaccounted for (05:04).

• Conclusion:
  The segment underscores the profound loss and the relentless efforts to save lives amidst unprecedented flooding.

Notable Quote:

“The river that runs through the area, the Guadalupe River, rose about 26ft within 45 minutes... this is one of the worst floods in the history of Texas.” — Sergio Martinez Beltran (02:35)

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2. President Trump's Legislative Triumph and Future Priorities

Timestamp: 05:56 – 10:04

President Donald Trump celebrated the enactment of his substantial legislative package, dubbed the “big beautiful bill,” amidst a Fourth of July event. However, the episode explores the complexities and potential challenges ahead.

Key Highlights:

• Legislative Achievement:
  Scott Simon introduces the topic: “President Donald Trump's biggest beautiful bill... it's the biggest bill of its type in history” (05:56). The bill encompasses tax cuts, increased funding for border security, and significant reductions in programs like Medicaid.

• Ceremony and Political Messaging:
  NPR White House correspondent Danielle Kurtzleben describes the signing ceremony: “The event was outside the White House... Trump came out with Melania, thanked the military, and then signed the bill surrounded by Republican Congress members” (06:30). The event doubled as both a patriotic celebration and a display of political strength.

• Trump’s Claims vs. Reality:
  Trump touted the bill as a “triumph of democracy” and asserted its popularity, declaring, “the most popular ever signed in the history of our country” (07:07). However, Kurtzleben provides a balanced perspective, highlighting concerns: “The bill could push nearly 12 million people off Medicaid... it would add $3.3 trillion to the debt” (07:33).

• Economic and Social Implications:
  The Congressional Budget Office (CBO) reported significant drawbacks, including fiscal impacts and disproportionate benefits to the wealthy. Additionally, the administration's stance on immigration enforcement remains contentious, facing protests and business opposition over potential deportations of workers (08:54).

• Tariff Policies:
  Trump’s tariff strategy remains a critical issue. Initially announcing broad tariffs, he later adjusted to a 10% temporary rate, with plans to negotiate specific rates with countries like the UK and Vietnam (09:29). The outcomes of these negotiations will directly affect American businesses and consumers through import costs.

Notable Quotes:

“It's the biggest bill of its type in history. We've never had anything like that before... the people are happy.” — Scott Simon (00:24)
“The bill could push nearly 12 million people off Medicaid... it would add $3.3 trillion to the debt.” — Danielle Kurtzleben (07:33)

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3. Buy Now-Pay Later Services: Shaping Future Credit Scores

Timestamp: 10:15 – 14:16

The rise of Buy Now-Pay Later (BNPL) services is prompting significant changes in how creditworthiness is assessed. FICO's decision to incorporate BNPL data into credit scores marks a pivotal shift in personal finance.

Key Highlights:

• Introduction to BNPL and FICO’s Update:
  Ayesha Rascoe introduces the topic: “The credit scoring company FICO recently announced it will add something new to some of its credit scores—data from Buy Now Pay Later Loans” (10:15). Adam Rust, NPR’s personal finance correspondent, explains that this integration aims to provide lenders with a more comprehensive view of a borrower’s financial behavior (10:32).

• Understanding BNPL:
  BNPL services allow consumers to split purchases into installments, often without interest. These services have surged in popularity, with 15% of American adults utilizing them in the past year, particularly among low and middle-income individuals, minorities, women, Gen Z, and Millennials (11:24).

• Impact on Credit Scores:
  Incorporating BNPL data means timely payments can boost credit scores, while missed payments could harm them. This transparency helps prevent scenarios where lenders extend more credit than consumers can manage, addressing a previously significant blind spot (12:19).

• Consumer Behavior and Financial Health:
  While many use BNPL sporadically to manage cash flow or avoid credit card interest, there are risks. Approximately a quarter of BNPL users made late payments in the past year, potentially affecting their credit adversely (13:19). Additionally, the lack of protections compared to traditional credit cards has led to consumer issues, such as disputes over refunds (14:08).

• Regulatory Environment:
  The Consumer Financial Protection Bureau (CFPB) had proposed rules to treat BNPL lenders similarly to credit card providers, enhancing consumer protections. However, enforcement of these rules was rolled back in May under the Trump administration, leaving some protections in flux (14:08).

Notable Quotes:

“If you do that, it should help your credit. But if you miss payments, that can now ding your credit.” — Adam Rust (13:00)
“Most people use Buy Now Pay later sporadically and not as their primary form of credit.” — Adam Rust (13:27)

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Conclusion

This episode of NPR’s Up First provides a comprehensive overview of pressing issues: the heartbreaking floods in Texas, the multifaceted implications of President Trump’s legislative actions, and the evolving landscape of consumer credit through BNPL services. Through detailed reporting and expert insights, listeners gain a nuanced understanding of the challenges and developments shaping the current socio-political and economic environment.

Notable Contributors:

• Sergio Martinez Beltran: On-the-ground reporter in Texas
• Danielle Kurtzleben: NPR White House Correspondent
• Adam Rust: Consumer Federation of America Representative

Support NPR's Reporting:

Subscribe to Up First+ for an ad-free experience and to support local NPR stations: plus.npr.org/upfirst

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This summary is designed to provide a detailed and engaging overview of the episode for those who have not listened, capturing all key points, discussions, insights, and conclusions with proper attribution of quotes and clear sectioning.

Transcript

[Ayesha Rascoe]

Heavy rains and flash flooding in the Texas Hill Country.

[Scott Simon]

At least two dozen people are dead after the region saw several months worth of rainfall in just a few hours yesterday. I'm Scott Simon.

[Ayesha Rascoe]

I'm Ayesha Rascoe. And this is up first from NPR News. We'll have details on the situation in Texas in just a moment.

[Scott Simon]

Also, President Donald Trump's biggest beautiful bill had its ups and downs and now it's law. Promises made, promises kept, and we've kept them. This is a triumph of democracy on the birthday of democracy. And I have to say that the people are happy. So what may be next on Trump's agenda?

[Ayesha Rascoe]

Also, how buy now, pay later loans could impact credit scores.

[Scott Simon]

So please stay with us. We have the news you need to start your weekend foreign.

[Laurel Wamsley]

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[Ayesha Rascoe]

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[Scott Simon]

In Central Texas yesterday, heavy rains and flooding overwhelmed communities and left at least 24 people dead.

[Ayesha Rascoe]

Many more are missing, including a group of girls who were taking part in a Christian summer camp and pere.

[Scott Simon]

Sergio Martinez Beltran was in Kerrville, Texas, last night, one of the worst areas affected. Thank you for being with us, Sergio.

[Sergio Martinez Beltran]

Hi, thank you.

[Scott Simon]

What's the latest information?

[Sergio Martinez Beltran]

So this is one of the worst floods in the history of Texas, just so you have an idea, Scott. The river that runs through the area, the Guadalupe river, rose about 26ft within 45 minutes, according to state officials. And this happened during the early hours of Friday when many were asleep. Texas officials say at least 24 people have died. At least 20 people remain missing. And the devastation in this area, which is known as the hill country, is incredible. This is an area where lots of people vacation. There are resorts, summer camps, many RV parks and tent camping sites. But many of these places have been washed away.

[Scott Simon]

And Sergio, you went to a reunification center last night and was able to speak with some of the people who are still waiting to hear from loved ones, I gather.

[Sergio Martinez Beltran]

Yeah, I got there around 10pm last night and there were more than 100 people at this elementary school which served as a reunification center in Kerrville. There were parents who were able to meet with their sobbing children and the hugs they gave each other, it was so moving. They didn't want to let go. Those hooks were so tight and full of love and fear. And then there are folks who have yet to hear from their kids. That's the case of Tanya Powell. Her 21 year old daughter Ella is missing.

[Scott Simon]

She was near the camp in a.

[Ayesha Rascoe]

House with three of her friends. They go to school and they're college seniors in San Antonio.

[Scott Simon]

Yeah. And they were here for the weekend.

[Ayesha Rascoe]

And we lost touch with them about 4am and we haven't gotten any word from them.

[Sergio Martinez Beltran]

I checked in with Powell this morning and she has yet to hear back from Ella Rose.

[Scott Simon]

And of course we've, we've heard about the young campers who may have gone missing. What do we know about this place? Camp Mystic?

[Sergio Martinez Beltran]

Yeah, they are from Camp Mystic. It's a private all girls Christian summer camp. It's been operating in this area for nearly 100 years. So it's a big part of the community here and it's the type of place where the campers become counselors when they grow up. Angela Trafton's granddaughter was at the camp. Thankfully, she is alive.

[Scott Simon]

You're so grateful.

[Danielle Kurtzleben]

This is her seventh year. I don't know that she'll ever come.

[Sergio Martinez Beltran]

Now, we still don't know how many of the campers are missing, but many parents have gone on social media to post photos of their missing children and ask for help finding them.

[Scott Simon]

And Sergio, last night Governor Abbott talked about search and rescue efforts. What did he say?

[Sergio Martinez Beltran]

Yeah. So Scott, this is a multi agency effort and it's 24 7. According to Governor Abbott, at least 500 emergency personnel are participating in the search and rescue efforts, including members of the Texas National Guard and state troopers. At least 2, 237 people have been rescued so far and the majority of them were rescued by helicopters. Now, Texas officials say some of the areas affected are without power or WI fi. So there might be people in those areas that still need to be rescued. Governor Abbott says the state will continue to seek for anybody who is not accounted for.

[Scott Simon]

NPR Sergio Martinez Beltran on the scene in Texas. Sergio, thanks so much for being with us.

[Sergio Martinez Beltran]

You're welcome.

[Ayesha Rascoe]

Yesterday at the White House, President Trump wrapped a July 4th celebration around his signing of the so called big beautiful bill.

[Scott Simon]

It's never happened before. It's the biggest bill of its type in history. We've never had anything like that before. Nothing like that they thought would be possible to get passed. It's a package that'll cut taxes, add more funding for border security and also make cuts to major programs like Medicaid. NPR White House correspondent Danielle Kurtzleben joins us. Danielle, thanks so much for being with us.

[Danielle Kurtzleben]

Yeah, good morning, Scott.

[Scott Simon]

And please tell us about yesterday's ceremony.

[Danielle Kurtzleben]

Well, the event was outside the White House at a picnic for military families, including those who participated in Operation Midnight Hammer in Iran. At that event, B2S flew overhead. Now, those are the planes that carried those massive bombs targeting those underground nuclear facilities in Iran. Trump came out on a balcony with first lady Melania Trump and he thanked the military members. But he quickly transitioned to celebrating his new policy bill. And then he came down from the balcony to sign it surrounded by Republican Congress members.

[Scott Simon]

A Fourth of July event, to be sure, but also a celebration of the administration.

[Danielle Kurtzleben]

Oh, very much. That was also the case, by the way, in Iowa on Thursday night, too. I was there. It was in Des Moines. And it was meant to be a celebration for America, but really it looked like any Trump campaign rally, which is to say it was deeply partisan. And there too, he said he had a couple of weeks of winning that have just passed after all Congress passed that new major domestic policy agenda, albeit narrowly. And he had that major strike on Iran and then a ceasefire that is holding at the moment. And then there are also numbers showing that border crossings are way down. And he celebrated that on his trip to Florida this week to a new migrant detainment camp which the administration is calling Alligator Alcatraz.

[Scott Simon]

The administration points all of this and says it amounts to a lot of winning. Is there more to consider?

[Danielle Kurtzleben]

Well, absolutely. For example, on Iran, it's still unclear how much of Iran's nuclear capabilities were truly destroyed. And it's unclear if or when they would start rebuilding their program on that so called big beautiful bill that could push nearly 12 million people off Medicaid, according to the Congressional Budget Office or cbo, which has also found that the bill would benefit the wealthy most. Now, Democrats were very worried about that, as were some Republicans. And some Republicans were also upset about how much the bill would add to the debt. According to the CBO, it would add 3.3 trillion. That is a lot. And then there's the fact that it's just not that popular, according to multiple polls. Now, Trump, for his part, simply dismisses that polling. Here he was talking yesterday.

[Scott Simon]

We just have to look forward, fellas. Look forward and just say what it is, because it's the most popular ever signed in the history of our country. Danielle, you mentioned the Florida detention center. What challenges are there for President Trump on immigration right now?

[Danielle Kurtzleben]

Well, as you know, immigration has been maybe the central issue for Trump since day one. And so people who vote for him vote for tighter immigration policy. But in practice, this administration's approach to immigration enforcement, it has faced a lot of opposition around the country, for example, in the form of protests. And also, some businesses are just concerned he'll deport their work workers. And it's uncertain whether or to what degree that will happen. Trump has, in fact, waffled, for example, on whether he will ease up on raids on places like farms which rely on a lot of immigrants.

[Scott Simon]

And what about tariffs?

[Danielle Kurtzleben]

Well, he said he plans to make a lot of tariff moves in this next week. But first, let me remind you of where we are. In early April, Trump announced tariffs on most countries. Then he backed off and set those tariffs at 10% temporarily. He said that on July 9, the rates would jump back up, but then before then, he would negotiate rates country by country. Well, July 9th is coming, and he's negotiated rates with two countries, the UK And Vietnam. So now he says he'll send out letters simply notifying countries of their tariff rates. So soon we're going to find out how much American businesses and likely consumers will be paying for imports.

[Scott Simon]

NPR's Danielle Kurtzleben. Thanks so much, Danielle.

[Danielle Kurtzleben]

Thank you, Scott.

[Ayesha Rascoe]

The credit scoring company FICO recently announced it will add something new to some of its credit scores. Data from Buy Now Pay Later Loans.

[Scott Simon]

Those are the loans that allow shoppers, usually online, to break up a purchase into installments, a way to pay that's become very popular.

[Ayesha Rascoe]

So how will this affect people's credit? NPR personal finance correspondent Laurel Wamsley is here to talk us through it. Hey, Laurel.

[Adam Rust]

Hey, Aisha.

[Ayesha Rascoe]

So I know a lot of people are using Buy Now Pay Later. I use it. What is FICO doing here?

[Adam Rust]

Yeah, so a FICO score tells lenders about your credit worthiness. Lenders Use it to decide whether to offer you a loan or a credit card, and at what rate. Now, right now, that score doesn't include any data about any Buy now, pay later purchases. Now, two of FICO scoring products will incorporate that data starting in the fall. And as you said, these payment schemes are ubiquitous. Now. When you're buying something online, if you're buying a pair of sneakers at checkout, next to the credit card card box, you'll see something that says, or pay in four installments with a service like Affirm or Klarna. So I asked Julie Mae at FICO why the change? And she said it's because buy now, pay later.

[Danielle Kurtzleben]

It's becoming a really big part of how people are managing their finances. And so FICO wanted to be able to manage and reflect that shift in the FICO score.

[Adam Rust]

And it has really grown in the last few years. Last year, 15% of American adults used Buy now, pay later.

[Ayesha Rascoe]

Okay, so who's in that 15%?

[Adam Rust]

Well, according to research at the Federal Reserve, it's more common among low and middle income folks, black and Hispanic people, and women. It's also more common among Gen Z and Millennials. And they say they're using it for a few reasons. Number one is just to spread out payments. A common format is breaking the cost into four flat payments with no interest if you pay on time. Some people are even paying their grocery bill this way. Other reasons folks are using this is to avoid credit cards and paying interest. And some said it was just the only way they could afford to make their purchase. But typically, these loans are pretty small, averaging $142 in 2022.

[Ayesha Rascoe]

So if these loans haven't been a part of credit scores, it seems like that would be kind of a blind spot for lenders.

[Adam Rust]

Yeah, it has been. Here's how Adam Rust at the Consumer Federation of America explained it.

[Scott Simon]

In the past, when Buy Now, Pay later loans have not been reported to credit bureaus. That has meant that credit card lenders couldn't see the presence of that debt when they were making a decision on how much credit to offer. And that set up a possibility where a lender might offer more credit than a person could reasonably afford to repay.

[Adam Rust]

FICO says lenders have been wanting this kind of data to give them a fuller picture of people's finances.

[Ayesha Rascoe]

So what will be the impact of all of this on people's credit scores?

[Adam Rust]

Well, it'll depend on whether people make their payments on time. If you do that, it should help your credit. On the FICO scores that use it as long as the payment service shares that info with the credit bureaus. But if you miss payments, that can now ding your credit. And more people have been making late payments. Almost a quarter of people using these services made a late payment last year.

[Ayesha Rascoe]

So taking a step back, do we know how using Buy Now Pay later tends to affect people's finances more generally?

[Adam Rust]

Well, Rust of the Consumer Federation of America said several studies have shown that most people use Buy Now Pay later sporadically and not as their primary form of credit. Even though people are using these loans a lot like they use credit cards, though they don't offer the same protections, especially around disputes. For instance, consumers have had issues where they cancel an order but they can't get refunded by the seller and they're still on the hook for payments to these third party companies. The Consumer Financial Protection Bureau had actually issued a rule last year that essentially treated Buy Now Pay later lenders the same as credit card providers, giving consumers more protection. But in May, the bureau under the Trump administration said it was pulling back from enforcing that rule.

[Ayesha Rascoe]

That's NPR's Laurel Wamsley. Thank you so much for joining us.

[Adam Rust]

You're welcome. Thanks for having me.

[Ayesha Rascoe]

And that's up first for the 5th of July, 2025. I'm Ayesha Rascoe.

[Scott Simon]

And I'm Scott Simon. Today's podcast was produced by Elena Turek with help from Andrew Craig, Gabe o' Connor and Fernando Naro.

[Ayesha Rascoe]

Our editors are Alfredo Carbajal, Dana Farrington, Kara Platoni, Jacob Finston, Ed McNulty and Melissa Gray.

[Scott Simon]

Zoe Van Genhoven is our technical director with engineering support from a mighty fine crew, Tom Marketo, Nisha Hyness and Stacey Abbott.

[Ayesha Rascoe]

Our director is the ever swift and often angelic Michael Radcliffe.

[Scott Simon]

I'm waiting for the angelic. The bosses are nigh fixtures in our firmament, too, and strong acting senior supervisor editor Shannon Smooth Rhodes, executive producer Evie Hammerstone and Jim Raising Cain as our deputy managing editor.

[Ayesha Rascoe]

Tomorrow on the Sunday story, Americans no longer trust the same news sources and the result is misinformation and division. How did the first crack form in the media landscape? And how did it grow wide enough to split the country?

[Scott Simon]

And for more news interviews and analysis, you can tune into WEEKEND EDITION on your radio. Please go to stations.NPR.org to find your local station.

[Laurel Wamsley]

This message comes from Capital One. With the Capital One Saver card, earn unlimited 3% cash back on dining and entertainment. Capital One what's in your wallet? Terms apply [e-mail] you're listening to the.

[Ayesha Rascoe]

NPR Network, live from NPR News. I'm Lara Schmiese. A living, breathing record of your neighborhood, the country, the world, told by thousands of local journalists who live in the places where stories unfold, backed by a national newsroom that puts it all in perspective. Hear the whole country's story. Hear ways of thinking that challenge your own. Hear the bigger picture with npr. The House of Representatives has approved a.

[Adam Rust]

White House request to claw back two.

[Ayesha Rascoe]

Years of previously approved funding for public media. The rescissions package now moves on to the Senate. This move poses a significant, serious threat to local stations and public media as we know it. Please take a stand for public media [e-mail] thank you.