California Proposes 67% Cut to Journalism Funding

Categories: California Business NewsCalifornia News

A representation of how budget cuts are affecting local journalism in California.

News Summary

Governor Gavin Newsom has proposed a drastic 67% reduction in state support for journalism in California, slashing funds from $30 million to $10 million amid a $12 billion budget shortfall. This proposed cut threatens the sustainability of local newsrooms already facing financial challenges. The funding initiative was originally part of the California Journalism Preservation Act, aimed at supporting struggling news organizations through contributions from Google. Critics are raising concerns about the repercussions on local media, highlighting the need for continued support for journalism in the state.

California is facing significant changes in funding for journalism as Governor Gavin Newsom has proposed a 67% reduction in state support for a program aimed at aiding struggling newsrooms. The original funding plan was established through a partnership with Google, seeking to deliver $30 million to local news organizations. However, the proposed amount for the 2025-26 fiscal year has now been slashed to only $10 million.

The California Department of Finance confirmed the funding cut, attributing it to a projected budget shortfall of $12 billion for the upcoming fiscal year. This deficit has prompted broader budget cuts across the state, affecting various sectors, including healthcare for low-income undocumented immigrants and employee overtime.

Details of the Funding Initiative

The original funding was part of the California Journalism Preservation Act, introduced by Assemblymember Buffy Wicks from Oakland. This act was designed to compel Google to contribute to a fund, which would subsequently be distributed among California news outlets based on their reporter employment levels. The proposal received support from various journalism advocacy groups, aiming to bolster newspapers struggling with financial burdens.

To draw a parallel, a similar measure in Canada has Google contributing about $74 million annually to promote local news, setting a precedent for California’s efforts. However, Google expressed opposition to the California bill, raising concerns that its implementation could force the tech giant to remove California news from its platform, thus restricting access for residents.

Financial Breakdown of the Agreement

In August, in light of negotiations, a compromise was reached, where California committed to $250 million over five years to support local newsrooms. Additionally, there was a separate allocation of $68 million for artificial intelligence funding through a National AI Accelerator. The original funding framework included the state pledging $30 million in 2025 and subsequent payments of $10 million for each of the following four years. In turn, Google agreed to a payment of $15 million in 2025 and a total of $55 million to the journalism fund, along with an additional $50 million grant aimed at enhancing its journalism initiatives.

Reactions to the Funding Cut

The drastic cut proposed by Governor Newsom has drawn criticism from leaders in the local journalism community, including Rebuild Local News President Steven Waldman. Concerns are being voiced that this decision is regressive, especially given the current local journalism crisis affecting numerous publications across the state. Calls have been made for the California Legislature to conduct an open hearing to discuss the repercussions of these cuts and to explore potential solutions for adequately supporting journalism in the region.

State Budget Context

The revised California state budget stands at $321.9 billion and reflects a challenging financial climate. Cuts to essential services indicate the state is wrestling with significant fiscal constraints that are shaping policy decisions across various sectors. As a result, the prospect of reducing funding for journalism—a critical pillar of democracy—raises important questions about the future of media in California.

The initial anticipation of state support had sparked hope for revitalizing local newsrooms that have been negatively impacted by market changes and evolving media consumption habits. The drastic reduction in funding calls into question how remaining journalism outlets can sustain their operations in a challenging economic environment.

As the situation develops, stakeholders within the journalism field are urged to engage and advocate for the survival and support of local news, which serves as an essential resource for communities statewide.