California Cuts Funding for Google Journalism Initiative

Categories: California Business NewsCalifornia News

The reduction in journalism funding raises concerns for local news outlets.

News Summary

Governor Gavin Newsom has announced a major reduction in funding for California’s journalism initiative in partnership with Google, cutting the allocation from $30 million to $10 million for the 2025-26 fiscal year. This decision comes amid a projected $12 billion state budget deficit, raising concerns among local journalism leaders about the impact on struggling media outlets. The original plan was part of the California Journalism Preservation Act, aimed at supporting local newsrooms. Critics are urging state legislators to discuss the implications of these cuts for independent journalism in the state.

California – Governor Gavin Newsom has announced a significant funding cut to the state’s partnership with Google, reducing financial support for a journalism initiative intended to bolster struggling California newsrooms. The cut decreases the initially anticipated $30 million allocation to just $10 million for the 2025-26 fiscal year, amidst a backdrop of a projected $12 billion budget deficit in the state.

The California Department of Finance confirmed the funding reduction, citing lower-than-expected resources in the January budget. This decision comes as part of broader budgetary constraints, which have led to cuts across various sectors, including healthcare for low-income undocumented immigrants and reductions in overtime for some government workers. The revised state budget plan totals $321.9 billion.

The original funding plan was part of the California Journalism Preservation Act, which was proposed by Assemblymember Buffy Wicks from Oakland. This act aimed to introduce a structured revenue-sharing model where Google would contribute to a fund distributed among California news outlets, scaled according to their employment levels of journalists. Leaders in the local journalism community, such as the California News Publishers Association, had expressed support for this initiative as a means to assist newspapers grappling with financial difficulties.

The controversy around the partnership stems from Google’s opposition to the California Journalism Preservation Act, arguing that it could force them to reconsider their presence in the state due to potential obligations impacting their operations. The initiative was influenced by a similar proposal in Canada, where Google voluntarily contributes approximately $74 million annually to support local news outlets.

Despite initial tensions, an agreement was reached in August that outlined a commitment of nearly $250 million over five years to support local newsrooms and an additional $68 million aimed at artificial intelligence funding through a National AI Accelerator. Under this agreement, California was set to contribute $30 million in 2025, followed by $10 million in subsequent years, while Google was to pay $15 million in 2025 and a total of $55 million to the journalism fund. Furthermore, Google pledged an additional $50 million to enhance its own journalism programs.

The reduction in funding has drawn criticism from local journalism leaders, who argue that these cuts will negatively impact media outlets already facing challenges. Advocates for news preservation are urging state legislators to hold open hearings to discuss the ramifications of these cuts and to investigate potential avenues for better supporting journalism in California.

The decision to cut funding is set against the larger context of California’s economic situation, with the governor’s office navigating substantial fiscal pressures. As state officials focus on addressing the budget shortfall, many fear that the media landscape in California may further decline, limiting resources available for local journalism and diminishing coverage of crucial community issues.

With the funding potentially hampering journalistic efforts across the state, stakeholders within the media industry remain concerned about the future of independent journalism as essential information sources continue to struggle under financial constraints.