Gavin Newsom Cancels His Own $250 Million Deal to Save California Newspapers

"Back in 2024, Governor Gavin Newsom signed a deal that persuaded Google and Facebook parent company Meta to pay $250 million over five years to help save local California newspapers, a medium whose advertising had been completely siphoned off by Google, Facebook, and Instagram, among other companies. At the time, Newsom declared, This agreement represents a major breakthrough in ensuring the survival of newsrooms and bolstering local journalism across California leveraging substantial tech industry resources without imposing new taxes on Californians."

"Fast forward a year and a half later, and Newsom has quietly killed the deal. Newsom just introduced his proposed $400 billion budget for 2025-27, and Bay Area News Group reports that Newsom has eliminated the newspaper subsidy in that budget. Moreover, Newsom's office has not commented on why, or given any explanation for doing this. But other parties have plenty of comment about the program being eliminated."

"It seems shockingly short-sighted when it comes to supporting local journalism which by now we know has no commercial future, University of Pennsylvania professor of media policy Victor Pickard told the News Group. I understand there may be budget shortfalls and there are always thoughtful decisions that need to be made about funding but local journalism should be a higher priority."

"The state of California was paying into the fund, as were tech companies like Google and Meta. California contributed $10 million in 2025, which was matched by Google, though Meta's contribution is not mentioned. This year, Google will make like Gavin Newsom, and not contribute to the program. And the company put out a pretty cheeky statement about how they don't have to pay the $10 million per year now that the st"

In 2024 Gavin Newsom secured a $250 million commitment from Google and Meta over five years to support California local newspapers whose advertising revenue had been diverted by tech platforms. The program included state contributions and an initial $10 million payment from California in 2025 matched by Google. Newsom later removed that subsidy in his proposed $400 billion 2025–27 budget and provided no public explanation. Critics described the move as short-sighted and urged prioritizing local journalism despite budget pressures. Google announced it would not contribute in the current year and issued a statement declining the $10 million payment.

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