California Governor Gavin Newsom has proposed a significant funding cut for the state’s newsrooms, reducing the expected $30 million to $10 million for the 2025-26 fiscal year. The decision comes amid financial pressures that have prompted broader budget cuts across the state.
The funding was part of a deal with Google, aimed at supporting local newsrooms through the News Transformation Fund. This initiative was designed to help struggling newspapers, which have faced financial challenges in recent years. The California Department of Finance confirmed the reduction, citing more limited resources than initially projected in the January budget.
Governor Newsom announced that California is facing an additional $12-billion budget shortfall next year. The revised $321.9-billion budget plan will also include reductions in healthcare for low-income undocumented immigrants and decreased overtime hours for certain government employees.
The News Transformation Fund was initially part of a broader negotiation involving Assemblymember Buffy Wicks’ proposed California Journalism Preservation Act. The act would have required Google to contribute annually to a fund supporting California news outlets. However, the state and Google instead agreed to provide nearly $250 million to newsrooms over five years, starting in 2025.
Rebuild Local News President Steven Waldman expressed concern over the funding cut, describing the initial $30-million pledge as a “modest but meaningful first step.” He urged the Legislature to hold an open hearing to assess the impact of the funding shortfall and explore ways to ensure adequate support for local journalism.
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