California’s Big Bet on Government-Funded News

Gavin Newsom, California’s governor, had Matt Pearce sweating. Until the day before the signing deadline, Pearce didn’t know if the biggest piece of legislation he had ever worked on—one that creates a new standard for content-neutral government funding of local news—would become law or not. 

And then, on September 30, Newsom signed the bill, establishing a groundbreaking precedent for state support of local outlets. Soon, newsrooms will get a twenty-thousand-dollar tax credit every year for each of their first five journalists, plus fifteen thousand more for each journalist after that. If a newsroom opens a new position, that will bring in another fifteen thousand on top of the base credit. Everyone from a solo newsletter writer to Alden Global Capital will be eligible for the money as long as they meet some basic criteria about covering news responsibly for a California audience. 

I interviewed Pearce, a longtime Los Angeles Times reporter who switched to government advocacy after taking a buyout, about the long, slow road toward (partial) government solutions to the local news crisis. Listen below, or wherever you get your podcasts.

Show notes:

“California Roadmap,” Matt Pearce.

“AB-2222 Personal Income Tax Law and Corporation Tax Law: credits: local news outlets: business expense deduction: excessive employee remuneration,” California Legislature.

“Explainer: California’s Community NEWS Act (AB 2222),” Rebuild Local News.

“Local Journalist Employment Credit,” Rebuild Local News.

“Supporting Local Reporting in Illinois: Early Lessons and Opportunities,” Rebuild Local News.

Credits:

Host: Megan Greenwell

Producer: Amanda Darrach