Newsom Cuts Funding for California's Local News Lifeline

The governor eliminates state funding for a landmark deal with Google to support struggling local journalism.

Jan. 28, 2026 at 12:47pm

Got story updates? Submit your updates here. ›

A high-stakes funding deal between Google and the California government meant to help the struggling local news industry survive has been effectively dismantled by Gov. Gavin Newsom, who eliminated state funding for the program in his proposed 2026-27 budget. The five-year California Civic Media Program was celebrated by Newsom in 2024 as a lifeline for local journalism, but the governor has now zeroed out the state's $10 million annual contribution, jeopardizing the entire agreement.

Why it matters

Local news has suffered a long decline since the advent of the internet shifted advertising revenue to tech giants like Google and Meta, which have built lucrative business models by hosting news content without adequately compensating the publishers. The California Civic Media Program was seen as a potential model for supporting local journalism, but its collapse highlights the ongoing challenges facing the industry and the difficult budget decisions facing state leaders.

The details

The California Civic Media Program was a first-of-its-kind partnership that was meant to provide nearly $250 million in public and private funding over five years to help sustain local news outlets. However, Newsom has now eliminated the state's $10 million annual contribution, forcing Google to also scale back its commitment. This comes after Newsom previously cut the state's funding from $30 million to $10 million for the 2025-26 fiscal year, citing a $12 billion budget deficit.

  • In 2024, Newsom celebrated the creation of the California Civic Media Program.
  • In 2025, Newsom cut the state's proposed funding for the program from $30 million to $10 million.
  • In the proposed 2026-27 budget, Newsom has eliminated the state's $10 million annual contribution entirely.

The players

Gavin Newsom

The governor of California who has effectively dismantled the state's landmark deal with Google to support local news.

Google

The tech giant that had agreed to match the state's funding for the California Civic Media Program, but will now have to scale back its commitment due to the loss of state funding.

California Civic Media Program

A first-of-its-kind partnership between the state of California and Google that was meant to provide nearly $250 million in funding over five years to help sustain local news outlets.

Victor Pickard

A professor of media policy at the University of Pennsylvania who called Newsom's decision "shockingly short-sighted" when it comes to supporting local journalism.

John Laird

A California state senator who supported the California Civic Media Program deal and hopes the legislature will find a way to restore funding.

Got photos? Submit your photos here. ›

What they’re saying

“It seems shockingly short-sighted when it comes to supporting local journalism which by now we know has no commercial future.”

— Victor Pickard, Professor of media policy, University of Pennsylvania

“We have not heard an explanation yet. Admittedly, this is a difficult budget.”

— John Laird, California state senator

What’s next

The legislature will need to decide whether to try to restore funding for the California Civic Media Program in the coming months, as the state faces a difficult budget environment.

The takeaway

Newsom's decision to eliminate state funding for the landmark deal with Google to support local journalism highlights the ongoing challenges facing the industry and the difficult trade-offs facing state leaders as they grapple with budget constraints. The collapse of the program raises concerns about the future of local news in California and the ability to combat the spread of misinformation without a robust local press.