I forgot how to enable HTML in news posts. :/

Options > Access Levels > Edit the access level your account is currently assigned to > Can this access level use HTML?: Yes

As a side note, 3.7 is going to be released within the next hour which has removed the need to enable html as it has a new wysiwyg editor integrated.

What about in the newer version? (I feel silly for repeatedly asking this question.)

When adding news using 3.7, the toolbar buttons that appear above the box you enter your news in. Click on the button on the far right side. This will switch between the wysiwyg editor and the plain text box so you can paste html.