AMNA NAWAZ: Good evening.

I'm Amna Nawaz.

GEOFF BENNETT: And I'm Geoff Bennett.

On the "News Hour" tonight: The joy from# freed Isra.. long physical and mental recovery that lies ahead# and the memories of those who did not survive.

AMNA NAWAZ: Major news outlets refuse to sign new## restrictive Pentagon rules ordered# by Defense Secretary Pete Hegseth.

GEOFF BENNETT: And how the wealthy# are driving the current U.S.

economy,## often at the expense of working people.

HEATHER LONG, Navy Federal Credit Union:# They're spending on birthday parties and## lavish weddings and growing their spending# month after month.

And the rest of America,## the bottom 80 percent, they're cautious right now.

(BREAK) GEOFF BENNETT: Welcome to the "News Hour."

The fragile Israel-Hamas cease-fire faces new## tension tonight in part over the missing# remains of more than 20 Israeli hostages.

AMNA NAWAZ: All 20 living# hostages were released yesterday,## but they were supposed to be# accompanied by the bodies of## 28 deceased hostages.

Only eight have# been handed over as of this evening.

As Leila Molana-Allen reports again tonight from# Israel, caring for the living is now a priority,## while awaiting the delivery# of the dead is excruciating.

LEILA MOLANA-ALLEN: A tidal wave of emotion on the## day a nation had longed for and then# came the day after.

For many months,## the focus was on getting the hostages home.# Now it's switched to helping them heal.

The staff at Rabin Medical Center in Petach# Tikvah were ready, preparing for weeks,## or some might say for two long years.# Five of yesterday's 20 released hostages## landed here.

And head nurse Michal# Steinman was there to greet them.

MICHAL STEINMAN, Rabin Medical Center:# And I'm supposed to be very official,## I'm the head nurse and welcome to the# hospital.

It doesn't work.

I'm standing there,## and I'm feeling the river of emotions flow through# them.

Really, sometimes I'm feeling even all the## nation sits at my shoulders and I have to hug them# in order for all the people who want to do it.

LEILA MOLANA-ALLEN: Many more hugs# as they were reunited with family.## Having treated nine previously released# hostages and now experienced in what## Steinman calls captivity medicine, a skill# she hopes she will never need to use again.## They know the medical impact of years# without access to regular food and sunlight,## as well as possible physical injury from# Israel's aerial bombardment of Gaza.

Their physical condition was better than feared,## but psychological wounds# can take longer to unveil.

MICHAL STEINMAN: Only 24 hours# ago, they were in a tunnel,## and now they're here in sort of a paradise# which everyone give them whatever they want## and just surround them in love and hugs.

But# I think that, for the long term, for -- we## are expecting a lot of issues, post-traumatic# issues, depression issues and other issues.

And, slowly, slowly you work with# them.

A part of them will always## stay in Gaza.

You can't take# those two years of their life.## It's to learn how to live the best way# with those parts that they left there.

LEILA MOLANA-ALLEN: Things as simple as# giving recovering captives a choice over## when they take their medicines and what they# want to eat can help recover their sense of## identity.

But far more challenging, I ask her,# how can they ever begin to feel safe again?

MICHAL STEINMAN: Safe and trust# goes together.

And when they cry,## we hug them.

And when they say --# sometimes, if they scream about us,## it's OK.

We can bear this.

They understand# that we're going to be there no matter what.

LEILA MOLANA-ALLEN: Here and across Israel, it# was a day of unbridled joy, but not for everyone.

Every hostage, both living and deceased,## was supposed to be returned home yesterday.# But by the end of the day, just four of the## 28 bodies had been sent home.

Hamas said they# don't actually know where all the bodies are.## Israel said that's not good enough and has now# threatened sanctions, including keeping the## Rafah border closed and limiting humanitarian# aid into Gaza until everybody is returned.

When the small kibbutz of Nir Oz,# just four miles from Gaza's border,## was attacked by Hamas militants on October 7,# 38-year-old Tamir Adar, told his wife and young## children to hide and went out to protect his# home.

Narrowly managing to escape as dozens## of his neighbors were killed and kidnapped,# Tamir's younger brother, Nir, feared the worst.

NIR ADAR, Brother of Deceased Hostage:# My mom was hoping and praying that he's## alive.

And she tried to convince herself# that, even if he were badly wounded,## that he might survive.

And then I went on# the kibbutz to the spot where they were and## saw lots and lots of blood.

I did my one# plus one and I understood what happened.

LEILA MOLANA-ALLEN: They never saw him again.

Three months later, the family got# the news they dreaded.

Tamir was dead,## killed while fighting back.

Hamas took Tamir's# body to Gaza as a bargaining chip.

Tamir's elderly## Labrador Luli (ph) now clings to Nir, unable# to understand why her dad never came back.

Being unable to bring Tamir home# and bury him has made his loss## all the more unbearable.

The Adars feel# they have been living a life in limbo.

NIR ADAR: In the Jewish culture, it's extremely# important for us to bury our dead.

We cherish## life, but we also cherish the way someone is# ending his life.

And it's super important for## the family to have a place they can come# and pray and meet the one that they miss.

He loved his friends, his family.

We# used to play poker and watch football.## He was really a funny guy, an honest guy, and# a loyal guy.

He never hurt anyone.

On that## morning of October 7, he decided to put his# own needs behind and help the community.

And## he was actually truly a hero.

There were four# people who stood against 500 Hamas terrorists.

It's like from a scene in a movie.

Actually,# by doing that, they saved lots of life.

LEILA MOLANA-ALLEN: Even as we spoke, the# news came that Hamas promised to release## a few more bodies tonight and several# more tomorrow.

If Tamir is among them,## his family can finally heal.

But Nir says he won't# rest until every hostage is home.

And either way,## he will never forgive his government for# doing what he considers so little and so late.

NIR ADAR: I don't believe that bringing back all# hostages was first priority for this government.## They chose their political# considerations over saving lives.

LEILA MOLANA-ALLEN: Do you and# your family feel left behind?

NIR ADAR: Of course.

We feel like it's the# second time we are being betrayed by our own## government.

First time was on October# 7, 2023.

And the second time is right## now.

The Israeli society are celebrating in# the streets right now like it's all over.

They gave their bodies and souls to defend# Israel.

But, today, Israel is forgetting them.

LEILA MOLANA-ALLEN: The defining characteristic# of this hostage crisis has been the unity it## inspired, every Israeli identifying as the# family of all the captives.

Now, as the## country and the world look to the future, for the# first time, some have been left out in the cold.

For the "PBS News Hour," I'm Leila# Molana-Allen in Kiryat Gat, Israel.

AMNA NAWAZ: Well, with Hamas yet to return all the# hostage remains as part of this first phase of the## cease-fire deal, we turn now to Yousef Munayyer.# He's the head of the Palestine-Israel Program and## senior fellow at the Arab Center in Washington,# D.C.

That's a nonprofit research group.

Yousef, welcome to the show.

You heard Leila report there Hamas# say they don't know where .. bodies are.

What should we understand# about why they don't know and if they## will be able to make good on the# pledge to return all the remains.

YOUSEF MUNAYYER, Executive Director, Arab Center# Washington, D.C.

: Right.

Thank you for having me.

I mean, the first thing I would say is, this was# actually largely expected.

In the agreement that## was hammered out in Cairo prior to the peace# summit the other day, where Donald Trump met## with all these global leaders to declare an end# to the war, there was a detailed agreement about## this part of the process that the Israelis came# to along with the Palestinians and the mediators.

And part of that agreement actually delineated# what would happen with regards to the remains## of Israeli captives that were still inside Gaza.# And the Palestinians made it very clear at that## point that they're not in possession of all of# these remains and that it will take some time.

So a mechanism was established to share# information between the different parties, the## Palestinians on the ground, the mediators and the# Red Cross, about what they know of these remains,## where they are, how they're trying to reach# them.

And that was agreed upon at that point.

So what's concerning now is that the Israelis# seem to be acting as if this was a surprise,## when in fact we knew that this was going# to be an immense challenge.

Remember,## some 83 percent of structures in the Gaza# Strip have been partially or completely## destroyed, and there's very little heavy# equipment with which to do the searching.

So this is a big reason why# we're at this place today.

AMNA NAWAZ: So, Yousef, a lot# of questions, it sounds like,## on what's been publicly said# and what's privately agreed to,## but a lot of questions around whether or# not the remaining bodies will be returned.

I do want to ask you about what we have# seen just in the last couple of days on## the ground in Gaza, which is Hamas forces# in uniform standing guard in some areas,## also engaging in gun battles with people who# don't support them, and also horrifying video of## them rounding up and executing publicly people# who they accuse of collaborating with Israel.

Is all of that sanctioned# activity by the same Hamas## leadership that signed on to this cease-fire deal?

YOUSEF MUNAYYER: Well, I certainly cannot# speak for them.

They would have to speak## on that.

And I'm not sure that I have# seen any statement in relation to that.

What I can tell you is that extrajudicial# assassinations or killings are clearly violations## of international law in pretty much every# circumstance.

At the same time, the situation## in Gaza is extremely fragile and dangerous.

There# is no real authority in Gaza right now, except## for the pieces of what's left of the previous# Hamas authority on the ground in the Gaza Strip.

And there are a large number of vigilantes,## gangs, groups that have been involved# in other extreme activity, groups that## have been collaborating with the Israelis and# implicated in other human rights violations.

And we also have to keep in mind, over the last# two years, police stations in the Gaza Strip have## been targeted and destroyed.

Courthouses have been# targeted and destroyed.

Members of the civilian## police force in Gaza, some 1,500 of them, have# been killed by the Israeli military.

So it's not## surprising at this point that law enforcement# is not exactly present in the Gaza Strip or## behaving in the ways we would normally expect in# a situation where there is control and no war.

So, obviously, these scenes are very# disturbing.

And it's incumbent, I think,## on all parties to act within the bounds of# international law.

But it's going to be a## very difficult situation in Gaza until there# is an authority or government established## that can take the reins of# the situation on the ground.

AMNA NAWAZ: A very tenuous peace# deal in place and, as you note,## a lot of questions ahead, let alone# disarmament, governance down the line.

Yousef Munayyer from the Palestine-Israel# Program at the Arab Center in Washington,## D.C., thank you so much for joining us.

YOUSEF MUNAYYER: Thank you.

GEOFF BENNETT:## In the day's other headlines: President# Trump says U.S.

forces struck another## boat in the waters off Venezuela# that he claims was a drug vessel.

Mr.

Trump posted video of# the strike on social media,## saying all six people aboard were killed# and that no U.S.

forces were harmed.## It marks the fifth deadly strike in the Caribbean# against alleged drug traffickers, which the Trump## administration is treating as unlawful combatants# who can be met with military force.

Democrats and## those opposed to the administration's actions say# the strikes violate U.S.

and international law.

Also today, President Trump hosted Argentina's# President Javier Milei at the White House,## where he threatened to end U.S.

assistance to that## country if its internal politics# don't go the way Mr.

Trump wants.

DONALD TRUMP, President of the# United States: If he loses,## we are not going to be generous with Argentina.

GEOFF BENNETT: The president said he would not, in# his words, waste our time with further investments## if Argentina turns away from Milei's policies# and that country's upcoming midterm elections.

President Trump sees an ideological# ally in the right-wing leader,## who is up for reelection in 2027.# The visit comes after the U.S.## provided $20 billion in aid to Argentina.

The# administration denies that it was a bailout.

Later in the afternoon, President Trump# awarded Charlie Kirk with a posthumous## Presidential Medal of Freedom, the# nation's highest civilian honor.

(APPLAUSE) GEOFF BENNETT: Kirk's wife, Erika, accepted# the medal for her late husband at a ceremony## in the Rose Garden on what would have been# the conservative activist's 32nd birthday.

The man who set fire to the Pennsylvania# governor's mansion in April pleaded guilty## today to attempted murder and other charges.

As# part of a plea deal, Cody Balmer was sentenced## to 25 to 50 years in prison.

Governor Josh# Shapiro and his family were sleeping inside## when the 38-year-old scaled a fence and used beer# bottles filled with gasoline to start the fire.

No one was injured, but Balmer told# police he planned to beat Shapiro with## a small sledgehammer if he had found him.# Shapiro told reporters today the guilty## plea amounted to real accountability, and# he warned of the dangers of such attacks.

GOV.

JOSH SHAPIRO (D-PA): I# think it's important that,## in this time of rising political# violence, that none of us grow numb## to it or accept this as the normal course# of doing business for elected officials.

GEOFF BENNETT: Balmer turned himself in the day## after the attack.

His family has said# he suffers from mental health issues.

A massive Pacific storm is battering# the West Coast from California to the## Rockies with heavy rain, flash floods# and damaging winds.

The sudden storm## known as a microburst tore through# Tempe, Arizona, late Monday.

High## winds ripped the roof off a business and# collapsed part of an apartment complex.

Some parts of Southern California saw more# than three inches of rain this morning,## as authorities evacuated more than# 100 homes.

The National Weather## Service issued flash flood warnings for# areas that suffered recent wildfires,## making them more susceptible to mudslides.# L.A.

officials say they are staying prepared.

KAREN BASS (D), Mayor of Los Angeles, California:# The evacuation warning will be in effect for the## burn scar.

There will be strike teams, rescue# teams.

Helicopters are all here at Station 59,## and this is out of an abundance of caution.# We are hoping that the system will not be## as bad as this, but, of course,# we want to be extremely prepared.

GEOFF BENNETT: Meantime a massive Atlantic# storm known as a nor'easter is moving away## from the U.S., but not before it# created dangerous, choppy seas from## the mid-Atlantic to New England, leading to# this water rescue off the coast of Cape Cod.

In Madagascar, an elite military# unit claimed power today after## that nation's president was# removed in an apparent coup.## Outside city hall in the nation's capital,# protesters celebrated the transfer of power## after weeks of anti-government demonstrations.# The announcement of military control came## shortly after Parliament voted overwhelmingly# to impeach the country's president.

The military## says it will appoint a prime minister to# quickly form a new civilian government.

On Wall Street today, stocks ended mixed# amid ongoing worries over trade tensions## between the U.S.

and China.

The Dow Jones# industrial average added around 200 points## on the day.

The Nasdaq lost ground, falling# about 170 points.

The S&P 500 also ended lower.

And R&B singer D'Angelo died.

Starting# with his debut album, "Brown Sugar,## the man born Michael Eugene Archer blended hip-hop# with jazz, funk and gospel into what became known## as neo-soul.

His follow-up, "Voodoo," earned# him the Grammy for best R&B album back in 2001.

D'Angelo then stepped back from the spotlight for# more than a decade until 2014 and the release of## his third and final album, "Black Messiah," which# also won the Grammy.

D'Angelo's family called## him a shining star, saying he died after a battle# with pancreatic cancer.

D'Angelo was 51 years old.

Still to come on the "News Hour": how# public health could be affected by the## latest round of federal government layoffs;# and we sit down with former Supreme Court## Justice Anthony Kennedy to discuss his new# memoir and the state of the Supreme Court.

Today marks the deadline for journalists to# decide whether to comply with the Defense## Department's new rules, a requirement for keeping# the credentials that allow them to access the## Pentagon.

The Pentagon's chief spokesperson# has described the new policy as common sense,## but virtually every news organization, to# include PBS News, has refused to sign it,## arguing that it infringes on# First Amendment protections.

PETE HEGSETH, U.S.

Defense# Secretary: Where there was## a historic outcome.. GEOFF BENNETT: For decades,# reporters have held building## passes that let them freely enter the# Pentagon to attend press briefings,## meet with officials and talk with sources# as they report on the Defense Department.

But now, in order to keep those credentials, the# Trump administration is requiring journalists to## comply with a policy that says reporters# cannot solicit or obtain any information## the Defense Department does not explicitly# authorize.

Doing so, the Pentagon says, would## be a criminal act and would not be considered# protected activity under the First Amendment.

It follows Sean Parnell, the Defense Department's# chief spokesperson, posting on social media:## "Despite many statements to the contrary,# journalists are not required to clear## stories with us.

They retain robust access# to our public affairs offices, the Briefing## Room and the ability to ask questions,# which we continue to answer thoroughly.

"The only change is an overdue# update to our credentialing process,## which hasn't been revised# in years, if not decades,## to align with modern security standards.

Access# to the Pentagon is a privilege, not a right."

Today, at the White House, the defense# secretary defended the new policy.

PETE HEGSETH: It used to be, Mr.# President, the press could go anywhere,## pretty much anywhere in the Pentagon, the most# classified area in the world, or also that,## if they sign on to the credentialing,# they're not going to try to get soldiers## to break the law by giving classified# information.

So it's commonsense stuff.

GEOFF BENNETT: For more on this,# we turn now to Nancy Youssef,## a staff writer at "The Atlantic" who# covers national security issues.

And## David Schulz is director of the Media Freedom# and Information Access Clinic at Yale University,## and he advised the Pentagon Press Association on# how to handle the Defense Department's new rules.

Thank you both for being here.

David, we will start with you.

You heard the defense secretary# say this i.. they're just modernizing the rules.# You argue that this policy criminalizes## routine reporting.

So what exactly in# the language makes it so objectionable?

DAVID SCHULZ, Media Freedom and Information# Access Clinic Director, Yale Law School: Yes, I## would say there's two things .. One is, as was mentioned just now, that# it says that it's improper to solicit## information if it has not been approved# for release.

But what the Pentagon calls## illegal solicitation, we would call news# gathering.

And more important than the label,## soliciting information is an activity# protected by the First Amendment.

And, beyond that, the Pentagon is requiring# reporters for the first time to affirm in## writing that they understand that national# security is harmed by disclosing information## the Pentagon has not approved for# release, even if that information## is unclassified.We know that is not true.# Even information that's classified can often## be disclosed without harm, and the public# interest sometimes compels its disclosure.

Affirming up front that harm can# occur from reporting information## if it's not officially approved# is anathema to a free market,## a free democracy.

And it's information that could# be used against a reporter in future litigation.

Indeed, the place where reporters are# being asked to sign has a large privacy## notice across the top of it, making# clear that the document can be used## by the Pentagon in court.

So I would say# the obvious intent here is to intimidate## and chill reporting on anything# that's not officially disclosed.

GEOFF BENNETT: And, Nancy, why is it# so important for reporters to have## in access -- in-person access to the Pentagon,# to actually walk the halls and talk to people?

NANCY YOUSSEF, "The Atlantic": Well,# remember, this is an organization that## uses nearly a trillion dollars of taxpayer# money, employs three million people.

And so being able to get as much information to# the public as possible about what is happening in## that building, the decisions that are being made# about consequential national security decisions## is critical to our reporting.

It allows us# to bring the kind of nuance and detail to## make for the most accurate reporting on issues# as important as when the nation goes to war.

GEOFF BENNETT: And we should say# that reporters don't have access## to classified areas at the Pentagon.# What safeguards already exist to prevent## journalists from accidentally accessing or# publishing classified or sensitive material?

NANCY YOUSSEF: So, first of all, we wear badges# every day.

And not only do we wear badges.

They## identify us as press.

We swipe# in and out of the building,## so they can see when we're there.

And you have to# go through a background check to get that pass.

Secondly, the Pentagon is a big office# building with lots and lots of offices## that are secured.

And so there's# not classified information sort of## haphazardly thrown around.

It's put in secure# rooms and rooms that we don't have access to.

And I would note that the Pentagon has not# identified some security breach involving## reporters that shows that there has been a# violation of these rules.

And so I think what you## have seen is a press that has been allowed to talk# to officials, understand decisions that are being## made, and handle information, as we are trusted# to do by the public and in a responsible way.

GEOFF BENNETT: So, based on your reporting,# what is driving this policy?

Why is the Pentagon## doing this now, when no other federal# agency has anything like this in place?

NANCY YOUSSEF: Well, since Secretary# Hegseth arrived at the building,## he has been aggressively going after# access for journalists, within weeks,## required some news agencies to vacate# their desk and vacate their news booths.

He has indicated that, when he doesn't like# coverage, that there should be repercussions## for it.

We have seen a secretary who has# only had two press briefings in the 10## months he's been in office.

We have had less# information than we have ever had before.

Even## before these rules were put in place, we have seen# restrictions on our ability to obtain information.

You mentioned earlier in the show the strikes# on boats in Venezuela.

Until this day,## we don't know what kind of ordnance was# used, who's conducting those strikes,## whether they're from drones or from# ships, or even who's on those boats.

And so, from the beginning, we have seen a# secretary that has been quite aggressive in## pursuing journalists who write information## that goes against what he and# his department want released.

GEOFF BENNETT: And, David, building on one# of Nancy's points, you point to what you## see as hypocrisy, that the recent security# breaches within the Pentagon have come from## within the Defense Department, not from# journalists.

Tell me more about that.

DAVID SCHULZ: Yes.

Yes.

I just want to underscore what Nancy just# said.

There is abs.. new policy and no justification for requiring# reporters to sign these statements.

As she said,## no other agency does it.

They don't do it to# the White House.

They don't do it at the State## Department.

And we should be clear.

There# was no problem that prompted this change.

And I do think it's a bit more -- a bit more than# hypocritical to suggest that this is commonsense## stuff that needs to be taken to protect national# security, given that the major leaks of classified## information during this administration have# come from the top, starting with the casual use## of Signal by the secretary himself.

It's not# reporters that are breaching protocols here.

GEOFF BENNETT: So, looking ahead,## how will this change the way you and# your colleagues report o.. NANCY YOUSSEF: Well, I should# start by saying we will continue## to report on the Pentagon and do so# aggressively, as we have always done.

I think what will be lost is the opportunity# for the American public to see troops.

We## won't be able to do things like go on# ships with sailors.

We won't be able to## go in Humvees with troops.

We won't have that# kind of detail that I think has really added## nuance to the reporting and to the public's# understanding of national security and where## we ask America's sons and daughters to# deploy and potentially be in harm's way.

GEOFF BENNETT: Nancy Youssef, David Schulz,## thank you both for your perspectives# and insights.

We appreciate it.

NANCY YOUSSEF: Thank you.

AMNA NAWAZ:## The markets may have finished this day on# a mixed note, but if you have been watching## in recent months, you will have noticed# the markets have continued to be strong,## despite continuing concerns around# the shutdown, tariffs, and inflation.

In fact, the broadest index, the S&P 500, and# the tech-heavy Nasdaq have set records more## than 30 times this year.

And there's# other data that suggests the economy## is still chugging along at a steady clip.# But that is only part of what's happening.

As our economics correspondent Paul Solman# reports, for the vast majority of Americans,## this economy is landing# very differently right now.

MARK ZUCKERBERG (CEO, Meta):# This is Meta Ray-Ban Display.

PAUL SOLMAN: You don't have to look far to get a## clear view of those at the# tippy top of the economy.

MARK ZUCKERBERG: The first A.I.# glasses with a high-resolution display.

PAUL SOLMAN: Mark Zuckerberg's Meta paying# $250 million to recruit an artificial## intelligence researcher, a proposed $1 trillion# compensation package for Tesla CEO Elon Musk,## former Google head Eric Schmidt's purchase of a# 123-room $110 million L.A.

mansion to host events.

But well below the hyper-rich, millions of other# Americans are also prospering.

As evidence,## 56 percent of luxury consumers, according# to Saks Global, plan to spend the same or## more this season compared to last, up# substantially from just last spring.

MISTY BELLES, Vice President of Global# Public Relations, Virtuoso: Luxury## travel continues to hold very strong.

PAUL SOLMAN: Misty Belles of luxury# travel network Virtuoso sees the same.

MISTY BELLES: When we look at# our fall bookings for this year,## we are up 38 percent year over year.

PAUL MAC GARVEY, Retiree: If I wanted to go buy a# Rolls-Royce, I could do it right now and pay cash.

PAUL SOLMAN: Paul Mac Garvey and# his wife aren't big travelers,## but, comfortably retired, they are insulated.

PAUL MAC GARVEY: I do a net worth survey# on the Fidelity Web site every week, and## it just does nothing but go up.

All# right, my net worth keeps going up.

PAUL SOLMAN: John (ph), a retired# engineer, is also pretty comfortable.

JOHN, Retiree: I own my own house.

I own a couple# of cars.

I have everything that I really want.

PAUL SOLMAN: Problem is, even when you include# these upper-middle-income Americans among the## prosperous, that still leaves a full# 80 percent who are feeling squeezed,## like geologist Timothy Runkle.

TIMOTHY RUNKLE, Geologist: It doesn't really# matter what I'm doing in my career or what other## jobs that I'm pursuing.

It just doesn't keep up# with what the necessities of life are right now.

PAUL SOLMAN: Donna (ph) is in sales.

DONNA, Employed in Sales: I .. PAUL SOLMAN: Joseph Williamson,# a city planner in Collinsville,## Illinois, proud home of the# world's largest ketchup bottle.

JOSEPH WILLIAMSON, City Planner: Honestly,# right now, as we speak, $200 to my name, maybe.

PAUL SOLMAN: Fiori Berhane, assistant professor.

FIORI BERHANE, Assistant Professor: I# have student loa.. PAUL SOLMAN: Emily Zerrenner is a librarian.

EMILY ZERRENNER, Librarian: I'm# finding myself needing to use the## by-now, pay-later things for bigger# purchases, such as like car repairs.

PAUL SOLMAN: One way to depict# the increasing split between the## top 20 percent and the rest of Americans,# says economist Mark Zandi, the letter K. MARK ZANDI, Chief Economist, Moody's# Analytics: The folks at the top part## of the income and wealth distribution are# doing fabulously.. folks at the bottom part of the K, lower-,# middle-income households, they're struggling.

PAUL SOLMAN: Heather Long wrote about the# K-shaped economy in The Washington Post.

HEATHER LONG, Navy Federal Credit Union: This# economy right now is being driven by spending## from the top 20 percent of Americans.

So# that dividing line is roughly $175,000.

Families that are above that mark, they're living# la vida loca.

You know, they're out there.

They're## spending on birthday parties and lavish weddings# and big trips abroad and growing their spending## month after month.

And the rest of America, the# bottom 80 percent, they're cautious right now.

MARK ZANDI: Their incomes having# kept pace with inflation.

They're## encumbered with debt.

They don't have any assets.

PAUL SOLMAN: Assets to benefit from.

MARK ZANDI: The stock market is booming.

We have# record valuations.

All that accrues to the folks## with big stock portfolios, and that's in# the top 10 percent of the distribution.## They own their own home.

They own bonds# They own crypto.

They own lots of stuff.

PAUL SOLMAN: Of course, American wealth inequality# is hardly new.

Point is, it's getting worse.

HEATHER LONG: You can go back to kind of# the early '90s, and the top 10 percent, the## wealthiest Americans, they would account# for 35 percent of overall spending.

So## a pretty good chunk was reliant on# the top.

But, today, that number is## basically 50 percent.

Half of spending is# now dependent on just the top 10 percent.

PAUL SOLMAN: That's households# making about $250,000 or more.

The economy is more reliant on them than# ever.

Official consumer spending is rising,## thanks to folks like Belles'# high-end travel customers.

MISTY BELLES: Suites are still selling# very well at hotels.

Junior suites,## anything that's in the upper# category there, business class,## premium economy, all of those upper# categories continue to hold strong.

PAUL SOLMAN: Washington, D.C., realtor Michael# Rankin specializes in the luxury market.

MICHAEL RANKIN, Sotheby's International# Realty: It is very strong and very robust.## They have been buying and spending a lot of money.

PAUL SOLMAN: In fact, his# challenge is there aren't## enough houses for his high-end clients to buy.

MICHAEL RANKIN: What we have now is# a scarcity of supply of the super## high end, and our marketplace is $7# million, $10 million, $15 million,## even higher.

I have active buyers and clients# who are looking for something very special,## very well renovated, very well presented.# And there's just a scarcity of supply.

PAUL SOLMAN: But while the well-off are fueling# the economy, so many others are pinching pennies,## looking to spend less on just the basics# at discount stores like Dollar General,## which recently reported an increase# in middle- and higher-income shoppers.

And budget grosser Aldi is# America's fastest growing retailer.

JOSEPH WILLIAMSON: I'm spending sometimes# upwards of $150, $200 a week on groceries.

PAUL SOLMAN: Joe Williamson's pay is# barely keeping up with prices at the store,## like so many Americans.

EMILY ZERRENNER: I used to be# a person who would pay off my## credit card every single month.# I wouldn't keep a balance at all,## but I have had to start keeping a balance,# and I'm not able to pay it off every month.

PAUL SOLMAN: This summer, Jessica Cuevas (ph)# and her husband moved their family to Mexico## because they could no longer afford to live in# Chicago on her husband's $67,000-a-year salary.

JESSICA CUEVAS, Expat: Rent is about 1,000# U.S.

dollars.

In Chicago, where we're from,## it could be anywhere between $25,000 to $5,000.

PAUL SOLMAN: And Cuevas can work too# since she can now afford day care.

JESSICA CUEVAS: That alone is about# $150 a month, compared to $1,400.

PAUL SOLMAN: Now the K bifurcation# isn't just among households.

HEATHER LONG: There's also a K-shaped situation## going on the business side.

And# you can look at the stock market,## and it's being hugely driven by a handful of# superstar tech companies that are involved## in the A.I.

boom.

And they're just in a totally# different league right now than everybody else.

PAUL SOLMAN: And they, it turns# out, are driving the economy.

HEATHER LONG: In the first half of 2025, spending# on A.I.

was as big of a contributor to growth in## this country as consumption.

There's a lot# of risk to an economy that is so heavily## reliant on this A.I.

boom and the rich.

And# there could be some pullback.

If your chair## has fewer and fewer legs to stand on,# it's a lot easier to knock that over.

PAUL SOLMAN: Meanwhile, the A.I.

boom means# more data centers devouring more energy,## driving up electricity prices for# the already strapped 80 percent.

JOSEPH WILLIAMSON: Everybody around me has either## doubled or tripled in their power# expenses, and we can't afford it.

PAUL SOLMAN: Not to mention rising rents as# investors buy up presidential real estate.

FIORI BERHANE: My rent is going to# continue rising, and my pay isn't.

PAUL SOLMAN: So why not buy instead?

EMILY ZERRENNER: I do not feel like I could ever## buy a house.

That's not even# on my radar, quite honestly.

PAUL SOLMAN: Just 25 percent# of Americans these days feel## they have a good chance of improving# their standard of living, a record low.

Why do you suppose there hasn't been a# revolt from the bottom, the pitchforks,## in one cliched version of the revolt?

MARK ZANDI: There's clearly a lot of skewing# of the income and wealth distribution,## but times historically when you have seen, as# you say, the pitchforks coming out, the skewing## is much more pronounced.

We're not living in# Paris, France, circa late 1700s, for example.

PAUL SOLMAN: That is even the bottom arm of the K. MARK ZANDI: Making 50, 75 K a year here# in the U.S., your standard of living,## just given the improvements in# technologies and everything else,## is probably as good as the Hearsts were back# 100 years ago when they were in their castle.

PAUL SOLMAN: A castle without air conditioning,# TV, the Internet, access to modern medicine,## and so much we now take for granted.

On the# other hand, that man's home was a castle.

For the "PBS News Hour," Paul Solman.

AMNA NAWAZ: The government shutdown will pass# the two-week mark tonight after a continuing## resolution failed in the Senate once again.# Neither side seems close to resuming talks.

For its part, the president's team posted on# social media that it's -- quote -- "making## every preparation to batten down the# hatches and ride out the shutdown.

"## The White House also threatened to# continue laying off federal workers.

Just this past weekend, roughly 1,300# employees at the Centers for Disease## Control and Prevention received notices that they# were fired.

Then, as the administration realized## it had fired some key staff, reportedly,# half of them were reinstated the next day.## The whiplash still leaves the agency# without many crucial professionals.

To break down the impact, I spoke earlier# today with Dr.

Nirav Shah.

He's former## principal deputy director of the CDC, now# a visiting professor at Colby College.

Dr.

Shah, welcome to the "News# Hour."

Thank you for joining us.

DR.

NIRAV SHAH, Former CDC Principal Deputy# Director: Thank you for having me, Amna.

AMNA NAWAZ: So, from the folks you talked to and# from w.. CDC to have been fired and then rehired, even# with these lingering threats of more continued## layoffs to come, what kind of impact# is that having on folks at the CDC?

DR.

NIRAV SHAH: It has an impact in two ways.

The first is, this sort of whiplash, with# being fired one day, rehired the next,## it just -- it suggests that there's# managerial incompetence at play.## But the second thing that it does, particularly# for the staff, is, it's a morale killer.

Morale at the CDC was already exceedingly# low.

Indeed, not more than two months ago,## the CDC was literally attacked by a gunman# who fired over 500 rounds at the building.## That alone would be sufficient to kill the# morale of any organization.

But now this## whiplash of firings and rehiring means that# morale at the agency is exceptionally low.## That has implications for# all of us and our safety.

AMNA NAWAZ: When you look at where folks have been# fired and not rehired, is our understanding, among## those staffers are people at an agency known as# ASPR, I believe, that works with the intelligence## agencies to prepare for, protect against# things like pandemics and weaponized pathogens.

What do we know about the impact# of a team like that being fired?

DR.

NIRAV SHAH: ASPR, which focuses on strategic# preparedness for bioterrorism and biodefense## threats, is really the connective tissue# that links up a number of different agencies,## not just within Health and Human Services, but# across the federal government, to make sure that## we are ready to detect a potential biological# threat and then respond to it in unison.

It's not a large entity, but it's an important# one.

It's the nucleus of a lot of our work.

And## so any reductions in force to such a small but# important group, again, leave us all less safe.

AMNA NAWAZ: There are a number of other# agencies where we saw some firings,## the Substance Abuse and Mental Health# Services Administration among them.

Are there other teams that stand out in# particular to you as very dangerous or## potentially harmful?

And, also, how should# the rest of the country look at this?

Is## this something that's going to show up# in their lives tomorrow or this week?

DR.

NIRAV SHAH: The impact of them may not be seen# for days, weeks, months, even years, but when that## impact is materialized, it will be in the midst# of a crisis or a catastrophe, when we are the last## ones to know about a devastating biological# threat, when all of our foreign adversaries## have had weeks or months of lead time to be# ready, and we are the ones who are scrambling.

The worst part about all of these cuts is that# the impact of them won't be felt until there's## an emergency.

And then we will all be looking# around, wondering why we were the last to know.## It will mean that the way that the health of the# American public is protected for the foreseeable## future is through state and local governments,# not necessarily through the federal government.

AMNA NAWAZ: Can I put to you what we have# heard from the president about some of these## firings?

Because he's repeatedly characterized# these as firings around Democratic programs or## Democratic priorities.

What's your response# to that?

How do you look at that language?

DR.

NIRAV SHAH: That is the wrong# way to characterize public health## programs that keep us all safe.

There's# no virus out there, there's no deadly## pathogen out there that only goes after# folks of one political party or another.

When the next biological threat comes,# it will attack everybody irrespective of## their political preferences.

And,# therefore, the systems that keep## us safe are not Democratic or Republican# or red or purple or anything in between.

AMNA NAWAZ: Dr.

Shah, longer term,# when you look at the future of the CDC,## for people who are being fired now or even# rehired, are they likely to stay at the## agency?

Are the things that are being broken down# now, are they able to be built back up later?

DR.

NIRAV SHAH: They will be able to# be built back up, but, unfortunately,## I fear that it will take a generation to do so.

The talent and the career scientists who have# been let go, again, these are not political## appointees.

These are career public servant# scientists.

They have other opportunities,## owing to their excellence and their# education.

And those opportunities## will be found elsewhere, perhaps# in industry, perhaps in academia.

And this is not just at the CDC.It's at the NIH# and at the FDA and SAMHSA.

Those scientists will## take a generation, if not more, to be lured# back or for the next generation of scientists## to come up.

What it means specifically in an# era of increasing bioterror threats is that## other countries and foreign adversaries will have# a leg up on us whenever that next threat emerges.

We will be the ones behind, when# we should be the ones in front.

AMNA NAWAZ: That is Dr.

Nirav# Shah, formerly of the CDC,## now with Colby College in# Maine, joining us tonight.

Dr.

Shah, thank you.

Good to speak with you.

DR.

NIRAV SHAH: Thank you for having me.

GEOFF BENNETT: Former Supreme Court# Justice Anthony Kennedy served on## the nation's highest court for three# decades and was often described as the## swing vote in landmark decisions from# marriage equality to campaign finance.

It's a label he's long resisted, even# years after his 2018 retirement.

When## we spoke last week about his new memoir,# Life, Law & Liberty," he explained why.

ANTHONY KENNEDY, Former Associate Justice, U.S.# Supreme Court: Well, it's really the metaphor## that's the problem for me.

The metaphor,# you see this person swinging back and forth.

And my comment when people say about that# is that the cases swing.

I don't.

And so## that's why it seems to me -- people can# disagree -- that my jurisprudence is quite## consistent and it doesn't swing.

And so that# was one of the things explained in the book.

GEOFF BENNETT: You were the pivotal voice in# cases that expanded LGBTQ rights, that preserved## abortion rights at the time, but also a ruling# that struck down campaign finance restrictions.

How do you reconcile or explain## those strands of your legal philosophy?

ANTHONY KENNEDY: The campaign finance cases## are very, very difficult.

I'm sure most people# don't like the idea that millionaires, maybe## billionaires, come in and spend all this money in# a place where they don't even live in order to get## somebody elected.

And why should the successful# candidate be the one that has the most money?

That's -- something that's wrong with# it.

So then you're asking me, well,## what are you talking about, Kennedy?

Why did you# write this?

The answer was that what the Congress## had done was to say that corporations could not# give the money.

They forgot that The New York## Times was a corporation, and it was exempt.

The# Washington Post was a corporation.

It was exempt.

And many corporations were small, so the small# Chamber of Commerce, a grocery store.

So to me,## if we had held it for just big corporations, we# would have endless cases on drawing the line,## and we had no jurisprudential reason to do# it.

My suggestion, and it's still my hope,## is that the voters will be better# informed about who is giving money,## who is getting money, and take# that into account when they vote.

And the voters should be better informed.

The# books, it talks generally about we have to be## better informed about how our government works# and what our great -- the issues of our time are.

GEOFF BENNETT: Yes.

We were talking earlier about.. your opinions in these key cases.# In the Obergefell v. Hodges case,## you wrote so powerfully about the dignity of# same-sex couples.

And you write in the book## about how someone once told you that the opinion# passed the refrigerator test.

Explain that for us.

ANTHONY KENNEDY: Somebody said, you passed# -- we were at some event.

Somebody said:## "Your opinion passed the refrigerator test."

I said: "What's the refrigerator test?"

If there's something that's written# in a newspaper article or a book or,## in this case, the Supreme Court opinion,# and the parents want the family to read it,## they just get some adhesive tape# and put it on the refrigerator,## and then everybody reads it when they're going# to get something out of the refrigerator.

So certain parts of my opinion, they# said, passed the refrigerator test,## those parts of the opinions which talk about# the dignity and the sanctity of marriage.

GEOFF BENNETT: But Justice Clarence Thomas# recently said at Catholic University that## legal precedents -- this is a# quote -- "are not the gospel."

Given the current petitions# seeking to revisit Obergefell,## do you worry that parts of your legacy,# including that case, could be undone?

ANTHONY KENNEDY: Well, of course, the law# must stand the test of time.

And if we## learn or think we learn new things over# the course of years, the judges and the## legal profession and the general public are# free to examine and think about the reasons.

That's why we give reasons for what we do.# That's why we write about what we do and see## if those reasons can stand the test of time.# So the fact that there is a reexamination## and additional conversation, to# me, is a strength of our system.

GEOFF BENNETT: Yes.

I want to ask yo.. warned this past summer in remarks that# freedom and democracy are at risk.

What,## in your view, poses the greatest# threat to our democratic system?

ANTHONY KENNEDY: Lack of civility.

Aristotle wrote that democracy depends upon# a rational, thoughtful, probing discussion in## which you have disagreements, but you respect the# other person, and you do not -- and you respect## the dignity of the other person.

Those with whom# you disagree have a dignity that you must respect.

And in this age of the cyber age, we have# some problems.

Initially, my thought was,## oh, the cyber age is good because we will# all -- more people will talk to each other.## And I don't know.

There are# 39,000 books in the Library## of Congress.

There are close to two# billion Web sites on the Internet.

And the problem with the# Internet, as a professor from the# University of Michigan,# Barbara Meekam (ph), wrote,## is that, sure, we talk to each other more,# but we talk only to people who feel exactly## the same way as we do.

We don't have -- the# Internet doesn't lend itself to a debate.

If you and I are going out to lunch, we# will find something we disagree with and## we will enjoy the lunch, but we disagree.# That doesn't happen on the Internet.

GEOFF BENNETT: Beyond that, is the court# doing enough to safeguard our democratic## system?

There are those who argue that# the court, with its current trajectory,## is strengthening the executive branch at the# expense of Congress, at the expense of the people.

Is that, in your view, a fair assessment?

ANTHONY KENNEDY: Well, my practice# is not to comment on current issues.

We have -- when I -- during my time on# the court, we had three times as many## cases as they have now.

Does that mean# that we were three times as busy?

No,## because of all of these emergency orders.# And the problem with emergency orders is## that there is little time to have briefs# or argument to think, to think about it.

And the court, in my view, is beginning# to recognize that and beginning to say## there will be an executive order.

Sure,# we will allow it for a couple months,## or we won't allow it for a couple months, but# we will hear arguments and then we will decide.

It's very, very important that the court hear# arguments.

One of the problems that we have is,## as you know, lawyers are brilliant now# about finding a way for almost any social## issue to become part of a lawsuit, so that# courts can decide almost any social issue.

This means that we have to be very, very# careful about the authority and the position## of the courts in deciding so many critical# issues that the public should be deciding## for themselves.

Nino Scalia would say, oh,# you ask what the framers of the Constitution## would do, and if they don't give you the# answer, then you can't come up with it.

And many of us disagree with that.

But it is# quite true that we have to be very careful## that we don't just jump off from what the# framers said and decide whatever we like.

GEOFF BENNETT: On that point, as of last week, the# court had issued 23 rulings in a row for the Trump## administration.

At a time when public opinion# of the Supreme Court is near historic lows,## do you worry that the consistent support# for the Trump administration feeds into## this public perception that the court is# partisan or, worse than that, political?

ANTHONY KENNEDY: The danger of the court# being thought of as partisan and political,## it's very real and of great concern to me.

It begins with the confirmation process.# The confirmation process is too partisan.## There are very few presidents who appointed# justices from a different party.

Eisenhower did## Brennan.

And you could argue about Warren.# Warren was something of an independent.

And so partisanship has always played# a role, but it shouldn't dominate.

We## should talk about temperament and learning# and moderation and thoughtful writing.## We should emphasize that more than# just he or she will decide this my way,## and therefore we're going to appoint# that person as a judge.

That's not right.

GEOFF BENNETT: You have shaped the law in# ways that have touched millions of lives,## expanding rights, defining liberty, at times# dividing the nation with some of the rulings.

When you reflect on that, what part of# your legacy feels most meaningful to you?

ANTHONY KENNEDY: Well, I will# think of this answer later tonight.

(LAUGHTER) ANTHONY KENNEDY: The par.. essential for all of government, for all# thoughtful people to give reasons for what we do## and to be unafraid to discuss those reasons openly# and with an open -- and with a searching mind-set.

GEOFF BENNETT: The book is# "Life, Law & Liberty: A Memoir."

Justice Anthony Kennedy, thanks again for# being here.

A real pleasure to speak with you.

ANTHONY KENNEDY: Thank you so much.

It's my## pleasure and honor to be on this# great, great television ne.. AMNA NAWAZ: And that is the "News# Hour" for tonight.

I'm Amna Nawaz.

GEOFF BENNETT: And I'm Geoff Bennett.

For all of us here at the "PBS News Hou..