New Risks for Trump After Iowa Loss – By BETH REINHARD, JANET HOOK and HEATHER HADDON Feb. 2, 2016 8:25 p.m. ET

Ted Cruz has more financial firepower than recent Iowa GOP winners; Marco Rubio also on upswing

Republican presidential candidate Donald Trump visits a campaign office Tuesday in Manchester, N.H.

Republican presidential candidate Donald Trump visits a campaign office Tuesday in Manchester, N.H. — Photo: Matt Rourke/Associated Press

MILFORD, N. H.—Beaten in Iowa but unbowed, Republican Donald Trumpreturned Tuesday to the state that has served as his campaign home base facing a new set of challenges in what is likely to be a must-win primary.

Iowa winner Ted Cruz arrived in New Hampshire Tuesday with momentum, money and a tested voter-turnout machine—one strong enough to force Mr. Trump into a second-place caucus finish. That is a sharp departure from recent Iowa GOP winners, who lacked the financial resources to build on their victories and win the nomination.

The businessman also has seen his own stature diminished after failing to meet expectations in Iowa, where he led in most polls in the days before Monday’s balloting. And a new threat is emerging with the rise of Marco Rubio in the candidate pack. The Florida senator finished third in Iowa, just one percentage point behind Mr. Trump.

Mr. Trump must now decide whether he is willing to invest more of his own money into his campaign. He is currently airing less than $1 million in television ads this week aimed at New Hampshire ahead of next Tuesday’s primary, according to media trackers. He also must decide whether his campaign has enough time and connections in the state to create a turnout operation that can compete with Mr. Cruz and other challengers who have been building get-out-the-vote machines for months.

“He needs to be more focused in his attacks against Rubio and Cruz,” said Republican consultant Roger Stone, a former campaign adviser to Mr. Trump who is also advocating for more TV ads. “He needs to define Rubio and Cruz as career politicians who just talk a great game, and talk more in a positive way about his economic plan.”

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