Latest News Digest – January 2, 2026

National News

The Department of Health and Human Services (HHS) Freezes Childcare Funding – The HHS has paused federal childcare funding nationwide after videos posted on X (formerly Twitter) exposed apparent fraud in Minnesota programs.  States must now provide receipts, photos, attendance records, and inspection data before funds resume.  Independent journalist Nick Shirley last week posted videos that he claims expose $110 million in fraud, after he went to several daycare centers in Minneapolis.  A dedicated fraud-reporting hotline and email address at childcare.gov was announced by HHS Deputy Secretary Jim O’Neill on Tuesday.  Shirley’s video has received 135 million views on X.  One of the day care centers exposed on video had a large sign over their door with the words “Quality Learing Center”, pointing to something other than learning going on in this facility. CBS News attempted to debunk Shirley’s investigation of the daycare centers in Minnesota, by stating that all but two of the daycare centers have active licenses and all have been visited by state regulators within the last six months.– Summary of X posts, oann.com, CBSNews.com

HHS Extends Telemedicine - Today HHS announced a fourth temporary extension of telemedicine flexibilities through the end of the year that allow patients to receive prescriptions for controlled medications without a prior in-person visit. As stated in the Press Release, "This action ensures that patients who rely on telemedicine - including seniors, rural residents, people with disabilities, and individuals receiving treatment for mental health conditions or substance use disorder - can continue accessing care without interruption." - hhs.gov

Winter Storm Swept Across the Great Lakes and Great Plains – Powerful winds, heavy rain, snow, and blizzard conditions affected travelers during the busy travel period between Christmas and New Year’s Day, leading to more than 3,000 flights being canceled in the Midwest and Great Lakes regions. 

President Trump met with Ukrainian President Zelenskyy – On Sunday, President Donald Trump met with Ukrainian President Volodymyr Zelenskyy in Florida to discuss peace talks amid escalating Russian attacks on Kyiv, which killed civilians and damaged infrastructure. Zelenskyy described his recent meeting with Trump as a "great meeting" and a "substantive discussion," highlighting progress made by both American and Ukrainian teams in recent weeks.  Zelenskyy thanked Trump for hosting the meeting and both Zelenskyy and Trump stated that they believe their teams are getting close to a deal to end the conflict. Trump and his White House Press Secretary Karoline Leavitt have stated that Trump has had calls with Russian President Putin both before and after the meeting with Zelenskyy.  The next steps involve meeting with national security advisors, European leaders and with the Russians. – CBSNews.com

U.S. Air Strike on Venezuelan Dock - President Trump announced an American air strike on an alleged cartel dock facility in Venezuela on a radio interview on Friday.  When asked by reporters on Monday, Trump said “There was a major explosion in the dock area where they load the boats up with drugs,” Trump said as he met in Florida with Israeli Prime Minister Benjamin Netanyahu. – Aljazeera.com

Record Amount of Cocaine Seized by U.S. Coast Guard - The U.S. Coast Guard reported seizing over 469,000 pounds of cocaine in the Eastern Pacific Ocean and Caribbean since January 20th, representing a record amount and three times the yearly average, underscoring efforts to combat narcotics. Trump administration officials highlighted these actions as part of broader anti-drug operations. – news.uscg.mil; X Post of Homeland Security

Coast Guard Awards Contracts to Build Arctic Security Cutter (ASC) Icebreakers – The U.S. Coast Guard awarded contracts for six Arctic icebreakers to bolster polar operations amid geopolitical tensions. Awards were made to two contractors Rauma Marine Constructions Oy of Rauma, Finland, and Bollinger Shipyards Lockport, LLC of Lockport, Louisiana.  This move is aimed to enhance national security in strategic regions. – news.uscg.mil

FBI Arrests Man Planning an ISIS-Inspired Attack in North Carolina - On January 2, 2026, the U.S. Department of Justice (DOJ) and FBI announced that they successfully thwarted an ISIS-inspired terror plot targeting New Year's Eve celebrations in North Carolina. The suspect, 18-year-old Christian Sturdivant of Mint Hill (a suburb outside Charlotte), was arrested on December 31, 2025, and charged with attempting to provide material support to a designated foreign terrorist organization (ISIS), which carries a maximum penalty of 20 years in prison if convicted. Sturdivant made his initial court appearance in federal court on January 2, where he has not yet entered a plea.

President Trump Warns Iran of U.S. Intervention if Iran Kills Peaceful Protesters – In a social media post, President Trump vowed U.S. intervention if Iran executed protesters amid ongoing unrest, following reports of deaths and injuries in clashes. Iranian forces faced attacks in provinces, with protesters demanding change. The statement reflected U.S. concerns over human rights and regional stability. – CBSNews.com

Gross National Domestic Product Increased at 4.3% Annual Rate – Real gross domestic product (GDP) increased at an annual rate of 4.3% in the third quarter of 2025, according to the initial estimate released by the U.S. Bureau of Economic Analysis.  Foreign private investors are buying U.S. assets at a $1.65 Trillion rate, which is up almost 40% from last year, pointing to confidence in the U.S. economy.  bea.gov; X Post of Quantus Insights

California News

Rose Parade Hit by Heavy Rains – For the first time in 20 years, the 137^th Tournament of Roses Parade in Pasadena rang in the new year under heavy rains instead of under the usual sunny Southern California skies.  19 marching bands, 39 floral floats, 17 equestrian teams and spectators were soaked by approximately 2 inches of heavy rains as the entire state has been under a flood watch issued by the National Weather Service through Sunday. – abc7.com

PG&E Decreases Rates - PG&E announced a 5% rate decrease on electricity for residential customers starting January 1, providing some meager relief amid economic pressures. The change applied to those receiving both supply and delivery services. This followed scrutiny over utility costs in the state. PG&E's effective rates, while varying by plan (e.g., Time-of-Use, tiered, or baseline), typically fall in the 30–45 cents per kWh range for many customers depending on usage tier, time of day, and location, making them roughly 50–100%+ higher than the national average. This gap stems from California's investments in wildfire mitigation, grid reliability, renewables, and regulatory costs.  Also, PG&E is reducing the rate it charges for natural gas by 3% compared to current rates.  Over the last 10 years, residential electricity rates have increased by approximately 101%.

Illicit Drugs Now Being Mixed With Medetomidine Leading to More Overdoses - A new "zombie drug" called medetomidine caused four fatal overdoses in 2025, prompting health warnings from officials. The substance, known as "rhino tranq,"is a potent veterinary sedative and its use has spread across California, raising alarms about synthetic drugs. Public health departments urged vigilance and treatment access. – hanleycenter.org

California Delays Revoking Illegal Commercial Driver’s Licenses - California has delayed revoking 17,000 commercial driver's licenses until March after immigrant groups sued, risking federal funds. Transportation Secretary Sean Duffy indicated that the deadline to revoke illegally issued, unvetted foreign trucker licenses is January 5^th or California will lose $160 million in federal funding. - X Post of Secretary Sean Duffy

A Proposed California Ballot Initiative Would Levy a One-Time 5% Wealth Tax - Billionaires like Larry Page, Peter Thiel and Palmer Luckey considered leaving over a proposed 5% wealth tax on assets over $1 billion. The ballot measure, backed by unions, sparked debates on inequality and economic impact. Organizers pushed for signatures to qualify it for the ballot.- SFChronicle.com; CaliforniaWallStreet.com

California Music Festivals Will Help Boost Local Economies - Music festivals lined up for Southern California in 2026 promised diverse lineups to boost tourism and entertainment. Major events like Coachella Valley Music and Arts Festival held in Indio, Outside Lands Music and Arts Festival held in San Francisco’s Golden Gate Park, and Hard Summer Music Festival held at various cities across California have been planned for 2026,  Events ranged from rock to electronic, and expect to continue drawing large crowds. – EventsLiker.com

Earthquakes Rattled Parts of the State - In late 2025 and early January 2026, California saw two notable earthquake sequences: a prolonged swarm in the San Ramon area of the East Bay and a shorter sequence near Susanville in Northern California's Lassen County. The San Ramon swarm, near the Calaveras Fault, began in early November 2025 with a magnitude 3.8 quake and lasted over a month, featuring over 75 earthquakes of magnitude 2 or greater, including a peak magnitude 4.0 on December 19–20 (with accompanying 3.8, 3.1, and 2.9 events), and continued into January with magnitude 3.0–3.2 on January 1 and 3.0 on January 2; seismologists attributed it to fluid-filled cracks and complex faults, with no damage or injuries, though shaking was felt across the Bay Area, and it does not indicate a larger impending quake. Meanwhile, the Susanville sequence involved a magnitude 4.7 event on December 28 at 4:41 p.m. (9 miles north-northwest, shallow depth), followed by a magnitude 4.9 (revised from 5.3) on December 30 at 9:49 p.m. (similar location and depth), plus aftershocks like magnitude 2.5 on December 30–31 and 2.6 near Burney on January 1; widely felt in Northern California and Nevada but causing no major damage or casualties, it occurred along local faults near Round Valley Reservoir and Eagle Lake, with over 50% chance of minor aftershocks, tapering by early January. Both events underscore California's routine seismicity, serving as preparedness reminders without signaling "the Big One." – SFGate.com, LATimes.com, USGS.gov