Plus missing Navy SEALs and a bipartisan child tax credit deal

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Good morning,

New look, who dis?

We’re trying out a new format for today’s newsletter and we’d love to know what you think about it. Instead of going really deep on one major story, we’re briefly breaking down three of the day’s biggest headlines.

Email us your feedback here.

Thanks, and if you’re almost anywhere in the U.S. right now, hope you’re staying warm!

Mosheh, Jill, & Lauren

🗳 ALL EYES ON NEW HAMPSHIRE

All eyes are now on New Hampshire and next Tuesday’s GOP primary, where we are expecting a much more competitive race. Based on pre-Iowa caucus polling, Nikki Haley appears to be within single digits of former President Donald Trump in the state, where independent voters could help her pull off an upset. Though, Trump remains in the driver’s seat for the nomination given his commanding Iowa win, and overwhelming polling leads across the country.

NO MORE DEBATES?
Two debates were set to take place this week, but Haley announced Tuesday that she’s only going to debate Trump or President Biden moving forward. Given that Trump is not debating any of his GOP rivals, that left DeSantis set to appear on stage by himself. ABC cancelled the first debate. CNN will likely have to cancel theirs as well.

DeSantis, who is a distant third in state polling and was looking for some kind of boost, criticized Haley’s decision.
But, Haley said she now sees this as a two-person race between her and Trump. She said she’s “building a coalition of GOP voters who are ready to move on from the former president, as well as independents who reject what they see as his extreme agenda and brash conduct.”
- Remember: Haley has shown major appeal among independents. In NH, independent voters can pick the primary of their choice, and make up 39% of the state’s electorate. The state’s historic independent streak and voters are made for Haley’s brand of politics, so expectations are high that if she can win any early state against Trump, this is it. 🍿

📍 US NAVY SEALS MISSING AFTER IRANIAN MISSILE MISSION

Iranian-made missile components seized by US. Via: US Central Command

Two Navy SEALs have been missing at sea, presumed dead, off the coast of Somalia since a risky nighttime mission last Thursday night. The US military is still searching for the SEALs in the Gulf of Aden.

WHAT WENT WRONG
The missing SEALs were part of a mission that seized Iranian-manufactured ballistic missile and cruise missile components headed to Houthi terrorists in Yemen. Officials said the mission was the first seizure of advanced Iranian-manufactured missiles in four years.

HOW IT HAPPENED: One SEAL fell off a boat and the other jumped in after him, per the US Navy’s policy.

US TARGET HOUTHIS
The news comes as the US carried out its third strike in the past week yesterday.

Timeline breakdown: The Houthis have launched dozens of attacks commercial ships traveling through the Red Sea in recent weeks in solidarity with Hamas.
- The US gave the Houthis numerous warnings to stop. When they didn’t, the US and allies, launched multiple airstrikes against Houthi targets in Yemen. The Iran-backed group says they will not be deterred and will continue their strikes.
💰 Because of the attacks, commercial ships have been avoiding the Red Sea — the fastest freight route from Asia to Europe, accounting for 12% of global seaborne trade. Now shipping companies are taking longer routes, raising their prices and causing delays in the supply chain.

Here’s a photo of the longer route many are taking.

💰 BIPARTISAN PLAN TO EXPAND CHILD TAX CREDIT

Republican and Democratic lawmakers struck a deal Tuesday that could mean both get something they have long been looking for. For Democrats, the plan expands child tax credits they were hoping for, while Republicans get to revive some tax breaks for businesses. A bipartisan compromise in Congress…how novel!

MONEY MONEY MONEY
The plan ensures that low-income families will get the full benefit of the child tax credit. Currently, some low-income Americans earn too little to claim the $2,000 per-child credit in full.

Unlike under Biden’s 2021 plan (which temporarily saw the credit jump from $2,000 to $3,000 per child), families won’t see an actual check in the mail. Instead, taxpayers will have to claim the credit on their tax returns.

Roughly 10% of families earn less than $2,500 a year – the minimum for qualifying for a credit, the People’s Policy Project says.
The Washington Post broke down what it means for various income brackets.
The child tax credit will also now adjust for inflation for all income levels starting in coming years.
As for businesses, the bill brings back some of Trump’s 2017 tax breaks.

CLOCK IS TICKING: Lawmakers say they want to have this $78 billion deal passed before this tax season, but it would need to be passed in the coming weeks for the IRS to implement the new benefits.

⏳ SPEED READ

🚨NATION

📌 Lawmakers scramble to avert shutdown with funding deadline days away (CNN)

📌 A little fish at the Supreme Court could take a big bite out of regulatory power (AP)

📌 Virginia county finds 4,000 misreported 2020 votes, but in Biden’s favor (THE HILL)

📌 A snowless streak ends for these East Coast cities (USA TODAY)

🌎 AROUND THE WORLD

📌 Zelensky calls for peace, not more weapons, in Davos, Switzerland (REUTERS)

📌 North Korea's Kim calls for South to be seen as "primary foe", warns of war (NBC NEWS)

📌 Israel carries out intense strikes on Hezbollah in south Lebanon (TIMES OF ISRAEL)

📌 Iran launches missile strikes in northern Iraq and Syria, claims to destroy Israeli spy base (CNN)

📱BUSINESS, SCIENCE & TECH

📌 Judge blocks JetBlue-Spirit merger resulting in a major win for DOJ (NBC NEWS)

📌 Flu activity briefly dips, but officials warn of unusually severe symptoms (CBS NEWS)

📌 Musk demands more voting control at Tesla before expanding automaker's AI work (FOX BUSINESS)

📌 Quaker Oats recall includes granola bars and other snacks contaminated with salmonella (NBC NEWS)

📌 100% fruit juice linked to weight gain in children and adults (CNN)

🎬 SPORTS & ENTERTAINMENT

📌 New York Knicks and Rangers owner James Dolan accused of sexual assault alongside Harvey Weinstein (FOX NEWS)

📌 Jason Kelce, Philadelphia Eagles center, will retire after 13 seasons (NBC NEWS)

📌 ‘World’s oldest dog’ title taken back and being investigated by Guinness (GUARDIAN)

📌 Michael Bublé has near-death polar bear encounter (PEOPLE)

🗓 ON THIS DAY: JANUARY 17

1917: The US bought the Virgin Islands from Denmark for $25 million.
1966: Simon & Garfunkel released their second album “Sounds of Silence.”
1997: Ireland granted the first divorce in its history to a terminally ill man who wished to marry his new partner.
2012: Kelly Clarkson’s single "Stronger (What Doesn't Kill You)" is released in the U.S.