SACRAMENTO, Calif. — California has reached a historic agreement with Google to provide millions of dollars aimed at supporting local journalism jobs, marking a first-of-its-kind initiative in the nation. However, industry experts express skepticism, viewing the deal as favoring the tech giant more than the journalism sector it intends to assist.
This newly announced agreement will funnel tens of millions in public and private funds to reinforce local news organizations already in precarious positions. Critics argue that this arrangement is a strategic ploy by tech companies like Google to evade more rigorous financial obligations that could emerge from previous legislative efforts aimed at requiring them to compensate news outlets from which they profit.
By withdrawing proposed legislation that would have obligated tech giants to contribute directly to the financially struggling news sector, state lawmakers may have forfeited a more substantial source of funding for journalism, according to media policy experts.
“This deal allows Google to sidestep deeper fiscal responsibilities,” said one expert.
Google claims this funding initiative will bolster both journalism and the burgeoning artificial intelligence (AI) sector in California. The company described the partnership as an extension of its long-standing collaboration with the local journalism community while aiming to create a national center focused on AI policy.
The U.S. newspaper industry is grappling with a prolonged decline as traditional business models collapse under the weight of digital transformation. Advertising revenues, too, have significantly declined, prompting many news organizations to depend on tech platforms for content distribution.
Reports indicate that numerous newspapers have shut down since 2005, leaving entire counties across the U.S. without local news sources. With California and New Mexico setting precedents for funding local journalism initiatives, New York has introduced a tax credit program to help news organizations hire and retain journalists.
The deal with Google is valued at $250 million, earmarked for journalism support and an AI research program, with funding secured for five years. Approximately $110 million will come from Google, while an additional $70 million will be allocated from the state budget for journalism positions managed by a prominent journalism school. Google will also contribute to the AI initiative aimed at developing innovative solutions for real-world challenges.
Notably, this agreement marks a departure from proposed legislation that sought to implement a “link tax” requiring tech companies to pay news publishers for linking their content, a concept inspired by similar policies implemented in Canada.
The tech industry’s vigorous opposition to legislative efforts continued until the recent deal was facilitated, with critics cautioning that the final agreement does not encompass the comprehensive funding or structure that could adequately support local news organizations.
While some journalism entities support the deal, concerns remain over the inclusion of AI funding, leading to further debate about its implications for job security within the journalism field.
The agreement is set to be implemented next year, with an initial $100 million allocated to kickstart the funded initiatives, although legislative hurdles may still pose challenges to finalizing the details.
Industry observers and journalism advocates continue to question the adequacy of the deal and its impact on the future health of local news outlets in California and beyond.
