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. Google would also continue issuing its annual $10 million newsroom grants.
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