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CNN International: Police: Around 40 Killed In Swiss Resort Fire; Officials; Some Patients Will Be Sent To Neighboring Countries; Trump's Sweeping New U.S. Travel Ban Now In Effect; Next Hour: Mayor Zohran Mamdani's Inauguration; New SNAP Bans On Soda, Candy Now In Effect In Five U.S. States; Smart Financial Tips For 2026. Aired 12-1p ET

Aired January 01, 2026 - 12:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[12:05:54]

PAULA NEWTON, CNN ANCHOR: Hello, everyone. You have been watching a press conference in Switzerland there after what had been absolutely tragic events in a Swiss ski resort in Switzerland.

I'm Paula Newton in New York. And we will cover the story now as we have learned so much from this press conference.

But first and foremost what a sobering reality for this country and beyond. The president of Switzerland calling it one of the worst tragedies the country has ever seen.

And at this point, what we know, at least 40 people have died, 150 injured, many with severe injuries including burns. And unfortunately, these authorities have said that many of the people that are dead and injured are very young.

They were celebrating the beginning of the New Year in a nightclub, Le Constellation, which has a capacity of about 300 people. And there was a fire. But authorities there also saying that there was likely an explosion. They do say that the cause of this fire that is far too early to speculate.

Our Nada Bashir has been listening in with us and she joins us now from London.

And as I said, just incredibly tragic here, especially given the fact that authorities were saying that in terms of attending to the victims that it was all hands on decked and they continually described it as the scene of violence when those first responders arrived at the scene.

NADA BASHIR, CNN CORRESPONDENT: That's right, Paula. And we have seen some of the distressing video that has been emerging from the scene filmed by eyewitnesses. And you can hear the screams of those inside the bar as that blaze spread throughout the venue.

And we've been hearing more details just in that press conference just listening in there, expanding what we had heard earlier in the day from police officials and local authorities.

As you mentioned, at least 40 people confirmed to have been killed in that blaze, at least 100 others said to be injured.

And the priority as officials there kept reiterating for now remains on trying to identify the victims on trying to provide as much information as they can to their family members.

And loved ones we did hear from the president of the state council who said, it will be some time yet before we can identify all of the bodies. And a number of those families impacted are still waiting for confirmation. So this is an unbearable and difficult moment for so many.

What we also heard reiterated in that press conference just there from many of those on the panel was the sheer scale of the emergency response effort. We'd heard earlier in the day about the mass mobilization of ambulance teams and 40 ambulances 150 medical personnel being mobilized.

But what we've also learned in that press conference is that a number of the victims and casualties were then evacuated to various different hospitals. Some are being prepared to be evacuated internationally for specialized care.

There was reference and mentioned there to some being evacuated to Italy for example. And that is something that the Swiss president also touched on right at the beginning of that press conference that he, as a nation, they have received support from all European nations and allies at providing support.

[12:10:11]

Of course, on the emergency response effort important to underscore, Paula, that the state of emergency has now been declared and it could be some time before investigators are able to really get to grips with what happened there.

There's been some speculation around the cause behind this fire. We did hear from two eyewitnesses who spoke to CNN affiliate, BFM TV, who said that they had seen waitresses carrying champagne bottles with sparklers inside them that the sparklers may have set light to the ceiling.

At this stage, the officials and authorities that we've been hearing from have been very clear that it is simply too early to see and indicate what the cause of the blaze may have been. That is something that they are still looking into.

One thing that was touched on actually just in that press conference from the attorney general was that there will be questions around the fire safety issues that may have been at play. That is something investigators will want to look into.

She did make mention of the very narrow staircase in the property in the building and given the sheer scale, the number of people that would have been there celebrating New Year's. That might be a key point of concern as well.

But again, it is very early stages. They are waiting for the venue to be secured for investigators and experts to be able to gain full access. At this stage, as reiterated multiple times, the priority is trying to identify the victims and provide support to those family members and loved ones.

NEWTON: Yes. And the agonizing wait for those families who are waiting to identify those who -- who have sadly passed away and also those who are injured so many families looking for answers right now.

Nada Bashir, grateful to you.

Now, here's what how one witness described the horrific scene and what happened afterwards.

(BEGIN VIDEO CLIP)

DOMINIC DUBOIS, WITNESS: Understandably, they don't want civilians getting in and involving and getting in the way. And many -- many were able to help carrying, I don't want to say corpses. I think at one who is out and kind of reactive, survived.

But carrying bodies out of the fire from there at least a bit further away. You see there there's the (INAUDIBLE) that was the first kind of responding place. They did amazing to stay open.

It was warm in there. That was what was needed. As mentioned before, the main problem was the temperature shock from the heat inside to the cold outside.

So one of the priorities was to get everyone warm. I mean, I'm talking the curtains of the restaurants was used.

And, yes, I mean, many, many gory scenes. There were many who were very strong, who stayed strong and who understood that their life was in great danger but decided that mentally it was more important to stay calm.

We pushed all the tables. And all the tables were pushed aside and people entered and it was warm in there. That was more light as well. So the triage was done there. All the paramedics, I mean paramedics, police, not the firemen, the firemen were out here.

And then it was just ambulances coming back and forth as much as possible bringing them down to the (INAUDIBLE). The (INAUDIBLE) from understanding was the less severe victims. So basically they told us anyone that can walk. Anyone who was pretty conscious can go there. And then the others were taken down to wherever else started.

(END VIDEO CLIP)

NEWTON: That's Dominic Dubois there.

We do want to bring in independent fire consultant Stephen Mackenzie. And, again, obviously, the tragedy on the ground here that's being dealt with, they first have to attend to identifying the bodies, taking care of the victims who now given.

They've indicated, right? Even those 115 injured and many of those critically with severe burns or injuries will now have to be taken to not just other health centers in Switzerland but perhaps outside of the country as well.

Stephen, before we get to really dissect this from a forensic point of view about what the cause could have been, I mean when you see this kind of tragedy unfold for first responders in Switzerland which obviously is dealing with a lot here. The president in fact indicated that there would be solidarity, unity, and prayer but obviously a lot to deal with your first responders in a very small town.

STEPHEN MACKENZIE, INDEPENDENT FIRE CONSULTANT: Absolutely. You've got the initial police response in an entire apparatus where the (INAUDIBLE) response has been escalated to a major incident, drawing in all local and federal resources. We've even seen mention today from the press conference that is now an international relief effort because so many of the victims have been badly burned and the local hospitals are stretched but coping.

But there are international centers of excellence for burns treatment and those kind of offers are now being accepted with victims being ready for transport. And they give relief to the local hospital apparatus.

[12:15:12]

What's escaped me, when we see these incidents, we see them time and time again from the 1981 Dublin Stardust fire, 48 dead, 214 injured. The Gothenburg fire in 1991, 63 killed, 213 injured. And then the Station Nightclub fire in 2013, which was stage pyrotechnic set fire to acoustic titles resulted in 100 killed and 250 injured.

And now today on New Year's day 2026. We've got confirmed reports of at least 40 dead and over 150 injured.

And we are hearing some very grim reports about the injuries. And there major lines and (INAUDIBLE) now as to what the causation was, what the fire spread dynamics were and the Crown Prosecution Service in the country, or the -- the federal prosecutor, has made specific mention of the advocacy from the basement level club, which can house all up to 300 people, but we do not know the exact numbers that might have been over capacity.

And we don't know if it is able to evacuate. We don't know if there are primary and secondary evacuation there is. We don't know if there (INAUDIBLE) instant.

There are more questions than answers just now for the investigators to generate the hypothesis, get the building stabilized and send in the forensic teams.

NEWTON: You know, as you've just outlined, quite grimly, this has happened before. And let's be clear, young people celebrating in nightclubs. This is something that is almost universal throughout the world, right?

You have seen these kinds of tragedies in so many countries and so many continents. So pertinent here as the Swiss outlined themselves in the press conference that they get to the bottom of what happened.

When we start to look at the fact that certainly the attorney general was not denying that there might have been sparklers on top of champagne bottles that perhaps the staircase to get out the exit, the staircase might have been narrow. They are indicating the fact though that there might have been a fire, but then also an explosion.

Given the dangers here, how does that sound to you in terms of really illuminating why this happened so quickly and why it was so deadly?

MACKENZIE: We don't -- we don't know. We need to see the eyewitness occurrence in a CCTV, any witness statements in any forensic for an investigation, actually digging down into the (INAUDIBLE) unfortunately personal recovery or identification.

And -- and also then tracing back to the area of fire origin and then determine what was the sequent fire spread from the first item ignited in the ignition source, then how it spreads so rapidly, what were the environmental or physical characteristics of the building, what led to the fire then resulting into an explosion, or was it another fire phenomenon such as a flash-over or the American term backdraft? Did that occur?

And then what limited so many resulting in burns injuries, which are incredibly unusual, normally it is the smoke inhalation that causes many fatalities and injuries. Why -- why are so many people suffering burn injuries?

And -- and what's the consequence of that and what medical treatment. And then through life treatment, will they need to undergo potentially with life-changing injuries?

There are so many questions just now. And I think we've seen the -- the international community to reach out to the Swiss and the Swiss federal response, actually mobilizing that even saying today there will be a formal inquiry.

But we've also seen that foreign embassies and anticipation that many of those injured will -- will not be from Switzerland, it'd be from other countries celebrating in Switzerland, that the entire apparatus is now mobilizing, including the U.K. foreign prominent (INAUDIBLE) was posted out on the afternoon for consular support to any families or victims or the injured and country to reach out and get adequate support.

And we've also seen the Swiss federal government extending the support to the emergency services, which is absolutely key because we believe some of the conditions experienced in responding to today were absolutely horrific.

[12:20:02]

And I think that is a good place to pause for me other than answering any other questions.

NEWTON: You've outlined a lot for us there, and I want to think about it. And you're right to point out to the lung injuries, again, pointing to just something so catastrophic going wrong inside that nightclub.

I do also want to point to the fact that so many of the authorities pointed out that the young people on the scene were absolutely heroic in trying to really help those people that were injured even they themselves suffering from injuries trying to attend to those that were more severely injured.

Stephen Mackenzie, we will leave it there for now, but we will continue to monitor the story. Grateful to you.

We'll have more on our top story on that fire in Switzerland when we return.

(COMMERCIAL BREAK)

NEWTON: More now on our top story from Switzerland where a New Year celebration's turned into tragedy. And we just heard from regional authorities who say the fire left about 40 people dead.

The flames tore through a crowded bar at the heart of a luxury ski report in Crans-Montana. Around 115 people are believed to be injured. Many of them severely victims are being treated in hospitals across Switzerland.

Now, while the investigation is in its early stages, police have ruled out a terror attack. Witnesses tell CNN affiliate BFM TV that the fire was started by sparklers placed in champagne bottles.

A group of Ukraine's allies known as the Coalition of the Willing is set to meet next week. This comes as Ukraine's wartime president expresses a fervent wish for peace.

Volodymyr Zelenskyy says a peace agreement for his country is 90 percent ready after discussions with his U.S. and European allies.

Now in his New Year's Eve address, Mr. Zelenskyy says the remaining 10 percent will, quote, determine the fate of peace, the fate of Ukraine and Europe.

(BEGIN VIDEO CLIP)

VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT (through translator): Ukraine does not need a Minsk style meticulously drafted trap. Signatures under weak agreements only fuel war. My signature will be under a strong agreement. And that is exactly what every meeting, every call, every decision is about right now to secure a strong peace for everyone, not for a day, not for a week, not for two months, peace for years. Only then will it truly be a success for Ukraine, for America, for Europe and in truth for every nation that wants to live, not to fight.

(END VIDEO CLIP)

NEWTON: Russian president Vladimir Putin, in the meantime, delivered his own New Year's address telling his troops the country believes in them and in Russia's victory in Ukraine.

Now a sweeping new U.S. travel ban largely targeting African countries takes effect today. Citizens from Burkina Faso, Mali, Niger, South Sudan, Sierra Leone, Syria and Laos join 12 other nations whose citizens are already barred from entering the United States. Nineteen countries now face a total ban and 20 nations face partial bans.

[12:25:10]

The White House defends the move, saying, it will, quote, protect the U.S. from national security and public safety threats.

Mali and Burkina Faso have joined a list of countries imposing reciprocal travel bans on Americans.

Joining us now is CNN's Larry Madowo who's been following the story. And, you know, you are -- are normally reporting from Africa, Larry. And I have to ask you, we have heard the Trump administration even in Trump 1.0 try and put in these kinds of travel bans. But how significant will the impact of this one be this time?

LARRY MADOWO, CNN CORRESPONDENT: This is a bigger travel banning that affects more African countries. In fact, 67 percent of these nations under partial of full restrictions are African, Paula. So that's a big number. It means nearly half of all African nations face some kind of restrictions for travel to the United States.

So that means whether it's for business, for family, for the World Cup which is this year, asylum cases all of those are coming to a stop. So countries like South Sudan, Sudan, Sierra Leone and a few others have no access totally to the United States.

That's why you see Mali and Burkina Faso matching America's energy going ban for ban or aura for aura and putting in similar restrictions for Americans. They follow Chad that made that decision a few months ago and then Niger that have also has also said that they will be reciprocating and retaliating against the United States.

Obviously, they cannot match up economically, but they see that as a form of defiance trying to reclaim the dignity in the face of these travel restrictions that will have far-reaching consequences for some of these countries.

And the criticism here is that this is essentially similar to what you mentioned in the first term. A Muslim ban that also includes an African ban. The countries outside of Africa that have these restrictions as well. Many of them are Muslim majority such as Afghanistan and Syria and the Palestinian Authority and Iran.

So when you put all that together, it tracks what President Trump has said that he intends to permanently pause migration from all third world countries. And that's what we're starting to see the first aspects of here.

So, what is the difference between a partial and a full ban? The men complained from the United States that these countries don't have strong vetting procedures, that they can't trust the documents issued by them either because they don't have functioning governments because of fraud, because of terrorism, because they have citizenship and investment schemes or some of these countries, the citizens overstay their visas. And when they transcend them back, the countries don't accept them.

So the way to get some compliance is by adding them to these travel bans that might include diplomats. It might include other parts, business travelers, tourists, unless they cooperate and then they get downgraded, Paula.

NEWTON: And we will see if there are any policy changes to this as this unfolds over the next few months.

Larry Madowo, grateful to you. Thank you.

Now our coverage of the Swiss resort fire continues after the break. We'll look at what may have started the fire and update you on the number of fatalities and injuries.

Plus, Queen Camilla talks about a terrifying attack from her youth. Find out how it has impacted her view on violence against women.

(COMMERCIAL BREAK)

[12:30:36]

NEWTON: And welcome back to "CNN Newsroom." I'm Paula Newton.

The president of Switzerland says the country is united in grief and solidarity, after what he called one of the worst tragedies it has ever seen.

Police say around 40 people were killed and 115 others injured after flames tore through an exclusive ski resort in the Swiss Alps. Victims are being treated in hospitals right across Switzerland.

It happened at a packed bar in the region of Crans-Montana as people were ringing in the new year early Thursday morning. Witnesses tell CNN affiliate BFM TV that the fire was started by sparklers and champagne bottles that were carried too close to the ceiling.

Nada Bashir joins us now with a closer look at this tragedy. And, Nada, I have to say we just completed a very extensive press conference. They're saying it's way too early to speculate on a cause. What is certain though is, you know, what the destruction and the devastation left behind in this community and beyond.

So many of the young people that are dead and injured. Really, the authorities went out of their way to describe what was seen there and what happened as scenes of violence. BASHIR: That's right, Paula. And we have been seeing video emerging throughout the day shot by eyewitnesses on the ground. And some of those videos, you can hear the distressing screams of those victims. Some of those killed, some of them survivors inside the venue as the blaze continued to spread.

And what has been reiterated by officials and authorities throughout the day is the sheer scale of the emergency response effort that was underway almost immediately after the fire broke out around 1:30 in the morning as New Year celebrations were still taking place.

Take a look.

(BEGIN VIDEO CLIP)

BASHIR: A new year's party at a Swiss ski resort turned deadly after a fire broke out inside a crowded bar. Authorities say dozens of people are presumed dead and around 100 were injured. A video widely shared online appears to show the venue as the fire was burning.

The fire started at around 1:30 am at Le Constellation, a lounge bar in Crans-Montana, a town in southern Switzerland famed for its ski slopes and high-end tourism. Witnesses describe seeing an explosion which firefighters say was caused by the fire which ignited air in the venue.

BEATRICE PILLOUD, PROSECUTOR (through translator): There are quite a few circumstances to be clarified through initial investigations. I would like to point out that as things stand we are treating this as a fire and there is no question of any kind of terror attack at this stage.

[12:35:07]

BASHIR: Emergency crews rushed to the scene. The area has been sealed off and a no-fly zone put in place over Crans-Montana. Rescue efforts are still ongoing as a state of emergency has been declared.

Authorities say the cause of the fire has not yet been determined and the investigation is still in its early stages.

PILLOUD (voice-over): The first point I would like to make is that we will do everything in our power on the part of the public prosecutor's office to clarify the circumstances surrounding this tragedy.

A helpline has been set up for families seeking information.

(END VIDEOTAPE)

BASHIR: Now, Paula, as you mentioned, we have just seen a pretty extensive press conference being held by officials, local authorities, including the Swiss president. And we have been learning more details as the day has gone by around the investigation, which as we've said is still very much in its early stages.

Now, as we understand it, many of those who were injured in this blaze and those who were killed were believed to be young people. There are still family members that are waiting for confirmation of the condition of their loved ones. And, of course, they are still trying to identify some of the victims of this overnight blaze.

What we do know as well, according to the Swiss president, is that this has been truly international efforts as well. We have seen, of course, the mass mobilization of the Swiss emergency services, but it is now understood that some of the casualties, some of those injured, are being evacuated to hospitals overseas, including in Italy for specialist care.

And this has really been a huge effort by the emergency services to try to quickly grapple with what has been a huge tragedy for the country to come to terms with at this stage as we have had reiterated a number of times, it is still early stages in the investigation.

No clear indication of what the cause behind the fire was, but, of course, investigators are saying they will keep those updated, the family members updated as they get more information.

NEWTON: Yes. And finding out how this happened, how to avoid it, another time his key use was president himself saying that these young lives can't be signed -- summed up in the way they ended, but in the promise that they held.

Nada Bashir, grateful that you to continue to follow the story for us.

Now, Britain's Queen Camilla is speaking out for the first time about being attacked when she was just a teenager. She says she had to fight off a stranger on a train.

(BEGIN VIDEO CLIP)

QUEEN CAMILLA, UNITED KINGDOM: I remember something that's been lurking in the back of my brain for very long times, that when I was a teenager, I was attacked on a train. And I'd sort of forgotten the party, but I remember at the time being so angry, it was anger. And I thought, why is this? It is sort of boy. I thought it was an old man. It was probably not a great deal (INAUDIBLE).

But and I think --

UNIDENTIFIED FEMALE: An attack in -- in what way?

QUEEN CAMILLA: On a train.

UNIDENTIFIED FEMALE: You're on a train.

QUEEN CAMILLA: On a train.

UNIDENTIFIED FEMALE: And someone you didn't know.

QUEEN CAMILLA: Somebody I didn't know. I was reading my book. And, you know, this boy man attacked me. And I did fight back. And -- and I got off. I remember getting off the train and my mother looked at me and saying, you know, why is your hair standing on end? And why is button missing -- you know, missing from your coat?

And I was a physically attacked. But I remember anger. And I was so furious about it. And -- and it sort of lurked for -- for many years. And I think, you know, when all the subject about domestic abuse came up and suddenly you hear a story like John and Amy's, it all, you know, it's something that I feel very strongly about.

(END VIDEO CLIP)

NEWTON: Extraordinary disclosures there for the Queen. Now she brought up the incident while talking about violence against women in that BBC radio interview you just heard there.

And details of the attack first came out in a book earlier this year after an official recounted a story who reportedly heard from the Queen. Buckingham Palace has not released an official statement on the attack.

Coming up for us, first day on the job, New York mayor, Zohran Mamdani, prepares to address a crowd just hours after being sworn in.

The New Year is bringing new rules, in fact, for Americans in several states who rely on the federal food program, what groceries, those shoppers now can and cannot buy with that aid.

(COMMERCIAL BREAK)

[12:40:14]

NEWTON: A luxury ski resort in the Swiss Alps is the site of a New Year's tragedy. More on our top story now.

A fire ripped through a crowded bar in the early morning hours at the resort of Crans-Montana. It's popular with tourists right around the world. Swiss police say about 40 people died in the blaze and 115 injured. Many of them still in critical condition.

Police are trying to identify the deceased and the victims who are injured. Witnesses tell CNN affiliate BFM TV, the fire was started by sparklers placed in champagne bottles, but authorities caution that it's far too soon to determine any cause.

One local resident describes what he saw.

(BEGIN VIDEO CLIP)

SAMUEL RAPP, WITNESS (through translator): There were people screaming and then people lying on the ground probably dead. They had jackets over their faces. Well, that's what I saw. Nothing more.

Then I received videos where people were trying to get out, but they were trampling over each other. So it was hard to get out through the exit. And there were people shouting saying, help me, please help us.

(END VIDEO CLIP) NEWTON: The Swiss president says, many of the victims were young people. And we will continue to follow the story very closely in the coming hours and bring you updates as we receive them.

Now, in the next hour, Zohran Mamdani is set to speak on the steps of City Hall. This will mark his first public ceremony since being sworn in as the mayor of New York.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Congratulations, Mr. Mayor.

(CHEERS AND APPLAUSE)

(END VIDEO CLIP)

NEWTON: Just after midnight, Mamdani made history. You see him there inside a former subway station. The 34-year-old, immigrant from Uganda, is New York's first Muslim mayor and the youngest in more than a century.

[12:45:06]

This year will test his campaign promises to tackle the affordability crisis in one of America's most expensive cities.

Gloria Pazmino is tracking this historic moment. As you've tracked his campaign throughout, Gloria, what more are we expecting in the first few hours and days of this administration?

GLORIA PAZMINO, CNN CORRESPONDENT: Yes, Paula. You know, today is a day that's all about the symbolism and we saw the beginning of that with the inauguration ceremony last night at that subway station, which is actually underneath of where I'm standing right now, underneath City Hall Plaza.

And it's symbolic because it was one of the original New York City subway stations that opened in the 1940s. And Mamdani has made public transportation a cornerstone of his campaign. So that was the symbolism behind that.

Now, here at City Hall Plaza, in just a -- a few short minutes, we are expecting to see the public inauguration of Zohran Mamdani. There are thousands of people that are packed into this plaza here behind me around 4,000 guests and then thousands more that are lining the streets outside of City Hall for a massive watch party that his transition is hosting for supporters.

And I have to tell you, Paula, it's very cold, but people are here. There's a big, you know, exciting energy. There's music that's playing for guests while they wait the ceremony to begin.

So today is all about the symbolism. Zohran Mamdani, the first Muslim mayor to be elected in the history of the City of New York, will be using a Quran to take his oath of office. He will be using his grandfathers and his grandmother's Quran and that's going to be a big moment with a lot of meaning and symbolism for the city's Muslim community that really rallied behind him during the election. He's making history in that way.

But then, of course, the hardest part of all of this starts now and that is governing. And you spoke about the promises that he made during the campaign, tackling the affordability crisis, creating universal childcare, making buses fast and free, and that is going to be the work that's ahead of him. It will not be easy, but he has promised to take on those crisis, those affordability crisis costs and trying to solve the problem of affordability here in New York City.

NEWTON: Yes, a tall task, as you will know, Gloria. He should be, you know, counseled to enjoy today. The expectations are high. And I know you will continue to follow how this develops.

In fact, stay with CNN. We will have special coverage, including Gloria, at the inauguration of Zohran Mamdani and that begins next hour.

OK. Now, we were just talking about the affordability crisis. Well, starting today, Americans who rely on the Federal Food Assistance Program, commonly known as SNAP, they have to make drastic changes to the way they shop. That's after five states put in place new restrictions on those benefits.

Beau Bowman of CNN-affiliate KCCI has more now from Urbandale, Iowa.

(BEGIN VIDEOTAPE)

BEAU BOWMAN, KCCI REPORTER (voice-over): Starting January 1st, you'll start to see signage like this in Fareway Stores all across the state, explaining the changes to SNAP benefits, mainly the new list of items you can and cannot purchase using an EBT card.

ELIAS JOHNSON, VICE PRESIDENT OF COMMUNICATIONS, FAREWAY: We're going to try to make it as easy as possible.

BOWMAN (voice-over): The law that goes into effect Thursday prohibits the use of EBT cards to buy sugary foods like soda and candy. And in some instances, prepared food. Granola bars may qualify, but only if they contain flour.

Fareway's vice president of corporate outreach and communications, Elias Johnson, says each store is teaching the new rules to their employees and their customers in an effort to make the transition seamless.

JOHNSON: Change isn't easy for everybody, but it's another opportunity for us to make sure that we support our customers so that they know what they can and they cannot use that benefit for.

BOWMAN (voice-over): The new law's proponents argued this would highlight healthier foods. Governor Kim Reynolds said in a statement when the changes were signed

into law, their purpose is, quote, to promote healthy eating and protect future generations from disease and to ensure SNAP fulfills its core function. We need a change.

Critics say the requirements can cause some confusion and add to the stigma surrounding food assistance.

LUKE ELZINGA, IOWA HUNGER COALITION: This bill punishes poor people, increases program stigma and pushes -- pushes the false notion that low-income Iowans cannot be trusted to make the best food choices for their families.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

[12:50:43]

NEWTON: So for many of us, the New Year brings a renewed focus, right, on setting goals and making resolutions. Financial planners say it is a good time to look at budgets and spending habits.

CNN's Jenn Sullivan is here with some smart money tips for 2026.

(BEGIN VIDEOTAPE)

JENN SULLIVAN, CNN REPORTER (voice-over): It's a hangover that can't be cured in a day, holiday debt. And it's a financial headache hanging over millions of Americans after the holidays.

A recent survey from LendingTree found 37 percent of respondents racked up holiday debt averaging around $1,200.

MARK HAMRICK, SENIOR ECONOMIC ANALYST, BANKRATE: Among the priorities Americans should have for the new year, pay down highest cost debt.

SULLIVAN (voice-over): Mark Hamrick with personal finance like Bankrate says paying off debt is the first thing people should do to reset their finances in 2026. Next, he says take a hard look at your monthly spending.

HAMRICK: My personal preference would be that somebody probably doesn't allocate more than a third of their monthly income to those kinds of housing related expenses.

SULLIVAN (voice-over): Hamrick says rising energy costs have made utilities more expensive, so housing costs may eat up more of your budget.

HAMRICK: The reality for homeowners is that this is a very volatile price environment.

SULLIVAN (voice-over): Hamrick says your household should have an emergency fund of at least $1,000. And here's how you can grow your money in the future. Hamrick says to put more money into a high-yield savings account, which can have an annual return of about four percent.

So let's crunch some numbers in this Bankrate calculator. If you put $5,000 into an HYSA with a four percent annual return and you contribute $100 a month, in 10 years, you'll have made more than $5,000 just in interest, growing your account to more than $22,000.

Also, look into Certificates of Deposit known as CDs. Those accounts also offer a fixed interest rate.

For consumer watch, I'm Jenn Sullivan.

(END VIDEOTAPE)

NEWTON: So every time zone has now officially welcomed the New Year. Here in New York, that iconic ball drop featured a dazzling new ball with more than 5,000 Waterford crystals. Times Square was packed as always, although it was cold.

The party had been going around the globe for hours. Just before that ball drop in New York, CNN was there.

(BEGIN VIDEO CLIP)

[12:55:03]

ANGUS WATSON, CNN PRODUCER: Guys, welcome to 2026. Happy New Year from Sydney, Australia.

HANAKO MONTGOMERY, CNN CORRESPONDENT: I hope you like my sparkly golden hat. Kind of makes me look like a unicorn as well. But it's been a great start to the New Year.

UNIDENTIFIED FEMALE: Happy New Year, Tokyo.

KRISTIE LU STOUT, CNN CORRESPONDENT: If you think Labubus are going to be out in 2026, you're --

WILL RIPLEY, CNN SENIOR INTERNATIONAL CORRESPONDENT: Oh, my god.

LU STOUT: Delulu. Oh, my gosh. This is a New Year's Eve miracle. Can I have a hug? Can I have a hug?

RIPLEY: Did you -- did you know about this? Did she know about this?

MIKE VALERIO, CNN CORRESPONDENT: It's a little hard to see this bear thermometer, but, oh, my God. We're closing in on negative 30 Celsius which is negative 30 Fahrenheit. But we're all so tight. Woo. We are in one of the ice tunnels of the Harbin Winter Festival.

UNIDENTIFIED MALE: One, two, three, let's go.

BECKY ANDERSON, CNN ANCHOR: Hey, John, I hope you're getting ready for your first trip ever out to Abu Dhabi. You're going to help me ring in the New Year here. And I've got sorted with a whole bunch of adventures for you.

UNIDENTIFIED MALE: Good to go.

UNIDENTIFIED MALE: We're feeling good.

ANDERSON: Here we go.

UNIDENTIFIED MALE: Happy New Year.

ANDERSON: Happy New Year.

PAU MOSQUERA, CNN CORRESPONDENT: What you see here around me is the inside of the tower that houses Madrid's most famous clock, the one that is located in iconic Puerta del Sol.

Since the beginning of the 20th century, this clock has marked the 12 chimes on New Year's Eve.

UNIDENTIFIED FEMALE: Oh. Happy New Year.

(MUSIC)

UNIDENTIFIED MALE: Step, step, step, kick it. Step, step, step, kick.

UNIDENTIFIED MALE: Who want this, baby?

(FIREWORKS)

MAX FOSTER, CNN CORRESPONDENT: We're just going to talk about a few of the myths of old landside.

MICHAEL PEDERSEN, EDINBURGH'S POET LAUREATE: There's nothing indicatively in the song which says it should be sung at New Year.

FOSTER: Yes.

PEDERSEN: Yes. It's a song of celebrating friendships past and present of reminiscing about the past whilst looking to the future, which I think sort of speaks to the spirit of New Year.

(END VIDEO CLIP)

NEWTON: Here at CNN, we want to wish all of you a very happy New Year.

I'm Paula Newton. Thank you for watching. Our coverage, our live coverage, continues next.

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