California Gov. Gavin Newsom plans no new local journalism funding despite $175 million funding deal with Google

"California Gov. Gavin Newsom's budget proposal includes no money for a fund formed last year to boost the state's local newsrooms, casting doubt on whether a heralded effort to help California journalists will amount to anything and how serious Newsom is about supporting the struggling industry. It's a significant walkback from an August 2024 deal between state leaders and Google in which they agreed to jointly spend $175 million over five years to fund local journalism."

"The deal, which Newsom hailed as a "major breakthrough in ensuring the survival of newsrooms" at the time, was reached after Google spent a record sum - $11 million - lobbying state lawmakers successfully to drop two proposals that would have forced Google to pay newsrooms for using their content. Under the agreement, the state would pay $70 million and Google $55 million into the newly established California Civic Media Fund for local news outlets."

"But in May 2025, citing budget restraints, Newsom slashed the state's first-year commitment to just $10 million for fiscal year 2025-26, with no future state funding guaranteed. Google subsequently said it would match the state's $10 million investment but no more. Google was clear in the deal that "its contributions were contingent" on state funding, similar to its journalism funding deal in Canada, said Erin Ivie, spokesperson for Assemblymember Buffy Wicks, an Oakland Democrat who brokered the deal in 2024."

Governor Gavin Newsom proposed no money for the California Civic Media Fund formed last year to support local newsrooms. The August 2024 agreement with Google called for $175 million over five years, with the state committing $70 million and Google $55 million plus annual $10 million newsroom grants. In May 2025 Newsom reduced the state's first-year commitment to $10 million for fiscal 2025-26 with no guarantee of future funding. Google agreed to match the $10 million but declined additional funds. Google spent $11 million lobbying to block proposals requiring payments to news outlets. Alphabet reported record revenue and a market cap over $4 trillion.

Read at Nieman Lab