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The San Francisco Frontier | Est. 2025
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Tech Giant Google Slashes Local News Funding Amid California Budget Crunch

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Photo by Carlos Muza on Unsplash

In a surprising move that reflects the ongoing challenges facing local journalism, Google has reduced its financial commitment to California’s local news support initiative by $5 million.

The tech giant originally pledged $15 million to help struggling news outlets, but will now contribute $10 million to the California Civic Media Fund. This decision follows Governor Gavin Newsom’s recent proposal to cut state funding from $30 million to $10 million, driven by the state’s current $12 billion budget deficit.

Assemblymember Buffy Wicks, who has been instrumental in establishing the program, emphasized the collaborative nature of supporting local journalism. “Sustaining local journalism will take all of us , government, philanthropy, and the tech sector , stepping up together,” she stated.

The initiative aims to distribute funds among California news publishers through the California State Library, which will create a board to strategically allocate resources. The goal is to enhance and sustain community news coverage across the state, addressing a critical issue as California has lost one-third of its newspapers since 2005.

This funding reduction comes after a complex negotiation process where Google initially agreed to the fund to avoid potentially more stringent legislative actions. Proponents of local journalism view this as “seed funding” that might attract additional philanthropic investments.

The tech company’s vice president, Jaffer Zaidi, maintains that Google remains “committed” to the original agreement. However, the current funding represents less than half of the initially promised $125 million over five years.

Experts argue that platforms like Google, which profit from linking and using news content, have significantly contributed to the decline of local journalism. The reduced funding raises concerns about the future of community news coverage and its crucial role in maintaining civic engagement.

As California continues to navigate its budget challenges, the fate of local journalism hangs in the balance, with tech companies, state government, and media organizations seeking sustainable solutions to preserve vital community information networks.

AUTHOR: kg

SOURCE: Local News Matters

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