In what’s being described as a “monumental” and “historic” achievement for local journalism, New York legislators have sanctioned $90 million in payroll tax credits to employ local journalists within the state’s fiscal year 2025 budget.
Why it matters
It represents the largest allocation any state has made toward local journalism.
“This type of legislation is unprecedented in U.S. history,” remarked Jon Schleuss, president of the NewsGuild-CWA, which represents numerous local newsrooms. He characterized it as “historic” and “monumental.” “This is a pioneering step,” declared the Rebuild Local News Coalition, which concentrates on local tax credit initiatives for journalism reform. Be smart: This novel provision could serve as a model for financing local journalism positions nationwide.
Tax credits, as opposed to government-funded grants, are perceived by some as less likely to result in a situation where a local news organization feels influenced by government support.
Zoom in:
The measure, which was adopted over the weekend by the New York State Senate and Assembly, is part of a broader state budget legislation that is anticipated to be signed into law by New York Governor Kathy Hochul soon.
It establishes $30 million per year in tax credits for three years, aimed at safeguarding existing journalism roles and generating new ones. Qualified outlets may obtain a refundable tax credit covering 50% of the first $50,000 of a journalist’s salary. No newsroom can receive more than $300,000. Between the lines: Both broadcast and print newsrooms will be subsidized according to their size. Publicly traded companies are not eligible.
Outlets with fewer than 100 employees can access up to $13 million of the designated tax credits each year, and those with over 100 employees are also entitled to up to $13 million annually. The remaining $4 million is designated for encouraging all outlets to add new journalism roles. “We value that the lawmakers particularly ensured that small and medium-sized outlets received equitable treatment in the scheme,” stated the Rebuild Local News Coalition.
The big picture:
This new legislation is part of a wider trend of state governments funding journalism through various initiatives, as noted by Axios.
D.C. council members last year proposed a unique bill to provide government-funded vouchers to city residents to support local journalism outlets of their choice.
New Mexico legislators last spring approved a bill that allocates $125,000 to broaden a local news fellowship and internship program managed by the University of New Mexico.
Last year, California legislators passed a bill that grants $25 million to a state-funded fellowship program at the UC Berkeley Graduate School of Journalism to bolster local reporting in underserved regions.
In 2018, New Jersey politicians approved a bill that allocates $5 million to an independent “civic information consortium” to aid local news. What to watch: More local governments are adopting measures to back local news outlets, amidst a standstill at the national level.
The Journalism Competition and Preservation Act (JCPA), which obliges tech companies to negotiate compensation terms “in good faith” with news publishers for using their content, has been introduced repeatedly by bipartisan members of Congress but has not yet been brought to a vote. California has launched its own initiative, the California Journalism Preservation Act, which mandates tech companies to pay a tax to the state based on their advertising revenue from news content. This fund is then distributed to newsrooms in California.
