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When you view the category carousel, the selected feed will no longer show an underline. Instead, it basically highlights the category to make it easier to see which feed you’re in. One-handed reachability is not affected by this, but navigation is simplified with the change.
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Consolidating the Google News bottom bar from four to three tabs is not a new decision from Google, as it also made this change to Google Photos and Google Maps. Not only does reducing the number of tabs in the bottom bars make things simpler but it also looks better due to the minimalism, and feels more elegant for Material You.
The Google News redesign is rolling out with version 5.120.x on Android through a server-side update. For iOS Google News users, the new look is not yet live, but should be coming. Unfortunately, though, if you like dynamic color theming on Android, that feature won’t be used in the Google News redesign since it continues to use the blue accent color.