NPR News Now – December 31, 2025, 3PM EST

Host: NPR News Anchor Amalakshmi Sang
Length: 5 minutes

Episode Overview

This brisk five-minute NPR News Now episode covers late-breaking news and updates from around the world. Major headlines include child care funding turmoil in Minnesota, the anniversary aftermath of a New Orleans terror attack, historic drops in U.S. mortgage rates, a deadly train collision near Machu Picchu, and New Year celebrations in Asia—all delivered in concise, factual segments.

Key News Segments & Insights

1. Minnesota Child Care Funding Suspended Due to Fraud Allegations

[00:14–01:18]

• The Trump administration suspends child care funding in Minnesota after viral allegations (disputed) of daycare fraud in Minneapolis's Somali communities.

• Escalating political standoff between Democratic Governor Tim Walz and state Republicans, who allege mismanagement of pandemic-era funds.

  Notable Quote:

  • "The governor says that he's trying to take some steps, as many steps as he's allowed by law. But Republicans are not satisfied with what he's done." — Minnesota Political Analyst ([00:54])

• Issue expected to become central in next year’s gubernatorial campaign.

2. New Orleans Terror Attack Anniversary: Security Remains Temporary

[01:18–02:19]

• January 1 marks one year since a vehicle attack on Bourbon Street killed 14.

• New Orleans still relies on temporary barriers (bollards, barricades, police) to secure the French Quarter.

• Permanent security upgrades, including $1.5 million for metal swing gates, are pending city council approval.

  Notable Quote:

  • "One police official calls a temporary solution to a permanent problem." — Debbie Elliott ([01:35])

3. U.S. Mortgage Rates Drop to 2025 Lows

[02:19–03:10]

• Freddie Mac’s final 2025 survey:

  • 30-year fixed mortgage: 6.15% (down from 6.85% last year, and nearly 7.9% in Oct. 2023)
  • 15-year fixed mortgage: 5.44%

• Although rates are falling, they remain above pandemic-era lows under 3%.

  Notable Quote:

  • "While current rates are comparatively low, that's likely little comfort to potential home buyers who recall the average lows of less than 3% seen during the pandemic." — Scott Newman ([02:26])

4. Train Collision Near Machu Picchu: 1 Dead, Many Injured

[03:10–04:13]

• Head-on collision between trains on route between Machu Picchu and Cusco, Peru.

• Single fatality (train driver); at least 30 injured, including American tourists.

• Rescue hampered by difficult Andean terrain; cause undetermined.

  Notable Quote:

  • "Peruvian media broadcast images of smashed train cars with broken windows and said that evacuation of the injured was hampered by the mountainous terrain." — John Otis ([03:27])

5. New Year’s Celebrations Begin Worldwide

[04:13–04:53]

• 2026 has arrived in UAE, Armenia, China, and elsewhere.

• In Beijing, celebrants ring in the Lunar New Year of the Fire Horse (starting February 17th) with drumming and horse imagery.

  Notable Moments:

  • "Happy New Year." — Celebrators in Beijing ([04:21–04:24])
  • "Drums boomed on a stage in Beijing as towering im of horses were displayed at the celebrations." — NPR News Anchor ([04:26])

Quick Financial Update

• "The Dow is down now more than 200 points." — NPR News Anchor ([04:53])

Memorable Quotes Recap

• Minnesota Political Analyst ([00:54]):
  "The governor says that he's trying to take some steps, as many steps as he's allowed by law. But Republicans are not satisfied with what he's done."

• Debbie Elliott ([01:35]):
  "One police official calls a temporary solution to a permanent problem."

• Scott Newman ([02:26]):
  "While current rates are comparatively low, that's likely little comfort to potential home buyers who recall the average lows of less than 3% seen during the pandemic."

• John Otis ([03:27]):
  "Peruvian media broadcast images of smashed train cars with broken windows and said that evacuation of the injured was hampered by the mountainous terrain."

• Beijing Celebrators ([04:21–04:24]):
  "Happy New Year."

Segment Timestamps

• [00:14] Minnesota child care funding crisis
• [01:18] New Orleans terror anniversary and security
• [02:19] U.S. mortgage rates drop
• [03:10] Deadly train collision at Machu Picchu
• [04:13] Global New Year celebrations
• [04:53] Quick financial update

This episode delivers succinct reporting on political controversy, public safety, economic shifts, international tragedy, and festive milestones, reflecting NPR’s balance of American and global priorities—all in a compact, headline-driven format.