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Newsom Signs First-in-the-Nation Law to Bolster Struggling Local News Organizations
The law offers refundable credits of up to $20,000 per journalist and an added $15,000 for each new hire.
On Wednesday, California Governor Gavin Newsom signed Assembly Bill 2222, the Community NEWS Act, establishing refundable employment tax credits to help state news organizations retain and hire journalists.
This measure addresses a severe industry decline; California has lost more than 12,000 local journalists since 2002, and nearly 40% of U.S. newspapers have vanished over two decades.
Beginning in 2027, the law provides $20,000 for each of the first five full-time journalists, $15,000 for each additional journalist, and a stackable $15,000 credit for new hires.
While the California Chamber of Commerce opposed the bill, citing "unlimited fiscal liability to the state," Newsom argued the legislation ensures government accountability against attacks from President Donald Trump.
Industry groups like SAG-AFTRA, representing 160,000 media employees, view the act as a model for states facing revenue losses from search and AI technology changes threatening local news viability.