News Summary at 2:03 p.m. EST

Republican leaders are scrambling after midterm losses, with Ron DeSantis describing the defeat as an “extinction-level event” and Ted Cruz comparing it to a “Watergate-level repudiation.” The party is split on next steps: some want a return to fiscal conservatism, while others argue for embracing President Donald Trump’s politics. Trump’s continuing influence over the GOP’s direction remains a central question, and infighting is expected to intensify through leadership battles and policy decisions. Meanwhile, House Democrats plan to kick off their new majority on Jan. 3 with early votes focused on boosting Medicaid and expanding Affordable Care Act subsidies, along with measures to stop the Iran war and reverse some Trump tariffs.