Editor’s Note: Local journalism is struggling to survive, but some states are stepping up to help. This article looks at how California, New York, and Illinois are taking action to support local news. California is proposing a ‘data extraction’ tax on big tech companies, New York is offering tax credits to news outlets, and Illinois has a variety of support measures in place. Understanding these efforts is important because they reveal how regulatory changes can impact the media landscape, which in turn affects how information is disseminated and protected. For professionals in cybersecurity, information governance, and eDiscovery, staying informed about these changes helps them anticipate shifts in data management, privacy concerns, and the overall integrity of news sources. Knowing the dynamics between state initiatives and Big Tech also aids in navigating legal and ethical challenges in the digital age.


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State-Led Initiatives to Save Local Journalism Amidst Big Tech Pushback

ComplexDiscovery Staff

In a rapidly changing media landscape, the battle to sustain local journalism is intensifying, notably in California. State Senator Steve Glazer’s proposed ‘data extraction’ tax, designed to charge platforms like Google, Facebook, and Amazon for utilizing news content, seeks to generate $500 million annually to support local news outlets. The bill already passed the Senate Appropriations Committee on May 16 and now awaits a full Senate vote.

Glazer’s approach, however, has attracted pushback from tech giants. “Until there’s clarity on California’s regulatory environment, we’re also pausing further investments in the California news ecosystem, including new partnerships through Google News Showcase,” stated Google in April. According to Axios, Google warned nonprofit news organizations that it might pull journalism grants nationwide if the bill is enacted. The implications of such threats could significantly impact smaller newsrooms that rely heavily on these grants.

Skeptics argue that the bill could destabilize smaller newsrooms that depend on Google’s grants. “Google’s moves, and Facebook’s earlier abandonment of its journalism grants, are the latest reminders that such support is transient,” said Steve Waldman, president of the Rebuild Local News advocacy group. Waldman also observed that Facebook’s move to block news in Canada last year fueled the momentum for California’s journalism usage bill, which passed the state Assembly last June.

In contrast, New York adopted a groundbreaking policy last month, providing tax credits worth $90 million over three years to local news outlets. The policy aims to assist ailing local news ecosystems by giving credits of up to $25,000 per employee, capped at $320,000 per outlet. This initiative is particularly timely, given that New York has 16 nonprofit digital news sites among its 375 local outlets, according to Northwestern University’s Medill School.

However, even New York’s inclusive measures have raised concerns. Some nonprofit news outlets and broadcasters worry they won’t benefit due to ambiguous language in the state budget. Zachary Richner, part of a Long Island newspaper publishing family, expressed optimism, “We’re certainly hopeful digital outlets and nonprofits will be included and we’ll continue to advocate on their behalf.”

Illinois is also making strides. It recently passed measures awarding tax credits, scholarships, and imposing notification periods for selling news outlets. The state aims to revive its local journalism scene, crippled over the years, especially when four counties have now officially become news deserts, according to the Local Initiative at Northwestern University’s Medill School. Illinois will provide $25 million to newsrooms that retain or hire local reporters over the next five years, with limits on how much individual newsrooms can receive.

Besides, the Illinois proposal includes a provision to notify the public and employees 120 days before any out-of-state sale of local newspapers, providing in-state entities a chance to bid, thus preserving local ownership. “This bill ensures that local news organizations remain transparent during critical transitions and supports the next generation of journalists,” stated Senator Steve Stadelman, who spearheaded the bill.

As states like California, New York, and Illinois mobilize to sustain local journalism, questions remain about the effectiveness and integrity of such interventions. One notable concern is that intertwining state support with journalistic endeavors may compromise the independence of the press. This tension was highlighted by National Public Radio’s controversy over alleged political biases.

Jeffrey M. McCall, a media critic and professor of communication at DePauw University, cautioned against government funding of journalism. “Once government gets its nose in the proverbial tent of the news process, journalism as it has been practiced for decades will cease to exist,” he argued. McCall emphasized the need for journalism to maintain financial and editorial independence to fulfill its watchdog role effectively.

Despite these challenges, the consensus is clear: local journalism is teetering and needs immediate attention to avoid dwindling into obscurity. Efforts across various states indicate an acknowledgment of the crisis but also reveal the complexities involved in crafting sustainable solutions. The stakes are high, and the outcomes of these legislative ventures will undoubtedly shape the future of local news in the United States.

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